The investment in Proton was a late-round, “pre-IPO” investment that was sourced by a limited partner. The perceived investment merits were a strong management team, an intellectual property and competitive/technological advantage, limited downside due to a strong base business model, large upside potential, and multiple exit strategies. The perceived investment risks included the uncertain prospects for commercialization of fuel cells, technology risk and competition.

Fund I purchased Series C Preferred Stock in Proton. The Series C converted automatically into common shares upon completion of an initial public offering on a 1:1 basis. Fund I held 3.0% of the Series C Preferred Stock. Proceeds from the Series C round were to fund approximately two years of working capital needs. Proton successfully completed its IPO in September 2000.