Venture Capital Survey Silicon Valley Second Quarter 2010

Trends in Terms of Venture Financings In the San Francisco Bay Area (Second Quarter 2010)

Background —We analyzed the terms of venture financings for 126 companies headquartered in Silicon Valley that reported raising money in the second quarter of 2010.

Overview of Fenwick & West Results

• Up rounds exceeded down rounds in 2Q10 55% to 27%, with 18% of rounds flat. This was an improvement over 1Q10, when up rounds exceeded down rounds 49% to 32%, with 19% of rounds flat. This was the fourth quarter in a row in which up rounds exceeded down rounds.
• The Fenwick & West Venture Capital Barometer showed an average price increase of 30% in 2Q10, compared to 21% in 1Q10. This was also the fourth quarter in a row in which the Barometer was positive.