U.S. Venture Capital Index® and Selected Benchmark Statistics · Data as of September 30, 2014 CA...

U.S. Venture Capital Index® and Selected Benchmark StatisticsSeptember 30, 2014

Data as ofSeptember 30, 2014

Our goal is to provide you with the most accurate and relevant performance information possible; as a result, Cambridge Associates’ research organization continually monitors the constantly evolving private investments space and its fund managers. When we discern material changes in the structure of an asset class and/or a fund’s investment strategy, it is in the interest of all users of our benchmark statistics that we implement the appropriate classification realignments.

In addition, Cambridge Associates is always working to grow our private investments performance database and ensure that our benchmarks are as representative as possible of investors’ institutional-quality opportunity set. As a result we continually add funds to the database (both newly-raised funds and backfill funds) and occasionally we must remove funds that cease reporting. Our private investments performance database is dynamic and will reflect both classification adjustments and changes to the underlying pool of contributing funds. As a result, you may notice quarter to quarter changes in the results of some historical benchmark return analyses.

Disclaimer

U.S. Venture Capital Index and Selected Benchmark Statistics


Cambridge Associates’ Private Investments Database is one of the most robust collections of institutional quality private fund performance. It contains the historical performance records of over 1,700 fund managers and their over 5,700 funds. In addition, we capture the performance information (gross) of over 66,000 investments underlying our venture capital, growth equity, buyout, mezzanine and private equity energy funds. This is one of the largest collections of portfolio-level performance information in the world and represents the investments of approximately 80% of these funds on a count basis and 86% on a total commitment basis. This fund and investment-level performance information is drawn from the quarterly and audited annual financial statements of the fund managers and each manager’s reported performance numbers are independently verified by Cambridge Associates.

Institutional Quality DataCambridge Associates strives to include only institutional quality funds in our benchmarks. “Institutional quality” funds, in our definition, tend to meet the following criteria: closed-end funds, commingled funds that invest 3rd party capital (we exclude firms that invest off of their balance sheet, such as a bank’s principal investing group or a corporate’s venture capital arm), fund vehicles that are structured to be acceptable to typical sophisticated investors, and funds that are of a sufficient size relative to their asset class/geographic investment strategy in order to permit the entry of large institutional investors. This institutional quality screen provides investors with performance data consistent with their investible opportunity set.

Sources of Benchmark DataOur benchmark database utilizes the quarterly unaudited and annual audited fund financial statements produced by the fund managers (GPs) for their Limited Partners (LPs). These documents are provided to Cambridge Associates by the fund managers themselves. Unlike other data providers, Cambridge Associates does not use Freedom of Information Act (FOIA) requests, regulatory filings, manager surveys, or press “scrapings” to obtain information. For all funds in the benchmarks, we have complete historical quarterly cash flows and net asset values. We use a number of paths to encourage fund managers to submit their performance data to our database: our clients for whom we provide private investment performance reporting, our research organization’s regular meetings with thousands of managers, our special projects designed to enhance existing benchmarks or launch new ones, our exclusive relationships with over ten globally-diverse fund manager associations, and finally, our exclusive relationships with Thomson Reuters the Institutional Limited Partners Association (ILPA). By leveraging these varied sources and proprietary relationships, Cambridge Associates has constructed a rich and diversified benchmark data set.

Vintage Year DefinitionVintage year is defined as the legal inception date as noted in a fund's financial statement. This date can usually be found in the first note to the audited financial statements and is prior to the first close or capital call.

Overview



The Cambridge Associates’ benchmarks are reported on a one-quarter lag from the end of the performance quarter due to the reporting time frame of private investments fund managers.

Published Data: When all of a benchmark group’s (organized by asset class, e.g. Venture Capital or Real Estate) performance information is fully updated for a performance quarter, that benchmark is considered final and the data is “published” via the quarterly benchmark reports.

Changes to Data: After a benchmark group is published, any updates to historical data for these funds, which can include adding a fund and its performance history to the database (“backfills”) and/or updating past information for an existing fund due to late-arriving, updated, or refined information, would be reflected when that group is published for the next performance quarter.

In addition, Cambridge Associates may change the classification of certain funds; this often driven by the evolution of private investments and the resulting need to introduce new benchmarks or refine our classification scheme. For example, as buyout strategies have evolved over the years, the definition of what is a “large cap” buyout has changed and we have moved funds accordingly.

Survivorship Bias: In order to track the performance of a fund in our benchmarks, we require the complete set of financial statements from the fund’s inception to the most current reporting date. When an active fund stops providing financial statements, we reach out to the manager and make several attempts to encourage them to continue to submit their data. We may, during this communication period, roll forward the fund’s last reported quarter’s net asset value (NAV) for several quarters. When we are convinced that the manager will not resume reporting to us, the fund’s entire performance history is removed from the database.

When fund managers stop reporting before their fund’s return history is complete, an element of “survivorship bias” may be introduced to a performance database, which could skew the reported returns upwards if the funds dropping out had poorer returns than those funds that remained. Survivorship bias can affect all investment manager databases, including those for public stock managers and hedge funds. Compared to public stocks and hedge funds, however, the illiquid nature of private investments can actually help limit this survivorship effect. Whereas an underperforming stock manager may simply close up shop or drop out of databases as clients liquidate their positions and fire the manager, private investment partnerships owning illiquid assets continue to exist and require reporting to the limited partners, even if the original manager ceases to exist.

Over the last six years the number of fund managers that stopped reporting to Cambridge Associates represented between 0.3% to 0.8% (per year) of the total number of funds in the database during the respective year, and 0.2% to 0.5% (per year) as a percentage of total NAV in the database during that respective year. During that same period the overall number of funds in our database increased by between 7-12% per year. The performance of the small number of funds that have stopped reporting has been spread amongst all quartiles and has not been concentrated consistently in the poorer performing quartiles.

Timing of Final Benchmarks and Data Evolution


Data as ofSeptember 30, 2014U.S. Venture Capital Index and Selected Benchmark Statistics

Our goal is to provide you with the most accurate and relevant performance information possible; as a result, Cambridge Associates’ research organization continually monitors the constantly evolving private investments space and its fund managers. When we discern material changes in the structure of an asset class and/or a fund’s investment strategy, it is in the interest of all users of our benchmark statistics that we implement the appropriate classification realignments.

Our private investments performance database will reflect any such adjustments, as well as any changes to the underlying pool ofcontributing funds. As a result, you may notice quarter to quarter changes in the results of some historical benchmark return analyses.

Note on Performance Database Changes


Table of Contents

U.S. Venture Capital

Fund Index Analysis 2mPME ReturnsIndex Returns

Fund Since Inception Analysis 7mPME ReturnsSince Inception Returns

Company Analysis 18

Methodology 21

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U.S. Venture Capital: Fund Index Analysis

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Index 1-Quarter YTD 1-Year 3-Year 5-Year 10-Year 15-Year 20-Year 25-Year 30-Year

Cambridge Associates LLC U.S. Venture Capital Index®1 2.44 10.80 24.46 15.20 14.92 9.95 10.01 34.09 21.74 17.51

U.S. Venture Capital - Early Stage Index1 2.75 11.18 27.27 15.69 15.51 9.34 13.36 53.92 28.92 21.09

U.S. Venture Capital - Late & Expansion Stage Index1 1.75 4.28 15.98 13.73 17.54 13.23 7.95 11.45 13.52 12.65

U.S. Venture Capital - Multi-Stage Index1 2.17 12.33 22.96 14.95 13.30 10.00 6.95 13.42 12.88 11.99

Barclays Government/Credit Bond Index 0.17 4.12 4.08 2.54 4.27 4.59 5.63 6.16 6.61 7.62

Dow Jones Industrial Average Index 1.87 4.60 15.29 19.02 14.85 8.15 5.86 10.22 10.34 12.23

Dow Jones U.S. Small Cap Index -6.29 -0.07 8.53 22.42 15.63 9.63 9.89 10.76 NA NA

Dow Jones U.S. TopCap Index 0.73 7.97 19.03 23.04 15.82 8.50 5.21 9.60 NA NA

Nasdaq Composite Index* 1.93 7.59 19.14 22.99 16.18 9.01 3.34 9.26 9.42 10.11

Russell 1000® Index 0.65 7.97 19.01 23.23 15.90 8.46 5.33 9.76 9.66 11.30

Russell 2000® Index -7.36 -4.41 3.93 21.26 14.29 8.19 7.93 9.03 9.12 9.82

S&P 500 Index 1.13 8.34 19.73 22.99 15.70 8.11 4.87 9.59 9.50 11.22

Wilshire 5000 Total Market Index 0.07 7.09 17.90 22.82 15.66 8.49 5.56 9.61 9.51 11.08

U.S. Venture Capital Fund Index Summary: End-to-End Pooled ReturnNet to Limited Partners


The Cambridge Associates LLC U.S. Venture Capital Index® is an end-to-end calculation based on data compiled from 1,522 U.S. venture capital funds (971 early stage, 170late & expansion stage, 375 multi-stage and 6 venture debt funds), including fully liquidated partnerships, formed between 1981 and 2014.1Pooled end-to-end return, net of fees, expenses, and carried interest.Sources: Cambridge Associates LLC, Barclays, Dow Jones Indexes, Frank Russell Company, Standard & Poor's, Thomson Reuters Datastream, and Wilshire Associates, Inc.*Capital change only. | 3


CA Index 1-Year 3-Year 5-Year 10-Year 15-Year 20-Year 25-Year 30-Year

Cambridge Associates LLC U.S Venture Capital Index®1 24.46 15.20 14.92 9.95 10.01 34.09 21.74 17.51

mPME Analysis2

S&P 500 Index 20.09 23.33 15.63 8.65 6.44 9.10 9.13 10.53

Value-Add (bps) 437 -813 -70 130 357 2,499 1,261 698

Russell 2000® Index 4.59 22.35 14.58 8.75 8.53 9.18 9.25 9.63

Value-Add (bps) 1,987 -715 34 120 148 2,491 1,249 788

Russell 3000® Index 18.16 23.50 15.73 8.95 6.90 9.22 9.27 10.47

Value-Add (bps) 630 -830 -81 100 311 2,487 1,247 704

U.S. Venture Capital: Fund Index Summary: End-to-End Pooled Return Compared to CA Modified Public Market Equivalent (mPME)Net to Limited Partners


The Cambridge Associates LLC U.S. Venture Capital Index® is an end-to-end calculation based on data compiled from 1,522 U.S. venture capital funds (971 early stage, 170 late &expansion stage, 375 multi-stage and 6 venture debt funds), including fully liquidated partnerships, formed between 1981 and 2014.1 Pooled end-to-end return, net of fees, expenses, and carried interest.2 CA Modified Public Market Equivalent (mPME) replicates private investment performance under public market conditions. The public index’s shares are purchased and sold according to the private fund cash flow schedule, with distributions calculated in the same proportion as the private fund, and mPME NAV is a function of mPME cash flows and public index returns. “Value-Add” shows (in basis points) the difference between the actual private investment return and the mPME calculated return. Refer to Methodology page for details.Sources: Cambridge Associates LLC, Frank Russell Company, Standard & Poor's and Thomson Reuters Datastream. | 4


U.S. Venture Capital Fund Index Details: One Quarter End-to-End Pooled ReturnNet to Limited Partners


The Cambridge Associates LLC U.S. Venture Capital Index® is an end-to-end calculation based on data compiled from 1,522 U.S. venture capital funds, including fully liquidatedpartnerships, formed between 1981 and 2014. Pooled end-to-end return, net of fees, expenses, and carried interest. Historic quarterly returns are updated in each year-end report toadjust for changes in the index sample.

QuarterEnding

End to EndReturn

QuarterEnding

End to EndReturn

QuarterEnding

End to EndReturn

QuarterEnding

End to EndReturn

QuarterEnding

End to EndReturn

1981 Q1 0.00 1988 Q1 0.60 1995 Q1 6.94 2002 Q1 -8.32 2009 Q1 -2.60

1981 Q2 1.38 1988 Q2 1.96 1995 Q2 8.54 2002 Q2 -10.92 2009 Q2 0.20

1981 Q3 1.13 1988 Q3 0.01 1995 Q3 11.32 2002 Q3 -9.97 2009 Q3 2.03

1981 Q4 1.03 1988 Q4 1.01 1995 Q4 13.56 2002 Q4 -9.79 2009 Q4 3.22

1982 Q1 1.18 1989 Q1 0.82 1996 Q1 8.77 2003 Q1 -4.16 2010 Q1 0.64

1982 Q2 0.30 1989 Q2 2.07 1996 Q2 16.53 2003 Q2 0.46 2010 Q2 0.63

1982 Q3 1.02 1989 Q3 1.39 1996 Q3 4.69 2003 Q3 -1.46 2010 Q3 3.89

1982 Q4 2.73 1989 Q4 2.32 1996 Q4 6.49 2003 Q4 0.99 2010 Q4 8.26

1983 Q1 3.32 1990 Q1 0.70 1997 Q1 -0.15 2004 Q1 1.57 2011 Q1 5.02

1983 Q2 8.86 1990 Q2 2.20 1997 Q2 14.30 2004 Q2 0.01 2011 Q2 7.14

1983 Q3 -1.05 1990 Q3 -3.06 1997 Q3 14.24 2004 Q3 6.75 2011 Q3 -0.90

1983 Q4 6.09 1990 Q4 1.78 1997 Q4 2.94 2004 Q4 6.13 2011 Q4 1.55

1984 Q1 -0.53 1991 Q1 4.51 1998 Q1 10.09 2005 Q1 -2.08 2012 Q1 4.52

1984 Q2 -0.58 1991 Q2 1.56 1998 Q2 5.33 2005 Q2 2.30 2012 Q2 0.65

1984 Q3 -0.44 1991 Q3 6.18 1998 Q3 -1.99 2005 Q3 4.28 2012 Q3 0.76

1984 Q4 0.43 1991 Q4 7.24 1998 Q4 15.08 2005 Q4 2.32 2012 Q4 1.15

1985 Q1 1.53 1992 Q1 4.31 1999 Q1 19.37 2006 Q1 4.50 2013 Q1 2.58

1985 Q2 -2.00 1992 Q2 -1.23 1999 Q2 38.62 2006 Q2 0.32 2013 Q2 4.32

1985 Q3 -0.18 1992 Q3 2.57 1999 Q3 28.99 2006 Q3 2.24 2013 Q3 6.52

1985 Q4 2.65 1992 Q4 7.22 1999 Q4 84.06 2006 Q4 9.65 2013 Q4 11.91

1986 Q1 -0.01 1993 Q1 1.90 2000 Q1 29.44 2007 Q1 2.19 2014 Q1 4.93

1986 Q2 1.59 1993 Q2 4.88 2000 Q2 3.68 2007 Q2 6.23 2014 Q2 2.99

1986 Q3 0.29 1993 Q3 6.79 2000 Q3 10.67 2007 Q3 2.64 2014 Q3 2.44

1986 Q4 5.15 1993 Q4 4.46 2000 Q4 -19.98 2007 Q4 3.42

1987 Q1 5.13 1994 Q1 4.12 2001 Q1 -14.98 2008 Q1 -1.78

1987 Q2 2.20 1994 Q2 0.74 2001 Q2 -7.21 2008 Q2 0.24

1987 Q3 1.96 1994 Q3 7.16 2001 Q3 -17.19 2008 Q3 -2.74

1987 Q4 -2.93 1994 Q4 4.25 2001 Q4 -7.80 2008 Q4 -12.34

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U.S. Venture Capital Fund Index Details: End-to-End Pooled ReturnNet to Limited Partners

Multi-Year Returns

Years End to End Return (%) Years End to End Return

(%)

1 Year 24.46 21 Years 30.00

2 Years 19.59 22 Years 28.50

3 Years 15.20 23 Years 25.98

4 Years 16.63 24 Years 24.41

5 Years 14.92 25 Years 21.74

6 Years 9.95 26 Years 20.26

7 Years 8.43 27 Years 18.80

8 Years 9.88 28 Years 18.60

9 Years 9.86 29 Years 18.05

10 Years 9.95 30 Years 17.51

11 Years 9.94

12 Years 8.30

13 Years 5.58

14 Years 1.65

15 Years 10.01

16 Years 26.04

17 Years 23.56

18 Years 27.14

19 Years 34.02

20 Years 34.09

One Year Rolling Returns

One Year Ended

End to End Return (%)

One Year Ended

End to End Return (%)

9/30/2014 24.46 9/30/1994 17.38

9/30/2013 15.26 9/30/1993 22.38

9/30/2012 7.69 9/30/1992 13.37

9/30/2011 20.74 9/30/1991 14.70

9/30/2010 8.62 9/30/1990 1.92

9/30/2009 -12.21 9/30/1989 5.46

9/30/2008 -1.13 9/30/1988 -0.17

9/30/2007 22.10 9/30/1987 14.84

9/30/2006 9.64 9/30/1986 4.35

9/30/2005 10.92 9/30/1985 -0.58

9/30/2004 9.79

9/30/2003 -13.99

9/30/2002 -32.34

9/30/2001 -47.78

9/30/2000 205.13

9/30/1999 144.60

9/30/1998 17.16

9/30/1997 37.56

9/30/1996 51.40

9/30/1995 34.28

The Cambridge Associates LLC U.S. Venture Capital Index® is an end-to-end calculation based on data compiled from 1,522 U.S. venture capital funds, including fully liquidatedpartnerships, formed between 1981 and 2014. Pooled end-to-end return, net of fees, expenses, and carried interest. | 6

U.S. Venture Capital: Fund Since Inception Analysis

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VintageYear

Pooled Return(%)

Arithmetic Mean (%)

Median (%)

Equal-WeightedPooled Return

(%)

UpperQuartile

(%)

Lower Quartile(%)

Standard Deviation

(%)DPI RVPI TVPI Number

of Funds

1981 8.47 9.01 7.87 9.03 13.24 5.94 5.59 1.76 0.00 1.76 91982 7.38 7.20 7.90 7.36 9.11 4.87 3.29 1.79 0.00 1.79 111983 10.23 9.55 8.72 10.09 12.46 7.10 5.73 2.01 0.00 2.01 281984 8.65 7.76 6.27 8.11 12.92 3.78 8.82 1.77 0.00 1.77 321985 12.91 11.70 12.86 12.88 17.35 5.49 8.21 2.69 0.00 2.69 261986 14.52 8.81 9.43 9.11 12.90 5.27 5.13 2.89 0.00 2.90 301987 18.26 14.53 15.65 15.82 22.18 8.70 10.64 2.72 0.00 2.72 341988 18.88 14.30 11.87 14.70 21.65 6.58 13.77 2.41 0.09 2.50 261989 19.16 17.05 13.31 18.88 28.80 7.75 14.46 2.59 0.00 2.59 371990 33.11 24.07 21.54 26.28 31.19 14.28 19.60 3.15 0.00 3.15 171991 27.89 24.02 18.56 25.64 27.86 11.64 20.33 3.17 0.00 3.17 171992 32.60 28.23 19.65 37.29 35.86 10.85 30.55 3.09 0.00 3.09 221993 46.71 30.43 18.83 41.09 46.49 12.01 31.10 4.12 0.00 4.13 361994 59.26 34.24 26.45 44.87 46.45 6.73 47.15 5.39 0.01 5.40 421995 88.46 56.57 41.65 77.41 80.62 21.54 58.47 6.07 0.00 6.07 351996 100.73 60.48 37.06 87.55 81.49 7.18 77.99 4.89 0.02 4.91 421997 91.80 53.74 9.64 73.71 63.32 -2.60 102.06 3.08 0.02 3.10 711998 11.92 16.93 -0.31 15.74 15.70 -6.24 71.86 1.45 0.06 1.51 801999 -0.55 -3.00 -2.39 -1.03 3.24 -10.61 17.77 0.87 0.09 0.96 1132000 0.76 -2.31 -1.33 0.32 4.22 -6.84 12.34 0.83 0.22 1.05 1562001 2.80 -0.26 1.40 3.57 6.98 -5.38 18.69 0.90 0.28 1.18 542002 0.41 1.12 -0.06 2.98 7.92 -5.22 9.06 0.73 0.29 1.02 332003 9.04 -1.15 1.57 6.38 8.35 -3.31 25.98 1.14 0.50 1.64 382004 8.77 3.04 1.57 9.37 8.39 -5.52 20.63 0.91 0.66 1.58 682005 7.05 2.94 4.89 6.55 9.53 -0.82 17.81 0.54 0.85 1.39 622006 9.49 4.85 6.89 7.52 13.39 -1.68 13.26 0.58 0.95 1.52 842007 16.77 15.25 14.12 17.92 21.65 5.10 17.72 0.68 1.13 1.81 642008 16.76 12.80 12.43 15.36 18.39 6.10 13.78 0.38 1.23 1.62 632009 20.51 14.68 14.93 17.73 25.68 5.64 17.24 0.33 1.35 1.68 222010 31.87 21.66 21.82 26.32 31.07 11.41 22.41 0.30 1.62 1.92 402011 30.42 14.06 7.80 17.61 39.44 -2.98 30.53 0.09 1.42 1.51 402012 26.53 10.68 8.37 16.12 26.79 -12.62 36.51 0.06 1.25 1.31 45

U.S. Venture Capital: Since Inception IRR & Multiples by Fund Vintage YearNet to Limited Partners


Notes: Based on data compiled from 1,477 U.S. venture capital funds, including fully liquidated partnerships, formed between 1981 and 2012. Internal rates of return are net of fees,expenses and carried interest. Vintage year funds formed since 2010 are too young to have produced meaningful returns. Analysis and comparison of partnership returns tobenchmark statistics may be irrelevant.

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U.S. Venture Capital: Since Inception IRR & Multiples Compared to CA Modified Public Market Equivalent (mPME)Net to Limited Partners

Pooled IRR (%) and IRR-Based Value-Add (bps)

Vintage Year

Number of

Funds

CABenchmark

S&P 500Index

Russell 2000® Index

IRR mPME IRR Value-Add mPME IRR Value-Add

1981 9 8.47 17.66 -918 13.32 -4841982 11 7.38 17.25 -987 11.73 -4351983 28 10.23 16.12 -589 10.47 -241984 32 8.65 15.46 -681 10.22 -1571985 26 12.91 14.40 -148 9.98 2931986 30 14.52 14.68 -16 11.69 2831987 34 18.26 13.61 466 12.02 6251988 26 18.88 15.20 368 13.65 5231989 37 19.16 16.65 251 14.34 4831990 17 33.11 15.81 1,730 15.48 1,7631991 17 27.89 18.76 913 15.04 1,2851992 22 32.60 20.45 1,215 14.17 1,8431993 36 46.71 23.27 2,344 14.33 3,2381994 42 59.26 22.03 3,723 12.64 4,6611995 35 88.46 19.33 6,913 10.10 7,8361996 42 100.73 12.11 8,862 8.26 9,2461997 71 91.80 5.76 8,604 7.30 8,4501998 80 11.92 1.53 1,039 7.46 4471999 113 -0.55 1.84 -239 6.73 -7282000 156 0.75 4.86 -411 7.64 -6892001 54 2.80 6.49 -369 8.21 -5412002 33 0.41 6.85 -644 7.85 -7432003 38 9.04 6.79 225 7.19 1852004 68 8.77 7.04 173 7.04 1732005 62 7.05 8.95 -190 8.62 -1572006 84 9.49 9.86 -36 9.53 -42007 64 16.77 12.52 425 11.98 4792008 63 16.76 16.18 57 14.35 2402009 22 20.51 17.15 336 14.43 6082010 40 31.87 17.62 1,426 13.70 1,8182011 40 30.42 18.93 1,150 12.73 1,7702012 45 26.53 18.59 794 9.89 1,663


Notes: Based on data compiled from 1,477 U.S. venture capital funds, including fully liquidated partnerships, formed between 1981 and 2012. Internal rates of returns are net of fees,expenses and carried interest. Vintage year funds formed since 2010 are too young to have produced meaningful returns. Analysis and comparison of partnership returns to benchmarkstatistics may be irrelevant.mPME Note: Refer to Methodology page for further details on Cambridge Associates Modified PME (mPME).Sources: Cambridge Associates LLC, Frank Russell Company, Standard & Poor's and Thomson Reuters Datastream.

Total Value to Paid In (TVPI)

CA Benchmark

S&P 500 Index

Russell2000® Index

TVPI mPME TVPI mPME TVPI

1.76 2.91 2.20 1.79 3.22 2.24 2.01 2.85 2.01 1.77 2.53 1.88 2.69 2.53 1.93 2.90 2.85 2.29 2.72 1.93 1.77 2.50 2.03 1.86 2.59 2.28 1.97 3.15 1.71 1.65 3.17 2.11 1.80 3.09 1.94 1.58 4.13 1.89 1.49 5.40 1.79 1.43 6.07 1.55 1.31 4.91 1.36 1.30 3.10 1.18 1.27 1.51 1.08 1.42 0.96 1.12 1.48 1.05 1.37 1.62 1.18 1.46 1.59 1.02 1.46 1.53 1.64 1.45 1.48 1.58 1.45 1.45 1.39 1.53 1.50 1.52 1.55 1.52 1.81 1.56 1.52 1.62 1.59 1.50 1.68 1.54 1.44 1.92 1.45 1.33 1.51 1.30 1.19 1.31 1.21 1.11

Distributions to Paid In (DPI)

CA Benchmark

S&P 500 Index

Russell2000® Index

DPI mPME DPI mPME DPI

1.76 2.91 2.201.79 3.22 2.242.01 2.85 2.011.77 2.53 1.882.69 2.53 1.932.89 2.84 2.292.72 1.93 1.772.41 1.98 1.812.59 2.28 1.973.15 1.71 1.653.17 2.11 1.803.09 1.94 1.584.12 1.89 1.495.39 1.79 1.436.07 1.55 1.314.89 1.34 1.273.08 1.16 1.251.45 1.03 1.360.87 1.00 1.330.83 1.04 1.250.90 1.06 1.180.73 0.90 0.981.14 1.00 1.040.91 0.80 0.830.54 0.56 0.580.58 0.57 0.590.68 0.60 0.620.38 0.38 0.380.33 0.31 0.310.30 0.25 0.250.09 0.09 0.080.06 0.06 0.06

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U.S. Venture Capital: Since Inception IRR & Multiples Compared to CA Modified Public Market Equivalent (mPME)Net to Limited Partners

Pooled IRR (%) and IRR-Based Value-Add (bps)

Vintage Year

Number of

Funds

CABenchmark


IRR mPME IRR Value-Add

1981 9 8.47 16.77 -8301982 11 7.38 16.33 -8941983 28 10.23 15.22 -4991984 32 8.65 14.72 -6071985 26 12.91 13.76 -851986 30 14.52 14.32 201987 34 18.26 13.57 4691988 26 18.88 15.11 3771989 37 19.16 16.37 2791990 17 33.11 15.80 1,7311991 17 27.89 18.13 9761992 22 32.60 19.44 1,3171993 36 46.71 21.94 2,4771994 42 59.26 20.68 3,8581995 35 88.46 18.04 7,0421996 42 100.73 11.71 8,9011997 71 91.80 6.24 8,5561998 80 11.92 2.40 9521999 113 -0.55 2.55 -3102000 156 0.75 5.39 -4632001 54 2.80 6.96 -4162002 33 0.41 7.23 -6822003 38 9.04 7.09 1952004 68 8.77 7.25 1522005 62 7.05 9.12 -2072006 84 9.49 10.04 -552007 64 16.77 12.69 4082008 63 16.76 16.22 542009 22 20.51 17.06 3452010 40 31.87 17.37 1,4502011 40 30.42 18.48 1,1942012 45 26.53 17.85 868


Notes: Based on data compiled from 1,477 U.S. venture capital funds, including fully liquidated partnerships, formed between 1981 and 2012. Internal rates of returns are net of fees,expenses and carried interest. Vintage year funds formed since 2010 are too young to have produced meaningful returns. Analysis and comparison of partnership returns to benchmarkstatistics may be irrelevant.mPME Note: Refer to Methodology page for further details on Cambridge Associates Modified PME (mPME).Sources: Cambridge Associates LLC, Frank Russell Company, Standard & Poor's and Thomson Reuters Datastream.

Total Value to Paid In (TVPI)

CA Benchmark


TVPI mPME TVPI

1.76 2.761.79 3.042.01 2.711.77 2.432.69 2.442.90 2.772.72 1.922.50 2.012.59 2.233.15 1.703.17 2.053.09 1.884.13 1.825.40 1.746.07 1.524.91 1.363.10 1.201.51 1.120.96 1.171.05 1.421.18 1.501.02 1.491.64 1.471.58 1.471.39 1.541.52 1.561.81 1.571.62 1.591.68 1.541.92 1.441.51 1.291.31 1.20

Distributions to Paid In (DPI)

CA Benchmark


DPI mPME DPI

1.76 2.761.79 3.042.01 2.711.77 2.432.69 2.442.89 2.772.72 1.922.41 1.972.59 2.233.15 1.703.17 2.053.09 1.884.12 1.825.39 1.736.07 1.524.89 1.333.08 1.181.45 1.070.87 1.040.83 1.080.90 1.090.73 0.921.14 1.020.91 0.820.54 0.570.58 0.580.68 0.610.38 0.380.33 0.310.30 0.250.09 0.090.06 0.06

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U.S. Venture Capital: Total Value to Paid In Capital Multiple (TVPI)Net to Limited Partners


Vintage Year Pooled Return Arithmetic Mean Median Upper Quartile Lower Quartile Number of Funds

1981 1.76 1.86 1.90 2.02 1.55 91982 1.79 1.94 1.74 2.20 1.54 111983 2.01 1.99 1.85 2.30 1.54 281984 1.77 1.70 1.71 2.04 1.27 321985 2.69 2.62 2.38 3.04 1.45 261986 2.90 1.83 1.87 2.07 1.46 301987 2.72 2.55 2.28 3.19 1.72 341988 2.50 2.15 2.12 2.53 1.47 261989 2.59 2.44 2.09 2.99 1.52 371990 3.15 2.72 2.44 2.80 1.60 171991 3.17 3.19 2.36 3.52 1.62 171992 3.09 3.50 2.22 3.18 1.55 221993 4.13 3.57 2.30 3.53 1.55 361994 5.40 3.78 2.16 4.43 1.34 421995 6.07 5.17 2.68 4.33 1.87 351996 4.91 4.44 2.19 4.60 1.27 421997 3.10 2.57 1.42 2.45 0.88 711998 1.51 1.59 0.98 1.60 0.63 801999 0.96 0.94 0.83 1.32 0.42 1132000 1.05 1.02 0.92 1.29 0.61 1562001 1.18 1.23 1.10 1.51 0.76 542002 1.02 1.19 0.99 1.48 0.77 332003 1.64 1.44 1.09 1.57 0.80 382004 1.58 1.61 1.09 1.57 0.76 682005 1.39 1.38 1.33 1.59 0.96 622006 1.52 1.40 1.38 1.69 0.93 842007 1.81 1.90 1.65 2.29 1.21 642008 1.62 1.56 1.42 1.67 1.18 632009 1.68 1.50 1.44 1.84 1.15 222010 1.92 1.71 1.52 1.87 1.25 402011 1.51 1.29 1.11 1.53 0.96 402012 1.31 1.18 1.08 1.37 0.89 45


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U.S. Venture Capital: Distribution to Paid In Capital Multiple (DPI)Net to Limited Partners



1981 1.76 1.86 1.90 2.02 1.55 91982 1.79 1.94 1.74 2.20 1.54 111983 2.01 1.99 1.85 2.30 1.54 281984 1.77 1.70 1.71 2.04 1.27 321985 2.69 2.62 2.38 3.04 1.45 261986 2.89 1.83 1.87 2.07 1.46 301987 2.72 2.55 2.28 3.19 1.72 341988 2.41 2.11 2.08 2.52 1.43 261989 2.59 2.44 2.09 2.99 1.52 371990 3.15 2.72 2.44 2.80 1.60 171991 3.17 3.19 2.36 3.52 1.62 171992 3.09 3.49 2.22 3.18 1.55 221993 4.12 3.57 2.30 3.53 1.51 361994 5.39 3.76 2.13 4.43 1.34 421995 6.07 5.17 2.68 4.33 1.87 351996 4.89 4.42 2.16 4.58 1.27 421997 3.08 2.54 1.35 2.41 0.88 711998 1.45 1.52 0.97 1.54 0.62 801999 0.87 0.85 0.74 1.17 0.34 1132000 0.83 0.83 0.70 1.12 0.42 1562001 0.90 0.94 0.77 1.16 0.57 542002 0.73 0.84 0.70 1.18 0.43 332003 1.14 0.92 0.55 1.28 0.28 382004 0.91 0.97 0.44 0.88 0.23 682005 0.54 0.56 0.39 0.76 0.19 622006 0.58 0.49 0.41 0.81 0.12 842007 0.68 0.69 0.49 0.92 0.20 642008 0.38 0.39 0.30 0.58 0.07 632009 0.33 0.30 0.13 0.41 0.08 222010 0.30 0.24 0.15 0.35 0.00 402011 0.09 0.08 0.00 0.07 0.00 402012 0.06 0.04 0.00 0.02 0.00 45


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U.S. Venture Capital: Residual Value to Paid In Capital Multiple (RVPI)Net to Limited Partners



1981 0.00 0.00 0.00 0.00 0.00 91982 0.00 0.00 0.00 0.00 0.00 111983 0.00 0.00 0.00 0.00 0.00 281984 0.00 0.00 0.00 0.00 0.00 321985 0.00 0.00 0.00 0.00 0.00 261986 0.00 0.00 0.00 0.00 0.00 301987 0.00 0.00 0.00 0.00 0.00 341988 0.09 0.04 0.00 0.00 0.00 261989 0.00 0.00 0.00 0.00 0.00 371990 0.00 0.00 0.00 0.00 0.00 171991 0.00 0.00 0.00 0.00 0.00 171992 0.00 0.01 0.00 0.00 0.00 221993 0.00 0.00 0.00 0.00 0.00 361994 0.01 0.01 0.00 0.00 0.00 421995 0.00 0.00 0.00 0.00 0.00 351996 0.02 0.03 0.00 0.03 0.00 421997 0.02 0.02 0.00 0.01 0.00 711998 0.06 0.06 0.00 0.05 0.00 801999 0.09 0.09 0.05 0.13 0.00 1132000 0.22 0.19 0.14 0.24 0.04 1562001 0.28 0.29 0.22 0.39 0.10 542002 0.29 0.34 0.22 0.42 0.08 332003 0.50 0.52 0.43 0.75 0.28 382004 0.66 0.64 0.54 0.85 0.31 682005 0.85 0.82 0.80 1.12 0.55 622006 0.95 0.91 0.89 1.12 0.64 842007 1.13 1.21 1.01 1.44 0.74 642008 1.23 1.16 1.08 1.33 0.79 632009 1.35 1.20 1.15 1.48 0.98 222010 1.62 1.47 1.29 1.54 1.01 402011 1.42 1.21 1.11 1.40 0.90 402012 1.25 1.14 1.05 1.23 0.88 45


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Vintage Year

All Funds1 Capitalization<=$50mm

Capitalization>$50mm<=$150mm

Capitalization>$150mm

Pooled Return Number of Funds Pooled Return Number of

Funds Pooled Return Number of Funds Pooled Return Number of

Funds1981 8.47 9 8.72 7 NA 2 NA 01982 7.38 11 7.17 8 NA 2 NA 11983 10.23 28 10.80 15 8.94 8 10.76 51984 8.65 32 8.25 19 10.51 10 4.91 31985 12.91 26 11.68 18 13.32 7 NA 11986 14.52 30 7.84 21 11.36 5 16.36 41987 18.26 34 13.66 17 19.62 11 19.95 61988 18.88 26 11.47 17 18.27 5 27.49 41989 19.16 37 14.65 22 24.38 9 18.94 61990 33.11 17 19.67 9 39.24 7 NA 11991 27.89 17 21.72 8 29.90 8 NA 11992 32.60 22 47.31 9 49.08 5 22.67 81993 46.71 36 14.89 16 57.22 15 43.32 51994 59.26 42 25.43 17 49.01 22 89.63 31995 88.46 35 42.41 9 103.29 24 NA 21996 100.73 42 48.15 9 105.35 18 101.49 151997 91.80 71 11.30 20 78.36 34 107.47 171998 11.92 80 107.31 15 8.27 34 11.97 311999 -0.55 113 1.86 13 -1.02 33 -0.55 672000 0.76 156 -2.00 21 -0.07 47 0.88 882001 2.80 54 4.52 17 1.91 10 2.78 272002 0.41 33 2.08 10 4.50 12 -0.97 112003 9.04 38 1.36 8 7.32 11 9.50 192004 8.77 68 5.27 11 21.35 13 7.59 442005 7.05 62 6.51 10 3.27 11 7.29 412006 9.49 84 4.84 11 5.85 29 10.07 442007 16.77 64 10.71 8 19.20 9 16.73 472008 16.76 63 14.16 15 6.25 12 17.31 362009 20.51 22 NA 2 16.17 5 20.90 152010 31.87 40 20.75 8 13.33 9 33.40 232011 30.42 40 19.36 8 2.88 10 34.02 222012 26.53 45 23.21 10 39.14 11 25.92 24

U.S. Venture Capital: Since Inception IRR Based on Fund CapitalizationNet to Limited Partners (%)


Notes: 1Based on data compiled from 1,477 U.S. venture capital funds, including fully liquidated partnerships, formed between 1981 and 2012. Returns are net of fees, expenses and carried interest. To reflect fundraising environment, returns for vintage year 1981 through 1991 are represented by capitalization amounts of <$50mm, >$50mm and <$100mm, and >$100mm. Vintage year funds formed since 2010 are too young to have produced meaningful returns. Analysis and comparison of partnership returns to benchmark statistics may be irrelevant. Benchmarks with NA (not applicable) have an insufficient number of funds in the vintage year sample to produce a meaningful return. | 14


Vintage Year

All Funds1 Early Stage Late & Expansion Stage Multi-Stage

Pooled Return Number of Funds Pooled Return Number of

Funds Pooled Return Number of Funds Pooled Return Number of

Funds1981 8.47 9 10.74 6 NA 0 4.75 31982 7.38 11 7.67 10 NA 0 NA 11983 10.23 28 8.87 17 10.47 4 12.01 71984 8.65 32 8.42 21 NA 2 7.80 91985 12.91 26 13.65 18 NA 2 11.71 61986 14.52 30 9.25 21 NA 2 16.11 71987 18.26 34 17.81 19 20.90 6 16.35 91988 18.88 26 21.56 18 NA 1 14.50 71989 19.16 37 24.51 26 NA 2 15.58 91990 33.11 17 40.15 8 23.27 3 20.31 61991 27.89 17 29.61 13 NA 1 25.31 31992 32.60 22 36.78 15 20.20 3 25.84 41993 46.71 36 56.41 23 NA 2 20.31 111994 59.26 42 71.64 29 22.44 5 42.54 71995 88.46 35 102.19 24 33.82 3 17.51 81996 100.73 42 130.09 26 44.60 3 45.14 121997 91.80 71 117.56 53 106.40 6 16.19 121998 11.92 80 16.94 52 6.40 6 4.92 221999 -0.55 113 -5.55 69 4.07 20 5.86 232000 0.76 156 0.37 108 4.87 17 0.24 302001 2.80 54 3.24 29 5.82 3 2.25 222002 0.41 33 0.28 22 0.39 6 -0.20 42003 9.04 38 9.39 27 11.53 4 1.65 72004 8.77 68 11.72 41 3.05 9 3.97 182005 7.05 62 4.33 40 26.40 5 6.39 172006 9.49 84 8.04 45 11.53 14 10.20 252007 16.77 64 18.40 34 13.62 7 16.23 222008 16.76 63 18.00 37 6.74 8 18.28 182009 20.51 22 22.76 13 NA 1 19.38 82010 31.87 40 36.45 25 16.55 6 25.53 92011 30.42 40 30.64 25 19.84 5 33.89 102012 26.53 45 30.25 31 41.20 6 15.76 8

U.S. Venture Capital: Since Inception IRR Based on Fund Initial StageNet to Limited Partners (%)


Notes: 1Based on data compiled from 1,477 U.S. venture capital funds, including fully liquidated partnerships, formed between 1981 and 2012. Excludes 6 Venture Debt stage funds. Returns are net of fees, expenses and carried interest. Vintage year funds formed since 2010 are too young to have produced meaningful returns. Analysis and comparison of partnership returns to benchmark statistics may be irrelevant. Benchmarks with NA (not applicable) have an insufficient number of funds in the vintage year sample to produce a meaningful return.

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Vintage YearAll Funds1 Focused Multi-Industry

Pooled Return Number of Funds Pooled Return Number of Funds Pooled Return Number of Funds

1981 8.47 9 9.68 3 7.47 61982 7.38 11 6.98 6 8.31 51983 10.23 28 9.26 12 10.74 161984 8.65 32 10.86 14 7.02 181985 12.91 26 14.49 12 10.71 141986 14.52 30 9.54 14 16.36 161987 18.26 34 20.11 15 17.22 191988 18.88 26 21.86 17 15.22 91989 19.16 37 27.20 16 15.94 211990 33.11 17 37.26 9 20.07 81991 27.89 17 29.78 14 10.84 31992 32.60 22 38.49 15 18.49 71993 46.71 36 48.09 22 44.28 141994 59.26 42 63.63 32 40.08 101995 88.46 35 102.58 28 29.25 71996 100.73 42 97.42 35 126.25 71997 91.80 71 96.41 51 80.44 201998 11.92 80 15.70 67 -1.21 131999 -0.55 113 -0.73 96 1.20 172000 0.76 156 0.30 135 4.39 212001 2.80 54 2.37 48 7.51 62002 0.41 33 -0.22 26 4.32 72003 9.04 38 9.40 34 2.07 42004 8.77 68 9.80 60 2.35 82005 7.05 62 8.42 49 0.22 132006 9.49 84 9.39 70 10.00 142007 16.77 64 20.00 48 7.80 162008 16.76 63 18.97 45 13.64 182009 20.51 22 24.48 15 15.19 72010 31.87 40 28.57 30 41.57 102011 30.42 40 34.09 30 15.52 102012 26.53 45 29.52 35 22.82 10

U.S. Venture Capital: Since Inception IRR Based on Fund IndustryNet to Limited Partners (%)


Notes: 1Based on data compiled from 1,477 U.S. venture capital funds, including fully liquidated partnerships, formed between 1981 and 2012. Returns are net of fees, expenses and carried interest. Vintage year funds formed since 2010 are too young to have produced meaningful returns. Analysis and comparison of partnership returns to benchmark statistics may be irrelevant. Benchmarks with NA (not applicable) have an insufficient number of funds in the vintage year sample to produce a meaningful return. | 16


Vintage YearAll Funds1 Focused Multi-Region

Pooled Return Number of Funds Pooled Return Number of Funds Pooled Return Number of Funds

1981 8.47 9 6.89 4 9.50 51982 7.38 11 8.37 4 6.80 71983 10.23 28 9.27 15 10.88 131984 8.65 32 9.51 14 7.96 181985 12.91 26 14.67 14 11.95 121986 14.52 30 8.90 12 15.35 181987 18.26 34 18.68 19 17.66 151988 18.88 26 17.01 11 20.68 151989 19.16 37 26.64 22 15.21 151990 33.11 17 27.76 9 35.91 81991 27.89 17 19.35 7 36.71 101992 32.60 22 52.43 9 18.92 131993 46.71 36 54.10 17 38.79 191994 59.26 42 79.44 24 27.73 181995 88.46 35 112.01 19 55.38 161996 100.73 42 161.38 18 34.79 241997 91.80 71 152.97 33 43.51 381998 11.92 80 24.19 40 3.65 401999 -0.55 113 1.07 57 -1.75 562000 0.76 156 0.29 71 0.97 852001 2.80 54 2.91 21 2.73 332002 0.41 33 1.77 13 -0.04 202003 9.04 38 10.46 20 8.12 182004 8.77 68 8.21 27 9.06 412005 7.05 62 1.95 20 8.57 422006 9.49 84 6.73 35 10.69 492007 16.77 64 22.35 21 14.85 432008 16.76 63 21.17 22 15.24 412009 20.51 22 20.98 6 20.38 162010 31.87 40 39.31 19 23.75 212011 30.42 40 25.03 12 33.00 282012 26.53 45 30.29 14 24.57 31


U.S. Venture Capital: Since Inception IRR Based on Fund RegionNet to Limited Partners (%)

Notes: 1Based on data compiled from 1,477 U.S. venture capital funds, including fully liquidated partnerships, formed between 1981 and 2012. Returns are net of fees, expenses and carried interest. Vintage year funds formed since 2010 are too young to have produced meaningful returns. Analysis and comparison of partnership returns to benchmark statistics may be irrelevant. Benchmarks with NA (not applicable) have an insufficient number of funds in the vintage year sample to produce a meaningful return. | 17

U.S. Venture Capital: Company Analysis

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Pooled Gross IRR (%) of Companies Receiving Initial Investment In:

Industry 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Chemical/Materials 5.67 12.79 -8.43 -57.31 -19.22 -19.83 0.47 -14.75 8.55 -3.99 16.61 -1.91 2.15 12.20 118.70 23.28

Consumer/Retail -6.42 6.92 0.80 -1.16 11.46 4.31 11.70 13.47 3.34 1.22 0.31 15.23 -2.22 19.19 33.45 28.31

Electronics 58.55 183.47 4.55 -13.15 -2.39 0.24 -6.17 2.75 -3.65 -4.61 -1.91 4.88 1.50 28.44 16.24 53.42

Energy 10.33 6.50 -2.47 5.31 -4.06 12.69 34.29 -0.86 -5.02 -7.57 10.36 -7.33 -6.74 7.34 2.88 5.82

Environmental -100.00 NA NA NA -27.39 21.63 -74.06 -46.45 -75.66 -99.55 -20.83 -2.42 -12.05 10.05 8.39 -14.48

Financial Services 9.57 32.22 5.64 12.37 21.51 18.76 19.46 28.65 9.47 18.41 1.40 11.33 16.82 20.84 20.67 56.43

Hardware/Systems 56.84 201.03 1.27 -7.99 14.36 6.71 4.20 16.73 -3.96 -2.09 45.91 18.90 60.67 47.23 59.15 27.09

Health Care/Biotech * 7.71 17.52 13.03 2.40 8.75 6.85 14.23 8.53 10.52 5.56 13.22 16.07 22.10 26.00 33.17 53.89

Industrial -99.89 16.32 10.89 -99.99 -100.00 NA 42.56 70.67 -1.70 13.73 -0.02 21.65 NA -31.09 71.92 -100.00

Information Technology * 272.55 276.87 33.61 -2.92 -0.95 9.45 15.45 15.93 24.78 17.28 21.08 28.13 47.93 40.72 26.57 39.81

Manufacturing 58.55 -14.76 8.42 -2.83 15.96 -13.52 21.26 -1.17 -12.28 15.44 7.34 11.55 21.89 8.26 37.34 3.86

Media/Communications -0.99 206.60 13.37 -0.06 5.35 5.04 9.98 13.76 10.46 -8.87 3.70 21.19 28.43 40.85 18.84 24.03

Software/Services 121.56 106.49 -3.70 -5.64 1.54 17.87 9.39 25.33 6.40 14.49 13.25 23.91 48.52 38.21 54.05 62.82

Other/Fund of Funds 32.54 4.37 -16.17 -9.03 1.64 -5.92 23.39 6.32 8.03 5.77 8.28 7.90 46.50 19.32 18.69 34.27

All Companies 137.13 153.64 17.94 -2.68 3.94 9.86 11.33 13.92 12.15 8.39 13.76 18.97 32.54 32.29 32.96 46.14

Number of Companies 1,067 1,541 2,369 3,083 1,544 1,323 1,315 1,565 1,490 1,695 1,803 1,606 1,025 1,388 1,700 1,475

U.S. Venture Capital: Since Inception IRR by Company Initial Investment Year


By Industry

* See following exhibit for industry subgroups.NA indicates inadequate number of companies in sample. | 19


Pooled Gross IRR (%) of Companies Receiving Initial Investment In:

Subgroup 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Biotechnology/Biopharm/R&D 10.27 51.57 74.48 -2.56 7.47 4.93 20.32 4.62 14.00 6.95 16.83 14.00 26.97 32.71 40.41 81.05

Health Care Devices 8.30 3.75 7.62 5.28 3.11 0.09 4.40 1.72 7.85 1.69 2.97 8.19 6.27 13.46 14.60 6.79

Health Care Services 2.61 9.74 6.10 9.73 14.34 13.96 19.17 21.40 12.99 10.04 17.82 16.74 26.71 13.53 29.27 25.79

Health Care Software/Systems 9.14 4.56 2.87 -0.44 3.04 -4.51 -14.35 21.57 10.88 8.41 21.64 55.71 16.49 19.13 41.52 -2.73

Pharmaceuticals 6.62 24.89 22.17 13.22 20.99 34.10 25.95 20.98 2.08 6.62 14.33 11.96 30.98 36.75 42.28 83.19

Internet-eBusiness 136.35 105.63 -5.57 -1.83 4.30 25.01 26.54 40.29 16.94 16.99 14.92 24.76 39.38 37.48 30.58 39.90

Internet-eCommerce 682.30 294.03 37.83 9.88 16.00 6.76 38.32 21.69 47.63 30.77 29.56 41.64 61.32 44.26 25.54 41.58

Telecom Network/Systems 238.19 359.07 271.30 -9.16 -0.15 15.81 4.00 4.46 2.70 -6.75 24.89 20.60 15.63 11.29 0.37 18.82

Telecom Products 245.38 306.06 52.02 -9.87 -8.30 -13.13 13.09 -5.77 -6.06 -22.07 -6.32 -3.04 27.73 46.08 7.49 12.16

Telecom Services 138.95 101.45 -9.41 -2.94 3.89 7.86 10.96 4.11 -4.93 5.40 14.79 -4.98 -58.62 38.39 18.42 38.51

U.S. Venture Capital: Since Inception IRR by Company Initial Investment Year


NA indicates inadequate number of companies in sample.

By Health Care/Biotech and Information Technology Subgroups

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Cambridge Associates LLC (CA) has established a database to monitor investments made by venture capital and other alternative asset partnerships. On September 30, 2014, 1,522 U.S. venture capital funds from the years 1981 through 2014 were included in the sample. Users of the analysis may find the following description of the data sources and calculation techniques helpful to their interpretation of information presented in the report:

1. Partnership financial statements and narratives are the primary source of information concerning cash flows and ending residual/ net asset values (NAV) for both partnerships and portfolio company investments.

2. Recognizing the alternative asset community's sensitivity to the distribution of information pertaining to individual fund investments, as a matter of policy CA only releases aggregated figures in its benchmark report.

3. Vintage year is defined as the legal inception date as noted in a fund's financial statement. This date can usually be found in the first note to the audited financial statements and is prior to the first close or capital call.

4. CA uses both the since inception internal rate of return and the end-to-end or horizon performance calculation in its benchmark reports:

a. The since inception internal rate of return (SI IRR) is a since inception calculation that solves for the discount rate, which makes thenet present value of an investment equal to zero. The calculation is based on cash-on-cash returns over equal periods modified forthe residual value of the partnership’s equity or portfolio company’s NAV. The residual value attributed to each respective groupbeing measured is incorporated as its ending value. Transactions are accounted for on a quarterly basis, and annualized values areused for reporting purposes. Please note that all transactions are recorded on the 45th day or midpoint of the quarter.

b. Cambridge Associates uses the end –to-end or horizon internal rate of return calculation to calculate the official quarterly, annual,and multi-year index figures. The horizon IRR performance calculation is a money-weighted return similar to the since inceptionIRR; however, it is measuring performance between two points in time. The calculation incorporates the beginning NAV (if any,treated as an inflow), interim cash flows and the ending NAV (if any, treated as an outflow). All interim cash flows are recorded onthe mid-period date of the quarter. In order for a fund to be included in a horizon IRR calculation, the fund must have at least onequarterly contribution, distribution or NAV during the time frame being measured. Similar to the since inception IRR, the horizonIRR is annualized for time frames greater than one year.

Description of Performance Measurement Methodology


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5. Additional Calculation Definitions:In order to provide meaningful statistics, Cambridge Associates has applied minimum fund count thresholds for each calculation.. See

minimum counts in parenthesis after each calculation.a. Pooled return aggregates all cash flows and ending NAVs in a sample to calculate a dollar-weighted return.(minimum 3 funds)b. Arithmetic mean averages the individual fund IRRs included in a vintage year. (minimum 3 funds)c. Median is the middle fund IRR of the group of individual fund IRRs included in a vintage year. (minimum 5 funds)d. Equal-weighted pooled return equally weights all cash flows and ending NAVs based on paid in capital to calculate a dollar-

weighted return. (minimum 3 funds)e. Upper/ lower quartile are the thresholds for the upper (top 25%) and lower (bottom 25%) quartiles based on the individual

fund IRRs included in a vintage year. Can be used in conjunction with the median to determine quartile placement. (minimum8 funds)

f. Standard deviation is measure of the dispersion of the individual returns. The calculation employs the standardmethodology for calculating a sample mean (not a population mean). (minimum 3 funds)

6. Realization ratio exhibits (TVPI, DPI, RVPI): CA has independently calculated the proper realization ratio for each fund in eachvintage year. Please note that each fund has been ranked within its respective vintage year by the corresponding realization ratio, asopposed to being ranked by IRR as they are ranked in the since inception IRR exhibit. As a result a fund's ranking within its vintageyear may change. For example, it is possible that a vintage year can have a different median fund when ranked by IRR vs. when rankedby TVPI, DPI or RVPI.

7. Cambridge Associates Modified Public Market Equivalent (mPME): The mPME calculation is a private-to-public comparison that seeks to replicate private investment performance under public market conditions. The public index’s shares are purchased and sold according to the private fund cash flow schedule, with distributions calculated in the same proportion as the private fund, and the mPME NAV (the value of the shares held by the public equivalent) is a function of mPME cash flows and public index returns. The mPME attempts to evaluate what return would have been earned had the dollars been deployed in the public markets instead of in private investments while avoiding the “negative NAV” issue inherent in some PME methodologies. “Value-Add” shows (in basis points) the difference between the actual private investment return and the mPME calculated return.

8. Exhibits detailing data for portfolio companies are grouped by year of the fund’s initial investment in a company, as opposed to vintageyear. Returns are gross returns.

Description of Performance Measurement Methodology (Continued)


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Copyright © 2015 by Cambridge Associates LLC. All rights reserved. Confidential.

This report may not be displayed, reproduced, distributed, transmitted, or used to create derivative works in any form, in whole or in portion, by any means, without written permission from Cambridge Associates LLC (“CA”). Copying of this publication is a violation of U.S. and global copyright laws (e.g., 17 U.S.C. 101 et seq.). Violators of this copyright may be subject to liability for substantial monetary damages. The information and material published in this report are confidential and non-transferable. Therefore, recipients may not disclose any information or material derived from this report to third parties, or use information or material from this report, without prior written authorization. This report is provided for informational purposes only. It is not intended to constitute an offer of securities of any of the issuers that may be described in the report. No part of this report is intended as a recommendation of any firm or any security, unless expressly stated otherwise. Nothing contained in this report should be construed as the provision of tax or legal advice. Past performance is not indicative of future performance. Any information or opinions provided in this report are as of the date of the report and CA is under no obligation to update the information or communicate that any updates have been made. Information contained herein may have been provided by third parties, including investment firms providing information on returns and assets under management, and may not have been independently verified. CA can neither assure nor accept responsibility for accuracy, but substantial legal liability may apply to misrepresentations of results made by a manager that are delivered to CA electronically, by wire, or through the mail. Managers may report returns to CA gross (before the deduction of management fees), net (after the deduction of management fees), or both.

Cambridge Associates, LLC is a Massachusetts limited liability company with offices in Arlington, VA; Boston, MA; Dallas, TX; and Menlo Park, CA. Cambridge Associates Fiduciary Trust, LLC is a New Hampshire limited liability company chartered to serve as a non-depository trust company, and is a wholly-owned subsidiary of Cambridge Associates, LLC. Cambridge Associates Limited is registered as a limited company in England and Wales No. 06135829 and is authorised and regulated by the Financial Conduct Authority in the conduct of Investment Business. Cambridge Associates Limited, LLC is a Massachusetts limited liability company with a branch office in Sydney, Australia (ARBN 109 366 654). Cambridge Associates Asia Pte Ltd is a Singapore corporation (Registration No. 200101063G). Cambridge Associates Investment Consultancy (Beijing) Ltd is a wholly owned subsidiary of Cambridge Associates, LLC and is registered with the Beijing Administration for Industry and Commerce (Registration No. 110000450174972).

U.S. Venture Capital Index® and Selected Benchmark Statistics · Data as of September 30, 2014 CA...

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