Global Venture Capital March 19 2007 Michael Korver

Global Venture Capital March 19, 2007 Michael Korver, Managing Partner

Global Venture Capital • Tokyo-based independent venture capital firm since 1997 • Five partners • Invested in over 35 ventures • Investment thesis: “Globally source, invest locally” • www. gvc. jp

“Globally Source, Invest Locally” Investments in early-stage ventures located around the globe that have “meaningful contacts” with Japan and/or other economies of Asia. “Meaningful contacts” include one or more of the following attributes: ① A large potential market in Japan and/or other Asian countries and a strong commitment on the part of management to consider these markets to be of significant importance. ② A technology, product or service that is amenable to due diligence by applying technology resources accessible internally or in Japanese and/or other Asia-based corporations or academic/research institutions. ③ A strong potential interest by Japanese or other Asia-based corporations in partnering with the venture. ④ The potential to undertake an IPO on the Japanese capital markets.

Why Our Investment Strategy • “One size doesn’t fit all” – innovation not bounded by geography; markets are global • Silicon Valley doesn’t need more VC money or “bridging organizations” • U. S. not the appropriate first market for all innovations – Too competitive – Early adopters may be elsewhere – Infrastructure to support growth of the market may not exist in the US – Larger potential markets may exist outside of the U. S. • Powerful potential competitors or partners may lurk in Asia

What we look for • Market opportunity – Large and fast-growing – Compelling value proposition – Effective “go-to-market” strategy • Management team – All bases covered – Experienced • Technology or other sustainable “barriers to entry”

Case Studies • Hoku Scientific (Nasdaq: HOKU) – Alternative energy (Hawaii): achieved IPO on the strength of commercial relationships with two large Japanese companies • Spectra. Genics – Medical equipment (California): Launched product in Japan pending FDA approval in the U. S. • Really. English. com – ITC (U. K. ): English language online learning content developed in U. K. but primary customers in Japan • Geo. Vector – ITC (California/New Zealand): Development team in NZ and first market in Japan’s world leading mobile telephone sector