I would like to introduce now Mark Heesen. Who's the

the President of the National Venture Capital Association. Mark knows about financing innovation,
his members know about financing innovation. And our panelists know about financing
innovation.

There would be no innovation on a large scale, without the financing of innovation.

Almost everyone in this room has had a situation where they haven't had enough money or
they haven't had the money when they needed to do what they want to do to implement their
vision or their dreams..

And it's not always easy, it's a complicated process. People who finance innovation
are not always philanthropist's. There're doing their dreams as well. And it's a
delicate dance, but it's crucial and today I thought it would be useful for us to hear from some of the people who know the most about this
topic. So, I would like to introduce our session leader Mark Heesen.

SPEAKER 1
Good afternoon. It's good to see you all. We have a diverse panel today. I wanted to talk to you first about basically what I
represent. I represent 470 Venture Capital Firms located all across the United States who invest in companies all across the U.S.
and all across the world. It's interesting to note that this industry, the Venture Capital industry is only about 50 years old and yet
today we represent 1 out of every10 Americans who work in the private sector, that at one point or another was
venture backed. And in 2003, 11% of all revenues generated in the United States came from venture back
companies. So, when you thinking that there's only literally several thousand venture capitalists in the country. That is a
pretty profound impact on the country as a whole. And what we have done here in 50 years, many would say that can be
replicated in other parts of the world and we will talk a little bit about that today. But, first I want to basically have each of our
panelists self introduce themselves and talk a little bit about what they do. Because, as you will note we will be
looking at the Finance Innovation sector from different points of view. And Gail if you could start.

SPEAKER 2
I'm Gail Fitzpatrick. I'm the Managing Director with Ritchey Capital Finances, Technology and Life Science Finance unit.
And we are a newly formed arm of a newly formed finance company under the belly wick of Ritchie Capital Management, which is a multi
strat fund. My personal experience has been about 26 years in debt financing with GE Commercial Finance and their technology and life science
unit, Howler Financial, Sam Web Business Credit and Continental Illinois Bank. So, a largely secured debt. What our goal is to engage with
companies that have a strong technology, a wide area of application, good management and we assist those companies in growing by providing
a varied menu of products from per capital equipment financing to swing line capital equipment financing and revivers to
venture loans that help companies bridge to milestones that enable them to accomplish up rounds. So there's a lot of
different types of products that we can offer. We also separately have a venture arm that does pure equity investments.
And they have deployed about 300 million today.

SPEAKER 3
Good afternoon. My name is Cameron (inaudible).

I was born in Iran, came to America when I was 18, started as an engineer, moved to management, moved to
being an entrepreneur when I was 27. Started a software company, had a lot of success with it and started a chip company.
Our revenues grew over a billion dollars. Went and started a third company, a computer company, went bankrupt. Started
another chip company. That one the revenues got to about quarter billion. Started another software company, another chip
company and finally decided that I should move to the dark side and go on and become a venture capitalist. So, that's roughly
my background. A number of semi conductor companies, software companies. Some of them you might of heard of, CAE systems,
Cirrus Logic, Neomagic and (inaudible) communications. Of the 10 companies I started, I think half of them are still private small ones
the other 5 that have had results, one of them went bankrupt and I was fired. Four of them have had successful results
and 2 of them have brought my two investors over three and a half billion each.

SPEAKER 4
I am David Chow. I am co-founder of DCM Dull Capital Management and managing general partner. I do 470th of what
Mark was talking about. We manage about a billion plus dollars. We focus an early stage, we invest internationally, as well as domestically.
My personal background, very similar to Cameron. I was born outside the U.S., I was born in Japan and raised there. I'm ethically Chinese.
I was also co-founder of Japan's largest public mobile virtual operator, called JCI. I also came to the
dark side 10 years ago. And have invested in both in the U.S. and China and Japan. And we've had very successful outcomes
in all three regions so far.

SPEAKER 1
Great. Why don't I start with David with this question and work down. What is the difference if any in financing
companies today versus financing companies during that famous bubble period of 2000, 2001

SPEAKER 4
Sure:
I think it's three differences. One is the fact that the due diligence is much more thorough, as you would expect
because people have more time. Although, there's a little bit of a Web 20 bubble going on so
things are inching a little bit back towards the bubble, but not exactly. The second difference is that the quality
of the entrepreneurs and the teams are just much better today. Largely because during the bubble any Joe Schoe guy
on the street thought that they could start a company and be successful.
And I think the third is that there is a more international set of investments, and particularly for us, it's even more true
because that's part of our practice. There is no such thing as a great company just in Silicon Valley alone now.
Large component is international, whether it's India or China. And I think Venture Capitalist mission going forward
really is trying to find the best companies around the world and trying to best manage them at the same time. So those
are the three things I see that are hugely different from the bubble days. Cameron

SPEAKER 3
Well, I would like to share with a couple of the things about the bubble side. First of all if you look at the bubble days, we had
all of these things called internet companies. Once, I was giving a lecture in New York in front of a whole bunch of panelists
and I was asking them why do they call them internet company.

If for example somebody is in the business of selling pizza and they use bicycles to deliver pizza. Then they go and
buy motorcycles so they can deliver pizza, faster, better and improve their service. We don't call them a
motorcycle company, they are still a pizza company. There delivery method has changed. So, why is it if a pizza company
used internet to deliver their services, to advertise their services, to get the people to come and order it, we call them internet company?
They are still pizza company using a new technology. So, I was quite confused to a large degree, that I could not see many of these
great analysts were missing the simple point. So, a large percentage of bubble companies in reality have nothing to with internet,
have nothing to do with technology. As much as pizza company has contributed to the growth of BMW
or Yamaha motorcycles or (inaudible) or whatever. They probably contributed the same amount to the growth of internet
also.

Putting that aside so there were a lot of things associated with the hype, really had nothing to do with high technology.
What I have done as an entrepreneur or for the last 6 years, when I moved to Venture Capital.
We are basically at a simple philosophy go and look for great technology and a great group of people that are trying
to apply that technology to a to a huge emerging market or a huge existing market and replacing some existing
technology there. And they are going to just get profitable sooner or later the market will open up. Other people will recognize
that value. And if you follow that principle it always works, whether it is bubble time or non bubble time. You go and develop good
things, apply to the right technology, right market, good things will happen. So, substance is always appreciated sooner or later.

I totally agree with what David says, in terms of the effect of globalization.


Technology is being spread all over Silicon Valley does not hold all the keys to innovation if it ever did. And many of the
firms who used to brag about, they would only invest in seventeen miles of Silicon Valley have all started to
set up their China operation, their India operation or Israel operation and they are looking at different
things. A very simple fact that they exist there. When I was in high school in Iran, there was no chance for me to
compete with somebody who was going to high school in U.S. or if I was in university in Iran. There
was no chance for me to compete because all of my books, all of the material that we were using were at least 15, 20 years old.
Whatever happened at MIT or at Stanford would take 15, 20 years before it would make it to Iran, get translated.
Today because of the internet, because of the high speed communications, because of the fact that MIT has put in a leading way
all of their curriculum on the internet for free, somebody in Iran or in India, or in Israel or China, can just within minutes of the
newest innovation learn about it and have access to that content. So in a way, it has become a level playing field. And if you just
look around the rooms in here, definitely the innovation is happening on a global bases. And some of the greatest work
come from places that many people would not have expected thirty years ago, that there might be centers of
innovation. So, that trend is going on and on and on. As the name of our fund implies, a global capitalist partners, we
believe in that. We think it's the way to do business, it's definitely the way of the future. We have tried to participate in
by not just having our office in Silicon Valley. But have office in Beijing, office in Tokyo and work with entrepreneurs, and all
my partners come from different countries. I have an Indian partner, I have Chinese partner, I have Japanese partner, American partner
and Israeli partner. Name it, we are United Nation in action.

SPEAKER 2
I think from the financial communities perspective the dot.com have a couple of impacts. One is there is the greed factor and the

heard mentality. So, whi