MoneyTree Report Q PricewaterhouseCoopers National Venture Capital Association. Data provided by Thomson Reuters

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1 PricewaterhouseCoopers National Venture Capital Association MoneyTree Report Data provided by Thomson Reuters Data provided by Thomson Reuters Technology Institute October 25 The MoneyTree results are in! This special report provides summary results for, Q2 25 and Q3 24. More detailed results can be found on the MoneyTree Report website at

2 Total equity investments into venture-backed companies Venture capitalists invested $6.3 billion in,7 deals in the third quarter of 25, according to the MoneyTree Report from PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA), based on data provided by Thomson Reuters. Total venture dollars deployed to startup companies for the quarter decreased 5 percent and total deal count was down percent compared to the second quarter when $7.3 billion was invested in,22 deals. The third quarter marks the seventh consecutive quarter of more than $ billion of venture capital invested in a single quarter. The $47.2 billion invested in the first three quarters of 25 is higher than each of the full year totals for 7 of the last 2 years. The top deals accounted for 9 percent of dollars invested in the third quarter, down from 24 percent of total venture capital deployed during the second quarter. Compared to the second quarter, the third quarter s top deals come from a more diverse range of industries. Whereas in the second quarter Software and Biotechnology companies dominated the top deals list, in the third quarter we also saw deals across more industries, including Media & Entertainment, Medical Devices & Equipment, IT Services and Industrial/Energy sectors. ($ in millions) All results rounded , 7,288 6,339 5,666 2, 3,97 3,542 9,,672,444 6, 6,526 8,278 7,57 7,528 6,338 7,59 6,744 7,39 6,46 7,35 8,25 8,676 3, 9,2,23,2 897,6 984,9 95,5,5,8,36,92,77,25,57,22,7 Q' Q2' Q3' Q4' Q'2 Q2'2 Q3'2 Q4'2 Q'3 Q2'3 Q3'3 Q4'3 Q'4 Q2'4 Q3'4 Q4'4 Q'5 Q2'5 Q3'5 Amount Invested 2 PwC

3 Investments by industry, Q2 25, and Q3 24 As has been the recent trend, the Software industry continues to receive the highest level of funding of all industries, receiving $5.8 billion going into 42 deals for the quarter, despite being down 2 percent in dollars and 7 percent in deals compared to the second quarter. Although the Biotechnology industry received the second largest amount of venture capital for the quarter, with $2 billion going into 2 deals, dollars invested and number of deals remained relatively flat over the previous quarter. Investments in the Life Sciences sector (Biotechnology and Medical Devices combined) during the third quarter accounted for $2.9 billion going into 94 deals, staying flat in dollars and slightly declining 3 percent in deals. Life Sciences company investments accounted for 8 percent of all venture capital deployed to the startup ecosystem in the third quarter. Media & Entertainment companies received the third largest amount of venture capital for the quarter with $.4 billion deployed across 9 deals, an 8 percent increase in dollars compared to the second quarter despite a 24 percent decline in number of deals. Two of the top megadeals (investments of $m or more) were within the Media & Entertainment space. Ten of the 7 MoneyTree industries experienced increases in dollars invested in the third quarter, including Retailing/Distribution (34 percent increase), Computers and Peripherals (82 percent increase), Healthcare Services (78 percent increase), and Semiconductors (24 percent increase). Venture capitalists invested $5 billion into 242 Internetspecific companies during the third quarter of 25, remaining flat in dollars and dropping 8 percent in deal count compared to the second quarter of 25 when $5. billion went into 294 deals. Internet-Specific is a discrete classification assigned to a company with a business model that is fundamentally dependent on the Internet, regardless of the company s primary industry category. MoneyTree Report 3

4 -, 2, 3, 4, 5, ($ in millions) All 6, results rounded 7, 8, Software ,848 5,826 7,33 Biotechnology ,64 2,62 2,73 Media and Entertainment ,433,2 2,8 IT Services ,42 Financial Services ,62 Consumer Products and Services ,66 2,632 Medical Devices and Equipment Industrial/Energy Healthcare Services Computers and Peripherals Q2 25 Q3 24 Semiconductors Retailing/Distribution Business Products and Services Telecommunications Electronics/Instrumentation Networking and Equipment Other Grand Total,7,22,77,444 6,339 7,288 Definitions of the Industry categories can be found on the MoneyTree website at 4 PwC

5 Investments by stage of development, Q2 25, and Q3 24 Dollars invested in Seed stage companies rose by 23 percent during the third quarter, totaling $24 million in 55 deals and representing only percent of all venture investment dollars for the quarter and 5 percent of all deals. Early stage investment declined 7 percent in dollars and 8 percent in deals with $5.4 billion going into 558 deals. Seed/Early stage deals accounted for 57 percent of total deal volume in the third quarter, compared to 54 percent in the prior quarter. The average Seed stage deal in the third quarter was $3.9 million, up from $3.6 million in the second quarter. The average Early stage deal in the second quarter was $9.7 million, up from $9.5 million in the prior quarter. billion and 257, respectively, from the previous quarter. Expansion stage deals accounted for 24 percent of all venture deals in the third quarter. The average Expansion stage deal was $24.7 million, up from $22.4 million in the second quarter. Investments in Later stage companies increased percent to $4.4 billion going into 2 deals in the third quarter. Later stage deals accounted for 9 percent of total deal volume for the quarter and remained relatively flat from the second quarter. The average Later stage deal in the third quarter was $22 million, up from $8. million in the prior quarter. Expansion stage investment was down 4 percent in dollars and 22 percent in deals for the quarter, at $6.3 -, 2, 3, 4, 5, 6, 7, 8, Seed stage Early stage ,32 5,388 5,774 Q2 25 Expansion stage ,67 6,344 7,35 Q3 24 Later stage ,5 3,989 4,393-5,, 5, Grand Total,7,22,77,444 6,339 7,288 Definitions of the Stage of Development categories can be found on the MoneyTree website at MoneyTree Report 5

6 Investments by sequence of financing, Q2 25, and Q3 24 First-time financing (companies receiving venture capital for the first time) dollars increased 7 percent to $2.5 billion in the third quarter as the number of deals declined by 3 percent to 372. First-time financings accounted for 5 percent of all dollars and 35 percent of all deals in the third quarter. Of the companies receiving venture capital funding for the first time in the third quarter, Software companies captured the largest share, accounting for 35 percent of the dollars and 37 percent of the deals with $878 million going into 39 deals. First-time funding in the Life Sciences sector during the third quarter was down 32 percent in dollars but up 4 percent in deals, dropping to $455 million going into 47 deals. The average first-time deal in the third quarter was $6.7 million, up from $6. million in the prior quarter. Seed/Early stage companies received the bulk of firsttime investments, capturing 66 percent of the dollars and 79 percent of the deals in the third quarter. First ,7 2,497 2,335 Q2 25 Q3 24 Follow-on ,734 3,843 4,953 Grand Total,7,22,77,444 6,339 7,288 Definitions of the Financing Sequence categories can be found on the MoneyTree website at 6 PwC

7 Investments by region, Q2 25, and Q3 24 Despite declining by 2 percent in dollars and percent in deals, Silicon Valley still received the highest level of funding for all regions in the third quarter of 25, with $7.9 billion going into 337 deals. New England received the second highest level of funding with $2. billion going into 25 deals, rising 39 percent in dollars from last quarter and declining percent in number of deals. New York Metro investments came in third, with a decrease of 24 percent in terms of dollars and 8 percent in deals with $.8 billion going into 29 deals. Nine of the 8 MoneyTree regions experienced increases in dollars invested in the third quarter. Silicon Valley New England NY Metro LA/Orange County Southeast Midwest Texas Northwest San Diego DC/Metroplex Philadelphia Metro Southwest North Central Colorado Upstate NY South Central Unknown Sacramento/N.Cal AK/HI/PR -, 2, 3, 4, 5, 6, 7, 8, 9,, ,33,399 2,,56,84 2,36,743 4,647 7,94 8,945 Q2 25 Q3 24 3, 6, 9, 2, 5, 8,,7 6,339 Grand Total,22,77,444 7,288 Definitions of the Region categories can be found on the MoneyTree website at MoneyTree Report 7

8 Most active venture investors Intel Capital Corp. had the most deals in the third quarter of 25, with a total of 25 deals. New Enterprise Associates, Inc. was a close second with 24 deals and Kleiner Perkins Caufield & Byers LLC followed right behind with 23 deals. Most active venture investors are those investors who participated in 9 or more deals in the third quarter of 25. Firm City Intel Capital Corp. Santa Clara, California 25 New Enterprise Associates, Inc. Menlo Park, California 24 Kleiner Perkins Caufield & Byers LLC Menlo Park, California 23 Accel Partners & Co., Inc. Palo Alto, California 6 Atlas Venture Cambridge, Massachusetts 5 Correlation Ventures LP San Diego, California 5 Ben Franklin Technology Partners Southeastern PA Philadelphia, Pennsylvania 4 Bessemer Venture Partners Larchmont, New York 4 Canaan Partners Menlo Park, California 4 Polaris Venture Partners Waltham, Massachusetts 4 Innovation Works, Inc. Pittsburgh, Pennsylvania 3 Khosla Ventures LLC Menlo Park, California 2 True Ventures Palo Alto, California 2 Andreessen Horowitz LLC Menlo Park, California Battery Ventures LP Boston, Massachusetts Sequoia Capital Menlo Park, California U.S. Venture Partners Menlo Park, California First Round Capital Philadelphia, Pennsylvania Founders Fund, The San Francisco, California Salesforce Ventures San Francisco, California 5 Startups, LP Mountain View, California 9 Google Ventures Mountain View, California 9 Institutional Venture Partners Menlo Park, California 9 Mercury Partners Management LLC Houston, Texas 9 8 PwC

9 pwcmoneytree.com PwC can help For a deeper discussion on these results, please contact one of our leaders: Thomas Ciccolella Venture Capital and Private Equity Assurance Partner thomas.ciccolella@pwc.com David Silverman Emerging Company Services Practice Co-leader david.silverman@pwc.com Greg Vlahos Life Sciences Partner greg.n.vlahos@pwc.com Danny Wallace Emerging Company Services Practice Co-leader danny.wallace@pwc.com Let s talk Please reach out to any of our technology leaders to discuss this or other challenges. We re here to help. Pierre-Alain Sur US Technology Industry Leader pierre-alain.sur@pwc.com Kevin Healy US Technology Assurance Leader kevin.healy@pwc.com Kayvan Shahabi US Technology Advisory Leader kayvan.shahabi@pwc.com Diane Baylor US Technology Tax Leader diane.baylor@pwc.com About PwC s Technology Institute The Technology Institute is PwC s global research network that studies the business of technology and the technology of business with the purpose of creating thought leadership that offers both fact-based analysis and experience-based perspectives. Technology Institute insights and viewpoints originate from active collaboration between our professionals across the globe and their first-hand experiences working in and with the Technology industry. PricewaterhouseCoopers and the National Venture Capital Association have taken responsible steps to ensure that the information contained in the MoneyTree Report has been obtained from reliable sources. However, neither of the parties nor Thomson Reuters can warrant the ultimate validity of the data obtained in this manner. Results are updated periodically. Therefore, all data is subject to change at any time. Before making any decision or taking any action, you should consult a competent professional advisor. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. pwc.com 25 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors