Archive for the ‘Venture Capital (VC)’ Category

PostHeaderIcon 20 Question’s your likely to be asked by VC’s

This is a great article by Laurence Hayward.  He is the vice president at Chicago-based vcapital, explains how to present your business attractively to a VC.


Most likely you’ve played the game “20 questions.” As the contestant, you use your best combination of questions, which can be answered with a simple “yes” or “no” in order to discover a piece of information held secret by the other player. The objective is to discover the unknown information with the fewest questions possible.

This game shares some common traits with a venture capital interview. As the interviewee, you can expect a barrage of questions. You might also feel like the interviewers are trying to box you in as they narrow the choices, in order to hone in on the “answer” as quickly as possible. Recognizing that venture capitalists (VCs) reject a far greater number of deals than they accept, the quickest way for this interviewer to finish the game is to find a fatal flaw, a deal killer or a quick “no.” So, if you receive 20 questions, you’re doing fairly well.

The primary difference between the game “20 questions” and the venture capital interview is that you, the interviewee, can’t really answer the questions with a simple “yes” or “no.” So, in order to help you prepare, outlined below are 20 questions that VCs most frequently ask entrepreneurs. Following each, I’ve included a brief explanation regarding what the VC might be trying to uncover. These questions aren’t necessarily in the order you will receive them, though the winnowing process was taken into consideration when creating this list.

1) What is the market potential for your company’s product or service offering(s)? What is the revenue potential for the industry and what is its growth rate?

The VC wants to quickly ascertain whether the opportunity is large enough to pursue. What determines if the opportunity is large enough? Typically, it hinges on whether or not the VC will be able to achieve a healthy return within a designated timeframe (often three to five years). While all firms have different investment criteria, many VCs are looking for an opportunity that will yield an ROI of 50 percent or more. To achieve that significant bogy, VCs look for companies with considerable market potential for their products or services (often $500 million, $1 billion or more). Investors prefer growing markets to retrenching ones. Also, many VCs focus on specific industries, so they’ll be trying to ascertain whether this deal is within their bailiwick.

2) How did you calculate market potential? How do you determine industry sales and growth rate?

It is all too common for entrepreneurs to include very large market potential figures in their business plans and then indicate that they require only a miniscule fraction (e.g. 1 percent) of the market to achieve their revenue projections. These figures are often very suspect. If the company is capturing such a miniscule fraction of the market, what is so special about it? What is its real value and position relative to the competition? VCs typically prefer companies that are trying to be the leader in a particular segment. Finally, market potential estimates should be supported by independent research as well as bottom-up or top-down calculations.

3) What makes your business different or unique?

This question can have two wrong answers. That’s because a business can be both too common and too unique for a particular investor. If it’s too common, the VC will be concerned with the competition and the lifecycle of the business. If it’s too unique, the VC will be concerned with the time required to achieve critical mass. Many truly revolutionary products require educating the marketplace, and that can be an uncertain and lengthy undertaking.

4) Why would someone be “compelled” to purchase your product or service? What specific needs does it address?

VCs look for businesses with products or services that address a demonstrable market need or demand. Is your product something the buyer needs, or is it simply something that would just be nice to have? If it falls in the latter category, it is critical to demonstrate how your product will gain traction – that is, how people will come to demand it based on market trends.

5) How do you know that your business has high growth potential?

VCs want to know how you “drew down” your revenue estimates from the market potential figures (which hopefully include estimates from external sources). Ultimately, they want to see a large growth opportunity that scales quickly, thereby allowing them to realize the payoff on their investment as soon as possible. Be prepared to explain in detail the process you used to estimate revenues from market potential.

6) What is it about your management team that makes them uniquely capable of executing on this business plan?

You’ve probably heard that the three most important things in private equity investing are management, management and management. More specifically, VCs are typically looking for three things in management: experience in building a business, experience in the industry (or with the product) and strong character. What comprises the latter? VCs look for managers who demonstrate high energy or passion, resourcefulness, integrity, perseverance, risk-taking ability and mental horsepower. Also, a frequently overlooked quality is that of humility – for example, sometimes founders may need to step aside and let someone with more experience lead the company.

7) What are the primary risks facing this opportunity?

Most people tend to think of “the competition” when people ask them about risks facing their business opportunity. However, competition is only one risk. Other risks include changes or shifts in technology, governmental and regulatory policies, labor market conditions (availability to find qualified labor at a reasonable cost), business climate changes, product liability, computer crime, etc.

Also, don’t forget financial risks. For example, what happens if your current capital doesn’t allow you to reach break-even or your next financing event? A business risk assessment of potential threats to your business can help you prepare for the scrutiny of investors.

8) Who are your competitors?

You’ve heard the warning “never say never.” When answering the above question, the warning might well be “never say none.” There is more to this question than may first be evident. Certainly VCs are interested in learning about the extent of competition your business will encounter and how you will distinguish your company, but they also might be assessing your maturity as a businessperson. The answer “none” is typically incorrect because your business almost always has at least two competitors.

Potential buyers could simply continue to function without your product (e.g. through the use a substitute, however less effective) or buyers could “do nothing” (e.g. choose not to utilize the product or service). Furthermore, if the investor is aware of competitors that you have not considered (as many have researched particular segments independently), he or she will lose faith in your business assessment skills.

9) What gives your company a competitive advantage?

VCs want to know how you plan to outmaneuver the competition, and this doesn’t just pertain to existing competitors. They want to see that you’ve given thought to future market entrants and how you will stave them off. “First-mover advantage” is rarely a sufficient response to this question. A more effective answer usually depicts intellectual property barriers or the ability to reach the target market in a manner that is more effective than the competition. What is unique about your company that gives it an edge?

10) Does the company have proprietary intellectual property in the form of patents, trademarks, copyrights, etc.?

What do you own? What can you protect? These are two critical questions. In some industries (e.g. biotech), patents play a critical role in protecting the research and development investments of the company and in helping to ensure that there is a window of opportunity (usually before competitor offerings arrive) for the company to realize a significant share of revenues for a particular category. Trademarks and copyrights are critical to protecting the company’s intellectual assets and its “brand.” Also, at some point, VCs will want to ensure that you’ve taken the proper steps (through non-disclosure agreements, non-competes and/or employment agreements) to ensure the company is protecting its intellectual capital.

11) When will your company break even in terms of profitability and cash flow?

Remember when you first became financially independent of your parents? Your income exceeded your expenses, and you no longer required their support. Hopefully, they didn’t have to worry about you as much. The concept here is similar. Once you’re financially independent, you’re also less of a liability to a VC. Of course, the ultimate goal is to reach an exit scenario quickly. Profitable businesses are more attractive to potential buyers and the public markets.

12) How do you plan to acquire customers?

A well-developed business plan includes marketing strategies that demonstrate an understanding of market realities and customer behavior. VCs are looking for much more than a list of your marketing initiatives. You can anticipate questions such as: What are your company’s customer acquisition costs? Have you calculated average and target revenue per customer? Do you know how many customers are required to break even? Do you know the product sales cycle?

13) How do you plan to keep customers?

The most successful companies seem to have a plan for keeping customers even before they acquire them. It is said that it costs five times as much to generate business from new customers as it does from existing customers. Customer retention is critical to the long-term success of most enterprises.

14) What drives customer satisfaction for this industry and for the product? How do you know?

Have you conducted research in order to assess what is truly important to your customers? Do you know what product features are critical vs. those that are ancillary? Once you’ve acquired customers, you’ll need processes to ensure their ongoing satisfaction and your understanding of their changing needs. Have you considered how you’re going to support the product and the expenses associated with such support? Will existing customers purchase your product or service again? Will they recommend it to others? Regular and consistent customer feedback is essential in order to obtain the answers to these types of questions.

15) Who is the end-user of the product or service offering?

Is this a consumer-based business or will you sell your product or service to other businesses? What do you know about the demand for your product or service in that target market? What do you know about the buying habits of your target market? Do you anticipate any roadblocks? For example, will you have to educate the buyer? Also, think about how you can leverage partners or resellers to reach your target markets. Knowing the answers to these questions will be critical when you speak to a VC about your opportunity.

16) What alliances or partnerships have you entered (e.g. joint ventures, marketing alliances, licensing arrangements, selling/distribution agreements, channel partnerships, software agreements, etc.)?

It is important to remember that alliances can be assets and liabilities. VCs will want to know if any of your alliance agreements have comprised your intellectual property claims and if the company has any outstanding obligations to third parties. On the positive side, you’ll want to demonstrate how alliances may have helped your company lock-up certain distribution or sales channels for your products and services. Do any of your alliances give you a competitive advantage? Do they create barriers to entry? Do they help you reach customers more efficiently?

17) What is the anticipated lifecycle of your product or service offering? What are your current and future plans for R&D investments?

All great things come to an end. Products mature, competitors offer substitutes and customers demand change. Have you anticipated when the earnings power of your product will run its course for first-time buyers as well as for follow-on sales to existing customers (e.g. upgrades)? What are your plans for R&D investments and how will you continue to generate revenues when existing products run their course?

18) How do you plan to expand your labor force?

While the precise conditions of labor markets change, it is always a challenge to find the best people. VCs will not only be interested in the composition of your existing workforce, but also in how you plan to fill key positions now and in the future. Have you used an executive search firm? Do you have qualified candidates currently under review? How will you compensate people so as attract, motivate and retain employees while keeping labor costs under control?

19) What are the probable exit scenarios?

Many have claimed that this question is indicative of the current dearth in VC investing. Why? Because in a successful investment, the two most common exit scenarios are acquisition or IPO, and recently, there has been significantly less activity in both of these areas. VCs need to know how they’re going to monetize their investment – hopefully at an ROI of 50 percent or more – so the exit strategy is quite important. As an entrepreneur, you should spend some time thinking about who could acquire your business down the road. Be both realistic (particularly on timing and valuation) and creative regarding M&A possibilities.

20) What is the planned “use of proceeds”?

VCs want to know that their money is being put to good use in order to directly accelerate the business opportunity so they will receive their ROI in a timely fashion. One “no-no” is using VC investments to service existing debt obligations. Be prepared to present a timeline of milestones and include a breakdown of how the money will be spent and what it will allow you to accomplish.


Laurence Hayward is a vice president at vcapital, an online placement agent. He can be reached at lhayward@vcapital.com.


PostHeaderIcon Seattle Venture Capital Firms

CONTACT INFORMATION:

Alexander Hutton Venture Partners –
999 Third Avenue Ste 3700      Seattle WA 98104     (206) 341-9800

Arch Venture Partners –
1000 2nd Ave. Suite 3700       Seattle, WA 98104    (206) 674-3028

Ace USA Inc. –
800 Bellevue Way NE Suite 400 Bellevue, WA 98004(425) 462-4036

Advance Capital, Inc. –
600 University Ave             Seattle, WA 98101    (206) 622-8085

Ascent Partners, Inc –
1326 5th  Ave.               Seattle, WA 98101    (206) 626-6340

Bancshares Capital LP –
12505 Bel-Red Rd #112        Bellevue, WA    (425) 450-0700

Benaroya Capital –
1001 Fourth Ave Ste 4700        Seattle, WA 98154    (206) 343-4750

Beyond Ventures –
200 W Mercer             Seattle, WA 98119    (206) 283-1302

Big Garden Ventures –                         godsdog@ratcliffe.com

Broadmark Capital –
1420 5th Ave Suite 3030        Seattle WA 98101    (206) 623-1200

Buerk Craig Victor LLC –
2033 6th Ave. Suite 1001        Seattle, WA 98121    (206) 956-0898

Cascadia Capital Management –
403 Columbia St Floor 4 & 5    Seattle WA 98104    (206) 357-9100

Convergent Technology Capital –
1191 2nd Ave Suite 1800         Seattle WA        (206) 262-9711

Digital Partners –-
999 3rdAve                Seattle WA 98104    (206) 405-3607

eFund –-
5360 Carillon Pt             Kirkland WA 98033    (206) 389-4901

Encompass Ventures –-
777 108th Ave NE Suite 2300    Bellevue WA    (425) 468-3900

Endeavour Capital Fund –-
800 5th Ave.  Suite 4100        Seattle, WA 98104 (206) 621-7060

FBR CoMotion Venture Capital Lp —
1111 Third                Seattle WA 98101 (206) 382-9191
Fluke Venture Partners —                                 11400 SE 6th St, Suite 230        Bellevue, WA 98004(425) 453-4590
Frazier & Company
601 Union Suite 3300        Seattle WA 98101(206) 621-7200

Garage.com —                                        5400 Carillon Point         Kirkland WA 98033 (425) 576-7800
Greenstone Venture Partners –                             1177 West Hastings St Suite 400 Vancouver, B.C.    (604) 717-1977  info@greenstonevc.com

Guide Ventures —                                      999 3rd Ave Suite 2424         Seattle WA 98104    (206) 447-1350

Ignition Corp. —                                                  1.  11400 SE 6th             Bellevue WA 98004(425) 467-0119             2.  155 108th NE             Bellevue WA 98004(425) 709-0772

Incepta Group —                                     999 Third Ave. Suite 2500     Seattle, WA 98104 (206) 336-6500
iStart Ventures —                                      307 3d S                 Seattle WA 98104     (206) 264-8611

Kibble & Prentice Financial —                                         No address available in Seattle but tel. Is         (206) 441-6300                                      170 120th NE             Bellevue WA 98005(425) 454-2445

Kirlan Venture Capital —                                    221 1st W                 Seattle WA 98119    (206) 281-8610           No sure if it’s the right address & tel.

Madrona Venture Group —                             1000 2nd Ave.            Seattle WA 98104    (206) 674-3000
Materia Ventures —                                      3435 Carillon Point         Kirkland WA     (425) 822-4100
Maveron —                                            505 5th Ave S             Seattle WA 98104    (206) 288-1700

Northwest Venture Associates –                              221 N Wall Ste 628             Spokane WA 99201(509) 747-0728
Olympic Capital Partners PLLC –                         1325 4th                 Seattle WA 98101     (206) 623-4000

Olympic Venture Partners —                               2420 Carillon Pt             Kirkland WA 98033 (425) 889-9192
Norwest Venture Capital —                             245 Lytton Avenue Suite 250    Palo Alto, CA 94301(650) 321-8000
OVP Venture Partners —                                  2420 Carillon Point         Kirkland WA 98033 (425) 889-9192
Oxbow Capital Partners —                              1119 Pacific Ave Ste 300         Tacoma WA     (253) 565-3200
Pacific Horizon Ventures —                             1001 4th                 Seattle WA 98154     (206) 682-1181

Pacific Northwest Partners —                           15352 SE 53d             Bellevue WA 98006(425) 747-5558
Pioneer Venture Group —                                   520 Pike St                Seattle WA 98101   (206) 262-1899

Polaris Venture Partners —
Roanoke Capital —

SeaPoint Ventures —                                      777 108th AVE NE, Suite 1895    Bellevue WA 98004(425) 455-0879
Second Avenue Partners —                             1000 2d                 Seattle WA 98104 (206) 624-6585

Skyblaze Ventures —                                   701 5th Ave Suite 3600         Seattle WA 98104  (206) 262-7408

Social Venture Partners —                                  1601 2d Ave                Seattle WA 98101 (206) 374-8757
Spangler Ventures —                                    2802 10th Avenue East Seattle, WA 98102  info@spanglerventures.net
Staenberg Capital Partners —                             1932 1st         Seattle WA 98101 (206) 770-0117 or (206) 770-5775
Staenberg VC (Private Capital, LLC)—

The Phoenix Partners —                                  1000 2d                 Seattle WA 98104 (206) 624-8968
Timberline Ventures —                                 no address in Seattle only tel:  (206) 224-0131                   8000 NE Parkway Dr        Vancouver WA 98662 (360) 882-9577
Trans Cosmos, USA -                                     777 108 Ave Ne Suite 2300     Bellevue WA 98004(425) 468-3930
Tredegar Investments —                                Phone: 804-330-1044 E-mail: invest@tredegar.com

U.S. Venture Partners —                                 7900 SE 28th St             Mercer Island WA 98040     (206) 236-5776

Vault Capital —                                      506 2d                 Seattle WA 98104         (206) 381-3875
Velocity Capital —                                              PO Box 21567             Seattle, WA 98111         (206) 264-1415

Venture Capital Team —                                5400 Carillon Point         Kirkland WA 98033-7356     (425) 576-4030

Voyager Capital —                                     800 5th Ave Ste 4100         Seattle WA 98104         (206) 470-1180

Vulcan Ventures —

Washington Mutual Strategic Capital Fund —
Watershed Capital —
601 Union Street Suite 4722     Seattle, WA 98101         (206) 332-1880

XML Fund —                                            777 108th NE             Bellevue WA 98004    (425) 467-0111

Venture Associates
2800 T Vancouver WA 98663-3155
(360) 694-4549

Venture Capital Financial Service
3216 S Tacoma Way TACOMA WA 98409-4725
(253) 474-2274

Venture Capital Team Investments LP
5400 Carillon Point Kirkland WA 98033-7356
(425) 576-4030

Venture Charters
PORT ORCHARD WA
(360) 895-5424

Venture Construction
12350 Brownsville Hwy NE Poulsbo WA 98370-7940
(360) 697-4437

Venture Construction Inc
4005 West Valley Hy N AUBURN WA
(253) 852-8080

Venture Construction Inc
4005 West Valley Hwy N Auburn WA 98001
(253) 939-9313

Venture Construction Inc
4005 West Valley Hy N AUBURN WA 98001-2442
Kent Tel No 253 852-8080

Venture Data
1126 N Monroe St Spokane WA 99201-2116
(509) 327-6754

Venture Developement Corp
200 1st W Seattle WA 98119-4298
(206) 283-4904

Venture Developement Corp
116 Warren N Seattle WA 98109-4927
(206) 441-3881

Venture Development Corp
200 1st W SEATTLE WA 98119-4298
(206) 283-6848

VENTURE FARMS
1850 VENTURE RD ELLENSBURG WA 98926-7052
(509) 968-3530

Venture Five Associates
Mkto MUKILTEO WA 98275
(425) 347-5915

Venture Industries Inc
22623 83rd S Bldg B KENT WA 98032-1990
(253) 395-3745

Venture Law Group
4750 Carillon Point KIRK WA 98033-7355
(425) 739-8700

Venture Marketing Inc
WA     (206) 527-9292

Venture Media Inc
1515 Fairview E Seattle WA 98102
(206) 324-0305

Venture Pacific Partners Inc
11417 124th Av Ne KIRK WA 98033-4677
(425) 889-8770

VENTURE SCOPE INC
35803 SE 27TH PL FALL CITY WA 98024-9400
(425) 222-6868

Venture Seafood Corp
WA     (206) 623-7224

Venture Technical Coatings
4319 Ne 114th VANCOUVER WA 98686-4442
(360) 546-1132

Venture Vending
RICHLAND WA 99352
(509) 627-1377

Venture Wireless Staffing
320 Andover Park E Tukwila WA 98188-7600
(206) 575-0218

VentureTech Alliance
2125 1st Seattle WA 98121-2173
(206) 441-8080


PostHeaderIcon World’s Hottest 100 Venture Capital Sites

1.    Softbank Technology Ventures
2.    CMGI @ Ventures
3.    Walden Group of International Venture Capital Funds
4.    Morgan Stanley Venture Partners
5.    21st Century Internet Venture Partners
6.    Sierra Ventures
7.    North Bridge Venture Partners
8.    Advanced Technology Ventures
9.    Mayfield Fund
10.    idealab!
11.    American Securities Capital Partners
12.    Vision Capital
13.    Advent International
14.    Trident Capital
15.    Primus Venture Partners
16.    Abingworth Management Limited
17.    Media Technology Ventures
18.    Vanguard Venture Partners
19.    E-match
20.    DynaFund Ventures
21.    Alta Partners
22.    Pacific Century Group Ventures
23.    EnerTech Capital
24.    Dougery Ventures
25.    VirtualFund
26.    Capital.com
27.    Pacific Venture Group
28.    Digital Technology Partners
29.    Ameritech Development Venture Capital
30.    FairShare
31.    Ampersand Ventures
32.    Weiss, Peck & Greer – Venture Partners
33.    Venture Strategy Partners
34.    Apex Investment Partners
35.    CW Group
36.    Crosspoint Venture Partners
37.    Asia Pacific Ventures
38.    Fairfax Partners, LP
39.    Aspen Ventures
40.    Hickory Venture Capital Corporation
41.    Asset Capitalization Enterprises
42.    GreenField Technology Ventures
43.    Asset Management Associates
44.    Desai Capital Management Inc.
45.    Associated Venture Investors
46.    Dawntreader LP
47.    Atlantic Coastal Ventures, L.P.
48.    First Analysis Venture Capital
49.    XDL Capital Corporation
50.    Atlas Venture
51.    AT&T Ventures
52.    idealab Capital Partners
53.    Western Association of Venture Capitalists
54.    Convergence Partners
55.    August Capital
56.    Technology Crossover Ventures
57.    Foundation Capital
58.    Avix Ventures
59.    Women’s Growth Capital Fund
60.    Internet Capital Group
61.    Road Show
62.    BancBoston Capital
63.    Frontier Ventures
64.    Geocapital Partners
65.    Technology Funding Inc.
66.    Bertelsmann Ventures
67.    Bessemer Venture Partners
68.    Prospect Street Ventures
69.    Fleming and Associates
70.    Brand Equity Ventures
71.    Rosewood Capital
72.    Skypoint Capital Corporation
73.    TA Associates
74.    Telos Venture Partners
75.    Brentwood Venture Capital
76.    RAF Ventures
77.    4Capital
78.    Chase Capital Partners
79.    iEmploy!
80.    BizBoard
81.    Bottom Up
82.    Bplans.com
83.    businessplans.org
84.    Dolphin Ventures
85.    EntreWorld
86.    Financing Your Business
87.    Forum for Women Entrepreneurs
88.    GoPublicCentral
89.    4HighTech.com
90.    Yazam
91.    Laurel Ventures
92.    Marcus Venture Consulting
93.    MIT / Stanford Venture Lab
94.    Netpreneur Exchange
95.    Orange Coast Venture Group
96.    Red Herring Online Magazine
97.    StartupNetwork
98.    TopStartups.com
99.    Venture Directory
100.    Omega Ventures


PostHeaderIcon Venture Capital Firm List 1

21st Century Internet Venture Partners Devoted to investing in startup
ventures pursuing opportunities born of the Internet. Areas include Internet,
intranet related software & tools, Internet media, and the emerging
Internet-enabled digital economy.

The A Group Arranging the union of money and ideas by utilizing our seed capital, honesty and contacts.

Accel Partners A venture capital firm dedicated to partnering with outstanding management teams to build
world-class companies.

Acer Technology Ventures Investing in early stage startups. Our focus is in enabling technology, which
can drive new market growth based on semiconductor, communication and
software innovations.

A1 Finance Excellent wealthy entrepreneurs looking to back promising start up companies. Prefer companies
with some existing cash flow. Especially interested in software and internet
companies.

Alliance Technology Ventures An early-stage venture capital firm specializing in life sciences and
information technology startups.

Alpine Technology Ventures A Silicon Valley based venture capital firm whose General Partners have
extensive experience in investing and working with early stage information
technology companies.

Altos Ventures Focuses on seed and early stage investments in high technology companies.

American Capital Strategies A buyout and specialty finance company providing senior debt, subordinated debt
and equity to companies in need of capital for growth, acquisitions, employee buyouts, management buyouts, liquidity and restructuring.

Apogee Partners A private equity investment firm that provides equity financing to small and middle-market companies engaged in the communications industry throughout the Western Hemisphere.

Asia Pacific Ventures A venture capital firm funded primarily by large technology corporations which focuses on
investing in seed and early-stage high tech companies with proprietary, leading-edge technologies.

Asset Management Associates Focuses on high-potential, technology-based seed and early-stage companies in the biological and information sciences.

Atlantic Coastal Ventures Washington, DC Invests in a diversified portfolio of telecommunications companies and related service companies

Atlas Venture A partnership of international venture capitalists formed to finance high-technology
businesses seeking success in the global economy.

Aurora Funds, Inc. Durham, NC
Investing in emerging technology-based companies in the Southeastern United States.

Austin Ventures Providing private equity capital to growth companies in Texas and the Southwest.

AVI Capital The General Partner of a family of professionally-managed venture capital partnerships specializing in seed and early-stage investments in high-technology companies

Avix Ventures Focused on technology related venture capital investments.

Bachow & Associates Provides expansion capital to well-managed and growing companies.

BancBoston Capital Provides a wide range of equity options, from early stage venture capital to equity
sponsorship, co-investment and mezzanine capital for buyouts, recapitalizations and expansion of mid-size companies.

Battery Ventures High tech venture capital. Based in Boston with an office in San Francisco.

BCL Investments Plc Venture capital and corporate finance facilitation. Project management &
privatization advisory services. Business plan & feasibility study preparation. IPO & private placement advice and facilitation.

Ben Franklin Technology Center Promoting economic growth by linking entrepreneurs with technology and capital

Benchmark Capital We are dedicated to being the leading early stage venture capital firm of the next millennium.

Berkeley International Capital Corporation
A later-stage venture capital firm located in San Francisco, California. We have 11 investment professionals with industry experience in a variety of high technology companies.

Bessemer Venture Partners A private venture capital firm that invests in entrepreneurial companies at any stage.

BG Affiliates LLC A private equity investment firm that provides capital to high quality, middle-market
operating companies.

Brentwood Venture Capital A private venture investment firm with offices in Menlo Park, Los Angeles and Orange County. We invest equity capital in start-up, early stage and emerging growth
companies.

Canaan Partners Investment strategy focuses on providing capital for growth. The firm is comfortable working with entrepreneurial companies across all industry sections

Capital Access Partners Specializing in providing advisory services and obtaining expansion capital
for early stage firms.

CAPITAL ONE currently manages over $350 million of investment capital and oversees investments in
more than 39 portfolio companies. Capital One is a classic venture capital partnership organized in 1998 to produce superior investment returns by providing capital and management assistance to early stage, high growth companies.

Capitol Bay Securities Private brokerage and investment bank offering unique investment opportunities typically
unavailable through traditional brokerage firms.

Capital Match Raising money has always been about who you know, not what you know. That time has ended. Capital Match brings together Entrepreneurs and Angel investors based on great ideas
and mutual goals.

Carlyle Group, The Private global investment firm, based in Washington, D.C., which originates,
structures and acts as lead equity investor in management-led buyouts, strategic minority equity investments, equity private placements, consolidations and build-ups, and growth capital financings.

Chase Capital Partners A global private equity organization with approximately $4.5 billion under management,
providing equity and mezzanine financing for a wide variety of investment opportunities.

CID Equity Partners One of the largest
Midwest firms providing private equity and debt financing to start-up, early
stage and middle market companies.

Cohn Partners The “Digital
Coast’s” leading consulting firm, helping start-up companies develop and
execute competitive internet business strategies. Develop e-commerce web
sites, business plans, form strategic partnerships and facilitate venture
capital financing.

Colorado Bio/Medical Venture Center A bio/medical, new business incubator. Other
program resources include an affiliated seed venture capital fund;

Commercial Finance Online – CFOL.com
The world’s largest business finance search engine. 20,000 CFOL.com members
provide commercial finance solutions to businesses seeking capital.

Commonweath Development Corporation London, UK A leading international development finance institution operating in
the developing economies through 27 overseas offices.

Company Builders A business
“accelerator” company for new and emerging technology companies.
Company Builders helps entrepreneurs and investors create, build, and fund promising
early-stage technology companies.

Congress Financial An
industry leader in asset based finance, specializes in a variety of
transactions up to $250 million.

Coral Ventures A private venture
capital firm specializing in the technology and healthcare industries.

Crosspoint Venture Partners An
initial stage equity investor with focused expertise in three strategic
areas-networking and communications, health care, and financial services.

DealFlow Entrepreneurs list their
Executive Summaries for free. Angels and Private Investors search for free
and can order displays of Executive Summaries they choose.

DeMinds NV A pan-European investment
group, focused on the Wired World. And a leader in the field of venture
capital, investing and IPO.

Desai Capital Management Inc. New
York-based private equity investment firm that acquires or provides equity
capital to growth companies.

Desco Venture Capital Group Funds for
companies requiring cash for growth of startup and emerging technology
companies.

Digital Technology Partners An
independently managed venture capital firm specializing in the digital
convergence industry. We focus on the Internet, online services, content providers,
interactive multimedia, and supporting enabling technologies.

Direct Stock Market DSM
provides investors, entrepreneurs and securities industry professionals with
current, complete and immediate information about public and private
offerings.

Draper Fisher Associates Investment
focus is on emerging microelectronics, telecommunications, and information
technology firms in the United States.

DynaFund Ventures venture
capital fund investing in microelectronics, telecommunications and
information technology startups.

Edison Venture Fund Provides
financing and guidance to growing companies in the Midatlantic region.

El Dorado Ventures A private
venture capital partnership that invests primarily in early-stage,
technology-based companies located on the West Coast.

Embryon Capital Provides venture
capital to entrepreneurial companies specializing in information technology
products and services.

EnerTech Investing in service
and technology companies related to utilities and the broader energy
marketplace.

Entree Ltd. Provides venture capital.
Raises private placement funds. Provides a network of private investors.

Environmental R&D Captial Corporation Toronto, Canada A venture capital company that was established in 1994 to
invest in emerging growth opportunities in and relating to the environmental
industry.

Equity Capital Partners
Leveraged buyout fund, focusing primarily on acquiring or making substantial
investments in established middle market operating companies, which generate
between $1-5 million operating cash flow.

Equity Ventures Ltd London, UK
Equity Ventures is a venture capital fund manager and arranger. We manage a
regional venture capital fund in the UK.

European Venture Capital Forum
Participate in threaded discussions with other financial professionals on
topics ranging from business valuation to employment opportunities.

Chase H & Q Domestic venture capital group manages over $330 million in
assets in domestic funds.

Fair Share Interactive educational
system for venture capital investments. Membership organization of
individuals and investment clubs dedicated to venture capital investing.

Fairfax Partners II A venture
capital firm located in Vienna, VA, investing in seed / early stage companies
and special situations.

Finance Hub’s Venture Capital Section
List your venture in the online database. Search the VCSeekers database.
Contact the principals directly.

FS Capital Markets Group Inc. We can
help take your company public with the formation of IPOs and Public shells or
reverse mergers.

Galen Partners invests
exclusively in emerging healthcare companies.

Generation Partners A private
investment firm focused on providing equity capital for growth companies.

Geocapital Partners Industry focus
in information technology. $200 million under management. 14 Years of venture
capital investing experience.

Global Business Trade Consultancy
Specializes in international joint ventures, angel investment, public venture
capital, and direct public offerings for technology companies.

Greylock Helping entreprenreurs build
companies in the software, communications and healthcare industries.

Grotech Capital Group A private equity
firm providing financing for early, expansion and later stage companies.

GSM Capital One of the largest
venture funds targeted exclusively at investing in companies in the wireless
communications industry.

Heller Capital We assist clients in
raising capital through our various finance sources. Whether your business is
in need of capital, an SBA loan, or debt financing, we can help you.

Hexa Incubator LLC A subsidiary
of Wellspring Angel Fund LLC. As Wellspring invests in a company, it will
have access to the expertise and services of Hexa.

High Tech Ventures A proven leader in
the formation, funding and staffing of data communications and distributed
computing start-ups.

Hummer Winblad Venture Partners We
invest in software companies at every stage of development from start-up to
mezzanine.

idealab! An integrated incubator for
starting and growing Internet businesses.

IDG Ventures An early-stage venture
capital firm created by International Data Group (IDG).

Industrial Growth Partners Private
equity capital for middle-market manufacturing companies. Management buyout
specialists.

Integrity Capital We are a one
stop shop, services group that provides venture capital, investor relation,
company PR, and investment banking.

Interface International Venture
capital, corporate finance and corporate development for emerging growth
technology firms.

InterWest Partners A venture capital
firm with over $600 million in committed capital.

Inverness Capital Company
We provide targeted access to a large network of accredited investors,
corporations, funds, and institutions actively seeking venture capital
investment opportunities.

IVP Invests in leading early stage
companies with advanced technology in information and life sciences.

Jerusalem Venture Partners An
international, Israeli based, VC fund specializing in early stage investments
in the areas of communications and internet. JVP currently manages 3 funds
totalling $260 million.

Joint Venture Partners International, Inc.
Seed and early stage in high technology and biotechnology. JVP Fund II Bridge
Loan and later stage.

Kestrel Venture Management Private
capital firm providing capital and support to small, growing companies.

Kleiner Perkins Caufield & Byers
Offering entrepreneurs a broader philosophy of value-added investing: not
merely access to capital, but access to people.

Koldoon — online technology wizard A
searchable online database of thousands of pre-IPO startups and their
investors, crosslinked to display hidden trends in the private equity market
for new technology companies. Updated five days a week, adding 200 new
companies weekly.

Levine Leichtman Capital Partners Invests
primarily in non-control positions in California middle market companies.

Levy Trajman Management Investment Inc.
Provides portfolio companies the needed capital for growth while actively
participating as a partner in setting the business vision and making daytoday
executive decisions.

Massey Burch Capital Corp. A venture
capital firm focusting on high growth investments in the southern United
States.

Matcho.co.uk The new online matching
service bringing together start-up companies and e-business financing
experts.

Matrix Partners Private venture
capital partnership with an investment program focused on early stage
software and communication companies.

Menlo Ventures Private venture
capital group providing funding to early stage communications, software, and
healthcare technology companies.

Mentor Capital Diversified venture
capital company with controlling interest in Main Street Athletic Clubs.

Meritage Private Equity Fund

Mohr, Davidow Ventures Provides earlystage
venture capital to information technology companies. Areas of expertise
include networking, the Internet, enterprise software, and semiconductors.

Multimedia Broadcast Investment Corporation
Lending for broadcast technology and internet related businesses.

Nassau Capital An independent firm which
invests in private companies and assets on behalf of Princeton University’s
$5 billion endowment.

New Enterprise Associates Invests
principally in early stage companies in information technology and medical
and life sciences.

North Atlantic Capital
Corporation
Makes investments in companies with sales of $3-30 million
located in the Northeastern part of the U.S. Investments range from $1-3
million and are made for expansion as well as management buyouts.

Norwest Venture Capital Invests
primarily in technology and healthcare, with some selective investments in
consumer services. We actively manage more than $500 million in capital.

Nth Power Technologies, Inc. A venture
capital firm investing in businesses who are poised to capitalize on the
opportunities created by the deregulating energy industry.

Oak Investment Partners a venture
capital organization dedicated to helping new enterprises emerge as
tomorrow’s industry leaders and has organized seven partnerships with over
$1.0 Billion in committed capital.

Onset Ventures Menlo Park, CA A venture
capital firm that helps entrepreneurs who have unique ideas build productive,
profitable companies.

Opus Capital Provides emerging
technology companies access to capital and operational expertise.

Pacific Century Group Ventures Ltd. Global investment expertise in venture
capital, fund management and corporate finance. Our vision is to help
outstanding entrepreneurs build exceptional growth companies, in order to
maximize shareholder value for all parties concerned.

Pacific Venture Group Investing in high
growth business opportunities relating to healthcare services and information
systems.

Partech International Investing in
startup and growth companies in information technology, communications, and
healthcare; offices in San Francisco, Paris, and Tokyo.

Pinetree Capital Specializing in
information technology, telecommunications, biomedical/biotechnology juniors.

Ponte Vedra Ventures
Represents a private investor seeking to make investments in early-stage
companies with a simple concept.

PrestigeIPO We provide small company
offerings for companies that have the growth and fundamentals to potentially
be Nasdaq or Exchange listed companies within 18 to 24 months of the first
round of financing.

Private Investor Exchange Venture capital
and private equity finance – a free on-line exchange for matching
entrepreneurs and businesses seeking funding with investors.

Priveq Financial Corporation – Don
Mills, Canada
Provides creative equity financing to growth oriented
companies.

Rader Reinfrank & Co. LLC Manages a
$100 million Los Angeles-based private equity fund. We provide long-term
capital, management support, and financial expertise to emerging growth
companies in the communications, telecommunications, media, and electronic
commerce industries.

Redleaf Venture Management Redleaf
contributes not just capital, but direct assistance, strategic coaching and
management support to its portfolio companies.

Richards Investment Capital Seeks
majority equity positions in management-led buyouts, corporate spin-offs,
family-owned businesses undergoing generational transfers and companies whose
finances cloud an otherwise promising future.

RRE Investors, LLC – New York, NY A venture
capital firm that invests in entrepreneurial information technology
companies.

San Francisco Venture Enterprises
Dedicated to finding capital, offering consultation, and contributing
guidance to companies in need of such services.

Sequoia Capital Sequoia has financed
more than 350 early stage technology companies, investing at every stage of a
private company’s development.

Sevin Rosen Funds A venture capital
partnership dedicated to helping entrepreneurs build successful businesses.

The Shansby Group A leading San
Francisco-based private equity investment partnership dedicated to investing
in quality companies with exceptional management teams, strong consumer
brands and substantial growth potential.

Shawmut Capital Partners A
venture capital firm that can help position your business to capitalize on
current trends within the financial services marketplace. We focus
exclusively on the financial services sector, investing in well-managed
companies with strong growth prospects.

The Shepherd Group Private equity
investment firm providing early-stage, growth and acquisition financing to
venture and middle-market companies.

Sierra Ventures Financing to start-up
and emerging growth companies focused on information technology and health
care.

Silicon Valley Capital Network
Provides qualified investors a concentrated, efficient source for Silicon
Valley early-stage deal flow. For entrepreneurs it provides a concentrated
source of potential investors.

Spencer Trask Securities Our
mission is to discover and invest in the ideas that will shape the 21st
century. Along with our growing network of entrepreneurial co-investors,
Spencer Trask finances companies in the technology, healthcare, and
telecommunications industries.

Sprout Group One of the oldest and
largest sources of private equity capital for growing companies. Established
in 1969 as a venture capital affiliate of Donaldson, Lufkin & Jenrette
(DLJ), we have managed 12 major investment partnerships totaling nearly $2
billion in committed capital.

Sterling Venture Partners Invests
primarily in early stage companies with either new business models which
leverage the internet and technical advances that offer solutions to real
problems which are sustainable or new business models with an educational
focus.

StockOnWeb A European strategic
capital linker specialised in Internet-related economy. The company focuses
on start-up companies looking for capital and also helps develop these
companies with strategic advice.

St. Paul Venture Capital Invests in
emerging growth companies which have the potential to generate excellent
performance.

StoneGate Partners, Boston,
MA. Full service investment banking firm providing capital to expansionary-stage
private companies in the information technology, telecommunications and
health sciences sectors. We offer individual accredited investors the
opportunity to invest in attractive, venture-ready private growth companies.

Stonebridge Associates, LLC A full
service investment banking firm for middle market and emerging growth
companies.

Strategic Capital Advisors Boutique firm specializing in taking small companies public
through unique reverse merger program with in house public shells created
exclusively for merger process.

Summit Partners Invests in early
stage, internetrelated companies, preferably prior to the first large
institutional round

Sunflower Capital Partners When
we enter a partnership, we share a common goal – your company’s continued
growth and success. We will provide the capital, the experience, and the
resources to help you achieve that goal.

Sutter Hill Ventures A leader in financing
technology-based companies since 1962. We are a stable, reliable source of
investment dollars, with more than $200 million available to promising
companies.

TA Associates Private equity and venture
capital investments in growth companies in the software, technology,
healthcare, financial services, media, and consumer industries.

TD Capital The private equity arm of
Toronto Dominion Bank with committed capital of approximately $500 million.
Our team consists of individuals with a complementary mix of backgrounds
including private equity, mergers and acquisitions, consulting and lending.

Technologieholding- Venture
capital company for seed, start-up and early stage high-tech companies.
Active Europe-wide.

Technology Funding Technology
Funding’s newest public venture capital fund is accepting new shareholders.
Today, investing in venture capital is as easy as buying stocks online.

Technology Management & Funding
Mission is to uncover and introduce breakthrough technologies to the
marketplace, while providing commercialization and funding solutions that
foster accelerated growth for early-stage technology companies.

Technology Venture Partners Addressing
the need for venture capital among innovative Australian technology
companies.

Telos Venture Partners An early stage
venture capital firm located in Silicon Valley focusing on information technology,
semiconductor and communications companies.

Trans Pacific Finance
Commercial real estate loans. Development money available. Multifamily and
health care direct lending programs.

Translink International
Founded in 1972, Translink is an independent partnership providing M&A
advisory services for medium-sized cross-border transactions, typically
between $20 and $300 million, through our eight office in Europe and North
America.

Tribune Ventures Seeks equity
investments and strategic affiliations with emerging companies whose business
it is to inform, entertain, or educate people in new ways, places and times.

Trident Capital Invests exclusively
in information and business services companies. These include content
providers. Transaction processors. Application software. And Internet
products and services.

Trinity Ventures A privately
held, professionally managed venture capital firm with $190 million in
committed capital. Founded in 1986, Trinity has invested in over 75
companies.

U. S. Venture Partners Investing
principally in companies headquartered in the Western United States in three
sectors of industry: medical, technology and retail/consumer.

Union Atlantic LC A private merchant
banking concern providing investment opportunities to corporations and high
net worth individuals through equity investments in emerging companies.

Univ. of Southern California’s Software Incubator Program The EC2 Incubator Project at USC advances the
interactive communication through its business incubator, testbed facilities
& knowledge facilities. Venture capitalists are welcome to contact us.

US Investor Network Provides access
to capital, contacts, information and education on-line for member investors
and entrepreneurs.

Vanguard Venture Partners We
are an early stage venture firm, focused on the communications, internet, and
life sciences sectors. Our partners are experienced entrepreneurs (with an
average of 20 years operating experience), and are committed to making our
portfolio companies successful.

VenGlobal Capital Targets investments
in early stage companies in Silicon Valley. Its investment focus is in
software and wireless telecommunication.

Venrock Associates The venture capital
investment arm of the Rockefeller Family. Venrock’s objective is to create
long term value by helping build new high technology companies and industries
from the earliest stages.

Venture Associates Information on
initial public offerings, IPOs, internet direct public offerings, DPOs,
reverse mergers, venture capital, business plans and planning, small business
financing.

Venture Capital Online, LLC A vertical
portal on the internet for the venture capital and entrepreneurial communities.
We have a network of over 100 veture capitalists representing in excess of
$18 billion in capital. While providing community and content, we also refer
business plans directly to our network member venture capitalists.

Venture Capital Report Ltd. A service
directly linking investors and entrepreneurial businesses seeking capital.
VCR publishes a monthly Report featuring entrepreneurs seeking capital which
is subscribed to predominantly by private investors, “Business
Angels.”

VentureLabour.com Inc. A leading
e-business incubator, supplying technology and strategic management services
to accelerate the idea-to-wealth journey of its partner companies.

Venture Resources A business
development and capital formation consulting firm with concentrations of
activities in Healthcare, BioMedical, Information and Internet technologies.

The Venture Site A wholly
Internet-based business introduction and advertising service for companies in
need of an investor and the Business Angel community.

Venture Strategy Group An
early-stage capital and strategy consulting firm serving the needs of
marketing-driven growth companies.

Venture-Preneurs Assisting
emerging growth companies to achieve their funding needs thus linking
entrepreneurs, investors, opportunities and resources.

Venture Resources A business
development and capital formation consulting firm with concentrations of
activities in Healthcare, BioMedical, Information and Internet technologies.

VentureOne Founded in 1987 to bring together
promising entrepreneurs and leading members of the venture capital community.

Virtual Wall Street, Inc.
Direct public offerings via the internet.

VistaWEB VistaWEB® IPO has taken a
cutting-edge approach to stock offerings – allowing emerging global
technologies to reach a world of investors. And vice versa. All via the World
Wide Web.

Walden International Investment Group An
international venture capital firm providing seed, start-up and expansionary
financing for investments in the software, internet, telecommunications,
healthcare & other high growth industries.

Watermill Ventures A global strategic
investment and management firm which acquires companies and assists themin
reaching their performance potential.

Wellspring Angel Fund LLC Invests
in high technology start-up companies. Its subsidiary Hexa Incubator LLC
helps the entrepreneurs to realize their visions.

Woodside Fund Early stage venture
capital from partners who have served as CEO in a successful technology
startup. Investment focus is software, telecommunications, networking,
internet, e-commerce and other technology ventures.

worldVentures The home of Analytic
Ventures and the worldVentures family of funds. Forging relationships with
entrepreneurs and investors in order to facilitate and nurture growth.