7. EARLY EXITS APPEALING TO FOUNDERS – LESS CAPITAL AND DILUTION REQUIRED Microsoft , Google , Yahoo! & AOL acquired 57 companies Q1 ’07 to Q1 ‘08 (inc.), vast majority of which are valued at under $100MM or “value undisclosed” Motivation for the founders? Lower probability of $200MM exit owning 5%-10% of the company in 5-7 yrs Higher probability of $50MM exit owning 40%-60% of the company in 2-3 yrs OPTION A OPTION B * Note YL Ventures typically invests 1 year after the start Founders’ Share = $15MM Founders’ Share = $25MM Date Company Acquirer Price Funding Comments 17 Apr ‘08 Sphere AOL Undisc $4MM 3 years* start to exit 28 Feb ‘08 Yadata (Israel) Microsoft $25MM $2.5MM 1.5 years* start to exit 5 Feb ‘08 Foxytunes (Israel) Yahoo! $40MM <$1MM 3 years* start to exit 4 Feb ‘08 Goowy AOL Undisc <$1MM 4 years* start to exit 12 Dec '07 Multimap (UK) Microsoft $50MM $6MM $25MM went to founder 9 Dec ‘05 Del.icio.us Yahoo! $30MM Undisc 2 years* start to exit 20 Mar ‘05 Flickr Yahoo! $40MM <$1MM 3 years* start to exit