NEW YORK – Venture capital performance showed positive returns across most investment horizons ending September 30, 2008, according to Thomson
Reuters and the National Venture Capital Association (NVCA).

Turmoil in the broader capital markets and the closed IPO window drove the one-year all
venture private equity performance index (PEPI) into negative territory to -1.6 percent, with
a 6.9 percentage point decrease from the period ending June 30, 2008.

Historically, short term horizons show significant fluctuations quarter over quarter based on current exit market conditions.

“The venture capital performance numbers as of the end of the third quarter are reflective
of the shuttered IPO window and slowing M&A market for venture-backed companies, which deteriorated during 2008,” said Mark Heesen, president of the NVCA.

“We expect to see further declines in the short term performance numbers into 2009 until the exit markets improve. Longer term performance will hold steady for the time being, but a prolonged
capital markets crisis will begin to impact these numbers ultimately as well.”

Five-year performance posted a modest decline from the previous quarter, decreasing .2
percentage points.

Ten and Twenty-year performance figures showed small quarter-over quarter increases of .8 and .2 percentage points to 17.3 percent and 17.1 percent, respectively.

Venture returns across all horizons outperformed public market indices, NASDAQ and the S&P 500, through 9/30/2008.

Online: http://www.nvca.org/pdf/Q3_08_VC_Performance_Release.pdf

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