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First Round Original Pitch Deck

First Round
October 01, 2004

First Round Original Pitch Deck

First Round

October 01, 2004
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  1. Confidential
    A Seed-Stage Venture Fund
    October 2004
    These summary materials are not complete and do not constitute an offer to sell or a solicitation of an offer to buy an interest
    in First Round Capital. An offer is made only by a private placement memorandum (“PPM”). These materials are qualified in
    their entirety by such PPM, which discusses numerous risk factors and other considerations.

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  2. Confidential 2
    Fund Profile
    Fund Status
    Stage
    Sectors
    Geography
    Team
    Track Record
    A series of annual funds, initial fund targeted for $7 million
    ($3.5M initial investment, $3.5M reserved for follow-on)
    Seed and early-stage
    Technology
    Nationwide
    Josh Kopelman and Howard Morgan
    Proven entrepreneurs and angel investors
    Invested in over 50+ startups

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  3. Confidential 3
    Why a Seed Stage Fund?
    Huge demand/supply imbalance favors seed/early
    investing
    Less than 3% of VC funds invest pre-revenue
    No “auctions” that increase valuations
    Pace of innovation, new startups increasing
    Plenty of follow-on capital if early milestones
    achieved
    Critical to Get in Early at Low Valuations

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  4. Confidential 4
    State of Seed Funding
    Despite stronger long term results, early stage funding has
    been dramatically decreasing as a percentage of VC
    funding as investors move “up market”
    19%
    13%
    2% 2%
    6%
    2%
    3%
    9%
    9%
    0%
    2%
    4%
    6%
    8%
    10%
    12%
    14%
    16%
    18%
    20%
    1995 1996 1997 1998 1999 2000 2001 2002 2003
    Seed/Startup Funding % VC)
    % of Total VC
    Source: PWC MoneyTree Survey, 2003.

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  5. Confidential 5
    Challenges of Seed Stage Funds
    Often limited to narrow geographic footprint
    Normally structured as “angel” funds – consisting
    of “hobbyists”
    Inability to gain economies of scale or deploy
    significant capital
    Key differentiator is deal flow

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  6. Confidential 10
    Our Team
    Josh Kopelman, Managing Director
    Dr. Howard Morgan, Director

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  7. Confidential 11
    Josh Kopelman
    Josh has been an active entrepreneur and investor in the Internet
    industry since its commercialization.
    In 1992, Josh co-founded Infonautics Corporation – an Internet
    information company. In 1996, Infonautics went public on the
    NASDAQ stock exchange.
    Josh left Infonautics to found Half.com in July of 1999. Half.com
    was acquired by eBay in July 2000 for $355 Million -- and Josh
    remained with eBay for three years, growing eBay’s Media
    business to almost half a billion dollars in annual gross
    merchandise sales.
    In January 2004 Josh was the founding investor in TurnTide an
    anti-spam company that created the world's first anti-spam
    router. In July 2004, TurnTide sold to Symantec for $28 Million.

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  8. Confidential 12
    Dr. Howard Morgan
    President of Arca Group Inc., a consulting and venture capital
    investment management firm specializing in the area of
    computer and communications technologies, and a Director of
    Idealab, where was a founding investor in 1996
    He has more than 25 years of experience with more than
    thirty high-tech entrepreneurial ventures.
    Dr. Morgan serves on a number of public company Boards,
    including Franklin Electronic Publishers, Inc., Segue Software
    Corporation, and Unitronix Corp.
    He is also Chairman or a member of the board of numerous
    private companies including CarsDirect.com, Partsearch
    Technology, Energy Innovations, MagicWorks LLC, and
    Planalytics, Inc.

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  9. Confidential 18
    Risk Factors
    Deal flow could not live up to our expectations
    Companies might not accept our terms
    Annual fund structure doesn’t provide diversity of
    “vintages”
    Technology focus doesn’t provide diversification

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  10. Confidential 19
    Disclosures
    This is not either GP’s full-time endeavor

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