1. Early-Stage Technology Business Development Presented By: Aaron Hagar Technology Development Manager Wisconsin Department of Commerce 3/23/2011

2. Early Stage Investment Tax Credits Investors in QNBVs may be eligible for a 25% income tax credit Businesses can qualify for up to $2 million in tax credits ($8 million in investment) $20.5 million in venture credits $20 million in angel credits $250,000 in nanotech credits

3. QNBV Q ualified N ew B usiness V enture Less than 10 years, $10 million in investment, and 100 employees Based in Wisconsin Pre-commercialization Innovative / proprietary technology Not involved in real estate development, insurance, banking, lending, lobbying, political consultation, professional services provided by attorneys, accountants, business consultants, physicians or health care consultants, wholesale or retail trade, leisure, hospitality, transportation or construction

4. Other Technology Programs Technology Bridge Grants/Loans (TBG) –Maintain operations between SBIR awards Technology Matching Grants (TMG) –SBIR matching funds Technology Venture Fund Loans (TVF) –Enhance ability to attract risk capital QNBV Capital Gains –Cap gains deferral for investing in QNBV

5. Results Angel Investments –2005: 368 investments @ $12 million ($32,608/investment) –2009: 735 investments @ $20.8 million ($28,377/investment) Venture Investments –2005: 3 investments @ $501,000 ($167,000/investment) –2009: 39 investments @ $12.9 million ($330,824/investment)