The Equity Spectrum

Fueling Growth for Florida’s Economy

and Companies

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Durham, NC 919.530.1177New York, NY 212.209.3042

www.sjfund.com

Getting Ready for Equity™

Disney Entrepreneur CenterOrlando, FL

July 23, 2008

David Kirkpatrick

2 © 2008 SJF Advisory Services

Raising Equity Raising Equity –– In Good Company?In Good Company?

Fannie Mae, Freddie MacMerrill Lynch, National City Bank, RBSGoogle, Yahoo, Federal ExpressIntel, 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.

Venture Capital Impact on EconomyVenture Capital Impact on Economy

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

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

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The Equity The Equity Spectrum Spectrum ––From From Individuals to Individuals to CompaniesCompanies

PUBLIC COMPANY COMPARABLES

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www.privateequitycouncil.org/studies-research/

FLORIDA FLORIDA –– THIRD HIGHEST STATE ALLOCATION TO P.E.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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PricewaterhouseCoopers/National Venture Capital Association MoneyTree(tm) Report

Investment Amount # of Deals

Year-Qtr All Florida %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 2.36% Average 2.06%

FLORIDA: 6% OF U.S. POPULATION, 2% OF VC INVESTMENT

11 © 2008 SJF Advisory Services

THE EQUITY OPPORTUNITY IN FLORIDATHE EQUITY OPPORTUNITY IN FLORIDA

Leading allocation of pension funds to private equity and venture capital

Strong entrepreneurial climateUnderserved by venture capital firmsExcellent universities and technology

commercialization potentialAccess to international marketsAhead of demographic trends for the USA

12 © 2008 SJF Advisory Services

THANK YOU!

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Durham, NC 919.530.1177New York, NY 212.209.3042

www.sjfund.com

Getting Ready for Equity™

Disney Entrepreneur CenterOrlando, FL

July 23, 2008

David Kirkpatrick

Resources: www.nvca.orgwww.privateequitycouncil.orgwww.pwcmoneytree.comwww.sbafla.comwww.evca.eu