1. www.mavcap.com 8 th MEXPA SEMINAR April 2015 1

2. Introduction to MAVCAP Background Funding Spectrum Where MAVCAP Stands in the Public Funding Landscape MAVCAP’s Ecosystem Grant vs Equity vs Debt Benchmarking the Agencies MAVCAP’s Key Activities Achievements Investment Criteria Investment Process Portfolio Companies OSP3 Program Jointly-owned Funds Agenda 2

3. 3 Introduction to MAVCAP

4. Background SNAPSHOTTALENT Investment personnel10 Years of combined investment experience ~100 YEARS S ource: Securities Commission, MAVCAP SNAPSHOTINDUSTRY REGISTERED VC *56 ACTIVE VC25 MAVCAP - RELATED VC12 Background Incorporated in 2001 Initial fund size RM500 mil Invested in >100 companies Direct Investment program Outsourced Partners program Asset under management ~RM970 mil Objective Spur the growth of the VC industry through active participation in entrepreneurship in the technology sector, and delivering commercially viable investments. 4

5. Funding Spectrum 5 Outsourced Partners Program Cash flow Friends & Family Angels Crowdfunding Incubator/accelerator Seed/early-stage VC Government grants Formal VC/growth capital Private equity IPO Corporate VCCorporate accelerator Specialty bank loans/guarantees High Risk (Risk Level/Appetite) Low Risk Low Valuation(Value Of The Company) High Valuation Grants/Soft Loans (Typical Mode of Disbursement) Equity Government-led(Likely Participants) Private sector-driven Small investments(Typical Investment Size) Large investments

6. Pre-seedSeedStart-up/Early stageExpansionScaled-up Cradle Fund Pre-Seed (ICT, E&E and other High Technology) MAVCAP, VC (ICT)& High Technology) Government Grants (MOSTI) (ICT, Biotechnology, Industrial, manufacturing, and others) MTDC Grants and VC (Other than ICT) Debt Financing, MDV (ICT, Biotechnology and Green Technology) Kumpulan Modal Perdana, VC (ICT and High Technology) Government Grants (MDeC) (ICT) Government Grants (Biotech Corp) (Biotechnology) Angels and angels network Where MAVCAP stands in the Public Funding Landscape 6

7. MAVCAP’s Ecosystem 7 Outsourced Partners Program Outsourcee or Co- invested with MAVCAP Collaboration with MAVCAP

8. Grant vs Equity vs Debt 8 TypeGrantEquity (Venture Capital)Loan Source Cradle, MTDC, SME Corp MAVCAP, MTDC, KMP MDV Goal Disbursement Returns Repayment Duration 1-2 years 3 – 5 years 1 – 10 years Payback Only if defaulted Upon exit or as mutually agreed IPO, Trade Sale, Shareholder Buy- back Monthly installment Reporting Milestone or Reimbursement basis Monthly updates Representation on the Board of Directors Monthly/Quarterly updates Upsides No equity dilution Zero/minimal cost Hands-on approach No equity dilution Downsides Bureaucracy Specific items Hands-off approach Equity dilution Expensive cost of financing Need track record Collaterals Hands-off approach

9. Benchmarking the Agencies 9

10. 10 Key Activities Provide risk capital to companies in the field of technology and high- growth sector; Drive the development of the local venture capital industry Direct Investment Program Outsourcing Program  Early and late stage companies with limited operating history.  Technology companies that are too risky for the capital market/bank loan.  Technology companies offering profitable opportunities.  Increase the number of venture capital funds.  Provide opportunities for the existing fund managers to strengthen their investment track record.  Encourage private sector participation in the activities of venture capital fundraising. Our MandateOur ProgramsOur Targets

11. 11 Achievements ImpactAchievement Increase in the number of companies getting venture capital funding Direct investments into 76 companies (25 companies are Bumiputera-owned) Indirect investments into 62 companies (15 companies are Bumiputera-owned). Increase in the number of merger and acquisitions3 M&A involving 7 companies. Higher profit returnsListing of 7 companies on stock exchange. Sector penetrationFinancial services, transportation, new media, energy, education, healthcare & telecommunications. Market penetrationMalaysia, Singapore, Taiwan, China, UK, Germany, Australia, Thailand, Indonesia, Filipina, India, UAE. Import of foreign technology into MalaysiaCPK Solutions, 3DI Export of Malaysian technology to other countriesTranglo, iGene, Unrealmind Interactive, GPro Technologies, iNavigate, Hopetech, Kelington Group, ADA Cellworks, Fibon Berhad, Bsmart Graduate trainee exposure to venture capital67 trainees since 2009 (including 3 foreigners) Direct Investment

12. 12 Achievements Outsourcing Program ImpactAchievement Increase in the number of venture capital funds 12 new venture capital funds set up Increase in the size of venture capital funds RM678 million raised (RM375 million from MAVCAP and RM303 million from external sources), RM79 million raised from Bumiputera sources. Increase in the number of venture capital professionals Total ~34 VC professionals trained (16 are Bumiputera). Increase in the involvement by individuals and corporations in fundraising activities 31 individuals and corporate investors involved. Involvement of international parties in fundraising activities 14 foreign investors involved with funds raised amounting to RM175 million.

13. 13 Investment Criteria (not exhaustive) Scalable Huge markets High returns Technology- driven Generated traction Attractive valuation Malaysia- oriented/related IP-protected Strong management

14. 14 Submission of Business Plan or Executive Summary Investment Process (not exhaustive)

15. 15 Portfolio Companies

16. 16 OSP3 Program

17. 17 OSP3 Program

18. Jointly-owned Funds  First success: Partnership with Axiata 18

19. 19 Thank You