1. Flatiron Partners Presentation to MIT Spring 2001 Bob Greene Managing General Partner Flatiron Partners bob@flatironpartners.com 257 Park Avenue South, 15 th Floor, NYC 10010 212-228-3800 bob@flatironpartners.com Flatiron Partners Presentation to MIT Spring 2001 Bob Greene Managing General Partner Flatiron Partners bob@flatironpartners.com 257 Park Avenue South, 15 th Floor, NYC 10010 212-228-3800 bob@flatironpartners.com

2. 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

3. 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

4. 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

5. 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.

6. 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

7. 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

8. 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

9. 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

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

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

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

13. What do Venture Capitalists actually do ….? ? ?

14. 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

15. 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

16. 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.

17. The Market Today…

18. U G L Y !

19. 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

20. 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

21. 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