Growing number of great European companies

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Funding activity still limited compared to the US

• VC funding (US$ BN) US

Europe

33.1

23.1
21.3
20.1 20.3
17.7

8.4

4.0 3.5 4.1 4.2 4.0

2001 2002 2003 2004 2005 2006

Source: Venture Finance

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Europe catching up in exits

• Exit Liquidity versus VC funding (US$ BN) VC investment for venture backed companies
Exit Liquidity

33.1 US Europe
30.4

25.3
23.6 23.1
21.3
20.4 20.1 20.3

17.7

12.2
11.2
10.3
8.4 8.5

4.8 4.2
4.0 3.5 4.1 4.0
3.4
1.3 1.1

2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 2006

Source: Dow Jones Venture One / Ernst & Young

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And ahead in IPOs

• Number of VC backed IPOs

US
Europe

91

67
60
56

41
35

22
20
13
9

2002 2003 2004 2005 2006

Source: Dow Jones Venture One / Ernst & Young

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