Presentation to
Santa Fe, NM * November 18, 2004

1 Agenda
Experienced
Investment Team
Track Record of Success
Hands-On Partnering with Entrepreneurs
Classic
Investment
Strategy

2
Experienced
Investment Team
Track Record of Success
Hands-On Partnering with Entrepreneurs
Classic
Investment
Strategy

3 Flywheel New Mexico Team
Trevor Loy
Managing Director
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Founded Flywheel in 1999
Boards: Comet, Samba, CVF,
Arrowhead (NMSU), NMVCA
Conexant, Gigabeat, Intel,
ParkingNet, Stanford, Teradyne
Cofounder, Stanford “Gap” Fund
BSEE, MSEE, MS MS&E, Stanford
Kim Sanchez Rael



Director
 Co-Founder, Qynergy
Senior exec, Intel
Senator Bingaman (D-NM)
BA Harvard, MBA Stanford
Scott Caruso
Director
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Angel investor in NM & CO
Founder of HotSpare
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Co-Founder of ComputeIntensive
(sold to NTT Verio; $140M)
SUN Microsystems
BS New Mexico State
Chris Traylor
Associate
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Start-up experience with PSI
MBA from Univ. of New Mexico
BA Kansas State University
 All Team Members Have
Entrepreneurial Experience

4 Flywheel Strategic Advisory Board
Tom Byers
Ph.D., Chairman, Strategic Advisory Board & L.P. Advisory Committee
 Professor of Entrepreneurship, Stanford University
 Co-Founder of Slate and Symantec; operating roles at Novell and Accenture
 Board member, Reactivity, Alphablox, Harvard Business CRC, Visio (now MSFT)
David Albin
 Managing Partner, Natural Gas Partners
David Alderson, Ph.D.
 Post-Doctoral Scholar, CalTech
Andrew Constantin
 Partner, Constantin Partners
Bill Garcia
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New Mexico Secretary of Econ Development
Executive at Intel and USWest/Qwest
Craig Johnson
 Founder and Former Chairman, Venture Law Group
Audrey MacLean
 Private Angel Investor; Stanford Professor
Fern Mandelbaum
 Venture Partner, Monitor Ventures
Carlos Perea
 Founding Partner, Entrada Private Equity
Olympia Nguyen
 VP, JP Morgan Chase
Dr. Everett Rogers (1931-2004)
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Regents Professor, Univ. of NM
Author, Diffusion of Innovations
Erik Straser, Ph.D.
 Partner, Mohr Davidow Ventures
Louise Velazquez
 Senior VP at Oracle
 President at Quincy Jones Productions

5
Experienced
Investment Team
Track Record of Success
Hands-On Partnering with Entrepreneurs
Classic
Investment
Strategy

6 Flywheel Investment Criteria
Geography
AZ
CO
NM
CA
Investment Size
3:1
$100K-
$1M
Sector
Semiconductors
Telecom /
Networking
Advanced
Materials
Security
Software / Internet
Business Model
Re-Segmentation
Disruptive

7 How Flywheel Identifies Opportunities
Entrepreneurial
Talent
Technology
Innovations
Flywheel
Matching
Process
Market
Identification
Successful
Seed Stage
Companies
The enduring competitive advantages in a
global economy lie increasingly in local things
—knowledge, relationships, motivation
— that distant rivals cannot match.
—Michael Porter, HBS

8 Flywheel Avoids Investment Hype

9 Key Questions Flywheel Asks
 Importance of Sales and Distribution Understood?
 Equity Markets Understood? Value Stock > Prestige?
 Experienced Team; Play to Win? Know What They
Don’t Know?
 Market Big Enough; Segmented Properly?
 Business Model Works? Capital Efficient?
 Technology-based, Sustainable Advantage?
 Milestones Aligned with Risk Reduction?
 Realistic, Sizable Exit Strategy?

10
Experienced
Investment Team
Track Record of Success
Hands-On Partnering with Entrepreneurs
Classic
Investment
Strategy

11 Key Aspects to Selecting a VC Firm
 Firm-wide Value Add, Not Just One Partner
 Schedule & Resource Capacity to Be Involved
 Strategy & Technical Skills
 Entrepreneurial Management Experience
 Management Recruiting
 Sales / Customer Resources & Relationships
 Follow-On Capital Reserves & Syndicate Relationships
 Experience in Achieving Liquidity
Assess the Venture Firm as They Assess You.
Check References. It’s a Partnership!

12 Flywheel’s Commitment to Entrepreneurs
 Pick Ventures Where Flywheel Team’s
Involvement Adds Operational Value
 Maintain Conservative Company Ratio
(3-5 Max per Flywheel Team Member)
 Syndicate Investments with Additional
Professional Investors Nationwide
 Strategy, Recruiting, Sales,
Management, and Mentoring
Assistance

13 Flywheel Provides Bridge to Silicon Valley

14
Experienced
Investment Team
Track Record of Success
Hands-On Partnering with Entrepreneurs
Classic
Investment
Strategy

15
Representative Flywheel Investments
San Francisco, CA Palo Alto, CA Albuquerque, NM
Albuquerque, NM San Francisco, CA Woodside, CA
Mountain View, CA St. Louis, MO Santa Fe, NM

16 Sample Co-Investors and Customers
Venture Capital Investors
Constantin
Partners
Representative Customers

trevor@flywheelventures.com
1.877.586.7526 tel/fax www.flywheelventures.com