The Venture Numbers and Trends Recession or RecoveryWhat Is It October 29, 2003

1
The Venture Numbers and Trends Recession or
RecoveryWhat Is It? October 29, 2003
Amity WallManager of Research
OperationsVentureOne
2
Fundraising Barely Noticeable in 2003Commitments
to Venture Capital Funds
Funds Raised (B)
Source VentureOne
Underlying data available in VentureSource
3
YTD2003 Investment Continues to LagDeal Flow and
Equity into Venture-Backed Companies (annual)
Amount Invested (B)
Number of Deals
Source VentureOne/Ernst Young
Underlying data available in VentureSource
4
Investment Holds Steady in 3Q03 Equity into
Venture-Backed Companies (quarterly)
Amount Invested (B)
Number of Deals
Source VentureOne/Ernst Young
Underlying data available in VentureSource
5
Healthcare Gains Larger Industry
AllocationEquity Investment by Industry Sector
of Amount Invested ()
Source VentureOne/Ernst Young
Underlying data available in VentureSource
6
IT Investment Falling in Recent QuartersEquity
Investment in Information Technology Companies
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Healthcare Investment Consistent in 3Q03Deal
Flow and Equity into Venture-Backed Healthcare
Companies
Amount Invested (B)
Number of Deals
Source VentureOne/Ernst Young
Underlying data available in VentureSource
8
Investment Favors Follow-Ons Over Initial
FinancingsDeal Flow Mix by Round Class
of Completed Financings
Source VentureOne/Ernst Young
Underlying data available in VentureSource
9
Where Are the New Deals?Initial Rounds Completed
in US, YTD2003 by Industry Segment
10
Deal Sizes Regress to Overall Median Median
Amount Invested by Round Class
Median Amount Invested (M)
Source VentureOne/Ernst Young
Underlying data available in VentureSource
11
West Coast Leads Venture Investment Regional
Investment in the US, Total Amount Invested YTD
2003
Source VentureOne/Ernst Young
Underlying data available in VentureSource
12
N.W. Investment Pace Slows in 2003 Deal Flow
and Equity into N.W. Venture-Backed Companies
Amount Invested (M)
Number of Deals
Source VentureOne
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N.W. Software Companies Dominate Deal FlowYTD03
of Completed Financings by Segment in WA OR
Source VentureSource Analytics
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Valuations Regress Toward the Median Median
Premoney Valuations by Round Class through 2q2003
Median Premoney Valuation (M)
Source VentureOne
Underlying data available in VentureSource
15
IT Valuations Continue to SlideMedian Premoney
Valuations by Industry through 2q2003
Median Premoney Valuation (M)
Source VentureOne
Underlying data available in VentureSource

16
MA Opportunities Stable in 3Q03Transactions
and Amount Paid in MAs
Amount Paid (M)
Number of Transactions
Source VentureOne/Ernst Young
Underlying data available in VentureSource
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Not Much Profit in Current MAsMedian Amount
Paid in MAs vs. Median Invested in Private
Rounds Prior to MA
Median Amount Paid (M)
Median Invested in Private Rounds (M)
Source VentureOne
Underlying data available in VentureSource
18
IPO Registrations Rise in 3Q03Count of
venture-backed companies entering each
liquidity-related event
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IPO Liquidity Remains Rare Deals and Amount
Raised Through IPOs
Amount Raised (B)
Venture-Backed IPOs
Source VentureOne
Underlying data available in VentureSource
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More Information
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