Establishing a US Business Guy Daley CEO Catch

Establishing a US Business Guy Daley CEO Catch. FIRE Systems

Introduction – Guy Daley • Living in Europe and the US for last 10 years – Banking IT and software background – UK and European marketing and channels management – Sterling Software VP Business Development – mergers and acquisitions • Started Catch. FIRE Systems Early 2000 – Minimal business network in US – Learnt from the ground up

Catch. FIRE Systems • • • Located - Centreville Virginia, 20 min west of Washington DC Technology – Next generation “Internet Traffic Management” Business model – Product company, multi channel sales to enterprise and Govt. Market focused – Fortune 4000, starting with Banking, Airlines, Online Betting Market opportunity – 2004 $800 m => $1. 5 b 2008 Business stage – Sales and marketing expansion US and EMEA Products – FIRENode traffic control suite Staff - 6 US staff, 10 UK staff Revenues – 2004 e - $3 m => 2005 e - $10 m Funding – Individual US/Australian investors

Lessons learned – Some simple keys • • Its easy to start a business – without a clear objective, success if unlikely If venture funded - the finish is all important The company “exit strategy” must be understood and articulated “Long shots” are not welcome – the US focus is all about the percentage plays Knowing your market and target customers is fundamental and expected The “bubble” taught us – strong teams, not good ideas, make success Networking is the basis of business in the US Networking in the US is VERY different to Australia………. More akin to European business…. .

Today’s Economy Demands Creativity Reduced IT spending, startup company phobia, “shell shocked investors” • Limited funds mean that execution must be carefully considered – Phased and synchronous execution – almost one step at a time – Critical mass at each step becomes the operational focus – Alternative means of “resourcing” required • Examples – – Building a strong board and business network Catch. FIRE UK - independently funded organization w/buyout US/UK Press and Analyst launch – find lowest cost entry point for leverage Engaging high impact sales staff – use of “accelerators” on commission only But the CEO has an enormous learning curve w/o the luxury of time…………. How can this be reduced………………?

Australian Mentors • Like minded and like experienced Australians • Focused on sharing business network Australian companies making the move to the US need help in all these areas and more……. . AMG Australian Mentors Group MENTOR PROGRAM • Assisting Australian companies in US expansion – Early stage companies are the focus of assistance – Sharing the network, setting expectations, reducing the risk and resources of first year • www. Shortpoppies. com Connecting the Australian, New Zealand US Technology Sectors

Lessons Learned • Most companies take first steps into the US without relevant research, measurable objectives or plan to execute • Driven by recognition that US market cannot be avoided or neglected • • Lack understanding on markets, competition and how business is done Very little operational or strategic support from Australian based business infrastructure – VCs, educational, government, business community • Often disappointed by first foray into the US – low results, high costs and long time scales • Early stage companies are least able to cater for “miss-steps” There is only so much that mentors can do AFTER the US move is made……. . Very little support structure exists back in Australia to ensure readiness………

Once the US Move Is Made • The cost start to rise and pressure builds to achieve • Companies start to get “shopped” as they try to regroup • “Baggage” starts to accumulate presenting additional hurdles First expectation to set is time and cost…….

Companies Need to Be Better Prepared • Help exists today – – – – Australian Government Austrade State Governments Australian/American organizations ANZA Technet Australian VC community Business and Educational community Each with an agenda, resources and rules that differ……. Where do companies go for help if they aren’t ready yet……. ? How do they know……?

The Bigger Picture • • Government bodies are not in the business of “filtering” before helping VC don’t have the US relationship to know business contacts and what is working Educational and business organizations don’t have current information US based mentors/CXO do, but have there own businesses to run How can these communities be combined to facilitate assistance…?

Some Successful Hi-Tech Examples • Israel - Known for defense technology and IT security – USIBEX organizing body combining US VC’s, Government and Trade organizations • India – Known for IT services and outsourcing – Indian CTO organization largest in the US – Indian network is well organized with a track record of success – Trade and business organizations have grown IT business 5000% in a decade • Ireland – Known for largest multi language/outsourced call centers and IT services

How Does Australia Compare • • Powerful brand awareness “Flavor of the month” Top level educational system Strong work ethic Very entrepreneurial by nature But known for established older economy industries A growing number of notable individuals Why is Australia not known for Hi-Tech or Bio-Tech in the way India, Ireland or Israel are know for their emerging industries………?

How Would Australia Get There? • Create a “channel” that successfully “fast-tracks” capable companies to the US • Organize the “vested” parties to collaborate in the “channel” – – – Filtering and preparing companies in transition to the US Working to a common set of overall growth objectives Focused on maximizing long-term FDI into Australia Sharing perspectives and experience to reduce the learning curve Actively working to improve success rates, time to revenues, business growth Creating new Australian “industries” That, in turn, strengthen the “fast track channel”……….

Summary and close • • • Mentoring is critical to the success of early stage companies Australia could and should be known as a world leader in Hi-Tech YAPA is an excellent vehicle for that task Thanks for your time Questions? Guy Daley President & CEO Catch. FIRE Systems, Inc. 5885 Trinity Parkway Suite 220 Centreville, VA 20120 703 -563 -4167 Guy. Daley@ Catch. FIRESystems. com www. Catch. FIRESystems. com