Glenn Solomon provided an overview of the state of the VC market and trends in IPOs and M&A. Key points included: - VC funding dollars have grown since the recession but deal numbers have remained steady, with larger deal sizes. Expansion and late stage rounds are significantly larger than in the past. - IPO and M&A activity dipped in Q1 2015 but have recovered since. IPOs tend to be for older, larger companies with higher revenue but not necessarily profits. Successful 2014 IPOs were in enterprise software and infrastructure. - The presentation covered performance of 2014-2015 IPOs and blockbuster 2014-2015 tech acquisitions over $1B.

1. Blackhorse Silicon Valley Trip:
GGV introduction & State of the VC Market
June 2015
Glenn Solomon
Managing Partner, GGV Capital

2. Table of Contents
Table of Contents
• GGV Capital Highlights
• Market Overview
• IPO Trends
• M&A Trends
• US Venture Capital Trends

3. GGV Capital Highlights

4. 15 Years of Investing in the US & China
Resulting in 18 IPOs since 2010
Resulting in 10 Private $1B+ Outcomes
Didi Dache
Resulting in 21 $1B+ Outcomes
AAC
Technologies
Tujia爱屋吉屋

5. Our Proven Sectors Propel Deal Flow and Success
E-Commerce Xiaohongshu
Travel Didi Dache
Internet of Things
智米
Zhimi
Gaming
AAC
Technologies
Digital Media /
Marketing
Youku-Tudou
Pandora
LightChaser
Percolate
SoundCloud
Buddy Media
Cross-Border
Ehang
Zepp
Wish
Quixey
Chukong
OnDemand
Services
Opendoor
51Credit
Xiaozhan
IWJW
Didi Dache
FlightCar
SaaS / Cloud
Zendesk
21Vianet
SuccessFactors
Synack
Kingsoft WPS
Domo
Global Discovery
Prynt
Wigo
CareerDean
Grubmarket
Dianhuabang
Totspot

6. Fund V Ecosystems
INTERNET OF THINGS COMMERCE
M O M S / P E T S L I F E S T Y L EA C C E S S O R I E S
Mo Tech
智米
Zhimi
CLOUD / SAAS
ON DEMAND SERVICES MOBILE / SOCIAL / GAMES
Baobao
Exutech
Xiaohongshu
G O O D S E D U C A T I O NA U T O
H O M E
F I N A N C E
酷家乐
爱屋
吉屋
养车
点点
Didi Taxi
51zhangdan Opendoor

7. Deal Profile
• Cross-border advantage
• Sector focus
• Multi-stage investment
• Market leader with 10x return profile
• Typically lead Series A or Series B
• Median: $8-10m for 10-20%, double down
on winners
Our Eco-system PartnersConsistent Investment Strategy

8. GGV Capital: Single Partnership Team
Hany Nada
Jeff Richards
Glenn Solomon
Hans Tung
Jixun Foo
Joined GGV in 2006
Prior: DFJ ePlanet, NSTB Singapore, HP
Representative investments: MediaV,
Qunar, Youku-Tudou, Meilishuo,
Grabtaxi
Founding Partner
Prior: Piper Jaffray
Representative investments:
DraftKings, Glu Mobile, Houzz,
Youku-Tudou, Soundcloud
Joined GGV in 2008
Prior: Verisign, Founder of R4,
QuantumShift, PWC
Representative investments: Appirio,
BlueKai, Buddy Media, HotelTonight,
Flipboard
Joined GGV in 2006
Prior: Partech, SPO, Goldman, Sachs &
Co.
Representative investments:
AlienVault, Nimble Storage, Pandora,
Square, Zendesk, SuccessFactors
Joined GGV in 2013
Prior: Qiming, Bessemer, Crimson Asia,
HelloAsia, Merrill Lynch
Representative investments: Forgame,
Wish, Curse, Xiaomi, Xiaohongxu
Jenny Lee
Joined GGV in 2005
Prior: JAFCO Asia, Morgan Stanley, ST
Aerospace
Representative investments:
YY, 21Vianet, Pactera, Chukong, Zepp,
Xiaozhan

9. Market Overview

10. VC Dollars Growing, but Deal # Holding Steady
0
500
1,000
1,500
2,000
2,500
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
Q1 '98 Q1 '99 Q1 '00 Q1 '01 Q1 '02 Q1 '03 Q1 '04 Q1 '05 Q1 '06 Q1 '07 Q1 '08 Q1 '09 Q1 '10 Q1 '11 Q1 '12 Q1 '13 Q1 '14 Q1 '15
USDMillions
US Technology Venture Capital Funding 1998 - Q1 2015
$M Invested Number of Deals
Source: MoneyTree, PwC and the National Venture Capital Association.
US venture capital dollar volumes have grown significantly since the recession, reaching nearly $15B in Q4 2014, but are still far off from the high
of $28B reached in Q1 2000 at the peak of the tech bubble. Volume of deals has been more stable, reflecting increasing deal sizes.

11. Expansion & Late Stage Rounds Growing in Size
Average deal sizes for seed and early stage companies have been relatively stable since 2000, but expansion and later stage round sizes have
dipped and rebounded with the market, and are now at around 2000 levels.
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
Q1 '98 Q1 '99 Q1 '00 Q1 '01 Q1 '02 Q1 '03 Q1 '04 Q1 '05 Q1 '06 Q1 '07 Q1 '08 Q1 '09 Q1 '10 Q1 '11 Q1 '12 Q1 '13 Q1 '14 Q1 '15
USDMillions
US Tech VC: Average Funding Amount per Deal by Stage
Seed Early Expansion Later
Average Deal Size by Year: Seed Early Expansion Later
1998 $2.6M $5.3M $6.6M $8.3M
2000 $4.5M $8.9M $15.9M $22.4M
2009 $4.5M $5.0M $7.4M $7.9M
Q1 2015 $4.8M $7.5M $18.3M $20.3M
Source: MoneyTree, PwC and the National Venture Capital Association.

12. M&A Volumes at 2-Year Low After Record Q4 ‘14
$5,967 $6,306 $6,935
$4,899
$3,671
$6,304
$8,688
$4,031
$1,019
$4,371 $4,857
$6,663
$7,620
$3,643
$8,590
$27,787
$2,050
138
97
142
125
114
124 124
129
85
98
116
94
115 119
135
110
86
0
20
40
60
80
100
120
140
160
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15
USDMillions
US Venture-Backed M&A
Total Disclosed M&A Value $(M) Total M&A Deals
Source: NVCA & Thomson Reuters.
The first quarter of 2015 has been slow for venture-backed M&A at $2B in disclosed deal value and 86 total deals, the lowest since Q1 2013.

13. # of IPOs Similarly at 2-Year Lows in Q1 ‘15
$1,527
$5,635
$476
$2,803
$1,683
$17,228
$1,141 $1,408
$717
$2,250 $2,781
$5,320
$3,405
$5,040
$2,592
$4,363
$1,433
14
20
5
11
19
12
10
8 8
22
27
24
37
29
23
27
17
0
5
10
15
20
25
30
35
40
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15
USDMillions
US Venture-Backed IPOs
Total IPO Offer Amount ($M) Total IPOs
The first quarter of 2015 has been slow for tech IPOs as well, with the lowest # for IPOs for a quarter since Q1 2013.
Source: NVCA & Thomson Reuters.

14. US IPO Trends

15. Median Years to IPO Increasing Over Time…
6.5
9
5
6
6.5
7
6
5.5 5.5
6
9 9
8 8 8 8
7 7
6
4
5
9 9
7
8
9 9
8
14
11 11
10
9 9
11
0
2
4
6
8
10
12
14
16
US Tech IPOs: Median Age of Company (Years)
Technology companies that IPO’ed in 2014 had a median age of 11 years, up significantly from the trough of 4 years in 1999. Since the financial
recession starting in 2008, the median age of a tech IPO company has been high relative to historical levels.
Source: Jay Ritter, University of Florida.

16. …And the Revenue Bar for Going Public is High…
$16 $13 $11 $9 $10 $13 $13 $18 $24
$32 $29 $35
$23 $27
$21 $22 $17 $22 $22
$12 $12
$25
$95
$86
$56
$68
$58
$70
$157
$174
$120
$141
$108
$106
$91
0
20
40
60
80
100
120
140
160
180
200
US Tech IPOs: Median Sales (Nominal, $M)
Tech companies’ median revenue at time of IPO was at record levels during 2008-2013, and remained high in 2014 at nearly $100M.
Source: Jay Ritter, University of Florida.

17. …But Profitability is Not a Prerequisite…
91%
88%
83%
71%
80%
84%
74%
86%
79% 77%
94%
74%
65%
74%
70% 71%
47%
50%
36%
14% 14%
30%
40% 39%
44%
36%
50%
29%
67%
71%
64%
36%
44%
28%
17%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
US Tech IPOs: % of Companies that were Profitable
Source: Jay Ritter, University of Florida.
Despite the relatively older age and higher revenue levels shown by tech IPOs since 2008, % of companies showing profitability dropped in 2014
to nearly 1999-2000 levels, indicating that lack of profitability has not been a barrier to going public.

18. 2014’s Top >$1B Tech IPOs Were Enterprise Companies
Source: Capital IQ. Data as of 6/26/15.
Out of 2014’s >$1B Market Cap, venture-backed tech IPOs, horizontal SaaS (Zendesk, Paylocity) and enterprise infrastructure (New Relic,
Hortonworks, Arista Networks) were the best performing categories.
Post-IPO
Trading Days
-100%
-50%
0%
50%
100%
150%
200%
250%
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
105
110
115
120
125
130
135
140
145
150
155
160
165
170
175
180
185
190
195
200
205
210
215
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225
230
235
240
245
250
255
260
265
270
275
280
285
290
295
300
305
310
315
320
325
2014 US Tech IPOs: Share Price Performance vs. IPO Offer Price
Hortonworks New Relic LendingClub Wayfair Arista Zendesk
Opower Grubhub King Paylocity Coupons.com
Hortonworks: +64% from Offer
Arista: +91% from Offer
Zendesk: +163% from Offer
New Relic: +54% from Offer
Paylocity: +109%
from Offer
Gruhub: +33% from Offer
Wayfair: +32% from Offer
Opower: -39% from Offer
King: -37% from Offer
Coupons.com: -26% from Offer
Lending Club: +2% from Offer

19. 2015’s Tech IPOs Show Early Promise
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 110
2015 US Venture-Backed IPOs: Share Price Performance vs. IPO Offer Price
MindBody FitBit Shopify Etsy GoDaddy Box
Shopify: + 97% from Offer
GoDaddy: + 48% from Offer Price
Etsy: - 11% from Offer Price
Box: +36% from
Offer Price
Fitbit:
+74% from
Offer Price
Mindbody: -1% from Offer Price
Source: Capital IQ. Data as of 6/26/15.
Of the 6 major venture / growth-equity backed tech IPOs in 2015, 4 (Fitbit, Shopify, GoDaddy, Box) are trading significantly above their offering
prices. The other two, Mindbody and Etsy have both struggled in the public markets.
Post-IPO
Trading Days

20. US M&A Trends

21. M&A Deal Value Reached 16-Month High in May ‘15
Source: FactSet.
US M&A (All Sectors) by Volume and Aggregate Deal Value

22. At Least 34 2014 – 2015 YTD Tech M&As with TEV >$1B
Acquiror Target Announced TEV LTM Revenue
TEV / LTM
Rev Target Industry
Cox Automotive, Inc. Dealertrack Technologies, Inc. 06/15/15 $4,459.5 $948.4 4.7x Internet Software and Services
EMC Corporation Virtustream, Inc. 05/26/15 $1,200.0 NA NA Internet Software and Services
Verizon AOL Inc. 05/12/15 $4,282.5 $2,569.0 1.7x Internet Software and Services
Capgemini North America, Inc. iGATE Corporation 04/27/15 $4,453.6 $1,288.1 3.5x IT Services
Permira & CPPIB Informatica Corporation 04/07/15 $4,844.4 $1,055.4 4.6x Software
DH Corporation Fundtech Ltd. 03/30/15 $1,250.0 $262.7 4.8x Software
Bain Capital, LLC Blue Coat Systems Inc. 03/10/15 $2,400.0 NA NA Communications Equipment
Hewlett-Packard Company Aruba Networks, Inc. 03/02/15 $2,359.7 $812.4 2.9x Communications Equipment
Expedia Inc. Orbitz Worldwide, Inc. 02/12/15 $1,691.6 $932.0 1.8x Internet and Catalog Retail
SS&C Technologies Holdings, Inc. Advent Software, Inc. 02/02/15 $2,549.6 $396.8 6.4x Software
CommScope Holding Company, Inc. TE Connectivity Ltd., Telecom, 01/28/15 $3,059.0 $1,900.0 1.6x Communications Equipment
Ontario Teachers' Riverbed Technology, Inc. 12/15/14 $3,468.4 $1,089.1 3.2x Communications Equipment
Publicis Groupe SA Sapient Corp. 11/03/14 $3,376.4 $1,383.1 2.4x IT Services
Engility Holdings, Inc. TASC, Inc. 10/28/14 $1,100.0 NA NA IT Services
Vista Equity Partners TIBCO Software Inc. 09/29/14 $4,159.3 $1,076.2 3.9x Software
SAP America, Inc. Concur Technologies, Inc. 09/18/14 $7,651.6 $667.9 11.5x Software
Micro Focus International plc The Attachmate Group, Inc. 09/15/14 $1,418.2 $575.0 2.5x Software
Alliance Data Systems Conversant, Inc. 09/11/14 $2,365.3 $593.8 4.0x Internet Software and Services
Thoma Bravo, LLC Compuware Corporation 09/02/14 $2,090.9 $714.5 2.9x Software
Shaw Communications, Inc. ViaWest, Inc. 07/31/14 $1,200.0 $168.0 7.1x Internet Software and Services
Zillow Trulia, Inc. 07/28/14 $3,090.5 $208.6 14.8x Internet Software and Services
Aristocrat Leisure Ltd. Video Gaming Technologies, Inc. 07/06/14 $1,283.0 $236.0 5.4x Electronic Equipment, Instruments and Components
Oracle Corporation MICROS Systems, Inc. 06/23/14 $4,604.1 $1,337.9 3.4x Software
TE Connectivity Ltd. Measurement Specialties Inc. 06/18/14 $1,603.5 $412.7 3.9x Electronic Equipment, Instruments and Components
SanDisk Corp. Fusion-io, Inc. 06/16/14 $1,050.4 $387.4 2.7x Technology Hardware, Storage and Peripherals
The Priceline Group Inc. OpenTable, Inc. 06/13/14 $2,495.5 $198.3 12.6x Internet Software and Services
KKR Internet Brands, Inc. 06/02/14 $1,100.0 NA NA Internet Software and Services
Cobham plc Aeroflex Holding Corp. 05/20/14 $1,459.9 $639.9 2.3x Electronic Equipment, Instruments and Components
NPC Group, Inc. Mercury Payment Systems, LLC 05/12/14 $1,650.0 $237.0 7.0x Software
Hellman & Friedman Renaissance Learning Inc. 03/13/14 $1,100.0 NA NA Software
Elliott Management Riverbed Technology, Inc. 02/25/14 $3,425.4 $1,041.0 3.3x Communications Equipment
Facebook, Inc. WhatsApp Inc. 02/19/14 $19,696.7 $10.2 NM Internet Software and Services
Lenovo (United States) Inc. Motorola Mobility Holdings, Inc. 01/29/14 $22,201.8 NA NA Communications Equipment
VMware, Inc. AirWatch, LLC 01/22/14 $1,545.0 NA NA Software
Mean 3.7x
Median 4.8x

23. …But VC-Backed Unicorn M&A is Way Down from Last Year

24. US Venture Capital Trends

25. Seed Funding Volumes Have Grown Steadily…
Seed venture capital financing dollar and deal volumes have both been on a steady increase, reaching nearly $400M in Q4 2014.
$57 $69 $63 $75
$102
$148 $140
$123 $129
$174
$204
$224
$199
$216
$257
$221
$261
$329
$353
$390
63
78
87 81
111
143
152
133
152
188
218
201 202 198
252
191
245 242
247
242
$0
$50
$100
$150
$200
$250
$300
Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14
0
50
100
150
200
250
300
350
400
450
Seed Venture Capital Funding & Deal Volume
Seed VC Dollars $M # Seed Rounds
Source: CB Insights.

26. …And Seed Deal Sizes are Creeping Upward…
Source: CB Insights.

27. …Driven by a Record Number of Seed Funds…
Source: CB Insights.
32
9
4
8
5 4
0 1
7
2
9
91
33
18
12
2
6 7
3 3
7
15
$1-$50 $51-$100 $101-$150 $151-$200 $201-$250 $251-$300 $301-$350 $351-$400 $401-$450 $451-$500 >$501
New VC / Growth Equity Funds Raised by Size (2013 - Q3 2014)
2013 Funds Raised 2014 Funds Raised
In the first three quarters of 2014, there were 91 micro-VC funds (<$50M AUM) raised.

28. …But Series A Volumes Overall Remain Steady
The “Series A Crunch” persists as seed funding volumes continue to climb, but Series A volumes stay relatively stable.
$1,040
$1,338 $1,477
$1,496
$1,310
$1,506
$1,241
$1,838
$1,679
$2,031
$1,646
$1,888220 219
194
228 222
246
232
242 215
256
224
256
0
50
100
150
200
250
300
Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14
0
500
1,000
1,500
2,000
2,500
VC-Backed Series A Financing
Series A VC Dollars ($M) # of Rounds
Source: CB Insights.

29. 2014 VC Fundraising Far Exceeded Tech IPO Proceeds
Source: CB Insights.

30. …And the Gap Has Only Widened in 2015
Source: CB Insights.

31. Entrepreneurs are Accessing Diverse Capital Sources
Selected Early Stage SMB / Startup Crowdfunding Platforms
Over $104M raised for early stage tech
startups in 2014 (estimated ~$70M in 2013)
Over $300M raised for SMBs in total
Over $200M raised for SMBs in total
Over $189M raised for SMBs in total
Over $135M raised for SMBs in total
Over $100M raised for SMBs in total
Over $90M raised for SMBs in total
Over $70M raised for SMBs in total
Over $35M raised for early stage tech
startups over lifetime of platform
Over $10M raised for early stage tech
startups over lifetime of platform
Startups have access to an increasing number of fundraising options beyond traditional venture capital, at both the early and late stages.
Mutual Funds & Hedge Funds in VC-Backed Deals
0
5
10
15
20
2011 2012 2013 2014
Janus Fidelity Blackrock Wellington T. Rowe
# of Mutual Fund Investments in VC-Backed Companies
0
10
20
30
2011 2012 2013 2014
Maverick Coatue Valiant Passport Dragoneer Tiger
# of Hedge Fund Investments in VC-Backed Companies

32. …Yielding More >$1B “Unicorns” Than Ever Before
Source: CB Insights.
16 10 16
38
29
2011 2012 2013 2014 2015 YTD
New Unicorns Added by Year (YTD as of 5/20/2015) 2015 Pace: 76

33. ...With Company Friendly Deal Terms (US standards)
Fenwick & West conducted a survey of 37 companies who raised money at valuations >$1 Billion in the 12 months prior to March 31st, 2015 to
evaluate the impact of deal terms on potential returns. Downside protections were stronger than upside benefits, and liquidation preferences
and minimum IPO conversion prices in these unicorn deals significantly reduce downside risk for VCs. As a result, “valuations of these companies
could fall on average by 90% before the unicorn investors would suffer a loss on their investment.”
Source: Fenwick & West, “The Terms Behind the Unicorn Valuations.”
Highlights Downside Protections
• For the 37 “unicorns” in the survey, average valuation was $4.4B
and median valuation was $1.6B (implying a few super-unicorns in
the mix)
• The average valuation increase over the prior round was 180%
• 25% of financings were led by traditional VCs, 75% by non-
traditional VCs (mutual funds, hedge funds, sovereign wealth,
corporations)
• 35% of the deals were valued at $1-$1.1B, implying that the
companies were optimizing for attaining unicorn status in their
negotiations
Upside Participation
100%
19%
16%
14%
14%
Liquidation Preference
Senior Liquidation Preference
IPO Price Must > Investment Price
Payment of More Shares if IPO Price <
Investment Price
Weighted average future financing anti-
dilution
5%
3%
11%
Participating Preferred
Multiple Preferences
IPO Auto-Convert to Common Above Price
Paid by Investor