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1www.safeguard.com © 2017 Safeguard Scientifics, Inc. All rights reserved.

The MicroCapConferenceOctober 5, 2017


The Safeguard Advantages

Strong Portfolio of tech‐enabled companies across several verticals with full value much higher than reflected in current share price

Talented Team with deep domain expertise and operating experience

Flexible, Multi‐Stage Capital Deployment Approach that is not constrained by the typical Limited Partner fund structure

Scalable Operating Model to accommodate a larger portfolio of companies

Extensive Network with access to early‐ and growth‐stage technology opportunities including Enterprises, Advisors, Accelerators and Universities


Leadership Team

Stephen T. ZarrilliPresident and CEO

Jeffrey B. McGroartySVP and CFO

Brian J. SiskoEVP, Managing Director and COO

Martina F. AufieroSVP and Managing Director

Gary J. Kurtzman, MDSVP and Managing Director

Erik B. RasmussenSVP and Managing Director

Steven J. Grenfell, CPASVP and Managing Director, Operations

John E. Shave III, IRC SVP, Investor Relations and Corporate Communications

Scott A. Snyder, PhDSVP, Managing Director and CTIO


Capital Deployment Objectives


Target Markets

eCommerce will be $523B in U.S. and $4T worldwide by 2020 [Source: eMarketer]Web‐influenced retail sales will be $1.6T by 2020 [Source: EY] Digital ad spend will be $333B by 2020 [Source: eMarketer] Personalization economy will be $97B by 2020 [Source: Accenture]

FinTech to capture 10% to 40% of banking revenue by 2025 [Source: McKinsey] $12B invested globally in FinTech, approx. 50% of that in U.S. [Source: CBInsights] Corporate Venture Arms of Financial Service Companies continue to be strong investors

$3T U.S. market (18% of GDP), approx. 1/3 to be waste [Source: CMS] Healthcare IT market to surpass $230B by 2023 [Source: Global Market Insights] Chronic diseases will affect 164M Americans (49%) of population by 2025 [Source: RAND Corporation]

HEALTHCARE DIGITAL MEDIA

FINANCIAL SERVICES


Market Opportunity in Emerging Technologies

IoT will have potential economic impact of $3.9T to $11.1T by 2025 [Source: McKinsey] IoT devices will reach +46B in 2021 [Source: Juniper] B2B spending on IoT technologies will reach $267B by 2020 [Source: Boston Consulting Group]

Big Data/Analytics market will be $203B by 2020 (11.7% CAGR)[Source: IDC] AI‐based systems market will grow from $8B in 2016 to $47B in 2020 [Source: IDC] All major tech giants are investing heavily (i.e. Google, IBM, Microsoft, Amazon, Facebook, Apple, Baidu)

Cyber‐security market will grow from $105B in 2015 to $182B in 2021 (9.5% CAGR) [Source: Zion Market Research] Global cyber‐security spending will exceed $1T from 2017 to 2021 [Source: Cybersecurity Ventures] Blockchain for Enterprise Applications Market to reach $19.9B by 2025 [Source: Tractica]


Partner Companies: Overview


Partner Companies: By Revenue Stage


Aggregate Partner Company Revenue

9


Partner Company: Trice Medical

Initial CapitalDeployed July 2014

Total CapitalDeployed $10.2M

SFE Primary Ownership 25%

Headquarters King of Prussia, PA

Revenue Stage Initial Revenue

Elevator Pitch Pioneered and evolved a fully integrated camera‐enabled technology that provides a clinical solution optimized for the physician’s office.

Partnerships/Customers

OpenClinica Enterprise, TikaMobile

MarketOpportunity

Addressable market opportunity is approximately $10B, including 32M office visits for related knee and shoulder pain and 8M+ MRIs annually in the U.S. alone.


Partner Company: Transactis

Initial CapitalDeployed August 2014



Headquarters New York, NY

Revenue Stage Expansion

Elevator Pitch Leading provider of electronic billing and payment solutions.


Capital One Financial Corporation (NYSE:COF), Fifth Third Bancorp (NASDAQ:FITB), PNC Financial Services Group (NYSE:PNC), TD Bank Group, Walletron, Wells Fargo & Company (NYSE:WFC).

MarketOpportunity

Fewer than 25% of bills are presented electronically in the U.S. The channel‐oriented Transactis model features up‐to‐date SaaSinfrastructure and is positioned to grow with an EBPP market that is expanding at a compound annual rate of 16%, according to a 2013 report by marketing consultant Latente Group.


Partner Company: MediaMath

Initial CapitalDeployed July 2009



Headquarters New York, NY

Revenue Stage High Traction

Elevator PitchGlobal technology company that is leading the movement to revolutionize traditional marketing and drive transformative results for marketers.


Facebook, IBM, iSocket, Microsoft, Oracle, Time Inc. and Yahoo!

MarketOpportunity

Digital ad spending is expected to grow at a CAGR of 14% between 2015 and 2018 according to eMarketer.


Partner Company Holdings at 6/30/17

Stage Category Acquisition Year

Primary Ownership%

Carrying Value Cost

Partner Companies: (in millions) (in millions)AdvantEdge Healthcare Solutions High Traction Healthcare 2006 40% $5.0 $16.3Aktana Initial Revenue Healthcare 2016 25% 5.6 9.7Apprenda Expansion Other 2013 29% 9.4 22.1Brickwork Initial Revenue Digital Media 2016 20% 3.8 4.2Cask Data Initial Revenue Other 2015 31% 7.1 11.6CloudMine Initial Revenue Healthcare 2015 47% 4.3 7.5Clutch Holdings Expansion Digital Media 2013 43% 9.6 16.3Full Measure Education Initial Revenue Digital Media 2015 42% 7.2 11.0Good Start Genetics High Traction Healthcare 2010 30% - 19.0Hoopla Software Initial Revenue Digital Media 2011 26% - 4.8InfoBionic Initial Revenue Healthcare 2014 40% 2.6 18.5Lumesis Initial Revenue Financial Services 2012 44% 1.9 6.3MediaMath High Traction Digital Media 2009 21% 4.3 25.5meQuilibrium Initial Revenue Healthcare 2015 32% 4.1 8.0Moxe Health Initial Revenue Healthcare 2016 32% 4.3 4.5NovaSom High Traction Healthcare 2011 32% 1.8 23.1Pneuron Initial Revenue Financial Services 2013 35% - 8.5Prognos (fka Medivo) Expansion Healthcare 2011 35% 4.9 11.6Propeller Health Initial Revenue Healthcare 2014 24% 7.9 14.0QuanticMind Initial Revenue Digital Media 2015 23% 6.7 9.8Sonobi Expansion Digital Media 2015 22% 6.2 8.4Spongecell Expansion Digital Media 2012 23% 7.8 18.0Syapse Initial Revenue Healthcare 2014 26% 4.4 13.3T-REX Initial Revenue Financial Services 2016 24% 5.6 6.0Transactis Expansion Financial Services 2014 24% 10.1 14.5Trice Medical Initial Revenue Healthcare 2014 25% 5.1 10.2WebLinc Expansion Digital Media 2014 38% 8.8 14.0Zipnosis Initial Revenue Healthcare 2015 25% 4.8 7.0Total TOTAL: $143.3 $343.7


Success Stories


NOLs and Capital Loss Carryforwards


Equity Incentive Compensation

Key Attributes• Structured to align with shareholder interest

• Consistent with carried interest methodology

• Two‐thirds of vesting based on performance criteria

Performance Vesting• Upon achievement of cash‐on‐cash return thresholds (2.0x‐3.0x)

on pools of capital deployed

Insider Ownership• Ownership requirements of 2x‐4x base salary for senior management


Why Own Safeguard (NYSE:SFE)?

Access to early‐ and growth‐stage technology companies

SFE currently trades at significant discount to net asset value

Full value of partner companies not reflected in share price

Team has deep domain expertise and operating experience

Strong alignment of interests with shareholders

18www.safeguard.com © 2017 Safeguard Scientifics, Inc. All rights reserved.18

John E. Shave IIISENIOR VICE PRESIDENT,INVESTOR RELATIONS &CORPORATE COMMUNICATIONS

P 610.975.4952E [email protected]

Request a Meeting: www.safeguard.com/RequestAMeeting


Statements contained in this presentation that are not historical facts are forward‐looking statements which involve certain risks and uncertainties including, but not limited to, risks associated with our ability to make good decisions about the deployment of capital, the fact that our partner companies may vary from period to period, our substantial capital requirements and absence of liquidity from our partner company holdings, fluctuations in the market prices of our publicly traded partner company holdings, competition, our inability to obtain maximum value for our partner company holdings, our ability to attract and retain qualified employees, market valuations in sectors in which our partner companies operate may decline, our inability to control our partner companies, our need to manage our assets to avoid registration under the Investment Company Act of 1940, and risks associated with our partner companies, including the fact that most of our partner companies have a limited history and a history of operating losses, face intense competition and may never be profitable, the effect of economic conditions in the business sectors in which our partner companies operate, and other uncertainties as described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10‐K. As a result of these and other factors, the Company’s past financial performance should not be relied on as an indication of future performance.

Safeguard does not assume any obligation to update any forward‐looking statements or other information contained in this presentation.

All data current as of June 30, 2017.

Forward‐Looking Statements

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