EnerTech Newsletter_September, 2014

ENERTECH QUARTERLY VOL 2 • September, 2014

“Thought Leadership in Energy Technology”

EnerTech Capital

EnerTech Update

Wally Hunter

We are pleased to bring you our second edition of EnerTech Quarterly. EnerTech has been extremely busy over the past quarter both managing the existing portfolio and closing several new deals in EnerTech IV. The major investment highlights since the beginning of Q2 2014 include:

Managing Director

EnerTech IV

 The closing of four new investments in the portfolio

  

with a total of $15 million USD invested into Regen Energy, EnergySavvy, Markwater Handling Systems and GeoDigital International (summaries on these companies on pages 3 through 6).

Issuance of three new termsheets.

Follow-on investment in N-Dimension.

Hiring of new CEOs in two ECP IV companies GeoDigital and Regen. CEO search for N-Dimension is also in progress.

EnerTech Capital EnerTech III

 Follow-on investment of $1.8 million in EnerTech III 

company FilterBoxx.

Hiring of new CEO for Enbala Power Networks.

Events

 Our Annual Advisory Board Meeting was held in San 

A total of 8 investments have now been made out of EnerTech IV, with aggregate dollar investment now at $30  million. We have also received over 500 business plans since the beginning of the year.

Francisco with all of our portfolio companies, board members and strategic partners in attendance (page 10).

Canadian Venture Capital Association Conference in Ottawa chaired by Wally Hunter (page 12) Upcoming 2014 EnerTech Forum and Annual Meeting – December 2-4th in Scottsdale, Arizona - Click here if you are interested in attending this year.

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ENERTECH QUARTERLY Investment Strategy: As we deploy capital in ECP IV, we continue to maintain our balanced investment approach seeking innovative energy technologies “from the well head to the wall socket”. As you will see below, our investment allocation across this broad landscape provides sound investment diversification within the energy space.

CURRENT ECP IV PORTFOLIO

Strategic Partners:

Advanced Emissions Solutions is a leader in clean coal technology and associated specialty chemicals, serving the We executed two new strategic partnership agreements coal-fueled power plant industry. Their proprietary recently: environmental technologies and specialty chemicals enable power plants to enhance existing air pollution control equipment, minimize mercury, CO2 and other emissions, maximize capacity, and improve operating efficiency, to meet the challenges of existing and pending emission control regulations.

Devon Energy - A strategic partnership was entered into between EnerTech and Devon to share new technology Our strategic partners (GDF Suez, Newalta, Hatch & Waste opportunities in heavy oil extraction including; Well Management) have all been actively working with many of Productivity, Reserve Recovery, Water, Netback, and Safety our portfolio companies and in some cases have helped the and Environmental applications (more details on page 9). portfolio company gain significant additional market traction as customers.

Advanced Emission Solutions (NASDAQ:ADES) - A new strategic partnership has been signed between EnerTech and Advanced Emission Solutions to share new technology opportunities in the energy space.

The partnership also provides our firm great access to strong expertise in the emissions control sector.

We also have a long standing partnership with Hydro Quebec (IREQ) which provides great insight into new and innovative grid and “Internet of Things” opportunities in the grid.

We look forward to more investment announcements in our next newsletter and continued positive news on the portfolio of existing investments. We are looking forward to seeing many of you at the EnerTech Forum and Annual Meeting in early December 2014.

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ENERTECH QUARTERLY Profile of new ECP IV Investments - Energy Efficiency

Typical Behavior

REGEN Swarm Energy Management

REGEN Energy provides demand management, demand response, and load scheduling solutions to small-to-mid size commercial and light industrial customers for electrical HVAC and discretionary loads.

The company’s wireless energy management system controllers, embedded with their patented “Swarm Logic” software help customers simplify energy efficiency and demand response, manage electrical demand for building equipment, and reduce costs.

Regen’s wireless automated demand management and demand response controllers can be easily installed onto any electrical heating, cooling or discretionary electrical load. Once installed, the controllers work together like a swarm of bees, intelligently communicating and managing the duty cycles of the loads being controlled. Utilizing patented swarm-based intelligence, the controllers dramatically reduce peak electrical demand by up to 25% in commercial and light industrial properties and allow for effective scheduling of overnight and weekend loads.

REGEN Demand Response Mode

Market Regen’s Swarm Energy Management™ controllers can effectively manage the peak electrical demand for a wide span of building equipment across a variety of facility types.

The company identifies their beachhead opportunity as the small-to-mid size commercial and light industrial market (also known as the middle market in utility terms), which is chronically underserved and currently has limited insight into or control over energy usage and spend.

The company estimates the total HVAC market opportunity to be $5 billion+.

EnerTech Investment EnerTech invested in REGEN Energy in August, 2014. It joined EDC, Duke Energy, NGEN and BDC in the latest round of financing.

By the end of 2014 the company is targeting to have an installed base of 12,000 controllers at 600 facilities managing 170 Funds Raised megawatts (MW) of load. While they have primarily targeted Executive Chairman the HVAC and building equipment market to date, the Swarm technology has applications to any discretionary load, including EnerTech Board Observer electric vehicle chargers, water pumps and commercial lighting systems.

Website

US $20.5 million Robert M. Chiste Dean Sciorillo www.regenenergy.com 3

ENERTECH QUARTERLY Profile of new ECP IV Investments - Energy Efficiency

The EnergySavvy Optix Evaluate Module - quantifies results for every project in every program immediately and continuously

EnergySavvy develops software for managing utility energy efficiency and demand side management (DSM) programs. The Company’s flagship product, Optix, is a DSM system that brings utilities, their customers and trade allies onto a common platform. Optix reduces program complexity and brings all stakeholders together onto a shared platform. Dedicated to making energy efficiency more controllable and transparent, EnergySavvy’s platform unlocks value by creating modern customer experiences and delivering predictability to a traditionally opaque industry. Customers use EnergySavvy to reach onethird of American homes and businesses in more than 20 states. The company’s existing customers include National Grid, the Tennessee Valley Authority, Arizona Public Service Company, NYSERDA, NSTAR, CPS Energy and other utilities and energy efficiency programs across the United States.

to energy efficiency (EE), demand response and customer engagement programs in 2013.

Market

“We believe we are at a point now where energy efficiency and customer engagement are critically important for utilities as they plan for the future,” said Dean Sciorillo, Director at EnerTech Capital. “The team at EnergySavvy is enabling utilities to connect with and engage customers to make meaningful and appropriate energy improvements that result in successful programs that build lasting, trusted relationships.”

Since the early 2000s electric utilities have been pushed by regulators to focus further on energy efficiency programs for their customers in order to offset increasing consumption. This pressure is due to several factors including environmental issues and system reliability purposes. As a result, more than 25 U.S. states have enacted long-term energy efficiency resource standards (these states account for over 61% of total U.S. electricity consumption). Similarly, the European Union adopted an Energy Efficiency Directive in order to ensure the achievement of its commitment to reduce emissions by 20% by 2020. Utilities in the United States committed $11 billion

EnerTech Investment EnerTech participated in an $8.3 million Series C round in June, 2014. EnerTech and El Dorado Investment Company, joined the funding round with Prelude Ventures and Pivotal Investments.

EnerTech Capital is excited about its newest investment.

“Our investment in EnergySavvy fits directly in our investment strategy around emerging software opportunities in the Utility sector. Given our significant domain knowledge and roots out of the utility sector, we believe that as a firm we can add significant value as EnergySavvy executes on its business plan. ” said Wally Hunter, Managing Director at EnerTech Capital.

Funds Raised

US $8.3 million

CEO

Aaron Goldfeder

EnerTech Board Member Dean Sciorillo Website

www.energysavvy.com 4

ENERTECH QUARTERLY Profile of new ECP IV Investments - Power Technology

GeoDigital International (GDI) is the leading provider of “engineering and professional grade” 3D geospatial data and software services to the Utility, Infrastructure, Engineering, and Transportation industries. Currently, GDI is the leading provider of transmission vegetation clearance data in North America via its LiDAR acquisition and software technology. In addition, GDI has begun developing methods of acquiring LiDAR data from street-level and wide-area airborne sensors concurrent with funded imagery acquisition projects undertaken for groups such as Google and an automotive OEM partner. This enables GeoDigital to build up an urban database of LiDAR and Imagery that has multiple uses and numerous opportunities for value added re-sale of business intelligence products.

governments, and other organizations to use location-based information, is a $70 billion+ market in North America. The U.S. Survey & Mapping market (estimated at $6.7 billion) has been a central focus for the company to date. GDI has been focused on the Utility industry primarily, but has begun expanding into other industries including Autonomous Driving and Urban 3D Engineering. Other future industries include O&G pipelines.

GDI’s proprietary technology, expertise in geospatial data acquisition and management, and strong focus on customer service are key elements of their value proposition. GDI’s service provides compliance with NERC regulations, asset mapping and inspection, engineering analysis and thermal ratings, evaluation of new line construction, vegetative clearance risk identification, as well as pole audits and inspections. GDI is able to lower a utility’s maintenance costs, while helping to increase system reliability, and enables faster and better informed decision making. The Company estimates LiDAR mapping reduces cost and time for analysis by 50-75% over conventional engineering surveys for utility T&D lines, and its WorkStudio SW package, combined with LiDAR derived business intelligence, can reduce utility maintenance and vegetation management costs by 30-40%.

“Our investment in GeoDigital was driven by the growing focus of utilities and other infrastructure owners on increasing operational efficiency and regulatory compliance as well as with the growing acceptance of geospatial mapping solutions to meet these challenges. GeoDigital is a market leader in providing these services and software solutions, and we expect GDI to help drive significant global growth. Our investment in GeoDigital also demonstrates our continued focus on investments in high-quality companies across Canada.” - Scott Ungerer, Founder and

EnerTech Investment EnerTech Capital led a $29 million round of financing in June, 2014. GDI will use the capital to fund the company’s product extensions and for continued expansion in the United States, Canada and international markets.

Managing Director of EnerTech Capital Funds Raised

US $28.9 million

CEO

Abe Morris (co-CEO) Alastair Jenkins (co-CEO)

Market EnerTech Board Member

The geospatial services industry, which provides the tools, technologies, and services for consumers, businesses, Website

Scott Ungerer www.geodigital.com 5

ENERTECH QUARTERLY Profile of new ECP IV Investments - Oil & Gas Technology

“The Markwater technology is an elegant solution that is extremely scalable and which has significant market potential in key Oil & Gas Markets in North America“ - Eric Schmadtke, EnerTech Capital Markwater is a proprietary drilling technology products company focused on increasing the safety and efficiency, reducing the cost and lowering the environmental impact of horizontal drilling. The company seeks to capitalize on the immense opportunity presented by the rapidly expanding horizontal drilling market by building out a platform of specialized and proprietary rig products through organic growth and strategic acquisitions.

Markwater’s proprietary drilling fluid recovery systems (FP Marangoni business unit) separate oil-based mud (OBM) from drill cuttings at the drill site resulting in substantial cost savings - operators recover up to $6 thousand worth of OBM per day and reduce environmental and transportation costs while significantly reducing the environmental impact of operations. At over $1,000/cubic meter, OBM is a valuable commodity (five times more expensive than water-based mud) and with technologies like Markwater’s, drilling companies can profitably recover what was previously viewed as a costly waste stream.

OBMs are increasingly deployed in unconventional drilling operations due to unique performance advantages over water-based muds and other drilling fluids. The market for OBM recovery products and services is conservatively estimated at $1 billion globally, with significant upside potential.

EnerTech Investment EnerTech invested in Markwater in May, 2014, joining coinvestors 32 Degrees and EDC as equity investors in the company.

“We believe the macro area of Drilling fluid Management represents a high growth investment opportunity for us.

Markwater is also complementary with other companies in our portfolio that are focused on processed water and horizontal drilling in the Oil & Gas sector. The significant economic payback of Markwater’s technology will provide strong returns to both the drillers and Markwater shareholders. “ - Wally Hunter, Managing Director, EnerTech Capital

Market The market for horizontal and directional drilling in North America and internationally continues to expand with an increasing focus on cost, efficiency, and the environment.

The Solids Control and Waste Management market is one of the fastest growing in North America and has more than doubled since 2005, growing at a compound annual growth rate of 12%.

Funds Raised

$27 million

CEO

Robert Russell

EnerTech Board Member

Wally Hunter

Website

www.westoil.ca

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ENERTECH QUARTERLY ECP IV Portfolio Company News

Distech Controls, a provider of building automation, control and energy management solutions for commercial, institutional, and government portfolios, integrating HVAC, Lighting, Access Control and CCTV, recently announced the launch of two new mobile apps: myDC Control and Smart-Sense Room Control. These offerings increase productivity for system integrators and control technicians, provide value for building managers, and ensure personalized comfort for occupants.

Distech was recently named the Bronze Laureate, SME Exporter category, at the 20th edition of National Bank’s SME Awards. These awards recognize the drive and know-how of business leaders who truly stand out from their peers, and have contributed to Quebec's growth and prosperity. Distech also recently announced that the company’s Smart Room Control solution has been selected

by BUILDINGS Magazine as a 2014 Money-Saving Product winner. This annual competition highlights budget-friendly offerings that make life easier for facilities managers.

Space-Time Insight (STI) is a market-leading provider of situational intelligence solutions, empowering companies in asset-intensive industries to make faster, more-informed decisions.

STI recently introduced SI Suite 5.0, a major new version of its breakthrough real-time visual analytics software. SI Suite 5.0 excels at helping organizations gain actionable insight into massive volumes of data by combining a highly configurable and intuitive end-user interface with advanced analytics based on open standards. In June, STI also announced that the Sacramento Municipal Utility District (SMUD) won the 2014 Ovum “On the Radar” award for Big Data and Analytics for their Situational Awareness and Visual Intelligence (SAVI) initiative. Ovum’s “On the Radar” awards recognize technology innovation, highlighting the innovative ideas, products, or business models that enable end-user organizations to create real value in their businesses. The data visualization and analysis used in the SAVI system were provided by Space-Time Insight.

N-Dimension Solutions, which protects critical infrastructure assets from costly cyber-attacks, was a finalist in the 2014 TechConnex Technology Leadership Awards in the Momentum Company of the Year category.

This award recognizes an organization that has demonstrated excellence in innovation and a commitment to the knowledge-based sector in the Greater Toronto Area while consistently reaching new customers, increasing revenues, adding employees, encouraging community involvement and embracing sound business fundamentals. N -Dimension was also recognized as a 2014 Company to Watch by Smart Grid News.

GeoDigital International (GDI) is the leading provider of “engineering and professional grade” 3D geospatial data and software services to the Utility, Infrastructure, Engineering, and Transportation industries.

Recently GDI’s Precision Corridor Management (PCM) solution was endorsed by Robert Novembri, former NERC Senior Investigator and utility vegetation management expert. In July, GDI announced that Xcel Energy (NYSE: XEL) has chosen to implement its WorkStudio work management system for Vegetation Management and Pole Maintenance.

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ENERTECH QUARTERLY Company Snapshots from Previous EnerTech Funds ECP III

CalStar Products is a leader in the development of affordable and sustainable building products. CalStar has begun delivering sustainable brick and masonry units from a newly developed, state-of-the-art 100,000-sq.-ft., Columbus, MS, operation - an ambitious satellite to its Racine, WI, flagship plant, which opened in 2010. This second plant is strategically located to serve the country’s largest masonry market. Located in east-central Mississippi, near the Alabama border, “Columbus provides easy access to the entire Gulf Coast region, from Texas to the Florida panhandle, enabling us to meet demand within a smaller delivery radius—and therefore in less time and with reduced freight costs,” says CalStar Vice President of Manufacturing Michael Telischak. “With capabilities to reduce buildings’ carbon footprint and costs, CalStar Products is changing the way architects look at the façade,” adds CEO Joel Rood. “The additional capacity, new products, and geographic advantages made possible by our Columbus location set the stage for continued expansion.”

FilterBoxx Water & Environmental provides Water Treatment Solutions for industrial, municipal, resort and aboriginal clients employing proprietary processes and technologies. In June, FilterBoxx closed a $14.7 million dollar private equity raise led by a family office out of Switzerland with participation from current investors EnerTech Capital and XPV Corporation. This financing represents the largest private equity raise for the company.

Larry Novachis, the company’s CEO, stated “with this additional capital and the rapidly growing water and wastewater treatment industry, FilterBoxx is uniquely positioned to expand into new and emerging markets and continue to be the leading solution-provider in Alberta. The company is ready to take things to the next level”.

Enbala Power Networks operates a real-time, demand management platform (called GOFlex™) that offers a way to connect electricity users to the grid to perform non-disruptive demand response by intelligently aggregating the inherent flexibility in how they consume power. In May, Enbala became a founding Member of the Microgrid Alliance (MGA), which is helping to advance the growth and development of microgrids. The MGA was formed in February 2014 with the aim of creating a collaborative group of industry experts to advocate for the expansion of microgrids. Recently Enbala also joined GTM Research’s Grid Edge Council, an exclusive group of decision-makers driving the future of the electric grid.

The NanoSteel Company is a leader in nanostructured steel materials design, bringing unprecedented performance to the world's most trusted material. NanoSteel was recently named the ‘Most Innovative Company’ by Providence Business News.

The company was recognized for achieving a significant breakthrough in the development of automotive sheet steel with its exceptional strength and ductility. Nanosteel also recently closed a licensing deal with Lincoln Electric for a steel coating technology used in weld overlays and thermal spray applications. This further establishes the company’s positioning as a top designer and developer of nanostructured steel alloys across multiple industries

ECP II

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ENERTECH QUARTERLY Strategic Partner Profile

Devon’s Jackfish Project near Conklin, Alberta

EnerTech Capital entered into a strategic partnership with At peak production, Devon’s three 100 percent-owned Devon Canada in May, 2014.

Jackfish projects are expected to produce 105,000 barrels per day before royalties and have the potential to generate Under the terms of the partnership, EnerTech brings in excess of $1 billion of free cash flow annually. technological opportunities to Devon for potential piloting and commercial application.

Technology Development Focus Devon’s technology development strategy revolves around Bryan Helfenbaum, Manager, Technology Development at Grand Challenges in Heavy Oil extraction and addressing Devon who helped source the partnership sees tremendous Canada’s Oil Sands Innovation Alliance (COSIA) objectives opportunity in leveraging the deal to gain a competitive of improved environmental performance in Canada’s Oil advantage in a tight marketplace.

Sands: “EnerTech may review up to 1,000 ideas a year, but might only Devon’s Grand Challenges invest in a dozen, so they have a lot of exposure to what is out Well Productivity: Improve production throughout the there. This high volume of idea flow is what excites us,” he said. well life cycle & minimize Steam Oil Ratio Reserve Recovery: Maximize recovery of the resource EnerTech’s Managing Director, Wally Hunter, thinks these CPF & Water Operations: Reduce water intensity & kinds of partnerships with industry are win-win. “Devon is a increase steam capacity great partner for EnerTech with its focus on and openness to the Netback: Create additional cash flow by maximizing integration of new technologies into their heavy oil business,” said product value and decreasing operating costs Hunter.

Safety & Environment: Improve safety metrics; maintain social license to operate and access to land “Devon gets to be on the ground floor of evaluating and Game-Changer: Revolutionize the techniques of resource potentially piloting new technologies, and entrepreneurs extraction and/or water management have access to a real-world sandbox to trial their innovations. Together we will collaborate, share knowledge COSIA Goals and explore new commercialization strategies.”

COSIA is an alliance of oil sands producers (currently 14) focused on accelerating the pace of improvement in About Devon Canada environmental performance in Canada’s oil sands through Devon Canada Corporation is the Canadian operating collaborative action and innovation. Devon is an active division of Oklahoma-based Devon Energy Corporation, a participant in the three COSIA Environmental Priority Areas leading independent energy company. Devon’s Canadian (EPAs) listed below: head office is located in Calgary, Alberta with development and production focused on world-class heavy oil properties  Water in northeastern Alberta. The company’s portfolio provides  Land stable, environmentally responsible production and a strong  Greenhouse Gases platform for future growth to build shareholder value.

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ENERTECH QUARTERLY

2014 EnerTech Advisory Board Meeting - San Francisco, CA The EnerTech Advisory Board Meeting was held in San Francisco, CA in May of this year. The day prior to the meeting, the EnerTech team had an internal strategy session followed by dinner in Montara.

Top Right: Gian Vergnetti (EnerTech),Dean Sciorillo (EnerTech), Scott Ungerer, (EnerTech), Bottom Right: Jarett Carson (EnerTech), Bobby Hobbs (Hobbs & Towne) , Wally Hunter (EnerTech), Anne-Marie Bourgeois (EnerTech), Bill Madia (Stanford University)

Bottom: Etienne Veilleux (Distech Controls), Rob Schilling (Space-Time Insight), Larry Novachis (FilterBoxx), Anne-Marie Bourgeois (EnerTech), George Pataki (former Governor of New York) 10

ENERTECH QUARTERLY 2014 EnerTech Advisory Board Meeting - San Francisco, CA The Advisory Board Meeting was followed by Wine Tasting at the Caymus Winery in the Napa Valley and dinner at Tra Vigne.

Top Right: Scott Magrane (Coady), David Hunt (UBS), Andy Towne (Hobbs & Towne), Bottom Right: Jamie Shanks (Sales for Life), Took Whitely (Newalta), Joe Vaillancourt (Waste Management)

Left: Donna Smith and Lyndsy MacArthur (EnerTech), Right: Took Whiteley (Newalta), Santiago Faucher (Hatch), Angelica Mengana (EnerTech), Raoul Arvengas (GDF Suez) 11

ENERTECH QUARTERLY 2014 CVCA Conference - Ottawa, ON EnerTech’s Wally Hunter was Chairman of the 2014 CVCA Annual Conference, raising a record amount of sponsorship this year.

The theme for the “Positioned to Succeed” CVCA Conference was Hockey and the EnerTech team was there to meet NHL greats: Darryl Sittler and Mike Babcock!

Top Left: Wally Hunter (EnerTech), Top Right: Wally Hunter, Mike Babcock (Red Wings coach and head coach for Canada’s Olympic Hockey team), Darryl Sittler (HHOF). Middle Left: Dean Sciorillo (EnerTech), Darryl Sittler, Eric Schmadtke (EnerTech), Lyndsy MacArthur(EnerTech), Angelica Mengana (EnerTech), Wally Hunter (EnerTech), Anne-Marie Bourgeois (EnerTech), Mike Babcock

Bottom Left: Wally Hunter, Brenda Slauko (BDC) Bottom Right: Eileen Green (Hub), Tom Clark (CTV News) 12

ENERTECH QUARTERLY Venture Capital Update - Canada Investment activity in Canada’s venture capital market showed continued growth in the second quarter of 2014.

VC funds deployed a total of $505 million to deals across the country in this period, or 11% more than the $455 million invested at the same time in 2013.

Disbursement levels in Q2 2014 were also up 31% from the $385 million that was invested in the first quarter of this year.

Source: (Thomson Reuters, CVCA)

Select Canadian VC Investments from Q2 2014 Company Name

Description

Major Investors

Investment Amount (Cdn)

Anti-laundering and fraud detection software

Spectrum Equity

$60 million

Workforce analytics

Adams Street Partners, Foundation Capital, Summit Partners

$27.8 million

Packaged potable water and wastewater treatment systems

EnerTech, XPV, Swiss family office

$14.7 million

Integration technology to improve softAustin Venture, ware productivity Yaletown Venture Partners

$11 million

Select transactions since Q2 2014 Company Name

Investment Amount (Cdn)

Description

Major Investors

Provides engineering and professional grade� 3D geospatial data and software services

EnerTech, Emerald Technology Ventures, North Sky, NGP ETP

$29 million

Manufacturer of quantum computers with systems that have a much lower carbon footprint

BDC, Fidelity Canada Fund, Goldman Sachs

$28 million

Drilling fluids management

EnerTech Capital, 32 Degrees, EDC

$27 million

Developer of a mobile app for booking bus travel

Revolution Ventures, OMERS Ventures

$9 million

Developer of measurement technologies for smart grid to address energyenvironment challenges

3M New Ventures

$6 million

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ENERTECH QUARTERLY Initial Public Offerings - Canada The Canadian IPO market was strong in the first half of 2014.

In total, nine IPOs raised more than $2.3 billion over the PrairieSky Royalty Ltd. raised $1.5 billion in May, the largest first six months of 2014 on all Canadian exchanges. In single placement since the $1.3 billion Athabasca Oil raised comparison, 17 IPOs raised $1.3 billion over the same time in 2010. period in 2013. Highlights from the first half of 2014 include:*

Lumenpulse raised $115 million on the Toronto Stock Exchange in April (about 53% more than it had targeted).

Journey Energy Inc., an Oil & Gas exploration, development and production company, raised $198 million in June,.

* Source: PwC

Venture-Backed Exits - Canada According to CB Insights, as of June, 2014, the number of Venture-backed startups have seen 55 exits, with 52 M&A deals and 3 IPOs in 2014.

Select M&A Transactions Target Company

Transaction Summary

Date

Major VC Investors

Good Technology acquired certain assets of Toronto based Fixmo Inc., a mobile device management solutions for mobile security and risk management.

June 03, 2014

Rho Capital Partners, Extreme Venture Partners, iNovia

GE acquired Vancouver based Wurldtech Security Technologies Inc., a provider of cyber security solutions.

May 9, 2014

Vanedge Capital Partners

D&B acquired Vancouver based Indicee, a provider of cloud-based analytics and business intelligence (BI) solutions.

April 30, 2014

Granite Ventures, Yaletown Venture Partners

Sierra Wireless closed its acquisition of In Motion Technology Inc., a provider of mobile enterprise solutions, for US $21 million in cash.

March 4, 2014

BC Discovery Fund (BCDF), BC Advantage Funds 14

ENERTECH QUARTERLY Venture Capital Update - United States US VCs invested $13.0 billion in 1,114 deals in the second quarter of 2014, an increase of 34 % in terms of dollars and 13 % in terms of the number of deals, compared to the first quarter when $9.7 billion was invested in 985 deals.

Q2 were led by Uber, a provider of Integrated, mobilebased car booking and payment system, which raised $1.2 billion, the largest quarterly deal reported by the MoneyTree Report since it began reporting on venture capital investing in 1995.

VC investments for the first half of 2014 reached $22.7 billion, the highest first half total since 2001. Investments in Source: Thomson Reuters, NVCA

Select US VC Investments from Q2 2014 Company Name

Description

Investment Amount (USD)

Major Investors

Integrated, mobile-based car booking and Fidelity Investments, Welpayment system lington Management, BlackRock

$1.2 billion

On-demand ride services

Alibaba, Andreessen Horowitz, Founders Fund, Mayfield Fund

$250 million

Flash enterprise storage array

Greylock Partners, Index Ventures, Redpoint Ventures, Sutter Hill

$225 million

Home solar power installation, financing and leasing

Undisclosed

$150 million

Provider of non-hazardous liquid waste removal needs

ABS Capital Partners

$32 million

Developer of ultracapacitor technology for the military, transportation and alternative energy markets

IFC, The Westly Group

$21 million

Develops software for managing utility and state energy efficiency and demand side management (DSM) programs

EnerTech Capital, ElDorado Investment, Prelude Ventures, Pivotal Investments

$8.3 million

Select transactions since Q2 2014 Company Name

Description

Major Investors

Provider of lighting control systems for energy management applications

Draper Nexus, RockPort, KPCB, Intel, DFJ

Provider of services to up- Artiman, IDG, High Country cycle waste nutrient material into agricultural goods

Investment Amount (USD) $20 million

$13 million

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ENERTECH QUARTERLY Initial Public Offerings - US Twenty-eight venture-backed initial public offerings (IPOs) raised $4.9 billion during the second quarter of 2014, a 45 % increase, by dollars raised, compared to the previous quarter (Thomson Reuters, NVCA).

Select transactions from Q2 2014 and Q3 include*:

energy projects, raised $406 million by offering 16.3 million shares at $25, at the high end of the upwardly revised range of $23 to $25. Visit Nasdaq.com or click here for further details.

July 24, 2014 - Advanced Drainage Systems, the world's largest provider of high density plastic pipe used in construction, raised $232 million by offering 14.5 million shares (64% insider) at $16, below the $17-$19 range. Visit June 25, 2014 - TCP Lighting, Switzerland-based provider of Nasdaq.com or click here for further details. energy-efficient light bulbs to the global structures light bulb market, raised $79 million on Nasdaq.

Please visit Nasdaq.com or click here for further details.

July 18, 2014 - TerraForm Power, a spinoff of SunEdison that owns contracted solar generation assets, raised $502 million by offering 20.1 million shares at $25, the high end of the revised range of $23 to $25. The company had originally planned to price at $19-21. Visit Nasdaq.com or click here June 16, 2014 - Aspen Aerogels an energy technology for further details. company that designs, develops and manufactures innovative, high-performance aerogel insulation used primarily in large-scale energy infrastructure facilities. raised $83 million in its IPO. Please visit Nasdaq.com or click here for further details.

June 27, 2014 - NextEra Energy Partners, LP, a carve out of NextEra Energy formed to operate ten wind and solar

*Please note this list contains non-venture backed exits.

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ENERTECH QUARTERLY Mergers & Acquisitions - US As of June 30th, 97 venture-backed M&A deals were reported for the second quarter of 2014, 33 of which had an aggregate deal value of $3.3 billion, the slowest quarter by disclosed deal value since the first quarter of 2013. The average disclosed deal value was $98.6 million, a marked decline since the first quarter of 2014. (Source: Thomson Reuters, NVCA)

M&A activity was robust across a number of sectors in which EnerTech is active: Smart Grid

Target Company GRIDiant

Acquirer Landis+Gyr

Target Description Provider of grid management software for inclusion in utility vendors’ hardware and software solutions

Date

Streetlight.vision

Silver Spring Networks Provider of control and management software for street lights.

EnTech USB

EnerNOC

Energy & Environmental Data Management specialist

April 14, 2014

Verdeeco

Sensus

Smart grid data analytics company

April 7, 2014

June 10, 2014 May 7, 2014

Energy Efficiency

Target Company American AutoMatrix

Acquirer Cylon Active Energy

Target Description Building Automation Systems Critical Environments Controls manufacturer

Date June 30, 2014

Dropcam

Nest

Wi-Fi video streaming cameras

June 23, 2014

Fusion-io

SanDisk

June 16, 2014

Air Distribution Technologies

Developer of efficient data center hardware and software solutions Johnson Controls Provider of air distribution and ventilation solutions in the United States

Windstrip

VRDT

Hybrid Power System Developer

June 13, 2014

Energy Options

Albireo Energy

Provider of building automation systems and monitoring services

June 3, 2014

Ecova

GDF Suez

Provider of bill management and auditing services focused on reducing expenditures related to utilities, telecom, lease payment, and waste

May 30, 2014

E

GreenBytes

Oracle

Developer of data storage technology that reduces power consumption and increases density

May 15, 2014

G

SynapSense

Panduit

Provider of wireless instrumentation and control systems

May 9, 2014

S

LuxVue Technology

Apple

May 2, 2014

Litecontrol

Hubbell

Developer of low-power micro-LED technology for consumer electronics displays Developer of efficient lighting products

April 23, 2014

Blacksumac

iControl Networks

Home automation devices

April 8, 2014

June 16, 2014

T

L

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L

ENERTECH QUARTERLY Energy Storage Target Company

Acquirer

Target Description

Xtreme Power

Younicos

Developer of utility-scale power management and energy storage systems

Date April 14, 2014

Fuel Cells & Hydrogen Target Company Fuel Cell IP Assets of UTC

Acquirer Target Description Ballard Power Systems Transportation- and stationary-related fuel cell IP assets

Date April 24, 2014

ReliOn

Plug Power

April 3, 2014

Developer of PEM fuel cells

Water & Wastewater Target Company Crane & Co.’s water division

Acquirer

Target Description

Date

Newterra

Crane's water division

June 10, 2014

Filter Specialists Inc.

Pall Corp

Manufacturer of liquid filtration products

May 1, 2014

Advanced Materials Target Company

Acquirer

Target Description

Zygo

Ametek

Supplier of optical metrology instruments, high precision optical components, and complex electro-optical systems design and manufacturing services

June 20, 2014

Alcereco

Grafoid

June 9, 2014

CabelmaPET S.A.

DAK Americas

Metal Alloys, Ceramics, Graphene 3D printing production / manufacturing PET bottle recycling company

Harvest Technologies

Stratasys

April 3, 2014

Solid Concepts

Stratasys

Full-service rapid prototyping and manufacturing service provider Provider of prototyping and custom manufacturing services via 3D printing technology

Date

May 6, 2014

April 3, 2014

Recycling & Waste Target Company

Acquirer

Target Description

Envision Plastics

Consolidated Container Company GFL Waste and Recycling Solutions GFL Waste and Recycling Solutions US Ecology

Producer of post consumer recycled polyolefin resins (HDPE)

June 18, 2014

Waste collection company

April 28, 2014

Waste collection company

April 28, 2014

Provider of integrated environmental and waste management services

April 7, 2014

Deuce Disposal Ltd. Tri-Line Disposal Inc.

Environmental Quality Company

Date

18

ENERTECH QUARTERLY The EnerTech Team A Seasoned, Diversified, and Experienced Group Philadelphia

Scott Ungerer Managing Director

Bill Kingsley Managing Director

Dean Sciorillo Director

Donna Smith Executive Assistant

Colleen Pale Director of Finance and Administration

Gian Vergnetti Analyst

Lyndsy MacArthur Executive Assistant

Angelica Mengana Analyst

Hoon Chung, Executive in Residence

Robert M. Chiste Executive in Residence

Toronto

Wally Hunter Managing Director

Montreal

Calgary

Menlo Park

Boston

Anne-Marie Bourgeois VP Investments

Eric Schmadtke VP Investments

Dr. Dominic Geraghty Executive in Residence

Jarett Carson Managing Director

19

ENERTECH QUARTERLY The EnerTech Strategic Advisory Board Our Network is an Extended Family of Deal Sourcing, Due Diligence and Exits The EnerTech Strategic Advisory Board is made up of a diverse and experienced group of visionaries, industry leaders and experts in various disciplines. They bring unparalleled expertise and a wide network in the areas of energy services and policy, information technology, Oil & Gas, and clean energy innovation. We are proud and grateful to have them as members of our Advisory Board.

Alan Cadotte President and CEO, Newalta Corporation

Michael B. Davies Principal, Davies & Co

Dr. Jim de Wilde President, JdW Strategic Ventures

Rebecca Giffen Director of Investments, Alberta Enterprise Corporation

20

ENERTECH QUARTERLY

Michael Harris Former Premier of Ontario

Bryan Helfenbaum Manager of Technology Development at Devon Canada

J. Scott Magrane Managing Director, Coady Diemar Partners

David Milenthal CEO, The Milenthal Group

John Morris

Rebecca Kauffman President and COO, Southern Ute Alternative Energy

Eric Legault Managing Partner, Teralys Capital

Dr. Bill Madia Chairman of the Board of Overseers and VP for the SLAC National Accelerator Laboratory,

Sr. Vice President of Field Operations Waste Management

Governor George Pataki Former Governor of New York

Clark Phippen Independent Board Member

Stanford University

21

ENERTECH QUARTERLY

Guillemette Picard Investment Director, GDF Suez New Ventures

Warren Plunkett Portfolio Manager, Export Development Canada

Gordon Pridham Principal, Edgewater Capital and Newalta Board Member

Rob Soni Independent Board Member

Marty Toomajian President of Energy, Health & Environment, Battelle

Nils Voermann - Global Managing Director Technologies, Hatch

Laurence Rose Senior Managing Director, Cantor Fitzgerald

Victor Scutaru Director, Fund Investments, BDC Venture Capital

22

ENERTECH QUARTERLY Upcoming

 November 18, 2014 - Toronto 2014 Canadian Innovation Exchange

Industry Events

 December 2-4, 2014 - Scottsdale, Arizona EnerTech Capital Forum and LP Meeting  December 11, 2014 - Houston Energy Game Change: Private Capital and the Transformed North American Energy Opportunity

 September 10 - 11, 2014 - Mexico City

Mexico Energy Summit  September 15 - 26, 2014 - Vancouver

Family Office & Endowment Forum

EnerTech in The

 September 23-24, 2014—Berkeley

News/Media

Water Innovation Summit  September 25 - 26, 2014 - Banff

2014 Banff Venture Forum

 September 27 - October 1, 2014 - New Orleans, LA

Weftec - the Water Quality Event  September 29—October 1, 2014 - Toronto

Front End Innovation Canada

 July 22, 2014 Privcap Interview with Wally Hunter  May 21, 2014 EnerTech Team Meets Mike Babcock  May 12, 2014 EnerTech Capital announces strategic partnership with Devon Canada

Propel Energy Tech Conference - Jan 27 & 28, 2015

 October 1-3, 2014 - Quebec City

2014 National Angel Summit

Our very own Eric Schmadtke will be chair of the upcoming PROPEL Energy Tech conference in January, 2015. Please hold the date. We hope to see you there!

 October 2, 2014- Colombia Private Equity Andean Forum  October 6-7, 2014—Washington Global Cleantech 100 Week 2014  November 12-13, 2014 - New York City Cleanweb and the City 2

The three core pillars of the conference are:  Water, Waste & GHGs  Advanced Materials & Chemicals  Extraction, Drilling, Upgrading & Transportation

 November 12-14, 2014 - Toronto World Water-Tech North America

www.EnerTechCapital.com Philadelphia ● Toronto ● Montreal ● Menlo Park ● Calgary For questions or comments, please contact: Wally Hunter Managing Director, EnerTech Capital whunter@enertechcapital.com tel #416-363-8563 23