1. Building Companies in A Global Economy Promod Haque, Managing Partner, NVP Promod.Haque@nvp.com

2. NVP - Actively Partnering with Entrepreneurs to Build Significant Businesses 44 year heritage Managing >$1.8 billion in venture capital Funded over 350 companies Focused on early stage and select later stage IT investments: –Systems (Communications, Enterprise) –Services (Communications, Infrastructure) –Software (Infrastructure, Applications) –Semiconductors & Components –Consumer/Internet Technologies

3. NVP Investment Strategy Early-stage projects with world-class technologies and entrepreneurs Later-stage companies with existing customers, strong sales and top tier management and co-investors “Special situations” with definable, unusual opportunities

4. Selected NVP Success Stories

5. NVP Value Proposition Money Network of Portfolio Companies Experienced VCs with Operating Experience Large VC Firm with History Through Down Cycles Later Stage Follow-On Financing Support Value Added Services: PR, Research, Forums Intl. Business Development

6. The VC Business Model Has Changed Exit Valuations Have Dropped and Are Trending Towards Those of the Early ’90’s Requires Prudent Use of Capital –$15-20 million to build enterprise software company –$30-35 million to build a hardware/systems company –$30-40 million to build a semiconductor company Focus on Capital Efficiency Capital efficient business models are still possible NVP investing in “hybrid” companies and we see this trend continuing

7. Hybrid Investments & Micro-Multinational Companies U.S cannot afford to focus on a U.S.-centric market alone Venture capitalists are leveraging their expertise in other countries to help develop partnerships and channels these companies need to prosper in the global marketplace NVP is definitely seeing more cross-border or “ hybrid ” investments from day one NVP rarely looks at investing in new private companies unless they have some form of operations overseas Early-stage private companies must take an overall multinational and global approach to doing business

8. NVP Hybrid Investments 30% of NVP portfolio companies have operations overseas, and that figure is rising Six of the most recent companies in which NVP has invested (in the past 18 months) are considered to be "hybrid" or "cross- border" investments Many of these companies are focusing heavily on India as a strategic market or have operations in India Acquired by Acquired by

9. What NVP Looks For in Companies Breakthrough projects with world-class technologies Passion and vision of entrepreneurs –Proven track record? –Prior NVP interaction? –High domain expertise Marketplace opportunity Unique value proposition to the customer Customer validation and traction Capital efficiency

10. Key Attributes of Disruptive Technology Companies 1.Founding/management teams that shape opportunities, execute deals and achieve revenue. 2.Innovative core development teams that have developed distinctive technologies based on customer needs 3.Technology discontinuity/value proposition aligned, solving a significant problem distinctively 4.Secure blue chip customers 5.Understand how to develop and leverage strategic alliances

11. Characteristics of a Successful Founding Team Skill sets of the founders are balanced and complimentary Ability to articulate their vision to investors, employees and customers Understand their limitations and are willing to be accountable to a board of directors Focused, tenacious, persistent and patient in their execution Willing to enlarge the “inner circle” as the company grows over time

12. What We Look For In Entrepreneurs “Conventional wisdom paints the entrepreneur as a driven, undisciplined romantic, operating in a frenzy of energy. With a little luck, he achieves his goal just before he goes under. On the contrary, the typical successful entrepreneur is a mature and careful person who fearfully recognizes that there’s much more he doesn’t know about his new business than he’d like. He’s thirsty for help from any sensible and credible source. He’s in a hurry, but only because time is precious. And he knows that cash flow is king.” James McManus Marketing Corporation of America

13. What’s Hot IP Managed Services –Revenues from IP VPN services in the US will rise from $2.9 billion in 2004 to $8.1 billion in 2009 End-to-End Custom ASIC Solutions –Predictable, reliable and cost-effective alternatives to traditional chip design and supply chain models enable more companies to use an ASIC approach for their mainstream designs VoIP Infrastructure –The global market for VoIP will reach $82 billion in 2005 and $196.5 billion by 2007 IPTV –Rapid advances in broadband access and compression technologies will drive down delivery costs exponentially Service Oriented Architecture –Industry analyst IDC forecasts SOA software market to hit $1.2 billion in 2005 and reach $10.9 billion by 2008 Source: In-Stat; Gartner; Insight Research

14. Thank You! www.nvp.com Questions?

15. Contact Information Promod Haque, Managing Partner –+1 650 321-8000 –Promod.Haque@nvp.com Norwest Venture Partners 525 University Avenue, Suite 800 Palo Alto, California USA 94301 www.nvp.com