The document discusses Element Ventures, a venture capital firm focused on clean technology investments. It has $250 million in assets under management and a proven track record in cleantech funds. The document also provides an overview of the growing cleantech market, which is valued at $150 billion globally and is driven by factors like resource constraints, environmental regulations, and technological advances. Cleantech includes industries like transportation, materials, energy, and water that work to optimize resource use and management through the resource lifecycle.

1. The CleanTech Market Opportunity Confidential

2. Element Ventures - Highlights $250+ million - capital under management Focused exclusively on CleanTech Institutional Limited Partner base Experienced General Partners with deep domain expertise Successfully managed $375 million in four prior CleanTech funds Advent Energy I, Advent Energy II, EnerTech I, EnerTech II Strong financial performance 72% gross IRR since 1995 in CleanTech 3.5x cash-on-cash return on realized investments Proven strategy Invest where resource constraints are economically important Focus on market-driven solutions with compelling value propositions Exceptional reach and world-class investment infrastructure Unique network for technical expertise and portfolio company support

3. What is CleanTech? CleanTech: Resource Management through Resource Lifecycle Variety of Resources: Affects most Industries: Sourcing & Delivery Management & Optimization Disposal & Reuse Resource Lifecycle Commodities Materials Chemicals Water Power Fuels Air Emissions Utilities Chemicals Electronics Agriculture Consumer Services Industrial Transportation Manufacturing

4. EnviroTech to CleanTech Regulatory Driven Decisions Compliance-based Purchasing Reactive (“end of pipe”) Chemical Science Traditional Engineering Slow Growth Markets “ Save the World ” Economic Decisions Productivity-based Purchasing Proactive (“clean fuels”) Material Science Collaborative Engineering Rapid Growth Markets “ Entrepreneurial” Mentality CleanTech (Late 1990’s – Today) EnviroTech (1980 – Early 1990’s)

5. CleanTech Market Overview CleanTech products & services account for $150 billion globally with 5 – 10 year growth rates projected at 35% 4 Sources: 1. http://hebe.statenet.com/leg/wp/snlegwhitepaper.pdf . 2. A typical eight inch silicon wafer requires 2,800 - 3,200 gallons of “high purity” water to manufacture. PPRC. 3. US Department of Commerce; Manufacturing in America, January 2004. 4. CleanTech Venture Network, CleanTech – Achieving Competitive Venture Returns” October, 2004. Transportation and Logistics Material Sourcing and Replacing Resource Optimization Material Handling Enabling Technologies Recovery and Recycling Environmental Compliance Manufacturing and Industrial Fuel Recovery Power Generation Energy Storage Energy Infrastructure Energy Efficiency Alternative Energy Advanced/Alternative Fuels Energy and Power Water Purification Water Filtration Desalinization Wastewater Treatment Water Management Air Quality Emissions abatement Air and Water

6. CleanTech Market Drivers Resource constraints Energy supply and demand imbalance Shortages of clean air, clean water, and clean power Aging power and water delivery infrastructure Global competition Increasing focus on resource efficiency and cost of production Corporate responsibility for product “lifecycle management” Tightening environmental regulation Acceleration of global concern and government mandates Public awareness and shareholder influence Technological advances Ability to apply advances in other fields to resource constraint problems Biotech, sensing, communications, IT, advanced materials, and power electronics

7. Historical Commodity Prices Source: FactSet Research Systems; Bloomberg.

8. Attractive Investment Opportunity CleanTech has emerged as a high-potential investment space Accelerating rate of new CleanTech business formation More seasoned entrepreneurial pool Leveraging technology advances across multiple fields Currently undercapitalized by institutional venture capital Reasonable valuations (but changing) Less competition (but changing) Poised for aggressive growth over the next decade Fueled by strong economic, regulatory, and technology drivers Improving capital markets More than $4 billion invested in upwards of 500 CleanTech venture deals since 2002 1 Over the last two decades the number of exits and the acquisition multiples have increased Source: 1. Vortex Energy LLC; “CleanTech Venture Investing: Patterns and Performance;” March 2005.

9. Environmental Tech vs. CleanTech Source: Vortex Energy LLC Environmental Technology CleanTech WAVE WAVE

10. Growing CleanTech Exit Opportunities M&A activity has increased at a 95% CAGR over the last four years IPO activity has increased at a 73% CAGR over the last four years Sources: Capital IQ, New Energy Finance. As of 12/31/2005.

11. Emerging: Number of Nanotech & Cleantech Co’s 2005 72 64 41 101 United States Europe Biopharma: 13 Biopharma: 1 Med Devices: 3 Comm: 4 Electronics: 8 Electronics: 10 Info Services: 1 Semi: 18 Semi: 1 Software: 4 Software: 4 Products: 1 Products: 1 Services: 1 Mat/Chem: 16 Mat/Chem: 8 Agriculture: 2 Energy: 3 Energy: 21 Other : 1 Other : 15 Nano Clean Tech Biopharma: 8 Biopharma: 4 Med Devices: 6 Comm: 1 Electronics: 4 Electronics: 7 Semi: 3 Semi: 1 Software: 1 Software: 1 Products: 8 Services: 2 Services: 6 Retail: 1 Mat/Chem: 14 Mat/Chem: 15 Agriculture: 1 Energy: 1 Energy: 24 Other : 1 Other : 33 Nano Clean Tech Source: Ernst & Young / Dow Jones VentureOne

12. Emerging: Cumulative Capital in Nanotech & Cleantech 2005 € 165 M $1182 M € 348 M $1173 M United States Europe Biopharma: $276 Biopharma: $78 Med Device: $18 Comm: $146 Electronics: $107 Electronics: $245 Info Services: $5 Semi: $320 Software: $87 Software: $86 Products: $20 Mat/Chem: $207 Mat/Chem: $105 Agriculture: $70 Energy: $8 Energy: $407 Other : $6 Other: $166 Nano Clean Tech Biopharma: € 47 Biopharma: € 9 Med Device: € 13 Electronics: € 16 Electronics: € 46 Semi: € 9 Semi: € 3 Software: € 0.1 Software: € 1 Products: € 11 Services: € 0.4 Services: € 23 Mat/Chem: € 79 Mat/Chem: € 42 Agriculture: € 1 Energy: € 0.1 Energy: € 135 Other : € 0.2 Other : € 80 Nano Clean Tech [$197 M] [$415 M] Source: Ernst & Young / Dow Jones VentureOne .

13. Generation Technology Costs, 1980–2004 Drivers: technology changes, fuel prices and interest rates