Slides from the Venture Capital Bootcamp event hosted by DFJ Gotham Ventures and Wilson Sonsini Goodrich & Rosati at Columbia University on June 3, 2009. A video of the 3 hour event is available at www.dfjgotham.com.

1. VENTURE CAPITAL BOOT CAMP June 3, 2009 Internet Week New York

2. Thank You!

5. Powerful and Growing DFJ Network 23 funds, >$6 billion in capital 150 professionals, 600 portfolio companies Unique access, insight and deal flow

8. WSGR Business Model

10. Select WSGR Clients

13. VCs Make Investments in Startups

15. Limited Partners Require Risk-Adjusted Returns

16. Returns are Generated Through Exits: M&A or IPO

19. “ Great for entrepreneurs to own 80%, not great for investors to own 20%”

20. Build standalone companies, exit along the way

21. Other Sources of Risk Capital

22. Why is VC helpful?

23. Capital

24. Action Plan & Attack

25. Connections

26. Credibility

27. Governance

28. It’s a Marriage…

29. Reach for the Big Win

30. Shared Control – Shared Destiny

31. Fit

32. 1%

39. Getting the Meeting Mutual Contact LinkedIn Cold Email Spam Most Effective Least Effective Direct Introduction

40. What is the objective of the first meeting?

41. Cross Chasm from Pitch to Conversation

42. What’s After the First Meeting? The Due Diligence Phase Meet The Team Company Materials Experts References Facilitate proactively!

45. Explain what your company does (in plain English)

46. Why is this needed? Why now?

47. Market Size Addressable Market

48. Why are you better than your competition?

49. Be thoughtful about barriers

50. Being the first mover is not a barrier, it’s an opportunity to create barriers

51. Common Barriers Scale Customer Captivity Information Technology IT Barriers

52. Don’t forget the jockey

55. Describe your place in the ecosystem

56. Describe the path to success

57. Don’t forget the jockey

59. Identify the Right VC

60. Embrace Pinball Effect

70. Typical Dilution Metrics Financing stage Amount Raised Dilution Seed – develop beta product, develop plan $50k - $1m 15-30% A – complete initial product, build initial team $1m-$5m 40-60% B – bring product to market, complete team $5m-$15m 25-35% C – expand sales and marketing, working capital for liquidity event $10m-$25m <20%

75. Liquidation Preference Example of Fully Participating Preferred (assumes $100m sale price and $25m invested) Shares % o/s Liquidation preference Payment of remainder Total proceeds A 3,500,000 23.33% $3,000,000 $17,500,000 $20,500,000 B 4,000,000 26.66% $7,000,000 $20,000,000 $27,000,000 C 3,000,000 20.00% $15,000,000 $15,000,000 $30,000,000 Common (founders) 2,500,000 16.66% N/A $12,500,000 $12,500,000 Option pool 2,000,000 13.33% N/A $10,000,000 $10,000,000 Total 15,000,000 100.00% $25,000,000 $75,000,000 $100,000,000

81. Q&A