Richard PrytulaPresident

RPrytula@TechnoCap.com

2

Technology Capital

TechnoCap is a private venture capital company that :

• is tier one US style V.C. based in Montreal

• invests in information technology companies

• invests in networking hardware and enterprise software & services

• invests in companies with a high growth potential (eg. Hyperchip)

TechnoCap builds technology companies.

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Investment Geography

TechnoCap is a Montreal-based VC that has investments in:• Québec• Ontario• Western Canada

Cross Border TechnoAffiliate Presence:

U.S.: Washington D.C., Boston, Seattle, Boulder, San Jose,Newport Beach

Europe: London, Paris, Amsterdam, Cologne

4

Why Canada ?

• Low-burn rates

• Low valuations

• Experienced resident VCs

• Helpful government support

• Montreal is the gateway to the European market

• World-class university & corporate talent pool

5

TechnoCap Focus

• NetLaw based companies– Net infrastructure is doubling every 6 to 12 months

• Massively parallel technologies– Revolutionary technologies (100 to 1000 x performance)

• Massively scalable products– From one user to 100s of millions of users on same platform

• Massively scalable business models– operating costs reduced by 90%

• Building massive technology companies

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Investment Categories

TechnoCap Classic– Start-ups @ webspeed– Seed or start-up companies– Active investor via TechnoAffiliates program

TechnoCap Expansion– Expansion companies– Co-investor with US investors

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TechnoCap Sectors

WAN – Wide Area NetworksLAN – LocalSAN – Storage BLAN – Broad LocalCAN – Clustered Servers WiAN – WirelessChAN – Chip Area Networks

EAN – Enterprise Area NetworksSCAN – Supply Chain DAN – Data Area Networks

NAN – Net CommunicationsAAN – Application Area Networks

Enterprise Software

Hyperchip

YottaYottaBigBangwidth

FreeBalancewebplanBiblioMondo

Enterprise Services

Networking Hardware

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TechnoCap InvestmentsNetworking Hardware

Networking

Hardware

webpayphone networkSOLD

petabit routing

broadLAN

yottabyte netstorage

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TechnoCap InvestmentsEnterprise Software & Services

Enterprise

Software

Enterprise

Services

e-library network

e-supply chain network

e-government network

e-health networkSOLD

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Core Optical

Carrier WAN

Enterprise LAN

Individual Webtop

TechnoCap Vision

HyperchipPetabit Routing

Networking Hardware

BigBangwidthBroadLan

YottaYottaNetStorage OS

InfiniteSOSInfinite Scalable Optical OS

OS

VideoCarrierContent and Storage Carrier

JivewayApplications Carrier

Enterprise Services

EnterpriseSoftware

webplan – e-Supply Chain

FreeBalance – e-GovernmentBiblioMondo – e-Library

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Technology Alliances - University of TechnoCap’s investee companies

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Technology Alliances – Corporateof TechnoCap’s investee companies

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Management

• Richard Prytula TechnoLeverage Strategy & Positioning

• Marc Balevi TechnoDealMaker Finance & Legal

• Susan Read TechnoBrainGain Recruiting & Culture

• Estelle Havva TechnoWallSt Co-investors & Analysts

• Frances Layden TechnoFinance Finance & Infrastructure

Positron Fiber

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Team Roles over Life of Investment

Portfolio Company Phase

Idea Initiation

TechnoLeverage

TechnoBrainGain

TechnoDealMaker

TechnoFinance

TechnoWallSt

Startup Development & Growth M&A or IPO

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TechnoCap as a Next Generation VC Firm

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•TechnoAnge – Employees of TechnoCap & technology angels

Investors – TechnoCap

National Bank of Canada

•CDP Capital – Technology Ventures – Canada’s largest pension fund - $100 billion

•Bombardier Trust & Bombardier Trust (UK)– Bombardier is the global leader in rail car production & third largest civil aircraft manufacturer in the world

•Desjardins Pension Funds– The largest Canadian credit union

•National Bank– Canada’s sixth largest bank

Capital: $250,000,000

•Solidarity Fund FTQ– Canada’s largest labor fund

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US & European Financial Co-Investors with TechnoCap

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Corporate Co-Investors with TechnoCap

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US Venture Capital Co-Investors with TechnoCap

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Investors’ Choice Awards

Ten major awards in five cities won by four TechnoCap TechnoAffiliates:

• FreeBalance Canadian IT Financing Forum 2002 Toronto • FreeBalance Venture Fair 2002 Toronto• YottaYotta Network Outlook 2002 San Francisco

• Hyperchip Network Outlook 2001 San Francisco• YottaYotta Network Outlook 2001 San Francisco• YottaYotta Venture Fair 2001 Toronto• BiblioMondo Canadian IT Financing Forum 2001 Toronto

• YottaYotta Venture Entrepreneur’s Summit 2000 Boston• YottaYotta Banff Venture Forum 2000 Banff• BiblioMondo Alliance Financing Forum 2000 Montreal

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Other Awards

FreeBalance Top Ten Companies to Watch in 2001

webplan Upside Hot 100 private companies to watch in 2001

webplan Start Magazine’s Hottest Companies in 2001

YottaYotta Best Investment Opportunity at VentureFair 2001YottaYotta Wayne Karpoff named Edmonton Ambassador 2001

Hyperchip CataAlliance’s Emerging Technology of 2001

Hyperchip Telecommunications’ Hot Start-ups of 2001

Hyperchip First Canadian company to break $100M in venture financing

webplan Canada’s 50 best managed private companies in 2000

webplan Branham’s 200 Leading Software and Services Companies

TechnoCap Four of Canada’s Top 50 VC Deals in 2000

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TechnoWallStTechnoAffiliate Presentations at Institutional Investor Conferences

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TechnoWallStAnalysts’ Reports covering TechnoAffiliates

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TechnoUSmedia FinancialMedia covering TechnoAffiliates

US

Canada

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TechnoBrainGainPedigree of Hires of TechnoAffiliates – Networking Hardware

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TechnoBrainGainPedigree of Hires of TechnoAffiliates – Enterprise Software & Services

Services

Software

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Advisory Boardof TechnoAffiliates (members’ pedigree)

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Venture Capital Process

Typical investment cycle

$75MIPOIPO

$40MStrategic & InstitutionalC

VentureB

SuperAngel (TechnoCap Matching)

$3MTechnoCap (initial VC)A

$500KAngelSeed

AmountDescriptionRound

$15M

$3M

$25MPre-IPOD

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Venture Capital Process

Typical investment cycle

$75MIPOIPO

$40MStrategic & InstitutionalC

VentureB

SuperAngel (TechnoCap Matching)

$3MTechnoCap (initial VC)A

$500KAngelSeed

AmountDescriptionRound

$15M

$3M

$25MPre-IPOD

TechnoCapTarget Participation

10%

25%

50%

100%

10%

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Case Study – webPLAN

Strategic

Venture

SuperAngel

TechnoCap

Angel

Description

C

B

A

Seed

Round

-

$5M

AmountInvestors

$3M Turnaround

$2M Fondateur de

$50M

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Case Study - YottaYotta

Strategic

Venture

SuperAngel

TechnoCap

Angel

Description

C

B

A

Seed

Round

$42MClennon, Sawyer and others

AmountInvestors

$3M Merger Seek Systems & Myrias

$25M

$4M Clennon, Ballantine, Lepage, Giguère

$40M

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Case Study - Hyperchip

Pre-IPO

Strategic

Venture

SuperAngel

TechnoCap

Angel

Description

D

C

B

A

Seed

Round

$250KPEP (140 angels)

AmountInvestors

$30M

$3M

$100M

$70M

$5M Ballantine

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TechnoCap Differentiators

• Canada: Quebec, Ontario & Western Canada

• Massively Parallel Technology

• Burn Rates 1/3 or lower

• Employees are significant cash investors in fund – no cherry picking

• Management fees of 2% - less than 1.5% per year is drawn down

• Next Generation VC with an “edge” & something to prove

World-Class Institutions

World-Class Startups

National Bank of Canada