PricewaterhouseCoopers: Venture Capital BestPractices Survey Report

PricewaterhouseCoopers VC BestPractices™ survey series was launched in the fourth quarter of 1998. The survey is conducted by the Private Equity Practice of the Global Technology Industry Group. It reflects the practices, policies and views of U.S. venture capital firms on a regional and national basis. Findings can also be sorted by a number of other criteria. Examples include committed capital, industry sector focus, and type of financing.

Invitations to participate in the first VC BestPractices Survey were mailed on April 19, 1999. Each venture capitalist surveyed was sent a letter from PricewaterhouseCoopers describing the Survey. Follow-up notices were conducted via fax and telephone during the week of April 26, 1999. CFOs, general partners, and controllers from VC firms were selected from a database provided by ASSETALTERNATIVES.

A total of 192 venture capitalists were interviewed via Internet. All data was entered and verified through a comprehensive PricewaterhouseCoopers database.

Alaska/Hawaii/Puerto Rico — Alaska, Hawaii, and Puerto Rico
Colorado — the state of Colorado
DC/Metroplex — Washington, D.C., Virginia, West Virginia, and Maryland
LA/Orange County — Los Angeles, Ventura, Orange, and Riverside Counties (i.e., southern California, except San Diego)
Midwest — Illinois, Missouri, Indiana, Kentucky, Ohio, Michigan, and western Pennsylvania
New England — Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and parts of Connecticut (excluding Fairfield county)
New York Metro — Metropolitan NY area, northern New Jersey, and Fairfield County, Connecticut
North Central — Minnesota, Iowa, Wisconsin, North Dakota, South Dakota, and Nebraska
Northwest — Washington, Oregon, Idaho, Montana, and Wyoming
Philadelphia Metro — eastern Pennsylvania, southern New Jersey, and Delaware
Sacramento/Northern California — northeastern California
San Diego — San Diego area
Silicon Valley — Northern California, bay area and coastline
South Central — Kansas, Oklahoma, Arkansas, and Louisiana
Southeast — Alabama, Florida, Georgia, Mississippi, Tennessee, South Carolina, and North Carolina
Southwest — Utah, Arizona, New Mexico, and Nevada
Texas — the state of Texas
Upstate New York — Northern New York state, except Metropolitan New York City area

As part of the world's leading professional services firm, the people of the Global Technology Industry Group have the scope, depth and expertise to advise fast growth and global technology companies on the complex challenges facing their business. The group has the scale and systems to do it expediently. The worldwide network to deliver it seamlessly. The experience to get results.

By focusing on key industry segments of Computers & Peripherals, Internet, Life Sciences, Networking & Communications, Semiconductors, Software and Venture Capital, the Global Technology Industry Group delivers an unprecedented knowledge base for technology clients. PricewaterhouseCoopers counts as clients many of the world's largest technology companies. At the same time, the firm was advisor on one-third of all technology IPOs last year. PricewaterhouseCoopers serves as auditor on more than one-third of all technology companies that received venture funding last year, and provides tax and audit services to more than forty percent of U.S. venture capital firms.

Additional information about the PricewaterhouseCoopers Technology Industry Group is available by calling 1-877-PwC-TICE (1-877-792-8423) or by contacting your local PricewaterhouseCoopers venture capital industry partner.

Region United States (Europe see bottom)	Practice Office	VC Partner	Phone / Email
Colorado	Denver	Matt Kosmicki	720.931.7600 matt.kosmicki@us.pwcglobal.com
DC/Metroplex	McLean/Tysons Corner	Tim Morgan	703.918.3537 tim.morgan@us.pwcglobal.com
Los Angeles	Los Angeles	Dave Chrencik	213.356.6130 david.g.chrencik@us.pwcglobal.com
Midwest	Chicago	Aileen O'Donovan	312.298.5553 aileen.odonovan@us.pwcglobal.com
New England	Boston	Robert Kelley	617.478.5066 robert.c.kelley@us.pwcglobal.com
New York Metro	New York	Bob Fish	646.394.2354 robert.fish@us.pwcglobal.com
North Central	Minneapolis	Jay Hare	612.596.6347 Jay.hare@us.pwcglobal.com
Northwest	Seattle	Michele Godvin	206.398.3801 michele.l.godvin@us.pwcglobal.com
Philadelphia Metro	Philadelphia	Bill Molloie	267.330.2235 w.molloie@us.pwcglobal.com
Sacramento/ Northern California	San Jose	Tracy Lefteroff	408.817.4176 tracy.t.lefteroff@us.pwcglobal.com
San Diego	San Diego	Jim Ingraham	619.744.8066 Jim.ingraham@us.pwcglobal.com
Silicon Valley	San Jose	Tracy Lefteroff	408.817.4176 tracy.t.lefteroff@us.pwcglobal.com
Southeast: Georgia North Carolina Florida	Atlanta Raleigh Tampa	Dan Giannini (Dan) Jeff Barber (Jeff) Phyllis .M. Jones	678.419.1131 Daniel.a.giannini@us.pwcglobal.com 919.755.3105 Jeff.barber@us.pwcglobal.com 813.222.5419 Phyllis.m.jones@us.pwcglobal.com
South Central: Kansas Oklahoma Arkansas Louisiana	Chicago Atlanta	Aileen O'Donovan Dan Giannini	312.298.5553 aileen.odonovan@us.pwcglobal.com 678.419.1131 daniel.a.giannini@us.pwcglobal.com
Southwest (Utah, Arizona, New Mexico and Nevada)	Salt Lake City Phoenix	Steve Stauffer Andy Coumides	801.537.5204 steven.c.stauffer@us.pwcglobal.com 602.364.8300 andreas.d.coumides@us.pwcglobal.com
Texas	Austin Dallas Houston	Martin Fiscus Cynthia Keith Cynthia Keith	512.708.5454 j.martin.fiscus@us.pwcglobal.com 214.754.5059 cynthia.b.keith@us.pwcglobal.com 214.754.5059 cynthia.b.keith@us.pwcglobal.com
Upstate New York (Northern NY state, except NY City)	Boston	Robert Kelley	617.478.5066 robert.c.kelley@us.pwcglobal.com
EUROPE	London	Keith Arundale	44.(0)20.7804.7973 keith.arundale@us.pwcglobal.com

Comprehensive data will be available on-line at the web site: http://www.pwcvc.com

Additional information on the scope and methodology of the survey is available from the survey director: Jan Akers, Jan.M.Akers@us.pwcglobal.com

The data contained in the VC BestPractices survey have been obtained from venture capital firms responding to the questionnaire. PricewaterhouseCoopers has taken responsible steps to ensure that the information contained in the survey has been obtained from reliable sources. However, PricewaterhouseCoopers cannot warrant the ultimate validity of data obtained in this manner. All data subject to change.