Lead or Participate

Keating Capital has invested in pre-IPO financing rounds ranging from as little as $5 million up to $200 million. The average size of our portfolio companies’ pre-IPO rounds has been about $50 million as of September 30, 2011. Keating Capital is willing to act as lead investor where we negotiate terms or participate in rounds where the terms have already been set.

Lead

We believe we provide three core benefits to our stockholders as follows:

• We believe we are the first and only public investment fund exclusively dedicated to pre-IPO investing in the U.S.  Unlike private venture capital funds, we believe that our fund is transparent and will provide liquidity to our stockholders once our common stock becomes listed on the Nasdaq Capital Market, which we expect will occur by the end of 2011.
• We provide access to later-stage (i.e., pre-IPO) investments in emerging growth companies that would otherwise be difficult to access or inaccessible for most of our individual investors.
• Because of our profile as a flexible, non-controlling investor, we believe we are well positioned to participate in the last round of private financing that high growth companies typically need before they complete an IPO.

Participate

Where we are not the lead investor in a pre-IPO financing round or unable to negotiate terms directly with selling stockholders in a secondary transaction, the price and terms of the investment have generally already been established by the issuer and/or its placement agent or by the selling stockholder group and/or its adviser. In these deals, we typically we will not have the favorable, structured terms that we may be able to negotiate as the lead investor, although some variation may be included in certain investments.