Venture Capital Industry Overview Powered By:
U.S.
U.S. Fundraising
Fundraising Slows in 1Q 05 Commitments to Venture Capital Funds $80 $83.5 Funds Raised ($B) $60 $40 $20 $0 $58.8 $50.5 $26.9 $17.1 $17.7 $12.7 $13.1 $7.0 $9.4 $5.4 $3.0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1Q05
Median Fund Size Increases Median VC Fund Size (for funds greater than $20M) $200 $185 $160 Median Fund Size ($M) $150 $100 $50 $53 $67 $83 $76 $97 $110 $100 $105 $75 $100 $0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1Q05
Half of Funds Closed > $100M in Size Allocation of Fund Size by Number of Funds Raised per Vintage Year 100% 80% 50% Under $100M 60% 75% 70% $100M-$249M 40% 20% 0% 25% 25% 21% 16% 25% 10% 2% 1995 1997 1999 2001 2003 1Q05 $250M-$499M $500M-$999M $1B+
$6 Fundraising Drops in 1Q 05 Commitments to Venture Capital Funds $5.4 $5.6 Funds Raised ($B) $4 $2 $3.1 $4.8 $1.8 $3.3 $1.5 $2.3 $1.4 $4.2 $2.3 $4.5 $3.0 $0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05
U.S. Investment: Overall
$100 Deal Flow and Investment Dips in 1Q 05 Deal Flow and Equity into Venture-Backed Companies 6295 $94.7 6,000 Amount Invested ($B) $75 $50 $25 $0 4595 5,000 4,000 $49.6 3248 2547 3,000 $36.2 2153 1912 2211 2356 2114 1315 2,000 $21.9 $17.9 $19.0 $20.9 $13.1 $6.4 $9.2 474 1,000 $4.6 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1Q05 Amount Invested ($B) Number of Deals Number of Deals
Activity Slows in 1Q 05 Deal Flow and Equity into Venture-Backed Companies Amount Invested ($B) $8 $6 $4 $2 650 598 570 591 585 538 543 $6.4 521 502 521 500 504 $5.9 $5.7 474 $5.3 $5.5 $5.0 $4.8 $5.0 $4.8 $4.5 $4.8 $4.6 $4.4 600 450 300 150 Number of Deals $0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 0 Amount Invested ($B) Number of Deals
Healthcare s Portion of Deals Falls in 1Q 05 Deal Flow Allocation by Industry Sector 100% 2% 15% 18% 4% 5% 14% % of Total VC Rounds 80% 60% 40% 20% 61% 22% 27% 63% 61% 20% Other Products & Services IT Healthcare 0% 1Q02 3Q02 1Q03 3Q03 1Q04 3Q04 1Q05
100% IT Draws Larger Share of Dollars in 1Q 05 16% 1% 10% Investment Allocation 16% by Industry Sector 3% 13% 12% 5% 12% % of Dollars Invested 80% 60% 40% 20% 66% 23% 65% 36% 58% 26% Other Products & Services IT Healthcare 0% 1Q02 3Q02 1Q03 3Q03 1Q04 3Q04 1Q05
Investment in IT Steady in 1Q 05 Equity Investment in Information Technology Companies Amount Invested ($B) $5 $4 $3 $2 327 289 363 343 349 $3.9 315 314 $3.4 $3.1 $2.9 $2.8 $2.7 $2.4 329 328 $2.8 $2.9 351 $3.4 303 321 290 $2.7 $2.8 $2.7 375 300 225 150 Number of Deals $1 75 $0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 Amount Invested ($B) Number of Deals 0
Communications Share of Pie Rises in 1Q 05 IT Investment Allocation by Sector t9% 100% 80% 8% 4% 6% 18% 8% 13% 11% Semiconductors % of Dollars Invested 60% 40% 20% 44% 39% 34% 48% 14% 8% 23% 46% Information Services Electronics Communications Software 0% 1Q02 3Q02 1Q03 3Q03 1Q04 3Q04 1Q05
Amount Invested ($B) $3 $2 $1 Healthcare Investment Slows in 1Q 05 Equity into Venture-Backed Healthcare Companies 174 131 131 118 $2.0 110 105 $1.3 $1.4 $1.1 $1.1 $1.1 152 138 122 120 124 132 $1.7 $1.8 $1.9 $1.7 $1.6 $1.6 96 $1.2 175 150 125 100 75 50 Number of Deals 25 $0 0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 Amount Invested ($B) Number of Deals
Biopharm & Devices Dominate HC Investment Healthcare Investment Allocation by Sector 100% 8% 11% 8% 80% 30% 35% 31% Medical IS % of Dollars Invested 60% 40% 20% 5% 58% 10% 78% 5% 56% Medical Devices Healthcare Services Biopharm 0% 1Q02 3Q02 1Q03 3Q03 1Q04 3Q04 1Q05
Early and Later Stage Rounds Prevail in 1Q 05 Deal Flow Allocation by Round Class 100% 4% 10% 8% % of Total VC Rounds 80% 60% 40% 20% 34% 32% *30% 29% 39% *36% 40% 19% *33% Restart Later Second First Seed 0% 1Q02 3Q02 1Q03 3Q03 1Q04 3Q04 1Q05 *Seed and First Rounds Combined
100% Round Allocation Mirrors Mid- 90s Levels Deal Flow Allocation by Round Class (Annual) 9% 11% 8% 80% Restart % of Total VC Rounds 60% 40% 39% 39% 40% 33% 20% 19% *54% Later Second First 20% *32% *33% Seed 0% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1Q05 *Seed and First Rounds Combined
Most Dollars Directed at Later Rounds Investment Allocation by Round Class (Annual) 100% 9% 7% 80% 33% Restart % of Dollars Invested 60% 40% 20% 25% *43% *42% 36% 46% 56% 17% Later Second First Seed *20% 0% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1Q05 *Seed and First Rounds Combined
Capital Allocation to Later Rounds Continues Investment Allocation by Round Class 100% 4% 10% 7% 80% 47% Restart % of Dollars Invested 60% 40% 20% 31% *18% 31% 47% *25% 56% 17% *20% Later Second First Seed 0% 1Q02 3Q02 1Q03 3Q03 1Q04 3Q04 1Q05 *Seed and First Rounds Combined
Median Deal Sizes Relatively Consistent Median Amount Invested Per Financing Round $8 Median Amount Invested ($M) $6 $4 $2 $6.0 $6.0 $6.0 $6.3 $5.6 $6.0 $6.7 $6.0 $7.0 $7.0 $7.0 $6.2 $7.0 $0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05
Median Round Size Up Slightly in 1Q 05 Median Amount Invested Per Financing Round, VC Only Median Amount Invested ($M) $8 $6 $4 $2 $6.5 $6.3 $6.4 $6.6 $6.0 $6.0 $7.0 $6.3 $7.2 $7.3 $7.0 $6.5 $7.2 $0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05
$14 Financing Sizes Pick Up in 1Q 05 Median Amount Invested by Round Class, VC Only Median Amount Invested ($M) $12 $10 $8 $6 $4 $2 $0 $10.0 $10.0 $8.2 $7.1 $6.0 $4.5 $1.5 $0.7 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 Later Round Second Round First Round Seed Round
Amount Invested in Rounds at Late 90 s Levels Median Amount Invested by Round Class (Annual), VC Only $20 Median Amount Invested ($M) $15 $10 $5 $0 $10.0 $8.2 $5.0 $6.0 $4.0 $2.9 $1.0 $0.7 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1Q05 Later Round Second Round First Round Seed Round
U.S. Investment: Regions
Bay Area Dominates Venture Investment Regional Investment in the United States 1Q 05 Research Triangle 2% All Other US 23% Bay Area 35% Potomac 2% Washington State 2% Texas 6% New York Metro 8% Southern California 8% New England 14%
Bay Area Also Drives Deal Flow Regional Deal Flow in the United States 1Q 05 All Other US 28% Bay Area 30% Research Triangle 2% Potomac 2% Washington State 3% Texas 6% Southern California 7% New York Metro 8% New England 14%
100% 80% 60% 40% More Investors Go It Alone in 1Q 05 Number of Investors Per Round 23% 9% 16% 30% 19% 15% 18% 16% 16% 22% 23% 20% 5+ Investors 4 Investors 3 Investors 2 Investors 20% 30% 34% 31% 1 Investor 0% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1Q05
U.S. Investment: Valuations
Valuations Continue Upward Trend Median Premoney Valuation by Year Median Premoney Valuation ($M) $25 $20 $15 $10 $5 $10.0 $9.3 $11.1 $12.9 $15.5 $21.1 $25.5 $16.0 $10.7 $10.0 $13.0 $15.0 $0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1Q05
1Q 05 Valuations Highest Since 2001 Median Premoney Valuation Median Premoney Valuation ($M) $15 $10 $5 $10.9 $12.3 $10.0 $10.3 $10.0 $9.1 $10.1 $12.0 $12.2 $13.8 $13.3 $12.0 $15.0 $0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05
2 nd and Later Stage Valuations Dip in 1Q 05 Median Premoney Valuations by Round Class (All Industries) $40 Median Premoney Valuation ($M) $30 $20 $10 $0 $31 $24 $12 $12 $5 $7 $3 $3 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 Later Stage Second Round First Round Seed Round
HC Valuations Continue to Outpace IT in 1Q 05 Median Premoney Valuations by Industry $25 Median Premoney Valuation ($M) $20 $15 $10 $5 $0 $19 $14 $16 $10 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 Healthcare Information Technology
U.S. Liquidity
M&As Remain Primary Exit Option Percentage Breakdown of Venture Backed Liquidity Events: IPO vs. M&A 1Q05 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 0% 20% 40% 60% 80% 100% IPOs M&As
M&A Activity Steady in 1Q 05 Transactions and Amount Paid in M&As Amount Paid ($B) $100 $80 $60 $40 $20 162 $10.1 197 $26.0 232 $12.7 253 $14.8 304 $43.1 458 $98.1 402 $21.8 380 $10.8 335 $13.0 393 $22.7 79 $7.1 450 300 150 Number of Transactions $0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1Q05 Amount Paid ($B) Number of Transactions 0
But M&A Prices Highest Since 2000 Transactions and Amount Paid in M&As Amount Paid ($B) $8 $6 $4 $2 88 $1.9 114 $2.8 89 $3.2 89 $2.9 75 $2.5 82 $3.4 96 $3.3 82 $3.8 102 $6.3 97 $5.9 102 $6.2 92 $4.3 $7.1 79 100 75 50 25 Number of Transactions $0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 0 Amount Paid ($B) Number of Transactions
Gains from M&A Exits Pick Up in 05 Median Amount Paid in M&As vs. Median Amount Raised Prior to M&A Median Amount Raised Prior to M&A ($M) $100 $75 $50 $25 $0 $25 $5 $40 $6 $33 $6 $31 $7 $55 $11 $100 $10 $26 $15 $18 $17 $23 $19 $40 $21 $60 $24 $100 $75 $50 $25 $0 Median Amount Paid ($M) 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1Q05 Median Equity Raised Prior to M&A Median Amount Paid ($M)
60% of 1Q 05 M&As Initially Financed in 99-01 Median Time From Initial Equity Funding to M&A 6 5.2 4.7 4.6 Number of Years 4 2 4.0 3.5 3.0 2.8 2.4 2.0 2.7 3.6 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1Q05
IPO Activity Slows in 1Q 05 Deals and Amount Raised Through IPOs $30 250 250 Amount Raised ($B) $25 $20 $15 $10 144 216 $8.7 120 68 $19.5 202 $19.2 67 200 150 100 Venture-Backed IPOs $5 $0 $5.0 $4.6 $5.0 $3.7 22 20 22 8 $1.8 $1.6 $1.4 $0.4 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1Q05 Amount Raised ($B) Venture-Backed IPOs 50 0
Fewest Venture-Backed IPOs in Six Quarters Deals and Total Amount Raised Through IPOs $1.8 24 $1.7 25 Amount Raised ($B) $1.5 $1.2 $0.9 $0.6 $0.3 $0.0 4 $0.4 $0.9 9 1 $0.03 6 $0.4 2 $0.2 6 $0.4 14 $0.8 10 $0.7 $1.4 14 19 $1.2 8 $0.4 20 15 10 5 0 Venture-Backed IPOs 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 Amount Raised ($B) Venture-Backed IPOs
Half of 1Q 05 IPOs from Vintage Years 99-00 Median Time From Initial Equity Funding to IPO 6 5.7 5.7 Number of Years 5 4 3 2 4.1 3.5 3.1 2.8 2.9 3.1 4.5 3.6 4.9 1 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1Q05
1Q 05 IPOs Raised Less Prior to Going Public Median Amount Raised Prior to IPO Median Amount Raised Prior to IPO ($M) $75 $50 $25 $0 $73.2 $60.2 $56.0 $46.9 $47.8 $49.0 $31.3 $22.4 $15.0 $13.0 $10.3 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1Q05
And Went Out at Lower Valuations Median Pre-Valuation at IPO $375 $363 Median Pre-Valuation at IPO ($M) $300 $225 $150 $75 $67 $79 $105 $172 $314 $281 $229 $233 $224 $151 $0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1Q05
Smaller Offering Sizes Seen in 1Q 05 Median Amount Raised at IPO vs. Median Pre-Valuation at IPO $350 $314 $363 $350 Median Pre-Valuation at IPO ($M) $300 $250 $200 $150 $100 $50 $79 $32 $105 $32 $172 $42 $62 $76 $281 $60 $229 $80 $233 $66 $224 $50 $150 $41 $300 $250 $200 $150 $100 $50 Median Amount Raised ($M) $0 $0 1996 1997 1998 1999 2000 2001 2002 2003 2004 1Q05 Median Pre-Valuation at IPO ($M) Median Amount Raised at IPO ($M)
Israel
Israeli Investment on Pace to Match 04 Levels Deals and Amount Invested in Venture-Backed Companies with Offices in Israel $5 584 Amount Invested ($B) $4 $3 $2 $1 348 $4.0 335 $2.2 210 187 169 180 $1.4 135 $1.2 $1.2 $1.0 $0.6 $0.4 48 525 350 175 Number of Transactions $0 $0.3 0 1997 1998 1999 2000 2001 2002 2003 2004 1Q05 Amount Invested ($B) Number of Deals
Israeli Activity Holds Steady in 1Q 05 Equity into Venture-Backed Companies with Offices in Israel Amount Invested ($M) $450 $300 $150 62 56 51 48 49 47 48 48 44 45 45 $370 $337 41 41 $328 $338 $292 $303 $305 $290 $268 $251 $222 $204 $209 60 40 20 Number of Deals $0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 Amount Invested ($M) Number of Deals 0
IT Still Driving Force Despite Jump in HC Equity Investment by Industry Sector in Venture-Backed Companies with Offices in Israel 100% 3% 12% 9% % of Dollars Invested 80% 60% 40% 20% 90% 26% 90% 55% 35% Products & Services IT Healthcare 0% 7% 1Q02 3Q02 1Q03 3Q03 1Q04 3Q04 1Q05
Investors Continue to Favor Later Stage Deals Equity Investment by Round Class in Venture-Backed Companies with Israeli Offices 100% 80% Later % of Dollars Invested 60% 40% 20% 56% 29% 49% *37% 62% 76% 7% Second First Seed 0% *15% *18% 1Q02 3Q02 1Q03 3Q03 1Q04 3Q04 1Q05 *Seed and First Rounds Combined
Israeli Round Sizes at Historical Highs Median Amount Invested in Venture-Backed Companies with Offices in Israel Median Amount Invested ($M) $5 $4 $3 $2 $1 $2.2 $2.4 $2.5 $3.5 $3.0 $3.0 $3.5 $5.0 $4.5 $0 1997 1998 1999 2000 2001 2002 2003 2004 1Q05
European Fundraising
European Fundraising on Pace to Surpass 2004 Commitments to European Funds ( B)* 40 35.8 38.1 30 Funds Raised ( B) 20 10 23.0 17.0 17.0 5.3 0 2000 2001 2002 2003 2004 1Q05 * includes venture capital, other private equity, and buyout firms
Fundraising Jumps in 1Q 05 Commitments to European Funds ( )* 10 9.6 8 8.5 8.6 Funds Raised ( B) 6 4 4.5 4.6 4.3 2.6 4.7 5.0 2.4 5.3 2 1.3 1.0 0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 * includes venture capital, other private equity, and buyout firms
European Investment: Overview
Perspective on European Market Equity Investment in Venture-Backed Companies, US vs. Europe ( ) 6 Amount Invested ( B) 4 2 U.S. Equity Investment Overall Investment European Equity Investment 0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05
Perspective on European Market Equity Investment in Venture-Backed Companies, US vs. Europe ($) $7 $6 Amount Invested ($B) $5 $4 $3 $2 U.S. Equity Investment Overall Investment $1 European Equity Investment $0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05
2.0 Activity Slows, Investment Holds in 1Q 05 Equity Investment in European Venture-Backed Companies 486 500 Amount Invested ( B) 1.5 1.0 0.5 1.5 395 1.3 360 1.1 400 1.2 317 0.8 355 0.9 273 0.8 382 1.0 272 0.7 313 1.1 268 0.8 266 0.9 0.9 199 400 300 200 100 Number of Deals 0.0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 0 Amount Invested ( B) Number of Deals
Biopharm & Software Lead 1Q 05 Investing Equity Investment in European Venture-Backed Companies by Industry, 1Q 05 Retail 0.5% Services Products 3% 1% Software 18% Semiconductors 14% Prod. & Serv. 6% Info. Tech. 49% Healthcare 45% Biopharmaceuticals 44% Information Services 5% Electronics 3% Communications 7% Medical IS 0.4% Medical Devices 5%
IT Investment Up in 1Q, Deal Flow Drops Equity Investment in European Venture-Backed Information Technology Companies 1,200 288 300 Amount Invested ( M) 800 400 232 782 702 200 553 218 167 469 369 190 192 156 135 463 476 470 351 169 475 147 432 147 106 357 407 200 100 Number of Deals 0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 0 Amount Invested ( M) Number of Deals
100% Semiconductors Take Larger Share IT Investment Allocation by Sector % of Euros Invested 80% 60% 40% 20% 0% 39% 55% 57% 16% 4% 30% 10% 16% 19% 6% 10% 34% 7% 22% 14% 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 Communications Electronics Information Services Semiconductors Software
Amount Invested ( M) 500 400 300 200 100 1Q 05 HC Deal Flow Lowest Since 99 Equity into European Healthcare Companies 439 91 419 80 74 328 98 456 244 91 74 302 60 282 105 374 72 265 509 93 66 297 460 70 377 59 100 75 50 25 Number of Deals 0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 Amount Invested ( M) Number of Deals 0
Biopharm Attracts Majority of HC Investment European Healthcare Investment Allocation by Sector 100% 2% 19% 8% 23% 1% 11% 75% 1% 7% %of Euros Invested 50% 25% 77% 87% 88% 0% 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 Biopharmaceuticals Healthcare Services Medical Devices Medical IS
3 Median Round Sizes Double in 1Q 05 Median Amount Invested in European Venture-Backed Companies 3.0 Median Amount Invested ( M) 2 1 1.3 1.5 1.6 1.2 1.1 1.4 1.7 1.1 1.5 1.8 1.6 1.4 0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05
100% Share of Later Rounds Picks Up in 1Q 05 European Deal Flow Allocation by Round Class 80% 28% 45% 41% Later % of Total VC Rounds 60% 40% 33% 36% 28% Second First 20% *40% *40% *31% Seed 0% 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 *Seed and First Rounds Combined
Top European Investors, 1Q 05 Number of Equity Investments in European Venture-Backed Companies 3i Group 22 SPEF Venture 6 CDC Entreprises Innovation 6 Atlas Venture 6 Societe Generale Asset Management 5 Siparex Group 5 MTI Partners 5 ACE Management 5 Life Sciences Partners BV 5 I-Source Gestion 5
European Investment: Geographic Perspective
UK & France Represent Half of Deal Flow Total Deals in Europe by Country, 1Q 05 Switzerland 3% Ireland 4% Other 16% United Kingdom 30% Denmark 6% Sweden 9% Germany 13% France 19%
UK Leads 1Q 05 European Investment Investment in Europe by Country, 1Q 05 Ireland 5% Sweden 7% Other 13% United Kingdom 30% Switzerland 8% Denmark 9% France 12% Germany 16%
Investment in Germany & Ireland Picks Up in 1Q Equity Investment by Country 600 497 Amount Invested ( M) 400 200 0 270 198 134 142 132 106 61 12 42 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 U.K. France Germany Sweden Ireland
Amount Invested ( M) 600 400 200 UK Deal Flow Continues Slide in 1Q 05 Equity into Venture-Backed Companies in the United Kingdom 132 497 75 337 89 371 104 403 89 255 83 190 85 351 103 304 93 257 86 342 68 227 77 317 62 270 125 100 75 50 25 Number of Deals 0 0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 Amount Invested ( M) Number of Deals
Amount Invested ( M) Deal Flow and Investment Pick Up in Germany Equity into German Venture-Backed Companies 240 180 120 60 73 134 59 129 65 179 237 63 47 121 139 40 120 35 51 128 145 36 143 34 155 40 80 21 142 26 75 50 25 Number of Deals 0 0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 Amount Invested ( M) Number of Deals
Deal Flow in Sweden Contracts Sharply in 1Q 05 Equity into Swedish Venture-Backed Companies 200 61 207 59 59 60 Amount Invested ( M) 150 100 50 132 29 69 42 90 31 41 133 30 68 45 90 30 51 43 108 40 68 98 25 61 17 40 20 Number of Deals 0 0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 Amount Invested ( M) Number of Deals
French Deal Flow & Investment Flat with 1Q 04 Equity into French Venture-Backed Companies Amount Invested ( M) 200 150 100 50 198 61 66 175 70 66 177 168 47 134 51 119 44 84 67 182 38 112 212 59 172 59 154 53 38 106 75 50 25 Number of Deals 0 0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 Amount Invested ( M) Number of Deals
Irish Investment Climbs in 1Q 05 Equity into Irish Venture-Backed Companies Amount Invested ( M) 100 75 50 25 11 12 16 106 15 57 13 40 13 37 12 42 12 22 9 20 10 31 8 25 14 34 10 21 8 42 16 12 8 4 Number of Deals 0 0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 Amount Invested ( M) Number of Deals
European Liquidity
1Q 05 IPO Offering Sizes Increase Amount Raised through IPOs by European Venture-Backed Companies 250 264 13 254 12 Amount Raised ( M) 200 150 100 5 4 6 77 190 7 7 7 7 131 126 8 4 Number of IPOs 50 43 37 2 2 1 1 1 0 2 7 23 21 8 0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 Euros (M) # of IPOs
Slow Start to IPOs in 2005 IPOs Per Quarter, US vs. Europe 25 24 Number of IPOs 20 15 10 5 0 19 14 14 13 10 9 7 7 7 8 6 6 6 5 7 4 4 2 2 2 1 1 1 1 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 European IPOs US IPOs
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