The document discusses Espírito Santo Ventures' insights into the growth and impact of innovative IT companies, particularly focusing on OutSystems, which revolutionizes enterprise software development. It highlights the importance of agile methodologies in project management and addresses the burgeoning entrepreneurial landscape in Brazil, showcasing successful ventures. The newsletter illustrates the broader implications of venture capital investments and the role of innovative businesses in economic recovery and wealth creation.

1. 4th Quarter – October 2010
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Newsletter Cleantech Healthcare IT
Editorial problems and, in the process, can grow eight years ago, revolutionizes the way IT
at breathtaking speeds, increasing sales, projects are dealt with at mid- and large-sized
Joaquim Sérvulo Rodrigues creating value and employing not only corporations. It has been considered one of
CEO significant numbers of people but also highly the most visionary IT companies in the world
Espírito Santo Ventures
qualified people. This is of tremendous value by Gartner and other IT gurus.
to society as a whole and, in particular, to the Clients from different parts of the world are
regions in which these companies operate. increasingly adopting Outsystems’ “Agile”
The media, politicians and economic platform as a means to be able to deliver IT
Innovative companies commentators are increasingly conscious projects on budget and on time and, at the
create wealth. of that fact and, through them, so is society same time, getting rid of the obsolescence
at large. Venture capital investing is, in this problem, which is an inherent characteristic
Portugal is just one of the many countries regard, a two-sided coin. of the way IT systems are deployed and
that have been experiencing significant On one side, we strive to identify, invest in maintained nowadays. This very positive
challenges in terms of competitiveness. These and support the most promising companies development has turned Outsystems into a
challenges are exacerbated with stagnant in order to maximize the return on our company that, today, employs over 100 highly
economic growth and sizable unemployment. investments. This is the visible side of our qualified professionals, and generates almost
Although the way out of these situations activity. half of its relevant sales volume from abroad.
encompasses many dimensions, one is On the flip side, we know that by doing that Across the Atlantic, Brazil is a market which
unavoidable: the growing importance of well we are contributing significantly to we also believe is likely to produce many
innovative companies in both jobs and wealth structural economic recovery by helping investment opportunities in the near future.
creation. foster the most innovative companies. To give us a glimpse of those opportunities,
Wealth cannot be distributed if it is not first In this edition of our quarterly newsletter, we invited René Fernandes from the
created. we introduce you to one of our Portuguese “Centro de Empreendedorismo Getúlio
Innovative companies create wealth. portfolio companies which is proof of that Vargas” to share his experience as to how
Innovative companies are the ones that find development. Outsystems, a Portuguese IT the entrepreneurial mind-set is evolving in
new and better ways to address significant company, founded by Paulo Rosado some modern Brazil.

2. 02 Espírito Santo Ventures - Newsletter - 4th Quarter - October 2010

3. 4th Quarter - October 2010 - Newsletter - Espírito Santo Ventures 03
At OutSystems we are changing
the way companies look at custom
enterprise software development
and are providing a new business
dynamic where IT takes a strategic
role in driving business innovation.
The Big Idea
OutSystems’ founders had previously worked
in building and delivering web applications for
enterprises in intranet and extranet contexts.
More often than not, those projects did not
go well. We discovered it was a rare occasion
when we could deliver any project on time
and on budget. Projects tended to drag on
Paulo Rosado through many months and when they were
CEO OutSystems finally delivered, the business had moved on
and the application no longer fulfilled their core
needs. After many unsuccessful attempts to
The statement we commonly hear improve the requirements gathering process,
is “I like what you are telling me, but we decided to look into the problem from a
it sounds too good to be true!” We often different perspective.
find in our sales process that people cannot Our assumption was that enterprise
understand how a company like OutSystems processes supported by web applications are
has managed to create such a broad and constantly changing. So when building such
unique product, display so many success cases an application we needed to be extremely
and solve, in one go, a myriad of pervasive fast and we needed to be flexible enough to
problems that have plagued the $800 billion IT correct any bad assumptions made during the
industry for years. requirements gathering phase. In order to
do that we looked into what it would take to
The bottom line, it just sounds make changing software fast and inexpensive,
“too good to be true.” effectively removing the cost of “feature creep”.

4. 04 Espírito Santo Ventures - Newsletter - 4th Quarter - October 2010
OutSystems Introduces for enterprise projects using Agile of a SOA BPM solution by the OMG and other
the Agile Platform methodologies where constant interaction industry veterans – all built with the Agile
The result was the construction of a between IT and Business is desired. Platform.
development platform that could automate
the process of software change in an easy, Today the Agile Platform has over First Customers
inexpensive, robust and fast way. The first 12,540 installations worldwide and In the first years, OutSystems focused on
version of the Agile Platform was released Mobile Telecoms in Europe. At the time,
in 2009 was recognized with a
in 2002 and paved the way for today’s very the telecom industry was very competitive
Codie Award for the Best Software
robust application delivery and management and IT departments were subject to an
platform. Development Solution and a unusual amount of pressure to provide
Our customers use the Agile Platform to Jolt Award for Enterprise Tools constant innovation and change. These early
address common information technology Productivity Award. This year SD customers brought with them high scalability
challenges such as: Times recognized OutSystems and and availability requirements and a zoo of
• Implementation of front-end applications the Agile Platform in their Top 100 legacy systems that required fast integration
(web sites, intranets, portals, CRMs, etc) that requirements. From 2001 to 2004, the Agile
software companies.
integrate with existing systems Platform was enhanced with new capabilities
• Deployment of complex business processes to address the needs of these early customers
that link multiple departments The Platform has also been reviewed across and now is used to deliver extremely high
• Replacement of old legacy software systems analyst and end user communities. Gartner performance web applications such as
that have reached the end of life recognized OutSystems as the most visionary TravelZoo’s Fly.com and Via Verde’s Customer
• Modernization of old software by refreshing company in Magic Quadrant for Application Portal.
what they have with a fresh new web 2.0 Infrastructure for SOA Composite Application Today our customers cite the following seven
User Interface projects. Numerous industry experts reasons as to why they selected and continue
• Companion to SAP implementations have reviewed the platform. Justin James to use the Agile Platform:
avoiding the need to customize SAP of TechRepublic titled his second, in depth 1 Fast release time – our customers
and assuring that upgrades can still be review, the “IDE of my Dreams”. Just recently, experience projects delivered 5 times faster
performed OutSystems’ Dutch customer VanAmeyde than when using traditional .Net or Java
• The platform is specially suited was recognized as having the best example development.
OutSystems Agile Platform

5. 4th Quarter - October 2010 - Newsletter - Espírito Santo Ventures 05
2 Predictable outcome – delivery is not only using our unique process based approach Expansion and Growth
fast but on-time and on-budget even in that applies a combination of near-shore and OutSystems has aggressively embraced
adverse situations. off-shore resources supported by our Agile the Web 2.0 world and invested in scaling
3 Keeping the business and IT aligned – our collaboration and management tools. These the business through providing prospective
customers deliver exactly what the business processes and tools provide a scalable delivery customers the ability to self educate and
wants and respond fast to change requests capability without having to incur large upfront prefer the Agile Platform using OutSystems’
4 High Productivity – results in a decreased offshore setup costs while overcoming the web site. Part of this strategy included the
project backlog problem of knowledge transfer and team development of our Agile Professional Center
5 Architecture Fit – simplify the reuse of turnover. to file requests and streamline the buying
legacy systems (e.g. ERPs) process. These investments are proving to be
6 Full control and management - more With 155 customers across 16 successful with OutSystems receiving more
visibility and control over the money you are different industries OutSystems has and more incoming requests from all over the
spending and the return on your investment world.
continued to grow and expand its
7 Easy to learn and operate – it is easy To support our growing community
customer base around the world. To
to adopt by IT and provides flexibility in OutSystems continues to invest in programs
team allocation and knowledge retention support the growing customer base to nurture developers and today has an active
/ transfer. It takes 2 weeks for a new staff in 2008 OutSystems revamped its network of users discussing topics online. In
member to get added to an OutSystems channel partner program and today addition, the OutSystems Academy provides
team when compared to 6 months for Java has 59 channel partners that provide access to a complete set of training courses to
or .Net team. a range of services to support the master our development tools and approach.
There are over 550 certified agile professionals
expanding customer base.
Serving Customers Worldwide, supporting our growing customer base. With
in an Agile Way increased market reach, streamlined sales
To effectively support a growing worldwide processes and strong partner community the
customer base, OutSystems’ has addressed company is poised to continue growing and
the challenge of delivering applications using capturing market share around the globe.
offshore development teams. Today we are
able to deliver fast and predictable solutions
Agile Platform Interface Some of OutSystems clients

6. 06 Espírito Santo Ventures - Newsletter - 4th Quarter - October 2010
SOME NOTES ON
ENTREPRENEURSHIP IN BRAZIL
Since colonial times, Brazil has always produced
entrepreneurs. Brazilians have a long tradition of
proactively seeking solutions to their problems and
continue to do so today. Since the 80’s, large companies
have been drastically reducing employee numbers and
entrepreneurship has emerged as a means of people re-
entering the job market and creating opportunities for
René Fernandes
Centro de Empreendedorismo Getúlio Vargas many to come every day to the productive age.
According to data from the 2008 Global introducing new products and services, new Another example is the world renowned
Entrepreneurship Monitor (GEM), organizational systems, and utilization of new “Buscapé”, a leading shopping comparison
released by SEBRAE (a Brazilian Service to resources and material. In 2009, the number website in Latin America, founded in 1999, that
Support Micro and Small Businesses), Brazil of opportunity driven ventures surpassed those received venture capital investment, bought
ranks 13th in terms of entrepreneurship out that were necessity driven. Brazil entered a other companies and was sold to the South
of a total of 37 countries. The GEM report new era characterized by a higher degree of African media group Naspers in 2009 for
also mentions that the rate of “total early- technological innovation and greater growth US$374M.
stage entrepreneurial activity” (TEA) in Brazil potential, as can be witnessed by recent
was 12.02, which means that for every 100 examples. In summary, over the past years there have
Brazilians, 12 held some kind of entrepreneurial been many cases of successful companies
activity. Ahead of Brazil in this ranking are In 2007, “Entrepreneur” magazine published created through opportunity. These companies
countries like the Dominican Republic (20.4%), a report about businessmen that were born will help Brazil to evolve, thus stimulating the
Peru (25.6%), Mexico (13.1%), Chile (13.1%) and as a result of business plan competition right environment fostering entrepreneurship:
Argentina (16, 5%), where a large amount of programmes. Among them stands Rodrigo
informal economic activity may be found. Veloso, the winner of a business plan incubators are being developed,
competition at FGV, called the “Latin Moot schools are changing their curricula,
Also according to data from SEBRAE, Corp” (www.latinmootcorp.org). Rodrigo was
many venture capital funds are
Brazil has over fifteen million later able to implement his plan thanks to
starting to operate in the country,
contacts that he made initially at the São
entrepreneurs that launched their the IPO market is growing and
Paulo leg of the competition and then at the
own businesses either driven by large companies are looking at new
global final at the University of Texas at Austin.
opportunity or by necessity. Until Soon after arriving at the contest, Rodrigo met investment opportunities.
2008, the latter was the most several investors that subsequently introduced
frequent. him to other venture capitalists and angel There are still some regulatory issues,
investors. After a little more than two years but these are being addressed and thus
In 1934, the Austrian economist Joseph in business, his company O.N.E. - One Natural the country is now better equipped to
Schumpeter identified the “Entrepreneur” Experience, was already making several million accommodate this new generation eager to
as the central character of economic dollars exporting coconut water, açaí juice and become entrepreneurs.
development and introduced him as a a few other natural products to the USA, and
disruptor of the existing economic order, by was eventually sold to PEPSI.

7. 4th Quarter - October 2010 - Newsletter - Espírito Santo Ventures 07
Recent News
YDreams Coreworks
(July 23, 2010) (September 10, 2010)
YDreams announced Coreworks and Xilinx recently announced
the availability of YVision Closed-Beta, a at the IBC2000 conference, the launch of
general purpose programming framework, a range of audio codecs supporting Dolby
to enable fast prototyping and development Digital, AAC+ for multimedia distribution
of multimedia applications using image infrastructure to the home and mobile, Dolby
processing, rendering, physics, augmented E for content providers and an MPEG-1 Layer
reality, artificial intelligence and others. II for professional distribution and in-Field
YVision Closed-Beta integrates the knowledge Programmable Gate Arrays (FPGAs).
that YDreams has been acquiring for almost Coreworks technology allows these codecs to
a decade. Currently reserved for a number of be implemented in a single FPGA, eliminating
restricted users, the platform will be made the need for DSP farms and reducing power
available to the developer community very consumption, costs and increasing the device
soon. density.
The codecs have been available since October
Multiwave 1st, 2010.
(September 01, 2010)
Multiwave announced the opening of its new Nanosolar
North American headquarters, in San Jose, (June 24, 2010)
California. This office will improve Multiwave’s The Nanosolar Utility Panel (the industry’s
ability to support its fast growing customer first solar power panel specifically designed
base, and will be reinforced by the presence for utility-scale deployment) made its first
of the company’s Vice-President for Sales and public debut in June at Intersolar Europe 2010
Engineering Directors. in Munich, Germany. Enjoying a premier display
area in Blitzstrom’s exhibit booth, Nanosolar
showcased its utility-scale panel as well as a
new video depicting footage of a Nanosolar
Utility Panel installation in Germany.

8. 08 Espírito Santo Ventures - Newsletter - 4th Quarter - October 2010
Outsystems Spectrum Bridge by up to 600MW. hours per year when fully
(August 05, 2010) (July 12, 2010) operational, contributing to the company’s plan
The OutSystems Agile Spectrum Bridge to expand global final cell annual assembly
Platform was selected as a Top 20 corporate announced a relationship with GE Energy to capacity to more than 760MW. hours by the
application in August 2010 by GetApp.com, the offer a new industrial data networking solution end of 2011. The opening of the Livonia factory
business software search engine. for use in mission critical applications in the comes just over a year after A123 was awarded
The Agile Platform is a complete solution to Utility, Oil & Gas, Water/Wastewater and Heavy a $249 million grant from the U.S. Department
develop, deploy, manage and change enterprise Industrial markets. of Energy (DOE) as part of the American
web applications. Thousands of corporate Deployment will be based on GE’s state-of- Recovery and Reinvestment Act to help the
IT professionals have already downloaded the-art MDS SD2 radio, using the licensed company execute its strategy to ramp up U.S.
the free Community Edition to speed-up 218-219 MHz Interactive Video & Data Service manufacturing capabilities to meet increasing,
and simplify the delivery of new enterprise (IVDS) spectrum, auctioned in 1994. The users market-driven demand for its innovative
applications. of these applications have been struggling to technologies.
This month, the Agile Platform ranked #4 as fulfill their growing spectrum requirements
the most downloaded corporate software and having the option to utilize 218-219 MHz Petra Solar
application. In 2009, the Agile Platform won the spectrum provides an ideal solution. (September 09,
Codie Award for Best Software Development Multiple 218-219 MHz licenses are currently 2010)
Solution, and the Dr.Dobbs Jolt Productivity available for immediate purchase or lease Sandia National Laboratories, a government-
Award for Enterprise Tools. on SpecEx.com (the spectrum database owned/contractor operated (GOCO) facility,
managed by Spectrum Bridge) and cover 20% has awarded a contract to Petra Solar’s Solar
Safety-Pay of the USA’s population in 6 of the top 10 NFL Energy Grid Integration Systems (SEGIS) as
(September 02, 2010) markets, including Chicago, Washington DC, part of a program from the U.S. Department
SafetyPay was featured in the August 2010 Philadelphia and Miami. Furthermore, SpecEx. of Solar Energy Technologies. As a result,
issue of The Nilson Report, the world’s most com also has AMTS spectrum and 220 MHz federal funding granted to this cleantech
renowned source of news and proprietary spectrum listed for near nationwide spectrum company that pioneered the smart solar-on-a-
research on consumer payment systems. coverage for the 217-222 MHz range. pole technology, now amounts to $5.8 million.
The article in the Nilson Report entitled With this contract, Petra Solar will extend
“SafetyPay Web Merchant Payments” explains A123 Systems its development of electric-grid stabilization,
how SafetyPay facilitates transactions (September 13, 2010) micro-grid and smart grid technologies thereby
between suppliers and banks through an A123 Systems announced enabling utilities to manage the massive
online banking platform. With a leader article the grand opening of increase in renewable energy deployment
on the front page, The Nilson Report directs the largest lithium-ion automotive battery which is forecast due to the increasing need for
the reader to the main article which, among production facility in North America. The alternatives to fossil fuels.
other information, announces the launch of new plant in Livonia, Michigan, is expected
SafetyPay’s first supplier pilot test in the U.S. to expand A123’s manufacturing capabilities