Adrenax Capital adrenalie in your dreams Early&seed stage venture capital Startup factory Executive Summary Augusto Camargo Sao Paulo, Brazil June/2007

Agenda Problem Solution Business Model Underlying Magic Marketing and Sales Competition Management team Financial Projections Current Status

Problem

Solution

Business Model

Underlying Magic

Marketing and Sales

Competition

Management team

Financial Projections

Current Status

3 years: No M&As. No Innovation. In 2-3 years Brazil will not have enough (startups) companies for providing innovation and M&As. Big Companies have food for the next 2-3 years. Consumers will have few options of pure brazilian-like re volutionary products and services. Agenda: Problem

In 2-3 years Brazil will not have enough (startups) companies for providing innovation and M&As.

Big Companies have food for the next 2-3 years.

Consumers will have few options of pure brazilian-like re volutionary products and services.

Context for Startups in 2007 Many M&A and IPOs of existing IT companies. No VCs in Brazil for seed money. No angels (pros). Market focusing only on private equity Incubators? None creating high volume of Startups Agenda: Problem

Many M&A and IPOs of existing IT companies.

No VCs in Brazil for seed money.

No angels (pros).

Market focusing only on private equity

Incubators?

None creating high volume of Startups

Adrenax Capital Early&seed stage venture capital and startup factory: Mantra: To grow smart startups. Vision: We believe that the ultimate place for innovation in XXI century are startups. Mission: To grow startups to feed big companies and market innovation. Agenda: Solution Big Companies Private Equity Startups

Early&seed stage venture capital and startup factory:

Mantra: To grow smart startups.

Vision: We believe that the ultimate place for innovation in XXI century are startups.

Mission: To grow startups to feed big companies and market innovation.

Show me the money! Our exit plans for the Startups are M&A and Founder(s) buyout in three years. If the startup is not sold in three years (plan A) for a bigger company, by contract, the founder(s) must buy-it-out and pay back the initial investiment plus a small interest (plan B). Agenda: Business Model

Our exit plans for the Startups are M&A and Founder(s) buyout in three years.

If the startup is not sold in three years (plan A) for a bigger company, by contract, the founder(s) must buy-it-out and pay back the initial investiment plus a small interest (plan B).

3 Steps Step 1: Find a innovation pain or gain (first). We are in a cloud of big companies looking for innovation. Step 2: Create the Startup. We have a framework for Startup factory. We have access to the 10 of the top 20 brazilian universities. Step 3: Sell the Startup . Our board and partners are our deal finders and makers. Agenda: Underlying Magic

Step 1: Find a innovation pain or gain (first). We are in a cloud of big companies looking for innovation.

Step 2: Create the Startup. We have a framework for Startup factory. We have access to the 10 of the top 20 brazilian universities.

Step 3: Sell the Startup . Our board and partners are our deal finders and makers.

Trouble Sources For entrepreneurs: Pubs owners Drug dealers Trainee programs For deals: Internal R&D areas Macro-economic events, journalists and Research firms that change winds direction Other Startups Agenda: Competition

For entrepreneurs:

Pubs owners

Drug dealers

Trainee programs

For deals:

Internal R&D areas

Macro-economic events, journalists and Research firms that change winds direction

Other Startups

A (quite) stable triangle Augusto Camargo, CEO Patrizia Parenti, CFO Gil Giardelli, vice-president Agenda: Management Team

Augusto Camargo, CEO

Patrizia Parenti, CFO

Gil Giardelli, vice-president

Now. Startups: Startup factory framework tested 9 companies founded 8 companies @ break-even 1 merge and 1 company sold Entrepreneurs : 3 partnerships with universities closed (UFSCar, FGV e FAAP) 2 events planned for prospecting BPs Agenda: Current Status

Startups:

Startup factory framework tested

9 companies founded

8 companies @ break-even

1 merge and 1 company sold

Entrepreneurs :

3 partnerships with universities closed (UFSCar, FGV e FAAP)

2 events planned for prospecting BPs

We believe in the... “ The art of start” – Guy Kawasaki “ Blue Ocean” – Kim & Mauborgne “ Know-how” – Ram Charam “ Getting Real” - 37signals God 

“ The art of start” – Guy Kawasaki

“ Blue Ocean” – Kim & Mauborgne

“ Know-how” – Ram Charam

“ Getting Real” - 37signals

God 