Capital Assessment for Clean Energy Distribution

Clean Energy Initiatives Involve A Chain of Events With Multiple Player and Funding Requirements
Fuel

Aftersales Service

R&D and Design

Consumer Finance

Distributor Finance

Sales

Manufacturing

Marketing

Frontier Markets is a Service Focused Last Mile Distribution Company for Clean Energy Products

Market Research Bottoms Up Demand Studies

Sales to Customer Ongoing sales Through Dealers, Agents, Shop Keepers Educational Marketing

Customer Service Ongoing Sales Servicing

Data Analytics Back End Systems Collect Customer Data Analytics Drive Disciplined Business Decisions

Customer Feedback Happy and Satisfied Customers Feedback to Manufacturers to Improve Design

Product Testing and Product Pipeline

Constant Customer Interaction

FM Investment History
Year Investment Stage Investment Type 2009 Concept Stage and Pilots Self Funded Grants 2010 Start-Up Capital Equity Grants 2011 Seed Round 2012 Bridge Financing Equity Grants 2013 Series A 2014 Scale

Equity Grants

Equity

Debt

Type of Ownership Types of Investors

Founder Shares Founders Foundation

Convertible Equity Angels

Equity Preferred Shares

Convertible Equity

Preferred Shares Social Investors

N/A

Incubation Social Investors Early-Stage VC Foundations Investors

Banks

Business in Progress
Build Reach
500000 400000 300000 200000 100000 0

Sell

Develop

Service Center

6000
Clean Energy Products People Household MIS System

Partner

Map

Expand
5 New Districts

Create

Branded Energy Companies

Scale Plans

MicroFranchisees

30

Capital Risks and Mitigation Strategies

Type of Capital Grants Source Foundations Government Competitions Stage Early Stage Pilots Research Risk Level High Risk Mitigation Strategy Clearly Designed Concepts, Clearly Defined Assumptions, Partners, Capturing Information Tangible Financials, Milestones, Market Validation Revenue Generation, Refined Products, Growth Plans, Milestones, Operational Break Even Volume Projections, LOC Terms Scale Planes, Replication, Government Roles

Convertible Notes

Angels Early Stage Incubation Investors Social Investors

Early Stage Proof of Concept Mid stage Revenue Generation Growth Stage Replication

High Risk

Convertible Debt (CCD) Equity

Medium Risk

Investors

Medium Risk

Line of Credit Debt

Banks Manufacturers Banks

Scale Scale

Medium Risk Low Risk

The Right Capital Combination Can Lead to the following Results

Build
Service Center

1200000 1000000 800000 600000 400000 200000 0

Reach

Sell

Develop

150

3,000,000
Clean Energy Products

People

Robust Customer MIS System

Partnered

Mapped

Expand
Asia

Create

Branded Energy Companies

35

45,000
Micro-Franchisees

Global Plans