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MARKET OVERVIEW

Digital Revolution & Opportunities

The digital economy is growing at an incredible speed;New technologies are fostering innovation and the birth of startups, thus creating new opportunities every day;Digital startups need low initial capital and even a small investment can generate significant returns and high margins.

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The VC Opportunity

USA: in 2015, approximately $59bn were invested in VC, second highest value over the last 20 years;USA: +35% fundings to internet startups 2015 vs. 2014;EU: in 2015 $13.4bn were invested in VC, reaching a record;

EU: digital tech startups received 78% of the total VC investments.

Source: MoneyTree report from PwC and NVCA

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Early Stage Scenario

In 2015 Seed and early stage represented over 60% of VC investment activity in EU;In 2015 Business Angels covered 73% of the European early stage investments;Equity crowdfunding had an impact of 1%.

Source: MoneyTree Report from PwC and NVCA

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MARKET OVERVIEW

LVenture Group ’s positioning in the funding pipeline

Competitions Challanges Tech HubsIncubators

PRE-SEED

Family & FriendsGrants

Accelerators Business Angels

MICRO-SEED

Business AngelsSeed Funds

SEED

EARLY STAGE

Early Stage FundsLATER STAGE

Growth FundsBanks

Private Equity

1st Round

2nd

3rdMezzanine

Seed Investment

TIMEValley of death

Break even

REVE

NU

E

Source: The Venture Capital Cycle - Cardullo (1999)

OUR POSITIONING

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FOCUS ON ITALY

Volume of tech deals: 70 in 2013-2014, +208% vs. 2011-2012Value of the VC industry: €133M in 2015, +11% vs. 2014

Source: CB Insights

No other European country has shown such growth rates

Italy is likely to become the next European Tech Hub

+9.3%

4.7045.143

2014 2015

Source: Infocamere Report

Registered Innovative StartupsThe number of startups classified as innovative according to the law included

in the Italian register of established companies continues to grow

Source: Boston Consulting Group

3.5% GDP

2.1% GDP

2010 2016

€ 21bn

€ 24bn

CAGR11.5%

The internet share of the GDP in Italy has increased impressivelyover the past years and continues to show an upward trend

Internet’s numbers are growing

Tax reliefIn 2014 the Italian Government introduced legal provisions providing tax relief for investments in innovative startups.

The incentives apply to individuals and companies that in 2016 invest either directly or through entities or limited companies as LVenture Group;

19% deduction on personal income tax (max. €500k);

20% deduction on corporate taxes (max. €1,8M).

Law n. 221, 17/12/2012

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Ideal conditions

Low setting up costs compared to other countries;

Great availability of high quality human capital;

Excellent know-how in design and creativity and growing expertise in technology.

In Italy there are favorable condition for the initial development of early stage startups.

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Source: Italian Ministry of Economic Development, Italian Ministry of Education University & Research

Arbitrage opportunityThe Italian scenario provides the opportunity to invest with competitive valuations and rapidly scaling startups to international markets with higher valuations.

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3

6

9

12

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3

5

8

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Italy Europe USA Italy Europe USA

SeedAverage Pre-money Valuation

Series AAverage Pre-money Valuation

1,5 35 5

7

10

Source: data elaboration based on industry reports