Presentation by Liddy Karter - Executive Director, the Connecticut Venture Group. Presented at the April 12, 2011 Crossroads Connections Breakfast - Exits & Trends - Stamford, CT. Liddy serves as a Managing Director of Enhanced Capital and, as Executive Director of the Connecticut Venture Group, is responsible for overseeing investment activity in Connecticut. She brings experience in clean tech venture capital, corporate finance, and early stage company management. Prior to joining Enhanced Capital, she was a Managing Partner at IRON Ventures, a venture fund investing in sustainable business ventures enabling symbiotic reuse of energy, industrial material and water. Prior to IRON Ventures, Liddy was CEO of Resource Recovery Systems, Inc., a nationwide recycling company and CFO of Netkey, Inc., an ecommerce software company. Prior to that, she was Vice President of the Financial Services Group at Morgan Stanley. Liddy is active in angel investing and serves on the Board of the Angel Capital Association. She is Executive Director of the Connecticut Venture Group, a statewide trade association for venture funds in Connecticut and serves as a Mentor at the Yale Entrepreneurial Institute.

1. Venture In CT? 1 Liddy KarterExecutive Director,Connecticut Venture Group LKarter@CVG.org203 376 7958

2. VC Challenge in CT 2 4th in $ managed 14th in $ invested each year LKarter@CVG.org

3. VC- 13% of Private Equity $ 3 LKarter@CVG.org

4. US Allocation of $ Invested by Stage 4 LKarter@CVG.org

5. CT 4TH IN VC $ MANAGED 5 LKarter@CVG.org

6. CT 14TH IN VC $ INVESTED 6 LKarter@CVG.org

7. Barely Visible VC investment 7 LKarter@CVG.org

8. #2 in VC $ Exported 8 LKarter@CVG.org

9. CT Increasing $ Managed 9 LKarter@CVG.org

10. Strategic Mission 10 Get more VC $ invested in CT Increase VC $ managed in CT Increase # of VC backed successes LKarter@CVG.org

11. Vision, Mission and Brand 11 The explicit mission: “To assist the development of high growth enterprises through the promotion of capital formation in Connecticut” LKarter@CVG.org

12. Role of State Government 12 Reach out to VC principals Help them Thank them Provide university support for R&D Support VC process Limit regulation for small companies Target Incentives to High Potential Companies LKarter@CVG.org

13. VC Tax Credits 13 LKarter@CVG.org

14. Role of Federal Government 14 Improve Capital Access Stabilize tax treatment of VC Funds Streamline IPO/reporting Process Increase Support for Basic R&D Improve VISA rules Support VC process with tax incentives Capital Gains treatment- permanent Matching grants for Commercialization Limit regulation for small companies LKarter@CVG.org

15. Potential for Job Growth 15 $25,000 of venture investment = 1 job If CT performed like MA in 2010 we would have had 18,000 additional jobs; about 11% of the unemployed in CT. According to Indeed.com and salary.com the average wage in Venture backed companies is $89k/yr. Average wage in CT is $76k. $1.6B in CT wages Income Tax Revenues of $82MM/year LKarter@CVG.org

16. CVG Outreach Plan 16 LKarter@CVG.org

17. Objectives 17 Increase Successful deployment of Venture Capital in CT Resources Venture Principals Venture Support community State and Federal Government Universities Investors Entrepreneurs LKarter@CVG.org

18. Next steps for CVG and CT 18 Prioritize legislative agenda for Capital Access Annual meeting with VC principals and Governor Create University VC connections -speakers CT link with Start-Up America and Office of Innovation and Entrepreneurship – appoint team from State, University and VC LKarter@CVG.org

19. Sources and Links 19 Office of Innovation and Entrepreneurship http://www.commerce.gov/news/press-releases/2009/09/24/commerce-secretary-locke-announces-new-commerce-initiatives-foster-in National Venture Capital Association www.nvca.org 2011 yearbook- Thomson Reuters PWC Money Tree www.pwcmoneytree.com WI Dept of Commerce www.commerce.state.wi.us/bd/BD-Act255-Venture capitalseedfund.html LKarter@CVG.org

20. Thank You! 20 Liddy KarterExecutive Director,Connecticut Venture Group LKarter@CVG.org203 376 7958