MoneyTree™ Report Q2 2019 2 Executive summary Q2 2019 $100M+ deals continue to elevate US VC funding levels, with total funding on track to push records again. At the 2019 halfway point, US VC funding shows no signs of slowing: At the end of Q2, US VC funding was at $55B, well above the mid-point for 2018 ($48B), which ultimately saw a near-record $116B raised (compared to the record $120B in 2000). $100M mega-rounds drive funding higher: Driving the trend toward bigger deals, US companies raised a record quarterly number of $100M+ VC rounds in Q2, with 64 mega-rounds accounting for nearly half of all funding raised. Seed rounds fluctuate to lowest activity in six years: After rebounding last quarter, Seed activity dropped below levels last seen in Q1’14. US produces 19 new unicorns: 19 US VC-backed companies saw their valuations rise to $1B+, nearing the record set in Q4’18 of 22 new unicorns. Q2 2019 funding across North America, Asia, and Europe remains relatively flat. North America, Asia, and Europe combined funding hits $53B: Total annual VC funding decreased by 2% from Q1 2019 totals. Deal activity increased by 2%, to 3,474 transactions. Asia deal activity retreats behind North America: While Asia came close to surpassing North America’s deal activity in Q3 2018, the region’s deal activity has since declined by 24% from Q3’18 to Q2’19. San Francisco Bay Area deal activity rebounds: After 3 consecutive quarters of decline, deal activity increased 17% to 438 transactions in Q2 2019. After record quarterly funding of $25B in Q3 2018, dollar funding has since stabilized to $13B. New York Metro sees slight decline in deal and dollar funding activity: After deal activity rebounded by 29% in Q1 2019, it declined by 8% in Q2 2019 to 212 transactions. Similarly, dollar funding declined by 9% in Q2 2019. Geographic Insights US Insights Source: PwC / CB Insights MoneyTree™ Report Q2 2019 3 1,587 1,465 1,573 1,683 1,484 1,378 1,362 1,409 20.7 20.2 23.1 24.6 29.3 39.0 26.1 28.7 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q2 investments rise after fall from funding record set in Q4’18 US deals and dollars – Quarterly Record funding (all-time) Investments ($B) # of deals Source: PwC / CB Insights MoneyTree™ Report Q2 2019 4 8,314 1,892 3,423 6,268 6,118 2,771 2019 YTD US funding is strong US deals and dollars – Annual 2010 2005 2000 2015 2019 YTD $120 $55 Record funding (all-time) Investments ($B) # of deals $116 Record funding (this century) Source: PwC / CB Insights MoneyTree™ Report Q2 2019 5 2019 records the largest first half this century US funding – Quarterly seasonality $8.2 $12.3 $18.9 $16.6 $16.0 $23.1 $26.1 $9.0 $16.9 $20.8 $18.6 $19.7 $24.6 $28.7 $9.1 $14.0 $20.8 $15.8 $20.7 $29.3 $10.1 $17.5 $17.6 $12.1 $20.2 $39.0 Record annual funding (this century) Record first half funding (this century) Q3 Q2 Q1 Q4 Total Investments ($B): 2017 2016 2015 2014 2013 2018 2019 YTD $36.4 $116.0 $76.6 $63.1 $78.1 $60.7 $54.8 Source: PwC / CB Insights MoneyTree™ Report Q2 2019 6 Seed deal activity fluctuated down to its lowest level in six years Deal activity by round Note: All deals include additional round types 1,247 All deals 554 105 70 330 SeriesA 113 Series C 60 Series E+ 1,183 364 Seed 292 Q1 2019 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Source: PwC / CB Insights MoneyTree™ Report Q2 2019 7 SeriesA $8.0M $2.0M $2.2M Seed Overall median deal size jumped 26% to $7.6M from Q1’19 Median deal size by round Overall $7.6M $26.3M Series C $0.6M $3.8M $9.0M Note: Overall median includes additional round types Q1 2019 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Source: PwC / CB Insights MoneyTree™ Report Q2 2019 8 31 35 33 48 55 51 48 64 Q2’19 saw a record number of $100M+ funding rounds Mega-rounds – Investments and deal counts $8.2 $7.6 $7.9 $8.2 $14.6 $24.7 $11.9 $13.4 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Record mega-rounds (all-time) Record mega-round investments (all-time) Mega-round investments ($B) # of Mega-rounds Note: Mega-rounds are $100M deals or larger Source: PwC / CB Insights MoneyTree™ Report Q2 2019 9 40% 38% 34% 33% 50% 63% 46% 47% Mega-rounds maintain a high percentage of all deals Mega-rounds – Funding and share of deals $8.2 $7.6 $7.9 $8.2 $14.6 $24.7 $11.9 $13.4 $11.5 $12.5 $12.3 $12.3 $14.7 $15.8 $13.9 $13.2 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Record mega-round share (all-time) Mega-round investments ($B) Non mega-round investments ($B) Mega-round share Note: Mega-rounds are $100M deals or larger Source: PwC / CB Insights MoneyTree™ Report Q2 2019 10 US $100M+ rounds are on track to set records again Mega-rounds – Quarterly seasonality $1.2 $2.9 $6.9 $4.3 $4.4 $7.9 $11.9 $0.9 $4.4 $7.3 $7.4 $7.0 $8.2 $13.4 $0.8 $3.5 $7.8 $4.9 $8.2 $14.6 $1.2 $6.9 $6.2 $2.1 $7.6 $24.7 2013 2014 2015 2016 2017 2018 2019 YTD Record annual mega-round funding (all-time) Record quarterly mega-round funding (all-time) $4.1 $55.4 $27.2 $18.7 $28.2 $17.7 $25.3 Q3 Q2 Q1 Q4 Total Investments ($B): Note: Mega-rounds are $100M deals or larger Source: PwC / CB Insights MoneyTree™ Report Q2 2019 11 Sector Deals Funding 1 Internet $12.0B 2 Healthcare $4.6B 3 Mobile & Telecommunications $3.1B 4 Software (non-internet/mobile) $2.7B 5 Consumer Products & Services $.7B 52 132 167 221 620 Internet companies raised the most funding rounds of any sector Deals and dollars – US sectors Source: PwC / CB Insights MoneyTree™ Report Q2 2019 12 Q2 2019 saw one $1B+ funding round (13th largest of all time) Largest US deals of Q2 2019 Company Investment Round Select investors Vertical 1 Cruise Automation San Francisco, CA $1.15B Corporate Minority General Motors Automotive & Transportation 2 DoorDash San Francisco, CA $600M Series E+ Coatue Management, Darsana Capital Partners, Dragoneer Investment Group Internet 2 UiPath New York, NY $600M Series D+ Accel, capitalG, Coatue Management, Dragoneer Investment Group Software 3 SpaceX Hawthorne, CA $536M Other Undisclosed Industrial 4 SoFi San Francisco, CA $500M Series E+ Marketplace Funds, Qatar Investment Authority, Third Point Ventures Internet 4 Uber San Francisco, CA $500M Corporate Minority PayPal Mobile & Telecommunications Source: PwC / CB Insights MoneyTree™ Report Q2 2019 13 Company Funding Vertical Emerging areas Select investors 1 Juul Labs San Francisco, CA $13.6B Consumer Products & Services Consumer Hardware Coatue Management, D1 Capital Partners, Tiger Global Management 2 WeWork New York, NY $6.6B Business Product & Services Co-Working & Co-Living Spaces T. Rowe Price, Benchmark Capital, Softbank Group 3 Airbnb San Francisco, CA $3.4B Internet E-Commerce On-Demand Sequoia Capital, Andreessen Horowitz, Greylock Partners, General Catalyst 4 SpaceX Hawthorne, CA $2.7B Industrial Aerospace & Defense Space Tech Founders Fund, Threshold Ventures, Fidelity Investments, Google 5 Magic Leap Plantation, FL $2.6B Software (non-internet/mobile) Scientific, Engineering Software AR/VR Alibaba Group, Fidelity Investments, Google Juul moves into the #1 spot following Uber’s IPO Top 5 funded US companies – Q2 2019 Source: PwC / CB Insights MoneyTree™ Report Q2 2019 14 Q2’19 saw new US unicorns at near-record levels Unicorns – New US VC-backed unicorns by quarter 8 7 7 8 19 22 16 19 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Record new unicorns (all-time) Note: Unicorns are startups valued at $1B or more US VC-backed unicorn births Source: PwC / CB Insights MoneyTree™ Report Q2 2019 15 Record population (all-time) Unicorn population remains at record level, despite recent exits US unicorn population 108 111 114 114 127 143 157 167 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Unicorn population count Note: Unicorns are startups valued at $1B or more Source: PwC / CB Insights MoneyTree™ Report Q2 2019 16 Record aggregate unicorn valuation (all-time) Unicorn valuations ($B) $376.9 $378.8 $402.9 $412.3 $473.3 $575.6 $603.3 $552.9 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Total value of US unicorns fell from record highs in Q1’19 Unicorns – US aggregate unicorn valuation Note: Unicorns are startups valued at $1B or more Source: PwC / CB Insights MoneyTree™ Report Q2 2019 17 Company Valuation Vertical Emerging areas Select investors 1 Juul Labs San Francisco, CA $50.0B Consumer Products & Services Consumer Electronics Consumer Hardware Coatue Management, D1 Capital Partners, Tiger Global Management 2 WeWork New York, NY $47.0B Business Product & Services Co-Working & Co-Living Spaces T. Rowe Price, Benchmark Capital, Softbank Group 3 Airbnb San Francisco, CA $29.3B Internet On-Demand General Catalyst Partners,Andreessen Horowitz, ENIAC Ventures 4 Stripe San Francisco, CA $22.5B Internet Fin Tech Khosla Ventures, Lowercase Capital, capitalG 5 SpaceX Hawthorne, CA $18.5B Industrial Aerospace & Defense Space Tech Founders Fund, Threshold Ventures, Fidelity Investments, Google Juul replaces Uber as the most highly valued VC-backed company Top 5 highest valued US unicorns — Q2 2019 Note: Unicorns are startups valued at $1B or more Source: PwC / CB Insights MoneyTree™ Report Q2 2019 18 7.9 6.7 6.6 6.8 6.2 7.1 6.3 7.5 149 157 165 179 162 183 162 163 Q3‘17 Q4‘17 Q1‘18 Q2‘18 Q3‘18 Q4‘18 Q1'19 Q2'19 Time-to-liquidation reaches highest level since Q3 2017 US M&A exits — Quarterly Note: Median years to liquidate from first funding Record exits (all-time) M&A exits Years Source: PwC / CB Insights MoneyTree™ Report Q2 2019 19 11 24 13 32 25 16 15 33 Q3‘17 Q4‘17 Q1‘18 Q2‘18 Q3‘18 Q4‘18 Q1'19 Q2'19 5.8 8.8 4.5 6.7 7.1 7.4 5.4 7.3 9th fastest (this century) 8th highest (ever) IPO activity Years to IPO US IPO exits reach 8-quarter record in Q2’19 US IPOs — Quarterly Note: Median years to liquidate from first funding Source: PwC / CB Insights MoneyTree™ Report Q2 2019 20 7.9 6.7 6.6 6.8 6.2 7.1 6.3 7.5 5.8 8.8 4.5 6.7 7.1 7.4 5.4 7.3 Q3 ‘17 Q4 ‘17 Q1 ‘18 Q2 ‘18 Q3 ‘18 Q4 ‘18 Q1'19 Q2'19 Time-to-liquidation converges for M&A and IPO exits M&A exits and IPOs combined — Time-to-liquidation Years to M&A Years to IPO Note: Median years to liquidate from first funding Source: PwC / CB Insights MoneyTree™ Report Q2 2019 21 149 157 165 179 162 183 162 163 11 24 13 32 25 16 15 33 Q1’18 Q2’18 Q3’18 Q4’17 Q3’17 Q1’19 Q4’18 Q2’19 Q2’19 M&A exits nearly flat, but IPOs more than double from Q1 M&A exits and IPOs combined — Number of exits IPO exits M&A exits Source: PwC / CB Insights MoneyTree™ Report Q2 2019 22 Internet and Healthcare sectors dominate the top deals Top 5 M&A exits of Q2 2019 Company Last round Valuation Verticals Select prior investors Buyer 1 Looker Santa Cruz, CA Series E $2.6B Internet Redpoint Ventures, Goldman Sachs, First Round Capital Google 2 Peloton Therapeutics Dallas, TX Series E $2.2B Healthcare BVF Partners, Foresite Capital, Nextech Invest Merck & Co. 3 Harry’s Razor Company New York, NY Series D $1.4B Internet Tiger Global Management, Thrive Capital, Temasek Holdings Edgewell Personal Care Co. 4 Kyriba San Diego, CA Series E $1.2B Internet Upfront Ventures, Iris Capital, HSBC Venture Capital Bridgepoint 5 Paragon Bioservices Baltimore, MD Series B $1.2B Healthcare Camden Partners, NewSpring Holdings Catalent Source: PwC / CB Insights MoneyTree™ Report Q2 2019 23 San Francisco Bay Area sees continued surge of top IPOs Top 5 IPOs of Q2 2019 Company Last round Valuation Verticals Select prior investors 1 Uber San Francisco, CA Corporate Minority $75.5B Mobile & Telecommunications SoftBank Group, DiDi Chuxing, Barclays Bank, Citigroup, Goldman Sachs 2 Slack Technologies San Francisco, CA Series H $15.7B Internet Atlassian, Accel, GGV Capital, Comcast Ventures, Index Ventures 3 Pinterest San Francisco, CA Series H $12.7B Internet Andreessen Horowitz, Bessemer Venture Partners, FirstMark Capital 4 Zoom Video Communications San Jose, CA Series D $9.2B Internet Sequoia Capital, Emergence Capital, Qualcomm Ventures 5 Adaptive Biotechnologies Seattle, WA Corporate Minority $2.4B Healthcare Labcorp, Viking Global Investors, Tiger Management Corp 24 Source: PwC / CB Insights MoneyTree™ Report Q2 2019 Three top metros raise notably more rounds in Q2’19 Top 10 Metros by deal activity #1 San Jose-San Francisco-Oakland, CA #2 New York-Newark, NY-NJ-CT-PA #3 Boston-Worcester-Providence, MA-RI-NH-CT #4 Los-Angeles-Long Beach, CA #5 Seattle-Tacoma, WA #6 Denver-Aurora, CO #7 Austin-Round Rock, TX #8 Washington-Baltimore-Arlington, DC-MD-VA-WV-PA #9 San Diego-Carlsbad, CA #10 Chicago-Naperville, IL-IN-WI 25 Source: PwC / CB Insights MoneyTree™ Report Q2 2019 Eight top metros raise more capital in Q2’19 Top 10 Metros by investments #1 San Jose-San Francisco-Oakland, CA #2 New York-Newark, NY-NJ-CT-PA #3 Boston-Worcester-Providence, MA-RI-NH-CT #4 Los-Angeles-Long Beach, CA #5 San Diego-Carlsbad, CA #6 Seattle-Tacoma, WA #7 Chicago-Naperville, IL-IN-WI #8 Salt Lake City-Provo-Orem, UT #9 Denver-Aurora, CO #10 Raleigh-Durham-Chapel Hill, NC Source: PwC / CB Insights MoneyTree™ Report Q2 2019 26 120 103 119 115 102 105 74 87 $1.3 $0.9 $1.8 $1.7 $0.6 $2.0 $1.6 $1.6 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Investments ($B) # of Deals Quarterly deals rebound after sharp decline LA Metro deals and dollars – Quarterly Source: PwC / CB Insights MoneyTree™ Report Q2 2019 27 One mega-round eclipses other top LA deals Top 5 LA Metro deals Company Investment Round Select investors Vertical 1 SpaceX Hawthorne, CA $536M N/A N/A Industrial 2 Virgin Hyperloop One Los Angeles, CA $172M Series C DP World Automotive & Transportation 3 Restaurant365 Irvine, CA $88M Series C Bessemer Venture Partners, Tiger Global Management Internet 4 VideoAmp Los Angeles, CA $70M Series C Ankona Capital, The Raine Group Internet 5 Criteria Corp West Hollywood, CA $56M Private Equity Sumeru Equity Partners Internet Source: PwC / CB Insights MoneyTree™ Report Q2 2019 28 483 449 528 514 441 419 374 438 $6.6 $8.8 $10.9 $10.2 $14.0 $25.3 $12.2 $13.7 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Investments ($B) # of Deals Deals rebound after three consecutive quarters of decline San Francisco Bay Area deals and dollars – Quarterly Source: PwC / CB Insights MoneyTree™ Report Q2 2019 29 Rounds over $500M dominate top deals Top 5 San Francisco Bay Area deals Company Investment Round Select investors Vertical 1 Cruise Automation San Francisco, CA $1.2B Corporate Minority General Motors, SoftBank Group, T.Rowe Price Automotive & Transportation 2 DoorDash San Francisco, CA $600M Series G SoftBank Group, Sequoia Capital, Temasek Holdings Internet 3 SoFi San Francisco, CA $500M Series G Third Point Ventures, Qatar Investment Authority Internet 4 Uber San Francisco, CA $500M Corporate Minority PayPal Mobile & Telecommunications 5 PAX San Francisco, CA $420M Series E Tiger Global Management, Tao Capital Partners, Redmile Group Consumer Products & Services Source: PwC / CB Insights MoneyTree™ Report Q2 2019 30 239 233 229 241 203 178 230 212 $4.7 $3.1 $2.7 $3.0 $5.9 $2.2 $4.5 $4.1 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Investments ($B) # of Deals Q2’19 deals and dollars decline slightly compared to Q1 New York Metro deals and dollars – Quarterly Source: PwC / CB Insights MoneyTree™ Report Q2 2019 31 Internet, software, and mobile continue to outpace other sectors Top New York Metro deals Company Investment Round Select investors Vertical 1 UiPath New York, NY $568M Series D Accel, capitalG, Sequoia Capital Software (non-internet / mobile) 2 Gympass New York, NY $300M Series D Atomico, General Atlantic, SoftBank Group Internet 3 Lemonade New York, NY $300M Series D Allianz X, General Catalyst, Google Ventures Internet 4 Foursquare New York, NY $150M Series G The Raine Group Mobile & Telecommunications 5 SpringWorks Therapeutics Stamford, CT $125M Series B Bain Capital, GlaxoSmithKline, OrbiMed Advisors Healthcare Source: PwC / CB Insights MoneyTree™ Report Q2 2019 32 35 38 27 40 27 34 23 39 $574.6 $296.5 $392.5 $589.6 $924.8 $741.6 $296.3 $805.8 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Investments ($M) # of Deals San Diego metro deals and dollars jump in Q2’19 San Diego Metro deals and dollars – Quarterly Source: PwC / CB Insights MoneyTree™ Report Q2 2019 33 Healthcare startups dominate San Diego top deals Top San Diego Metro deals Company Investment Round Select investors Vertical 1 Poseida Therapeutics San Diego, CA $142M Series C Novartis, Aisling Capital, Vivo Capital Healthcare 2 TuSimple San Diego, CA $105M Series D CDH Investments, Sina Weibo Fund Software 3 Acutus Medical Carlsbad, CA $100M Series D 8VC, Advent Venture Partners, GE Ventures Healthcare 4 Vividion Therapeutics San Diego, CA $82M Series B ARCH Venture Partners, Versant Ventures, BVF Partners Healthcare 5 Locana San Diego, CA $55M Series A ARCH Venture Partners, Google Ventures, Temasek Holdings Healthcare 5 Tealium San Diego, CA $55M Series F Presidio Ventures, Bain Capital Ventures, Silver Lake Partners Internet Source: PwC / CB Insights MoneyTree™ Report Q2 2019 34 53 40 39 61 45 37 46 45 $691.0 $326.5 $351.0 $811.7 $656.6 $227.1 $473.7 $668.1 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Investments ($M) # of Deals Seattle funding jumps, deals down slightly in Q2’19 Seattle Metro deals and dollars – Quarterly Source: PwC / CB Insights MoneyTree™ Report Q2 2019 35 Seattle-based startups raise two $100M+ deals in Q2’19 Top Seattle Metro deals Company Investment Round Select investors Vertical 1 Outreach Seattle, WA $114M Series E DFJ Growth Fund, Sapphire Ventures, Spark Capital Internet 2 Auth0 Bellevue, WA $103M Series E Bessemer Venture Partners, K9 Ventures, Trinity Ventures Internet 3 Highspot Seattle, WA $60M Series D ICONIQ Capital, Sapphire Ventures, Shasta Ventures Internet 4 Zenoti Bellevue, WA $50M Series C Accel, Norwest Venture Partners, Tiger Global Management Internet 5 Flexe Seattle, WA $43M Series B Madrona Venture Group, Redpoint Ventures, Tiger Global Management Internet 36 Source: PwC / CB Insights MoneyTree™ Report Q2 2019 California and Washington materially increased deals in Q2’19 Top 10 States by deal activity #1 California #5 Washington 37 Source: PwC / CB Insights MoneyTree™ Report Q2 2019 Seven top states raise more capital in Q2’19 Top 10 States by investments #1 California #5 Washington #4 Florida #7 Illinois #8 Colorado #9 Utah #10 North Carolina Source: PwC / CB Insights MoneyTree™ Report Q2 2019 38 650 595 681 688 583 565 485 576 $8.5 $10.1 $13.1 $12.8 $15.8 $28.1 $14.3 $16.2 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Investments ($B) # of Deals California deal activity and funding jump in Q2’19 California deals and dollars – Quarterly Source: PwC / CB Insights MoneyTree™ Report Q2 2019 39 15 29 21 24 28 24 21 22 $1,054.0 $601.4 $510.3 $119.0 $230.5 $214.0 $161.1 $742.6 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Investments ($M) # of Deals Florida funding rises sharply in Q2’19 Florida deals and dollars – Quarterly Source: PwC / CB Insights MoneyTree™ Report Q2 2019 40 53 40 39 62 45 40 47 52 $691.0 $326.5 $351.0 $823.7 $656.6 $280.4 $473.7 $733.1 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Investments ($M) # of Deals WA deal activity and funding rise for the second-straight quarter Washington deals and dollars – Quarterly 41 Source: PwC / CB Insights MoneyTree™ Report Q2 2019 Startups selling Internet SaaS solutions dominate deal activity Top 10 Verticals by deal activity #1 Healthcare > Biotechnology #2 Internet > SaaS > Monitoring & Security #3 Internet > SaaS > BI, Analytics & Performance Mgmt #3 Internet > eCommerce > Marketplace #5 Internet > SaaS > Advertising, Sales & Marketing #5 Internet > SaaS > Customer Relationship #7 Internet > SaaS > HR & Workforce Management #8 Internet > SaaS > Accounting & Finance #9 Internet > SaaS > Healthcare #10 Healthcare > Drug Development 42 Source: PwC / CB Insights MoneyTree™ Report Q2 2019 Biotechnology, Drug Development and BI persist as top verticals Top 10 Verticals by investments #1 Healthcare > Biotechnology #2 On Premise Software > Scientific, Engineering Software #3 Automotive & Transportation > Automobile Parts #4 Internet > SaaS > Monitoring & Security #5 Internet > SaaS > Accounting & Finance #6 Internet > eCommerce > Marketplace #7 Healthcare > Drug Development #8 Internet > eCommerce > Food & Grocery #9 Internet > SaaS > BI, Analytics & Performance Mgmt #10 Industrial > Aerospace & Defense Source: PwC / CB Insights MoneyTree™ Report Q2 2019 43 72 55 68 77 71 54 51 70 $1.2 $1.6 $2.1 $2.1 $2.2 $1.1 $1.3 $1.9 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Investments ($B) # of Deals Biotech deal activity rises sharply in Q2’19 Healthcare Biotechnology deals and dollars – Quarterly Source: PwC / CB Insights MoneyTree™ Report Q2 2019 44 23 35 23 39 32 27 31 30 $629 $1,412 $1,098 $1,312 $903 $1,056 $953 $948 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Investments ($M) # of Deals Drug Development financing declines slightly in Q2’19 Healthcare Drug Development deals and dollars – Quarterly Source: PwC / CB Insights MoneyTree™ Report Q2 2019 45 53 52 57 57 66 54 41 40 $563 $517 $516 $1,461 $857 $875 $444 $665 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Investments ($M) # of Deals Cloud BI funding rebounds after declining three straight quarters Internet Business Intelligence Software deals and dollars – Quarterly 46 Source: PwC / CB Insights MoneyTree™ Report Q2 2019 Fin Tech and AI tie for the most deals this quarter Top 10 Emerging Areas by deal activity #1 Fin Tech #1 AI 47 Source: PwC / CB Insights MoneyTree™ Report Q2 2019 Fin Tech continues to raise the most money with AI close behind Top 10 Emerging Areas by investments #1 Fin Tech #2 AI Source: PwC / CB Insights MoneyTree™ Report Q2 2019 48 158 131 156 153 119 111 128 139 $1.5 $1.8 $2.1 $2.6 $2.8 $2.6 $2.7 $4.9 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Investments ($B) # of Deals AI-related financing increases for the second-straight quarter Artificial Intelligence deals and dollars – Quarterly Source: PwC / CB Insights MoneyTree™ Report Q2 2019 49 The AI sector saw one $1B+ deal in Q2’19 Top Artificial Intelligence deals Company Investment Round Select investors Vertical 1 Cruise Automation San Francisco, CA $1.15B Corporate Minority General Motors, Honda, SoftBank Group Automotive & Transportation 2 UiPath New York, NY $568M Series D Accel, capital, Coatue Management, Dragoneer Investment Group Software 3 Lemonade New York, NY $300M Series D Allianz X, General Catalyst, Google Ventures Internet 4 Afirm San Francisco, CA $300M Series E+ Baillie Gifford & Co. Fidelity Investments, Founders Fund Mobile & Telecommunications 5 Tempus Chicago, IL $200M Series E+ Baillie Gifford & Co., Franklin Templeton Investments, New Enterprise Associates Healthcare Source: PwC / CB Insights MoneyTree™ Report Q2 2019 50 164 161 217 180 174 158 177 139 $2.3 $2.5 $2.5 $3.4 $3.0 $3.5 $3.6 $5.1 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Investments ($B) # of Deals Fin Tech-related deals fall amid rise in funding Fin Tech deals and dollars – Quarterly Source: PwC / CB Insights MoneyTree™ Report Q2 2019 51 Top 5 Fin Tech deals all $300M and higher Top Fin Tech deals Company Investment Round Select investors Vertical 1 UiPath New York, NY $568M Series D Accel, capital, Coatue Management, Dragoneer Investment Group Software 2 SoFi San Francisco, CA $500M Series E+ Marketplace Funds, Qatar Investment Authority, Third Point Ventures Internet 3 Carta Palo Alto, CA $300M Series E+ Andreessen Horowitz, Goldman Sachs, Principal Strategic Investments Internet 4 Lemonade New York, NY $300M Series D Allianz X, General Catalyst, Google Ventures Internet 5 Affirm San Francisco, CA $300M Series E+ Baillie Gifford & Co. Fidelity Investments, Founders Fund Mobile & Telecommunications Source: PwC / CB Insights MoneyTree™ Report Q2 2019 52 71 60 71 73 56 52 68 56 $1.1 $0.8 $0.6 $1.7 $1.1 $1.1 $1.8 $2.1 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Investments ($B) # of Deals Cybersecurity deals fall amid slight rise in funding in Q2’19 Cybersecurity deals and dollars – Quarterly Source: PwC / CB Insights MoneyTree™ Report Q2 2019 53 Cybersecurity companies saw multiple $100M+ deals in Q2’19 Top Cybersecurity deals Company Investment Round Select investors Vertical 1 KnowBe4 Clearwater, FL $300M Series D Elephant Venture Capital, KKR, Ten Eleven Ventures Internet 2 Digital Guardian Waltham, MA $154M Series E+ Fairhaven Capital, LLR Partners, Neocarta Ventures Software (non-internet/mobile) 3 Druva Sunnyvale, CA $130M Series E+ Atreides Management, Neuberger Berman, Nexus Venture Partners Internet 4 SentinelOne Mountain View, CA $120M Series D Data Collective, Granite Hill Capital Partners, Insight Partners Computer Hardware & Services 5 Dashlane New York, NY $110M Series D Balderton Capital, Bessemer Venture Partners, FirstMark Capital Internet Source: PwC / CB Insights MoneyTree™ Report Q2 2019 54 129 99 117 164 127 93 105 130 $1.2 $1.3 $1.9 $1.9 $2.7 $1.9 $1.4 $2.3 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Investments ($B) # of Deals Digital Health sector deals and dollars jumped in Q2’19 Digital Health deals and dollars – Quarterly Source: PwC / CB Insights MoneyTree™ Report Q2 2019 55 Digital health startups raised multiple $100M+ rounds in Q2 Top Digital Health deals Company Investment Round Select investors Vertical 1 Collective Health San Francisco, CA $205M Series E+ DFJ Growth Fund, Founders Fund, Google Ventures Financial 2 Tempus Chicago, IL $200M Series E+ Baillie Gifford & Co., Franklin Templeton Investments, New Enterprise Associates Healthcare 3 Encoded Therapeutics San Francisco, CA $104M Series C Alexandria Venture Investments, Altitude Life Science Ventures, ARCH Venture Partners Healthcare 4 BHE Boston, MA $78M Growth Equity Leerink Transformation Partners, Silversmith Capital Partners Software (non-internet/mobile) 5 Omada Health San Francisco, CA $73M Series E+ Andreessen Horowitz, Cigna Ventures, Civilization Ventures Internet Source: PwC / CB Insights MoneyTree™ Report Q2 2019 56 Investor Funds raised (2015–Q2’19) Year founded Select investments Location 1 Sequoia Capital* $17.5B 1972 DoorDash, Noom, Klarna Menlo Park, CA 2 Insight Partners $12.5B 1995 SalesLoft, ezCater, Checkout.com New York, NY 3 Andreessen Horowitz $9.7B 2009 TripActions, ADDI, People.ai Menlo Park, CA 4 Summit Partners $9.1B 1984 Red Canary, Klaviyo Boston, MA 5 New Enterprise Associates $6.5B 1977 Collective Health, Tempus Menlo Park, CA The top 5 VCs have raised over $55B since 2015 Top VCs by amount raised Note: includes all funds under the Sequoia Capital umbrella Source: PwC / CB Insights MoneyTree™ Report Q2 2019 57 Only one top 5 VC is focused on seed-stage deals Most active VCs in Q2 2019 Investor Deals Select investments Location 1 New Enterprise Associates 28 Coursera, Collective Health, Expel Menlo Park, CA 2 Plug and Play Ventures 24 Zippia, Datch, Back Office Sunnyvale, CA 3 Lightspeed Venture Partners 19 People.ai, BetterUp, Affirm Menlo Park, CA 4 Google Ventures 19 Harness, Lemonade, Hover Mountain View, CA 5 Kleiner Perkins 17 Nextdoor, Feather, Labelbox Menlo Park, CA Source: PwC / CB Insights MoneyTree™ Report Q2 2019 58 1,691 1,552 1,698 1,810 1,596 1,475 1,468 1,519 1,032 1,139 1,166 1,540 1,537 1,259 1,181 1,169 750 747 758 784 718 779 759 786 Q3‘17 Q4‘17 Q1‘18 Q2‘18 Q3‘18 Q4‘18 Q1‘19 Q2‘19 North American deal activity pulls firmly ahead of Asia Global deal activity: North America, Asia, and Europe # of deals: North America Asia Europe Source: PwC / CB Insights MoneyTree™ Report Q2 2019 59 $22 $21 $24 $26 $30 $40 $27 $30 $20 $23 $20 $22 $20 $22 $19 $15 $6 $5 $5 $6 $5 $5 $8 $8 Q3‘17 Q4‘17 Q1‘18 Q2‘18 Q3‘18 Q4‘18 Q1'19 Q2'19 North America maintains dollar funding lead over Asia Global dollar funding: North America, Asia, and Europe Investments ($B): Europe Asia North America Source: PwC / CB Insights MoneyTree™ Report Q2 2019 60 SoftBank Group leads the world’s largest deals Largest global deals of Q2 2019 Company Investment Round Select investors Vertical 1 Cruise Automation San Francisco, USA $1.15B Corporate Minority General Motors, Honda, SoftBank Group Automotive & Transportation 2 Rappi Bogota, Colombia $1.00B Corporate Minority SoftBank Group Mobile & Telecommunications 3 Greensill London, UK $800M Corporate Minority SoftBank Group Financial 4 Face++ Beijing, China $750M Series D Alibaba Group, Macquarie Group Software (non-internet/mobile) 5 DoorDash San Francisco, USA $600M Series G Coatue Management, SoftBank Group, DST Global Internet Appendix PwC / CB Insights MoneyTree™ Report Q2 2019 Source: PwC / CB Insights MoneyTree™ Report Q2 2019 62 US States: Full listing of Q2 2019 deals and investments State $M Deals State $M Deals State $M Deals State $M Deals Alabama 8 2 Illinois 490 36 Missouri 42 11 Pennsylvania 204 25 Arizona 177 15 Indiana 37 13 Nebraska 2 1 South Carolina 24 5 California 16,227 576 Kansas 25 1 Nevada 4 2 Tennessee 86 10 Colorado 402 45 Kentucky 107 5 New Jersey 86 11 Texas 687 72 Connecticut 154 10 Louisiana 8 1 New Mexico 185 6 Utah 402 20 DC 57 6 Maine 102 2 New York 3,883 203 Virginia 131 23 Delaware 93 3 Maryland 224 21 North Carolina 381 19 Washington 733 52 Florida 743 22 Massachusetts 2,207 112 Ohio 131 11 Wisconsin 69 12 Georgia 208 20 Michigan 268 9 Oklahoma 4 1 Hawaii NA 1 Minnesota 47 12 Oregon 50 7 63 What is included: • Equity financings into emerging companies. Fundings must be to VC-backed companies, which are defined as companies that have received funding at any point from either: venture capital firms, corporate venture arms, or super angel investors. • Fundings of private companies only. Funding rounds raised by public companies of any kind on any exchange (including Pink Sheets) are excluded from our numbers, even if they received investment by a venture firm(s). • Only includes the investment made in the quarter for tranched investments. If a company does a second closing of its Series B round for $5M and previously had closed $2M in a prior quarter, only the $5M is reflected in our results. • Round numbers reflect what has closed, not what is intended. If a company indicates the closing of $5M out of a desired raise of $15M, our numbers reflect only the amount which has closed. • Only verifiable fundings are included. Fundings are verified via (1) various federal and state regulatory filings; (2) direct confirmation with firm or investor; (3) press release; or (4) credible media sources. • Equity fundings to joint ventures and spinoffs/spinouts are included, given that they meet the VC-backed criteria. • Geography note: Israel funding figures are classified inAsia. What is excluded: • No contingent funding. If a company receives a commitment for $20M subject to hitting certain milestones but first gets $8M, only the $8M is included in our data. • No business development/R&D arrangements, whether transferable into equity now, later or never. If a company signs a $300M R&D partnership with a larger corporation, this is not equity financing nor is it from venture capital firms. As a result, it is not included. • No buyouts, consolidations or recapitalizations. All three of these transaction types are commonly employed by private equity firms and are tracked by CB Insights. However, they are excluded for the purposes of this report. • No private placements. These investments, also known as PIPEs (Private Investment in Public Equities), are not included even if made by a venture capital firm(s). • No debt/loans of any kind (except convertible notes). Venture debt or any kind of debt/loan issued to emerging, startup companies, even if included as an additional part of an equity financing, is not included. If a company receives $3M with $2M from venture investors and $1M in debt, only the $2M is included in these statistics. • No non-equity government funding. Grants or loans by the federal government, state agencies, or public-private partnerships to emerging, startup companies are not included. • No fundings to subsidiaries of a larger parent corporation. PwC (pwc.com/moneytree) and CB Insights (cbinsights.com) encourage you to review the methodology and definitions employed to better understand the numbers presented in this report. If you have any questions about the definitions or methodological principles used, we encourage you to reach out to CB Insights directly. Additionally, if you feel your firm has been underrepresented, please send an email to info@cbinsights.com and we can work together to ensure your firm’s investment data is up-to-date. Rankings, e.g., top states and top sectors, are done by quarterly deal activity (that is, deal count for the given quarter). Methodology MoneyTree definitions 64 Disclaimer This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. Data is current as of July 11, 2019. PricewaterhouseCoopers and CB Insights have taken responsible steps to ensure that the information contained in the MoneyTree™ Report has been obtained from reliable sources. However, neither PwC nor CB Insights 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. © 2019 PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.