PALMETTO ANGEL 2014 FUND

May 2014

CONFIDENTIAL 2

The South Carolina Angel Network (SCAN) is a network of angel investor dedicated to improving the infrastructure of South Carolina’s entrepreneurial ecosystem by providing early stage capital formation to small businesses

South Carolina Angel Network

█ Launched in 2008 as the Upstate’s angel investor group. Over 50 accredited investors that invest in early-stage businesses

█ Invested $9.0 million in 55 rounds over its first six years, primarily in South Carolina companies

█ Launched in 2013 as Columbia’s angel investor membership network, focused on startups in the Midlands

█ Uses processes and structures from the most successful angel groups throughout the country

CONFIDENTIAL 3

Palmetto Angel 2014 Fund Highlights Fund size Up to $5 million

Fees 2.5% management fee, 10% carried interest on profits, per deal (for SCAN members)

Commitment period 4 year investment period, 10 year fund life Investor commitment $25,000 or more

Investment strategy and triggers

- Will invest in 15-20 southeastern early stage companies - Seed or Series A rounds, usually preferred equity - Defendable, scalable, capital efficient businesses - Primarily manufacturing, logistics, or healthcare companies – industries the angels know best - Matches (usually 1:1) investments of $100,000 or more made by 5 or more SCAN affiliate organizations’ angels

Fund manager SCAN leadership team may veto or reduce the match

Target returns 50% IRR target for each deal. Target fund return of 20% Also access to state Angel Investor tax credit of 35%

CONFIDENTIAL 4

Average return: 2.6x investment in

3.5 years = 27% IRR

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Investments by angels in groups

█ The most comprehensive study of historical returns to investments made through angel groups found an average 27% annual return (IRR)

█ This compares favorably with other similar alternative investment asset classes

█ Returns for individual deals are highly variable – most lose money, so diversification is critical

Angel group investments have historically generated impressive returns

CONFIDENTIAL 5

UCAN portfolio and track record

Portfolio: █ 33 companies █ 55 investment rounds South Carolina: █ 64% of investments █ 81% of capital Returns: █ 3 full (cash) and 2 stock

realizations █ Multiple companies

generating positive partial realizations

█ 9 positive “uprounds” █ Only 6 write-downs █ Others held at cost with

upside potential █ Portfolio in line with

industry averages (20% net IRR) for this point in its life cycle

CONFIDENTIAL 6

Investment Thesis 1. Capital Gap: addresses capital shortage within a proven asset class 2. Due Diligence: good diligence improves returns. Angels and fund team

together provide comprehensive diligence 3. Investor Depth: investors avoid gambling on a fund manager “picking

stocks;” fund relies on the aggregate expertise of nearly 70 experienced and successful business leaders and investors

4. Diversification: angel investments often lose money so portfolio diversification is crucial. Fund will invest in 15-20 companies across multiple rounds

5. Professional Fund Structure: dedicated team provides more diligence and investment monitoring and mentoring to enhance returns

6. Community Support: investments aid job creation and foster the entrepreneurial ecosystem, generating financial returns while improving the local economy Investors have an unusual opportunity to achieve attractive returns

CONFIDENTIAL 7

Disclaimer and regulatory information The Palmetto Angel Fund is open only to a selected group of sophisticated investors who are “accredited investors” under federal securities laws. Under no circumstances is this presentation to be used or considered an offer to sell, or a solicitation of an offer to buy, any security or interests in the Fund (“Securities”). Any offering of Securities may be made only through a Confidential Private Placement Memorandum and the definitive operating documents of the Palmetto Angel 2014 Fund (“the Fund”, and such documents the “Fund Documents”). Any offering of Securities may be sold only to accredited investors, which for natural persons are investors who meet certain minimum annual income or net worth thresholds. Any Securities would be offered in reliance on an exemption from the registration requirements of the Securities Act of 1933 and are not required to comply with specific disclosure requirements that apply to registration under the Securities Act. The Securities and Exchange Commission has not passed upon the merits of or given its approval to the Securities, the terms of the offering, or the accuracy or completeness of any offering materials. This presentation is confidential, may not be distributed, was prepared solely for discussion purposes, and was prepared without regard to the specific objectives, financial situation, or needs of any recipient. All information herein, including proposed fund terms, are subject to change without notice, and there is no obligation to update this presentation to reflect subsequent developments. This presentation is qualified in its entirety by the detailed information, including the substantial risks associated with an investment in the Fund, in the Fund Documents. This presentation is not to be relied upon for any investment decision, and this presentation is not, and should not be assumed to be, complete. The contents of this presentation are not to be construed as legal, accounting, business, or tax advice. The Fund may not be a suitable investment for the recipient of this presentation. The Securities are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell their securities. Information used herein was taken from sources believed to be reliable, but SCAN, UCAN, and all related entities and personnel make no representation, warranty (expressed or implied), or endorsement as to the accuracy, reliability, adequacy, or completeness of any information or analysis contained herein, and expressly disclaims any and all liability that may be based on such information, errors therein, or omissions therefrom. Certain information herein may constitute forward-looking statements. Due to various risks, uncertainties, and assumptions made in the analysis, actual events or results or the actual performance of the investments covered by this presentation may differ materially from those described. The information herein is not intended to be promissory or relied upon. An investment in the Fund is speculative, involves a high degree of risk, and is suitable only for sophisticated investors who can bear substantial investment losses and have no need for liquidity. No assurance or guarantees can be given that the Fund’s investment strategy will prove successful and/or that the investment objectives of the Fund will be achieved or that an investor will receive a return of all or part of its investment. The Fund may invest alongside multiple SCAN affiliate member organizations. The Fund and its General Partner do not control the affiliates of SCAN, which may change over time, so Fund returns may depend upon the investments made by organizations not discussed in this presentation. Performance data herein represents industry data on past performance only; past performance does not guarantee future results (of either the current SCAN portfolios or investments made by the Fund); current performance may be higher or lower than the performance data presented. UCAN and the Fund are not required by law to follow any standard methodology when calculating and representing performance data, and the performance of the fund may not be directly comparable to the performance of other private or registered funds.