Capital for BusinessSeed or angel capital

Venture Capital

Mezzanine or pre-IPO capital IPO-capital

Start up

lossesBreakeven Profit Big Profit

Start up Accelerated Growth Compelling Story Maturity

Capital for Facebook

Start up

Early/mid stage firm

Established stage

Matured and enduring stage

Mark Zuckerberg (28%) $0 -

Creator

Peter Thiel (2.5%) $500k @ $5 m valuation (2004) - early stage angel

Eduardo Saverin (4%) $tens of thousands –co founder

Digital Sky (5.4%) $200 m @ $10 b valuation (2009) bought more in 2011 – Venture Cap

Microsoft (1.6%) $240m @ $15.0 b valuation (2007) FB dropped in value 2007 to 2009 – Strategic partner & VC

Goldman Sachs (1%) $500m @ $50 b valuation (2011) - $1.5 b raised from investors – pre IPO stage

Retail investors (13%) $10 b @ $75 b valuation – 18 May 2012 – Post IPO stage

Accel Partners (10%) $12.7 m @ $85 m valuation (2005) – early stage VC

Bank Lending

(Low Risk Business Facilitations)

Entrepreneur Capital(High Risk Ventures)

Entrepreneur Capital= Seed + Venture + Pre and Post IPO Investors

Backdoor Listing (Reverse Takeover)

$3 million

Valuation

$12 million

Valuation

buys

Issue shares

Small listed shell Co.

Successful Private Business

$15 million

Valuation

Enlarged listed Co.

Investors($10 million)

Issue Shares $25 million valuati

on

Old Owners: A=3/25 (12%)New Owners: B=12/25 (48%)

New Investors: C=10/25 (40%)

A B C (Investors)

Charlie’s Reverse T/O of Spectrum

Global Assets under Management (US$ trillion)

7

Assets under management, 2008

* Around one-third of private wealth is incorporated in conventional investment managementSource: IFSL estimates