1. www.jumpstartnj.com1 JUMPSTART NEW JERSEY ANGEL NETWORK Presentation at Pathway to Equity Financing Conference by Wayne Tamarelli, PhD Held by New Jersey Small Business Development Centers at Princeton University February 28, 2003

2. www.jumpstartnj.com2 JUMPSTART NEW JERSEY ANGEL NETWORK JUMPSTART’S VISION : JUMPSTART HELPS ITS MEMBERS WORK TOGETHER TO FINANCE AND MENTOR EARLY STAGE TECHNOLOGY BUSINESSES IN THE NEW JERSEY AREA

3. www.jumpstartnj.com3 JUMPSTART’S BACKGROUND Access to capital is a critical need for high tech companies to move from the world of science to the world of business. There is a gap between (a) early Founders, Friends and Family financing and (b) later institutional financing Angel investors bridge this gap. Angels provide more total venture capital financing nationally than institutional VC funds do For every 1,000,000 companies formed (2000 data):  45,000 (4.5%) get Angel Capital; 3,000 (0.3%) get VC Fund Capital; 300 (0.03%) get IPO Capital New Jersey’s angel investor community has lacked focus

4. www.jumpstartnj.com4 JUMPSTART’S MISSION Bring accredited investors together to actively participate in investments Be member-driven and results-driven Offer members the opportunity to realize good profits, together with satisfaction of participating in developing new ventures through mentoring Share investment leads, due diligence, and investment oversight Combine individual member investments to generate critical investment mass

5. www.jumpstartnj.com5 JUMPSTART’S INVESTMENT FOCUS Early stage New Jersey-based companies in industries that mirror the State’s dominant technology sectors, including: Communications Electronics Advanced Manufacturing Life Sciences Information Technology Energy Environmental Engineering

6. www.jumpstartnj.com6 WHAT JUMPSTART IS LOOKING FOR Early stage growth technology companies with high potential return for investors Companies with their primary activity centered in or relocating to New Jersey or immediate environs Fields that align with expertise of our members Businesses that could benefit from expertise of our members through board membership and mentoring Funding requirements of $200,000 or more from our members Likelihood of any needed subsequent institutional funding being obtained in order to reach positive cash flow and liquidity for investors Reasonable valuation commensurate with the opportunities and risks

7. www.jumpstartnj.com7 JUMPSTART OFFICERS: Chairman: Wayne Tamarelli Vice Chairman: Chip Upjohn JUMPSTART MEMBERS: A group of experienced angel investors, individual venture capitalists, and entrepreneurs SPONSORED BY: Hale and Dorr LLP Amper, Politziner and Mattia SUPPORTED BY: New Jersey Technology Council New Jersey Economic Development Authority

8. www.jumpstartnj.com8 JUMPSTART’S ORGANIZATION

9. www.jumpstartnj.com9 SOME KEY POINTS Jumpstart New Jersey Angel Network was recently formed (September, 2002). Members invest as individuals. There will be no pooling of funds. Members invest by forming deal teams, each with a member lead investor. Co-investment with other angel groups or funds is possible. Members will be value-added investors, providing support to assist companies succeed.

10. www.jumpstartnj.com10 JUMPSTART’S DEAL PROCESS Only an investment candidate sponsored by a Jumpstart Member will be considered by the Screening Committee Screening Committee decides which candidates are invited to present themselves to the full Membership Membership then decides if there are sufficient interested members to form a Deal Team Deal Team selects Lead Investor, conducts due diligence, and negotiates deal terms Deal Team decides whether to coinvest with other angels or funds Individual members of the Deal Team make the investments

11. www.jumpstartnj.com11 INVESTMENT CANDIDATES for JUMPSTART Attorneys, accountants, banks, universities, funds, etc. may recommend investment candidates by completing our recommendation form. A recommendation helps ! Entrepreneurs may submit an executive summary directly by writing or emailing to : Jumpstart New Jersey Angel Network c/o NJTC 1001 Briggs Road, Suite 280 Mt. Laurel, NJ 08054 Attn: Ellen Minardo Email address: info@jumpstartnj.com Due to capacity limits and the rules governing Jumpstart, we require that a candidate have a member sponsor before entering the screening process. If a potential member sponsor develops, the entrepreneur will be contacted for more information.