U OF U Entrepreneur Challenge Capital Sources EPIC Venture Fund Investing in seed and early-stage

1. 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

2. 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

3. Bio • Kent I. Madsen, Managing Director • Managing Director, EPIC Venture Fund and Zions SBIC • Fmr Advisor DFJ MeVC (NYSE: MVC - $300 million fund) • University Venture Fund (Non-profit Venture fund) • Ford Motor Company, Advanced Technology and China Development • University of Michigan, Instructor & Author • M.B.A. from Wharton • M.A. in International Studies from University of Pennsylvania • M.S.E. in Mechanical Engineering from University of Michigan • B.S. in Mechanical Engineering & Applied Mechanics, University of Pennsylvania

4. 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!!!!!

5. Things to know about VC 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.

6. Capital Sources • 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)

7. 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. Venture Capital Overview

8. Utah Equity Overview

9. EPIC Ventures Strategy - Seed and Early-Stage Investing EPIC

10. EPIC Overview • 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 Team • Seed and Early-stage technology investments • Focus on companies in close proximity to EPIC offices • Lead investments with active Board participation Strategy • 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 Sector Focus • Over 90 Total Investments • 31 Exits: 4 IPOs, 27 Acquisitions • 36 Active Companies Results • 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 Network