www.freshtrackscap.com*@freshtrackscap

@VTCairnCross*cairn@freshtrackscap.com*www.linkedin.com/in/cairncross

Random Picture Page

FreshTracks Capital Overview

• Founded in 2000 • Based in Shelburne and

focused on investing in VT

• Raised 3 Funds (2001, 2007 & 2013)

• Invested in 26 portfolio companies

National VC trends mostly negative

• Only 205 Firms raised new money in 2013• 50% of VC Funds raised in 2013 went to 14 firms. • Dwindling pool of traditional venture capital nationally• Increased concentration in hands of a few big firms

National VC Industry Trends: Growth 1990 – 2000, Flat 2000 – 2007, Declining since 2007

What about the angels?

• $ Deployed is similar in comparing the two asset classes, however number of angel deals is 18X the number of VC deals!

History of “Venture Capital”

What About Vermont?

Hey, There’s a dot in Vermont!

VT VC Funding Compared to the Region

State Deals/MM population

U.S. Rank

VT 6.0 15

NH 5.0 21

ME 4.5 26

CT 14.4 8

MA 61.7 1

NY 17.0 6

RI 14.2 9 • Average $25MM of funding past 6 years, YTD Sept 2013 = $29MM

http://www.ssti.org/Digest/Tables/013013.xlsx

• In 2011 Vermont was 1st in dollars per capita basis

• VT was in the Top 10 twice in past 6 years for a dollars per capita

• VT in Top 10 once in past 6 years on deals per capita basis

Vermont VC Trends Remain Positive (PWC Data)

What about Vermont Angels?

• Assume same metrics as national (18 angel deals per 1 VC deal & approximately equal dollars)

• That would suggest 100 investments per year at an average of $250K round size.

• However, no measured statistics on angel investing exist in Vermont.

FreshTracks Capital Summary

• Raised 3 Funds from more than 75 discrete Limited Partners: – FTI, 2001 Vintage- $11MM– FTII, 2007 Vintage- $14MM– FTIII, 2013 Vintage- $10MM to date

• FreshTracks remains the only independent Vermont-based VC firm, while other sources of risk capital have launched over past 13 years: VSJF Flexible Capital Fund, Vermont Seed Capital Fund, etc.

FreshTracks Capital

• 26 Investments made since inception• 35% “seed stage”, 65% “early stage”• Focus on Vermont (75%+ of dollars invested in VT)• Industries including:

– Media– Software enabled– Advanced manufacturing– Health Care Information Technology– Consumer Products– Alternative Energy (not project finance)– Financial technologies

FreshTracks Capital’s Impact on VT

• On average every dollar FreshTracks invests in VT is leveraged by other investors at an 8:1 ratio

• ~450 employees at our current VT portfolio cos.

• Recent notable Vermont exits:

– EatingWell sold to Meredith Corporation (NYSE: MDP $2.2BN market cap). MDP has kept EWMG in VT, added jobs and built new office and test kitchen space

– NEHP sold to Sequel Industrial Products (now Critical Process Solutions). Company remains in VT & significantly grown employment base post acquisition.

VT Deal Flow & Investment Pace Accelerating

• FreshTracks III likely to take less than 12 months. 2 deals closed for FT3 so far in 4 months, 1 term sheet signed & 1 further term sheet issued.

• FreshTracks’ annual deal flow has grown 4X since 2000.

VT Entrepreneurial Resources Avail. Today (that did not exist when FreshTracks started)

Why We are Bullish on the VT Opportunity

• Take a page from Brad Feld’s “Startup Communities”. His thesis: – Entrepreneurs should lead the startup

community– Leaders must have a long term

commitment (~20 years)– Startup Community must be inclusive

of anyone who wants to participate– Community must have continual

activities that engage the entire entrepreneurial stack

How do we Stack Up?

• Increasing number of activities to engage the entrepreneurial stack

• Very inclusive community • FreshTracks & others have long

term vision• Entrepreneurs are beginning to lead

www.freshtrackscap.com*@freshtrackscap

@VTCairnCross*cairn@freshtrackscap.com*www.linkedin.com/in/cairncross