1. An Alabama-India TechVenture A joint project of TechBirmingham and AITA, pursuing a new trade model between Alabama and India

2. Purpose of the TechVenture The purpose of the TechVenture effort is to match Alabama-based investors with India-based companies in the financial “gap”, who are seeking modest funds to grow their product offering, and who will allow us to establish USA/Alabama headquarters for their companies. The “gap” is defined as “more money than India-based companies can get in country for their products and/or product ideas (locals see it as too much money to invest)… yet below the threshold at which US-based VC’s typically become interested in funding.”

3. Why TechVenture? Why Now? A significant opportunity exists to invest in capital-poor, under-valued Indian technology startups and enhance their value by establishing USA headquarters in Alabama An untapped model with an opportunity for Alabama to lead the way Leverage India to improve cost structure USA as platform for growth Introduce new service offerings Capture Intellectual Property Steps for value creation Results we seek Seamless global service value chain More efficient, profitable, and valuable companies Bring value to Alabama for the global outsourcing trends Characteristics of target investments Defensible market position High value, high switching costs Small and medium size enterprises with a stable revenue ($20M to $200M)

4. Reverse Shoring Indian IP OFF shoring = Sending low-level jobs to India NEAR shoring = Keeping low-level jobs in USA, but not in major metro areas REVERSE shoring = Finding IP in India and setting up USA operations

5. India’s Off-Shoring Dominance Location attractiveness –Infrastructure Communication Basic infrastructure –Country risks/FDI incentives –Attractive incentives –Political environment –Time zone attractiveness Capabilities of workers –Qualifications/capabilities –Foreign languages (primarily English) –Quality of work/work ethic –Cost differential High Low High Singapore Hong Kong Holland Ireland U.K. Australia China Philippines Mexico India Location Attractiveness Capabilities of Workers Size of circle corresponds to number of qualified workers Source: CircleSource

6. Will the Indian Tiger Roar? Highly educated population Low cost –Dramatic cost savings from outsourcing –Decrease in direct labor costs Strong IT Backbone established Government Incentives

7. Key Outsourcing Locations New Delhi Strengths: Real estate, capital city, large talent pool Weakness: Complaints on procedures, power, higher telecom cost Mumbai (Bombay) Strengths: Financial center, professional pool of talent, lower telecom costs Weakness: Real estate costs, congestion Hyderabad Strengths: Progressive Government and policies, low attrition rates, strong training programs, and significant fiscal incentive programs Weakness: Higher telecom costs Bangalore Strengths: Reputation as “Silicon valley of India”, good talent pool Weakness: Power, infrastructure

8. Chicken and the Egg Debate US: Venture Capital and Angel Investors –What kind of products are they looking for? –What are their interests? India: Target Companies –What kind of funding are they seeking from our investors? –What kind of products have they developed?

9. Partners in India NASSCOM –Official country-wide host for the trip TiE –Coordinating entrepreneurs CircleSource India –Providing all ground transportation and coordination with partners

10. Awareness of the Effort BBJ “broke” the story in July Announced at Birmingham Venture Club Huntsville CoC

11. Bottom Line Numbers Travel Dates: –Arrive in New Delhi by Saturday, 28 October –Depart from Bangalore as early as Saturday, 4 November Costs: –Air: $1,600 RT from USA + $230 in country –Hotel: $800-$1,200 single occupancy –Food: $50 per day

12. Agra New Delhi Travel Logistics 1.Fly to Bangalore or New Delhi to arrive on Saturday in New Delhi 2.Depart very early on Sunday morning for Agra to visit Taj Mahal 3.Monday meetings in New Delhi with flight back to Bangalore that night 4.Thursday day trip to Hyderabad 5.After Friday celebration, departures on Saturday or Sunday from Bangalore Bangalore Hyderabad

13. Mobile Chicago Milwaukee Huntsville 1 2 3 4 5 6 7 How Far Are We Traveling? Agra New Delhi Bangalore Hyderabad

14. How Do I Get There? DeltaUnitedEmiratesAir France Dubai Paris Frankfurt New York Atlanta Chicago Mumbai (Bombay)

15. An Alabama-India TechVenture A joint project of TechBirmingham and AITA, pursuing a new trade model between Alabama and India