Capital for Business Seed or angel capital Venture Capital Mezzanine or pre-IPO capital IPO-capital Start up losses Breakeven Profit Big Profit Start up Accelerated Growth Compelling Story Maturity

Capital for Facebook Start up Early/mid stage firm Established stage Matured and enduring stage Mark Zuckerberg (28%) $0 - Creator Peter Thiel (2.5%) $5 m valuation (2004) - early stage angel Eduardo Saverin (4%) $tens of thousands – co founder Digital Sky (5.4%) $200 $10 b valuation (2009) bought more in 2011 – Venture Cap Microsoft (1.6%) $15.0 b valuation (2007) FB dropped in value 2007 to 2009 – Strategic partner & VC Goldman Sachs (1%) $50 b valuation (2011) - $1.5 b raised from investors – pre IPO stage Retail investors (13%) $10 $75 b valuation – 18 May 2012 – Post IPO stage Accel Partners (10%) $12.7 $85 m valuation (2005) – early stage VC

Bank Lending (Low Risk Business Facilitations) Entrepreneur Capital (High Risk Ventures) Entrepreneur Capital= Seed + Venture + Pre and Post IPO Investors

Backdoor Listing (Reverse Takeover) $3 million Valuation $12 million Valuation buys Issue shares Small listed shell Co. Successful Private Business $15 million Valuation Enlarged listed Co. Investors ($10 million) Issue Shares $25 million valuati on Old Owners: A=3/25 (12%) New Owners: B=12/25 (48%) New Investors: C=10/25 (40%) A B C (Investors)

Charlie’s Reverse T/O of Spectrum

Global Assets under Management (US$ trillion) 7 Assets under management, 2008 * Around one-third of private wealth is incorporated in conventional investment management Source: IFSL estimates