U OF U Entrepreneur Challenge Capital Sources

EPIC Venture Fund Investing in seed and early-stage

technology companies

Opal Financial Group Emerging Manager of the Year 2009

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EPIC Venture Funds

•Early-Stage IT and High Tech Venture Fund

•$250+ mm under management between (Epic and Zions Funds)

•EPIC Funds-–Over 90 Total Investments

- 32 Exits: 5 IPOs, 27 Acquisitions - 36 Active Companies

•Zions SBIC – Strategic Venture Fund

•9 Total Staff

•3 Main Offices Currently (Salt Lake City, Boston, New Mexico)•Operations in Idaho and Phoenix

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Bio

•Kent I. Madsen, Managing Director Managing Director, EPIC Venture Fund and Zions SBICFmr Advisor DFJ MeVC (NYSE: MVC - $300 million fund) University Venture Fund (Non-profit Venture fund)Ford Motor Company, Advanced Technology and China

DevelopmentUniversity of Michigan, Instructor & Author

M.B.A. from WhartonM.A. in International Studies from University of PennsylvaniaM.S.E. in Mechanical Engineering from University of

MichiganB.S. in Mechanical Engineering & Applied Mechanics,

University of Pennsylvania

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What to be an Professional Athlete?

•Michael Jordan – Greatest Bball Player all time (Wealthiest)?•$300,000/Game; $10,000/minute•Endorsements $40 Million in one year; 187,000/day•Sleeps 7 hrs/night - $52,000/night•Makes $3,710 for watch an episode of Friends•Buy a Jaguar / Acura NSX ($100 k) – save for 12hrs•One year – Made more money than all past US Pres combined

•270 years – Number of years he’d have to do it to equal Bill Gates

•Rather Than Be Michael Jordan •Buy MICHAEL JORDAN!!!!!

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What do you call a 1000 Lawyers tied together at the bottom of the ocean? A good start!

Apparently we are such Jerks we can’t buy friends.

1- VC’s can’t even buy friends…

….. An overview of Private Equity.

Things to know about VC

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Retail Banks (low Risk Tolerance)

Personal Guarantees / SBA loans (Moderate Risk Tolerance)

Angels / Family and Friends (Low/High Risk Tolerance)

Venture Capital (High Risk Tolerance)

Mezzanine (Moderate Risk Tolerance)

Private Equity / Buyout Funds (Moderate Risk Tolerance)

Capital Sources

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Institutional private placement of capital

Equity, Equity-like instruments

Convertible Debt, Debt with Warrants, etc.

Venture Capitalists expect to exit within 4 - 7 years

Initial Public Offerings, Acquisitions

Venture Capitalists typically specialize in different stages

Seed, Early/Start-up, Mezzanine, Buyout, etc.

Stage Size of InvestmentEarly Less than $2MExpansion $5MDevelopment $5-$10MMezzanine $10-$20MPrivate Equity $10-$40M

Venture Capital Overview

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Utah Equity Overview

Equity Capital Continuum for Utah Companies

Sorenson

MACCPeterson Capital

EPIC, Pilon Ventures& vSpring

Utah Angels, UTFC& Upstart

Seed

SBIC Early Stage

Growth

Expansion & IPO

$10M+

$5M-$10M

$1M-$5M

<$1M

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EPIC Ventures Strategy - Seed and Early-Stage Investing

EPIC

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EPIC Overview

Strategy

• Investment professionals have worked together for over 8 years• Team has over 40 years of combined venture experience• Experienced operators at public, private and start-up companies• Advisory Board of Top Industry Executives

• Seed and Early-stage technology investments• Focus on companies in close proximity to EPIC offices• Lead investments with active Board participation

Sector Focus• Expertise in software (On-demand or SaaS, Open Source, Enterprise and Consumer Applications), Storage and Memory, Web 2.0 / New Media, Life Science, Materials and Clean Technologies

Team

Results• Over 90 Total Investments• 31 Exits: 4 IPOs, 27 Acquisitions• 36 Active Companies

Network• Worldwide Industry contacts with CIO’s and BD contacts• Vast network of entrepreneurs• Broad partner contacts across venture capital, private equity and investment banking sectors