1. March 17, 2003

2. 2 Industry Update  Venture Capital Investment Activity Fund Raising Activity

3. 3 Venture Capital Investments $ Billions 1999 2000 20012002  2002 Investments At 1998 Annual Levels - $21 Billion From 1983-1994, $3.2 Billion per year was invested on a very constant annual basis

4. 4 Venture Capital Investments $ Billions  Seed/Early Stage investments for 2002 at $4 Billion or 1996-7 levels  Expansion/Late Stage investments 4 times Seed/Early Stage versus a more traditional 2 times

5. 5 Venture Capital Investments $ Billions

6. 6 Fund Raising Activity  Commitments to venture capital funds are down “Net” of Fund Reductions of $5.0 Billion in 2002, only $1.9 Billion was ra ised in 2002 From 1983-1993, $3.9 Billion Per Year was Raised $ Billions