Zeevo – Looking back

Agenda The Company -- History, timeline and some key notes Market assessment and other companies Perspective – looking back Take-aways

The Company -- History, timeline and some key notes

Market assessment and other companies

Perspective – looking back

Take-aways

The Idea Founded in Sep 1999 Vision was to drive the cost down of wireless chip by doing SOC’s with radios in CMOS technology The first market: Bluetooth Short range wireless standard Value proposition was a single chip Bluetooth solution with Embedded processor and associated SOC Bluetooth link layer Bluetooth radio Lower layer BT software stack The founding team comprised of four people with the following background: 1 Marketing 1 Systems 1 RF IC 1 Digital

Founded in Sep 1999

Vision was to drive the cost down of wireless chip by doing SOC’s with radios in CMOS technology

The first market: Bluetooth

Short range wireless standard

Value proposition was a single chip Bluetooth solution with

Embedded processor and associated SOC

Bluetooth link layer

Bluetooth radio

Lower layer BT software stack

The founding team comprised of four people with the following background:

1 Marketing

1 Systems

1 RF IC

1 Digital

Rounds of Funding 5 rounds of funding Series A: Sequoia Capital -- 1999 Series B: Raza Ventures -- 2000 Series C: Dell Ventures -- 2001  Highest Series D: WK Tech -- 2002 Series E: Winbond Electronics -- 2004 Total raised $85 million Acquired by Broadcom: $32 million -- 2005

5 rounds of funding

Series A: Sequoia Capital -- 1999

Series B: Raza Ventures -- 2000

Series C: Dell Ventures -- 2001  Highest

Series D: WK Tech -- 2002

Series E: Winbond Electronics -- 2004

Total raised $85 million

Acquired by Broadcom: $32 million -- 2005

Notable milestones and stats Key Milestones First Employee: Oct 99 First Tapeout: Nov 99 “ Peak sentiment”: Mar 01 (see next slide) Sampled to customers: Apr 01 Shipped millionth chip: Nov 03 Exit – Mar 05 Misc Number of employees at peak: 90 Key Customer: HP Names: 3 Number of layoffs: 3 Number of building moves: 3 Number of CEO’s: 3

Key Milestones

First Employee: Oct 99

First Tapeout: Nov 99

“ Peak sentiment”: Mar 01 (see next slide)

Sampled to customers: Apr 01

Shipped millionth chip: Nov 03

Exit – Mar 05

Misc

Number of employees at peak: 90

Key Customer: HP

Names: 3

Number of layoffs: 3

Number of building moves: 3

Number of CEO’s: 3

The peak Mar 2001 Solution was about to sample to customers – everyone was optimistic Highest number of employees Coming out party

Mar 2001

Solution was about to sample to customers – everyone was optimistic

Highest number of employees

Coming out party

The Nadir Sep 04 Burn rate was still going to be greater than profits Another RIF was coming Another round of funding looked necessary Lot of team members had been with the company for about 4-5 years and were getting tired Investment banking firm was hired soon after

Sep 04

Burn rate was still going to be greater than profits

Another RIF was coming

Another round of funding looked necessary

Lot of team members had been with the company for about 4-5 years and were getting tired

Investment banking firm was hired soon after

Investment Bankers Help companies decide on strategy involving Mergers and Acquisitions Capital financing For startups Generally means  help us get acquired SVB Alliant was the investment banker hired by Zeevo

Help companies decide on strategy involving

Mergers and Acquisitions

Capital financing

For startups

Generally means  help us get acquired

SVB Alliant was the investment banker hired by Zeevo

The Acquisition Process Initially Lots of preparation Slides, demos, individual meetings Different suitors want different things Exciting Since change is imminent (one way or the other) Once a deal is in the works, more activity Reviewing all contracts Deeper dive into the technology Employment offers Incentive packages (if applicable) Not an easy process – lots of hard work and tension

Initially

Lots of preparation

Slides, demos, individual meetings

Different suitors want different things

Exciting

Since change is imminent (one way or the other)

Once a deal is in the works, more activity

Reviewing all contracts

Deeper dive into the technology

Employment offers

Incentive packages (if applicable)

Not an easy process – lots of hard work and tension

Post-Acquisition Things don’t stop Have to deal with New environment New culture New Chiefs Possibly new direction Possibly new technology Establish credibility all over again Got to prove the acquisition out…

Things don’t stop

Have to deal with

New environment

New culture

New Chiefs

Possibly new direction

Possibly new technology

Establish credibility all over again

Got to prove the acquisition out…

How did the market do

How did other companies do Bigger companies Ericsson – exited the market Intel – exited the market TI – in play Infineon – in play

Bigger companies

Ericsson – exited the market

Intel – exited the market

TI – in play

Infineon – in play

Few things that went wrong Development Too much risk in too many areas Too conservative in some others Stumbled in a few places Marketing Not very targeted Never went after the highest volume market – Cell phones Ultimately targeted a niche segment (stereo headphones) in a huge market that never took off Did not effectively identify real opportunities from the noise Under-estimated the competition Did not leverage or outsource well

Development

Too much risk in too many areas

Too conservative in some others

Stumbled in a few places

Marketing

Not very targeted

Never went after the highest volume market – Cell phones

Ultimately targeted a niche segment (stereo headphones) in a huge market that never took off

Did not effectively identify real opportunities from the noise

Under-estimated the competition

Did not leverage or outsource well

More.. Operations Could never get the cost under control until it was too late Management Was inexperienced in certain areas Did not curtail spending in the early days Including hiring Did not make hard decisions quickly enough People Some were not startup material Communication Did not have a very good meeting culture We always gave the good news or put it in good light

Operations

Could never get the cost under control until it was too late

Management

Was inexperienced in certain areas

Did not curtail spending in the early days

Including hiring

Did not make hard decisions quickly enough

People

Some were not startup material

Communication

Did not have a very good meeting culture

We always gave the good news or put it in good light

What did we do well Good architecture Good technical team Came up with creative solutions As a small company, we were able to keep up with BT spec changes Hired people with diverse skill-sets to create a company identity RF, Digital, Firmware, Application, Packaging Generally good work atmosphere Excellent retention rate We had fun Attempted to communicate a lot When things did not go well, team showed resilience

Good architecture

Good technical team

Came up with creative solutions

As a small company, we were able to keep up with BT spec changes

Hired people with diverse skill-sets to create a company identity

RF, Digital, Firmware, Application, Packaging

Generally good work atmosphere

Excellent retention rate

We had fun

Attempted to communicate a lot

When things did not go well, team showed resilience

Personal Learning's Strong experience in the overall process to deliver wireless systems Exposed to a broad swathe of technical and business issues Appreciation and understanding of the application of technology in the context of the customer Took the opportunity to participate in Marketing and Operations roles Learned about the Workings of a company, people-issues, governing influences, self

Strong experience in the overall process to deliver wireless systems

Exposed to a broad swathe of technical and business issues

Appreciation and understanding of the application of technology in the context of the customer

Took the opportunity to participate in Marketing and Operations roles

Learned about the

Workings of a company, people-issues, governing influences, self

Parting shots Don’t get carried away by technology Its about the return to the investors Not every problem has a technological solution Don’t take more risk than you should Keep things simple Standards always take longer to get adopted than projected

Don’t get carried away by technology

Its about the return to the investors

Not every problem has a technological solution

Don’t take more risk than you should

Keep things simple

Standards always take longer to get adopted than projected

Parting shots (Cont.)… Experience counts – listen to the experts Take one step back to take two forward If it seems wrong, it is! No one knows any better Speak your mind Align with other founders and the investors OR don’t Spend the money as if it were your own Put the right folks in the right places and get the wrong ones out – ASAP! Enjoy the ride – don’t misplace priorities AND keep the pace going

Experience counts – listen to the experts

Take one step back to take two forward

If it seems wrong, it is! No one knows any better

Speak your mind

Align with other founders and the investors OR don’t

Spend the money as if it were your own

Put the right folks in the right places and get the wrong ones out – ASAP!

Enjoy the ride – don’t misplace priorities AND keep the pace going

Summary Doing your own venture is a great opportunity and experience The journey is eventful and the outcome could be fabulous

Doing your own venture is a great opportunity and experience

The journey is eventful and the outcome could be fabulous