Harbert Venture Partners

1. Harbert Venture Partners Florida State University - Post Doc Lunch Meeting May 15, 2012

2. Overview of HMC HMC is always a co-investor in its strategies, which focus solely on alternative investments across multiple asset classes; each asset class has a dedicated investment team that concentrates only on its strategy • We hold alternative assets in three areas of concentration • Real Estate • United States • European • Private Capital • Venture Capital • United States Private Equity • Australian Private Equity • Mezzanine Capital • Independent Power • Absolute Return • Credit Opportunities • Event Opportunities • Long/Short Equity • Harbert Management Corporation • One of the leading asset management firms in the Southeast • Approximately $3B in assets and committed capital, 11 asset classes • Legal, accounting, compliance, marketing and investor reporting functions • These operate in conjunction with, but independent of, HVP’s core team of investment professionals, allowing the venture professionals to focus solely on managing the HVP portfolios • HMC also provides investment support – putting our money where our investments are • HMC and affiliates committed $25 million in HVP III as of the initial closing

3. Harbert Venture Partners – Venture Capital Asset Class HVP targets companies with high growth potential at rational valuations • Identify promising early growth stage companies • Establish and track pre-investment milestones in an attempt to mitigate technology and market acceptance risk • Invest in companies at the market adoption phase in an attempt to mitigate risk and the time to achieve positive EBITDA performance • Average period from introduction to initial funding for HVP portfolio is over 16 months Early stage Growth stage Mature stage Value creation • Business formation • Technical risk • Product development risk • Pre-revenue • Product revenue • Customer traction • Management team build-out • Market adoption risk • Execution risk • Mature revenue growth • Growth through acquisitions Important notice: The Fund’s approach to a particular investment may vary depending on the nature of the investment, current market conditions or other factors. The Funds investment team has flexibility with regard to the Fund’s investments. The investment process listed above is presented as typical, but may not be applied consistently or in all cases.

4. Harbert Venture Partners – Venture Capital Asset Class • Venture capital fund focused on early growth stage investments in information technology and healthcare companies • Offices in Birmingham, AL; Richmond, VA; and Gainesville, FL • Investing from third fund, targeted at $100M • Second Close Approximately $77M • Hard Capped at $125M • Currently approximately $200M million in total venture funds under management • Investment focus in Southeast & mid-Atlantic • Active involvement in regional venture community, on boards of: • Florida Venture Forum • Florida Institute for the Commercialization of Public Research • SEBIO • Council for Entrepreneurial Development • Atlanta Venture Forum, State of Alabama Steering Committee for Technology • Birmingham Venture Club Important notice: The Fund’s approach to a particular investment may vary depending on the nature of the investment, current market conditions or other factors. The Funds investment team has flexibility with regard to the Fund’s investments. The investment process listed above is presented as typical, but may not be applied consistently or in all cases.

5. HVP Investment Strategy • Early Growth Stage • Reduces technical and product development risks and time to exit • Diversification • IT and Healthcare, “True” Pan-Regional Focus • Disciplined Pre-Money Valuations • Most Likely Exits are M&A Transactions below $150 million • Engaged Influential Investors • Trusted Advisor/Partner to Entrepreneurs

6. Reach and Visibility Early identification of opportunities often allows HVP to take lead or co-lead roles in innovative emerging companies • Relationship development • Entrepreneurs • Direct calling on early-stage companies • Tech transfer/incubators • Other regional and national VCs • Leadership positions • Regional venture associations • Incubators • Business development organizations Ivy Fund Co-Chair 2009 Sid Martin Incubator Chair 2010 Chair 2004-2006 Co-Chair ’08/’09; Chair 2011 • HVP Offices Entrepreneurial markets

7. What Can I Do With My PH.D Obvious • Research • University Environment • Corporate Environment • Teach Less Obvious • Work In Startup Environment • BioTech • BioPharma • Other Life Sciences • Become A University Entrepreneur • Develop projects to the point of commercialization, and transfer to business team. • Take a project out of the university and become an early stage CEO. At some point, come back. • Many universities have accelerators and/or incubators for commercializing university based innovations. • Develop consulting relationship around your core area of expertise and work with startups or industry. 1 Thompson Reuters/National Capital Association (“NVCA”) News Release: January 3, 2011. Venture-Backed Acquisitions Break All-Time Annual Record; Driven by Chinese Companies, Number of IPOs at Highest Quarterly Level Since 2000. 2 For additional reference, see “Dialing Down: Venture Capital Returns to Smaller Size Funds”, SVB Capital, May 2010; and “The Venture Capital Rebound”, Industry Ventures White Paper, September 2009. Important notice:There can be no guarantee that the Fund will successfully identify assets in which it can invest or achieve its investment objectives. The market characteristics listed above represent the opinions of the investment team, and are not necessarily representative of actual market conditions.

8. University Startup Data According to The Information Technology & Innovation Foundation (ITIF): “Universities conduct the majority of basic research in the United States—56 percent in 2011. Companies spun out of research universities have a far greater success rate than other companies, creating good jobs and spurring economic activity.” In a comprehensive TSC report of 100 university-research based companies, 21 have gone public and another 10 have been acquired. (The Science Coalition, Sparking Economic Growth, April 2010) Between 1991 and 2009, patent applications filed by universities increased from 14 per institution to 68 per institution; licensing income increased from $1.9 million per institution to $13 million per institution; and new start-ups formed as a result of university research increased from 212 in 1994 to 685 in 2009. Since the passage of the Bayh-Dole Act in 1980, more than 5000 companies have been formed from university research projects.1 This legislation, which allows universities to retain ownership and commercialize inventions generated from federally-funded research, has revolutionized university entrepreneurship.

9. University Startup Data Startups per Year per University and NASDAQ

10. Well Known University Startups • Google • Yahoo • Facebook • Bose • Gatorade • Novamin • Remicade

11. Why Should I Think Like an Entrepreneur • Technology-Based Economic Development is Luring Researchers To Businsess • Florida Growth Fund: $500M Fund Managed By Hamilton Lane • Florida Opportunity Fund: $300M Fund Managed By Milcom & Credit Suisse • States See University Innovation as a Deep Reservoir for the Creation of New Jobs and Capital Investment • Many Seasoned Entrepreneurs and CEOs are Seeking University Partnerships • Most Major Research Universities Now Have Entrepreneurs in Residence and Business Development VPs

12. Is Entrepreneurship Really the Dark Side? • Never Before Have University Researchers Had More Opportunities to Build Companies • Commercialization Scholars • Tenure Track with Commercialization Avenue • Really Change the World • If a Great Technology is Developed, but No One Could Use It, Is It Truly a Great Technology? • Commercialization is The Life Blood Of Innovation • Scholar – Research Scientist – CEO • No Longer a Far Fetched Career Path