ROTH Venture. Finance Group. Member FINRA/SIPC.

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John Douglas
6 years ago
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1 ROTH Venture Finance Group Member FINRA/SIPC

ROTH VENTURE FINANCE GROUP Fast Facts about our team s history prior to joining ROTH Capital Partners, LLC: 5,000+ Prior to joining ROTH our team worked directly or indirectly with more than 5,500

particiated in clean technology financings totaling more than $900 million (1) since 2006 8 Our Team achieved major milestones, prior to joining ROTH with Infinera, Amyris, Motricity and Peregrine

2 ROTH VENTURE FINANCE GROUP Fast Facts about our team s history prior to joining ROTH Capital Partners, LLC: 5,000+ Prior to joining ROTH our team worked directly or indirectly with more than 5,500 (1) accredited investors (2) $2B+ Prior to joining ROTH, we participated in more than $2 billion (1) of financings in disruptive technology companies since 2006 $900M Prior to joining ROTH, we particiated in clean technology financings totaling more than $900 million (1) since Our Team achieved major milestones, prior to joining ROTH with Infinera, Amyris, Motricity and Peregrine going public as well as Wayport, Good Technology, Force10 and RMI being acquired by Fortune 500 companies (1) As of March 1, 2011, summary reports for both Direct and Indirect investments made through previous firms (2) Accredited investors at the time an investment was made. Many investments by our team have resulted in complete loss. Venture Capital involves a high degree of risk and investors should be comfortable with the potential of a complete loss of principal. ROTH Venture Finance Group (RVFG) Page 1 August 2013

30 OUR SECOND STORY ROTH Venture Finance Group (RVFG) provides access to investments in

comfortable with the risk and qualified to participate should know many of our venture

3 30 OUR SECOND STORY ROTH Venture Finance Group (RVFG) provides access to investments in disruptive technology companies alongside some of the most prestigious venture capital firms in the world. Previously, our group acted as a placement agent for more than $2 billion of private capital across a variety of technology sectors. As a result, clients of ROTH gain access to opportunities normally reserved for institutional investors. These opportunities involve a high degree of risk and may not be suitable for some investors. Investors comfortable with the risk and qualified to participate should know many of our venture capital relationships provided seed-stage capital to some of the most successful companies with disruptive technologies, for example: (1) ROTH Venture Finance Group has not invested in any of the above companies. (1) Source: KPCB, NEA, Benchmark Capital website. ROTH Venture Finance Group (RVFG) Page 2 August 2013

OUR GOALS 1 capital 2 Allow our clients the ability to

Provide clients access to disruptive technology

Provide access to an asset class capable of achieving

transparency on their investments 5 investment Provide

performance is not indicative of future returns.

4 OUR GOALS 1 capital 2 Allow our clients the ability to invest alongside some of the world s top venture firms Provide clients access to disruptive technology companies before they enter the public markets 3 Provide access to an asset class capable of achieving higher than average returns (1) 4 Provide clients with transparency on their investments 5 investment Provide clients greater control over decisions (1) Past performance is not indicative of future returns. No representation or warranty is made that any returns indicated will be achieved. Sources: Cambridge Associates LLC, (dated September 30,2012) Dow Jones & Company, Inc., Frank Russell Company, Standard and Poor s, and Thomson Datastream. ROTH Venture Finance Group (RVFG) Page 3 August 2013

YOUR CAPITAL YOUR DECISION ROTH Venture Finance Group

venture capital in addition to the traditional fund-based

We believe you should have discretion, transparency,

We enable you to allocate capital into specific companies

construct your own diversified portfolio of individual

5 YOUR CAPITAL YOUR DECISION ROTH Venture Finance Group provides our clients a unique approach to investing in venture capital in addition to the traditional fund-based model. We believe you should have discretion, transparency, insight and control over your investment opportunities. We enable you to allocate capital into specific companies in a manner unavailable to most investors, allowing you to construct your own diversified portfolio of individual companies. DIRECT investments single purpose PARTNERSHIPS PROFESSIONALLY managed funds ROTH Venture Finance Group (RVFG) Page 4 August 2013

2 Since 1981, top-tier venture capital firms have achieved close to a 2-to-1 return advantage over the bottom quartile venture capital firms.

0 Net of fees, expenses, and carried interests Upper Median (3) Lower Quartile (2) Quartile (2) (1) Paid-In Capital is the cumulative amount of capital that has

The amount of paid-in capital that has actually been invested into the fund s portfolio companies is simply referred to as invested capital (source -

The upper (top 25%) and lower (bottom 25%) quartiles based on the individual fund IRRs (Internal Rate of Return) included in a vintage year (year of inception).

(3) Median is the middle fund IRR of the group of individual fund IRRs included in a vintage year.

6 2 Since 1981, top-tier venture capital firms have achieved close to a 2-to-1 return advantage over the bottom quartile venture capital firms. Total Value to Paid-In Capital (TVPIC) (1) TVPIC Ratio ACCESSING the TOP VENTURE CAPITAL FIRMS Net of fees, expenses, and carried interests Upper Median (3) Lower Quartile (2) Quartile (2) (1) Paid-In Capital is the cumulative amount of capital that has been drawn down. The amount of paid-in capital that has actually been invested into the fund s portfolio companies is simply referred to as invested capital (source - investopdedia.com) (2) Upper/ lower quartile are minimum or maximum value which is established to help serve as benchmark for comparison or guidance. The upper (top 25%) and lower (bottom 25%) quartiles based on the individual fund IRRs (Internal Rate of Return) included in a vintage year (year of inception). Can be used in conjunction with the median to determine quartile placement. (3) Median is the middle fund IRR of the group of individual fund IRRs included in a vintage year. Source: Cambridge Associates LLC Benchmark Statistics, Based on 1361 U.S. venture capital funds formed between 1981 and Latest available data as of 9/30/2012. The above chart represents criteria evaluated by RVFG which may be used to identify investment opportunities. It does not constitute RVFG performance history. Past performance is not indicative of future returns. No representation or warranty is made that any returns indicated will be achieved. ROTH Venture Finance Group (RVFG) Page 5 August 2013

7 OUR EXPERIENCE Disclosure: Historically, members of the ROTH Venture Finance Group (RFVG) were either directly or indirectly involved in the financing activities of the listed companies. This list does not reflect all investments that members of RFVG were directly or indirectly involved with prior to joining ROTH Capital Partners. ROTH Venture Finance Group (RVFG) Page 6 August 2013

8 FAQ Q How does the ROTH Venture Finance Group get access to these opportunities? Members of the ROTH Venture Finance Group have been placing capital alongside top-tier venture capital firms for the past eight years, prior to joining ROTH Capital Partners. With more than $2 billion of capital placed in companies backed by our venture capital relationships, we have proven to be a valuable partner. Our venture relationships appreciate that our interests are aligned with those of our investors and the companies in which our clients invest. Q Does investing alongside venture capital firms or investing just in later stage companies eliminate the risks associated with venture capital? Investing in later stage companies contains the risk of losing principal and could result in a complete loss regardless of co-investors. Investors should be comfortable with the risks prior to evaluating any investment. Q I want to make an investment into a company that is representing that they will achieve certain financial projections or liquidity within a defined period of time. How accurate are those representations? Like any company, management will attempt to forecast and provide forward looking statements surrounding financial projections, customer adoption and need for future financings. Investors should recognize that these companies have limited operating histories and may not be able to achieve their stated goals and projections. (1) Sources: Cambridge Associates LLC, Dow Jones & Company, Inc., Frank Russell Company, Standard and Poor s, and Thomson Datastream. ROTH Venture Finance Group (RVFG) Page 7 August 2013

ROTH Capital Partners Risk Disclosure: ILLIQUID VENTURE CAPITAL AND PRIVATE EQUITY INVESTING REPRESENT HIGH-RISK INVESTMENTS SUITABLE ONLY FOR SOPHISTICATED AND ACCREDITED INVESTORS WHO CAN TOLERATE

9 ROTH Capital Partners Risk Disclosure: ILLIQUID VENTURE CAPITAL AND PRIVATE EQUITY INVESTING REPRESENT HIGH-RISK INVESTMENTS SUITABLE ONLY FOR SOPHISTICATED AND ACCREDITED INVESTORS WHO CAN TOLERATE THE LOSS OF THEIR ENTIRE INVESTMENT. FOR THE DEFINITION OF AN ACCREDITED INVESTOR, PLEASE CONTACT YOUR ROTH VENTURE FINANCE REPRESENTATIVE OR CONTACT ROTH COMPLIANCE at ALTHOUGH WE BELIEVE VENTURE CAPITAL POTENTIALLY CAN GENERATE HIGHER YIELDS, IT ALSO IS AN EXTREMELY HIGH-RISK INVESTMENT. SUCCESS OF SOME OF THE LEADING VENTURE CAPITAL FIRMS IS MEASURED BY THEIR SUCCESS IN PAST DEALS. HOWEVER, THERE IS NO GUARANTEE THAT SIMILAR PERFORMANCE OR SUCCESS MAY BE ACHIEVED IN THE FUTURE. ADDITIONALLY, NOT ALL COMPANIES BACKED BY VENTURE CAPITAL FIRMS ARE SUCCESSFUL. IN FACT, VENTURE CAPITAL-BACKED COMPANIES HAVE A HIGH PROBABILITY OF FAILURE. THIS MATERIAL IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY. ADDITIONALLY, THE MATERIAL CONTAINED HEREIN IS NOT A PERSONAL RECOMMENDATION FOR ANY PARTICULAR INVESTOR OR CLIENT AND DOES NOT TAKE INTO ACCOUNT THE FINANCIAL, INVESTMENT OR OTHER OBJECTIVES OR NEEDS OF, AND MAY NOT BE SUITABLE FOR, ANY PARTICULAR INVESTOR OR CLIENT. BEFORE BUYING, INVESTORS AND CLIENTS SHOULD CONSIDER WHETHER THE INVESTMENT IS SUITABLE. ROTH CAPITAL PARTNERS, LLC. DOES NOT PROVIDE TAX ADVICE AND THE VIEWS IN THE MATERIAL DO NOT TAKE INTO ACCOUNT ANY CLIENT S OR INVESTOR S TAX SITUATION. CLIENTS AND INVESTORS SHOULD CONSULT THEIR TAX ADVISERS BEFORE INVESTING. FOR INDIVIDUAL ADVICE, PLEASE CONTACT YOUR ROTH VENTURE FINANCE REPRESENTATIVE. ROTH Capital Partners, LLC 2013 ROTH Venture Finance Group (RVFG) Page 8 August 2013

Cambridge Associates LLC U.S. Venture Capital Index and Selected Benchmark Statistics

Cambridge Associates LLC U.S. Venture Capital Index and Selected Benchmark Statistics Official Performance Benchmark of the Table of Contents U.S. Venture Capital Fund Index Analysis 2 Fund Since Inception