01.01.18 sfe corporate...

www.safeguard.com ©2017SafeguardScientifics,Inc.Allrightsreserved.

January2018

CorporatePresentation


TheSafeguardAdvantages

§ StrongPortfoliooftech-enabledcompaniesacrossseveralverticals

§ TalentedTeamwithdeepdomainexpertiseandoperatingexperience

§ Flexible,Multi-StageCapitalDeploymentApproachthatisnotconstrainedbythetypicalLimitedPartnerfundstructure

§ ScalableOperatingModeltoaccommodatealargerportfolioofcompanies

§ ExtensiveNetworkwithaccesstoearly- andgrowth-stagetechnologyopportunitiesincludingEnterprises,Advisors,AcceleratorsandUniversities

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CapitalDeploymentObjectives

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PartnerCompanies:Overview

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PartnerCompanies:ByRevenueStage

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PartnerCompanies:ByAge*

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AggregatePartnerCompanyRevenue

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2017AggregatePartnerCompanyRevenueProjectedtoIncrease23%– 26%YoY


PartnerCompanies:Transactis

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NewYork,NY Expansion

Leadingproviderofelectronicbillingandpaymentsolutions.Enablesbusinessesofallsizestoreplacepaperbills,statements,invoices,paymentsanddocumentswithmoreefficientdigitalalternatives.

CapitalOneFinancialCorporation(NYSE:COF),FifthThirdBancorp(NASDAQ:FITB),PNCFinancialServicesGroup(NYSE:PNC),TDBankGroup,Walletron,WellsFargo&Company(NYSE:WFC).

Fewerthan25%ofbillsarepresentedelectronicallyintheU.S.Thechannel-orientedTransactismodelfeaturesup-to-dateSaaSinfrastructureandispositionedtogrowwithanEBPPmarketthatisexpandingatacompoundannualrateof16%(Source:Latente Group).

August2014InitialCapitalDeployed

$14.5MTotalCapitalDeployed

24%SFEPrimaryOwnership

SeriesD,SeriesEFundingStages


PartnerCompanies:TriceMedical

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KingofPrussia,PA InitialRevenue

Pioneeredandevolvedafullyintegratedcamera-enabledtechnology,themi-eye2,whichprovidesaclinicalsolutionoptimizedforthephysician’soffice.

OpenClinica Enterprise,PacificMedical,Punumbra,TikaMobile

Addressablemarketopportunityisapproximately$10B,including32Mofficevisitsforrelatedkneeandshoulderpainand8M+MRIsannuallyintheU.S.alone.

July2014InitialCapitalDeployed


25%SFEPrimaryOwnership

SeriesB,SeriesCFundingStages


PartnerCompanies:MediaMath

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NewYork,NY HighTraction

Globaltechnologycompanythatisleadingthemovementtorevolutionizetraditionalmarketinganddrivetransformativeresultsformarketers.

Facebook,IBM,iSocket,Microsoft,Oracle,TimeInc.andYahoo!

Worldwidedigitaladspendingwillreach$224Bin2017andrepresent38%oftotalpaidmediaoutlays.Theformatisexpectedtoseedouble-digitgrowththroughatleast2020.(eMarketer)

July2009InitialCapitalDeployed


20.4%SFEPrimaryOwnership

SeriesB,SeriesCFundingStages


PartnerCompanyHoldingsat9/30/17

Stage Category AcquisitionYear

PrimaryOwnership%

CarryingValue Cost

PartnerCompanies: (inmillions) (inmillions)AdvantEdgeHealthcareSolutions HighTraction Healthcare 2006 40% $5.0 $16.3Aktana InitialRevenue Healthcare 2016 25% 4.9 9.7Apprenda Expansion Other 2013 29% 8.5 22.1Brickwork InitialRevenue DigitalMedia 2016 20% 3.6 4.2CaskData InitialRevenue Other 2015 31% 7.4 12.6CloudMine InitialRevenue Healthcare 2015 47% 3.7 7.5ClutchHoldings Expansion DigitalMedia 2013 43% 8.8 16.3FullMeasureEducation InitialRevenue DigitalMedia 2015 42% 6.7 11.0HooplaSoftware InitialRevenue DigitalMedia 2011 26% 0.2 5.1InfoBionic InitialRevenue Healthcare 2014 40% 1.6 19.4Lumesis InitialRevenue FinancialServices 2012 44% 1.7 6.3MediaMath HighTraction DigitalMedia 2009 20.4% 2.9 25.5meQuilibrium InitialRevenue Healthcare 2015 37% 6.1 10.5MoxeHealth InitialRevenue Healthcare 2016 32% 3.9 4.5NovaSom HighTraction Healthcare 2011 32% 1.6 23.6Prognos(fkaMedivo) Expansion Healthcare 2011 35% 4.2 11.6PropellerHealth InitialRevenue Healthcare 2014 24% 7.2 14.0QuanticMind InitialRevenue DigitalMedia 2015 25% 8.1 11.5Sonobi Expansion DigitalMedia 2015 22% 5.8 8.4Spongecell Expansion DigitalMedia 2012 23% 6.6 18.0Syapse InitialRevenue Healthcare 2014 26% 3.4 13.3T-REX InitialRevenue FinancialServices 2016 21% 5.4 6.0Transactis Expansion FinancialServices 2014 24% 9.5 14.5TriceMedical InitialRevenue Healthcare 2014 25% 4.1 10.2WebLinc Expansion DigitalMedia 2014 38% 8.0 14.0Zipnosis InitialRevenue Healthcare 2015 25% 4.2 7.0Total TOTAL: $133.1 $323.1

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ProFormaPotentialValueofInterestsinPartnerCompanies

PROFORMABASEDONCoC

TARGET

PROFORMABASEDONCoCTRACK

RECORDCostofPartnerCompanies $323.1 $323.1

xCash-on-CashReturn 2.0 1.5

ProFormaProceeds $646.2 $484.7

CurrentCarryingValueofPartnerCompanyInterests $133.9 $133.9

$inmillions

Thepastperformanceofourinterestsinformerpartnercompaniesmaynotbeindicativeoffutureresults.ThepotentialvalueofthePartnerCompanies,oranyspecificPartnerCompany,maynotcorrespondtoanyindicatedhistoricalvaluesorperformancelevels.

(1) Safeguardtargetsaminimumaggregatecash-on-cashreturnof2.0x.(2) Datafrom1/1/06through9/30/17.Includesallexitsandwrite-offsofnewpartnercompaniessince1/1/06.

(1)

(1)

(2)

(2)

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ProFormaPotentialValueofInterestsinPartnerCompanies

$133.9

$323.1

$484.7

$646.2

$100.0

$200.0

$300.0

$400.0

$500.0

$600.0

$700.0

CarryingValue Cost ProFormaPotentialProceedsbasedonCoC

TrackRecord

ProFormaPotentialProceedsbasedonCoC

Target

$inmillions

Thepastperformanceofourinterestsinformerpartnercompaniesmaynotbeindicativeoffutureresults.ThepotentialvalueofthePartnerCompanies,oranyspecificPartnerCompany,maynotcorrespondtoanyindicatedhistoricalvaluesorperformancelevels.

(1) Datafrom1/1/06through9/30/17.Includesallexitsandwrite-offsofnewpartnercompaniessince1/1/06.(2) Safeguardtargetsaminimumaggregatecash-on-cashreturnof2.0x.

(1)

(2)(1)

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SuccessStories

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NOLsandCapitalLossCarryforwards

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EquityIncentiveCompensation

§ KeyAttributes

• Structuredtoalignwithshareholderinterest

• Consistentwithcarriedinterestmethodology

• Two-thirdsofvestingbasedonperformancecriteria

§ PerformanceVesting

• Uponachievementofcash-on-cashreturnthresholds(2.0x-3.0x)onpoolsofcapitaldeployed

§ InsiderOwnership

• Ownershiprequirementsof2x-4xbasesalaryforseniormanagement

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WhyOwnSafeguard(NYSE:SFE)?

§ Accesstoearly- andgrowth-stagetechnologycompanies

§ SFEcurrentlytradesatdiscount tonetassetvalueandcost

§ Fullvalueofpartnercompaniesnotreflectedinshareprice

§ Teamhasdeepdomainexpertiseandoperatingexperience

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Forward-LookingStatements

Statementscontainedinthispresentationthatarenothistoricalfactsareforward-lookingstatementswhichinvolvecertainrisksanduncertaintiesincluding,butnotlimitedto,risksassociatedwithourabilitytomakegooddecisionsaboutthedeploymentofcapital,thefactthatourpartnercompaniesmayvaryfromperiodtoperiod,oursubstantialcapitalrequirementsandabsenceofliquidityfromourpartnercompanyholdings,fluctuationsinthemarketpricesofourpubliclytradedpartnercompanyholdings,competition,ourinabilitytoobtainmaximumvalueforourpartnercompanyholdings,ourabilitytoattractandretainqualifiedemployees,marketvaluationsinsectorsinwhichourpartnercompaniesoperatemaydecline,ourinabilitytocontrolourpartnercompanies,ourneedtomanageourassetstoavoidregistrationundertheInvestmentCompanyActof1940,andrisksassociatedwithourpartnercompanies,includingthefactthatmostofourpartnercompanieshavealimitedhistoryandahistoryofoperatinglosses,faceintensecompetitionandmayneverbeprofitable,theeffectofeconomicconditionsinthebusinesssectorsinwhichourpartnercompaniesoperate,andotheruncertaintiesasdescribedinourfilingswiththeSecuritiesandExchangeCommission,includingourAnnualReportonForm10-K.Asaresultoftheseandotherfactors,theCompany’spastfinancialperformanceshouldnotbereliedonasanindicationoffutureperformance.

Safeguarddoesnotassumeanyobligationtoupdateanyforward-lookingstatementsorotherinformationcontainedinthispresentation.

AlldatacurrentasofSeptember30,2017.

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