Date:

July 1, 2004

Place:

Palo Alto Hills Golf & Country Club

11:30 a.m. to 12:30 p.m.
          Luncheon on the Veranda

12:30 p.m. – 12:45 p.m.
          Agenda Review and Introductions

12:45 p.m. – 2:45 p.m.

• INVESTMENT PACE
  What is the pace of investing for each fund? How many deals have you completed in the last six months? In the past year? Briefly discuss the valuations and stage for each of your fund’s last three deals.

• COMPETITION AND VALUATIONS
  What is the competitive climate for seed and early stage deals? What kind of valuations are you seeing? What strategies are you employing to cope with the competitive environment?

  • Due Diligence: Do you have enough time to do a thorough evaluation?

  • Geographical Focus: Are you staying local, or looking outside the area? Is this a change in strategy?

  • Deal Capture: How do you secure an opportunity?

  • Syndication: When is the right time to start the syndication process? What do you look for in a syndicate partner? What are your views of a “fully funded” syndicate?

• CURRENT INVESTMENT FOCUS
  In what areas are you spending time looking for investments? What is the investment thesis for these areas?
   

• RECRUITING TOP TALENT
  What is your current recruiting experience? What kind of CEO do you want for an early stage company; how and when do you start recruiting? How have compensation packages evolved? What methods have proven effective? Any that have backfired?

• DEAL FLOW DEVELOPMENT
  What do you think of the current quality of deals in the market? What are the best sources of quality deal flow? What strategies are you employing to drive solid deal flow and to cope with competition? How do funds identify new areas of investment? Do you do extensive sector analysis? How do you analyze your deal flow pipeline?

• GLOBALIZATION OF VENTURE CAPITAL

  • Outsourcing: Do you have a systematic approach for start-ups or is it a case-by-case evaluation? What percentage of your companies are outsourcing or doing offshore development? Do you have a consistent strategy? What is the impact on capital efficiency and cost reduction?

  • Revenue: How many of your companies are looking for first markets outside the US? What are the implications on cost, management, time, communication, etc.? What are some creative strategies used to deal with selling into global markets?

  • Support: How important is it to have a ‘hands-on’ VC presence in other countries? How many are opening offices? How many have formal strategic relationships –i.e., captive resources?

  • Deal Flow: How many are actively seeking deal flow outside the US? How do you decide if the company should be located in the US or located abroad?

2:45 p.m. – 3:00 p.m.
          Break

3:00 p.m. – 3:45 p.m.
          Speaker

Paul Crisci
Managing Director
Broadview International
A Division of Jefferies Group

3:45 p.m. – 4:45 p.m.

• LIQUIDITY AND DISTRIBUTIONS
  Are there are signs that the markets are strengthening? Is it a long term trend or a short term hit? What are the implications for exit options? What best practices do you use to manage exits?

• LIMITED PARTNER RELATIONS
  How many recently raised a new fund? How many are planning to raise a new fund this year? What is the fundraising environment today? How much time is required to raise a new fund? What are the current terms you are encountering? Given that fund sizes are shrinking, how do you determine which limited partners are invited to invest in the next fund?

  What changes are you seeing in limited partner behavior? Has the disclosure of returns by certain limited partners changed the environment? What strategies have funds developed to manage limited partners? How do you approach and conduct Annual Advisory Board and Partnership meetings? How much information do you provide to your limited partners?

4:45 p.m. – 5:00 p.m.
          Wrap up

5:00 p.m. – 6:00 p.m.
          Cocktail Reception