Results from the 2008 Global Venture Capital Survey June 2, 2008
Presenters Mark Jensen, Deloitte & Touche LLP Partner and National Director, Venture Capital Services Dixon Doll, DCM Co-Founder and General Partner Jean-François Formela, Atlas Venture Life Sciences Partner Emily Mendell, National Venture Capital Association Vice President, Strategic Affairs
Agenda Overview Survey results VC commentary Questions and answers
Responses and demographics 398 responses from around the globe 41% from 20% from Asia Pacific 19% from Europe (excluding UK) 10% from Americas (excluding ) from Israel from UK Responses from large, mid-sized and small firms 57% of and 5 of non- VCs are currently investing outside of their home country
Investing abroad Percentage of venture capitalists currently investing outside their home country 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 4 57% 83% 55% 29% 41% UK The Americas (excl. ) 83% 2007 2008 61% 5 4 40% 20% Europe (excl. UK) Israel APAC
Telecommunications Telecommunications - primary and secondary countries with the best technology (all respondents) 1 57% Japan 12% 15% Israel 12% Primary Secondary Finland 7% S. Korea 3% 9%
Telecommunications (continued) Telecommunications - countries with the best technology (total responses) Japan 13% 12% 1 3 35% 37% Global non- Israel 9% Finland 7% 7% S. Korea 5%
Semiconductors including electronics Semiconductors including electronics - primary and secondary countries with the best technology (all respondents) 11% 70% Taiwan 10% 21% Primary Secondary Japan 7% 19% China 3% 13% S. Korea 3% 11%
Semiconductors including electronics (continued) Semiconductors including electronics - countries with the best technology (total responses) 41% 39% 43% Taiwan Japan 15% 13% 19% 13% 12% 1 Global non- China 7% 9% S. Korea 7% 5%
Software Software - primary and secondary countries with the best technology (all respondents) 87% India 35% Primary UK 0% 13% Secondary Israel 1% 11% Germany 0% 9%
Software (continued) Software - countries with the best technology (total responses) India 20% 1 23% 47% 45% 50% Global non- UK 7% 5% Israel 5% Germany 5%
Biopharmaceuticals Biopharmaceuticals - primary and secondary countries with the best technology (all respondents) 9% 85% UK 3% 2 Primary Secondary Switzerland 2% 1 Germany 3% 12% France 1% 9%
Biopharmaceuticals (continued) Biopharmaceuticals - countries with the best technology (total responses) UK 1 15% 1 50% 4 53% Global non- Switzerland Germany France 9% 7% 5% 5%
Medical devices and equipment Medical devices and equipment - primary and secondary countries with the best technology (all respondents) 9% 85% Germany 33% Primary Secondary UK 2% 1 Israel 2% 12% Japan 1% 9%
Medical devices and equipment (continued) Medical devices and equipment - countries with the best technology (total responses) Germany 19% 21% 1 50% 47% 5 Global non- UK 10% 11% Israel 9% Japan 5%
Alternative / clean energy Alternative / clean energy - primary and secondary countries with the best technology (all respondents) 23% 5 Germany 21% 22% Primary Secondary Japan UK 1% Canada 2%
Alternative / clean energy (continued) Alternative / clean energy - countries with the best technology (total responses) 23% 35% 4 Global Germany 22% 2 17% non- Japan UK Canada 5% 5%
Venture capital commentary Dixon Doll COFOUNDER AND GENERAL PARTNER, DCM For more than 35 years, Dixon has influenced and guided entrepreneurs, investors and executives in the computer and communications industries. In recognition of his accomplishments in venture capital, Dixon was named by Forbes Magazine as one of the top 100 venture investors on its Midas List for the past four years, as well as one of the top 100 personalities involved in creating the information highway by Upside Magazine. In April, 2008, he was elected as chairman of the National Venture capital Association. Since the early 1980s, Dixon has been a telecom and Internet venture capital pioneer. In 1996 he launched DCM, an early stage technology venture capital firm which currently has more than $1.5 Billion under management, headquartered in Menlo Park, California. DCM has backed such well known entrepreneurial companies as About.com, @Motion, Clearwire, 51job, Foundry Networks, Internap, Ipivot, Neutral Tandem, PGP Corp., Recourse Technologies, Semiconductor Manufacturing International Corp, and Sling Media. DCM has become widely recognized as one of the top Silicon Valley venture firms actively investing in China and Japan. In the mid-1980 s, Dixon cofounded the venture capital industry s first fund focused exclusively on telecommunications opportunities. Those funds he organized launched such noteworthy companies as Alantec, Bridge Communication, Centillion Networks, Network Equipment Technologies, Optilink, Picturetel, Polycom, and UUNet. He received his B.S.E.E. degree (cum laude) from Kansas State University as well as M.S. and Ph.D. degrees in Electrical Engineering from the University of Michigan, where he was a National Science Foundation scholar.
Venture capital commentary Jean-Francois Formela PARTNER, ATLAS VENTURE Jean-François Formela is a Partner in the life sciences group, and joined Atlas Venture in 1993 to help build the US life sciences franchise. Previously, he was Senior Director, Medical Marketing and Scientific Affairs at Schering-Plough in the US. During his tenure there, he was responsible for the marketing of Intron A, Schering-Plough's alphainterferon. In his last position at Schering-Plough, he directed the US Phase IV studies in all therapeutic areas, as well as the health economics, medical information, and biotechnology pre-marketing groups. As a medical doctor, Jean-François practiced emergency medicine at Necker University Hospital in Paris. Since joining Atlas Venture, Jean-François has been involved in the formation of companies such as Archemix, ArQule (NASDAQ: ARQL), Aureon Laboratories, Cellzome, decode (NASDAQ: DCGN), Exelixis (NASDAQ: EXEL), MorphoSys (Xetra: MOR.DE), NxStage (NASDAQ: NXTM), Resolvyx Pharmaceuticals and SGX Pharmaceuticals (NASDAQ: SGXP). He was also an investor in Ciphergen Biosystems (NASDAQ: CIPH) and Nuvelo (NASDAQ: NUVO). Jean-François currently serves on the boards of Atlas portfolio companies Achillion Pharmaceuticals (NASDAQ: ACHN), ARCA biopharma, Proprius Pharmaceuticals, Resolvyx Pharmaceuticals and SGX Pharmaceuticals (NASDAQ: SGXP). Jean-François received his MD from Paris University School of Medicine, and his MBA from Columbia University.
Questions & Answers
Methodology The Deloitte and NVCA 2008 Global Venture Capital Survey was conducted jointly by Deloitte & Touche LLP and the National Venture Capital Association. It was administered to venture capitalists in the Americas, Asia Pacific (APAC), Europe, the Middle East. Deloitte received 398 responses from general partners with assets under management ranging from less than $100 million to greater than $1 billion. The survey was conducted during March 2008. Of the total number of respondents, 398, 41% were based in the, 10% in The Americas (excluding ), 19% in Europe (excluding UK), in Israel, in the UK and 20% in APAC.
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