Introducing NetFuel
September 2000
NetFuel: Providing
capital and talent to fuel
Internet start-ups
The goal: Highly successful client
companies and high rates of return
for investors
Opportunity: Internet Infrastructure



Reaching $2.7 trillion by 2003,
e-commerce is booming*
Internet infrastructure - including
software and eServices - will be a
$1.5 trillion market by 2003*
Infrastructure accounted for over 60%
of venture capital investments in the
first quarter, 2000**
* Forrester Research, 2000
** PricewaterhouseCoopers Money Tree Report, 2000
NetFuel’s Solution
Growing start-ups from idea to independence
Raise seed
funding
Put infrastructure
in place
Recruit
team
Identify
great idea
Deliver
product
Transition to
independence
Raise
capital
Win
customers
Experienced Management Team
Waverly Deutsch
Managing Director
Will Garrett
Managing Director
Michael Liddell
Co-founder and
Managing Director
Chris Quinn
Co-founder and
Managing Director
 Previously EVP Marketing and Strategy at fob.com, an e-procurement company for manufacturing raw
materials; fob.com was funded for $44.5 million by Safegaurd Scientific, Foundation Capital, and William Blair
 Seven years as a Research Director at Forrester Research managing research teams analyzing computing and
network architectures, business applications, Internet business models, and CIO issues
 BS in Computer Science from University of Pittsburgh and a Ph. D. from Tufts University
 Previously EVP Marketing & Business Development at GE Capital where he oversaw a $4.5 billion asset portfolio
and directed over $1.5 billion in investments
 Seven years as a management consultant at McKinsey & Co.
 BS in Electrical Engineering from Northwestern University and MM from Northwestern University’s J.L. Kellogg
Graduate School of Management
 Previously founder and Executive Vice President of WebYes, which was sold to Breakaway Solutions in
June 1999
 Former Strategic Account Manager for Lucent Technologies and integrated circuit designer at Texas Instruments
 BS in Electrical Engineering & Computer Science from Michigan State University
 Previously SVP and General Counsel at ShopExpert, a Lycos-backed eCommerce startup
 Formerly practicing attorney for Oppenheimer Wolff & Donnelly and Thompson & Mitchell
 BA in Economics & Political Science and JD from Washington University
Competitive Landscape
Example Seed-stage investment
companies
“idea on napkin”
Strategic
services
Full infrastructure
(space, payroll, inc.)
Full time
recruiter
NetFuel
Incubators
Seed VCs
Angel Groups
SBIC
(Divine, Cambridge
Incubator, eBlast)
(Chicago Ventures, First
Analysis, Kettle
Partners)
(Batterson Venture
Partners, Devers
Group)
(Illinois Venture
Coalition, Open Prairie
Ventures)
Full
Some
None
Chicago/Midwest
focus
Strategic Relationships

Andersen Consulting’s Dot.com Launch Centres
 Seed stage deals too early for the launch center

ARCH Development
 Internet deal evaluation for tech transfer fund, codevelopment

Brainrush
 Midwest deals

Breakaway Systems
 Preferred technology hosting partner

Consolidated Commerce
 Partners in their NM4 services program for new exchanges
NetFuel’s Plans



Four client companies by end of 2000
One company through the process, independent,
and generating revenue by end of 2000
Seven client companies per year average
Funding status


Closing “bridge round” of $2 million
Seeking series A of $4 million at $15 million
valuation
Exit strategy



Acquisition by consulting firm/incubator at 3x
multiple of combined portfolio valuation
Convert to privately held with stock buy-back at high
ROI for investors
IPO as operating company
Conclusion
NetFuel is:
Next Steps
 Building very successful
Internet infrastructure
companies
 Focusing on the
underdeveloped Midwest
 Offering IGnITE services -fusing strategy, capital,
operational experience,
partnership development,
operations resources, and
recruiting
 For additional investment
information, please contact
Chris Quinn at:
(312) 828-9975
cquinn@netfuelventures.com