Raising the Money l Family and Friends £10K l Bank loan£100K l Angels£250K l VCs£2M l IPO£20M

VC Criteria l Global sustainable under-served market need l Defensible technological advantage l Strong management team l Believable Plans l 60% IRR

Writing the Business Plan Executive Summary and funding requirement 1. Concept 2. The Market 3.1 Global market size and need Sustainability Competition Marketing plans 4. The Team 4.1 CEO CTO 44.3 CFO 4.4 VP Sales and Marketing

Writing the Plan The technology and its IPR 6. Summary of plans 6.1 Development plans Methodology Milestones 6.2 Marketing 6.3 Sales and distribution 6.4 Quality and industry standards 7. Financials

Writing the Plan - 3 Appendices: Financial model Key staff Letters of support Correspondence re IPR Full development plan Full marketing and sales plan Examples and brochures

Valuation l Estimates of future yield – Risk assessment l Market l Assets l Ratio on current revenue l Ratio on current profitability l DCF l NPV of profitability l Probability based methods

Winners and Losers l Winners – Communication & Communities – Branded goods – “Bricks and Clicks” – Specialty goods “specialty” goods l Losers – Content is NOT king – Portals – Get-rich-quick sites – Smartcards, VoIP, interactivve TV

Futurology l Integration of the Infosphere –.NET l Thesis/Antithesis/Synthesis l Better ways to trade

Integration of the Infosphere l.NET/Hailstorm ( – Moving functionality into the network Software as Service – Disintermediates ISPs, Telcos – SOAP & RPCs l 7 big functions – Identity ( MS Passport), – Payment (MS Wallet) – Diary(MS Outlook) (EPG) – Message delivery (Hotmail, IM, Chat) – Address book/ contact manager (Buddy lists, Outlook) – Archival Storage – Search /DRM/Content management/ Favourites/History

Integration of the Infosphere myAddress - electronic and geographic address for an identity myProfile - name, nickname, special dates, picture myContacts – electronic relationships/address book myLocation - electronic and geographical location and rendez-vous myNotifications – notification subscription, management and routing myInbox - inbox items like and voice mail, including existing mail systems myCalendar – time and task management myDocuments – raw document storage myApplicationSettings - application settings myFavoriteWebSites – favorite URLs and other Web identifiers myWallet - receipts, payment instruments, coupons and other transaction records myDevices – device settings, capabilities myServices –services provided for an identity myUsage – usage report for above services

Integration of the Infosphere l New services and devices – Smart consumers Dynamically bid for bandwidth Toasters bid for electricity – ipV6 – Smart TVs, white goods, cars, toasters, toilets, trashcans “do you want wholeweat Bagels for the creamcheese?” – Home nets – P2P stuff – death of copyright – Privacy issues – Infrastructure capacity issues

Thesis/Antithesis/Synthesis l Thesis: – Unlimited communications and publication l Antithesis – Entropy 99% of everything is crud (Theodore Sturgeon) – (Jargon File v4.2.2) l Synthesis – No good solutions at present Search engines Personal Agents – HAL

Better ways to trade l Networks effects – Single marketplace for each class of goods – Markets illiquid for large trades, inefficient for small trades – What is a “fair market”? l Clearance and settlement – Issues for very large and very small trades – Warranties provided by CC & banks Dispute resolution – Bearer certificates? – Tax and jurisdiction? – Privacy vs money laundering