July 16, 2013 Dear Indiana Entrepreneurial Community Stakeholders: On behalf of Elevate Ventures, I would like to express our support of Governor Pence’s directive in serving as a fiduciary of the public interest. The Indiana Economic Development Corporation (“IEDC”) has been a highly-valued partner to our efforts. We look forward to the review and any subsequent recommendations. Elevate Ventures started conducting business in March 2011, as our former Governor Mitch Daniels took a progressive step towards catalyzing private sector participation in assisting and investing in high-potential Indiana companies. This was a natural evolution of the 21 Fund, which moved from a grant-giving entity to a provider of targeted resources to innovation-based startups. Several key lessons were learned in that process: ̶ ̶ ̶ Public dollars alone cannot fill the funding gaps in the Indiana entrepreneurial ecosystem. It takes entrepreneurial and business development expertise, not just capital, to translate innovative research into high-growth potential, commercial impact, and sustained job creation, hence the Entrepreneur-in-Residence model under Elevate Ventures. Investment of public dollars should be aligned with the private sector interest to ensure protection of public interest. Through Elevate Ventures, we now have a mechanism to hold equity on behalf of the IEDC and for the benefit of the State of Indiana and its taxpayers, thereby enabling the state to capture returns on the same private-sector terms, and reinvest in future ventures. With Elevate Ventures, we also have an independent and apolitical nonprofit to solicit operating and investment dollars from other public, private and philanthropic sources, further leveraging state dollars. To these aims, we believe it to be important to note the following: ̶ ̶ ̶ ̶ Elevate Ventures was a crucial element to the State’s ability to receive up to $34.3 million and set up investment and lending programs under the U.S. Department of the Treasury’s State Small Business Credit Initiative (“SSBCI”). Elevate Ventures has raised over $2.6 million in private dollars to support its activities in Indiana communities. For every public dollar invested in our portfolio of Indiana companies, the amount of private dollars has increased from $1.2 in 2009 to $5 in 2013. Since 2009, over $11 million 21 Fund dollars have been recaptured through collective recovery and restructuring efforts by the IEDC and Elevate Ventures. In summary, as referenced in the fact sheet enclosed herein, Indiana is now on the national map as the venture development model touted by other states including North Carolina and Wisconsin. In addition to these early results, I would like to communicate the following: ̶ ̶ Howard Bates was recruited by the state to help set up Elevate Ventures, because he is one of Indiana’s leading entrepreneurs. Elevate Ventures is governed by a Board of Directors comprised of key business and community leaders around the state.