Boulder Economic Forecast Business Research Division Leeds School of - - PowerPoint PPT Presentation

Business Research Division • Leeds School of Business • University of Colorado

Boulder Economic Forecast

Business Research Division • Leeds School of Business • University of Colorado

Real GDP Growth

• 10.0
• 8.0
• 6.0
• 4.0
• 2.0

0.0 2.0 4.0 6.0 8.0 10.0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Percent

Quarterly and Annualized Real GDP 1990-2014

Quarterly GDP Annualized GDP 1990-1999 Annualized GDP 2000-2009

Sources: Bureau of Economic Analysis and Consensus Forecasts.

Business Research Division • Leeds School of Business • University of Colorado

National Employment

Sources: Bureau of Labor Statistics (Seasonally Adjusted), National Bureau of Economic Research, and Moody’s Analytics

• 900
• 700
• 500
• 300
• 100

100 300 500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Thousands, Month-

• ver-Month

Recession 18 Months Recession 8 Months

Business Research Division • Leeds School of Business • University of Colorado

National Employment

Months to Recovery

Source: Bureau of Labor Statistics, CES (Seasonally Adjusted).

• 7.0
• 6.0
• 5.0
• 4.0
• 3.0
• 2.0
• 1.0

0.0 1.0 2.0 6 12 18 24 30 36 42 48 54 60 66 72 78 Percent Number of Months Since Previous Peak 2008-Present 2001-05 1990-93 1981-83 1974-76 1980 82

Business Research Division • Leeds School of Business • University of Colorado

National Employment Growth

Peak-to-November 2014

Source: Bureau of Labor Statistics, Seasonally Adjusted.

Business Research Division • Leeds School of Business • University of Colorado

U.S. Income and Consumption

• 3.0
• 2.0
• 1.0

0.0 1.0 2.0 3.0 4.0 2005 2007 2009 2011 2013 2015 Percent Change

Personal Consumption

2.3% 2.8%

• 1
• 0.5

0.5 1 1.5 2 2.5 3 3.5 4 4.5 2005 2007 2009 2011 2013 2015 Percent Change

Disposable Income

2.5% 2.9%

Sources: Bureau of Economic Analysis and Consensus Forecasts.

Business Research Division • Leeds School of Business • University of Colorado

Household Wealth

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 1Q 2000 3Q 2001 1Q 2003 3Q 2004 1Q 2006 3Q 2007 1Q 2009 3Q 2010 1Q 2012 3Q 2013 $ Billions

Mutual Funds Corporate Equities Real Estate

Source: Federal Reserve Board, Balance Sheet of Households and Nonprofit Organizations (B100) (Not Seasonally Adjusted).

Business Research Division • Leeds School of Business • University of Colorado

Household Debt Burden

Percent of Disposable Income

13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 Q2 1994 Q3 1996 Q4 1998 Q1 2001 Q2 2003 Q3 2005 Q4 2007 Q1 2010 Q2 2012 Q3 2014 FOR DSR

Financial Obligations Ratio (R) Debt Service Ratio (L)

Source: Federal Reserve, Household Debt Service and Obligations Ratios.

Business Research Division • Leeds School of Business • University of Colorado

20 40 60 80 100 120 140 160 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 1985=100

Recession 8 months

United States Mountain Region

Index of Consumer Confidence

Recession 8 months Recession 18 months

Sources: The Conference Board and National Bureau of Economic Research.

Business Research Division • Leeds School of Business • University of Colorado

Vehicle Sales and Retail Sales

Sources: Seasonally Adjusted Annual Rate, Autodata Corp., Motor Intelligence, U.S. Census Bureau.

• 15.0
• 10.0
• 5.0

0.0 5.0 10.0 15.0 2004 2006 2008 2010 2012 2014

Retail and Food Services Sales

YOY, Percentage Change 5,000 10,000 15,000 20,000 25,000 2004 2006 2008 2010 2012 2014

Vehicle Sales

Thousands, SAAR

Business Research Division • Leeds School of Business • University of Colorado

Nominal Corporate Profits and U.S. Business Fixed Investment

• 20.0
• 15.0
• 10.0
• 5.0

0.0 5.0 10.0 15.0 20.0 25.0 30.0 2003 2005 2007 2009 2011 2013 2015 Percent Change

Nominal Pre-Tax Corporate Profits

0% 7.3%

Sources: Bureau of Economic Analysis, Consensus Forecasts.

• 20.0
• 15.0
• 10.0
• 5.0

0.0 5.0 10.0 2003 2005 2007 2009 2011 2013 2015 Percent Change

Business Fixed Investment

6.1%

5.8%

Business Research Division • Leeds School of Business • University of Colorado

National Housing Starts

1 1.2 0.0 0.5 1.0 1.5 2.0 2.5 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Millions

Sources: U.S. Census Bureau and Consensus Forecasts.

Business Research Division • Leeds School of Business • University of Colorado

Money, Interest Rates, and Prices

Business Research Division • Leeds School of Business • University of Colorado

Interest Rates

Source: U.S. Treasury.

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Interest Rates, 2000-2014 Percent 10-Year T-Note 3-Month T-Bill

Business Research Division • Leeds School of Business • University of Colorado

• 3
• 2
• 1

1 2 3 4 5 6 Nov 2000 Nov 2001 Nov 2002 Nov 2003 Nov 2004 Nov 2005 Nov 2006 Nov 2007 Nov 2008 Nov 2009 Nov 2010 Nov 2011 Nov 2012 Nov 2013 Nov 2014 Year-over-Year Percent Change All items Shelter All items less food and energy

National Inflation

Source: Bureau of Labor Statistics (SA).

Business Research Division • Leeds School of Business • University of Colorado

• Global output and trade growth modest
• Value of the dollar strengthening
• GDP growth accelerates
• Fiscal tightening
• Housing continues to recover
• Balance sheets getting stronger
• Consumers active
• Business investment grows
• Inflation and interest rates remain low

Summary

Business Research Division • Leeds School of Business • University of Colorado

Colorado Economy

Business Research Division • Leeds School of Business • University of Colorado

Colorado Population, Employment, and Prices

Business Research Division • Leeds School of Business • University of Colorado 10 20 30 40 50 60 70 80 90 100 2005 2007 2009 2011 2013 2015 Thousands

Change in Colorado Population 2005-2015

Source: Colorado Demography Office.

In 2013 . . .

• Among top 5 states for absolute

growth

• 3rd fastest for percentage growth
• 22nd-most population in U.S.
• Continued net migration into the

state

• 83% of population in 12 Front

Range counties

Change in Population

Business Research Division • Leeds School of Business • University of Colorado

Colorado Employment Growth

Jobs Added

61.3

• 120
• 100
• 80
• 60
• 40
• 20

20 40 60 80 100 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Thousands

Sources: Colorado Department of Labor and Employment, BEOF Committee Members.

Business Research Division • Leeds School of Business • University of Colorado

Colorado Employment

Months to Recovery

Source: Bureau of Labor Statistics (Seasonally Adjusted).

• 7.0
• 6.0
• 5.0
• 4.0
• 3.0
• 2.0
• 1.0

0.0 1.0 2.0 3.0 4.0 5.0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 Percent Number of Months Since Peak

Colorado Employment Months to Recovery

January 2001-May 2007 January 2008-September 2014

Business Research Division • Leeds School of Business • University of Colorado

Employment Recovery

National, State, and Local

Source: Bureau of Labor Statistics (Seasonally Adjusted).

• 8.0
• 6.0
• 4.0
• 2.0

0.0 2.0 4.0 6.0 8.0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80 84 Percent Number of Months Since Peak National Colorado Colorado Springs Boulder Denver

Business Research Division • Leeds School of Business • University of Colorado

Employment Recovery

National, State, and Local

• 15.0
• 10.0
• 5.0

0.0 5.0 10.0 15.0 20.0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80 84 Percent Number of Months Since Peak National Colorado Colorado Springs Greeley

• Ft. Collins-Loveland

Pueblo Grand Junction Boulder Denver

Source: Bureau of Labor Statistics (Seasonally Adjusted).

Business Research Division • Leeds School of Business • University of Colorado

Employment Change

2013-2014

2012 PBS Const TTU EHS L&H Govt Finance Other Mfg Mining Info 2013

2,370 2,380 2,390 2,400 2,410 2,420 2,430 2,440 2,450

Total jobs gained: 61,600 Total jobs lost: 300 Net change: 61,300

Employment in Thousands

Source: Bureau of Labor Statistics, Current Employment Statistics (NSA).

Business Research Division • Leeds School of Business • University of Colorado

Employment Change 2014-2015

2 4 6 8 10 12 14

Information Other Services Manufacturing Natural Resources and Mining Financial Activities Government Construction Trade, Transportation, and Utilities Education and Health Services Leisure and Hospitality Professional and Business Services

Thousands of Jobs

Business Research Division • Leeds School of Business • University of Colorado

Construction

Value of Construction

Nonresidential 30% Nonbuilding 14% Residential 55%

Photo Courtesy www.rtd-fastracks.com

Business Research Division • Leeds School of Business • University of Colorado

Housing Units vs. Households

Annual Change

10,000 20,000 30,000 40,000 50,000 60,000 70,000 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 Households

2000-2007 – 125,000 more housing units than households

Source: Colorado State Demography Office. Data as of September 2014.

Housing Units

2008-2013 –96,600 more households than housing units

Business Research Division • Leeds School of Business • University of Colorado

Federal Housing Finance Agency (FHFA)

House Price Index

Source: Federal Housing Finance Agency, All Transactions Indexes.

• 1.0 1.0 3.0 5.0 7.0 9.0 11.0

Pueblo Grand Junction Colorado Springs Greeley Fort Collins Boulder Denver-Aurora-Lakewood Percent Colorado 8.7%

Federal Housing Finance Agency Home Prices by MSA Q3 2013 – Q3 2014

• 1.0

0.0 1.0 2.0 3.0 Pueblo Grand Junction Colorado Springs Greeley Fort Collins Boulder Denver-Aurora-Lakewood Percent Colorado 1.8

Federal Housing Finance Agency Home Prices by MSA CAGR Q3 2004 – Q3 2014

Business Research Division • Leeds School of Business • University of Colorado

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Residential Building Permits 2006-2015

32,000

Impacted by:

• Household formation
• Mortgage interest rates
• Construction defects law
• Demographics

Residential Building Permits

Sources: U.S. Census Bureau and Colorado Business Economic Outlook Committee.

Multifamily Single Family

Business Research Division • Leeds School of Business • University of Colorado

Value of Construction

Sources: McGraw-Hill Construction Dodge Research and Analytics and Colorado Business Economic Outlook Committee.

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $ Millions

Nonbuilding Residential

$13.4 B

Nonresidential

Business Research Division • Leeds School of Business • University of Colorado

Manufacturing Real GDP

Colorado

• 10.0%
• 5.0%

0.0% 5.0% 10.0% 15.0% 20.0% 5,000 10,000 15,000 20,000 25,000 1997 1999 2001 2003 2005 2007 2009 2011 2013 Annual Percentage Change

Current US Dollars (Billions)

Colorado Manufacturing Real GDP 1997-2013

$19.5

Source: Bureau of Economic Analysis.

Business Research Division • Leeds School of Business • University of Colorado

Retail Trade Sales

Sources: Colorado Department of Revenue and Colorado Business Economic Outlook Committee.

7.0

• 15.0
• 10.0
• 5.0

0.0 5.0 10.0 2006 2008 2010 2012 2014 Percent Change Nominal Growth Real Growth

Colorado Retail Trade Sales 2006-2015

50 55 60 65 70 75 80 85 90

Colorado Taxable Retail Sales 12-Month Rolling Sum

12-Month Rolling Sum, $ Millions

Business Research Division • Leeds School of Business • University of Colorado

WTI Oil Price

Source: EIA, Cushing, OK WTI Spot Price FOB (Dollars per Barrel).

0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 2004 2005 2006 2006 2007 2008 2008 2009 2010 2010 2011 2012 2012 2013 2014 2014 Dollars per Barrel December 29, 2014: $53.46 December 30, 2013: $98.90 July 3, 2008: $145.31

Average 2004-2014

Business Research Division • Leeds School of Business • University of Colorado $8,000 $8,500 $9,000 $9,500 $10,000 $10,500 FY2012-13 FY2013-14 FY2014-15 FY 2015-16 $ Millions

General Fund Projections

March 2013 December 2012 June 2013 Dec 2013 September 2014 Sept 2013 Mar 2014 June 2014 December 2014

Colorado General Fund

Gross Revenue (excluding reserves, diversions, and transfers)

Source: Colorado Office of State Budgeting and Planning, excluding reserves, diversions, and transfers, December 2014.

$6,000 $6,600 $7,200 $7,800 $8,400 $9,000 $9,600 $10,200 $10,800 $11,400 FY 2007 FY 2009 FY 2011 FY 2013 FY 2015 FY 2017 $ Millions

Colorado General Fund

Business Research Division • Leeds School of Business • University of Colorado

Colorado Employment Growth

Jobs Added, 1991-2015

• 150
• 100
• 50

50 100 1991 1995 1999 2003 2007 2011 2015 Thousands

Sources: Bureau of Economic Analysis, NIPA Table 3.18B, Consensus Forecasts.

Best years since 2000

Business Research Division • Leeds School of Business • University of Colorado

• Colorado outperforms nation in

employment growth

• Growing population
• Strong in-migration
• Home prices rising slowly, steadily
• Falling unemployment
• Labor Force Pressures

State Summary

Business Research Division • Leeds School of Business • University of Colorado

Colorado Ranking Among Other States

Metric 1-Year 3-Year 5-Year 10-Year Real GDP Growth 6 8 13 15 Employment Growth 4 4 8 10 Population Growth 3 4 4 7 Personal Income Growth 6 8 12 19 PCPI Growth 28 17 40 40 PCPI 17 16 12 11 Average Annual Pay Growth 43 27 28 31 Average Annual Pay 14 13 11 12 Unemployment Rate 26 29 18 36 Labor Force 22 16 20 9 FHFA Home Price Index 7 10 3 11

Data Sources: Bureau of Economic Analysis, Bureau of Labor Statistics, U.S. Census Bureau, Federal Housing Finance Agency, and the Colorado State Demography Office. BRD calculations. Note: 1-year, 3-year, and 5-year are based on the compound annual growth rate.

Business Research Division • Leeds School of Business • University of Colorado

U.S. and Colorado Economies

Q1 2004 – Q1 2013

25 30 35 40 45 50 55 60 65 70 75 Q1 2004 Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015

National and State Expectations

Colorado United States Index (50=Neutral)

Business Research Division • Leeds School of Business • University of Colorado

Employment and New Entity Filings

Note: Solid line displays actual seasonally adjusted employment numbers; dotted line reflects calculated forecasts. Source: Seasonally adjusted. Colorado total nonfarm employees from the Bureau of Labor Statistics, Current Employment Statistics (CES), calculations by BRD research team.

60,000 65,000 70,000 75,000 80,000 85,000 90,000 95,000 100,000 105,000 2,150 2,200 2,250 2,300 2,350 2,400 2,450 2,500 2,550 2007 2008 2009 2010 2011 2012 2013 2014 2015 Employment, thousands 12-month total new entity filings New Entity Filings Employment

Business Research Division • Leeds School of Business • University of Colorado

Colorado Economic Indicators

Year Consumer Price Inflation Percent Change Retail Sales Percent Change Personal Income Unemployment Rate Percent Change Employment 2012a 1.94 5.50 6.28 7.83 2.40 2013a 2.77 4.76 3.02 6.77 2.96 2014 2.75 9.16 5.38 5.26 2.71 2015 2.12 6.86 6.28 4.11 2.80 2016 2.23 6.90 7.13 4.50 3.22 2017 2.46 5.98 6.30 4.45 2.10 2018 2.60 4.20 5.08 4.46 1.22 2019 2.56 3.09 3.77 4.55 0.99 2020 2.48 2.97 3.57 4.56 1.18

aHistorical data. Note: Represents annual averages of the month-to-month growth rate.

Business Research Division • Leeds School of Business • University of Colorado

• Global Growth
• Fed exit
• Stronger dollar
• Median family income
• Political gridlock
• Cost of housing
• Price of oil
• Availability of labor
• Availability/Cost of space

Concerns

Business Research Division • Leeds School of Business • University of Colorado

Boulder County

Courtesy of the Regents of the University of Colorado.

Business Research Division • Leeds School of Business • University of Colorado

Real Gross Domestic Product

Boulder MSA

• 12%
• 10%
• 8%
• 6%
• 4%
• 2%

0% 2% 4% 6%

$0 $5,000 $10,000 $15,000 $20,000 $25,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Percentage Change

Millions of Chained 2009 Dollars

Source: Bureau of Economic Analysis.

Business Research Division • Leeds School of Business • University of Colorado

Boulder County

Employment and Education, 2013

Management 5%

• Bus. and

financial

• perations

7% Computer and math 7% Architecture and engineering 4% Science 3% Education training 7% Arts and entertainment 2% Healthcare 5% Other 59%

Employment by Occupation

Sources: Bureau of Labor Statistics, Quarterly Census of Employment and Wages; Census, 2013 American Community Survey 1-Year Estimates

Educational Attainment Adults over age 25 with a bachelor’s degree or higher

• U.S.

29.6%

• Colorado

37.8%

• Boulder

58.5% Adults over age 25 with a high school diploma

• U.S.

86.6%

• Colorado

90.5%

• Boulder

93.0%

Business Research Division • Leeds School of Business • University of Colorado

Boulder County

Employment and Wages, 2013

Manufacturing 14% Retail trade 5% Healthcare and social assistance 10% Information 9% Government 15% Professional Business Services 25% Other 23%

Wages by Industry

Manufacturing 10% Retail trade 10% Healthcare and social assistance 12% Information 5% Government 16% Professional Business Services 15% Other 32%

Employment by Industry

Sources: Bureau of Labor Statistics, Quarterly Census of Employment and Wages.

Business Research Division • Leeds School of Business • University of Colorado

Total Nonfarm Employment

Colorado

2,000 2,100 2,200 2,300 2,400 2,500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 60 Months 59 Months

Employment (000s)

Source: Bureau of Labor Statistics, Current Employment Statistics (SA).

Business Research Division • Leeds School of Business • University of Colorado

Non-Ag Employment

Boulder MSA

145.0 150.0 155.0 160.0 165.0 170.0 175.0 180.0 185.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Thousands 55 Months +9,300 jobs, 5.5% 146 Months

Source: Bureau of Labor Statistics, CES Data Series, SA.

Business Research Division • Leeds School of Business • University of Colorado

$6,500 $7,000 $7,500 $8,000 $8,500 $9,000 $9,500 $10,000 Q2 2002 Q2 2004 Q2 2006 Q2 2008 Q2 2010 Q2 2012 Q2 2014 $ Millions

Boulder County Wages

Annual Rate (4Q Rolling)

Source: Bureau of Labor Statistics, QCEW Data Series, NSA.

+$1.1 B

Business Research Division • Leeds School of Business • University of Colorado

$40,000 $42,000 $44,000 $46,000 $48,000 $50,000 $52,000 $54,000 $56,000 $58,000 $60,000 Q2 2002 Q2 2004 Q2 2006 Q2 2008 Q2 2010 Q2 2012 Q2 2014 $ Millions

Boulder County Average Wages

Annual Rate (4Q)

Source: Bureau of Labor Statistics, QCEW Data Series, NSA.

+9.7%

Business Research Division • Leeds School of Business • University of Colorado

$10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 Dollars Colorado Statewide

2013 Average Annual Wages Front Range

$58,009

Source: Bureau of Labor Statistics, QCEW.

Business Research Division • Leeds School of Business • University of Colorado

Boulder MSA Employment Change 1-Year Change, November 2014

Leisure and Hospitality Information Financial Activities Other Services Mining, Logging, Construction Manufacturing rade, Transportation, and Utilities

• fessional and Business Servi

Education and Health Services Government

• 500

500 1,000 1,500 2,000 2,500 Jobs

1-Year Employment Growth

Business Research Division • Leeds School of Business • University of Colorado

Boulder MSA Employment Change 10-Year Change, November 2014

Mining, Logging, Construction Manufacturing Information Financial Activities Other Services rade, Transportation, and Utilities Leisure and Hospitality Education and Health Services

• fessional and Business Servi

Government

• 2,000

2,000 4,000 6,000 8,000 10,000 Jobs

Business Research Division • Leeds School of Business • University of Colorado

Single Family v. Multifamily Permits Boulder MSA

200 400 600 800 1,000 1,200 1,400 1,600 1,800 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Permits

Multifamily Single Family

Sources: U.S. Census Bureau.

200 400 600 800 1,000 1,200 1,400 1,600 1,800

2013 YTD 2014 YTD

Permits

Business Research Division • Leeds School of Business • University of Colorado

Median Price Homes Sold: Single Family vs. Number of Single Family Homes Sold - Boulder

300 400 500 600 700 800 900 1,000 1,100 300,000 350,000 400,000 450,000 500,000 550,000 600,000 650,000 700,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014* $ Number of Homes Sold

Source: Boulder Area Realtor Association. *YoY through November 2014.

Business Research Division • Leeds School of Business • University of Colorado

Commercial Vacancy Rates: City of Boulder

Source: Newmark Grubb Knight Frank.

3 6 9 12 15 18 Q4 05 Q4 07 Q2 09 Q2 10 Q2 11 Q2 12 Q2 13 Q2 14 Office Warehouse Flex Retail Percent

Business Research Division • Leeds School of Business • University of Colorado

Boulder County Value of Construction

200 400 600 800 1,000 1,200 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 $ Thousands Value of Construction, Colorado 2003-2013 Nonbuilding Residential Nonresidential

200 400 600 800 1,000 1,200 1,400

2013 2014 December YTD 2013-2014

$ Thousands

Sources: McGraw-Hill Construction Dodge Research and Analytics.

Business Research Division • Leeds School of Business • University of Colorado

Retail Sales – State Collections

Boulder County v. Colorado

Source: Colorado Department of Revenue.

3.2 3.4 3.6 3.8 4.0 4.2 4.4 4.6 4.8

Boulder County Taxable Retail Sales, 12-Month Rolling Sum, 2005-2014

$ Billions

100 105 110 115 120 125 130 135 140 145 Taxable Retail Sales

Colorado Boulder County Indexed

Business Research Division • Leeds School of Business • University of Colorado

Venture Capital Investment

City of Boulder

Source: PwC/NVCA MoneyTree, Boulder County Business Report.

Boulder VC Industry Allocation

Biotechnology 16% Software – 70% IT Services 1% Industrial/Energy 5%

$0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 Q1 07 Q3 07 Q1 08 Q3 08 Q1 09 Q3 09 Q1 10 Q3 10 Q1 11 Q3 11 Q1 12 Q3 12 Q1 13 Q3 13 Q1 14 Q3 14 Boulder Quarterly VC Funding

(In Millions)

Business Research Division • Leeds School of Business • University of Colorado

Thank you

Courtesy of the Regents of the University of Colorado.