Seed financing needs disruptive innovation You cant discover new oceans unless you lose sight of the shore

Source: Clean Economy Living Planet, Roland Berger Strategy Consultants 2 Clean Energy Technology (CET) is a growth market that is expected to reach EUR 1.6 trillion by 2020 and thus is an attractive business opportunity Investment market (I) Cleantech market

Source: Cleantech Market Insights Database There were 154 cleantech M&A deals in 3Q10 totaling $4.5 billion. While the volume of deals in 3Q10 declined, there is reason to believe that the buoyancy being seen in the wider M&A market may begin to show through during upcoming quarters. Cleantech predicts a full-year total for 2010 of about $7.3 billion, which would be the second largest annual total ever. The deal number does however look set to exceed 650, a new annual record. Industry sale Investment market (II) Transaction market 3 Source: Cleantech Market Insights Database Private Equity

Regional Focus European and Israeli companies raised $381 million in 66 VC rounds, down 22% from 2Q10 in terms of amount invested but up 12% in terms of deals done. This underlines the capital-efficient nature of European cleantech venture investing Source: Cleantech Market Insights Database 4

Start Grants / soft loans Banks Finish? Seed funds 5 Startup financing cycle

2006Year Value 2010 Contribution to economic activity 6 Realized a turnover of EUR 16 million in 2009; Employment for 92 employees, a growth of 80% since the start; Development of 35 new, innovative products; 13 new patents & 6 unique IPR positions on IT development; Additional 7 million bank loan / financing facilities achieved Start Green Venture Capital Economic development

The technology roadmap: think big, start small and upscale quickly IPR policy based on PMCs (product market combinations) Strong guidance & monitoring on finance, business focus and team development New management after 2-4 years Realize economics of scale (gross margin improvement) Start directly with strategic alliances with strong partners Built companies; IPR exits are second bests Lessons of eco-innovation From a Venture Capital perspective 7

The entrepreneurs (United States versus European Union) Strong market resistance (institutionalized, overregulated, 110% reliability) Clean Tech innovation is capital intensive prove new end products not a application (e.g ICT) Level playing field necessary Growth equity gap (2-5 million) Corporations dont innovate, they consume innovation Universities seldom develop commercial IPR, but we need lots of research…. Barriers (I) For cleantech startups 8

Technology Commercialization Funnel Successful Exit (1) Successful Exit (1) Independently commercialized (founders, angels, seed, grant) ( ) Independently commercialized (founders, angels, seed, grant) ( ) VC candidates (100) VC candidates (100) VC invested (3) VC invested (3) Research (government, university, corporate, other) (X000s) Research (government, university, corporate, other) (X000s) 9

Overall scarcity of liquidity: fundraising takes 2-3 years Regular finance engines for Venture Capital / Private Equity are hesitating: Bank/ insurers and pension funds And If interested: only big tickets (> 50 mio EUR) VC- Incentive programs are structured nationally: with non or small options for investments abroad (SEED facility NL, Arcimedes BE, ……GE, e.g.) Trend to harmonize EU finance regulation for PE to VC sector Barriers (II) For Venture Capital Funds 10

EU regulation (almost comparable): harmonize certification Create entrepreneurs-hub, entrepreneurs for entrepreneurs (in EU) knowledge center/Exchange Feed-in (or omslagstelsel) Create cleantech consumer market (low VAT) Level playing field, account environmental costs (pollution) into products! Institutional changes EU opportunities 11

Start Green Venture Capital Flevolaan KC Naarden The Netherlands Telephone: +31 (0) Fax: +31 (0) Website: Contact

Consumer products Energy - Generation - Storage - Distribution - Trading Bridges & support structures Logistics Home Energy Generation IT Consumer electronics Sustainable technologies Start Green Investment portfolio 13