1. GOOD AFTERNOON! Ariadne Capital Limited is authorised and regulated by the U.K. Financial Services Authority

3. The Face of Every Entrepreneur They just may not show it to you!

4. Two Good Reasons They see the inevitable and advance the Future They are willing to live abnormal lives

5. Capital Follows Ideas Always Has, Always Will

6. Remember the New Economy? Turns out it’s latest version of “New”

7. Economic Growth since the end of the 18 th Century has gone through 5 Distinct Stages, associated with 5 successive Technological Revolutions Five Successive Technological Revolutions, 1770’s to 2000’s Technological Revolution Popular Name for the Period Core Country or Countries Big-bang initiating the revolution Year FIRSTThe Industrial Revolution BritainArkwright’s mill opens in Cromford 1771 SECONDAge of Steam and Railways Britain (spreading to Continent and USA) Test of the Rocket steam engine for the Liverpool-Manchester railway 1829 THIRDAge of Steel, Electricity and Heavy Engineering US and Germany forging ahead and overtaking Britain The Carnegie Bessemer stell plant opens in Pittsburgh, Pennsylvania 1875 FOURTHAge of Oil, the Automobile and Mass Production USA (with Germany at fist vying for world leadership), later spreading to Europe First Model-T comes out of the Ford plant in Detroit, Michigan 1908 FIFTHAge of Information and Telecommunications USA (spreading to Europe and Asia) The Intel microprocessor is announced in Santa Clara, CA 1971 © Proprietary & Confidential – Ariadne Capital

8. Lifecycle of a Technological Revolution © Proprietary & Confidential – Ariadne Capital Gestation period Big-bang Paradigm configuration Introduction of successive new products, industries and technology systems, plus modernisation of existing ones Constriction of potential Time Period onePeriod twoPeriod threePeriod four Around half a century Degree of technology maturity and market saturation Early new products and industries. Explosive growth and fast innovations Full constellation (new industries, technology systems and infrastructure) Full expansion of innovation and market potential Last new products and industries. Earlier ones approaching maturity and market saturation

9. AGE OF IT AND TELECOMMUNICATIONS 50 ISH YEAR CYCLE – 1971 TO 20...? BIG BANG – NOVEMBER 1971 IN SANTA CLARA, CALIFORNIA Bob Noyce and Gordon Moore launched Intel’s first microprocessor, the precursor of the computer on a chip INSTALLATION – late 1970’s through to Noughties 1976 – Steve Jobs, Steve Wozniak found Apple Computer 1984 - Michael Dell founds PC’s Limited later named Dell Computer Corporation 1985 – Irwin Jacobs founds QualComm, pioneer in Wireless Communications 1990 – CERN / Tim Berners Lee 1994 – Yahoo founded 2003 – Skype – “free calls on web” 2004 - Facebook founded THE TURNING POINT © Proprietary & Confidential – Ariadne Capital

10. THE REVOLUTION STARTS AS A SMALL FACT WITH BIG PROMISE AND MOVES TO A SIGNIFICANT FORCE IN THE MARKET © Proprietary & Confidential – Ariadne Capital

11. The dynamics of the system: three spheres of change in constant reciprocal action © Proprietary & Confidential – Ariadne Capital Production capital Financial capital Technological revolutions Techno-economic paradigms Socio-political ideas & behaviour Socio-institutional frameworks ECONOMIC CHANGE TECHNOLOGICAL CHANGE INSTITUTIONAL CHANGE

12. Technological Revolutions 1999 – David with his slingshot wants to kill Goliath

13. The Economy & Social Institutions Respond 1999 to 2013 – Broadband and Mobile Technologies continue to invade our lives 2013 -David and Goliath must dance

14. Raymond Kurzweil The Singularity is Near Technology operates exponentially while our minds operate linearly It took 89 years for the fixed line telephone to achieve an adoption of 150 million users, but only 38 years for the television to get to the same point. The mobile phone achieved this in 14 years, the iPod in 7, and Facebook in 5. 20,000 years of progress this century. At a certain point, we have to leverage technology or artificial intelligence to continue to model or predict the future

15. The David / Goliath Grid Model 15 Strategic Value Financial Value Network Effects Vulnerability “David” - Digital Enabler “Goliath” - Distribution Ecosystem Economics TM – shifting industry players Consumer – Data sets become prevalent Network – Orientation at heart of the consumer insight When partnering with, 1)Brings new digital revenues 2)Brings lean operating system When acquired, 1)Can become 2)Can reinforce or gain a position as Industry Architect Renting Not Licensing Operating System to the industry Copyright - Ariadne Capital

16. Examples of Corporates engaging with Digital Enablers Large corporates which are partnering and/or acquiring digital technology firms include:

17. Software is Eating the World - Marc Andreessen © Proprietary & Confidential – Ariadne Capital

18. GIVEN ALL THAT! WHAT IS THE INVESTMENT OPPORTUNITY?

19. WE HAVE A CUNNING PLAN © Proprietary & Confidential – Ariadne Capital

20. Innovation is about Economics Not Technology Otherwise we’d all be flying the Concorde But we’re packed into Jumbo Jets

21. Network-orientation to business

23. and Ecosystem Economics Google says that they organise the world’s information They actually organise the economics of the world’s information I, as a consumer of their search, am not given any economic upside in the search transaction. They have built a multi-billion pound business using – albeit anonymously – my personal data – aggregated with that of others, but releasing none of the economic value to me Their biggest Achilles Heel is if someone in the search space were to cut a different set of economics for the consumer Ariadne Capital found that entrepreneur – John Paleomylites – founder of BeatThatQuote, and sold his business to Google on the 4 th of March 2011 for a 122 EBITDA multiple for these reasons

24. Five Stages of Company Development © Proprietary & Confidential – Ariadne Capital Phase 1Phase 2Phase 3Phase 4Phase 5 ACE Fund investment focus 24

25. In 2013, “Network Benefits” accrue to those Firms who understand their role in their ecosystem and organise the economics for it This in turn leads to exceptional returns for their shareholders 25

26. So I say it’s really very simple.... Follow The Entrepreneur He/She has the Market Insight He/She is the Creator of Value He/She is the Hero © Proprietary & Confidential – Ariadne Capital

27. Thank you.... julie@ariadnecapital.com www.entrepreneurcountry.com newopportunity@ariadnecapital.com 27