General. CVF's investment objective is to achieve superior returns by capitalizing on its experience, capabilities and professional network. CVF seeks to identify promising companies for investment that will help shape a given industry as well as provide support to help these companies succeed. CVF expects to use its proximity to and relationships within Cornell University to help it achieve its investment objectives. Generally, CVF focuses on investments in companies with large market potential that are managed by experienced and resourceful entrepreneurs. CVF employs a "hands on" approach to help guide portfolio companies past entrepreneurial and industry obstacles that are common with developing companies.

Criteria. CVF expects to invest primarily in companies with an underlying technology or product that stands to significantly impact a well-defined market segment in a given industry. CVF's specific criteria for investing in a company generally will include:

• Strong and committed management team: CEO and management team with proven track record and demonstrated capability to grow companies. In its due diligence evaluations, CVF will try to determine whether, regardless of the merit of the technology or the technical qualifications of the founders, the management team has the requisite operational skills and experience to run an early stage venture. An important qualification will be management's commitment to the venture, which may be evidenced by, among other things, personal investment of initial capital, minimal cash salary requirements, restrictive employment contracts and a willingness to be open to suggestions from CVF's management representative on the board of the portfolio company and CVF's advisors. CVF will also actively participate in the building out of management teams of its portfolio companies as appropriate.
  
• Innovative technology or product: At least one proprietary asset of the company that represents a revolutionary leap (i.e., disruptive or breakthrough technology) or a critical incremental improvement that addresses an important unmet market need.
  
• Strong IP protection: Patent-protected core technology in the portfolio company's intended commercial application.
  
• Strong technical team: Significant technical know-how and ability to continue to innovate/evolve assets.
  
• Significant market potential: Product or technology positioned within large commercial sectors where CVF believes market penetration can be rapidly achieved with the potential for significant profit margins. Scalable platform technologies that have multiple significant market applications being very attractive.
  
• Early mover advantage/limited competition: Product or technology's innovation presents opportunity to establish early mover advantage in emerging market with limited competitors and substantial barriers to entry.
  
• Founders: Commitment of founders to the portfolio company's growth prospects and flexible growth strategy.
  
• Investment Geography: CVF will focus its investment activities primarily in companies with significant Cornell connections (regardless of location) and/or that are located in upstate New York. We believe that this investment focus will help foster a vibrant entrepreneurial community in the region and provide entrepreneurs with access to CVF's expansive network of resources and contacts.

Seed Stage. While CVF's primary focus is on early stage and follow on rounds of financing, it is expected that we will allocate a portion of our investment focus on seed stage opportunities. The predominant number of seed stage companies will be organized by persons affiliated with Cornell and/or will have as their principal asset technology sourced from Cornell. However, technologies generated from other major research centers in upstate New York may also be considered. Such seed stage investments generally will be made alongside other established venture capital firms with whom we have investment and business relationships.