Liquidity & Returning Capital

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21,860LPs

94,438Commitmen

ts

150,137GPs/

Investors

33,460Funds

514,170

Performance Data

Lines696,194Portfolio

Companies

491,333Transaction

s

124,748Valuations

25,463Advisory

Firms

1,097,011

People

VC fundraising & deal trends

LPs have been optimistic on the VC asset class, therefore fundraising

benefitsGloba l VC fundra i s ing

*Through 12/31/2015

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015$0

$10

$20

$30

$40

$50

$60

0

50

100

150

200

250

300

350

400

450

$53B

$22B

$48B

392

318

393

363

Total capital raised ($B) U.S. ($B) Europe ($B) RoW ($B)

$53B

Lots of capital being invested…but in fewer and bigger deals

Globa l VC dea l flow

*Through 2/17/2016

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016$0

$20

$40

$60

$80

$100

$120

$140

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

$46B $35B

$99B

$21B

5,596

5,703

12,511

10,088

973

Capital invested ($B) U.S. ($B) Europe ($B) RoW ($B)

$119B

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015$0

$20

$40

$60

$80

$100

$120

$140

$45.8B $42.2B

$59.3B

$99.4B

$119.0B

$44.3B $39.0B

$42.9B$35.3B $38.7B

“Tourists” filling VC funding gapGloba l VC fund con t r i bu t ions vs . g loba l VC cap i ta l

i nves ted

*Through 12/31/2015

Non-traditional VC investors account for an increasing share of VC $ spend (about 66%)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015$0

$5

$10

$15

$20

$25

$30

$35

0

20

40

60

80

100

120

$0.03B $0.3B $1.3B $2.6B $1.2B$4.8B $2.1B

$4.1B

$19.9B

$29.8B

14

77

8

24 1926

86

113

68 US31 Asia12 Eu-rope2 ROW=113

“Unicorn” rounds have skyrocketed

VC rounds va lued over $1 b i l l i on

*Through 12/31/2015

$66.1B invested across only 189 companies since 2006 (11% of $).

Big increase in seed rounds over last 5 yrs.

Globa l VC dea l coun t by type

*Through 12/31/2015

2006 2007 2008 2009 2010 2011 2012 2013 2014 20150

1,000

2,000

3,000

4,000

5,000

6,000

7,000

528 1,144

4,027 3,921

2,8703,3683,785

5,3115,747

4,777

1,7002,099

2,585 2,843

2,441

Seed round valuations reach levels previously seen at series A

Med ian p re -money va lua t ion ($M) by se r ies

*Through 12/31/2015

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$3.2$4.8 $4.9 $5.5

$7.3 $6.7$9.6

$12.7$15.4

$22$19

$26

$34

$42

Seed Series A Series B

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

$45.2 $38.1

$56.7 $60.2$78.3

$80.0$65.8

$99.0

$136.4

$184.0

Series C Series D+

2.8X

Median late stage valuations more than double from 2010 levelsMed ian p re -money va lua t ion ($M) by se r ies

*Through 12/31/2015

2006 2007 2008 2009 2010 2011 2012 2013 2014 20150

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

11,721

15,844

21,280

29,565

34,389

Total2011-2015

Year of Invest-ment

Explosion in # of funded companies require exits at some point, big % not

l ikely to find itGloba l VC company inven to ry

*Through 12/31/2015

Nearly 11,000 companies with backing for more than 5 years. ~23,000 more seeking exit in the next 5 years

Under $5M $5M - $10M $10M - $20M $20M - $50M $50M - $75M $75M - $100M $100M+0%

10%

20%

30%

40%

50%

60%

1.5% 2.0% 3.2%

7.8%

21.7%

35.1%

49.7%

Total VC Capital Raised

A glut of heavily funded companies will be seeking public market exits

% o f VC Backed Cos to I PO by VC Cap i ta l Ra i sed (2006 -2015)

*Through 12/31/2015

800+ co’s raised $100M+ yet to be exited.

850 462 co’s respectively

VC exit trends

2014 was a banner year for VC exit activity, 2015 stil l very strong

Globa l VC ex i t flow

*Through 2/17/2016

Avg. exit sz:$104M

Avg. exit sz:$180M

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016$0

$20

$40

$60

$80

$100

$120

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

$60B

$23B

$112B

$6B

984

716

1,702

1,520

141

Total exit value ($B) U.S. ($B) Europe ($B) RoW ($B)

$71.3B

2015 exits gradually cooled off as public markets slowed

Globa l VC ex i t flow by quar te r

*Through 12/31/2015

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q2010 2011 2012 2013 2014 2015

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

0

50

100

150

200

250

300

350

400

450

500

$8B

$15B$11B $12B

$20B

$46B

$16B

$23B262

328 358 344

441

387

330

After rebounding post financial crisis, IPOs fell out of favor sharply

in 2015Globa l VC ex i t coun t by type & IPO % o f ex i t s

*Through 2/17/2016

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20160

200

400

600

800

1,000

1,200

1,400

1,600

0%

5%

10%

15%

20%

25%

20.8%

10.3%

16.2%

9.7%

4.3%

779

1,039

1,4271,373

135205 119275

1476

IPOs as % of VC exits Acquisition/buyout count IPO count

IPO values down, Acq. values fairly steady

Med ian ex i t va lua t ion ($M) by ex i t t ype

*Through 2/17/2016

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016$0

$50

$100

$150

$200

$250

$300

$350

$400

$286.0

$363.1

$210.4

$240.2

$160.6

$51.0$51.2 $50.1 $41.2

$49.0

IPO Acquisition/buyout

Top quartile exit valuations have steadily increased over the decade

Globa l VC ex i t s i ze quar t i l e s

*Through 2/17/2016

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016$0

$20

$40

$60

$80

$100

$120

$140

$17.2$14.4

$17.5$13.6

$18.0

$49.3$50.0 $54.0

$47.7$50.0

$111.3$120.3 $125.8 $125.0

$130.0

25th percentile Median

European exits seem to be more capital efficient in recent years

Med ian ex i t va lua t i on / to ta l cap i ta l r a i sed by ex i t yea r

*Through 12/31/2015

2006 2007 2008 2009 2010 2011 2012 2013 2014 20150.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

4.56x

2.13x

4.58x3.91x

4.84x

3.27x

6.69x6.29x

North America Europe

Median unicorn: 5.67x

Last 4 years Ave. VC ownership at exit: 51%

2014 returned record $54 bil l ion to LPs, 2015 likely to be similar

Globa l VC fund cashflows

*Through 6/30/2015

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

-$60

-$40

-$20

$0

$20

$40

$60

$12B $13B $13B

$27B

$39B

$54B

$35B

-$15B-$17B

-$30B

$5B

Contributions ($B) Distributions ($B)

Recent vintages’ IRRs are way up…Globa l VC fund IRR quar t i l e s

*Through 6/30/2015

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013-20%

-10%

0%

10%

20%

30%

40%

-7.7%

1.0%4.8% 6.6%2.3% 0.4%

8.9%

19.6% 18.4%

7.0% 6.3%

16.1%

34.9%38.9%

IRR 25th IRR Median IRR 75th

…however…

Recent vintages hold large majority of value in current portfolio

Globa l VC fund avg . TVP I & RVP I % o f TVP I

*Through 6/30/2015

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130.0x

0.2x

0.4x

0.6x

0.8x

1.0x

1.2x

1.4x

1.6x

1.8x

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1.15 1.13 1.56 1.50 1.33 1.15

26.4%

55.3%62.8%

72.3%

89.9%96.9%

Avg. TVPI Avg. RVPI % of TVPI

2006 2007 2008 2009 2010 2011 2012 2013 2014 20150

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

11,721

15,844

21,280

29,565

34,389

Total2011-2015

Year of Invest-ment

Explosion in # of funded companies require exits at some point, big % not

l ikely to find itGloba l VC company inven to ry

*Through 12/31/2015

Nearly 11,000 companies with backing for more than 5 years. ~23,000 more seeking exit in the next 5 years

Top exiters 2014 & 2015 – European HQd companies

Firm Name Exit Count

High-Tech Gründerfonds 12Enterprise Ireland 9Deutsche Telekom Strategic Invs. 8KfW IPEX-Bank 8Life Sciences Partners 8Holtzbrinck Ventures 8Vækstfonden 7Tekes 7Seventure Partners 7Gimv 7Almi Invest 7

Firm Name Exit Count

Scottish Enterprise 11Enterprise Ireland 9Verdane Capital 8High-Tech Gründerfonds 8CM-CIC Capital Privé 6Albion Ventures 6Seventure Partners, SEED Capital Denmark, Kreos Capital, KfW IPEX-Bank, Index Ventures, Draper Esprit, Edmond de Rothschild Investment Partners, Bonsai Venture Capital, Amadeus Capital Partners, Acton Capital Partners, Almi Invest

Tied at 5

2014 2015

Top exiters 2014 & 2015 – U.S. HQd companies

Firm Name Exit Count

New Enterprise Associates 30SV Angel 29Kleiner Perkins Caufield & Byers 29Accel Partners 27Y Combinator 25GV 24Techstars 22Western Technology Investment 21Battery Ventures 21Greylock Partners 20Bessemer Venture Partners 20

2014 2015

Firm Name Exit Count

SV Angel 31New Enterprise Associates 25500 Startups 25Western Technology Investment 24Y Combinator 19Kleiner Perkins Caufield & Byers 19Intel Capital 19Greylock Partners 19

Techstars, Sequoia Capital, Khosla Ventures, Great Oaks Venture Capital

Tied at 15

US +1 206.623.1986UK +44 207.190.9809

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Software companies consistently account for over 1/3 of VC exits

Globa l VC ex i t coun t by indus t ry

*Through 12/31/2015

2006 2007 2008 2009 2010 2011 2012 2013 2014 20150%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

28.0% 35.2% 36.2% 34.3% 35.3%

11.6% 8.7% 9.8% 12.8% 12.9% Commercial Svcs.

Consumer Goods & Rec.

Energy

Healthcare

IT Hardware

Media

Pharma & Biotech

Software

Other

SaaS and mobile models are driving software exits for VCs2014 – 2016 YTD so f tware ex i t s by ve r t i ca l

*Through 2/17/2016

45.6%

24.3%

5.8%

4.6%

4.5%4.0%

3.1%2.9%

5.2%

SaaSMobileSecurityMarketing TechBig DataFinTechE-CommerceAdTechOther