Exhibit n.4
March 5, 2007
Rizwan R. Hussain
Director, Global Venture Capital Services
VentureOne / FIS / Dow Jones & Co.
201 California Street, 10th Floor
San Francisco, CA 94111
Dear Rizwan,
Hercules would like the consent of VentureOne/Dow Jones to use the following paragraphs in our upcoming Filing. If acceptable, please sign and fax to me at 866.811.3908.
Thank you,
Sally Borg
Director of Operations/Communications
From Page 3
In 2006, venture capital-backed companies received, in approximately 2,454 transactions, equity financing in an aggregate amount of approximately $25.8 billion, representing an 8% increase over the preceding year, as reported by Dow Jones VentureOne. In addition, overall, the median round size in 2006 was $7 million, up from $6.5 million in 2005, and the highest annual median since 2000. For the second year in a row, equity investors are focusing more than a third of their investment activity on early-stage financings. Overall, seed- and first-round deals made up 36% of the deal flow in 2006, and about the same concentration of deal flow went to later stage deals.
According to Dow Jones VentureOne, median pre-money valuations for venture capital-backed companies in 2000 was $25.0 million declining to a low of $10.0 million in 2003. As of December 31, 2006 median pre-money valuations for venture capital-backed companies in 2006 was $18.5 million compared to $15.0 million in 2005.
/s/ RIZWAN HUSSAIN |
Rizwan Hussain, Director, Global Venture Capital Services |
3.5.2007 Date
400 HAMILTON AVENUE
SUITE 310
PALO ALTO, CA 94301
650.289.3060
650.473.9194
www.HERCULESTECH.COM