1. Steve Papa Serial / Parallel Tech Entrepreneur The Endeca Story

2. Sept. 2006

4. Oct. 2011

5. Rule #1: Ignore Experts “This will never scale” – Computer architect ’99 “This is a science project” – Anonymous venture capitalist ’99 “It took me 3 days to build what they sold to Fidelity” – Ilya Gorelik, PTC “Navigation is our core competency” – BN.com, 11/00 “This is just a GUI” – World’s #1 database expert, 2001 “I know a couple of Russian programmers that could build this in 3 weeks” – Harvard students, 10/01 “We already do this” – Amazon, 3/02

6. Perseverance Required “Is it right to take venture money when the technology may never work?” – Endeca team member, Jan 2000 “What difference does a week make in closing our funding?” – Tuesday, Sept 4, 2001 “Who wants to be customer #2 of a venture backed software company in October 2001?” “They are going to go out of business in 6 months” – Verity CEO, 3/02 “You can’t have folks sharing rooms at Demo 2001!” – PR Agency (we saved $3,000) “You don’t have the balance sheet to rent this space.” – Real Estate agent, Fall 1999

7. Endure Self-Inflicted Doubt “We don’t even know if this product is any good” Endeca board member, last “real” board meeting, July 2011 <3 weeks before $800M offer, ~6x revenue

9. May 1999

10. Phase 1: 5/99-11/00 Getting to First Customer “Basic research project” to bring efficiency to markets like eBay Got lucky bringing the right scientists together Funding was during the Internet bubble (Spring of 2000) and easy Assembled great set of highly credible VCs and individuals First customer was 6 week sales cycle…6 months to deploy

11. Wind in our sails…. HBS graduation Endeca fo unded

12. Phase 2: 2001 Getting to Second Customer First year over year decline in IT industry spending EVER “I spent $8M trying to solve that problem last year and I am out of money” Ecommerce declared dead Willing to solve any problem a customer threw at us Technology “platform” vision, interest but no commitment Built a leadership team with deep experience Closed second round of financing the week after 9/11 Within 6 weeks of cash How unlucky and lucky can you get?

13. Catching a “Falling Knife” Series A Series B Angel

14. Phase 3: From 5 to 100 customers First 5 included the use of our “platform” technology for: Ecommerce Enterprise search Business intelligence Ecommerce emerges as the painkiller….increases revenue ~ 30% Despite great results still a recession, still need early adopters “I already do this”

15. Phase 4: From 100 to 600 customers….

16. Ecommerce + big ($) problems nobody else could solve

17. November 3 rd 2006

18. Phase 5: Recession, Reinvention and Re-Organization No customers have budget to solve “big problems” Detected as early as October 2007 (unlucky) Raise $25M of funding in Q4 2007 in 5 weeks (lucky) 2008 dislocation worst since the Great Depression Forces us to recognize our platform focus missed the bigger opportunity as two distinct products Two Endeca business units emerge in 2010: Agile Ecommerce = Endeca InFront Agile Business Intelligence = Endeca Latitude

19. Governor Patrick, July 2011

20. Phase 6: Exit – IPO or M&A? August 2011…. AAA US Treasuries? Europe? Time Running a public company Hiring bankers

21. The Platform lives on!

22. Main lesson: Ideas, Figuring it out, and Execution Ideas versus execution: Ideas are not in short supply “Figuring it out” is the fulcrum Survivorship bias (crossing the chasm, customers right?) Experience must be placed in context Timing, territory, and talent Cap table is a scarce resource – you need help Relentless pursuit of credibility / Eliminate risk

23. General Principles taught, learned, and earned Pursue markets you are passionate about Macroeconomics, market cycles and investor sentiment matter Always a good time to innovate but not always a good time for every innovation An exit plan is more than a list of companies and IPO More people you hire will be selfishly focused than not “Coin operated sales” is not disparaging Focus and running a 3 legged race where others aren’t

24. Get experienced help # people that can truly help / # of people claiming they can  0 If its too good to be true….it likely is Repeaters versus creators Doers vs. leaders Intellectually curious vs. focused Experience versus potential Credibility versus talent…or both?

25. Luck Favors the Prepared Luck plays a bigger role than most will admit But… Work hard, do things you love to do, have fun and with some luck….you’ll become an “overnight success”