1. Copyright 2005, Alliance of Angels Alliance of Angels: Presentation Guidelines Last Updated Monday, August 1, 2005 Aaron Coe, Program Manager Edward Hansen, Program Manager Alliance of Angels http://www.allianceofangels.com/startupshttp://www.allianceofangels.com/startups

2. Copyright 2005, Alliance of Angels Alliance of Angels: MIT Enterprise Forum ~ April 7, 2005 Aaron Coe, Program Manager Alliance of Angels 2004-05 Preston Gates & Ellis Fellow acoe@allianceofangels.com http://www.allianceofangels.com Providing the Venue for Angel Investors and Startup Companies to Meet Introduction

3. Copyright 2005, Alliance of Angels The Problem Define the problem and WHO has this painDefine the problem and WHO has this pain –Graphs –Pictures – Tell of a Problem Scenario that sets up a Usage case for your product or service The Problem

4. Copyright 2005, Alliance of Angels The Solution Overview of primary product or service that will solve the problem The Solution Use multiple slides if necessaryUse multiple slides if necessary Do not exceed time limitsDo not exceed time limits Product Photos, Screen shotsProduct Photos, Screen shots Logical Flow and Architecture diagramsLogical Flow and Architecture diagrams Short list of Feature/BenefitsShort list of Feature/Benefits Be clear about the status of product development

5. Copyright 2005, Alliance of Angels Traction Slide Founded in 2003Founded in 2003 3 full-time employees, 3 part-time3 full-time employees, 3 part-time Released v.1 fall of 2004Released v.1 fall of 2004 15 Beta Users, 10 Paying customers15 Beta Users, 10 Paying customers Signed up 3 channel partnersSigned up 3 channel partners Received ABC certificationReceived ABC certification 1 provisional Patent filed1 provisional Patent filed Licensed X patented technology from Y companyLicensed X patented technology from Y company Traction

6. Copyright 2005, Alliance of Angels Market Size Build the number from the ground upBuild the number from the ground up Total Addressable MarketTotal Addressable Market Use drivers relevant to your productUse drivers relevant to your product Show the different segmentsShow the different segments –Pie Graph works well –Explain how you prioritize the segments “This is our initial market” (speak to why)“This is our initial market” (speak to why) If you must use 3 rd party figures, cite the sourceIf you must use 3 rd party figures, cite the source Market Size

7. Copyright 2005, Alliance of Angels Customers Current CustomersCurrent Customers –85 startup companies like the following –All companies paid full price of $0.00 per visit Customers Potential CustomersPotential Customers Early stage technology companies raising between $250K to $3MEarly stage technology companies raising between $250K to $3M –Your Company, Inc. –His Company, Inc. –Her Company, Inc.

8. Copyright 2005, Alliance of Angels Revenue Model Licensed SoftwareLicensed Software Hosted Solution, Monthly Fee + 2% of all transactions booked through our systemHosted Solution, Monthly Fee + 2% of all transactions booked through our system We Sell Widgets; Direct and Through a ChannelWe Sell Widgets; Direct and Through a Channel Time and MaterialsTime and Materials Revenue Model Cost $650 Distributor $1750 Retailer $2000 Customer $2500 Gross Profit $1100 Avg Customer Buys 24 Widgets per year 20% 10% Gross Margin >60% Average Customer is worth $60,000 in annual Revenue

9. Copyright 2005, Alliance of Angels Sales Cycle How do you sell your product? Direct and/or Channel Sales If Direct, How many sales people?How many sales people? How long does it take to close a deal?How long does it take to close a deal? Who is the key decision maker? (Especially if that differs from the key user)Who is the key decision maker? (Especially if that differs from the key user) If Channel, Who are the partners?Who are the partners? How many are required?How many are required? How are the territories divided? (If relevant)How are the territories divided? (If relevant) Sales Cycle

10. Copyright 2005, Alliance of Angels Competition Indirect CompetitionIndirect Competition –Summarize the current alternatives (other technologies or types of products) Direct Competitors (logos are easier to read than text)Direct Competitors (logos are easier to read than text) –List competing company 1 and an analysis –List competing company 2 and an analysis –List competing company 3 and an analysis Use a matrix if possibleUse a matrix if possible Competition

11. Copyright 2005, Alliance of Angels Partners Pay Sponsorship for MBA fellowsPay Sponsorship for MBA fellows Contribute to deal flowContribute to deal flow –Commitments renewed on an annual basis In-kind sponsorIn-kind sponsor Public Relations StrategyPublic Relations Strategy Partners

12. Copyright 2005, Alliance of Angels Management Team Name, PositionName, Position –Prior Company, Position (VP or above), Years Name, PositionName, Position –Prior Company, Position (VP or above), Years Name, PositionName, Position –Prior Company, Position (VP or above), Years Name, PositionName, Position –Actively recruiting Management

13. Copyright 2005, Alliance of Angels Advisory Board Name, Area of ExpertiseName, Area of Expertise –Company, Position (VP or above), Years –Prior Company, Position (VP or above), Years Name, Area of ExpertiseName, Area of Expertise –Company, Position (VP or above), Years –Prior Company, Position (VP or above), Years Name, Area of ExpertiseName, Area of Expertise –Company, Position (VP or above), Years –Prior Company, Position (VP or above), Years Name, Area of ExpertiseName, Area of Expertise –Company, Position (VP or above), Years –Prior Company, Position (VP or above), Years Advisory Board

14. Copyright 2005, Alliance of Angels Five Year Projections (Millions, US) Assumptions: –In 2006, $__ per sale –In 2006, __customers –2006 market share: __ % –In 2006, __% from new sales; __% from recurring –U.S. market only –Does not include future product extensions This is an example for demonstration purposes only Financial Projections Global Assumptions Legislation passes in year 2 Year 3 we get certification to market in the U.S. Financials

15. Copyright 2005, Alliance of Angels Funding Requirements Prior Funding: - $ from founders, $ from outside investors, $ grants Current Round: -Seeking $1 million ($500,000 raised) -Pre-money valuation: $2 million (range will be fine) Use of Funds: -Finish v 2.0 Prototype -Launch in xxx market -File patents Future rounds: - Series B of $ million expected in early 2004 - Series B of $ million expected in early 2004 Exit Strategy: -Acquisition (perhaps Microsoft, IBM or Nike) The Offer