1. 1tvcaTaiwan Private Equity & Venture Capital AssociationTaiwan Private Equity & Venture Capital AssociationTaiwan Private Equity & Venture Capital Association 2010-10-01tvcatvca 2010

2. 2tvcaTaiwan Private Equity & Venture Capital Association 3. 3tvcaTaiwan Private Equity & Venture Capital Associationtvcatvca 4. 4tvcaTaiwan Private Equity & Venture Capital Association(High Risk, High Return)(High Risk, High Return) 5. 5tvcaTaiwan Private Equity & Venture Capital Association(Theearlystagefinancingofnewandyoungcompaniesseekingtogrowrapidly) (PreIPOcompanies)(Nonpassiveinvestors)(Equityparticipation)(Longterminvestment)3-5(Liquidationafter35yearinvestment)IRR25(morethan25%IRR)(Closedcommunity)(Freelytradeinformation) 6. 6tvcaTaiwan Private Equity & Venture Capital AssociationVentureCapital 7. 7tvcaTaiwan Private Equity & Venture Capital Association 8. 8tvcaTaiwan Private Equity & Venture Capital AssociationInitial ContactInitial Contactdue-Diligencedue-DiligencePortfolioManagementPortfolioManagementExitExit-////////////////() 9. 9tvcaTaiwan Private Equity & Venture Capital Association80% 20%Limit PartnerGeneral Partner 10. 10tvcaTaiwan Private Equity & Venture Capital Association 11. 11tvcaTaiwan Private Equity & Venture Capital Association 12. 12tvcaTaiwan Private Equity & Venture Capital AssociationGPLPLimited PartnershipLimited Partnership 13. 13tvcaTaiwan Private Equity & Venture Capital Association 14. 14tvcaTaiwan Private Equity & Venture Capital Association 15. 15tvcaTaiwan Private Equity & Venture Capital Associationtvcatvca 16. 16tvcaTaiwan Private Equity & Venture Capital Association1982 Venture Capital198320%19841986-1990HQDaiwa SMBC 1992 17. 17tvcaTaiwan Private Equity & Venture Capital Association199330%199425%199610%199920005% 18. 18tvcaTaiwan Private Equity & Venture Capital Association20012001100%20022008:20032005 19. 19tvcaTaiwan Private Equity & Venture Capital Association)(1983.11351985.9 1991.2)(2001.6172001.101998.1)(2004.2-1984.111995.31997.82001.51999.5 6102004.92004.122004.82006.32008 20. 20tvcaTaiwan Private Equity & Venture Capital Association19401940 19501950 196019601970197019801980 19901990 2000200020082008 21. 21tvcaTaiwan Private Equity & Venture Capital AssociationITIC1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 200711.7% 22.2%4.5%3.0%26.1%2.8%5.6%35.8%5.6%3.0%11.2%3.1%9.3%47.3%11.2%5.5%6.7%17.5%3.9%7.9%47.3%22.1%4.9%6.3%24.6%1.1%4.3%36.7%23.2%12.5%9.5%16.9%1.9%7.3%28.7%22.30%2.80%16.30%23.60%4.20%5.20%2008Semiconductor 27.80% 15.80% 18.70% 20.50% 20.80%25.60%11.9%6.1%29.7%6.8%2.6%7.7%35.2%11.8%1.6%5.3%21.2%2.4%13.9%43.8%Information 30.50% 21.60% 15.10% 18.30% 6.50%Telecom 8.80% 4.60% 15.40% 12.20% 18.90%Opto-Electronics6.20% 12.20% 10.30% 10.30% 13.70%Software 2.90% 5.00% 9.10% 5.80% 8.70%Biotech 0.34% 2.64% 3.23% 2.18% 4.00%Others 23.46% 38.16% 28.17% 30.72% 27.40%/ 22. 22tvcaTaiwan Private Equity & Venture Capital Association() 17.9% 12.4% 14.3% 13.4% 11.7% 7.0% Yahoo 4.5% Tanox 23. 23tvcaTaiwan Private Equity & Venture Capital Association1984 24. 24tvcaTaiwan Private Equity & Venture Capital Association25WLANPC CameraIC IC MASK ROM LCD 25. 25tvcaTaiwan Private Equity & Venture Capital Associationtvcatvca 26. 26tvcaTaiwan Private Equity & Venture Capital Association2008:176NT$1610.01NT$2380.712,794 1758.5 9,267 622.2 3,5272.6 27. 27tvcaTaiwan Private Equity & Venture Capital Association1998-20081 1 13 347 614283846718231992 24322 2 31161016901765189418451717151313411281103472942625518714713611810689533318124205101520253035404550848586878889909192939495969798990001020304050607080200400600800100012001400160018002000New Funds Total Fund Szie(NT$100M)Total VC 1 2 3 6 9 13 20 22 24 27 28 34 47 72 107 153 170 176 194 214 229 231 219 183 176 28. 28tvcaTaiwan Private Equity & Venture Capital Association 15889.77%15 3 176 8.52% 1.71% 100%8.52%89.77%1.71% 29. 29tvcaTaiwan Private Equity & Venture Capital Association Source Government 4.83% Banks 5.71% Financial Holding Companies 8.98% Insurance Companies 9.56% Corporate Investors 40.9% Investment Companies 16.58% Pension Funds 0.00% Securities Firms 3.92% Private Individuals 9.52% Total 100.00%Government4.83%CorporateInvestors40.90% Banks5.71% PrivateIndividuals9.52%FinancialHoldingCompanies8.98%InsuranceCompanies9.56%SecuritesFirms3.92%InvestmentCompanies16.58% 30. 30tvcaTaiwan Private Equity & Venture Capital Association(12,794)18.1%15.5%14.1%11.6%10.9%1.6%1.6%()2.5%3.0%3.0%4.2%4.5%6.1%3.4% 31. 31tvcaTaiwan Private Equity & Venture Capital Association(2,380.71)18.0%14.4%14.1%12.0%3.7%10.6%5.2%5.1%4.5%4.0%2.8%()2.24%2.0% 1.5% 32. 32tvcaTaiwan Private Equity & Venture Capital Association2008 794 2890 6010 2959 141 12794 6.21% 22.59% 46.98% 23.13% 1.10% 100%22.59%46.98%23.13%6.21%1.10% 33. 33tvcaTaiwan Private Equity & Venture Capital Association2008 15140.69 51145.27 112035.51 57827.68 1922.15 238071.30 6.36% 21.48% 47.06% 24.29% 0.81% 100.00%6.36%21.48%47.06%24.29%0.81% 34. 34tvcaTaiwan Private Equity & Venture Capital Association2008 492 64 38 12 0 14 620 79.35% 10.32% 6.13% 1.94% 0.00% 2.26% 100.00%643812 0 14492 35. 35tvcaTaiwan Private Equity & Venture Capital Association2008 9669.85 1160.45 984.90 1353.09 0.00 466.95 13635.23 70.92% 8.51% 7.22% 9.92% 0.00% 3.42% 100.00%9669.851160.45 984.91353.090466.95 36. 36tvcaTaiwan Private Equity & Venture Capital Association1984-20080.12-0.66-1.47-1.230.300.681.08-0.020.17-0.091.332.001.571.331.491.810.120.050.040.240.260.250.30 0.562.06-2.00-1.000.001.002.003.004.005.006.007.0084 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08:1020 37. 37tvcaTaiwan Private Equity & Venture Capital Association1996-200810204.663.427.485.180.983.142.254.273.530.622.06-0.090.170.681.08-0.021.211.732.4910.646.815.873.127.530.991.411.687.355.154.663.892.160.120.050.561.57 1.811.49 1.33-20246810121996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008EPS Average(TOP 10) EPS Average(TOP 20) EPS Average in year 38. 38tvcaTaiwan Private Equity & Venture Capital AssociationTSE OTC (2008) 718 539 1,257() 217 192 409 30.22% 35.62% 32.54%2008() 30 20 502008() 13 9 222008() 43.33% 45.00% 44.00%67.46%32.54%44.00%56.00% 2008 39. 39tvcaTaiwan Private Equity & Venture Capital AssociationTSE OTC (2008) 317 377 694() 172 159 331 54.26% 42.18% 47.69%2008() 17 14 312008() 11 9 202008() 64.71% 64.29% 64.52%64.52%35.48%52.31%47.69%2008 40. 40tvcaTaiwan Private Equity & Venture Capital AssociationGDP / 2008(GDP) 126,9852008 73,5902008 4,673 78,2632008 / 2008GDP 61.63%/GDP61.63% 41. 41tvcaTaiwan Private Equity & Venture Capital Association()()2.6 42. 42tvcaTaiwan Private Equity & Venture Capital Associationtvcatvca 43. 43tvcaTaiwan Private Equity & Venture Capital AssociationPrivate Equitybuyout 44. 44tvcaTaiwan Private Equity & Venture Capital Association:/:/ :-- 45. 45tvcaTaiwan Private Equity & Venture Capital Associationtvcatvca 46. 46tvcaTaiwan Private Equity & Venture Capital AssociationPrivate EquityGateway to Great China 47. LOGO tvcatvca !13310C: 02-25450075: 02-25452752: www.tvca.org.twE-mail: stephen.lai@tvca.org.tw