1 National Venture Capital Association 2008 Predictions Survey All data embargoed until: December 17, 2007
2 NVCA 2008 Venture Capital Predictions Survey Second annual predictions survey Conducted in December 2007 More than 170 respondents Quotes and press release available – contact Emily Mendell ( )
3 Venture Investment
4 How much will venture capitalists invest in 2008? Mean = $26.8 billion Median = $27 billion Range: $18 – 43 billion Source: NVCA 2008 Predictions Survey
5 Of which single global investment region are you most leery? Source: NVCA 2008 Predictions Survey
6 Predictions for high growth investment sectors in 2008 Source: NVCA 2008 Predictions Survey
7 Predictions for moderate growth investment sectors in 2008 Source: NVCA 2008 Predictions Survey
8 Predictions for lower growth investment sectors in 2008 Source: NVCA 2008 Predictions Survey
9 Which single industry will be overvalued in 2008? Source: NVCA 2007 Predictions Survey
10 Which single industry will be undervalued in 2008? Source: NVCA 2008 Predictions Survey
11 Venture Exits
12 In 2008, the venture-backed U.S. IPO market will… Source: NVCA 2008 Predictions Survey 15 % faster pace than % slower pace to % equal pace to 2007
13 Which stock exchanges hold the most promise for growth for venture backed companies in 2008? Source: NVCA 2008 Predictions Survey
14 In 2008, transaction volume in the venture- backed M&A market will… Source: NVCA 2008 Predictions Survey
15 In 2008, transaction value in the venture- backed M&A market will… Source: NVCA 2008 Predictions Survey
16 Venture Fundraising
17 On average, venture capital funds raised in 2008 will be … Source: NVCA 2008 Predictions Survey
18 In 2008, we will see the number of venture capital firms… Source: NVCA 2008 Predictions Survey
19 Venture Performance
20 How will venture capital performance change over time? Short Term Returns (1-5 years) Long Term Returns (5-10 years) Source: NVCA 2008 Predictions Survey
21 US Economic and Political Predictions
22 How will the US economy trend in 2008? Source: NVCA 2008 Predictions Survey
23 Will the sub-prime credit woes be contained in 2008? Source: NVCA 2008 Predictions Survey
24 Where will the price of oil be in December 2008? Source: NVCA 2008 Predictions Survey
25 What will happen to the value of the US dollar in 2008? Source: NVCA 2008 Predictions Survey
26 Who will be sworn in as US president in January 2009? Source: NVCA 2008 Predictions Survey
27 Venture Capital Historical Data
28 VC Fundraising 1996 – 2007 (thru Q3) Source: VentureXpert™ Database by VE & NVCA
29 Venture Capital Investment 1995 – Q Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report; Data: Thomson Financial
30 Venture Exit Counts- IPOs and M&A by Year Source: Thomson Financial/National Venture Capital Association
31 Private Equity Returns As of 6/30/07 Source: Thomson Financial/National Venture Capital Association Fund Type 1yr 5 yr 10 yr 20 yr Early VC 8%-1%40%21% Balanced VC 25%6%18%14% Later VC 24%5%10%14% > All VC 18%3%21%16% Buyouts22%11%9%13% All PE 21%9%11%14% S&P %4%7%8% NASDAQ4%6%7%9%
32