The Changing Face of

Innovation Finance in Cleantech

Panelists:

Anup Jacob, Partner, Virgin Green Fund

J. Christopher Moran, Vice President, General Manager, Applied Ventures LLC

Kevin Genieser, Managing Director, Morgan Stanley

Todd Jaquez-Fissori, Managing Director, Hercules Technology Growth Capital

Tom Martin, Senior Vice President, PCG Asset Management, LLC

Moderator:

Stephan Dolezalek, Managing Director & Group Leader, CleanTech, VantagePoint Venture Partners

Financial Resources Corporate Strategic Partners

Sector-Focused Investment

Approach

• Proprietary Research and Sector Thesis

• McKinsey as Special Strategic Advisor

$4.5B of committed capital

>$1B dedicated to CleanTech

Sector-Focused Investment Strategy Deep Expertise and Experience

Thorough, expert-driven sector theses

Build the best company in each sector

Largest global (U.S., China & Europe)

team in CleanTech – 28 total

Technical, operating, investing experience

Portfolio of Transformative Companies

CleanTech at VantagePoint Venture Partners

Cleantech VC investing in 2009 (background data)

Drop in global cleantech VC investment in 2009

Note: “Deal” = investment round. In 2009, North America accounted for 64% of global cleantech VC investments, and 54% of all deals completed.

Increase in follow-on vs. early-stage deals during 2009

Note: “Early-stage” refers to angel/seed money or initial VC investment.

Average round sizes dropped from 2008 to 2009

Note: “Early-stage” refers to angel/seed money or initial VC investment.

Very small number of leading players in cleantech VC

Eight firms globally completed more than 10 deals (alphabetically):

Draper Fisher Jurvetson, Element Partners, Khosla Ventures, Kleiner Perkins Caufield & Byers, NGEN Partners, RockPort Capital Partners, SAIL

Venture Partners, VantagePoint Venture Partners

Note: “Deal” = investment round.

Top 90 cleantech investors drove investment in 2009

50%

12%

67%

Global Cleantech VC Investments in 2009

Note: “Deal” = investment round. “Top 90” defined by total number of deals completed during 2009.

Varying reactions from top firms to 2009 environment

Note: “Deal” = investment round. “Top Investors” based on number of investment rounds completed during 2007-2009.

Varying reactions from top firms (cont’d)

4 firms completed more rounds 4 firms completed fewer rounds 4 firms completed the same number

Note: “Deal” = investment round. These 12 firms are the “Top Investors” based on number of investment rounds completed during 2007-2009.

3/9/2010

Clean Technology Investment Banking

Leading advisor to clean tech companies in M&A transactions

Leading underwriter in clean tech equity and debt offerings

Multi-disciplinary team with experience in technology and power and utilities

Recent key transactions include

Other Clean Technology Focused Businesses

Environment, Social Finance and Community Reinvestment Group

$2 Billion Clean Technology Tax Equity Portfolio

Project Finance Expertise

Clean Energy / Carbon Solutions via Commodities Group

Principal Investment Group

Government Affairs Group

NGEN Venture Capital Partnership

Morgan Stanley is a global financial services firm and a market leader in securities, asset management and

credit services

Morgan Stanley has more than 61,000 employees in 1,200 offices in 37 countries

Our business lines include: Institutional Securities, Global Wealth Management and Asset Management

Unique

Global

Platform

Clean

Technology

ExpertiseUS$400MM Sale

US$75MM

Private PlacementUS$438MM IPO

US$340MM

Sale to MEMC

US$100MM

Private Placement

US$2.15Bn

Investment in AESUS$2.6Bn IPOFiled – In Process IPO Filed – In Process IPO

$350MM Acquisition of

EverPower Wind

Morgan Stanley Overview

14

INVESTOR PRESENTATION – Q1 2010

Hercules Technology Growth Capital (NASDAQ:HTGC)

14

• A specialty finance company with a national footprint

• We provide capital leverage to high growth equity backed companies in technology and life sciences

• We are a lifecycle financing partner taking companies from Series A all the way

through IPO and beyond

• Customized debt capital rounds-everything from growth capital, equipment

loans, AR financing, acquisition financing, cash flow financing, and public

company investments

• Business is built on three pillars of success:

• Commitment– we are committed to providing only the best service, products, and support to our

portfolio customers

• Cooperation– we provide access to an expansion network of other companies, potential customers,

and service providers to help you build your business

• Character– we have built a brand name as the largest and most successful non-bank debt provider in

the market- we are your dedicated capital provider

Hercules is the growth capital provider of choice for venture capital

and private equity-sponsored companies

with over $1.5 billion in closed commitments in over 150 companies

© 2010 PCG ASSET MANAGEMENT, LLC Confidential

PCG Asset Management

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3rd Floor

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Services and Solutions

Advisory Mandates

•Primary and secondary fund

investments

•Direct and co-investments

•Investments in GPs

•Portfolio restructuring, risk

management and other analytics

Investment Capabilities

Research and Transactional

•Global fund coverage, with co-investment

and direct investment expertise

Portfolio Management

•Portfolio construction, pacing, asset

allocation and portfolio rebalancing

Monitoring and Reporting

•Post investment portfolio monitoring and

analytics

Discretionary Mandates

•Primary and secondary fund

investments

•Direct and co-investments

Funds of Funds

•Primary and secondary fund

investments

•Direct and co-investments

Sector Focused Mandates:

$200 MM CalPERS Environmental Technology

Program

•Advisory role, focus on partnership investments

$100 MM Advanced Energy Technology

Initiative – National Oil Company

•Advisory role, focus on partnership investments

and direct investments

$600 MM PCG Clean Energy & Technology Fund

•Fund of funds vehicle, focus on partnership

investments and co-investments

Connecting world-class investors with innovative and customized solutions.

We have committed or advised upon the commitment of over $42 billion since the establishment of our private equity program in 1989.

The Changing Face of

Innovation Finance in Cleantech

Panelists:

Anup Jacob, Partner, Virgin Green Fund

J. Christopher Moran, Vice President, General Manager, Applied Ventures LLC

Kevin Genieser, Managing Director, Morgan Stanley

Todd Jaquez-Fissori, Managing Director, Hercules Technology Growth Capital

Tom Martin, Senior Vice President, PCG Asset Management, LLC

Moderator:

Stephan Dolezalek, Managing Director & Group Leader, CleanTech, VantagePoint Venture Partners