Building and Delivering the Presentation The 12 ish

Building and Delivering the Presentation

The 12(ish) Slides § 1 - Overview § 2 - The Problem § 3 - The Solution § 4 - Opportunity and Market § 5 - Technology § 6 - Unique Competitive Advantages § 7 - Competitive Landscape § 8 - Go to Market Strategy § 9 - Financial Roadmap § 10 - The Team § 11 - Current Status § 12 - Summary © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Why 12 Slides? § Goal of the first meeting is to get the second meeting • Increase receptivity and find your champion § Focus • What are most important factors? § Efficient use of time • Convey the basics • Time is limited § YOU are the real story • Don’t hide behind slides § Order of slides will depend on your situation © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Introductions § Begin by introducing your team • 60 seconds or less • Save team detail for later § Mention any common links • Referral sources, other relevant contacts © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Title Slide § § Name of your firm Date Name of investor firm Optional: How much money is being sought for this round? § Appropriate graphics (logo, etc. ) © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

April 2002 Seeking $5 M © 2002 Deloitte & Touche LLP. Deloitte & Touche

Once Upon A Time… § During the title slide… § Start with a 2 -minute story • Hook ‘em! § § Make it compelling and memorable Video Tie the story to your overall message PRACTICE!!! © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Slide 1: Overview § Two to five high level bullets § Refer to key points to keep attention for the rest of the presentation (your elevator pitch) § If you don’t get their attention here, you won’t get their check later © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Making Business e. Commerce a Reality Automate financial processes and operations Drive transaction cost efficiencies IT Managers of Fortune 100 companies rank this as among the top five areas to invest in over the next five years Beta agreements have been signed by three Fortune 100 companies.

Slide 2: The Problem § Compelling problem(s) to be solved • What’s the pain? – revenues, costs, time, market reach • Faster, better, smaller, etc. are solutions, not problems • Must be easily understood & communicable § Best to include validating quotes • Customers are best • Analysts when applicable § So what? § Problem must suggest a large market © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Corporate Data isn’t Safe Fake Payables *Billions Lost Annually $70 K Deleted 40% *Up to Chart of Accounts wasted IT time “Our margins depend on a secure Vendor Fake platform. ” $100 K $3. 7 M - Sam Hein, VPO XYZ Airlines © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities. * IDG Group Study

Slide(s) 3: The Solution § Describe your business • Product or service § Compelling benefits • “Must-haves” not “nice-to-haves” § Defining graphic • Illustrating your product or service § Hooked? • If you haven’t set the hook by now, you are dead! © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Solution Intrusion Detection Access Control Easy Integration © 2002 Deloitte & Touche LLP. Deloitte

Product or Service Strategy § § Describe what you do Features Benefits to target customer (could be a 2 nd slide) Future products/services © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Slide 4: Opportunity and Market § Market details • Size and growth rate for five years • Focus on your segment(s) of the target market § Trends driving the market § Demonstrate defensible % of market share • Why you won’t get squashed § A graph format works well © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

© 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche

Slide 5: Technology § Translate key points from business to technical domain • Show customers and partners fit in, if possible § Best to use animated graphics • Before and after diagrams often work well § Concentrate on essential value proposition!! • Talk to important but peripheral issues and details, avoid clutter § Address “invent vs. integrate” issues • Show that you will invent only uniquely competitive elements • Show incremental development path that reduces risk, if possible © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

>>> Technology EXECUTE ANALYZE OPTIMIZE PLAN Fulfillment Warehousing Distribution Manufacturing Logistics Procurement Supply Chain Inventory Business Applications XML EDI Analytics Engine Rules Engine Planning Engine Workflow Engine Platform Framework XML EDI J 2 EE Application Server ODBC Relational Metadata IT Infrastructure: Hosted or in-house Data Flow © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities. ODBC Customer Mgmt Enterprise Portal Integration Web Store Call Center Email Direct Mail Field Service Point of Sale SFA

Slide 6: Sustainable Competitive Advantage Team, relationships, intellectual property, new insights, domain expertise § Are they yours alone? § Will they provide a 10 X+ advantage? § How long will they last? § What will it take to overcome them? § Why will customers care? © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Sustainable Competitive Advantages Team has strong background in key technical areas q q q CEO, Chuck Smith, 5 years of speech systems experience at Nuance VP Engineering, Dave Johnson, built enterprise software products for Ten. Fold Team has nearly 20 years collective experience in computer telephony Partnerships in place with dominant market players q q Speech Technology – Nuance and Speechworks Voice Portals – Tell. Me and Be. Vocal Authorization Software – Netegrity and RSA Security Provisioning and Management – BMC and M-Tech Patenting innovations in technology and applications q q q Voiceprint store & forward from PC – voiceprinting on internet from standard PC Voiceprint store & forward from IVR – allows bolt-on rather than re-write Several other patentable innovations coming © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Slide 7: Competitive Landscape § Discuss current and potential competitors • Demonstrate knowledge of the landscape • Barriers to entry • The answer “no competition” → red flag → no market § Provide framework to differentiate • Use customer-centric attributes and dimensions • Reinforce your unique competitive advantages § Upper right quadrant graphic? • VCs see ‘em everyday – risk of being cliché § Quote prospective customers • What do they say about your competitors? • Why would they rather buy from you? © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Competitive Advantage Product GA Production Customers Acme Company A Company B Company C Company D Company E Company F © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities. Highly Scalable Architecture >$10 per IP-DSO

Slide(s) 8: Go to Market Strategy § Who are the key players? • Profile the customer • Discuss critical partner relationships (current and future) • Describe who (in/out-house) sells your product or service § How and what do customers buy? • Discuss high level pricing (e. g. , annuity or one fee) • Describe what the customer will get (today and beyond) § Marketing and sales plan • Explain value chain and sales cycle • Compare and contrast to other firms § Graphics work well § Emphasize external validation © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Target Market § Use your market research § Identify your segment § Consumer • Demographics & psychographics • How make buying decisions § Business • Types of companies • How make buying decisions © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Key Marketing Strategies (could be 2 slides) § § § § High Level description Target market Distribution - channel Positioning strategy Sales strategies Advertising & Promotion Pricing strategy Roll out plan Partnerships © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Go To Market Strategy Today Distributors INDIRECT SALES 18% 6 US 10 European 2 Asian MIDMARKET Strategic Partners IBM 82% F 1000 DIRECT SALES © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities. $4 B Market

Go To Market Strategy Tomorrow INDIRECT SALES 50% Distributors Sirrius Av. Net Support Net Strategic Partners IBM ISS Symantec Tripwire MIDMARKET Independent Software Vendors JD Edwards SAP Infinium 50% F 1000 DIRECT SALES © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities. $4 B Market

Slide 9: Financial Roadmap § Provide high level 5 year projections • Revenues and expenses by major categories • Pretax profit (loss), cash flow from operations, capital requirements § Highlight milestone targets • • First revenues Cash-flow positive Tangible competitive barriers (customers, IP, etc. ) $100 M/yr run rate in year 5 is cliché, but expected © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Financial Overview Gross Profit % Net Earnings % © 2002 Deloitte & Touche LLP.

What’s Behind the Financial Slide? § Deep understanding of the business model § Be prepared to discuss key assumptions • Revenue analysis – market penetration and timing § § Top-down (supportable percentages) Bottom-up (pipeline, revenue by customers, validation) • Expense analysis § Validate with comparable companies, as available • Other (capital equipment, A/R, Inventory & A/P turnover) © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Back-up slides (3 -4) § § Revenue model Profitability – Margins, Comp’s, Break-even Cash Flow – burn rate, major expenditures Key assumptions © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Future Timeline March 2003 January 2003 December 2002 August 2002 July 2002 Begin Marketing Efforts for AEDI Complete identification of management team Begin strategic product development Elevate marketing of DD to achieve sales goals Close A-round © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Slide 10: The Team § Previous relevant accomplishments • Include academic credentials § How does this team work together? § Be honest - who’s missing? • Discuss your hiring plan to fill key slots § Relate to unique competitive advantages © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Management Team Chuck Smith, CEO q q 9 years enterprise systems expertise – IBM 10 years call center systems expertise – ROLM/IBM and Tandem 5 years speech solutions expertise – Nuance BS Mathematics, Loyola University, Los Angeles Dave Johnson, VP Engineering q q q 6 years telecom & imbedded systems expertise – Tanner 6 years enterprise software integration expertise – Ten. Fold BS Engineering, Cal. Tech Herman Lewis, VP Sales q q q 20 years of sales success in Call Center market – Teknekron and Teloquent Sales process expert with 8 years sales management experience BA Philosophy, Bloomfield College, NJ Board of Directors q q q Mike Baker, Chairman of Blue Note Software Bruce Davidson, retired VP Sales, Nuance Charlie Clay, board member SRI © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Funding § How much funding is required § Major uses • • Product launch Capital expenditure Marketing campaign Etc. © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Offering § Equity - different rounds • Amount being raised • % of Company • Return on Investment § Debt § Exit © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Slide 11: Current Status § Highlight milestones achieved to date § What have you already accomplished with other investors’ money? • Investors like to see efficient, productive use of resources § Historical timeline format can be useful § Emphasize where you go from here • Show you are in position for some key next steps © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Current Status Launched: January 2001, angel funding Product Status q q q Password Reset announced 5/01, available 9/01 Confirmed Caller announced 2/02, available 4/02 Voice Secure Web – prototype available Customer Status q q Hartford Life – Password Reset 9/01 Bank of America – Password Reset 1/02 prospects Wells Fargo Password Reset US Bank Password Reset Hewitt Password Reset Visa Password Reset E*TRADE Confirmed Caller GE Card Services Confirmed Caller Partnerships complete and functional q q Nuance and Speechworks both contributing funding Netegrity, RSA Security and BMC Seed team effective and efficient © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Slide 12: Summary § Summarize your three strongest points • Have these distilled down to memorable sound bites • Highlight synergies with prospective investor (portfolio, GP background, domain expertise, etc. ) © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

summary Great opportunity to impact security market q Voiceprints are best authentication approach q Proprietary advantages in place Proven team and initial results q Delivering products to paying customers q Established partnerships with market leaders Seeking support to capture the opportunity q Financing q Building management team © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

After the Meeting § Immediate follow-up email • Thank prospective investors for their time • Address any unresolved issues • Stress points that resonated § Follow-up with additional information • Support due diligence process § Coach your references © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.

Next Steps § Involve your team • Set format, timelines, and delegate § Re-build your story • Elevator Pitch Power. Point Executive Summary Demo § Create investor/customer target lists § Seek external feedback • Go back to referral sources for “dry run” © 2002 Deloitte & Touche LLP. Deloitte & Touche refers to Deloitte & Touche LLP and related entities.