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.

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

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

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.

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

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

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.

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.

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

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