Gazelle's operating approach is characterized by two themes, Value-added and Networked.

Value Added: Increasingly, the investing community has recognized the need for value added investment as over-capitalized investment markets put pressure on private equity returns. The funds with predictably high performance over time have been those that employ a model where equity involvement is more than invested capital and Board attendance.

Gazelle TechVentures seeks to add value to its potential investments in the following ways:

Early stage companies: Gazelle TechVentures employs a larger professional team than is typically associated with a fund its size. The professional staff has skills that extend beyond financial investing, and Gazelle often assists entrepreneurs with plan formation in advance of investment consideration. More importantly, Gazelle links entrepreneurs with appropriate resources outside of Gazelle such as Board members, senior executives or professional advisors and funds required development activities where appropriate.

Middle to late stage companies: Generally, these companies have well developed plans, more complete management teams and access to resources. Gazelle's role in working with these companies is to provide a platform for syndication of capital and resources. For the middle stage company, Gazelle actively assists in building their management team and developing their approach to the market and puts its money behind the company indicating local acceptance of the concept and team. For later stage companies, Gazelle assists management teams in identifying and networking with the most strategically important advisors and investors as they prepare for large private rounds of funding or IPO. As Gazelle extends its network and portfolio of investments, outside capital groups will view Gazelle's participation as a validation for investment opportunities.

The management of Gazelle believes that by adding value to capital investment, and by generally being responsive and helpful even in cases where it is unlikely to fund a entrepreneur, it has achieved a sustainable position in Indiana as the first and best place to take venture opportunities. Gazelle's Limited Partners will have access to opportunities for superior returns because of this position and because of Gazelle's approach.

Networked: Gazelle has and continues to develop relationships with key individuals and organizations that generate, service and invest in venture capital transactions. Gazelle's basic approach is one of cooperation rather than competition, as we believe that the more talented resource made available to the entrepreneur, the better Gazelle's investment will perform. Gazelle currently has and is actively expanding relationships with:

• Other investing entities: individuals, angels, and other venture capital firms both in and outside of Indiana, especially in the venture financial centers.
• The Universities: An essential source of research, technology transfer and human capital.
• Government and civic groups: Gazelle has begun working with the Indiana Technology Partnership, local economic development initiatives and state and local government.
• The professional services community: Gazelle has deep relationships with groups that offer the "best practice" in venture capital and entrepreneurial service.