Q2 2020 MoneyTree™ Report 2 Executive summary Q2 2020 VC deals to US-based, VC-backed companies see quarterly increase but are down 18% YoY in Q2’20 Deal activity sees 3% quarterly rise in Q2’20: 1,374 US deals take place in Q2’20, up from 1,336 in Q1’20. Despite the quarterly increase, Q2’20 deals fall 18% YoY. US-based, VC-backed companies raise $26.9bn in Q2’20, down less than 1% from Q1’20. YTD funding and deal activity decline 7% and 16% YoY, respectively. Number of quarterly mega-rounds hits a new record: 69 companies raise rounds worth $100m or more in Q2’20, while mega-round deal share is relatively flat at 45%. IPO exits jump while M&A activity falls in the pandemic: After three quarters of declines, 24 US-based, VC-backed companies exit in IPOs in Q2’20, up from 15 in Q1’20. On the other hand, M&A activity sees sharp declines, falling to 120 exits in Q2’20 vs. 155 in Q1’20. Unicorn births decline for fourth consecutive quarter: There are 11 new US VC-backed private companies valued at $1bn+ in Q2’20. The total number of unicorns reaches 209 in Q2’20. Geographic insights US insights Global deal activity increases, funding declines in Q2’20 North America, Asia, and Europe see combined funding of $49bn in Q2’20: Globally, deal activity rebounds in Q2'20 to 3,812 deals, while funding decreases to $50.2bn. Funding and deals are down 13% and 9% YoY, respectively. Asia sees the largest quarterly increase in deals among geographies, rising 20% in Q2'20: Quarterly deal activity in Europe rises 9% in Q2'20, compared to 3% in North America. San Diego and Washington DC Metro areas hit 8-quarter highs for funding activity: San Diego Metro quarterly funding hits a 2-year high at $1.2bn led by three mega-rounds. VC- backed startups based in the Washington DC Metro raise $700m in Q2’20, also a 2-year high. Quarterly funding in Silicon Valley dips 7% in Q2'20 to $11.7bn, while deal activity rises 11% to 432 deals: Three of the top five largest deals in the US go to Silicon Valley-based startups that each raise $400m+. Source: PwC/CB Insights MoneyTree™ Report Q2 2020 3 Mega-rounds Deals and dollars Metros Unicorns States Emerging areas Exits Contents Sectors Global Source: PwC/CB Insights MoneyTree™ Report Q2 2020 Deals and dollars Source: PwC/CB Insights MoneyTree™ Report Q2 2020 5 1,628 1,513 1,538 1,672 1,561 1,412 1,336 1,374 $29.8 $40.1 $27.2 $30.8 $29.1 $24.8 $27.0 $26.9 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 US deals and dollars – Quarterly US deal activity reverses 3-quarter decline despite the pandemic Investments ($bn) # of deals Historical record Source: PwC/CB Insights MoneyTree™ Report Q2 2020 6 $50 $119 $112 $54 2001 2005 2010 2015 2020 YTD 4,738 6,644 6,183 2,710 US deals and dollars – Annual 2020 financing pace is short of 2019 levels, but near record levels Second highest Investments ($bn) # of deals Historical record Source: PwC/CB Insights MoneyTree™ Report Q2 2020 7 US funding – Quarterly seasonality YTD US funding is 7% less than the first half of 2019 $12.3 $19.0 $16.8 $16.4 $23.5 $27.2 $27.0 $16.9 $20.8 $18.8 $20.5 $25.4 $30.8 $26.9 $13.8 $20.9 $16.0 $22.0 $29.8 $29.1 $17.6 $17.8 $12.4 $21.7 $40.1 $24.8 $60.7 $78.5 $63.9 $80.5 $118.9 $111.9 $53.9 2014 2015 2016 2017 2018 2019 2020 YTD Q3 Q2 Q1 Q4 Total Investments ($bn): Historical record Source: PwC/CB Insights MoneyTree™ Report Q2 2020 8 Deal activity by round Seed deals see quarterly rise in Q2’20 after sharp decline Note: All deals include additional round types Q2'15 Q2'16 Q2'17 Q2'18 Q2'19 Q2'20 1,602 618 324 Seed 1,375 All deals Source: PwC/CB Insights MoneyTree™ Report Q2 2020 9 Q2'15 Q2'16 Q2'17 Q2'18 Q2'19 Q2'20 Median deal size by round Series E+ median deal size nearly doubles to $100m in Q2’20 $21.0m Note: Overall median includes additional round types $100m Series E+ Source: PwC/CB Insights MoneyTree™ Report Q2 2020 Mega-rounds Source: PwC/CB Insights MoneyTree™ Report Q2 2020 11 55 53 51 67 60 41 60 69 Mega-rounds – Investments and deal count Record number of mega-rounds take place in Q2’20 $14.6 $25.2 $12.5 $13.9 $15.0 $8.8 $12.4 $12.1 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Historical record Mega-round investments ($bn) # of mega-rounds Note: Mega-rounds are $100m+ deals Historical record Second highest Second highest Source: PwC/CB Insights MoneyTree™ Report Q2 2020 12 49% 63% 46% 45% 52% 36% 46% 45% Mega-rounds – Funding and share of total funding Mega-round deal share is relatively flat in Q2’20 at 45% $14.6 $25.2 $12.5 $13.9 $15.0 $8.8 $12.4 $12.1 $15.2 $14.9 $14.7 $16.9 $14.0 $16.0 $14.7 $14.8 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Historical record Mega-round investments ($bn) Non mega-round investments ($bn) Mega-round share Note: Mega-rounds are $100m+ deals Source: PwC/CB Insights MoneyTree™ Report Q2 2020 13 Mega-rounds – Quarterly seasonality YTD US mega-round investments are pacing below 2019 levels Note: Mega-rounds are $100m+ deals $2.9 $6.9 $4.2 $4.4 $8.2 $12.5 $12.4 $4.4 $7.2 $7.4 $7.5 $8.6 $13.9 $12.1 $3.4 $7.8 $4.9 $9.3 $14.6 $15.0 $6.9 $6.3 $2.3 $8.7 $25.2 $8.8 $17.6 $28.2 $18.8 $30.0 $56.6 $50.3 $24.4 2014 2015 2016 2017 2018 2019 2020 YTD Q3 Q2 Q1 Q4 Total Investments ($bn): Second largest Historical record Source: PwC/CB Insights MoneyTree™ Report Q2 2020 14 Largest US deals of Q2’20 Stripe leads largest US deals with $600m mega-round Company Investment Round Select investors Vertical 1 Stripe San Francisco, CA $600m Series E+ Andreessen Horowitz, General Catalyst, Google Ventures, Sequoia Capital Internet Internet Software & Services Payments 2 Palantir Technologies Palo Alto, CA $500m Other Sompo Japan Nipponkoa Software (non-internet/mobile) Business Intelligence, Analytics & Performance Mgmt Software 3 Sana Biotechnology Seattle, WA $481m Series A ARCH Venture Partners, Baillie Gifford & Co., Bezos Expeditions, Google Ventures Healthcare Biotechnology 4 DoorDash San Francisco, CA $400m Series E+ Durable Capital Partners, Fidelity Investments, T. Rowe Price Internet E-commerce Food & Grocery 5 Magic Leap Plantation, FL $350m Other Undisclosed Investor(s) Software (non-internet/mobile) Scientific, Engineering Software Note: Mega-rounds are $100m+ deals Source: PwC/CB Insights MoneyTree™ Report Q2 2020 Sectors Source: PwC/CB Insights MoneyTree™ Report Q2 2020 16 Sector # of deals Funding 1 Internet $11.3bn 2 Healthcare $6.4bn 3 Software (non-internet/mobile) $2.9bn 4 Mobile & Telecommunications $2.9bn 5 Food & Beverages $0.5bn 48 148 151 221 573 Top 5 US sectors – by deals Food & Beverages replaces Consumer Products in Top 5 17 Source: PwC/CB Insights MoneyTree™ Report Q2 2020 Top 10 verticals by deal activity Seven top verticals increased deal activity amid the pandemic 18 Source: PwC/CB Insights MoneyTree™ Report Q2 2020 Top 10 verticals by investments Seven verticals grew investments materially too Source: PwC/CB Insights MoneyTree™ Report Q2 2020 Unicorns Source: PwC/CB Insights MoneyTree™ Report Q2 2020 20 19 23 17 20 17 16 13 11 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Unicorns – New US-based, VC-backed unicorns by quarter New unicorn births decline for fourth consecutive quarter Historical record Note: Unicorns are startups valued at $1bn or more Source: PwC/CB Insights MoneyTree™ Report Q2 2020 21 130 147 162 173 184 197 204 209 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Unicorns – Total unicorn population Nonetheless, the total US unicorn population continues to climb Note: Unicorns are startups valued at $1bn or more Historical record Source: PwC/CB Insights MoneyTree™ Report Q2 2020 22 Note: Unicorns are startups valued at $1bn or more Unicorns – US aggregate unicorn valuation Aggregate valuation ticks upward after two quarters of decline $484 $590 $625 $590 $632 $630 $624 $630 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Historical record Unicorn valuations ($bn) Source: PwC/CB Insights MoneyTree™ Report Q2 2020 23 Company Valuation Vertical Emerging areas Select investors 1 Stripe San Francisco, CA $36.0bn Internet Software & Services Payments Fin Tech Andreessen Horowitz, General Catalyst, Google Ventures, Sequoia Capital 1 SpaceX Hawthorne, CA $36.0bn Industrial Aerospace & Defense Space Tech Founders Fund, Future Ventures, Google, Valor Equity Partners 3 Palantir Technologies Palo Alto, CA $20.0bn Software (non-internet/mobile) Business Intelligence, Analytics & Performance Mgmt Software Business Intelligence Sompo Japan Nipponkoa 4 Airbnb San Francisco, CA $18.0bn Internet E-commerce Travel On-Demand Silver Lake, TSSP 5 DoorDash San Francisco, CA $16.0bn Internet E-commerce Food & Grocery On-Demand Durable Capital Partners, Fidelity Investments, T. Rowe Price Top 5 highest-valued US unicorns – Q2’20 Stripe & SpaceX rise to the top as highest-valued US startups Note: Most recently disclosed valuations associated with a funding round are included Source: PwC/CB Insights MoneyTree™ Report Q2 2020 24 Top 5 funded US companies – Q2’20 Top-funded companies have raised $2bn+ each Company Funding Vertical Emerging areas Select investors 1 JUUL Labs San Francisco, CA $15.1bn Consumer Products & Services Consumer Electronics Consumer Hardware Coatue Management, D1 Capital Partners, Tiger Global Management 2 Airbnb San Francisco, CA $3.6bn Internet E-commerce Travel On-Demand Silver Lake, TSSP 3 SpaceX Hawthorne, CA $3.2bn Industrial Aerospace & Defense Space Tech Founders Fund, Future Ventures, Google, Valor Equity Partners 4 Magic Leap Plantation, FL $3.0bn Software (non-internet/mobile) Scientific, Engineering Software AR/VR Alibaba Group, Fidelity Investments, Google 5 SoFi San Francisco, CA $2.5bn Internet E-commerce Marketplace Fin Tech Institutional Venture Partners, Qatar Investment Authority, Third Point Ventures Source: PwC/CB Insights MoneyTree™ Report Q2 2020 Exits Source: PwC/CB Insights MoneyTree™ Report Q2 2020 26 6.2 7.1 6.3 7.5 6.6 6.3 6.9 6.6 166 188 168 166 167 153 155 120 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 US M&A exits – Quarterly Q2’20 M&A dips to eight quarter low amid the pandemic Note: Average years to liquidate from first funding Historical record M&A exits Average years to liquidation Source: PwC/CB Insights MoneyTree™ Report Q2 2020 27 7.1 7.0 5.4 7.2 7.5 6.1 7.0 6.7 24 17 15 34 22 18 15 24 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 IPO activity Years to IPO US IPOs – Quarterly Nonetheless, US IPO exits rebound in Q2’20 Note: Average years to liquidate from first funding Source: PwC/CB Insights MoneyTree™ Report Q2 2020 28 6.2 7.1 6.3 7.5 6.6 6.3 6.9 6.6 7.1 7.0 5.4 7.2 7.5 6.1 7.0 6.7 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 M&A exits and IPOs – Time-to-exit Years to IPO and M&A fall in Q2’20 Years to IPO Years to M&A Note: Average years to liquidate from first funding Source: PwC/CB Insights MoneyTree™ Report Q2 2020 29 166 188 168 166 167 153 155 120 24 17 15 34 22 18 15 24 190 205 183 200 189 171 170 144 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 M&A exits and IPOs – Number of exits Sharp decline in M&A activity contributes to total fall in exits IPO exits M&A exits Source: PwC/CB Insights MoneyTree™ Report Q2 2020 30 Top 5 M&A exits of Q2’20 Three of top M&A exits come from Fin Tech startups in Q2’20 Company Valuation Last round Verticals Select prior investors Buyer 1 Corvidia Therapeutics Waltham, MA $2.1bn Series B Healthcare Pharmaceuticals / Drugs Apple Tree Partners, Sofinnova Partners Novo Nordisk 2 Zoox Foster City, CA $1.2bn Other Software (non-internet/mobile) Scientific, Engineering Software Blackbird Ventures, Lux Capital, Threshold Ventures Amazon 2 Galileo Financial Technologies Salt Lake City, UT $1.2bn Growth Equity Internet Internet Software & Services Payments Accel, Mercato Partners SoFi 4 Personal Capital Redwood City, CA $1.0bn Series E+ Internet Internet Software & Services Asset & Financial Management & Training BlackRock, Crosslink Capital, Institutional Venture Partners Empower Retirement 5 Finicity Salt Lake City, UT $985m Series C Internet Internet Software & Services Accounting & Finance Bridge Capital Holdings, Experian Ventures, Nordmark Group MasterCard Source: PwC/CB Insights MoneyTree™ Report Q2 2020 31 Top 5 IPOs of Q2’20 17 Healthcare companies IPO but only two make the Top 5 Company Valuation Last round Verticals Select prior investors 1 Royalty Pharma New York, NY $9.9bn Other Financial Investment Firms & Funds Quadrille Capital 2 Vroom New York, NY $2.5bn Series E+ Internet E-commerce Auto General Catalyst, L Catterton, T. Rowe Price 3 Agora Lab Santa Clara, CA $2.0bn Series C Mobile & Telecommunications Mobile Software & Services Conferencing & Communication Coatue Management, GGV Capital, Tiger Global Management 4 Inari Medical Irvine, CA $892m Series C Healthcare Medical Devices & Equipment Device Design & Manufacturing U.S. Venture Partners, Versant Ventures 5 Generation Bio Cambridge, MA $848m Series C Healthcare Drug Discovery Atlas Venture, Fidelity Investments, Foresite Capital, T. Rowe Price Source: PwC/CB Insights MoneyTree™ Report Q2 2020 Metros Source: PwC/CB Insights MoneyTree™ Report Q2 2020 33 Select metros see increased financing amid the pandemic 34 Source: PwC/CB Insights MoneyTree™ Report Q2 2020 Top 10 metros by deal activity Three metros materially increase deal activity in Q2’20 35 Source: PwC/CB Insights MoneyTree™ Report Q2 2020 Top 10 Metros by investments San Diego and DC move up, Santa Maria and Miami join Top 10 Source: PwC/CB Insights MoneyTree™ Report Q2 2020 36 Silicon Valley Metro Source: PwC/CB Insights MoneyTree™ Report Q2 2020 37 467 456 422 500 469 416 388 432 $14.0 $25.6 $12.0 $14.3 $12.2 $9.7 $12.5 $11.7 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Investments ($bn) # of deals Silicon Valley deals and dollars – Quarterly Silicon Valley deals rise despite a quarterly decline in funding Historical record Source: PwC/CB Insights MoneyTree™ Report Q2 2020 38 Top Silicon Valley deals – Q2’20 $250m+ mega-rounds take place in Silicon Valley in Q2’20 Company Investment Round Select investors Vertical 1 Stripe San Francisco, CA $600m Series E+ Andreessen Horowitz, General Catalyst, Google Ventures, Sequoia Capital Internet Software & Services Payments 2 Palantir Technologies Palo Alto, CA $500m Other Sompo Japan Nipponkoa Software (non-internet/mobile) Business Intelligence, Analytics & Performance Mgmt Software 3 DoorDash San Francisco, CA $400m Series E+ Durable Capital Partners, Fidelity Investments, T. Rowe Price Internet E-commerce Food & Grocery 4 Robinhood Menlo Park, CA $280m Series E+ New Enterprise Associates, Ribbit Capital, Sequoia Capital, Unusual Ventures Mobile & Telecommunications Mobile Software & Services Asset & Financial Management & Trading 5 Pionyr Immunotherapeutics South San Francisco, CA $275m Other Gilead Sciences Healthcare Drug Discovery Note: Mega-rounds are $100m deals or larger Source: PwC/CB Insights MoneyTree™ Report Q2 2020 39 San Diego Metro Source: PwC/CB Insights MoneyTree™ Report Q2 2020 40 30 37 25 43 35 41 33 39 $0.9 $0.7 $0.3 $0.8 $0.7 $0.7 $0.6 $1.2 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Investments ($bn) # of deals San Diego Metro deals and dollars – Quarterly Funding and deal activity rise in San Diego Metro in Q2’20 Source: PwC/CB Insights MoneyTree™ Report Q2 2020 41 Top 5 San Diego Metro deals – Q2’20 Healthcare startups dominate in San Diego Metro Company Investment Round Select investors Vertical 1 Erasca San Diego, CA $200m Series B ARCH Venture Partners, LifeSci Venture Partners, Terra Magnum Capital Partners Healthcare Drug Discovery 2 Poseida Therapeutics San Diego, CA $110m Series D Adage Capital Management, Fidelity Investments, Schonfeld Strategic Advisors Healthcare Biotechnology 3 Cue Health San Diego, CA $100m Series C CAVU Venture Partners, Decheng Capital, Foresite Capital, Johnson & Johnson Innovation Mobile & Telecommunications Mobile Software & Services Healthcare 4 Artiva Biotherapeutics San Diego, CA $78m Series A GC Pharma, Green Cross LabCell, RA Capital Management, venBIO Healthcare Biotechnology 5 Autobahn Therapeutics San Diego, CA $76m Series B ARCH Venture Partners, Biogen IDEC, Bristol-Myers Squibb, Pfizer Venture Investments Healthcare Biotechnology Source: PwC/CB Insights MoneyTree™ Report Q2 2020 42 Washington DC Metro Source: PwC/CB Insights MoneyTree™ Report Q2 2020 43 48 24 44 51 41 40 41 49 $598 $639 $360 $424 $355 $365 $386 $699 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Investments ($m) # of deals Washington DC Metro deals and dollars – Quarterly Washington DC Metro funding hits 8-quarter high in Q2’20 Source: PwC/CB Insights MoneyTree™ Report Q2 2020 44 Top 5 Washington DC Metro deals – Q2’20 Three top Washington DC Metro deals go to Healthcare startups Company Investment Round Select investors Vertical 1 Pie Insurance Washington, DC $127m Series B Aspect Ventures, Greycroft, Sirius International Insurance Group, SVB Capital Internet Internet Software & Services Accounting & Finance 2 Aledade Bethesda, MD $64m Series C California Medical Association, Google Ventures, OMERS Private Equity Healthcare Medical Facilities & Services Medical Practice Management & Services 2 Somatus Mclean, VA $64m Series C Deerfield Management, Optum Ventures, Town Hall Ventures Healthcare Medical Facilities & Services Home Healthcare 4 Immunomic Therapeutics Rockville, MD $61m Other HLB Healthcare Pharmaceuticals / Drugs 5 Expel Herndon, VA $50m Series D CapitalG, Greycroft, Index Ventures, Paladin Capital Group Software (non-internet/mobile) Security Software Note: Mega-rounds are $100m deals or larger Source: PwC/CB Insights MoneyTree™ Report Q2 2020 States Source: PwC/CB Insights MoneyTree™ Report Q2 2020 46 Startups in the top three states raised 79% of US investments in Q2’20 California New York Massachusetts Source: PwC/CB Insights MoneyTree™ Report Q2 2020 47 Top 10 states capture nine of every ten dollars invested in Q2’20 Note: Due to rounding, percentages may not total 100% Source: PwC/CB Insights MoneyTree™ Report Q2 2020 48 Financing softens across most of the top states this quarter 49 Source: PwC/CB Insights MoneyTree™ Report Q2 2020 Top 10 states by deal activity Only four Top 10 states see increased deal activity in Q2’20 50 Source: PwC/CB Insights MoneyTree™ Report Q2 2020 Top 10 states by investments However most Top 10 states see increased investments in Q2’20 Source: PwC/CB Insights MoneyTree™ Report Q2 2020 51 California State Source: PwC/CB Insights MoneyTree™ Report Q2 2020 52 626 612 546 661 630 563 530 560 $15.9 $28.4 $14.1 $17.4 $16.0 $12.1 $15.1 $14.3 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Investments ($bn) # of deals California deals and dollars – Quarterly California quarterly deal volume rises 6% in Q2’20 Source: PwC/CB Insights MoneyTree™ Report Q2 2020 53 Top 5 California deals – Q2’20 Late-stage startups win funding in California Company Investment Round Select investors Vertical 1 Stripe San Francisco, CA $600m Series E+ Google Ventures, Sequoia Capital, General Catalyst, Andreessen Horowitz Internet Internet Software & Services Payments 2 Palantir Technologies Palo Alto, CA $500m Other Sompo Japan Nipponkoa Software (non-internet/mobile) Business Intelligence, Analytics & Performance Mgmt Software 3 DoorDash San Francisco, CA $400m Series E+ Durable Capital Partners, Fidelity Investments, T. Rowe Price Internet E-commerce Food & Grocery 4 Robinhood Menlo Park, CA $280m Series E+ 9yards capital, New Enterprise Associates, Ribbit Capital, Sequoia Capital, Unusual Ventures Mobile & Telecommunications Mobile Software & Services Asset & Financial Mgmt & Trading 5 Pionyr Immunotherapeutics South San Francisco, CA $275m Other Gilead Sciences Healthcare Drug Discovery Source: PwC/CB Insights MoneyTree™ Report Q2 2020 54 Pennsylvania State Source: PwC/CB Insights MoneyTree™ Report Q2 2020 55 34 35 40 30 32 35 19 29 $233 $267 $373 $260 $1,307 $395 $282 $356 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Investments ($m) # of deals Pennsylvania deals and dollars – Quarterly Pennsylvania financing rebounds in Q2’20 Source: PwC/CB Insights MoneyTree™ Report Q2 2020 56 Top 5 Pennsylvania deals – Q2’20 Q2’20 sees Pennsylvania healthcare startups raise top funding Company Investment Round Select investors Vertical 1 SwanBio Therapeutics Bala Cynwyd, PA $52m Series A Partners Innovation Fund, Syncona Partners Healthcare Drug Development 2 Renmatix King Of Prussia, PA $49m Series E+ BASF Venture Capital, Kleiner Perkins Caufield & Byers Energy & Utilities Renewables Bio-energy 3 Palvella Therapeutics Wayne, PA $45m Series C Adams Street Partners, BVF Partners, Samsara BioCapital Healthcare Biotechnology 4 Centinel Spine West Chester, PA $41m Other Viscogliosi Brothers Healthcare Medical Devices & Equipment Prosthetics 5 Niche.com Pittsburgh, PA $35m Series C Allen & Company, Radian Capital, Salesforce Ventures Internet Internet Software & Services Information Providers & Portals Source: PwC/CB Insights MoneyTree™ Report Q2 2020 57 Washington State Source: PwC/CB Insights MoneyTree™ Report Q2 2020 58 51 47 60 54 61 46 45 43 $668 $307 $746 $741 $649 $924 $386 $913 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Investments ($m) # of deals Washington deals and dollars – Quarterly Washington quarterly funding jumps 136% in Q2’20 Source: PwC/CB Insights MoneyTree™ Report Q2 2020 59 Top 5 Washington deals – Q2’20 A Washington healthcare startup raises a large mega-round Company Investment Round Select investors Vertical 1 Sana Biotechnology Seattle, WA $481m Series A Baillie Gifford & Co., Bezos Expeditions, Google Ventures Healthcare Biotechnology 2 Athira Pharma Seattle, WA $85m Series B Franklin Templeton, Janus Henderson Investors, Venrock, Viking Global Investors Healthcare Drug Development 3 DefinedCrowd Seattle, WA $51m Series B Bynd Venture Capital, EDP Ventures, Evolution Equity Partners, Hermes GPE Internet Internet Software & Services Scientific, Engineering 4 Outreach Seattle, WA $50m Series E+ Lone Pine Capital, Mayfield Fund, Meritech Capital Partners, Salesforce Ventures Internet Internet & Software Services Business Intelligence, Analytics & Performance Mgmt 5 Avalyn Pharma Seattle, WA $36m Series B Deerfield Management, F-Prime Capital, Norwest Venture Partners, Novo Holdings Healthcare Drug Development Note: Mega-rounds are $100m+ deals Source: PwC/CB Insights MoneyTree™ Report Q2 2020 60 Florida State Source: PwC/CB Insights MoneyTree™ Report Q2 2020 61 $268 $208 $161 $779 $148 $146 $198 $434 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 31 25 24 30 26 19 25 21 Investments ($m) # of deals Florida deals and dollars – Quarterly $350m mega-round drives rise in Florida funding Note: Mega-rounds are $100m+ deals Source: PwC/CB Insights MoneyTree™ Report Q2 2020 62 Top 5 Florida deals – Q2’20 Magic Leap raises Florida’s top deal in Q2’20 Company Investment Round Select investors Vertical 1 Magic Leap Plantation, FL $350m Other Undisclosed Investor(s) Software (non-internet/mobile) Scientific, Engineering Software 2 Sandow Boca Raton, FL $29m Other Archer Venture Partners, Bain Capital Ventures Media (Traditional) Publishing 3 ObvioHealth Orlando, FL $17m Series B TKS 1 Internet Internet & Software Services Healthcare 4 NYMBUS Miami Beach, FL $12m Series C Insight Partners, Vensure Enterprises Internet Internet & Software Services Web Development 5 HealthCare.com Miami, FL $5m Other Undisclosed Investor(s) Internet E-commerce Comparison Shopping Source: PwC/CB Insights MoneyTree™ Report Q2 2020 Emerging areas Source: PwC/CB Insights MoneyTree™ Report Q2 2020 64 How much are emerging areas disrupting venture financing? Source: PwC/CB Insights MoneyTree™ Report Q2 2020 65 0% 50% 100% 1995 2000 2005 2010 2015 2020 Top 20 emerging areas – Financing share Emerging areas now get majority of venture financing Share of deals Share of investments Source: PwC/CB Insights MoneyTree™ Report Q2 2020 66 Three emerging areas dominate deal activity among the Top 20 0 250 Digital Health Fin Tech AI Medical Devices Cybersecurity Smart Cities eCommerce Real Estate Tech Insurance Tech IOT Payments Capital Markets Tech Reg Tech Wealth Tech Blockchain Augmented Reality/Virtual Reality Supply Chain & Logistics Tech Advanced Manufacturing In-Store Retail Tech Auto Tech Q2’14 Q2’20 67 Source: PwC/CB Insights MoneyTree™ Report Q2 2020 Top 10 emerging areas by deal activity Two emerging areas see increase in deals in Q2’20 68 Source: PwC/CB Insights MoneyTree™ Report Q2 2020 Top 10 emerging areas by investments Six emerging areas materially increase investments in Q2’20 Source: PwC/CB Insights MoneyTree™ Report Q2 2020 69 Digital Health emerging area Source: PwC/CB Insights MoneyTree™ Report Q2 2020 70 164 130 148 179 145 151 158 173 $3.1 $2.1 $1.9 $3.0 $1.8 $2.9 $3.1 $3.1 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Investments ($bn) # of deals Digital Health deals and dollars – Quarterly Digital Health deal activity rises in Q2’20 Source: PwC/CB Insights MoneyTree™ Report Q2 2020 71 Top Digital Health deals – Q2’20 Expansion-stage Digital Health startups raise $613m+ Company Investment Round Select investors Vertical 1 Oscar Health New York, NY $225m Series E Khosla Ventures, General Catalyst, Thrive Capital, Coatue Management Internet Internet & Software Services Health & Wellness 2 Insitro South San Francisco, CA $143m Series B Google Ventures, Andreessen Horowitz, ARCH Venture Partners, T. Rowe Price Software (non-internet/mobile) Healthcare Software 3 DispatchHealth Denver, CO $136m Series C Alta Partners, Humana, Oak HC/FT Partners, Optum Ventures Mobile & Telecommunications Mobile Software & Services Health & Wellness 4 AmWell Boston, MA $134m Series C Takeda Pharmaceutical, Allianz X Internet Internet & Software Services Healthcare 5 Cue Health San Diego, CA $100m Series C Madrone Capital Partners, Johnson & Johnson Innovation Internet Internet & Software Services Healthcare 5 Mindstrong Mountain View, CA $100m Series C Bezos Expeditions, General Catalyst, ARCH Venture Partners Mobile & Telecommunications Mobile Software & Services Healthcare 5 DNAnexus Mountain View, CA $100m Series E+ First Round Capital, Foresite Capital, Google Ventures Internet Internet & Software Services Healthcare Source: PwC/CB Insights MoneyTree™ Report Q2 2020 72 Medical Devices emerging area Source: PwC/CB Insights MoneyTree™ Report Q2 2020 73 133 89 107 134 111 108 68 84 $1.8 $1.0 $1.1 $2.1 $1.8 $1.9 $1.6 $1.5 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Investments ($bn) # of deals Medical Devices deals and dollars – Quarterly Medical Devices space sees deal activity increase in Q2’20 Source: PwC/CB Insights MoneyTree™ Report Q2 2020 74 Top Medical Devices deals – Q2’20 Top 5 deals account for 30% of Medical Devices funding in Q2’20 Company Investment Round Select investors Vertical 1 RefleXion Medical Hayward, CA $100m Series D Venrock, De Novo Ventures, T. Rowe Price, Pfizer Venture Investments Healthcare Medical Devices & Equipment Therapeutic Devices 1 Mindstrong Mountain View, CA $100m Series C Bezos Expeditions, General Catalyst, ARCH Venture Partners Mobile & Telecommunications Mobile Software & Services Healthcare 1 Goldfinch Bio Cambridge, MA $100m Series B BlackRock, Gilead Sciences, Wellington Management, Undisclosed Investor(s) Healthcare Disease Diagnosis 4 Visby Medical San Jose, CA $70m Other John Doerr, Pitango Venture Capital, Cedars-Sinai Medical Center Healthcare Medical Devices & Equipment 5 PulmonX New York, NY $66m Series E+ Adage Capital Management, Ally Bridge Group, Rock Springs Capital, Undisclosed Investor(s) Mobile & Telecommunications Mobile Software & Services Healthcare Source: PwC/CB Insights MoneyTree™ Report Q2 2020 75 Fin Tech emerging area Source: PwC/CB Insights MoneyTree™ Report Q2 2020 76 $3.3 $3.7 $3.6 $5.5 $4.0 $4.7 $3.5 $4.8 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 208 181 209 195 199 191 168 154 Investments ($bn) # of deals Fin Tech deals and dollars – Quarterly Fin Tech funding climbs 40% in Q2’20 Source: PwC/CB Insights MoneyTree™ Report Q2 2020 77 Top Fin Tech deals – Q2’20 Late-stage startups dominate top deals in Fin Tech Company Investment Round Select investors Vertical 1 Stripe San Francisco, CA $600m Series E+ Google Ventures, Sequoia Capital, General Catalyst, Andreessen Horowitz Internet Internet Software & Services Payments 2 Robinhood Menlo Park, CA $280m Series E+ 9yards capital, New Enterprise Associates, Ribbit Capital, Sequoia Capital, Unusual Ventures Mobile & Telecommunications Mobile Software & Services Asset & Financial Mgmt & Trading 3 Varo Money San Francisco, CA $241m Series D HarbourVest Partners, Progressive, The Rise Fund, Gallatin Point Capital Mobile & Telecommunications Mobile Software & Services Asset & Financial Mgmt & Trading 4 Duck Creek Technologies Boston, MA $280m Growth Equity Insight Partners, Temasek, Dragoneer Investment Group, Neuberger Berman Internet Internet Software & Services Accounting & Finance 5 Oscar Health New York, NY $225m Series E+ Khosla Ventures, General Catalyst, Thrive Capital, Coatue Management Internet Internet & Software Services Health & Wellness Source: PwC/CB Insights MoneyTree™ Report Q2 2020 78 Payments emerging area Source: PwC/CB Insights MoneyTree™ Report Q2 2020 79 41 33 37 32 23 45 32 28 $0.9 $0.6 $0.9 $1.3 $1.2 $1.2 $1.2 $1.8 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Investments ($bn) # of deals Payments deals and dollars – Quarterly Payments deals decline while funding rises in Q2’20 Source: PwC/CB Insights MoneyTree™ Report Q2 2020 80 Top Payments deals – Q2’20 Late-stage startups dominate top deals in Payments Company Investment Round Select investors Vertical 1 Stripe San Francisco, CA $600m Series E+ Google Ventures, Sequoia Capital, General Catalyst, Andreessen Horowitz Internet Internet Software & Services Payments 2 Varo Money San Francisco, CA $241m Series D HarbourVest Partners, Progressive, The Rise Fund, Gallatin Point Capital Mobile & Telecommunications Mobile Software & Services Asset & Financial Mgmt & Trading 3 Brex San Francisco, CA $150m Series C Lone Pine Capital, DST Global Internet Internet Software & Services Payments 3 Marqeta Oakland, CA $150m Series E+ Undisclosed Investor(s) Internet E-commerce E-commerce Enablement 5 AvidXchange Charlotte, NC $136m Series E+ Lone Pine Capital, MasterCard, Neuberger Berman, TSSP Internet, Internet Software & Services Billing, Expense Mgmt & Procurement Source: PwC/CB Insights MoneyTree™ Report Q2 2020 81 Capital Markets Tech emerging area Source: PwC/CB Insights MoneyTree™ Report Q2 2020 82 35 44 47 42 37 39 22 27 $1.0 $1.4 $0.7 $1.6 $1.1 $1.3 $0.7 $1.7 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Investments ($bn) # of deals Capital Markets Tech deals and dollars – Quarterly Capital Markets Tech funding grows 143% upward in Q2’20 Source: PwC/CB Insights MoneyTree™ Report Q2 2020 83 Top Capital Markets Tech deals – Q2’20 Capital Markets Tech sees three $200m mega-rounds in Q2’20 Company Investment Round Select investors Vertical 1 Robinhood Menlo Park, CA $280m Series E+ 9yards capital, New Enterprise Associates, Ribbit Capital, Sequoia Capital, Unusual Ventures Mobile & Telecommunications Mobile Software & Services Asset & Financial Mgmt & Trading 2 Confluent Mountain View, CA $250m Series E+ Sequoia Capital, Index Ventures, Franklin Templeton, Altimeter Capital, Coatue Management Internet Internet Software & Services Application & Data Integration 3 Carta San Francisco, CA $210m Series E+ Lightspeed Venture Partners, Andreessen Horowitz, Montage Ventures, Tribe Capital Internet Internet Software & Services Legal 4 Aspiration Marina Del Rey, CA $135m Series C UBS, SuRo Capital, Jeff Skoll, Pohlad Family Companies, DNS Capital Internet Internet Software & Services Accounting & Finance 5 Collibra Salt Lake City, UT $113m Series E+ Battery Ventures, Index Ventures, Dawn Capital, ICONIQ Capital Software (non-internet/mobile) Business Intelligence, Analytics & Performance Mgmt Software Note: Mega-rounds are $100m+ deals Source: PwC/CB Insights MoneyTree™ Report Q2 2020 84 Are VCs keeping busy? Source: PwC/CB Insights MoneyTree™ Report Q2 2020 85 Top VCs by amount raised in Q2’20 The top 5 VCs each raised $2bn+ in Q2’20 Investor Funds raised (Q2 2020) Year founded Select investments Location 1 Insight Partners $9.5bn 1995 Twitter, Chegg, Shopify, New Relic New York, NY 2 General Catalyst $4.6bn 2000 Stripe, Lemonade, Snap, Livongo Palo Alto, CA 3 Lightspeed Venture Partners $4.2bn 2000 Grubhub, Stitch Fix, Zscaler, TaskRabbit Menlo Park, CA 4 Summit Partners $2.2bn 1984 Uber, Infor, SmartSheet, Lazada Boston, MA 5 Index Ventures $2.0bn 1996 Discord, Sonos, Adyen, Zuora Menlo Park, CA Source: PwC/CB Insights MoneyTree™ Report Q2 2020 86 Most active VCs in Q2’20 SOSV takes the lead in Q2’20 as most active VC Investor Deals Select investments Location 1 SOSV 30 Gaia Labs, Catalog Technologies, Machine Medicine Princeton, NJ 2 Andreessen Horowitz 28 ADDI, Deel, Run the World, insitro Menlo Park, CA 3 Google Ventures 24 insitro, Lime, Cockroach Labs Mountain View, CA 4 Sequoia Capital 20 Amplitude, Truework, Vise Menlo Park, CA 5 Khosla Ventures 16 Clear Labs, Mojo Vision, Codota San Francisco, CA 5 Accel 16 BetterCloud, Bevy, Anyfin Palo Alto, CA 5 Index Ventures 16 ServiceTitan, Figma, Expel Menlo Park, CA Source: PwC/CB Insights MoneyTree™ Report Q2 2020 Global Source: PwC/CB Insights MoneyTree™ Report Q2 2020 88 Global regional comparison – Q2’20 1,348 $13.6bn Asia 3,812 Deals $50.2bn invested globally 1,479 $27.9bn North America 843 $7.3bn Europe Source: PwC/CB Insights MoneyTree™ Report Q2 2020 89 Global deal activity: North America, Asia, and Europe Deals rise across North America, Asia, and Europe # of deals: North America Asia Europe 1,739 1,612 1,656 1,795 1,684 1,518 1,431 1,479 1,763 1,439 1,401 1,353 1,476 1,536 1,124 1,348 783 857 864 895 839 903 776 843 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Source: PwC/CB Insights MoneyTree™ Report Q2 2020 90 $30 $41 $28 $32 $31 $26 $28 $28 $22 $23 $20 $15 $16 $14 $16 $14 $5 $5 $8 $9 $8 $7 $7 $7 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Global dollar funding: North America, Asia, and Europe Funding declines outside of North America Investments ($bn): Europe Asia North America Source: PwC/CB Insights MoneyTree™ Report Q2 2020 91 Largest global deals of Q2’20 Q2’20 sees three mega-rounds over $500m Company Investment Round Select investors Vertical 1 Zuoyebang Beijing, China $750m Series E Tiger Global Management, Qatar Investment Authority, Sequoia Capital China Internet Internet Software & Services Education & Training 2 Stripe San Francisco, USA $600m Series E+ Google Ventures, Sequoia Capital, General Catalyst, Andreessen Horowitz Internet Internet Software & Services Payments 3 Palantir Technologies Palo Alto, USA $500m Other Sompo Japan Nipponkoa Software (non-internet/mobile) Business Intelligence, Analytics, & Performance Mgmt Software 4 Sana Biotechnology Seattle, USA $481m Series A Google Ventures, ARCH Venture Partners, F-Prime Capital Healthcare Biotechnology 5 Samsara Networks London, UK $400m Series E+ Tiger Global Management, Warburg Pincus, General Catalyst Internet Internet Software & Services Business Intelligence, Analytics, & Performance Mgmt Software 5 DoorDash San Francisco, USA $400m Series E+ Durable Capital Partners, Fidelity Investments, T. Rowe Price Internet E-commerce Food & Grocery Note: Mega-rounds are $100m deals or larger Appendix PwC/CB Insights MoneyTree™ Report Q2 2020 Source: PwC/CB Insights MoneyTree™ Report Q2 2020 93 US States: Full listing with investments and deals State $m Deals State $m Deals State $m Deals State $m Deals Arizona 120 8 Indiana 20 11 Nebraska 130 5 Texas 420 59 Arkansas 5 2 Iowa 22 5 Nevada 126 2 Utah 240 14 California 14,330 560 Kansas 38 3 New Hampshire 6 2 Vermont 2 1 Colorado 265 28 Kentucky 5 2 New Jersey 259 15 Virginia 170 20 Connecticut 191 10 Louisiana 10 2 New Mexico 2 3 Washington 913 43 DC 189 13 Maine 12 4 New York 3,149 199 Wisconsin 19 5 Delaware 64 8 Maryland 358 21 North Carolina 288 21 Wyoming 43 3 Florida 434 21 Massachusetts 3,706 128 Ohio 107 18 Georgia 175 23 Michigan 64 9 Oregon 141 10 Hawaii 11 2 Minnesota 79 11 Pennsylvania 356 29 Idaho 62 5 Missouri 40 6 Rhode Island 0 2 Illinois 251 30 Montana 8 1 Tennessee 26 10 Note: Omitted states had no deals in the current quarter 94 What is included: • Equity financings into private companies. Fundings must be to VC-backed companies, which are defined as companies that have received funding at any point from: 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 from a venture firm. • 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 in Asia. 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. • 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 95 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 6, 2020. 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. © 2020 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.