Asian Tiger Capital Partners Ifty Islam Managing Partner Presentation at the AABEANJ Seminar on Outsourcing to Bangladesh June 15, 2008 www.at-capital.com

AT Capital: An integrated investment platform for BD Each component critical, mutually reinforcing, ensuring highest return for our investors Research Private Equity Asset management Corporate advisory Maximizing investor return throughout the deal cycle Local investment vehicles aimed at global investors Generalist investor in roll-up opportunities

Why we chose this business model Little credible market, sector or company analysis today - we are the first Research gives us access to deals, policy makers and Non Resident Bangladeshis Clear market need to support local companies in competing regionally and globally Safe mechanism to test and learn about new sectors Our value proposition resonates - topic expertise, global access, management mentorship, and transaction support Permits investors/NRBs with shorter investment horizons to invest in BD Logical application of our research arm to permit revalue undervalued companies Market and management inefficiencies create ‘low hanging investment fruit’ Over $1billion reasons to invest– energy, retail, energy, healthcare, agriculture, telecom, technology, manufacturing, financial services, education Research Corporate advisory Asset management Private equity

Aggressively investing in our brand at-capital.com Asia Society conference Daily star articles Citi NRB conference CEO roundtable Brand Bangladesh Liaison office opening EMPEA 2015 report Global alliances Leading CEO one-on-ones TV interviews Panelist / Lead speaker in local investment forums Advisory Team Building local reputation with corporates and regulators Building international reputation with investors, PE funds and MNCs Corporate Advisory/ Investments

Our management philosophy Activist investor Operating improvement Rigorous due diligence Clear transparency Board representation Non executive chairman Senior advisers as interim CEO’s, Ongoing performance appraisal of the management teams Involvement in strategic direction Augmenting management bench-strength with global capabilities Legal protection through shareholder agreements Detailed manager assessments Credible third part references Leveraging advisory board Senior advisor involvement Use of PE and emerging market focused investment committee Strategy audit Financial valuation Strength of 100 day plan Credibility of exit plan Pre-deal negotiation tactics Engagement of strong professional adviser team Focused deal flow High caliber entrepreneurs with strong track records Under-valued companies Clear ‘roll up’ opportunity Creation of shell company Majority share in venture Independent audit team Cadence of check-ins Weekly operating committee meeting to track progress Monthly Steering Committee readout – Board, Investment Committee, LP’s Day 1 review and change of internal process and controls Day 1 management offsite 100 day change plan Management incentives – aligning on end goals Senior advisor engagement Monthly board read-outs Board / management / vendor / lender interviews  change plan Development and tracking of operating & financial dashboard Installation of global board NRB’s - virtual mentors Global topic experts - train team Alliance partners – global competitiveness

The core management team Globally trained, locally based Ifty Islam is the founder and Managing Partner of AT Capital A 18 year Wall Street career Was a Managing Director at Citigroup, London from 2004-2007 where he was Head of Macro Strategy/Hedge Fund Research. From 1997-2004 Ifty spent 8 years at Deutsche Bank Securities in London and New York, latterly as Managing Director and Chief US Strategist. Was a European Strategist at Merrill Lynch and began his career in 1989 in the corporate finance group at BZW Securities focusing on privatizations in Eastern Europe. He graduated from the Queen’s College, Oxford with a BA/MA (First Class) in Politics, Philosophy and Economics. Syeed Khan is a founding Partner of AT Capital Prior to this he worked in Corporate Finance in London for Landsbanki Securities, a Pan European Investment Bank, where he focused on M&A, private equity buyouts and other corporate advisory mandates. Prior to this he worked for Ernst & Young LLP in London where he qualified as a Chartered Accountant (CA) with the Institute of Chartered Accountants of Scotland. His clients have spanned across various sectors including Private Equity, Asset Management, Banking, Leisure, Retail, Manufacturing, Real Estate, Construction, Technology and Energy. He is a Member of the Securities Institute in the UK (MSI). He read Law (LLB) at Aberdeen University and completed a Post Graduate Diploma in Management Studies (DMS) from Aberdeen Business School. The partners are supported by 20 ‘best in class’ research analysts – each with significant local market experience, and degrees from the premier local business schools

Our senior advisors Zarif Munir is a senior Principal with The Boston Consulting Group, based out of Chicago. His areas of expertise include turnarounds, operational and organizational effectiveness. He has worked closely with Fortune 500 companies in the industrial goods, consumer goods, healthcare, and software development space. Over the last 11 years, Zarif has worked out of BCG's Asia, Latin America, and North America offices, prior to which he was with Price Waterhouse Coopers for 2 years as an auditor. He is a Certified Public Accountant, and holds a Masters in Business Administration with Distinction from The Kellogg School of Management. Shabbir Ahmed is a Managing Partner of Princeton Global Equity, USA, a management and investment company established to generate and manage private equity and venture capital. Prior to this, Shabbir was CFO and V.P Finance & Control, Europe at Stanley Works (Aug 2006 - Jun 2007), a worldwide manufacturer and marketer of tools hardware and specialty hardware products. He also worked as Vice President, Change Management, at Johnson Controls Inc. (JCI), the world's largest independent supplier of automotive interior systems and leading worldwide supplier of building control systems, services and building management. His expertise lies in extensive knowledge in Finance, Control, Business Restructuring and Business Development with large multinational companies. Nasim Ali is a Managing Partner of Princeton Global Equity, USA, a management and investment company established to generate and manage private equity and venture capital. He was the Executive Vice President and Chief Marketing Officer of SBLI USA Mutual Life Insurance Company, a USD 2 billion financial services company. Prior to this he was with USLIFE Corporation, as Senior Vice President. He has earned the professional designation of an Actuary from the American Academy of Actuaries and the Society of Actuaries. He studied at the London School of Economics, England where he graduated with high honors, majoring in Mathematical Economics and Actuarial Sciences. He then came to the USA to continue graduate studies in Actuarial Science. He was the first Bangladeshi in North America to become an Actuary. Nasim has been very active in mainstream public and political activities. Governor James E. McGreevey appointed him to the New Jersey Governor's Asian American Commission in 2003. Professor Jahangir Sultan is the Gibbons Professor of Finance at Bentley College, and Founding Director, of The Hughey Center for Financial Services/Trading Room Bentley. His research interests include topics such as foreign exchange exposure management, hedging, international portfolio diversification, closed-end country funds, country risk analysis, effects of political risk on financial markets, financial liberalization in emerging economies, modeling volatility using GARCH, insider trading, and program trading. Has 18 articles published or forthcoming in the Journal of Financial and Quantitative Analysis, Journal of International Money and Finance, Journal of Financial Engineering, Journal of Financial Research, Journal of Business Finance and Accounting, Journal of Applied Financial Economics, Real Estate Review, Journal of Futures Markets, Open Economies Review, Pacific Basin Capital Markets Research, Review of Research in Banking and Finance, the Chicago Board of Trade Working Paper Series, and Columbia University Working Paper Series. Received grants and awards from the Atlanta Fed, Columbia University, the Chicago Board of Trade, The Asian Development Bank, The Thai SET, USIA, and Bentley College.

Our senior advisors Akther Ahmed is Vice President of Worldwide Alliances and Corporate Accounts for TATA Consultancy Services. Reporting to CEO, Akther is responsible for marketing & technology alliance strategies as well as field operations. In addition, Akther manages over $1.5 Billion in revenue from Key Corporate Accounts and Partnership leveraged deals. Prior to TCS, Akther held various management positions at Microsoft in Business Development, Sales, and Corporate Strategy. Akther led Microsoft's India strategy that was blessed by Steve Ballmer and currently being executed. Prior to Microsoft, Akther was co-founder and CEO of Xavient Technologies – a venture backed Services firm focusing on high-tech manufacturing vertical. Prior to Xavient, Akther was Vice President of Sales for Credence Systems Memory Division. Akther successfully expanded into Asia and grew the division from $25Mil to $150Mil within a year. Akther came to Credence via acquisition of EPRO -a privately held company in the Semiconductor equipment space. As Vice President of Sales and Operations, Akther led EPRO's turn around strategy that led to a very successful acquisition by publicly held Credence. Before EPRO, Akther held various engineering positions at Intel Corporation. Akther has a BS and MS in Electrical Engineering from Texas A&M University. He also holds an MBA from the Wharton School. Masud Khan is an international corporate attorney. His experience spans 15 years in corporate and international law and business. He was a partner in a large US Mid-Western law firm (Reinhart Boerner Van Deuren s.c.), where he structured and closed hundreds of US and cross-border M&A transactions. Masud has acted as counsel for various Fortune 500 companies and worked with US lenders in managing capital for his clients. He has also worked with private equity, leveraged buy-out, venture capital and mezzanine capital funds for acquisition and start-up capital. He has structured sales and distribution channels in Asia, Middle East, Latin America and Europe for his US clients and represented international clients in deals involving US assets. Masud focuses his practice on M&A including cross-border transactions, general US corporate law, business negotiations, US export and import laws, international trade and distribution and agency law. Masud is a shareholder in and past general counsel of Alliance Federated Energy, LLC, a US company which has entered into an alliance with the Lineng Group in the Shandong Province, China to build a 1600 MW power plant in such province. He has written various articles and spoken at various seminars on international transactions. He is a past-director of the Milwaukee World Trade Association, the international arm of the Milwaukee Chamber of Commerce. He is a member of the State Bar of Wisconsin, International and Business Practice Sections. He has co-authored the International transactions chapter of the State Bar of Wisconsin Business Advisor publication “Commercial and Consumer Transactions.

Our investment strategy Multi sector fund Growth focus Hybrid Private Equity Talented ideas and teams Our observations Our strategy for our fund Local market characterized by small deals However many examples of high growth Limiting factor – talent, capital, access Corporatization at nascent stage Multi sector focus Broad initial scan - filter to best opportunities Actively seek ‘roll up’ opportunities Filling clear gaps in MNC partners Significant growth in private & public markets Board representation in public companies with minority stakes starting to drive change PE, VC, PIPE investments Set minimum bar for governance and transparency Businesses have been deprived of risk capital limiting their ability to grow Limited global perspectives & market access A large population of 150mn people, whose consumption of goods rapidly increasing Target growth sectors, with strong domestic demand Target sectors where strong opportunities for entry into foreign markets yet to be exploited Shift in management  founder to child New generation internationally educated, many ideas, hungry to grow Ideas exceed talent and capital Significant DD on management teams Augment local teams with global talent

How we have structured our PE team Investment Committee Senior Advisors BD Policy Council Audit team Private equity Legal counsel Validate valuation and approve deals Introductions Potential deal co-investors JV partners for portfolio co. Potentially limited partners in Private Equity funds Meet quarterly, involved in all deals Facilitate deal flow Double check due diligence Subject matter experts Interim CEO / CFO Portfolio co. sponsor to external investors Meet monthly, involved on a deal by deal basis Provide legal guidance Deal structure SEC filings Investment disclosures Pressure test portfolio company governance plan Provide access to local policy makers Act as reference check Meet monthly, involved on an as needed basis Review internal controls Create and track fin. and op. dashboard vs. targets Prepare 3rd party independent financials Meet weekly, involved in all deals Deal team Source deals Conduct due diligence Build 180 day plans Take board seats Support ongoing op. improvement Structure deal Set up fund repatriation

Financial engineering Our value proposition to portfolio companies Global access, international joint ventures, financial engineering, operating improvement Operating improvement Global market access Leverage senior advisors and the NRB network for access to Multinationals Customers Vendors Assets Technology Foreign legislators Focus on North America Europe Middle East Pan Asia International Joint Ventures Focusing on New markets for core products Access to complementary products and additional elements of the value chain Partnering with Leading players in rapidly developing economies Multi-nationals with South Asia focus Optimizing the capital structure To meet long term business objectives Alignment of management and shareholder objectives Maximization of equity returns Obtaining the best debt package Negotiating favorable bank covenants Preparation for exit Engagement from Day 1 Board seats Independent performance tracking Hands on involvement in ops & strategy Access to dedicated best in class resources Experts as mentors Interim CEO / CFO Policy makers to remove roadblocks Commitment to share upside Results driven incentives for senior teams

Corporate Advisory Assessing and fulfilling your business needs….putting ourselves in your shoes Strategic Review Understanding your vision and devising a tailored long term solution Review of all business segments, ‘inside out’ and ‘outside in’ view, assessing your financing and strategic needs, refining your business plan Valuation of your business benchmarking to international pricing comparables Information Memorandum Marketing Due Diligence Selection & Negotiation Legal & Regulatory Preparation of information memorandum Detailing all information an investor needs to make an informed offer for investment Presenting your business as a sellable investment proposition Showcasing the investment opportunities – finding a long term partner aligned to your needs A tailored and targeted marketing effort to ensure we find an investor which meets your long term needs Generalist investor vs sector focused investor Ensuring your team and other professional advisers are prepared for a rigorous process We will coordinate your team, your accountants, lawyers and other advisors to ensure all information is at hand for prospective investors Coordination of management presentations to potential investors We will coordinate, advise and help you select your favored investor We will coordinate interviews and meetings with your prospective investors We will negotiate and advise you on the best deal for you We will coordinate your legal advisers and negotiate the legal documentation on your behalf We will set the scope, review and negotiate to ensure your needs are met We will coordinate advisers to ensure BOI, SEC, Bangladesh Bank and JSCR compliance

Contact Details Ifty Islam, Managing Partner Tel: +88 9114286 (Dhaka) Mobile: Tel: +88 0171 584 0112 (Dhaka) +44 777 9663572 (London) E-mail: ifty.islam@at-capital.com Syeed Khan, Partner Tel: +88 9114286 (Dhaka) Mobile: +88 01730058921 (Dhaka) E-mail: syeed.khan@at-capital.com Zarif Munir, Senior Advisor Mobile: +13124044252 (US) E-mail: munir.zarif@bcg.com

Technology: Can Bangladesh be Asia’s next technology growth story? Asian Tiger Capital Partners, June 2008 www.at-capital.com

Overview • The emergence of India over the past 15 years as a global technology and outsourcing powerhouse has inevitably fuelled enthusiasm from governments in the rest of Asia to follow in establishing vibrant ICT sectors that might similarly transform their economies. But with the exception of the Philippines in outsourcing and selective successes more recently by Vietnam, very few Asian economies have succeeded in replicating the Indian success story. Bangladesh has been no different to many of its Asian neighbours in repeated attempts to kick-start a vibrant IT export sector. In 2002 it was designated a thrust sector by the Prime Minister. But the subsequent growth in the IT sector remained modest as evidenced by current net software exports of around $ 30mn . There is nothing inevitable about Bangladesh’s emergence as a major technology destination in Asia. But we remain of the view that with the necessary reforms in terms of a focused vocational training programme for IT workers, lower internet costs and more effective leverage of the tech diaspora could see net software and ITES export revenues move from around $ 30mn currently to in excess of $ 1bn on a 5 year time horizon. In fulfilling such expectations, we believe there will be significant and attractive FDI and investment opportunities for global corporates and investors

Key Constraints for Bangladesh IT Sector Growth Insufficient E-HR: A lack of IT labour supply with the requisite critical mass of technical skills. While the limited number of engineers and computer scientists graduating from Bangladeshi universities is modest relative to India, perhaps a bigger constraint is the shortage of vocational training institutes to supply workers with the requisite technical and IT knowledge. High Internet Costs: The delayed acquisition of a submarine fibre optic cable relative to other countries in the region was believed to be the primary factor behind one of the highest broadband costs in the region. But even after the introduction of the cable in 2006, internet costs in Bangladesh have been slow to decline. Poor Country Image: Brand Bangladesh is associated with political instability, corruption, natural disasters and poverty. Foreign corporates do not naturally associate the country as one that is a serious tech destination. Lack of credible domestic tech player: there are too many small companies (more than 300 companies in a $ 30mn export sector) and none with the scale or critical mass to meet the demands of major global multinational outsourcing contracts. Ineffective Marketing/Distribution: Weak sales effort/front end in key client markets such as in Silicon Valley. In 2003, Bangladesh, with the support of the World Bank, set up an offshore marketing office in Santa Clara, California with the help of the Bay Area Chapter of the American Association of Bangladeshi Engineers and Architects (AABEA). After two years of efforts from Bangladeshi IT entrepreneurs, government and AABEA members and nearly a million dollars in state funding, the project closed without realizing its objectives of launching Bangladesh as an effective outsourcing destination.

Lack of execution of country strategy There have been multiple Bangladesh IT Policy papers originated by both multilateral organizations as well as the Government ever since the Prof JR Choudhury Committee in 1997. World Economic Forum/INSEAD Network Readiness Ranking illustrates most clearly, Bangladesh’s IT infrastructure investment and reforms have been disappointing. Indeed, the latest 2008 survey shows Bangladesh slipping to 124 out of 127 countries ranked Bangladesh does have some positives in terms of availability of scientists and engineers as well as ease of creating a business and local taxation rates

Strategy and Opportunities Bangladesh can benefit from the rapid increase in wage costs in India's IT sector coupled with the appreciation of the Indian Rupee versus the USD has reduced India's comparative cost advantage. There is a growing shortage of skilled labour in cities like Bangalore along with increased worker turnover/problems with staff retention. The absence of a developed tech sector in Bangladesh clearly reduces the competition for highly skilled workers by technology companies growing there. Bangladesh can benefit from the increasing concern among leading companies about over-reliance on India and to diversify their outsourcing requirements. In the same way that Vietnam benefitted from an “China+one strategy”, other Asian countries can position themselves as “India+one” technology providers. By developing its IT talent pool and breadth of capabilities, Bangladesh can position itself to benefit from “secondary outsourcing” from Indian companies that need an additional labour supply. Also from Indian IT companies looking to expand into a rapidly growing domestic market of 150 mn people. It is our view that Bangladesh has barely tapped the intellectual and commercial capital of the relatively large numbers of NRBs working in the technology sector in the US. What is needed is an effective interface and platform for such NRBs to engage in the Bangladesh technology space. We believe that a number of changes in the global competitive landscape argues that this is not just a “thrust sector” in name but is genuinely at a tipping point with the prospects for explosive growth.

What we need to do The problems for Bangladesh have not been that Government does not know the appropriate steps to create the right enabling environment for a multi-billion dollar IT/Outsourcing sector. Rather it has been a lack of execution, prioritization and focus. We need a focused investment strategy….. A second submarine cable as an aggressive strategy to slash internet costs is critical. the government needs to establish a number of regional technology parks that offer not just cheap telecommunications but shared marketing and management support, a tech expertise/training centre and also genuine business incubators. NRBs can return and create new tech business in partnership with existing local tech companies. But in addition, in the spirit of the latest transnational thinking on leveraging diaspora NRBs in US tech space should set up marketing front ends with the right compensation and incentives to market specific Bangladesh outsourcing/ITES capabilities. “Transnational” NRBs can provide can provide knowledge and technology transfer Local initiatives coupled with leveraging ‘transnational’ NRB knowledge and credibility is critical

A Strategy for Leveraging Bangladesh’s Diaspora AABEANJ Seminar on Outsourcing to Bangladesh Asian Tiger Capital Partners June 15, 2008 www.at-capital.com

Overview – Some Key Themes •The major contribution of Bangladesh’s 4 milion+ diaspora has historically been mainly remittance flows But a major untapped opportunity is to capture the intellectual, commercial and entrepreneurial capital of NRBs. The key issues on the level of engagement should be What? Why? And How? On “What”, we need to move to a Transnational thinking on diaspora whereby NRBs who decide not to move back their home country can play a critical role remotely by providing a credible interface with potential overseas clients, knowledge transfer and partnerships with local companies.

Key themes continued On Why” we need to move away from motivations purely on patriotism, personal connections, intellectual curiosity to one of self interest. The message should be there is lot of opportunity and money to be made back home. On “How” we need strong home country institutions to coordinate diaspora networks as well as “Champions” within the diaspora communities in different sectors. We need to motivate this group of people to encourage broader particpation by diaspora networks Government should proactively set up a ministry responsible for diaspora affairs with a budget to incentivize diaspora engagement both in terms of funding for conferences/networking events, maintaining an NRB database and even fiscal incentives for those who return.

Diaspora Strategy – Some Macro Perspectives Most government initiatives to establish ‘brain gain’networks have failed􀂃 A lot of initial enthusiasm which dissipates. E.g.: Red Caldas of Colombia 􀂃 Major lesson: Expatriate networks need to generate transactions (demonstration effects), people get tired of discussion Why Diaspora initiatives tend to fail? 􀂃 Easy to start: a lot enthusiasm 􀂃 More difficult to maintain momentum: enthusiasm tends to evaporate􀂃 A need to produce win-win situations for everybody

Emerging models to leverage diasporas of highly skilled 1.Top executives model –India Indian executives in major multinationals influenced investmentdecisions to outsource knowledge-intensive operations to India: Technology and R&D outsourcing networks 2. A model of knowledge outsourcing –Armenia Successful Diaspora members who ‘made it’send back outsourcing contracts to firms back home: outsourcing networks 3. Mentoring/ Venture capital model –S Africa, Korea, Taiwan, Israel Managers and owners of European start-up firms of South-African origin work South African start-up to develop and finance commercially viable projects: Venture capital networks

Emerging Models Contined 4. Diaspora as investors –greater China (‘Bamboo network’) Diaspora members know reality of home countries well/have access to risk-mitigation strategies. Personal trust between members of cross-border investor networksreduces transaction costs. 5. Setting new strategic direction/ identification of new opportunities –Israel, Armenia, India Diaspora members identify niches: translate global opportunities into business projects: scanning networks (e.g. ‘Armenia 2025’: four detailed scenarios of Armenia’development, an about $2 mln. study by McKinsey –was done for free thanks to top Mckinsey executives of Armenian origin) 6. Return of talent model –China, Korea Incentives (like special technology parks in China) for the talent to come back: brain circulation networks

How to take advantage of the talent abroad? Networks of expatriates as an opportunity Impact of expatriate talent Policy knowledge and influence: ideas and ability to put them in practice. India –initiating KPO and sustaining reforms in India. Initiate search networks and reforms ‘inside-out’ Technological and other domain knowledge (as a distant third) Capital: Investments and remittances

Diaspora networks as search networks Kuznetzov (2007) has highighted the following key themes: An Archimedean lever to trigger change: as a device to identify and link good exceptions As a device to institutionalize exceptions: a way to sustain change As a problem-solving device: ‘Six Degrees of Separation’ Antennas to build shared strategic vision of the future

Diaspora as an Archimedean Lever As a device to identify and link exceptions: an Archimedean lever to triggerchange Our individual propensity to sustain change follows a familiar Bell curve (normal distribution). Exceptions matter: •the ‘worst’10%: these individuals would not change under any circumstances •the best 10%: ‘sticky people’: those would push change under any circumstances. First movers driven by intrinsic motivation Networks of talent abroad allow to identify the best 10% (‘sticky people’) both abroad and in the home countryand (crucially!) link them together. This creates an Archimedean lever to trigger change Precisely because Diaspora is part of the home country, it can be a powerful vehicle to trigger and promote change in the home country: to promote reform inside-out

Institutionalizing change; domestic institutions As a device to institutionalize exceptions: a way to sustain change Exceptions matter but what about the rest of us? ‘Good enough’40% of other individuals –‘emerging role models’start to link with each other as well. That is about mainstreaming and institutionalization of change Individual champions are indispensable to initiate Diaspora initiatives 􀂙 Capable organizationsin home countries are critical to sustain it 􀂙 A paradox: to utilize Diasporas one needs capable institutions at home 􀂙 Pragmatic initiatives: relying on individual champions to develop institutions

Diaspora as problem solving networks ‘Six Degrees of Separation’: Diaspora networks as problem-solving networks A solution is just ‘two phone calls away’(a rule of thumb of the Mexican network of talent abroad) E.g.: an electronic engineering company in Scotland that design, test and manufacture innovative condition monitoring systems, received, within a day of requesting, a full days advice on how to agree a licensing deal with large US blue chip company at a crucial stage of negotiations. Global Scot network allowed to identify relevant members and experts outside the network the members knew and trusted almost instantly

Constructing a share vision – Lessons from Global Scot 5.Constructing shared vision of the future A shared vision is a long-term strategic vision with which various strata of society can identify with and bet on their future Diaspora members are ideally positioned to trigger shared visionprocesses E.g.: Scotland process to develop a strategic vision of biotechnology cluster. Could have commissioned a report to McKinsey (more expensive but less messy). Instead, a process was initiated where Global Scot members such Chairman of Monsanto played a leading role

Emerging models of mobilizing the Diaspora The challenge is to nourish the following agents: 􀂃A small group of dedicated overachievers is the key: these champions act a springboard for tangible projects 􀂃A small secretariat of paid professional staff serves a system integrator to transform ideas to projects 􀂃Broader network of professionals abroad who participate with ideas, Decision-making power, and (less important) funding.

Conclusions 1.Diasporas can be very useful for home countries but to develop their potential, concerted effort is required. This concerted effort takes time. 2.In the short term, individual champions and tangible success stories (demonstration effects) are the key 3.In the longer-term, institutions of the home countries are the key (Diasporas are not a panacea) 4.Focus on pragmatism: relying on individual champions to develop institutions

Lessons from Evolution Taiwanese Venture Industry Taiwan - Massive foreign education and brain drain in the 60’s and 70’s Industry and financial sector dominated by large firms. Culture of risk-taking and experimentation virtually non-existing Silicon Valley as a role model: successful entrepreneurs from Diaspora and the government decide to promote venture capital industry First venture capital fund is established. Government contributes to equity. Expatriates reallocate to Taiwan to manage the Fund. Diaspora in Silicon Valley open up market Demonstration effect of the success triggers establishment of other funds

Lessons from Taiwan