V. NEW LEAF VENTURE PARTNERS INVESTMENT STRATEGY New Leaf’s investment strategy is differentiated in the venture capital industry in terms of its sector focus, specific approaches within each sector, and the depth of experience and long-term track record that supports each element of the strategy. NLV-III will be invested in a diversified portfolio across four sectors: a primary focus on Biopharmaceuticals and Information Convergence, and a secondary focus on Medical Devices and Biological Research Tools & Infrastructure. The Fund Managers believe that these are the sectors within the healthcare technology industry where, with a targeted and specific sector strategy, there is the potential to generate attractive returns within a time frame consistent with the goals of investors in a venture capital fund. Importantly, the drivers behind the opportunity for value creation, major risk factors, capital requirements, timelines, and universe of potential acquirers in each of these sectors are distinct, and thus a portfolio constructed with investments with a combination of these will benefit from this diversification. The Fund Managers will invest the Fund in a diversified portfolio composed of an estimated 24 - 28 companies that will be predominantly domiciled in the U.S., but could include a small number of companies based in Western Europe or Canada. The Fund Managers intend to serve on the boards of directors for the majority of the companies in the portfolio and will generally seek to establish ownership positions in companies that are large enough to allow them to exert considerable influence on the company’s strategies, budgets, financing plans, operating objectives, management team composition, and paths to exit. Consistent with past transitions between funds, the Fund Managers have evolved the investment strategy for NLV-III to reflect the team’s view of where the most attractive opportunities will exist during the life of the Fund. The investment strategy for N