8/6/2019 Jin Yi - Case Study of ADB CLimatech VC Initiative

1/16

Keytone Ventures:A case study of ADB Climatech VC Initiative

Investing in Clean Tech in China:Approaches and Opportunities

Jin YiManila, 06/22/2011

JinYi@keytonevc.com

Presentation to Asia Clean Energy Forum 2011

8/6/2019 Jin Yi - Case Study of ADB CLimatech VC Initiative

2/16

Who is Keytone Ventures?

A leading China-focused venture capital fund

Allocating large percentage of the capital investing in clean tech.

Starting investment in 2007

Fund I closed in 2009 with $200m size, with 10+ portfolios

Fund II target size of $200m and investing

8/6/2019 Jin Yi - Case Study of ADB CLimatech VC Initiative

3/16

Who is Keytone Ventures?

Compared with U.S. peers Keytone is more of a growth capital for our focus on mid market or early-growth

investment stage , research driven deal sourcing , targeting high success rate,rigorous investment selection process , small number of deals and high perdeal allocation and shorter holding period;

Compared with China peers Keytone is more of a venture for our dedicated technology focus , strong vertical

expertise and not focusing on pre-IPO deals .

8/6/2019 Jin Yi - Case Study of ADB CLimatech VC Initiative

4/16

Team

Founded by Joe Zhou (former Founding & Managing Partner of KPCB China), Stella

Jin (former Venture Partner of IDG) and Peng Jin (former Partner of IDG) Built on the spinoff of KPCB Chinas Beijing team

Joe ZhouFounding &Managing

Partner

Stella JinFoundingPartner

Peng JinFoundingPartner

Qi LiOperations

Partner

8/6/2019 Jin Yi - Case Study of ADB CLimatech VC Initiative

5/16

Team

Dr. Eric TaoPrincipal

Dr. Jin YiVice President

Mr. Yu ChengSenior Associate

Ms. Winnie ShiIR Manager

Mr. Jeff ChuAssociate

Mr. Michael XuAdvisor

Mr. Lu GuoSenior Associate

8/6/2019 Jin Yi - Case Study of ADB CLimatech VC Initiative

6/16

Investment Process

Call ReportsConcept

PaperTerm Sheet

Investment

CommitteeClosing

Rigorous Investment Processand

Discipline

8/6/2019 Jin Yi - Case Study of ADB CLimatech VC Initiative

7/16

Strong market presence benefiting from Partners collective experience and expertise in the VC industry Effective and disciplined execution of firm strategy Commitment to performance

Top investment team One of the most successful track records in the industry Investment experience in China since the 1990s Emphasis on industry expertise in team building

Proven investment strategy Growth venture focus: less competition, reduced risk, high return potential Systematic market coverage yielding promising opportunities ahead of the market trend

Uncompromised investment disciplines Consistent industry and stage focus over the past 15 years Rigorous and thorough internal process

The Key Tones of Keytone

8/6/2019 Jin Yi - Case Study of ADB CLimatech VC Initiative

8/16

How?

Investment Strategy

Seeks strong proof of business models and execution capabilities, looking to investbefore inflection point Invests in companies that passed start-up hurtle

Deal flow Follows proactive, research driven, systematic market coverage approach Pre-defines investment themes within the four focused industries and build strong

vertical expertise Resulting strong, steady proprietary deal flows

Portfolio Construction Selection Process Focuses on high success rate, relatively shorter holding period Extremely high hurtle, disciplined selection process

Portfolio Management Emphasizes on hands-on portfolio management to create value for portfolios

8/6/2019 Jin Yi - Case Study of ADB CLimatech VC Initiative

9/16

Focus on clean technology value chains and related services

Key issues Technology viability Team capability Market maturity Operation scalability Capital efficiency

Investment Strategy Clean Technology

8/6/2019 Jin Yi - Case Study of ADB CLimatech VC Initiative

10/16

Clean Tech Sectors

5 categories33 sub categories

78 sub sub categories90 sub sub sub categories

8/6/2019 Jin Yi - Case Study of ADB CLimatech VC Initiative

11/16

Clean Tech Sectors with high potentials

For Internal Use Only

Solar

Clean Coal

Wind

Coal-bedmethane

Hydrogen

Bifuels Geothermal

E n e r g y S o u r c e

LED

IndustrialEnergy

Efficiency

BuildingMaterials

Green IT

Smart Appliance Fuel Cell

Electric Vehicle

E n e r g y

U t i

l i z a t i o n

/ C o n v e r s i o n

WaterTreatment

Solid WasteTreatment

Air PollutionControl

Agriculture E n v i r o n m e n t

Building EnergyManagement

SmartDistribution

Grid

Large EnergyStorage

Energy SystemOptimization

E n e r g y

T r a n s m i s s i o n

/

D i s t r i b u t i o n

Power Battery

Logistics Goods/Equipment Transportation

C Capture/Storage

ProjectFinancing PPA/Leasing/EMC

LED Key materials Epi Process Packaging

Energy Efficiency IndustrialApplication

Heavy industry System efficiency New business model

EV/Battery Key performance materials High performace cell design Scalable EV drivetrain developer Scalable BMS component New business model of charging

infrastructure

Solar High efficiency crystalline cell Better ROI enabler BOS side

8/6/2019 Jin Yi - Case Study of ADB CLimatech VC Initiative

12/16

Company Lattice Power manufactures IC chips for LED lighting products using their innovative

manufacturing technology and processes. The company utilizes established fabricationequipment for large volume manufacturing. The disruptive cost structure gives thecompany the opportunity to be a dominant player in the market within five years.

Investment Rational Disruptive technology with potential to achieve industry changing cost advantages in a

fasting growing multi-billion dollar global market Superior technical expertise in the field built on 20+ years of research and development

with 50+ patents filed Strong government support including cheap land, special-purpose grants and favorable

tax policies

Portfolio I - Lattice Power

8/6/2019 Jin Yi - Case Study of ADB CLimatech VC Initiative

13/16

Portfolio II - SinoWyde

Company Sinowyde is leading technology company specialized in energy conservation. Utilizing its

proprietary technology, Sinowyde helps industrial and power plants realize significantsavings in coal consumptions through improving the boiler combustion efficiency.Sinowyde shares energy savings with its clients over a 6~10 year contract period (EMC).

Investment Rational Over $10 billion addressable market with no significant competitor Unique technical expertise in combustion efficiency and automated controls Highly scalable business model Self-optimizing algorithms feed on actual boiler operating data and provide sustainable

technological advantages Over Rmb65 million contracts signed

8/6/2019 Jin Yi - Case Study of ADB CLimatech VC Initiative

14/16

Deal Pipeline - Solar

High efficiency Solar Cell Manufacturer Offering high efficiency cell/module that is lead-edge in the industry Device and process innovation that utilizing off-the-shelf process equipment and

technology which are mature in semiconductor and solar industry Concept proved with test results from national labs Manufacturing ready to ramp up Experience team with substantial experience in semiconductor and solar industry in

both US and China

8/6/2019 Jin Yi - Case Study of ADB CLimatech VC Initiative

15/16

Deal Pipeline - Battery EV

Battery Key Performance Material Manufacturing Offering key battery material that substantially improving battery power and/or energy

density Technology innovation in mass manufacturing technology in low cost Manufacturing capacity built and concept proved, and ready to ramp up Experience team with experience in large multi-national material/battery companies

Power Battery Manufacturer Offering power battery for power-tool, electrical bicycle, and electrical vehicle Market leader in electrical bicycle battery manufacturing Innovative manufacturing technology that tailored for power application Experienced team in battery manufacturing

EV battery-pack and EV drivetrain solution provider Offering battery-pack and control system for electrical passenger car and electrical bus Designed in with two major domestic auto manufacturers Experienced team with experience with world-leading EV manufacturer

8/6/2019 Jin Yi - Case Study of ADB CLimatech VC Initiative

16/16

Thank You!

Jin YiJinYi@keytonevc.com