Nasscom Product Conclave & Expo 2009 at Bangalore

by Amit Ranjan on Oct 10, 2009

spot_product_conclave NASSCOM is organising its two day product conclave at Bangalore on 27-28 October. This is an annual event and this year’s show seems to be building up to a really tempting fare. The speaker list includes Guy Kawasaki, Kiran Karnik amongst a host of other industry hotshots. Apart from panel discussions, the program schedule includes four workshops:

Evangelising and Selling the Dream-
Learn how to use use secular evangelism to get customers, employees, and partners to believe in your product. It charts a complete course for the beginner evangelist covering how to define a cause, how to identify good and bad enemies, how to deliver an effective presentation, and how to find, train, and recruit new evangelists. This is by Guy Kawasaki.

The art of writing a business plan- Writing a business plan is often a giant obstacle for an entrepreneur. This high energy workshop will demystify the process by outlining a logical sequence of thinking through all aspects of starting a business. It will use real-life business plan examples and will provide a detailed outline of all sections that are needed. It will also tell what should not be in a business plan.

Marketing and branding strategies for product companies
- This workshop is about using creative and innovative marketing strategies that will help your product achieve notoriety. It addresses positioning, channel management, promotion, and online advertising.

Go-To-Market strategies for product companies.

The registration details are here.

This is a great opportunity for tech companies to participate and learn from the experience of others. You could also participate in the product showcase.

India Online 2.0 handbook

by Amit Ranjan on Aug 17, 2009

Sharing this awesome resource about the Indian online space. This captures lots of interesting datapoints… the great thing about this deck is that it lays down some of its postulates in a visual & reader friendly format.

N1H1 Virus (Swine Flu) & Social Media…

by Amit Ranjan on Aug 11, 2009

Check out this excellent presentation about the current status of the Swine Flu epidemic in India. The deck captures the reported cases, the measures taken by the government to control the flu, symptoms of the ailment and what to do in order to avoid or control it. This was created by Abhishek Shah from Mumbai and uploaded to SlideShare… sharing it here for everyone’s benefit

India & N1H1 Virus (Swine Flu) - Presentation Transcript

1. total confirmed cases worldwide 162380 * Last Updated Date and Time, 09/08/2009 (13:12 IST) ** Source: WHO, Indian Media Reports
2. total confirmed cases worldwide 162380 total deaths worldwide 1154 * Last Updated Date and Time, 09/08/2009 (13:12 IST) ** Source: WHO, Indian Media Reports
3. total confirmed cases worldwide 162380 total deaths worldwide 1154 total confirmed cases in india 721 * Last Updated Date and Time, 09/08/2009 (13:12 IST) ** Source: WHO, Indian Media Reports
4. total confirmed cases worldwide 162380 total deaths worldwide 1154 total confirmed cases in india 721 total deaths in india 4 * Last Updated Date and Time, 09/08/2009 (13:12 IST) ** Source: WHO, Indian Media Reports
5. swine flu is spreading
6. “33% indians likely to get h1n1”: union health minister ghulam nabi azad But most people would suffer only mild symptoms of the disease, he added.
7. what is our government saying?
8. “It’s a global pandemic. If countries across the world - around 168 till now - are suffering from a H1N1 outbreak, so will India”.
9. “there is no need to panic as India is still much better off than most countries across the globe who ha been hit harder by the pandemic”. ve
10. “We will see many more positive cases of H1N1 infection and maybe more deaths, exactly similar to what is happening across the globe. The virus is highly contagious. People should self report and not wait for government to track them down”.
11. “it hasn’t even reached the pandemic stage in India. We ha been able to keep the virus quiet ve for so long, the industrialized countries such as UK, US, Canada, Australia and Argentina were reporting positive cases in lakhs every week”.
12. “In England, there were 30,000 cases of H1N1 last week and 1.10 lakh cases the week before. Around 36 people ha died there so far. ve In Argentina, they ha registered a total of 7.62 ve lakh cases of flu of which 93% are H1N1 infections. They ha had 337 deaths”. ve
13. “The US, which has stopped recording positive cases, has at present 6,506 people hospitalized with H1N1 infection and 436 deaths. In Australia, there are around 30,000 confirmed H1N1 cases with 85 deaths”.
14. india’s answer to n1h1 (swine flu)
15. “two of India’s innovative interventions - entry screening at airports and ports and mass scale contact tracing - ha proved a sa ve ver. “ r else, by O now we would ha had crores of H1N1 infected ve people”.
16. “We ha till now screened over 45 lakh passengers ve in 22 international airports. Every third H1N1 positive case in India was identified through airport screening. And then we tracked down every single person the infected patient may ha come in contact with, looking ve for H1N1 symptoms in them. Till now, over 8,000 contacts of infected patients ha been traced and given prophylactic ve treatment besides those who were found to be H1N1 positive”.
17. “Till now, it is clear that the virus is city centric. Not a single case has come up from the villages. Shutting a school wouldn’t mean you can stop students from attending parties and meeting friends in the evening where they can get the infection. Schools must stay open”.
18. steps by the indian government to check n1hi (swine flu)
19. ?More thermal scanners at all international airports in the country, besides Delhi. They would be installed on an emergency basis.
20. ?More thermal scanners at all international airports in the country, besides Delhi. They would be installed on an emergency basis. ?The national stockpile of Oseltamivir or Tamiflu will be increased by another 20 million capsules.
21. ?More thermal scanners at all international airports in the country, besides Delhi. They would be installed on an emergency basis. ?The national stockpile of Oseltamivir or Tamiflu will be increased by another 20 million capsules. ?The testing capacity of existing 19 designated laboratories would be doubled.
22. ?More thermal scanners at all international airports in the country, besides Delhi. They would be installed on an emergency basis. ?The national stockpile of Oseltamivir or Tamiflu will be increased by another 20 million capsules. ?The testing capacity of existing 19 designated laboratories would be doubled. ?Guidelines for granting approval to private diagnostic laboratories for testing influenza A H1N1 ha been finalised ve and communicated to the states. Only labs that conform to these guidelines would be allowed to testing for influenza A (H1N1).
23. ?More thermal scanners at all international airports in the country, besides Delhi. They would be installed on an emergency basis. ?The national stockpile of Oseltamivir or Tamiflu will be increased by another 20 million capsules. ?The testing capacity of existing 19 designated laboratories would be doubled. ?Guidelines for granting approval to private diagnostic laboratories for testing influenza A H1N1 ha been finalised and communicated to the states. ve Only labs that conform to these guidelines would be allowed to testing for influenza A (H1N1). ?Teams of senior officers from the central government will visit every state headquarter to assess the preparedness in terms of isolation capacity and clinical assessment in different hospitals both in the private and government sectors.
24. ?More thermal scanners at all international airports in the country, besides Delhi. They would be installed on an emergency basis. ?The national stockpile of Oseltamivir or Tamiflu will be increased by another 20 million capsules. ?The testing capacity of existing 19 designated laboratories would be doubled. ?Guidelines for granting approval to private diagnostic laboratories for testing influenza A H1N1 ha been finalised and communicated to the states. ve Only labs that conform to these guidelines would be allowed to testing for influenza A (H1N1). ?Teams of senior officers from the central government will visit every state headquarter to assess the preparedness in terms of isolation capacity and clinical assessment in different hospitals both in the private and government sectors. ?To ensure availability of adequate testing reagents, it was decided that another 22,000 kits would be procured immediately in addition to the 27,000 kits recently procured.
25. ?More thermal scanners at all international airports in the country, besides Delhi. They would be installed on an emergency basis. ?The national stockpile of Oseltamivir or Tamiflu will be increased by another 20 million capsules. ?The testing capacity of existing 19 designated laboratories would be doubled. ?Guidelines for granting approval to private diagnostic laboratories for testing influenza A H1N1 ha been finalised and communicated to the states. ve Only labs that conform to these guidelines would be allowed to testing for influenza A (H1N1). ?Teams of senior officers from the central government will visit every state headquarter to assess the preparedness in terms of isolation capacity and clinical assessment in different hospitals both in the private and government sectors. ?To ensure a vailability of adequate testing reagents, it was decided that another 22,000 kits would be procured immediately in addition to the 27,000 kits recently procured. ?Three Indian companies are already working for development of vaccines for influenza A H1N1.
26. ?More thermal scanners at all international airports in the country, besides Delhi. They would be installed on an emergency basis. ?The national stockpile of Oseltamivir or Tamiflu will be increased by another 20 million capsules. ?The testing capacity of existing 19 designated laboratories would be doubled. ?Guidelines for granting approval to private diagnostic laboratories for testing influenza A H1N1 ha been finalised and communicated to the states. ve Only labs that conform to these guidelines would be allowed to testing for influenza A (H1N1). ?Teams of senior officers from the central government will visit every state headquarter to assess the preparedness in terms of isolation capacity and clinical assessment in different hospitals both in the private and government sectors. ?To ensure a vailability of adequate testing reagents, it was decided that another 22,000 kits would be procured immediately in addition to the 27,000 kits recently procured. ?Three Indian companies are already working for development of vaccines for influenza A H1N1. ?It is for the states to decide about closure of schools after assessing the situation prevailing in the affected areas.
27. symptoms & precautions
28. Symptoms In children ?Fast breathing or trouble breathing ?Bluish or gray skin color ?Not drinking enough fluids ?Severe or persistent vomiting ?Not waking up or not interacting ?Being so irritable that the child does not want to be held ?Flu-like symptoms improve but then return with fever and worse cough
29. Symptoms In Adults ?Difficulty breathing or shortness of breath ?Pain or pressure in the chest or abdomen ?Sudden dizziness ?Confusion ?Severe or persistent vomiting ?Flu-like symptoms improve but then return with fever and worse cough
30. Precautions: Lessen Spread of Flu at Home ?keep the sick person away from other people as much as possible (see “placement of the sick person” – next slide) ?remind the sick person to cover their coughs, and clean their hands with soap and water or an alcohol-based hand rub often, especially after coughing and/or sneezing. ?ha everyone in the household clean their hands ve often, using soap and water or an alcohol-based hand rub
31. Placement of sick person ?Keep the sick person in a room separate from the common areas of the house. (For example, a spare bedroom with its own bathroom, if that’s possible.) Keep the sickroom door closed. ?Unless necessary for medical care, persons with the flu should not lea the home when they ha a ve ve fever or during the time that they are most likely to spread their infection to others ?Ha the sick person wear a surgical mask if they ve need to be in a common area of the house near other persons. ?If possible, sick persons should use a separate bathroom. This bathroom should be cleaned daily with household disinfectant
32. Protect other person at home ?A phone call is safer than a visit. ?If possible, ha only one adult in the home take ve care of the sick person. ?A void ha ving pregnant women care for the sick person. ?All persons in the household should clean their hands with soap and water or an alcohol-based hand rub frequently, including after every contact with the sick person or the person’s room or bathroom. ?If possible, consideration should be given to maintaining good ventilation in shared household areas (e.g., keeping windows open in restrooms, kitchen, bathroom, etc.).
33. If you are a care giver ?Avoid being face-to-face with the sick person. ?When holding small children who are sick, place their chin on your shoulder so that they will not cough in your face. ?Clean your hands with soap and water or use an alcohol-based hand rub after you touch the sick person or handle used tissues, or laundry. ?Talk to your Doctor about taking antiviral medication to prevent the caregiver from getting the flu. ?Monitor yourself and household members for flu symptoms and the local H1N1 Command Center if the symptoms occur.
34. Household cleaning & waste management ?Throw away tissues and other disposable items used by the sick person in the trash. ?Wash your hands after touching used tissues and similar waste. ?Keep surfaces (especially bedside tables, surfaces in the bathroom, and toys for children) clean by wiping them down with a household disinfectant according to directions on the product label. ?Linens, eating utensils, and dishes belonging to those who are sick do not need to be cleaned separately, but importantly these items should not be shared without washing thoroughly first.
35. Let’s fight it out. Together we can.

Nokia N97 - Has Nokia played it’s trump card already?

by Gaurav Gupta on Aug 10, 2009

n97 We happened to get a test piece of the recently launched Nokia N97 after attending the Nokia N97 Bloggers Meet at Delhi a few days back. The Nokia N97 arrived at just the right time - I recently did away with my Nokia E90 communicator and was looking forward to my next smart device - And for a change, there were only a few models which I was considering, which included the iPhone 3GS, Nokia N97, Blackberry Bold and a few recent models from Samsung and HTC.

The first thing you will notice about the N97 is its size – It is nice and compact, exactly as long as iPhone, but not as wide. The phone provides a good, non slippery grip. Slide it into a jeans pocket and it feels “just right”. The physical QWERTY keyboard comes out in a snap… I almost dropped the phone the first time I opened the keyboard. But once its there, it fits perfectly into positioning and does not tend to slip back. Key size and spacing is comfortable, good for typing long emails. However, the 4 way direction key is on the left, which could be problematic if you are used to navigating a phone’s menu with your right thumb. The spacebar is oddly placed but I got used to it in sometime.

The screen is resistive touch, not the capacitive touch found in the iPhone and a few upcoming models from Samsung and HTC. So if you’re used to the touch screen on your iPod touch, you’ll initially find it difficult to use but will get used to it in a couple of hours, after which you can sense where and how hard you need to press to navigate through the menu. I must add that using the touch screen with the stylus was still much easier than using my fingers.

Then there’s Ovi, Nokia’s first attempt to provide downloadable apps right from the phone, which is obviously inspired by the popular App Store by Apple. Apps did exist for all Symbian devices even before Ovi, but there was no one place to find them. One typically had to download apps from specific websites, or download them to the PC first and then install it on the phone. The experience of the Ovi store on the N97 was better than on the E90. But the app quality and numbers are no-where in comparison to Apple. One needs to browse and try a few of them to sort the good ones from the bad ones.
Some apps are preloaded, including Facebook, YouTube, RealPlayer, JoikuSpot (an amazing software to convert your phone into a Wi-Fi hotspot) etc. The one thing I like about Nokia devices is that they make the home screen actually useful, compared to the iPhone where all you see is just the menu.

The good things:

+ Lots of internal memory (32GB) expandable up to 48GB via a memory card
+ OTA (Over the air) software updates, which is nothing new but still cool to have
+ FM transmitter cum receiver, which provides an amazing way to couple it with your car’s stereo system
+ Customizable home screen (with “widgets”), not just a “active standby” like other Nokia devices
+ 5 mega pixel camera with flash
+ A much better browser compared to previous Nokia models, although panning and zooming is not as cool as the iPhone

The not-so-good things:

- Inconsistent UI - Some features work on a single click and some work on a double click. Confusing at times
- Scrolling menu’s with finger touch is terribly hard. Have to either use a stylus or pull out the keyboard
- Green/red calling buttons are not sensitive enough. Since the UI does not respond very quickly, it’s hard to guess whether you’ve pressed the button or not
- Stylus does not slide into the main device
- Symbian OS just doesn’t seem right for a touch screen device. But don’t think Nokia will ever have much of a choice here, considering their recent acquisition of Symbian worth half a billion dollars
- On screen keyboard is not full QWERTY, Therefore, typing on a full QWERTY keyboard with one hand (like say, E71 or the iPhone) may not be possible
- Terribly expensive at Rs. 36000. Nokia, what were you thinking?

The perception of a mobile phone has dramatically changed after the iPhone. Nokia’s tagline “Live online 24×7″ is exactly what people now want to do on their mobile phones. The N97 did a lot of things right but still there is no one-thing which I can call an iPhone killer.

Apple’s iPhone has set the direction and is of course the clear winner in the segment right now. But the exciting part is that the competition is yet to open up. Everyone is warming up for this big battle of becoming the #1 in this space. Google’s Android platform, the newly launched Palm Pre and a few upcoming models from Blackberry are certainly worth keeping a lookout for. Samsung and HTC are also trying for the top-spot with their Windows mobile range. Has Nokia played its trump card with the N97? Or is there more to come?

Final verdict? The N97 was a good first attempt but I am sure Nokia can do better than this. C’mon Nokia, yes you can. We know it. Come back stronger tomorrow. Shock us. Put us in awe. You need to prove the world that it’s not just hard but impossible to beat the #1 in the world (or else, its Game Over).

Aircel’s innovation in Mumbai rains

by Amit Ranjan on Jul 25, 2009

Aircel in Mumbai came up with this innovative mix of Marketing + CSR (Corporate Social Responsibility). This unique idea (and its implementation) deserves appreciation as it helped the Mumbaikars during the recent rains.

If you have come across any such example of innovation or company CSR…. in the hour of need, please do share.

Use Twitition to make Continental Airlines apologise for Abdul Kalam’s frisking

by Amit Ranjan on Jul 22, 2009

Incensed by the reported frisking of former Indian President Dr Abdul Kalam by Continental Airlines, this Twitition is urging Indians to tweet their way to get Continental to apologise. Started by Arvind, a blogger from Coimbatore, the petition goes as “I am sure you read our former President APJ Abdul Kalam was frisked by bunch of Continental Airlines staff in name of security. What if Clinton was frisked in India? Can our Air India or Jet Airways even dare, is our country not terrorist target? Let’s ask Continental Airlines to apologize!”.

If you think alike, head here and tweet the twitition.

Twitition incidentally is a combo of Twitter+petition.

Mallika Sehrawat at the Twitter office in San Francisco. And what this means for Twitter?

by Amit Ranjan on Jul 18, 2009

The tip off for this story actually came from my wife when she mentioned that Mallika Sehrawat visited the Twitter office in San Francisco. That had me searching Google and chanced across the above video where she is seen dancing with Twitter employees. And as this report indicates, this looks like a staged event wherein Mallika arrived at the Twitter office in a “stretch limousine, with fans and media channels waiting outside for her.” This must be good for Twitter and great for Mallika! While this “event” was probably arranged by the actresses’s publicists or managers, it is not entirely insignificant. For this is a healthy sign that Twitter is reaching critical mass and has managed to break beyond the early tech adopter crowds. When you start being used by movie stars in a developing country (and a far less tech oriented society in general), it’s an indicator that you appeal is broadbased enough to go beyond technology crazed initial users. This is a positive development for Web 2.0 in general. Amongst the plethora of Web 2.0 services that abound, very few have actually manged to scale this barrier.

800px-technology-adoption-lifecycle

As Geoffry Moore’s Technology Adoption Life cycle indicates, technological innovations need to make a jump from the early tech adopters to the phase called the early majority. And if that jump is successful, the innovation is likely to attain critical mass (the area under the curve indicates the no of users… and the area under early majority is far bigger than that under early adopters). Mallika Sehrawat (representing Bollywood in general) is a symbol of the early majority as movies are mainstream entertainment. For Mallika, her Twitter usage conveys a “I’m tech savvy and abreast of the latest” message to her core audience. For Twitter, this is significant because someone like Mallika considers Twitter an important enough channel to use in reaching out to her followers.

Amongst the popular Web 2.0 (popular amongst the early tech adopters, I mean) services, I think there are just three (yet!) that have managed to crash this barrier - Youtube, LinkedIn & now probably Twitter. Youtube is almost becoming like a cultural thing now - last weekend I happened to visit a fairly nondescript, beaten down cybercafe near my house in Delhi and out of the ten surfers in the cybercafe while I was there, four of them were watching Youtube videos! And none of those guys looked computer buffs/nerds to me. LinkedIn too is being used far beyond the initial adopters.

My SlideShare experience: With SlideShare, we try to keep track of the user segments that are using the service. The bulk of our users are businesses, corporates, tech folks, educators etc. Lots of others use slideshare as well but let me mention some of the curious ones in that list - gardeners, real estate agents, religious preachers and missionaries… some of these users are clearly beyond the early tech adopters as well. One small victory for SlideShare happened recently when the White House started using SlideShare (though I would still consider them an early adopter).

Excellent resource for foreigners/NRIs wanting to work in India

by Amit Ranjan on Jul 15, 2009

This is a very useful resource for expatriates who are coming to work to India. Released by Ernst & Young, this document contains pointers towards matters such as residency, taxation, banking, remittance etc. Check it out below.

Humour: Should I give this spammer a dose of his own medicine?

by Amit Ranjan on Jul 11, 2009

Of all the spam that comes regularly in my email accounts, this one really drive me wild. Normally hitting the junk or delete icons in Thunderbirds is my instinctive reaction; but with this email, I actually have to stop myself from hitting the reply button and saying “you know what… I could send you millions of those.. and all free… want to compete with me?”

I am referring to this spam mail below; take a quick look.. this is some guy selling PowerPoint presentations in a CDROM for 399/- They apprently the CD by VPP. Not sure why, but this guy seems to be spamming me almost on a daily basis.

spam1

Should I give this guy a taste of his own medicine:)

VC & Startup Founders saga continues

by Amit Ranjan on Jun 14, 2009

You might have already caught these on TechCrunch (in separate back to back articles). I just thought of sharing both the decks together for those who missed it.

The first of these decks is titled VC Non Admissions. The deck was adapted from a thread on ExpertCEO contributed by a range of CEOs and VCs about the top twelve things you’d never hear a VC say.

The reply came fast. And it was titled Founders Non Admission.

All for friendly, tongue-in-cheek banter, though some of the pointers are soul searching (on either side)

NVCA 4-Pillar Plan to Restore Liquidity in the U.S. Venture Capital Industry - Presentation Transcript

1. NVCA 4-Pillar Plan to Restore Liquidity in the U.S. Venture Capital Industry April 29/30, 2009 Dixon Doll DCM Co-Founder and General Partner, NVCA Chairman Mark Heesen NVCA President 1
2. Reinvigorating Liquidity in the U.S. VC Industry The Background The Situation The Solution Liquidity Challenges ? Job Creation Lack of IPOs Is ? Harmful to Job Innovation Creation and Overall Economy I II III IV Ecosystem Enhanced Taxation Regulation Partners Liquidity Comprehensive ? Paths Review of VC Ecosystem Is Required to Reinvigorate Our VC Industry U.S. Government Industry (once Financial Crisis & IPO Markets Stabilize) Drought Revealed Systemic Issues 2
3. Venture Capital Fuels Job Creation VC-Backed Companies 92% of Job Growth Create Jobs Faster Occurs Post-IPO Employment CAGR (2006 – 2008) VC-Backed Company Employment Growth 97% 94% 88% 76% 92% Pre-IPO Post-IPO 12.1M Jobs Created Sources: Left: Global Insight, 2009 Right: NVCA, Global Insight and Survey of Top 136 VC-Based Companies That Went Public 1970–2005 3
4. Numerous World-Leading Companies Were First Funded or Founded During Downturns 1970s 1980s 1990s 2000s F 4
5. Dramatic Decline in IPOs in the 2000’s Number of Venture-Based IPOs vs. M&A Exits 2000s 1990s 1,776 392 IPOs M&A IPOs M&A 13% 87% 56% 44% IPOs IPOs (’01 – ’08) (’92 – ’00) Lack of IPOs Is Harmful to Job Creation and Economy Source: Thomson Reuters/NVCA 5
6. IPOs in Decline This Decade Number and Value of Venture-Backed IPOs in the U.S. Number of IPOs IPO Value ($B) * Base Year 1998 = 100 Sources: Qatalyst Partners, Securities Data Company (All U.S. venture-backed IPOs of > $10MM from 1978 through 1991) Dow Jones VentureSource (All U.S. venture-backed IPOs from 1992 through December 31, 2008) 6
7. The Recent Realities of Venture-Backed M&As and IPOs Longer Time to IPO and M&A Median Age at IPO 4.5 9.6 Years Years 1998 2008 Median Age at M&A 3 6.5 Years Years 2008 1998 Source: Thomson Reuters, Dow Jones VentureSource 7
8. The Death of the Under $50M IPO 100 90 Transactions Raising $50M+ 80 70 60 Percent of 50 Total IPOs 40 30 20 Transactions Raising Less Than $50M 10 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008* 80% of IPOs 20% of IPOs Smaller than $50M Smaller than $50M *Data Includes Corporate IPOs as of 10/31/08. (Excludes Funds, REITs, SPACs and LPs). Source: Dealogic, Capital Markets Advisory Partners 8
9. NVCA 4-Pillar Plan to Restore Liquidity in the U.S. Venture Capital Industry Job Creation Innovation I III II IV Ecosystem Tax Enhanced Regulation Partners Incentives Liquidity Paths VC Industry U.S. Government 9
10. NVCA Plan: Pillar I – Ecosystem Partners Job Creation I-Banks Innovation VC Firms Buy Side Ecosystem I III II IV Partners Entrepreneurs Exchanges Ecosystem Tax Enhanced Regulation Partners Incentives Liquidity Paths Accounting Law Firms Firms VC Industry U.S. Government 10
11. I A Vacuum Exists for Small, Medium-Size Company IPOs Implicit Post-IPO Company Valuation ($MM) Boutique banks needed to help cover unserved areas $500 Would You Consider a Boutique I-Bank To Be the $400 Lead Book Runner for Going Public on a U.S. Stock Exchange?* $300 NO MAN’S LAND $200 32% 32% No Not Sure 36% $100 Yes IPOs not Appropriate $0 * Source: DCM Analysis / $25 $50 $75 $100 Survey of Venture-Backed Companies, 2009 – Size of IPO Offering ($MM)1 Participants (N) = 108 21st Century Versions of “4 Horsemen” Required : Assuming 25% of Company Sold in IPO 1 11
12. Major I-Banks and Big 4 Accounting Firms I Dominate U.S. IPOs Recent VC-Backed IPOs Nov. 2007 Feb. 2009 IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO IPO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 I-Bank at IPO Audit Firm at IPO Investment Bank Audit Firm IPO Managed by Major I-Banks Traditional Big 4 IPO Co-Managed by Boutique and Major I-Banks Traditional Non-Big 4 IPO Managed by Boutique Bank Only 15 Out of 21 Recent IPOs Led by Major I-Banks and Big 4 Accounting Firms Source: NVCA, Thomson Reuters 12
13. I Accounting Firms Examined More Closely NVCA Recommends Use of New Terminology “The Global Six” in Describing Major International Accounting Organizations Qualified to Support Venture-Backed Portfolio Companies The Global Six Deloitte LLP KPMG LLP ? ? Ernst & Young LLP PricewaterhouseCoopers LLP ? ? Grant Thornton LLP BDO Seidman LLP ? ? Recent Research Performed by Capital Markets Advisory Partners (an Independent Advisory Firm) and Validated by the Above Six Firms, Shows All Six Organizations Have Created Global Accounting Networks Operating in More than 90 Countries Worldwide.* * Source: “Which Audit Firms are Accepted by Wall Street? A Reference Guide by Capital Markets Advisory Partners, 2009, Version 1.0 13
14. I NVCA Promoting Alternate Ecosystem Partners Investment Banks Accounting Firms NVCA Organizing Workshops NVCA Meeting with “Global Six” ? ? With Boutique Banks and Large Accounting Firms to Discuss Facilitate I-Banks to Identify and Address Needs of VC-backed Companies Needs of Emerging Growth and Ways To Provide Better Companies Worldwide Support NVCA Encourages Joint Book NVCA Encourages Obtaining ? ? Running (Major Bank and Bids From Global Six and Non- Encourage Boutique Bank Partnership) with Global Six Accounting Firms as Fee Sharing as a Desirable Desirable Practice in IPO Practice Planning NVCA Actions Can Create More Competitive Ecosystem 14
15. I Other Ecosystem Partner Recommendations I-Banks and VCs need to cultivate and ? nurture new buyers / funds specializing in venture IPOs Accounting Firms encouraged to ? provide lower-cost services to IPO candidate portfolio companies 15
16. NVCA Plan: Pillar II – Enhanced Liquidity Paths Job Creation Innovation I II III IV Ecosystem Enhanced Tax Regulation Partners Liquidity Incentives Paths VC Industry U.S. Government 16
17. II Current Liquidity Mechanisms Public Sellers Current I-Banks Market Buyers (Portfolio Companies) (Institutional/Strategic) Too Many Public Market Jitters Restricted Analyst and ? ? ? Companies Below I-Banker Collaboration Short Selling Increases ? Critical Mass Market Volatility Undergoing Massive ? Too Few Organizational Changes ? Minimum Bite Size ? Transformative Due Diligence Burden Companies ? Distribution System Is Broken 17
18. II Enhanced Liquidity Mechanisms In Addition to Major I-Banks we Need Innovative Boutique Banks ? Serving Emerging Growth Companies Use of New Private Market Platforms ? – InsideVenture – PORTAL Alliance (NASDAQ) Enhancements – SecondMarket – Xchange – Other Additional Use of Global Financing / Fundraising and International ? Stock Exchanges 18
19. Enhanced Liquidity Mechanisms – Example II Public Sellers New Liquidity Platforms Market Buyers (Portfolio Companies) (Institutional/Strategic) VC-Backed Private Market Platform ? Access to Long- Pre-Screened Deal Flow ? ? Enforced Membership Criteria ? Term Investors Efficient Due Diligence ? Last Round of Financing $20-200MM – Accelerated Fund ? Increased Visibility Seeking to Go Public in 6-18 Months – ? Raising In-House Vetting Process, ? Including Company Information Portal, Conferences New Platforms Will Increase VC Ecosystem Liquidity 19
20. NVCA Enhanced Liquidity II Mechanism Recommendations II. Portfolio Companies III. Pro-Active M&A I. Liquidity Platforms • Raise Rounds From • Venture Firms • Venture Firms Global Financing Encouraged to Pro- Encouraged to Use Sources actively Explore M&A Enhanced Liquidity Roll-Up of Smaller Mechanisms Such as • Explore Global M&A Portfolio Companies InsideVenture and • Explore IPOs on Intl. to Achieve IPO Others Stock Exchanges Critical Mass • Consider Longer Lock- Ups to Increase Demand for Venture- Backed IPOs 20
21. NVCA Plan: Pillar III – Tax Incentives Job Creation Innovation I II III IV Ecosystem Enhanced Tax Regulation Partners Liquidity Incentives Paths VC Industry U.S. Government 21
22. III NVCA Pro-Growth Taxation Recommendations New Preserve Adopt New Tax Incentive to ? Keep Long-Term Capital Gains Tax ? Stimulate IPOs Rate Globally Competitive One Time Only – Preserve Meaningful Differential ? 10% Capital Gains Tax Rate for IPO Between Ordinary Income and – Purchaser and Investors Long-Term Capital Gains Tax Rates Only Applicable for Holding Periods > – Promote Tax Incentives for Venture ? 2-3 Years Capital Investments of Certain Consider a Longer Holding Period for Types and Sizes (e.g. Cleantech, ? Long-Term Capital Gains Life Sciences) Special IPO Program Will Increase Government Revenues 22
23. NVCA Plan: Pillar IV – Regulation Job Creation Innovation I II III IV Ecosystem Enhanced Tax Regulation Partners Liquidity Incentives Paths VC Industry U.S. Government 23
24. IV Barriers to Going Public on U.S. Stock Exchanges Exit Route Preference Top 3 Barriers to Going Public # of Responses Answered as a Top 3 Issue and Expectation (Participants = 108) (n=108) Compliance Requirements (Sarbanes-Oxley, Audit, Governance) M&A Increased Volatility in the Public Markets M&A Better Alternative (Faster Process, More Liquidity) Investment-Banking Related Issues (Analyst Coverage, Requires High Rev Threshold) Transaction Costs of Going Public (Legal, Banker Fees, Non-Compliance Related Costs) IPO Higher Perceived Litigation Risk from U.S. Investor Base Other Current Regulation Has a Major Impact on How Emerging Companies Consider their Exit Route Source: DCM Analysis/Survey of Venture-Backed Companies, 2009 24
25. IV Uncoordinated Regulations Severely Harm Small Companies Regulations Original Intent Unintended Impact Reduce Fraud Prohibitively Expensive for Small Companies ? ? Sarbanes Restore Confidence Extended Time to IPO ? ? Oxley M&A More Attractive ? Eliminate I-Bank Conflict Sell Side Analyst Exodus ? ? “Spitzer of Interest Reduced Analyst Coverage and ? Decree” Aftermarket Support Equal Information Access Communication Gap Grows Between Small ? ? Reg. Fair for All Investors Caps and Potential Buyers Disclosure Faster Development of Restrictions Limit Usefulness ? ? Rule 144A Private Placements Regulations Need Updating to Eliminate Unintended Consequences 25
26. IV NVCA Recommendations for Regulatory Changes Pre-IPO Post-IPO Private Placement • 144A – Expand Definitions of • Permit À La Carte • Suspend Minimum Market Cap Qualified Institutional Buyers Disclosure System Requirements • 144A – Relax Requisite Holding • Permit Confidential • Prohibit Short Sales of Newly Periods and Volume Registration Filings Issued Company Shares for at Restrictions Least 12 Months • Phase in SOX 404 • NASDAQ/Portal Alliance – Open Requirement For Small • Expand Usage of Form S-3 to It Up to Private Companies and Companies Enable Offerings Beginning 90 Accredited Investors Days Post IPO • Permit Research Analysts to Better Collaborate with Both • Eliminate Restrictions on Use of the Issuer and Investment S-3 for Certain Primary Offerings Bankers During the IPO of Non-accelerated Filers Process • Revise Requirement • Relax Financial Statement for Obtaining Shareholder Requirements Approval to Sell Securities Below Market or Book Value • Educate CFOs on Reg FD Restrictions and Allowances NVCA Requests Full SEC Review of Recent Laws to Streamline Small Company IPO Process 26
27. NVCA 4-Pillar Plan Summary Job Creation • Request Full SEC Regulatory • Stimulate Ecosystem Review to Streamline Small Competition : I-banks Innovation Company IPO Process (Majors/Boutiques), Law • Eliminate Harmful Spitzer Firms, Acctg. Firms Settlement Provisions (Global Six - Lower • Relax SOX 404 Compliance Costs) I II III IV Restrictions and Permit • Encouraging Joint Book Optional Extended Lock-ups Running with Shared Ecosystem Enhanced Tax Regulation • Expand usability of NASDAQ Economics Partners Liquidity Incentives PORTAL Alliance to private Paths • Cultivate New Buyers / companies and accredited Funds for IPOs investors VC Industry U.S. Government • Adopt New Tax Incentive to Stimulate IPOs: • Use New Platforms for Linking Buyers and Sellers One Time Only (Like InsideVenture) • Keep Long-Term Capital Gains Rate Competitive • Encourage Use of Global Funding Sources for New Rounds, M&A and IPOs • Promote Tax Credits for VC Investments of Certain Types/Sizes (e.g. Cleantech) • Utilize Pro-Active M&A to Achieve Critical Mass • Consider Longer Holding Period for Long-Term capital Gains 27
28. NVCA Expresses Its Appreciation Harry W. Kellogg, Jr., Silicon Valley Bank The NVCA Board of Directors ? ? Stan Lapidus, Helicos Hassan Ahmad, Sonus Networks ? ? Bob McCooey NASDAQ Mike Brooks, Venrock ? ? Michael Millman, JP Morgan Stuart Cable, Goodwin Procter ? ? Chuck Newhall, NEA James L. Callinan, RS Investments ? ? Duncan Niederauer, NYSE Euronext Frank Currie, Partner, Davis Polk & Wardwell ? ? Sandy Robertson, Robertson Stephens Scott Cutler, NYSE Euronext ? ? James D. Robinson III, RRE Ventures Ash Dahod, Starent Networks ? ? Bill Schnoor, Goodwin Procter Mona DeFrawi, InsideVenture ? ? Antoinette Schoar, MIT Paul Deninger, Jefferies & Co. ? ? Larry Sonsini, Wilson Sonsini Goodrich & Rosati Susan Page Estes, Global VC Coverage, UBS ? ? AG David Topper, JP Morgan ? Irwin Federman, USVP ? Brian Truesdale, Deutsche Bank ? Leslie Wolff Golden, Ridgewood Capital ? David Weild, Markets Advisory Partners ? Bob Grady, The Carlyle Group ? Thom Weisel, Thomas Weisel Partners ? Bill Hambrecht, W.R. Hambrecht + Co. ? Rian Wren, Neutral Tandem ? Felda Hardymon, Harvard Business School ? Thanks to DCM, Highland Capital Partners, the NYSE and Wilson Sonsini for their generosity in hosting the Blue Ribbon dinners 28