Equity Spectrum Presentation

The Equity Spectrum

David Kirkpatrick

Fueling Growth for Florida’s Economy and Companies

Durham, NC 919.530.1177 New York, NY 212.209.3042 www.sjfund.com

Getting Ready for Equity™ Disney Entrepreneur Center Orlando, FL July 23, 2008 >

Raising Equity – In Good Company?

Fannie Mae, Freddie Mac Merrill Lynch, National City Bank, RBS Google, Yahoo, Federal Express Intel, Genentech, Microsoft, Home Depot

•Freddie commits to raising $5.5 bln in capital •Mortgage giant registers with the SEC; limited interest from investors seen •Last update: 5:37 p.m. EDT July 18, 2008 •SAN FRANCISCO (MarketWatch) -- Freddie Mac committed on Friday to raising $5.5 billion in capital and said it has registered with the Securities and Exchange Commission.

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Venture Capital Impact on Economy

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VC: 0.2% GDP INVESTED INTO 17.6% GDP IN REVENUES

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VC BACKED COMPANIES EMPLOY 300,000+ IN FLORIDA AND HAVE $74b+ IN REVENUEÆ

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The Equity Spectrum – From Individuals to Companies

PUBLIC COMPANY COMPARABLES

www.privateequitycouncil.org/studiesresearch/

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FLORIDA – THIRD HIGHEST STATE ALLOCATION TO P.E. Florida State Board of Administration manages $123B of which 3% is allocated to private equity, or $3.3B, with a target allocation of $6.1B as of a 2007 survey. Private Equity Council

www.sbafla.com

LIFECYCLE OF VENTURE CAPITAL FUNDS

•http://www.capman.com/En/AboutCapMan/PrivateEquityInvestments/Privateequityfunds/

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FLORIDA: 6% OF U.S. POPULATION, 2% OF VC INVESTMENT PricewaterhouseCoopers/National Venture Capital Association MoneyTree(tm) Report Investment Amount Year-Qtr

All

Florida

# of Deals %Florida

All

Florida

% Florida

1995-1

$

1,704,471,700

$

77,346,200

4.54%

497

16

3.22%

1996-1

$

2,414,445,200

$

101,367,000

4.20%

573

10

1.75%

1997-1

$

3,047,368,500

$

189,476,900

6.22%

759

18

2.37%

1998-1

$

4,118,197,500

$

159,593,000

3.88%

847

21

2.48%

1999-1

$

6,611,857,400

$

191,228,000

2.89%

916

29

3.17%

2000-1

$ 28,386,227,800

$

1,002,016,300

3.53%

2128

49

2.30%

2001-1

$ 12,826,312,300

$

249,641,000

1.95%

1285

31

2.41%

2003-1

$

4,301,414,100

$

57,472,000

1.34%

693

12

1.73%

2004-1

$

5,277,910,400

$

128,645,800

2.44%

711

19

2.67%

2005-1

$

5,054,231,500

$

98,356,900

1.95%

726

16

2.20%

2006-1

$

6,406,574,500

$

37,306,000

0.58%

871

12

1.38%

2007-1

$

7,502,944,400

$

162,029,800

2.16%

861

14

1.63%

2008-1

$

7,142,004,900

$

115,500,100

1.62%

922

8

0.87%

Average

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2.36%

Average

2.06%

THE EQUITY OPPORTUNITY IN FLORIDA Leading allocation of pension funds to private equity and venture capital Strong entrepreneurial climate Underserved by venture capital firms Excellent universities and technology commercialization potential Access to international markets Ahead of demographic trends for the USA

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© 2008 SJF Advisory Services

David Kirkpatrick

THANK YOU! Durham, NC 919.530.1177 New York, NY 212.209.3042 www.sjfund.com

Getting Ready for Equity™ Disney Entrepreneur Center Orlando, FL July 23, 2008

Resources: www.nvca.org www.privateequitycouncil.org www.pwcmoneytree.com www.sbafla.com www.evca.eu >