1. Are we in a tech bubble? And if so, does it matter? August, 2011 Jeff Burkland © 2011 Burkland Associates. Proprietary and Confidential

2. Today We Want To Address Four Key Questions What Are Today’s Key Drivers of Funding? Is This a Bubble? What Must Companies Do to Succeed Once Funded? What Is The Best Way to Get Started? How Are You Taking Advantage of Plentiful Funding?

4. Tech in California leading the charge; YoY deals up 27% and dollars up 19%

5. Seed funding at 5 quarter high of 12% of all deals

6. Much of the investment driven by the heady valuations being oft-discussed in the media

9. Given the functionality that is being improved upon from incumbents, perhaps they are actually undervalued:

10. Netflix $13B vs Comcast $66B

11. Salesforce $18B vs Oracle $153B

12. The rest of the economy has not jumped on the “tech bandwagon”

13. What we are seeing in the Bay in tech is disconnected from the broader economy< 5 >

14. Does it Matter? © 2011 Burkland Associates. Proprietary and Confidential

15. < 7 > What Are The Possible Paths of Tech Relative to the Economy?

16. In Summary Up big; Down big; Likely no middle scenario Not dependent on whether we are in a bubble. < 8 >

18. Cash sooner is preferred to cash later

19. Less risky cash is preferred to more risky cash

20. Don’t run out of cash* William Sahlman, Harvard Business School, January 2007 < 9 >

21. < 10 > A Real World Example: Which Option Would You Choose? Managing to near term valuation is not always the right answer; raising more money sooner bought more runway which led to overall higher valuation

23. Economy not showing robust signs of recovery

24. Plentiful of Equity Capital is available

25. Plenty of Deals Creating Own Momentum

26. Earlier funding than your competitors

27. More funding than your competitors

28. Out-resourcing and out-spending your competitors

29. Create differentiated customer value

30. Streamline the organization

31. Invest selectively for growth

32. Don’t be a “me-too” company just playing the speed game

33. Understand Full Range of Financing Options

34. Pursue Highest Impact Options First

35. Pay Attention to Customers, Economics, and Technologies

36. Execute Flawlessly Against Milestones

37. Apply Learnings< 11 >

38. < 12 > Thank you for your participation today Please direct questions and feedback to: Jeff Burkland Founder and Principal Burkland Associates 100 E. Strawberry Drive Mill Valley, 94941 (415) 944.8215 jburkland@burklandassociates.com