This document provides guidance on strategic financing plans and pitching plans to investors. It discusses determining how much capital to raise initially and in the future to fund business needs. It also covers dilution impacts, credibility with investors, the fundraising sales process, marketing materials, pitch deck organization and content, and presenting to investors. Key recommendations include raising the least capital needed, being forthright about risks and unknowns, and tailoring materials for specific investors while maintaining consistency.

1. THE CAPITAL NETWORKRoundtable Breakfast - Pitching the PlanJanuary 12, 2010

2. Strategic Financing Plan & ExecutionHow much outside capital should you raise now?

3. Generally - the least capital you need to get to next major valuation milestone (with 90-120 day / 10-20% cushion). You need enough cash to:

4. Hire critical team members

5. Attract Customers / Convert beta customers to paying customers

6. Acquire critical technologies, systems and resources

7. Cover 4-6 months of cash burn (not accounting expense)

8. Deal with unanticipated opportunities or setbacks

9. Counterpoint: Consider the time cost & disruption of raising capital incrementally

10. Optimizing capital raised for:

11. Business Outcomes (Business Growth / Market leadership / Flexibility

12. Personal Outcomes (Wealth / Control / Operating Role)Strategic Financing Plan & ExecutionHow much capital will you need later?

13. Continued R&D

14. Sales and R&D Development Teams

15. Sales and Marketing Efforts

16. Growth and Expansion

17. Impact on valuation and dilution

18. Debt vs. Equity

19. Strategy > Optimum investor base

20. Funds

21. Groups

22. Individuals

23. Friends & FamilyStrategic Financing Plan & ExecutionDilution Impact Comparison – Assume you need $4m over 2 years. CREDIBILITYCredibility is critical in fundraising – it leads to investor confidence, lower risk assessments and ultimately fundraising success. Honesty – Don’t make up answers, information, customers, results, etc.

24. Authenticity – Be genuine: Tailor your messaging not your company, your ethics, your vision or your passion.

25. Forthrightness – Be upfront with the problems, risks and unknowns – “I don’t know” is a better answer than B.S.

26. Confidence – Have confidence in the vision and in your ability to assess and overcome the problems, risks and unknowns.

27. Humility– Accept that you don’t know everything – learn from everyone (including investors) and from every meeting.

28. Passion – Be passionate about the problem, your solution, your team and your vision - not about the money you will make. The Fundraising Sales ProcessFinancing Plan

29. Identify optimal (and backup) potential investors

30. Gather direct and indirect contact information

31. Prioritize Prospects