“The outlook for the Canadian venture capital industry is bleak given its ecosystem is broken and there is no immediate solution at hand. The Canadian government and the domestic VC community must join forces to bring the industry back from the brink of collapse”

1. Global Trends in Venture Capital 2007 Survey January 31, 2008 John Ruffolo , Partner, National leader of the Technology, Media and Telecommunications Industry Group François Sauvageau , Partner, Technology, Media and Telecommunications Industry Group and Montreal Leader of Life Sciences Group Robert Nardi , Senior Manager, Technology Media and Telecommunications Industry Group

8. Global VC investment increasing… Global Trends in Venture Capital 2007 Survey Figure 4. Percentage of venture capitalists indicating an increase in expanding global investment focus (all respondents)

12. Canada perspective Global Trends in Venture Capital 2007 Survey Figure 60. Top locations with an unfavorable tax environment (all respondents)

14. The Canadian venture capital funding ecosystem Global Trends in Venture Capital 2007 Survey

23. Québec landscape Global Trends in Venture Capital 2007 Survey

24. Venture capital investment in Q3 Tops $500 MM Dollars invested and companies financed Global Trends in Venture Capital 2007 Survey Amount Invested ($ Millions) # Companies Financed 128 168 $347 $508 $611 131 $438 146 $512 141 Source: Thomson Financial

25. Venture capital investment trending slightly higher Dollars invested and companies financed – Four quarter rolling averages Global Trends in Venture Capital 2007 Survey Amount Invested ($ Millions) # Companies Financed Source: Thomson Financial

26. North american context: Ontario, Québec and BC finish in 5 th , 13 th and 20 th place overall Q3 2007 VC disbursements ranking by province and state (CAD$ MM) Global Trends in Venture Capital 2007 Survey US data as per the MoneyTree ™ Report by PWC/NVCA based on data by Thomson Financial Source: Thomson Financial

27. Financing sizes continue to exceed historical averages Average amount invested per company Global Trends in Venture Capital 2007 Survey Average Amount Invested (CAD$ Millions) Average $2.7 MM Source: Thomson Financial

28. 2.2x more invested in US firms in 2007 differential narrowing Amounts invested per company, Canada & US Global Trends in Venture Capital 2007 Survey Amount Invested ($ CAD Millions) Source: Thomson Financial

29. Foreign investment into Canada outpacing Canadian investment abroad Dollars flowing into Canada vs. Dollars flowing out Global Trends in Venture Capital 2007 Survey Amount Invested ($Cdn Millions) * 2007 Annualized Source: Thomson Financial

30. Life sciences investment up from Q2, down from Q1 Dollars invested and completed transactions in life sciences Global Trends in Venture Capital 2007 Survey Amount Invested (CAD $ Millions) # Financings Source: Thomson Financial

31. Follow-on financings continue to dominate Dollars invested, new vs. follow-on Global Trends in Venture Capital 2007 Survey Source: Thomson Financial

32. 69% of Q3 investments directed to later stage companies Dollars invested by stage Global Trends in Venture Capital 2007 Survey Source: Thomson Financial

33. Top (disclosed) VC deals of Q3 2007 Foreign investment focused on larger deals Global Trends in Venture Capital 2007 Survey * Includes foreign participation Source: Thomson Financial Company City Province $CAD MM Invested Sources of Capital OANDA Corporation* Toronto ON $104.6 Enobia Pharma Inc.* Montreal QC $40.1 Neuraxon Inc.* Toronto ON $33.5 Topigen Pharmaceuticals Inc.* Montreal QC $26.0 BlueStreak Technology Inc.* Montreal QC $20.9 QuickPlay Media Inc.* Toronto ON $15.7 Vantrix Corporation* Montreal QC $12.6 BTI Photonic Systems Inc.* Ottawa ON $12.5 Strangeloop Networks Inc. Vancouver BC $11.5 NowPublic Technologies Inc.* Vancouver BC $11.6

34. Ontario’s share jumps; B.C. shows greatest decline Dollars invested by region Global Trends in Venture Capital 2007 Survey Q2 2007 $438 Million Q3 2007 $512 Million Source: Thomson Financial

35. Ontario sees lead over Québec and B.C. in Q3 Quarterly investment in Ontario and Québec Global Trends in Venture Capital 2007 Survey Amount Invested (CAD$ Millions) Source: Thomson Financial

36. Québec contributed 80% of fundraising in first nine months of 2007 New capital commitments by province Global Trends in Venture Capital 2007 Survey Amount Raised (CAD$ Millions) Source: Thomson Financial

37. VC-backed IPO and M&A exit trends # of exits and average disclosed transaction sizes Global Trends in Venture Capital 2007 Survey # VC-Backed Exits Average Disclosed Offering/Transaction Sizes ($ MM) IPO M&A Source: Thomson Financial

41. Global Trends in Venture Capital 2007 Survey © Samson Bélair/Deloitte & Touche s.e.n.c.r.l. and affiliated entities. Deloitte, known in Québec as Samson Bélair/Deloitte & Touche s.e.n.c.r.l., is one of the leading professional services firms in Québec and Canada, providing audit, tax, financial advisory and consulting services. In Québec, approximately 1,900 people regularly draw on their expertise for clients from every sector of the economy. With over 7,600 people working in 56 offices across the country, Deloitte is dedicated to helping its clients and its people excel. Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms, and their respective subsidiaries and affiliates. As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other's acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names “Deloitte,” “Deloitte & Touche,” “Deloitte Touche Tohmatsu,” or other related names. Services are provided by the member firms or their subsidiaries or affiliates and not by the Deloitte Touche Tohmatsu Verein.