Overview

Flatiron Partners

Presentation to MIT

Spring 2001

Bob GreeneManaging General Partner

Flatiron [email protected]

257 Park Avenue South, 15th Floor, NYC 10010212-228-3800

Overview

Who is Flatiron Partners Investment Philosophy Flatiron Portfolio How we work with Companies The Market Today

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

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

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.

Flatiron Partners – the People

Ten Investment professionals

Diverse backgrounds

Decades of VC, technology, Internet and media experience

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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

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

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Transactions – Services Multex.com ITXC iXL Enterprises Mainspring Comscore Acurian Electron Economy Return Path

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Transactions–Infrastructure/Technology

Resonate IbiquityReciprocalPortal PlayerAppGenesisEshare Technologies

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

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Transactions–Pervasive Computing

VindigoFusion OneVertical OneQuixiKozmoKinkos.com

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What do Venture Capitalists actually do ….? ? ?

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

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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

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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.

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The Market Today…Movie Clip

U G L Y !Movie Clip

The Market Today

To many questionable ideas funded the last few years

Portfolio Triage

Support or Euthanasia

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The Market Today

Hard to put together financings

Investors focused on their portfolios

Valuations down – a buyers market

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Expectations

Invest more slowly

Spend less & grow within your means

Conditions and psychology start to improve later this year

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