Gerald Brady Managing Director Silicon Valley Bank

Banking the Innovation Economy

Our Mission: Build Deep Relationships Give Advice Make It Easy to Do Business with Us Solve Problems To increase our clients’ probability of success

To be the premier provider of financial services and thought leadership to innovation companies, of all sizes, and their investors, world-wide 5 Vision

Differentiated Focus on “innovation” markets Mainly balance sheet lender Strong deposit franchise Diversified revenue streams Global reach

Leader THE bank for innovation companies More than 600 venture/ PE firm clients Global reputation

Established 30 years of supporting innovation 26 U.S. and 7 international offices $20.0 billion in total assets $35.5 billion in total client funds

~50% Market Share<15% Market Share<10% Market Share We work with start-ups to global corportions

Innovation: Macro-themes : Developed economies slow down / corporate growth impacted Company EPS maintained through RIFs, operational excellence programs and increased productivity – little or no focus on innovation The pace of innovation continues to accelerate – largely driven by start- ups Corporates have more cash on their balance sheet than at any other time Established leaders stumble - i.e. Nokia, Microsoft, Pfizer etc

The CEO’s agenda – looking beyond Technology impact and business model shift across all industries Technology driven disruption of existing supply chains Non-traditional alliances & partnerships accelerate i.e. GE & Google, P&G & Inverness Chinese corporates go from local to regional to global champions Innovation becomes driver for competiveness

Innovation is back on the CEO’s agenda 12 Capital market stabilization results in investors shifting focus from cost management to growth: - “where is long-term revenue growth going to coming from?” Innovation returns to the CEO agenda – as a driver of growth Increasingly, corporate venturing goes beyond “open innovation” to include: - Internal & external innovation initiatives - Corporate ventures - Licensing - Partnering - JVs - M&A

CVC is different this time 13 Internally focused Driven by R&D Evolution NOT Revolution Cost not outcome focused Little correlation with Corporate Venture Capital Internally focused Separated from CVC / Strategy Cost not outcome focused Evolution NOT Revolution Driven by R&D Internally focused Driven by R&D Evolution NOT Revolution Cost not outcome focused Little correlation with Corporate Venture Capital Greater external focus Innovation partnering Outcome driven Open to cannibalization CEO / CTO / Chief Innovation Officer led Traditional Corporate Innovation The new model for corporate innovation

The corporate ecosystem: growth is driving the need for innovation 14 MediaInternet Life Sciences F&BFMCGCleantechSemis Enterprise Software Fin ServicesCommsAutomotive Disney, Hearst, News Corp, WB Amazon, eBay, Google Glaxo, Pfizer, Roche, Takeda Pepsi, Coke, Gen Mills, Nestle Best Buy, Ikea, P&G, Unilever ABB, HON, GE, Siemens, Vestas App Mat, Arm, Intel, Nat Semi Adobe, IBM, MSoft, SAP Cisco, Juniper, Huawei, Mot BMW, GM, Honda, VW Allianz, Citi, CS, Hartford, Visa

Corporate innovation intersects all company stages 15 Mature Disruptive trends, white spaces & roadmaps Corporate Innovation M&A Partnering Distribution Venture Portfolio: Segmentation by company stage Growth Start-ups

SVB’s role: At the center of the innovation economy SVB VCs Portfolio companies Corporates Global innovation centers 16 SVB’s Role Positioned like Switzerland Neutral about: - Investors - Location - Stage - Sector Able to connect: Corporate Companies Corporate VCs Corporate Corporate