We believe certain characteristics are critical for an emerging technology company to be viable over the long term. Therefore, when evaluating potential investment opportunities, priority is given to companies which meet the following criteria:

• Market: The business should be pursuing an emerging technology opportunity that has the potential to become at least a $1 billion industry.

• Pain: The business should address a significant and real problem today.

• Competition: The market should include a limited number of established or potential competitors.

• Disruption: The core technology should be innovative and approach the market from a new and unique perspective, perhaps changing the way business is currently conducted.

• Barriers to Entry: The business concept should be based upon a defensible technology or intellectual property.

• Leadership: The founding team should have deep relevant experience, have built a prior sustainable business and have shown that it can make significant progress organically, either on prior funding or sweat equity.

• Exit Strategy: The company must be moving towards and capable of an IPO and be able to achieve profitability independently.