1. Wisconsin Science and Technology Symposium Angel Investments July 18, 2008 Pete Marsnik Manager, Chippewa Valley Angel Investors Network, LLC 715-878-9791 cvangels@execpc.comcvangels@execpc.com

2. Chippewa Valley Angel Investors Network, LLC What is an Angel?  High net worth individual  SEC “Regulation D”  Desire to invest in early stage ventures  Provide Funding and/or Expertise  Put the “smart” in smart money  Individual or Network

3. Chippewa Valley Angel Investors Network, LLC Why Angels?  Financing between 3F and Institutional  Venture Capital Deals too big  $10 million +  Typical Angel deals smaller equity investment  $100,000 to $ 2 million  2007 – U.S. Angel investments $26 billion  up 1.8% from 2006, 2006 10.8% over 2005  12% more ventures, 10% more investors  2007 exits – 61% M/A, 6% IPO, 33% bankrupt

4. Chippewa Valley Angel Investors Network, LLC  Founded in 2003 – currently 17 members  Portfolio contains 7 investments  $ 3.1 million value of portfolio  Typical round $100,000 to $400,000  $1,000 annual dues with Monthly meetings  Process  Business Plan Screen versus criteria – Stage 1  Presentation – straw poll for Stage 2?  Due Diligence – Term Sheet – Negotiations  Subscribe – interested members form new LLC  Tracking/Additional investment  Exit – 3-7 years to harvest

5. Chippewa Valley Angel Investors Network, LLC Criteria  Business Plan  Complete and Comprehensive  Sufficient Opportunity and Return  Venture vs Lifestyle business  How will company make money?  How will investor make money?  Quality Management Team

6. Chippewa Valley Angel Investors Network, LLC Criteria  Proof of Concept  Desire for coaching/mentoring  Sustainable Competitive Advantage  Intellectual Property/Patents  Minimum $100,000 equity investment  Exit Strategy

7. Chippewa Valley Angel Investors Network, LLC Key Question 1 What is the Size of the Opportunity?  Product and Market?  Scalable?  High-Multiples Return on Investment?

8. Chippewa Valley Angel Investors Network, LLC Key Question 2 What is the Quality of Management Team?  Experience?  Skill Sets?  Deficiencies?

9. Chippewa Valley Angel Investors Network, LLC Key Question 3 What is the Sustainable Competitive Advantage?  Intellectual Property?  First mover?  Barriers to Entry?

10. Chippewa Valley Angel Investors Network, LLC Key Question 4 What is the Exit Strategy?  How will the angels realize the return?  How soon?

11. Chippewa Valley Angel Investors Network, LLC Key Question 5 Is it in the Sweet Spot?  Equity Stake sufficient to have influence?  Board Member?  Minimum Dilution?

12. Manufacturing Advantage The New Yorker