2017 WELLS FARGO INVESTMENT THOUGHT LEADERSHIP FORUM

Transcription

1 2017 WELLS FARGO INVESTMENT THOUGHT LEADERSHIP FORUM December 6,

2 FORWARD LOOKING STATEMENT Some of the statements in this presentation constitute forward-looking statements, which relate to future events or our future performance or financial condition. The forward-looking statements contained inthis presentation involve risks and uncertainties, including statements as to: our future operating results; our business prospects and the prospects of our portfolio companies ; our relationships withthird-parties including venture capital investors; the impact andtiming of our unfunded obligations; the expected market for venture capital investments; the performance of our portfolio and other investments that we may make in the future; the impact of investments that we expect to make; actual and potential conflicts of interest with TriplePoint Capital LLC ( TriplePoint Capital ) and TPVG Advisers LLC (our Adviser ) and its senior investment team and Investment Committee; our contractual arrangements and relationships with third-parties; the dependence of our future success on the general economy and its impact on the industries in which we invest; the ability of our portfolio companies to achieve their objectives; our expected financings and investments; the ability of our Adviser to attract, retain and have access to highly talented professionals, including our Adviser's senior investment team; our ability to qualify and maintain our qualification as a regulated investment company, or RIC, and as a busine ss development company, or BDC; the adequacy of our cash resources and working capital; and the timing of cash flows, if any, from the operations of our portfolio companies. Such forward-looking statements may include statements preceded by, followed by or that otherwise include the words may, might, will, intend, should, could, ca n, would, expect, believe, estimate, anticipate, predict, potential, plan or similar words. We have based the forward-looking statements included in this presentation on information available to us on the date of this presentation, and we assume no obligation to update any such forward-looking statements. Actual results could differ materially from those anticipated in our forward-looking statements, and future results could differ materially from historical performance. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise,you are advised to consult any additional disclosures that we may make directly toyou or through reports that we in the future may file with the Securities and Exchange Commission ( SEC ), including annual reports on Form10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. For a further discussion of factors that could cause our future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in the Company s annual report on Form10-K and other public filings. Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any ofthose assumptions could prove tobe inaccurate, and as a result, the forward-looking statements based on those assumptions alsocould be inaccurate. In light ofthese and other uncertainties, the inclusion ofa projection or forward-looking statement in this presentation should not be regarded as a representation by us that our plans and objectives will be achieved. These risks and uncertainties include those describe d or identified in the Risk Factors section of the Company s annual report on Form 10-K and elsewhere in our filings withthe SEC. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this presentation. This presentation contains statistics and other data that has been obtained from or compiled from information made available by third-party service providers. We have not independently verified such statistics or data. These materials and any presentation of which they form a part are neither an offer to sell, nor a solicitation of an offer to purchase, an interest in the Company in any jurisdiction where the offer or sale is not permitted or would be unlawful under the securities laws of such jurisdiction. The information presented in this presentation is as of September 30, 2017 unless indicated otherwise. Page: 2

3 PRESENTERS Jim Labe Chairman & Chief Executive Officer Co-Founder of TriplePoint Capital Pioneer of the Venture Leasing and Lending Industry Founder and CEO of Comdisco Ventures Equitec Financial Group Sajal Srivastava President & Chief Investment Officer Co-Founder of TriplePoint Capital Head of the Investment and Credit Analyst Team at Comdisco Ventures Technology Investment Banking Group at Prudential Securities Andrew Olson Chief Financial Officer Joined TriplePoint Capital in July 2017 Executive Officer and Vice President of Finance at Hercules Capital Senior Manager of PricewaterhouseCoopers Financial Services and Banking Industry Practice Page: 3

4 TPVG OVERVIEW

5 TRIPLEPOINT VENTURE GROWTH BDC CORP OVERVIEW HIGHLY DIFFERENTIATED BUILT FOR SUCCESS - The 4 R s - Relationships Reputation References Returns ALIGNED WITH PUBLIC SHAREHOLDERS DELIVERING RESULTS Page: 5

6 TRIPLEPOINT VENTURE GROWTH BDC CORP OVERVIEW HIGHLY DIFFERENTIATED Investment Strategy Lend to venture capital backed companies at the venture growth stage Target companies backed by a select group of leading venture capital investors Focus on technology, life sciences, and other high growth industries Venture growth stage companies have distinct risk-mitigating characteristics Market Opportunity Large & growing market opportunity for lending to venture growth stage companies Highly fragmented, underserved market with high barriers to entry Complements equity investment from VC investors which helps to reduce downside Investment Objective Provide highly-customized, senior secured growth capital loans Targeted returns of 10% - 18% on debt investments from interest and fees Additional upside through equity kickers in the form of warrants Use Case For Venture Lending Ability to grow faster, finance business expansion & extend runway enabling companies to achieve more milestones and command a higher future valuation Longer exit timing for IPOs and M&A requires more capital Enables diversification of funding sources Page: 6

7 TRIPLEPOINT VENTURE GROWTH BDC CORP OVERVIEW BUILT FOR SUCCESS Structure Externally-managed business development company (BDC) Common stock trades on the New York Stock Exchange: TPVG $75 million of notes trade on the New York Stock Exchange: TPVY Unique Sponsor Relationship Industry Leading Expertise Managed by TriplePoint Capital, the leading global financing partner to venture capital backed companies across all stages of development Exceptional brand name, reputation, track record, venture capital investor relationships and direct originations capabilities Highly experienced executive and investment teams with co-founders that have worked together for more than 18 years Proprietary processes benefiting from co-founders track record of lending to more than 2,000 companies and deploying more than $7 billion of capital (1) Direct Originations TriplePoint Capital originates all deal flow not a separate team for TPVG All deal flow is directly originated do not utilize brokers/agents or syndications 75% of leads and referrals are sourced from venture capital relationships Page: 6 (1) Includes track record prior to TriplePoint Capital.

8 TRIPLEPOINT VENTURE GROWTH BDC CORP OVERVIEW ALIGNED WITH PUBLIC SHAREHOLDERS Shareholder Friendly Fee Structure 1.75% management fee 8% annualized hurdle rate for income incentive fee Total return requirement whereby incentive fees are capped at 20% of cumulative pre-incentive fee net income looking back to our IPO date Non-Dilutive Equity Offerings All equity offerings have been at or above net asset value Have not requested shareholder approval to raise equity below NAV Adviser has paid more than $11 million of offering expenses Discipline In Managing Capital Sold $22 million of stock to funds managed by Goldman Sachs Asset Management, LP in a PIPE transaction in October 2017 at $13.54 per share Repurchased $11 million of stock (1) in 2015 and 2016 at $11.48 per share Page: 7 (1) Including commissions.

9 TRIPLEPOINT VENTURE GROWTH BDC CORP OVERVIEW DELIVERING RESULTS Demonstrated Originations Capabilities (1) $1.7 billion of signed term sheets $1.3 billion of total originations $690 million of total fundings High Yielding, High Quality Portfolio (1) (2) $311 million of funded investments Weighted average annualized portfolio yield of 15.4% in Q Includes 32 warrants and 12 equity investments at $18.4 million of fair value 2.02 weighted average credit ranking of the debt investment portfolio Shareholder Returns $5.54 of cumulative distributions per share since IPO through Q $0.36 distribution paid for Q represents a 10.8% dividend yield on NAV (3) 33% total return since IPO & 27% total return year to date (4) 13% NII return on average equity and 8% NII return on average assets YTD 2017 Page: 8 (1) As of 9/30/17. Includes commitments acquired from TriplePoint Capital and originated since IPO. (2) The Company s weighted average annualized portfolio yield on debt investments may be higher than an investor s yield on an investment in shares of its common stock. The weighted average annualized portfolio yield on debt investments does not reflect operating expenses that may be incurred by the Company. (3) Annualized based on the $0.36 distributions declared for each of the quarters in 2017 and a NAV per share of $13.39 as of Q (4) Total return is the change in the ending stock price of the Company s common stock plus distributions paid from 1/1/17 to 12/1/17 assuming participation in the Company s dividend reinvestment plan divided by the 12/1/17 stock price of the Company s common stock.

10 RECENT DEVELOPMENTS THIRD QUARTER 2017 HIGHLIGHTS Signed a record $267 million of term sheets and closed $122 million of new debt commitments Funded record $83 million in new debt and equity investments 15.4% weighted average annualized portfolio yield on debt investments for the 3 nd quarter Realized $1 million of gains from the sale of warrants and equity investment, or $0.07 per share Issued $75 million of 5.75% notes due 2022 (TPVY), redeemed $55 million of 6.75% notes (TPVZ) Appointed Andrew J. Olson as Chief Financial Officer Declared a fourth quarter distribution of $0.36 per share, payable on December 1, 2017 YEAR TO DATE 2017 THROUGH THE THIRD QUARTER HIGHLIGHTS Total investment income of $40 million, or $2.53 per share Net investment income of $21 million, or $1.32 per share Signed $460 million of term sheets and closed $265 million of new debt commitments Funded $155 million in new debt and equity investments to eighteen portfolio companies 17.4% weighted average annualized portfolio yield on debt investments Paid $17 million of distributions, or $1.08 per share Page: 9

11 RECENT DEVELOPMENTS FOURTH QUARTER 2017 HIGHLIGHTS TO DATE (1) S TO DATE Raised approximately $22 million in a private placement, from investment funds managed by the Alternative Investments & Manager Selection Group of Goldman Sachs Asset Management, L.P. purchasing 1.6 million shares at $13.54 per share Signed $55 million of term sheets Closed $65 million of new debt commitments to 4 venture growth stage companies Funded $76 million in new debt and equity investments to 9 portfolio companies Have achieved the lower end of our target leverage ratio (0.6x) Page: 11 (1) As of 12/5/17. The select information set forth above is preliminary, is subject to completion of our financial closing procedures and are not a comprehensive statement of our financial results as of December 5, Our actual results as of 12/31/17 may differ materially as a result of the completion of the period and our financial closing procedures, final adjustments and other developments which may arise between now and the time that our financial results are finalized.

12 TPVG BUSINESS HIGHLIGHTS

13 TRUSTED PARTNER TO INDUSTRY LEADING VENTURE BACKED COMPANIES Page: 13 (1) Selected list of current and past TPVG portfolio companies.

14 TRIPLEPOINT CAPITAL PLATFORM OVERVIEW KEY HIGHLIGHTS Founded in 2005 by Jim Labe and Sajal Srivastava Headquartered on Sand Hill Road in Silicon Valley The TriplePoint platform has committed more than $4 billion to 500 companies across the globe Raisedmore than $2.5 billion of funding & debt capital PLATFORM the leading global financing provider devoted to serving venture capital backed companies throughout their lifespan Exceptional brand name, reputation, venture capital investor relationships & direct originations capabilities Highly experienced team utilizing proprietary and proven methods for investment process and portfolio management UNMATCHED TRACK RECORD (1) Page: 14 (1) Representative sample of TriplePoint Capital portfolio companies which have gone public or been acquired.

15 TRIPLEPOINT CAPITAL S UNIQUE LIFESPAN APPROACH Identifies Strong Opportunities and Establishes Relationships Across All Stages BDC S TARGET STAGE PUBLIC Publicly traded shares VENTURE GROWTH STAGE SEED STAGE Start-ups in conceptual phase No product development Angel and seed investors EARLY STAGE Product development Initial revenues One or more rounds of venture financing LATER STAGE Further product development Generating early revenues Additional rounds of venture financing Crossed the chasm Generally at least $20 million in revenues Building critical mass and commanding market position Received several rounds of venture capital Preparing for liquidity event Venture Capital-Backed Lifecycle Stages Page: 15

16 TPVG S APPROACH / VENTURE GROWTH STAGE We Take Our Customers Through the Red Zone to the End Zone Seed Stage Early Stage Later Stage Venture Growth Stage Page: 16

17 COMPELLING RELATIVE RISK-ADJUSTED RETURNS High Yields to Maturity With VC Equity Support and Low Total Leverage Generally short term financings (3-4 years) Higher Return Potential Through Warrants and Prepayments 10-18% (1) Typically amortizing facilities Prepayment boost returns from acceleration of fees and penalties Target loan-to-enterprise value of under 25% at time of underwriting Low total leverage profiles of obligors Benefit from equity cushion of VC sponsors TARGETED UNLEVERED RETURNS Obligors typically preparing for an IPO or M&A in the next 1-3 years Page: 17 (1) Excludes equity and warrant gains. Returns based on upfront fees, interest rates, and end of term payments. No guarantee targeted return will be achieved.

18 ILLUSTRATIVE TPVG PRODUCT PRICING SUMMARY Customized Debt Financing Based on Analysis of the Prospective Obligor PRODUCT TRANSACTION SIZE TERM COLLATERAL WARRANTS Growth Capital Loans $5 Million - $50 Million Months Senior on All Assets Typically Equipment Financings $5 Million - $25 Million Months Equipment Typically Revolving Loans $1 Million - $25 Million Months Senior on All Assets And/or Specific Asset Financed Typically Warrants Percentage of Loan Amount Direct Equity $100,000 - $5 Million Page: 18

19 TIME-TESTED INVESTMENT PROCESS & PORTFOLIO MANAGEMENT Benefits From More Than 25 Years of Experience INVESTMENT PROCESS ORIGINATIONS Leads and initial screening Process takes approximately 2 weeks to 3 or more months INVESTMENT & CREDIT ANALYSIS Initial screening performed Diligence process and detailed credit memorandum (2-4 weeks) New borrowers analyzed weekly by senior investment team INVESTMENT COMMITTEE Transaction presented to Investment Committee for approval Unanimous approval is required LEGAL Transaction negotiations and legal diligence / review Status discussed weekly with senior team 2-5 weeks, in parallel with diligence process PORTFOLIO MANAGEMENT ADMINISTRATION MONITORING CREDIT WATCH LIST Day-to-day servicing Coordinates funding requests Tracks / verifies borrower assets and collateral Tracks financial performance, compliance and risk rating Reviews all borrower updates Status / issues discussed weekly with senior team Deteriorating borrowers posted to Credit Watch List Actively works to maintain an open dialogue to limit the likelihood of a default WORK-OUT & RESTRUCTURING Decision to restructure, settle, request early pay-off or wait for an external event Sells collateral with the help of management, repossesses and auctions assets Page: 19

20 TPVG PORTFOLIO HIGHLIGHTS

21 HIGH YIELDING, HIGH QUALITY PORTFOLIO (1) (2) $292.7 MILLION (1) 15.4% YIELD $158.2 $10.7 $158.2 $7.7 MILLION (2) (1) MILLION (2) (1) DEBT PORTFOLIO YIELD PROFILE WARRANT PORTFOLIO EQUITY PORTFOLIO DEBT INVESTMENT FAIR VALUE $292.7 Million DEBT INVESTMENT COST BASIS $294.7 Million NUMBER OF OBLIGORS 19 NUMBER OF LOANS 53 WEIGHTED AVERAGE YIELD ON DEBT INVESTMENTS 15.4% COUPON INCOME 10.4% OID 0.9% END OF TERM PAYMENTS 2.2% PREPAYMENTS 1.9% WARRANT FAIR VALUE $10.7 Million WARRANT COST BASIS $8.4 Million NUMBER OF WARRANTS 32 NUMBER OF COMPANIES 32 DIRECT EQUITY FAIR VALUE $7.7 Million DIRECT EQUITY COST BASIS $6.1 Million NUMBER OF INVESTMENTS 12 NUMBER OF COMPANIES 9 Page: 21 (1) Fair value as of September 30, (2) All data as of September 30, 2017 unless indicated.

22 HIGH YIELDING, HIGH QUALITY PORTFOLIO (1) Portfolio Yield Yield & Returns Analysis 20.0% 15.0% 10.0% 14.4% 14.5% 16.9% 14.6% 14.4% 14.5% 14.5% 14.5% 14.3% 17.9% 17.5% 17.9% 17.5% 15.4% 15.7% 14.3% 13.2% 13.2% 15.1% 13.7% 13.7% 13.7% Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Core Yield Weighted Average portfolio yield 16.8% 12.5% 19.9% 13.0% 15.4% 13.5% Return on Average Equity (ROAE) and NII Return on Average Assets (ROAA) 20.0% 15.0% 10.0% 5.0% 0.0% 8.0% 9.7% 6.3% 5.8% 15.9% 8.6% 13.2% 6.9% 10.5% 8.2% 7.7% 5.8% 10.0% 11.6% 7.9% 8.5% Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 ROAE (NII/Average Equity) ROAA (NII/Average Assets) 9.1% 6.2% 12.3% 7.8% 9.0% 5.6% 14.8% 8.3% 16.6% 10.3% 8.0% 5.2% Page: 22 (1) Portfolio Yield does not include income from expired unfunded commitments

23 DIVERSIFIED, SECURED LENDING (1) Diversified Across Subsectors Of High Growth Industries Secured By Either The Entire Enterprise Or Specific Assets Page: 23 (1) Figures based on fair value as of September 30, 2017.

24 STRONG CREDIT PERFORMANCE AND PROACTIVE MONITORING (1) Credit Ratings CATEGORY FAIR VALUE % of DEBT INVESTMENT PORTFOLIO # of PORTFOLIO COMPANIES Clear (1) $65, % 4 White (2) $167, % 10 Yellow (3) $47, % 3 Orange (4) $12, % 2 Red (5) Weighted average investment ranking as of September 30, 2017: 2.02 $292, % 19 Credit Ratings Definitions Clear White Yellow Orange Red Performing above expectations and/or strong financial or enterprise profile, value or coverage. Performing at expectations and/or reasonably close to it. Reasonable financial or enterprise profile, value or coverage. All new loans are initially graded White. Performing generally below expectations and/or some proactive concern. Adequate financial or enterprise profile, value or coverage. Needs close attention due to performance materially below expectations, weak financial and/or enterprise profile, concern regarding additional capital or exit equivalent. Serious concern/trouble due to pending or actual default or equivalent. May experience partial and/or full loss. Page: 24 (1) Debt investment figures based on fair value as of September 30, Dollar amounts in thousands. Strictly Confidential

25 TPVG FINANCIAL HIGHLIGHTS

26 STRONG RETURN PROFILE WITH STABLE, COVERED DISTRIBUTIONS 14.0% 13.1% 12.0% 10.0% 8.0% 10.7% 10.0% 6.9% 7.2% 7.0% 10.5% 7.9% 6.0% 4.0% 2.0% 0.0% YTD'2017 NII Return on Average Assets NII Return on Average Equity $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 $1.30 $1.46 $1.44 $1.42 $1.44 $1.22 $1.32 $1.08 (1) YTD'2017 NII Distributions Page: 26 (1) YTD 2017 as of September 30, covers period from IPO (March 5, 2014) through December 31, 2014.

27 DIVERSIFIED FUNDING SOURCES & WELL POSITIONED FOR GROWTH Carefully Constructed and Optimized With Room For Expansion (1) $158 Million of Unfunded Commitments Provide Visibility For Near Term Growth (2) Equity (Public) $114.5 Equity (Private) $ Notes $50.0 Dependent on Milestones $25.5 Credit Facilities $108.1 Non-Milestones Dependent $74.8 $22.6 Leverage Capacity (at 1:1 debt to equity) Page: 27 (1) Capitalization as of September 30, 2017 adjusted for the private placement on October 25, (2) As of September 30, 2017

28 FINANCIAL HIGHLIGHTS STATEMENT OF OPERATIONS 3 Months 9 Months Ended 9/30/17 Ended 9/30/16 Ended 9/30/17 Ended 9/30/16 Total investment and other income $10,419 $12,502 $40,405 $32,986 Total operating expenses 6,052 6,007 19,288 14,805 Net investment income (NII) 4,367 6,495 21,117 18,181 Net realized and net change in unrealized (losses)gains Net increase in net assets resulting from operations (688) 4,940 (5,740) (14,000) $3,679 $11,435 $15,377 $4,181 Net investment income per share $0.27 $0.40 $1.32 $1.12 Net increase in net assets per share $0.23 $0.71 $0.96 $0.26 Return on Equity ** 6.8% 21.6% 9.5% 2.5% Return on Assets ** 4.4% 13.7% 5.8% 1.7% Page: 28 * In Thousands Except Per Share Data ** Annualized

29 FINANCIAL HIGHLIGHTS STATEMENT OF ASSETS & LIABILITIES 9/30/17 6/30/17 12/31/16 9/30/16 Investments at fair value $311,136 $253,804 $374,311 $308,857 Short-term investments $94,962 $89,943 $39,990 $79,829 Cash** $8,472 $83,471 $15,478 $20,762 Total assets $417,605 $430,595 $434,222 $414,346 Borrowings $97,802 $113,477 $168,288 $110,194 Total liabilities $202,846 $214,062 $218,359 $199,954 Total net assets $214,759 $216,533 $215,863 $214,392 Net asset value per share $13.39 $13.52 $13.51 $13.44 Page: 29 * In Thousands Except Per Share Data ** Includes Restricted Cash

30 TRIPLEPOINT VENTURE GROWTH BDC CORP HIGHLY DIFFERENTIATED BUILT FOR SUCCESS - The 4 R s - Relationships Reputation References Returns ALIGNED WITH PUBLIC SHAREHOLDERS DELIVERING RESULTS Page: 30

31 RESEARCH COVERAGE Casey Alexander (646) Mitchel Penn (410) Jonathan Bock (704) Page: 31 Strictly Confidential

32 APPENDIX

33 FINANCIAL HIGHLIGHTS Portfolio Size Leverage Ratio $400.0 $350.0 $300.0 $250.0 $200.0 $150.0 $100.0 $50.0 $ in Millions $247.7 $258.0 $251.7 $205.7 $9.4 $10.4 $11.6 $143.7 $7.8 $6.4 $238.3 $247.6 $240.1 $198.0 $137.3 $208.3 $13.4 $194.9 $282.8 $271.7 $262.1 $12.2 $12.1 $13.9 $248.2 $259.6 $270.6 $308.9 $299.6 $12.8 $16.3 $286.8 $292.6 $374.3 $14.3 $360.0 $328.4 $15.4 $313.0 $253.8 $17.9 $235.9 $311.1 $18.4 $ X 0.80 X 0.70 X 0.60 X 0.50 X 0.40 X 0.30 X 0.20 X 0.10 X 0.14X 0.48X 0.75X 0.81X 0.50X 0.25X 0.28X 0.31X 0.32X 0.50X 0.51X 0.78X 0.65X 0.52X 0.47X $0.0 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q2-2017* Q Debt portfolio Warrant and equity portfolio Total Portfolio Leverage Ratio at period end Portfolio Yield* Distributions 25.0% % 15.0% 16.9% 17.9% 17.5% 17.9% 14.3% 14.4% 14.5% 2.40% 14.6% 3.6% 0.1% 6.8% 3.10% 3.3% 3.6% 3.4% 3.5% 3.7% 2.5% 15.7% 1.4% 16.8% 15.1% 13.2% 13.7% 1.4% 4.3% 0.0% 19.9% 6.9% 15.4% 1.9% 5.0% 3.7% 3.1% 3.2% 3.3% 2.4% 2.4% 3.1% $ % 5.0% 11.2% 11.1% 10.9% 11.1% 11.0% 10.6% 10.7% 10.4% 10.6% 10.1% 10.5% 10.4% 10.1% 10.6% 10.4% $0.30 $0.32 $0.36 $0.36 $0.36 $0.36 $0.36 $0.36 $0.36 $0.36 $0.36 $0.36 $0.36 $ % Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Coupon income Accretion of discount and end-of-term payments Prepayments Weighted average portfolio yield - $0.09 Q1 - Q Q Q Q Q Q Q Q Q Q Q Q Q Q * Regular distributions Special dividend Page: 33 * Portfolio Yield does not include income from expired unfunded commitments * 27 Days = $0.30 for quarter;

34 VENTURE CAPITAL MARKET Venture Investment by Quarter Commitments by Year $ in Billions $9 $10 $12 $16 $13 $17 $18 $21 $20 $14 $16 $17 $14 $12 $14 $18 $ Number of Deals $ in Billions $13 $19 $20 $18 $31 $28 $42 $ Number of Funds 0 Q Q Q Q Q Q Q1 - Q Investment Q Q Q Q2 - Q Deals Q Q Q Q YTD-2017 Venture Capital ($ B) Number of Funds 0 Venture-Backed Exits by Year Exit Timing by Year Number of Deals YTD-2017 IPOs M&A Deals Years to Exit YTD-2017 IPO M&A Page: 33 Source: PWC- Money Tree Report, National Venture Capital Association (NVCA)

35 COMPETITIVE LANDSCAPE Fragmented Market with Limited Competition Given High Barriers to Entry Seed Stage Early Stage EARLY STAGE VENTURE DEBT FUNDS Later Stage VENTURE BANKS LATER STAGE VENTURE DEBT FUNDS OTHER VENTURE BDCs Venture Growth Stage Public OPPORTUNISTIC DEBT FUNDS Page: 35