Flatiron Partners Presentation to MIT Spring 2001 Bob Greene Managing General Partner Flatiron Partners 257 Park Avenue South, 15 th Floor, NYC Flatiron Partners Presentation to MIT Spring 2001 Bob Greene Managing General Partner Flatiron Partners 257 Park Avenue South, 15 th Floor, NYC

Overview  Who is Flatiron Partners  Investment Philosophy  Flatiron Portfolio  How we work with Companies  The Market Today  Who is Flatiron Partners  Investment Philosophy  Flatiron Portfolio  How we work with Companies  The Market Today

What Is Flatiron Partners?  One of the leading technology venture capital firms in New York  Founded in August 1996  Focused on early and mid-stage, information technology companies  Investment range $1 to $50 million  One of the leading technology venture capital firms in New York  Founded in August 1996  Focused on early and mid-stage, information technology companies  Investment range $1 to $50 million

What Is Flatiron Partners?  1996 fund capitalized at $150 million with two investors: JP Morgan Partners (JPMP) and SOFTBANK Technology Ventures  Current fund capitalized at $500 million with JPMP as sole active LP  1996 fund capitalized at $150 million with two investors: JP Morgan Partners (JPMP) and SOFTBANK Technology Ventures  Current fund capitalized at $500 million with JPMP as sole active LP

Our Partner: JPMP  A global private equity organization with approximately $24 billion under management whose sole limited partner is The JP Morgan Chase Corporation.  Since 1984, has closed more than 1,500 individual transactions.  One of the largest most active private equity groups in the world.

Flatiron Partners – the People  Ten Investment professionals  Diverse backgrounds  Decades of VC, technology, Internet and media experience  Ten Investment professionals  Diverse backgrounds  Decades of VC, technology, Internet and media experience

Our Philosophy  Invest in services, infrastructure/technology and content  Domestic, International  Pervasive Computing  Generally, invest at an early stage  As often as possible, invest locally  Work closely with management  Use the strengths of partner: JPMP  Invest in services, infrastructure/technology and content  Domestic, International  Pervasive Computing  Generally, invest at an early stage  As often as possible, invest locally  Work closely with management  Use the strengths of partner: JPMP

Transactions - Content  Geocities  Starmedia Network  TheStreet.com  Gamesville.com  Onlinepartners - gay.com  Powerful Media – [Inside.com]  Urban Box Office (UBO)  The Industry Standard  The New York Times Digital  Geocities  Starmedia Network  TheStreet.com  Gamesville.com  Onlinepartners - gay.com  Powerful Media – [Inside.com]  Urban Box Office (UBO)  The Industry Standard  The New York Times Digital

Transactions – Services  Multex.com  ITXC  iXL Enterprises  Mainspring  Comscore  Acurian  Electron Economy  Return Path  Multex.com  ITXC  iXL Enterprises  Mainspring  Comscore  Acurian  Electron Economy  Return Path

Transactions–Infrastructure/Technology  Resonate  Ibiquity  Reciprocal  Portal Player  AppGenesis  Eshare Technologies  Resonate  Ibiquity  Reciprocal  Portal Player  AppGenesis  Eshare Technologies

Transactions – International  Starmedia Network  Sina.com  sportsya  Patagon  Submarino  Mercado Libra  Viajo  Starmedia Network  Sina.com  sportsya  Patagon  Submarino  Mercado Libra  Viajo

Transactions–Pervasive Computing  Vindigo  Fusion One  Vertical One  Quixi  Kozmo  Kinkos.com  Vindigo  Fusion One  Vertical One  Quixi  Kozmo  Kinkos.com

What do Venture Capitalists actually do ….? ? ?

The Venture Capitalist’s Role … according to Flatiron  We buy a part of the Company  We are Owners  We are on the Board of Directors  We buy a part of the Company  We are Owners  We are on the Board of Directors

The Venture Capitalist’s Role … according to Flatiron  We become Partners with the founders and management  We think like Owners  We help with …Strategy, Recruiting, Raising money, Opening doors, High level sales intros, Going public, Merging, etc  We become Partners with the founders and management  We think like Owners  We help with …Strategy, Recruiting, Raising money, Opening doors, High level sales intros, Going public, Merging, etc

An Analogy – A VC is a Producer  A VC is like a Movie Producer  We help find money, people, bankers, clients, the Board, etc.  To Management, we are …friend, foe, shrink, cheerleader, teacher, idiot, partner.  A VC is like a Movie Producer  We help find money, people, bankers, clients, the Board, etc.  To Management, we are …friend, foe, shrink, cheerleader, teacher, idiot, partner.

The Market Today…

U G L Y !

The Market Today  To many questionable ideas funded the last few years  Portfolio Triage  Support or Euthanasia  To many questionable ideas funded the last few years  Portfolio Triage  Support or Euthanasia

The Market Today  Hard to put together financings  Investors focused on their portfolios  Valuations down – a buyers market  Hard to put together financings  Investors focused on their portfolios  Valuations down – a buyers market

Expectations  Invest more slowly  Spend less & grow within your means  Conditions and psychology start to improve later this year  Invest more slowly  Spend less & grow within your means  Conditions and psychology start to improve later this year