Confidential | Not for Distribution 1

PE / VC Practicum

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Agenda

• What is New Markets Venture Partners?

• Fund Management and Associates’ Responsibilities

• Student Experience

• What is the Application Process?

• Q & A

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New Markets TeamFrank Bonsal, III, General Partner10 years, VC (Bonsal & Education Capital)15 years, K-12 Educator/Coach/AdministratorM.B.A. / M.Ed., Vanderbilt; B.A., New Hampshire

Robb Doub, General Partner17 years, VC (Baltic SEF, SEAF, Calvert)Lecturer at UMD and University of WarsawM.B.A., Georgetown; B.A., Vermont

Mark Grovic, General Partner & Co-Founder18 years, VC (SEAF, Templeton, Calvert)Professor & VC-in-Residence at UMDJ.D., Georgetown; B.A., UC-Berkeley

Elizabeth Chou, Principal7 years Debt/Equity (Gladstone, M&T Bank)M.B.A., Columbia; B.A., Mount Holyoke

Don Spero, Founding Partner21 years, operator (CEO, Fusion Sys), 10 years VC & Angel (Spero QS, NMVP)Director of Dingman Center & Professor at UMDPh.D., Columbia; B.S., Cornell

Frank Bonsal, Jr., Special Partner30 years, VC (Co-Founder NEA & Red Abbey VP)15 years, Investment Banking (Alex Brown)A.B., Princeton

10/4/2012

Barbara Messina, Office Manager25 years, accounting, administrative experienceB.A., University of Maryland

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New Markets Venture Partners-$80M Under Management

• Fund I: – $25 MM /16 Portfolio Companies, 6 exits– Fully Invested

Fund II:– $25 MM, 8 Portfolio Companies, 1 Exit– 66% Invested

Education Fund– $30M Ed Tech Focused, 1 Exit– National Leader in Ed Tech Investing– 33% Invested

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CONFIDENTIAL | NOT FOR DISTRIBUTION

3,400,002 38%

3,211,156 36%

2,346,202 26%

Invested Capital by Sector – NMVP II Business Services

– eCoast Sales Solutions– Kroll Bond Rating Agency– K2 Global Consulting

Education– Questar Assessment– Moodlerooms– Think Through Learning

Information Technology– MediaSolv Solutions– Andera

10/4/2012

Information Technology Business

Services

Education

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CONFIDENTIAL | NOT FOR DISTRIBUTION

Investment Focus - NMEP

10/4/2012

College Readiness Digital formative & summative assessment Interactive remediation platforms and gaming

Student Success Personalized learning platform for retention Learning intelligence for digital content

Teacher Effectiveness Career management platform Performance analytics for schools and districts

College Productivity Open source instructional platform Web-based collaborative e-procurement

System Access & Capacity Open content & textbook platform Web-based adaptive learning solutions

Experienced ManagementClear Customer ROI

Proven Business ModelHighly Scalable

Strong Gross MarginsCapital Efficient

Qualified PipelineVisibility to Breakeven

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Value Added Investing

• Syndicate Building and Fund Raising • Executive Recruiting• IP and Licensing Strategy• Customer Focused Sales and Marketing Assistance• Budgeting, Valuations and Financial Projections• Active Business Development Role• Adjacent Market Analysis and Strategic Partnering

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Each co-investor brings substantial industry expertise

CO-INVESTORS

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New Markets Class Structure:Associates Roles and Responsibilities

What is Unique About New Markets

• Active Investing (Board of Directors Representation)

• Learn how to buy companies, not stock• Learn how to own and grow a company• Learn how to sell a company

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International and Domestic Economy

Industry Analysis

Company Diligence

-Company Presentation-On-site Diligence

Market and Competitive Analysis

Term Sheet Negotiation

Financial Model

Portfolio Management

Board of Directors ManagementAdditional

Debt/Equity

Exits: IPO or M&A

IINVEST Semester 1

Semester 2

Sales IP

Buy

Grow

Sell

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Fund Associate Responsibilities

• Identify potential investment opportunities

• Market research and other due diligence

• Financial Projections, and Valuation Analysis

• Investment Recommendations

• Portfolio Value Add• M&A and Exit Analysis

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What’s In It For You? Experience VC investing and managing portfolio companies Gain actual deal experience Develop financial modeling and strategic skills Work at Board level with biotech, software, telecom, and

media companies High Level Exposure to CEOs, VCs, and Service Providers We will help you find a summer job and may hire you We help with job search upon graduation Terrific 250 person alumni network

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• Time availability– Must schedule classes around Fund Class– Must be available during the day

• Class schedule: Tuesday, 1:00 – 3:30 p.m.• Runs for a full year• 10 – 15 positions available

General Information

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The ApplicationRequirements Cover Letter

– Reasons why you want to work for the Fund and what you hope to contribute to the Fund

– How your background will contribute to your performance Resume Copy of Current Transcript

– Unofficial printout from web is acceptable

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The Application Process

• Application Due – January 31st• First Round Selections –February 7th• Interviews – Week of February 10th• Final Selections – February 14th–Decisions will be emailed

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Q & A