January 2008 Mukul Singhal Emerging Opportunities In High Growth Areas 26 th January PAN IIT Mentoring Workshop

India Macro Trends Outsourcing boom continues * Source - Ministry of Commerce, GOI Sustained high GDP growth Passenger Vehicles White Goods Strong growth in consumption Teledensity 33% Vacations 30% Mortgage 29% 11% 8.3 % CAGR Increased foreign direct investment 3.2 5.5 15.7 0 2 4 6 8 10 12 14 16 18 2004-05 2005-06 2006-07 FDI ($ B) 120 %

Mobile VAS Mobile Penetration, Handset Prices, Tariffs, Usage Behavior Opportunities mCommerce – Mobile Banking, Ticketing, Travel & Holidays Advertising – SMS, WAP Payment Infrastructure Entertainment – Group Messaging, Games, Dating, Chatting SMS & IVR Based Data Services – Fleet Management, Sales Force, Alerts Challenges Payment infrastructure Revenue share between operator and content provider Low GPRS adoption

Mobile Penetration, Handset Prices, Tariffs, Usage Behavior

Opportunities

mCommerce – Mobile Banking, Ticketing, Travel & Holidays

Advertising – SMS, WAP

Payment Infrastructure

Entertainment – Group Messaging, Games, Dating, Chatting

SMS & IVR Based Data Services – Fleet Management, Sales Force, Alerts

Challenges

Payment infrastructure

Revenue share between operator and content provider

Low GPRS adoption

Internet Access, Convenience and Discovery Opportunities Information Services – Navigation, LBS, Travel & Holiday, Local Search Classified – Property, Auto eCommerce Online Financial Services – Comparative Shopping, Wealth Management Challenges Internet Penetration Differentiation Payment Infrastructure

Access, Convenience and Discovery

Opportunities

Information Services – Navigation, LBS, Travel & Holiday, Local Search

Classified – Property, Auto

eCommerce

Online Financial Services – Comparative Shopping, Wealth Management

Challenges

Internet Penetration

Differentiation

Payment Infrastructure

Software Products – Emerging Markets Scale and Centralization Price Performance Gap Opportunities Enterprise Automation – BFSI, Retail, Sales Force, CRM Micro Payments – P2P Transfer, Pre Paid Top Ups, Financial Inclusion Challenges Target the right segment Volume Sales Capabilities

Scale and Centralization

Price Performance Gap

Opportunities

Enterprise Automation – BFSI, Retail, Sales Force, CRM

Micro Payments – P2P Transfer, Pre Paid Top Ups,

Financial Inclusion

Challenges

Target the right segment

Volume

Sales Capabilities

Managed Services Outsourcing Still Lucrative! Opportunities KPO – Analytics, Market Research Direct to Consumers – Online Tutoring, Desktop Support, Personal Assistance Challenges Sales Capabilities Scale

Outsourcing Still Lucrative!

Opportunities

KPO – Analytics, Market Research

Direct to Consumers – Online Tutoring, Desktop Support, Personal Assistance

Challenges

Sales Capabilities

Scale

Entrepreneurial Feedback Source: Venturewoods 233 Votes

Venture Catalysts for Next-Generation Market Leaders Early and Mid Stage Venture Capital Firm Sector Focus - Technology and Healthcare Celebrating our 20th anniversary in 2007 $3 billion under management across 8 funds Current fund: Canaan VII - $450 million Developed over 250 venture companies 116 successful exits to date – 51 IPO’s and 65 M&A’s

Early and Mid Stage Venture Capital Firm

Sector Focus - Technology and Healthcare

Celebrating our 20th anniversary in 2007

$3 billion under management across 8 funds

Current fund: Canaan VII - $450 million

Developed over 250 venture companies

116 successful exits to date – 51 IPO’s and 65 M&A’s

Thank You www.canaan.com