Program of the Rocket Ventures Greg Knudson VP of Technology Director of Rocket Ventures The Northwest Ohio Manufacturing Forum November 20, 2009

NWO Manufacturing Forum Areas of Opportunity RV has a need to find “Spin-Off” opportunities –Small to large companies with technology RV is looking for manufacturing companies for development, proto-type development, manufacturing –Lockrey Mfg. and Pinnacle Technologies models – across technologies RV needs to find “JV” partners for start-up companies –Bringing strengths together (engineering, design, manufacturing)

Business Expansion & Attraction Business Planning Resources for Entrepreneurs Starting Technology-Based Companies Business Management, Networking and Capital Resources to Commercialize Technology-Based Companies

Program Definition Pre-Seed, Early Stage Venture Fund Provide Management, Networking and Capital Resources Sponsored by - “Ohio Third Frontier Program” Program Financing: $15.0 Million ODOD $ 7.5 Million Private Investors $22.5 Million

Phases of Development Regional Growth Partnership’s Launch Rocket Ventures IMAGINING the Commercial Opportunity IMAGINING INCUBATING to Define Commercialization DEMONSTRATING Products & Processes in Commercial Viability Market Entry to Prove Commercial Viability Growth & Sustainability to Generate Financial Returns Mobilizing Resources for Incubating Mobilizing Resources for Demonstrating Mobilizing Resources for Market entry Mobilizing Resources for Growth & Sustainability INCUBATING DEMONSTRATING MARKETING GROWTH “Valley of Death” Business Development

Pharmaceuticals, medical delivery systems, medical devices, bioinformatics Biomedical/Biotechnology Clean Tech – wind, solar Distributed generation Biomass and biofuels (e.g. cellulosic ethanol, biodiesel, algae to oil) Advanced/Alternative Energy Composites, nano-materials and advanced ceramics ICE: Instrumentation, advanced control systems, electronics, Advanced manufacturing technologies and power/propulsion systems Advanced Materials & Manufacturing Technologies Targeted Technologies

Regional Partners and Collaborators Advan. Materials Commercialization Ctr. Air Force Research Lab Annual Collab. for Entrepreneurship (ACE) BioOhio Bluffton Center of Entrepreneurship COACT EMTEC Gorillas & Gazelles Ohio Aerospace Institute Ohio’s IT Alliance / Get It Green Ohio Ohio Manufacturers’ Association (OMA) Polymer Ohio State of Ohio / OHIO THIRD FRONTIER Toledo Business Journal Toledo-Lucas County Port Authority Toledo Regional Chamber of Commerce Greater Findlay Inc. (GFI) Great Lakes Entrepreneur's Quest (GLEQ) Junior Achievement MAGNET Market Access Group New Enterprise Forum (Ann Arbor) Northwest Ohio Regional Economic Development (NORED) Toledo Metropolitan Area council of Governments (TMACOG) BGSU Ohio Northern Owens Community College University of Findlay University of Toledo

Located in Northwest Ohio Early Stage: Imagining, Incubating and Demonstrating Phases Scalable to $30M - $50M in 5 to 7 years Targeted areas in Technology: Biomedical, Alternative Energy, Advanced Materials and Manufacturing Technologies Intellectual Property (IP) Documented & Owned by / Licensed to Company Clear Business Plan and Exit Strategy Portfolio Company Screening Criteria

Program Elements Enhanced Business Management Services Ignite! Development Grant The Pre-Seed Fund

Rocket Ventures Enhanced Business Management Services

 Provide Hand’s-on:  Business Management Support : o Market assessment o Financial modeling and planning o Finding sources of capital o Management expertise o Technology readiness o Marketing, sales and public relations o Grant pursuit assistance o Exit strategy development

Rocket Ventures Ignite! Development Grants

Program Elements Ignite! Development Grant  Up to $50,000 per Grant  26 Awarded  Funding to Accelerate Commercialization  Specific activities: o Marketing Analysis and Planning o Prototype Development o Beta Site Testing o Business and Technology Validation

Lockrey Manufacturing Keyboard Stand CoreTrainer

Rocket Venture Fund, LLC 17

Program Elements The Pre-Seed Fund  $13.5 Million - $6.0M State / $7.5M Private Investors

Investment Process 1.Inquiry Via Electronic “Intake Form” 2.Fit with the Rocket Ventures Criteria 3.MOU Signed 4.Initial Company Validation (Technology / Business) 5.RV Team Analysis, Review, Comment and Decision 6.RV Commercialization Services Begin Ignite! Grant – Potential / VC Primer / CEO Primer 7.Due Diligence on High Potential Clients 8.Term Sheet Development and Negotiation 9.Formal Presentation to Investment Committee 10.Investment Closing / Portfolio Company Management

Risk and Return Technology Risk * Disruptive? * Problem Solving? * IP / Technically Feasible? * Infrastructure to Support? Market Risk * Proof-of-Relevance / Value? * Customer Acceptance /Pathway? * Multiple Uses / Applications? * Competitive Advantages? Financial Risk * Money Needed / Why / When? * Co-Investment? * Time to First Revenue? * Time to Profitability / Exit? People Risk * Management Team? * Track Record? * Domain Knowledge? * Network / Alliances / Advisors? * Risk Assessment - 4 Ways -

21 Rocket Ventures Portfolio Companies

Rocket Ventures Performance Metrics

Client Company Profile SOURCES OF DEAL FLOW + University Spin-Offs+ Regional Outreach – 18 Counties + Company Spin-Offs + “ Garage Technologies” + Joint Venture Partnerships+ Marketing, Communications, Events

BioSys Medical DenDroCo, LLC

9 Investments inquiries 60 new start-ups 50 active clients 30 state / federal grants 26 Ignite Grants awarded

Innovation to Commercialization Continuum Innovation Entrepreneurship Capital Formation Wealth / Job Creation =+ +

NWO Manufacturing Forum Areas of Opportunity RV has a need to find “Spin-Off” opportunities –Small to large companies with technology RV is looking for manufacturing companies for development, proto-type development, manufacturing –Lockrey Mfg. and Pinnacle Technologies models – across technologies RV needs to find “JV” partners for start-up companies –Bringing strengths together (engineering, design, manufacturing)

Thank you

Questions / Comments 29

Greg Knudson, VP and Director Rocket Ventures Ext