Sweden – US Entrepreneurial Forum 2010 How to Fund Your Company in Turbulent Economic Times Copyright All Right Reserved Clare J. Fairfield, Chairman

Sources of Funds Self-Financed Friends & Family Angel Investors Government Programs Strategic Partners Suppliers In-Kind Investors Service Providers Self-Generated Customers Self-Generated Clients Venture Funds

Realities of the Current Market Smaller Private Kroner All Around – Venture Capital Funds – Venture Capital Investments – Angel Investors – Angel Investments Greater Government Kroner in Many Countries Reduced Appetite for Risk Changing Regulatory Environment

Strategies & Tactics Be 110% Prepared for Meetings Use Milestones Whenever Possible Conserve, Conserve, Conserve Consider Cross Border Alliances Kroner Matching Programs Be an Industry Expert Understand Your Fundraising Audience – Domestic – US – Other Countries & Regions

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Historical Realities Venture capital funding rate 1-2% Venture capital success rate 10-20% Venture capital failure rates 20-40% Investment IRR hurdle rates driven by these statistical realities 6

Ultimate Reality Fundraising is Always Hard Even in “Easy” Fundraising Environments Some Opportunities are Shut Out Being Entrepreneurial Means Adapting to Change If this were easy, everyone would do it. It is the hard that makes it great.

Thank You Clare Fairfield Chairman, Venture Capital Institute