MikeSplinterNovember4th2015

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Agenda•  CareerandBackground

•  TheWorldhaschanged

•  WhoandWhatisWISCPartners?

•  CompanyandProductLeadership?

•  ConclusionsandChallenge

CareerSnapshotGee40yearsgoesbyfast!!

•  GeneralPartneratWISCPartners

•  ChairmanandCEOofAppliedMaterials(AMAT)

•  ExecuOveVPIntelCorporaOon(INTC)

•  BSEE/MSEE/HonoraryPhDUniversityofWisconsin

•  RaisedinHoricon,Wisconsin

TheWorldhasChangedLet’stakealook

118

The Big 20-Year Change =

People Connected 24/7 with Mobile Devices

4

<1%to39%PopulaOonPenetraOonGlobally

Source: Euromonitor, ITU, US Census.

10%

23%

28%

19%

21%

USA China Asia (ex. China) Europe Rest of World

1995 35MM+ Internet Users 0.6% Population Penetration

2014 2.8B Internet Users 39% Population Penetration

61%

22%

12%

0%

5%

6 Source: Morgan Stanley, Capital IQ, Bloomberg.

Global Public Internet Companies, Ranked by Market Capitalization

As of December, 1995 Home

Market Cap.

As of May, 2015 Home

Market Cap. Company Country ($MM) Company Country ($MM)

1 Netscape USA $5,415 1 Apple USA $763,567 2 Apple USA 3,918 2 Google USA 373,437 3 Axel Springer Germany 2,317 3 Alibaba China 232,755 4 RentPath USA 1,555 4 Facebook USA 226,009 5 Web.com USA 982 5 Amazon.com USA 199,139 6 PSINet USA 742 6 Tencent China 190,110 7 Netcom On-Line USA 399 7 eBay USA 72,549 8 IAC / Interactive USA 326 8 Baidu China 71,581 9 Copart USA 325 9 Priceline Group USA 62,645

10 Wavo Corporation USA 203 10 Salesforce.com USA 49,173 11 iStar Internet Canada 174 11 JD.com China 47,711 12 Firefox Communications USA 158 12 Yahoo! USA 40,808 13 Storage Computer Corp. USA 95 13 Netflix USA 37,700 14 Live Microsystems USA 86 14 LinkedIn USA 24,718 15 iLive USA 57 15 Twitter USA 23,965

Total Market Cap of Top 15 $16,752 Total Market Cap of Top 15 $2,415,867

Note: Market capitalizations are as of May 22, 2015 and December 31, 1995, respectively

Top15CompaniesbyMarketCapitalizaOon=1995@$17Billionà 2015@$2.4Trillion

76

1) Housing 2) Transportation 3) Food 4) Insurance / Pensions 5) Healthcare... Average Annual Expenditure of USA Household, 2013 – 2014

Source: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey. Survey results based on mid-year 2014 and 2013 data. Pension / Personal Insurance includes deductions for private retirement accounts, social security, and life insurance. Healthcare costs include healthcare insurance, drugs, out-of-pocket medical expenses, etc.

Total ($)

Spend Category 2013 2014

% of Total

2013 2014

Y/Y

Growth (%)

Housing $17,041 $17,377 33% 33% 2%

Transportation 8,999 9,104 18% 18% 1% Food 7,047 7,115 14% 14% 1% Personal Insurance / Pensions 5,573 5,551 11% 11% (0%) Healthcare 3,520 3,919 7% 8% 11% Entertainment 2,586 2,560 5% 5% (1%) Cash Contributions 1,949 1,790 4% 3% (8%) Apparel and Services 1,706 1,674 3% 3% (2%) Education 1,212 1,143 2% 2% (6%) Miscellaneous / Other 1,776 1,701 3% 3% (4%)

Total $51,409 $51,934 100% 100% 1%

ImpactofInternetHasBeenExtraordinary&Broad...ButthereissOllhugeopportunity

Sector of Economy / Society, USA

Internet Impact, to Date

Consumer

Business

Security / Safety / Warfare

Education

Healthcare

Government / Regulation / Policy Thinking

Note: Harvey Balls estimate degree to which Internet has changed behavior / outcomes in selected sectors of economy / society, 4/15. 8

HealthcarepercentbyacOvity

2007 2012 2025

FutureofHealth,WellnessandWellbeing

11

Ten Years from Now, When We Look Back at

How This Era of Big Data Evolved...

12

We Will Be Stunned at How Uninformed We Used to Be When We Made Decisions

– Billy Bosworth, DataStax CEO (2015)

74

...‘JustinTime’Products+ServicesEnabledbyMobiles+Sensors+Humans

Dining

Travel

Selected On-Demand Company Fulfillment Time Estimates Transportation Food Delivery

Within minutes

Within minutes

~10 min

~20 min

<20 min

Typically within 1 hour

15 min

Typically within 20-40 minutes

Instant booking

Instant booking

Instant booking

Typically within 1 hour

Entertainment

Instant booking

Groceries

Typically within 1-2 hours

174

$3 $3 $8 $7 $5 $14

$26 $19

$28

$89

$157

$58

$28 $22 $36 $40 $36 $42

$34 $25

$33

$48 $50 $44

$105

$32

$0

$50

$100

$200

Technology IPO Volume ($B)

$150 Technology Private Financing Volume ($B)

NASDAQ 33% Below

April 24, 2015 = Technology Market Peak,

NASDAQ @ 5,092

Annu

al T

echn

olog

y IP

O a

nd

Tech

nolo

gy P

rivat

e Fi

nanc

ing

Vol

ume

($B

)

March 10, 2000 = NASDAQ @ 5,049

Global US-Listed Technology IPO and Global Technology Venture Capital Financing

VC Funding per Company ($MM)

$3 $3 $2 $5 $4 $4 $5 $5 $6 $8 $14 $18 $11 $8 $8 $9 $8 $9 $8 $9 $7 $7 $10 $8 $9 $13 $14

*Facebook ($16B IPO) = 75% of 2012 IPO $ value. **Alibaba ($25B IPO) = 69% of 2014 IPO $ value. Source: Thomson ONE, 2015YTD as of 5/22/15. VC Funding per Company ($MM) calculated as total venture financing per year divided by number of companies receiving venture financing. Morgan Stanley Equity Capital Markets, 2015YTD as of 05/21/15. All global U.S.-listed technology IPOs over $30MM, data per Dealogic, Bloomberg, & Capital IQ.

Let’sgetbacktotalkingabout

UniqueValueProposiOon–  Ourmissionistocreatewealthbyhelpingaporholioofwell-chosenentrepreneursbuildgreatcompanies

–  OurStrategicOpera:ngCapitalcouplesfundingwithcompanybuildingexperience,productandmarketexperOseandexecuOvesupport

–  OurteambringstoourinvestorsandinvestmentsaperspecOveandtrackrecordhonedinSiliconValley

– WeseektoleadinvestmentsandlookforhighpotenOal,capitalefficientinvestmentopportuniOes

– WithourporholiocompanieswedevelopacustomizedbusinessAccelera:onPlan

WhyInvestinWisconsin?

•  Thereisoutstandingresearchthatneedstobecommercialized

•  Therearegreatstart-upcompanies•  GrowingEntrepreneurship•  Valueopportunityforourinvestors•  Valueaddwebringtoourcompanies•  OurteamallhaveOestoWisconsin

Wearelookingforcompaniesthat:•  BroadTechnologybased

•  HaveaproductnearcompleOonandarereadytoenterthemarketorlater

•  Needfundingpostangelrounds

•  Opentoworkwithusinapartnershiptobuildagreatcompany

Howdowejudge?

•  Wewantcompaniesthathaveproductsthatare–  DifferenOatedfromthecompeOOon–  Valuabletothecustomers–  Sustainable

•  Ateamthatis–  PassionateHungryandDriventocreateSuccessfulproduct/s–  SelfCriOcalandwillingtochange…fast–  Fiscallyresponsible–  Theleadershipintangible

EffecOveDecisionMaking

•  Diversityofopinionmapers…getinput

•  ConsultaOvedecisionmakingiseffecOve

•  Theremustbea“DECIDER“tomovequickly

Knowwhereyougoing!

•  AclearlydefinedMission

•  DefiniOonofWinning…nowandlater

•  ClearmeasurableobjecOvesandtacOcs

•  Becashfrugal

Howtowin!

•  CompaniesthatwindrivefreecashflowoverOme

•  Value of a business, is the present value of its future cash flows

OurTeam

CraigJohnsonAllenDinesCameronAckburyChrisWheeler

MikeSplinter DavidGuinther

Conclusion

•  Technologyhaschangedalmosteverything•  CreaOngincredibleopportunityforinvenOon•  DifferenOaOon,ValueandSustainability•  Freecashflowwins

mike@msplinter.com