Presentation for Yorkshire UniversitiesProof of Commercial Concept FundLeeds, 5 March 2008

Andrew BurtonManaging Director

What is it?

• £5.0m, co-investment fund• For early-growth, technology-based companies• Yorkshire and The Humber region only• To be matched £ for £ by business angels• Four years into a ten year life• £1.4m more to invest (£1.1m in 2008/09)• Viking Club, co-investment angels

How does it work?

DTI£5.0m

repayable grant

Investee Company

10 to 30Members

Direct investment (£)Matchinginvestment (£)

Private AngelInvestors

Directinvestment (£)

Deal Flow

Viking territory!

First Round Investment

Target

£100,000

£200,000

£250,000Max. Equity raised in Round

VikingFund

Private

Funds

Maximum

£100,000

> £100,000

Investment All Rounds

VikingFund

Maximum£400,000 (fully

matched) in any one company (to prevent dilution)

Viking Fund

(£75k)

Private Funds (£75k)

What do we look for?

• Potential for 10x growth in value over 5 years

• Defensible IP, compelling proposition

• Management team – qualities/mix/experience

• Commitment – foregone, investment, effort

• Reference trials, user belief, customer need

• Sales prospects pipeline, tactical plan

• Tight cash management

• Development roadmap

The story so far ..

• Launched in June 2004• 275 applications• 36 investments, incl. 16 follow-on rounds• £2.6 m invested by Viking Fund• £3.4 m matching angel investment• 92% in equity, 8% in loans• One AIM float• Three at major VC fund raising• One investment (£25k) written off

Viking Fund Statistics

Av. Fund first round investment     £68k

Av. Fund second round investment   £70k

Attrition rate (no. failed vs. no. invested)   5%

Attrition rate (£ failed vs. £ invested)   2%

Av. equity stake, all rounds (%)     17.7%

Average pre-money valuation     £480k

Portfolio Sector Split

Other8%

IT/Digital46%

Bioscience, Medical, Nutrition

31%

Instrument Engineering

15%

Portfolio Location

South

Yorkshire

38%

North

Yorkshire

31%

West

Yorkshire

31%

East

Yorkshire

and the

Humber

0%

Scensive Technologies Ltd.

How does Viking add value?

• Syndicate leader for business angels• Equity has given comfort for loans and grants• Non-executive support, board governance• Fund establishes a discipline of reporting• Lead investor on most second rounds• Patient investor, continuity, exit strategies• Portfolio offers inter-company linkages• We like to build long-term relationships

Andrew BurtonManaging Director

Tracey SmithOperations Manager

01924 227237

Metic HouseRipley DriveNormanton

West YorkshireWF6 1QT

www.vikingfund.co.uk