Accelerating Innovation in the US June 2012

June 29, 2012

Accelerating Innovation

WAVELENGTH USA 2012

Overview

Our Mission:To increase our clients’ probability of success

Build Deep RelationshipsGive AdviceMake It Easy To Do Business With UsSolve Problems

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A Unique Financial Services CompanyDifferentiated business model

• Focus on “innovation” markets• Balance sheet lender• Strong deposit franchise• Diversified revenue streams

Leader• Leading market share• More than 600 venture firm clients• The bank for innovation companies

Established (1)

• 27 U.S. and seven international offices • $20.8 billion in total assets• $35.8 billion in total client funds (2)

(1) As of 3/31/12(2) Total client funds includes deposits and off-balance sheet client investment funds

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An Expansive Platform

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Global Commercial Banking Global Treasury Management Investment Solutions Integrated Global Platform

409A Valuation Services

Helping Clients Access Global Markets and Opportunities

For Select Clients Customized Loan Solutions and Client

Experience

VC Funds Management Domestic and Global Funds

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We Serve The Innovation Economy

~50%Market Share

<15%Market Share

< 10%Market Share

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VCs & PECleantech

Life SciencesTechnology

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Across the Globe

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A Different Kind of Bank …

Innovation Ecosystem & Funding Sources

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Silicon Valley Innovation Ecosystem

Government Policy

Experienced Managers

Venture Capital Entrepreneurs

Capital Markets

R&D Universities

Corporations Service Providers

INNOVATION

Credit Providers

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Venture Capital Primary source of early-stage

risk capital High risk/high return Filter universe of startup

companies Business resources,

networks, and management expertise

Components of Innovation Ecosystem

Capital Markets Liquidity for investors

and entrepreneurs Growth capital

Government Policy

Experienced Managers

Venture Capital Entrepreneurs

Capital Markets

R&D Universities

Corporations Service Providers

INNOVATION

Credit Providers

Credit Providers Facilitate growth and capital

flexibility, and enhance returns Provide leverage, prevent

equity dilution

Entrepreneurs Primary catalysts for

innovation Risk takers

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VC Ecosystem (Cont.)

Government Policy

Experienced Managers

Venture Capital Entrepreneurs

Capital Markets

R&D Universities

Corporations Service Providers

INNOVATION

Credit Providers

R&D Universities Develop technology and

IP Fuel innovative ideas Primary source of

technology experts

Corporations Technology

infrastructure and corporate R&D assets

First customers of many startups

Strategic investments/ acquisitions

Government Policy Favorable tax/

regulatory regimes, policies and incentives

Direct funding of R&D, investment vehicles, and companies

Ex-Im Bank; SBA loans

Service Providers Legal, accounting,

PR, etc.

Experienced Managers Effective leadership Strong navigation skills

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The Innovation Ecosystem (The Funnel)

Universities Research Labs Corporate R&D Inventors

“Start-Up” Companies

Innovation Sources Government grants and corporate investments promote R&D

Companies financed by: Government grants Angel investors Venture Capital investors “Friends and family” investorsMarket factors filter economically

viable businesses

VC investors help pick the “winners”

Venture debt helps VCs pick more winners

VC Only

VC + Venture Debt

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Funding Sources by Development StageRe

venu

e

Start Up Early Growth Late Stage/Public

University R&D

Family and Friends

Incubators

Angel Investors

Government (SBA)

Venture Capital

Venture Debt

Corporate VC

Bank Debt

Private Equity

Public Equity

Time

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Funding Sources: Debt vs. Equity

• Expand runway• Reduce equity dilution• Lower cost of capital• Expand knowledge &

relationships• Support growth

VC/PE Investors

• Develop innovative solutions

• Create jobs• Fuel SME growth• Foster economic growth

• Select and fund innovation• Share experience• Provide strategic advice• Establish discipline• Mitigate risk

Technology Companies

Collaboration/Risk Mitigation

EquityLe

verage

Venture Debt

ELEMENTS OF AN ENTREPRENEURIAL/INNOVATION ENVIRONMENT

• Perceived Opportunities• Culture of Risk Takers and Respect for Failure• Support Infrastructure• Geographic Proximity and Networking• Propagation of Knowledge and Skills• Cooperative Competition• First Class Educational System Encouraging Entrepreneurship• Capital and Liquidity• Rewards and Honors• Repetition and Reinvestment