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Confidential

Investments opportunities under uncertain market conditions

Aaron Mankovski

Managing Director

February 4, 2001

Confidential

Crisis

=

Opportunity

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Back to the basics

Management Market Business model Competition Technology Valuation Financing IPO, Mergers and Acquisitions

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Management Team

Business experience Technology background International experience Management experience Customer orientation Team working together openness

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The Market

The need Market size Potential market for the company (real) Location

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The Business Model

The need and the value proposition The customer profile REAL revenue model Price/performance – Price/”pain” Potential revenue forecast – reality The sales model (direct, OEM etc.) Sales Cycle Implementation and cost After sales support

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Competition

Who else is in the field (crowded market!?) The competitive edge Time and money to market

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Technology and Intellectual Property

Barrier to entry Time and money to market The team skills Development plan Patents Capital equipment Suppliers and long lead items

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Financing

Money should be raised when it is possible NOT only when it is needed

Financing amount should provide 18-24 month of operations (minimal revenues)

Budget planning – “lean and Mean”

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Valuation

The markets conditions have changes the valuations in the private market

Trying to maximize valuations is distractive

Do not price yourself out of the market The market will set the company value High value in private round is not a real

achievement

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The public markets – Back to reality

No IPO market in the short run Qualifications for IPO – back to the basics IPO values will go back to the mid 90’s M&A “Currency” will effect transactions

Build to last not for sale!!

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