EU VC October 2012

DFJ Esprit – Differentiated Approach

As an active primary VC we are actively engaged with many technology businesses in Europe as many raise capital multiple times

Exclusive European partner of Draper Fisher Jurvetson (“DFJ”), a top Silicon Valley VC who co-invest in every deal. DFJ investments include:

More Secondary expertise than any other firm in Europe having acquired VC portfolios of:

Plus Tempo experience of 5 portfolios acquired

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Partners Age Sector Focus Previous Experience VC Experience

Alan Duncan 63 Semi & Elec. Prelude, Ferranti 26

Brian Caulfield 44 Software & Comms Trinity Venture, Entrepreneur 18

Simon Cook 43 Cazenove, 3i, KPMG, Games 15Semi & Media

Stuart Chapman 42 Cazenove, 3i USA & UK 18Software

Paul Murray 41 Cazenove, 3i 15Comms & Cleantech

Nic Brisbourne 37 Cazenove, Reuters VC 10Internet

Venture Partners

Mikko Suonenlahti SFK Finance Oy, 3i USA

Krishna Visvanathan 39 3i, Entrepreneur 12Semis & Comms

One of the most experienced VC teams in Europe:unique mix of VCs, entrepreneurs, bankers

Associates/Junior Partners

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Richard Marsh 40 Oxford Capital, Entrepreneur 12Software

Victor Basta Broadview, Arma

Olav Ostin 42 Tempo, Nova, ETF, Enskilda 12Secondary

David Tate 56 Tempo, Nova, WestLB 12Secondary

Scott Sage 29 IT/Ctech BVCA, UBS 3

Kelvin Au Secondary Tempo, CSFB 329

Jonathan Sibilia IT/Ctech Apax, Rothschild, Jefferies 332

Rob Eckelmann Intel, US government

Hansjoerg Ruof 3i Germany

Stefan Elsser 3i Germany, KfW

David Cummings IMI, Lazard, KPMG

Peter Keen Exosect, Serentis, Merlin Bio Sciences

Unsurpassed Deal Flow, Rolodex, Market Intelligence, Business Development, 150 Professionals

DFJ Global Network: 4 continents, $7B in Capital, Top Silicon Valley VC

Cur

rent

Inve

stm

ents

DFJ Esprit European Portfolio

SoftwareDigital Media & Internet

Hardware & Electronics

NextGen Telecom & Wireless Lifesciences CleanTech

Key

Exi

ts

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Some recent primary deals

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GrazeHealthy snacks, delivered by post. Founder was co-founder of LOVEFiLM.First investment: 2009 (seed stage)Current revenue (F): ~£30++m

Neul Wireless network using ‘whitespace’ spectrum. Founded by ex-CSR founders, backed previously by DFJ Esprit teamFirst investment: 2011 (seed stage)Current revenue: <£1m

RedkiteFinancial markets software to prevent market

abuse First investment: 2011 (early stage)Current revenue: <£1m

Horizon DiscoveryAccelerating targeted drug development for

personalised medicine. First investment: 2010 (early stage)

Current revenue (F): ~£7m

RadiumOneTargeted adverts using social media interaction and links for relevance. Serial entrepreneur, backed previously by DFJ Esprit team.First investment: 2011 (later stage)Current revenue (F): ~£19m

ConversocialCustomer feedback and service via social media.First investment: 2009 (early stage)Current revenue: £1m+

Strike AdDemand-side platform for mobile advertisingFirst investment: 2011 (later stage)Current revenue (F): ~£4m+

Sport PursuitFlash sales ecommerce for high performance sports equipment and clothingFirst investment: 2012 (early stage)Current revenue (F): ~£4m+

AchicaHome Furnishings flash sale private members

club. First investment 2012 (late stage)

Current revenue (£40m++)

LystFashion social commerce businessFirst investment: 2012 (early stage)Current revenue (F): ~£5m+

Some recent secondary deals

Horizon DiscoveryAccelerating targeted drug development

for personalised medicine. First investment: 2010 (early stage)

Current revenue (F): ~£7m

Qosmos Deep packet inspection for IP networks.French, with no UK office – so non-EISFirst Investment: 2011 (later stage, secondary)Current revenue (F): ~£14m

Top Technology portfolio A tail portfolio of 8 companies acquired

from IP Group plc and other LPs including

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European VC Market Deal Data ($5m+ deals) In line with (low) historic volumes

Sector # of deals Avg Deal Size $m Total $m DFJ $5m+ deals Cleantech 20 27.0 327.4 Comms 7 17.6 123.1 Neul Internet 70 22.7 1,589.3 Electronics 13 20.0 259.4 ZBD, Displaylink Medtech 26 13.7 355.7 Horizon Software 27 10.4 281.8 Qosmos TOTAL 163 18.6 2,936.6

21%

12%

40%

19%

4%4%

Market Geography Split

DACHNordicsUK/IrelandFranceBeneluxSouth

Finland7% France

6%

Germany10%

Ireland5%

Other Nordics5%

Rest of Europe16%ROW

7%

UK42%

Cf DFJE Dealflow by Country (June 2011 - Feb 2012)

>$5m deals since 1/1/11 (VentureSource) including follow-ons announced (ex biopharma) Investor Deals Companies Index 6 Farfetch, Groupalia, Housetrip, Justeat, Privalia, Stylefantasie Balderton 6 Housetrip, Livebookings, Wooga, Worldstores, VestairedeCopines, Achica DFJ Esprit 5 Horizon, Neul, Displaylink, Qosmos, ZBD CAPE 4 Aldebaran, Novate, Trustyou, Visiware Auriga 4 Amplitude, Bonitasoft, Cellnovo, Neolane Xange 4 Mixcommerce, MobileTag, Neolane, VisionOSS Ventech 4 Bonitasoft, Crocus, Prosonix ,VestairedeCopines Imperial Innovations 3 Nexeon, Plaxica, Veryan CDC 3 Amplitude, MonExTel, RBMHGroupe Accel 3 Spotify, Cloud9, Stylefantasia Idinvest 3 Crocus, Kobojo ,LaCompaignedeAnimaux Imperial 3 Nexeon, Plaxica, Veryan Capricorn 3 Ducatt, Novashunt, Novopolymers Wellington 3 Enecsys, Livebookings, SapiensSteering Advent 3 Cellnovo, Far-fetch, Worldstores Intel Capital 3 Altobridge, Total Immersion, Vision OSS Highland 3 Prescritpion Eyewear, Wooga, Privalia Amadeus 3 Ipaccess, UnRuly, Glysure GIMV 3 Novopolymers, Ebuzzing, Prosonix Dumont 3 Doo, Yourdelivery, Yourvideocard Earlybird 3 Cleanmobile, Madvertise, Miracor Innovacom 3 Videoplaza, Coachclub, Mixcommerce SEP 3 Exointouch, ipaccess, MediaGenuity Serena 3 Coachclub, Bonitasoft, LaConmpagniedesAnimaux

VC Activity $5m+ deals

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European VC Market Exit Overview

0

50

100

150

200

250

300

350

400

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Source: VentureSource, DFJ Esprit analysis

Volume is c.100 per year in US in normal markets (95-98, 04-07), drops to 50 per year in poor years, avg.

USA generates $32 billion per year of VC returns

Avg. major exits running at 33 a year in Europe for 5 years pre crash

Europe generates $10 billion per year of VC returns

USA has already rebounded – with 160 exits in 2011

Europe up to 25 exits a year, split 2/3rd M&A, 1/3rd IPO

USA

EuropeNumber of $ 100M+ Exits Over Time in US and Europe

2011

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DFJ Esprit leads European VC M&A

Companies / Exits Value $m Sellers Eusa 650 Other VCs (3i)Novexel 375 Other VCsIcera 367 DFJ Esprit, othersApaTech 330 DFJ Esprit, othersLoveFilm 300 DFJ Esprit, othersHBI 284 DFJ Esprit, othersC3 267 Other VCsBabelStore SA 200 Other VCs (DFJE preempt) Private Sale GmbH 200 Other VCs Dailydeal 175 Other VCsSensordynamics 164 Other VCsExalead SA 162 Other VCs Shipequip 160 Other VCsMemometal 150 Other VCsZeus 140 DFJ Esprit, othersSvox 125 DFJ Esprit Sec, othersAstex 120 Other VCsApplied Language 119 Other VCsPreglem 116 Other VCsAdeptra 115 Other VCsNetviewer 114 Other VCsSynosia 113 Other VCsCellzome 108 Other VCsKiala 100 DFJ Esprit Sec, othersGo Viral Ltd. 97 Other VCs BuyVIP GmbH 84 Other VCs (3i) LuciaWind AG 78 Other VCs The Cloud 78 DFJ Esprit, others

Total European VC M&A 2010/2011 > $40m exits (Source: Venturesource)Companies / Exits Value $m Sellers The Office Group Ltd. 76 Other VCs TLC 75 DFJ EspritPhyworks 73 DFJ Esprit, othersStreamServe 71 Other VCs Cellerix 70 Other VCsQbranch 66 Other VCsSensitive Object SA 62 Other VCs Streetcar Ltd. 62 Other VCs Digitick 54 Other VCsFrontier Silicon 52 Other VCsPicochip 51 Other VCsLagan 50 DFJ Esprit, othersClearswift 50 DFJ Esprit, othersTweetdeck 50 Other VCsAcra 50 Other VCsMiyowa 45 Other VCsPodio 44 Other VCsStokes Bio Ltd. 44 Other VCs Dibcom 43 DFJ Esprit, othersNimbus 42 DFJ Esprit, othersBProcess 42 Other VCsSynchronica 42 Other VCs

Aasset Security 42 Other Vcs DFJ share

OmniBus Systems 41 Other VCs Inc current 34%

Cumulated Enterprise Value 6,492 DFJ = 2,057 32%

Thoughts for early stage companies

Changes in the VC world :

Fewer ‘established’ players, new early stage funds

Capital availability not getting easier

Actually fewer large ($5m+) deals than understood

Impact on investment trends:

Capital efficiency – ecommerce

Avoiding financing risk - Cleantech, hardware, Semiconductors

Thoughts for early stage companies

How much cash do you really need?

What proves your business model? Not your technology

Is it really a big market? It needs to be.

CUSTOMERS

Be realistic on financing

Have you ‘proven’ your proposition?

Availability & price of money

Where to look?

Love Tekes

For further information please contact:

Paul Murray, Managing Partner paul.murray@dfjesprit.comDFJ Esprit LLP

www.dfjesprit.com

14 Buckingham Gate

London, SW1E 6LB

United Kingdom

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