uTest CEO Doron Reuveni's presentation for Dogpatch Labs, 2011

1. Taking Your Startup to the Next LevelOne CEO’s Story – April 1st, 2011Doron Reuveni | CEO & Co-Founder | doronr@utest.com

2. Who We Are 37,000+ professional testers from 174 countries Thousands of test cycles Raised $20.5MM from top VCs Hundreds of elite recurring customers Public-facing web, desktop & mobile apps Enterprises, startups, universities & NPOs 1

3. Sample Customers 2

9. Enables flexible and scalable addition of localization support on demand3

10. << BUT LET’S REWIND

11. How Did We Get Here? Knew testing space well Understood the pain Had experienced the pain, cost and frustration of testing software via traditional means I was doing everything right In-house testing Outsourced partners Test automation Documentation Yet, unexpected defects still emerged when we launched our apps and put them in users’ hands 5

12. The “Aha” Moment Premise: What if we moved testing into the wild so it would be closer to the end users of an app? Conclusion: Best way to achieve was via crowdsourcing This would (theoretically) enable firms to launch apps: Tested “in-the-wild” Vetted by real users Ready for primetime 6

13. EARLY DECISIONS ARE KEY

14. Market To Go After First 1st Key Decision: Functional or Usability Testing? Trying to do both at once was too big 8

15. 2nd Key Decision: Whether to bet on something as unproven as crowdsourcing 9

16. 3rd Key Decision: How to turn a crowd… 10

17. Into a predictable, orderly community? 11

18. KEY STARTUP LESSONS

19. 1. Focus Is Critical When things are going well, opportunities abound Stay on the critical path We say ‘no’ more than we say ‘yes’ We started with functional test and focused on our community We knew functional better More pain-driven than usability Larger market opportunity Promise-keeping (community) is vital 13

20. 2. Just Do It While you’re off refining your business plan, someone else may be launching your idea Finalize your business plan in parallel to: Actual prototyping Engaging with prospects Interviewing stakeholders Getting market feedback 14

21. 3. Stay Lean Initially, we even outsourced software development to maximize speed & minimize cost 15

22. 4. Expect The Unexpected Business model maywill evolve Be ready to iterate on all fronts uTest created a new category, so we had no one to follow – high risk & high reward Listen to your customers Get feedback from the market They will tell you: How they want to interact What features they want What’s “good enough” 16

23. 5. Make Some Noise 17 Awards Media Coverage

24. FUND-RAISING: LESSONS LEARNED

25. Start Small Consider angels – raise the money absolutely needed to safely get you to your next phase Take a bigger round (if necessary) when you’re getting market traction Get revenue in the door ASAP 19

26. Raising VC Funds My Lesson: I went to VCs too soon VCs Can Help With: Refine your idea, business model, go-to market strategy Give you perspective (they see lots of business plans) Honestly set expectations (theirs and yours) VC Do Not Help With: Jump into completely new business models with no proof points or tail lights to follow Making the ultimate decisions – it’s your baby 20

27. When Choosing VCs After making good progress with your seed money, good VCs complement angels will help you Make connections with prospects Grow management team Build the brand Do your research Go with your gut 21

28. Negotiating With VCs Create competition – to get the best terms, never rely or focus on only one VC Terms matter – its not just about the money but the terms that come with the deal Every round is an opportunity to improve terms You’re dealing with people at the end of the day: You need to feel comfortable with terms andthe people They need to believe in your core idea They need to believe in you 22

29. ABCs of Funding Rounds (for uTest) Seed & A round Prove the concept (technology, basic model) Find & serve customers Identify competencies which will differentiate you B round Bring core competencies in house: dev, sales, marketing Understand key metrics (LTV, CAC, ROI) Build out management team C round Scale operations Increase spend Drive customers & revenue 23

30. ARE YOU READY TO SCALE?

31. Predictability & Visibility From single solution to a suite of testing services Model has become highly predictable Crack the code on marketing, sales, retention, etc Understand the KPI of your business Can you put $100 in and take $200 out? Customer retention continues to rise Customer LTV continues to rise Greater predictability  greater willingness to invest Since C round, investing aggressively in growing mindshare and marketshare 25

32. And Now Crowdsourcing Is Accepted 26

33. Summary Entrepreneurship is a journey Every biz has peaks and valleys Don’t get hung up on mistakes or failures – learn from them Tap your network Find CEOs and advisors who’ve been there No one knows everything – but you can find people to help Know thyself Play in spaces you know Understand your individual strengths & weaknesses Surround yourself with smart, passionate people Have some fun It’s an adventure… If you can’t enjoy that, it might not be for you Seek out kindred spirits as your co-founders and early hires 27

34. QUESTIONS? Doron Reuveni | CEO & Co-Founder | uTest, Incw: www.utest.com e: doronr@utest.comp: 1.800.445.3914