CompanyX1 of 8

TABLEOFCONTENTS

EXECUTIVESUMMARY2REVIEWOFTHEMARKET3

Business3

Whatbusinessarewein?Whathaveweaccomplished?

Competitors3

Whoareourcompetitors?Whathavetheydonerecently?

Market4

Whatdowethinkwillhappennext?

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STRATEGYGOALANDEXIT5

StrategyGoal5

Whatdowewanttoachieve?Howarewegoingtodoit?

ExitPlan7

Howdoesthisend/whathappensnext?

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APPENDICES9

LegalandAdministrative9

CompanyX2 of 8

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EXECUTIVESUMMARY

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CompanyXprovideshostedcontentserviceswithintheonlineapplicationsandplatforms(OAP)marketviaitsProductXproduct.ProductXisaplatformforbusinessesandorganizationstostore,manage,andpublishcontenttothewebandmobiledevices.ProductXservicesaresoldatproductx.comandusedbyourcustomersonaself‐servicebasis.

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DevelopmentofProductX1.0beganin2006andwaslaterlaunchedinthewinterof2007.SoonthereafterwebeganplanningforProductX2.0,whichafteralmostayearofdevelopmentanditerationbasedoncustomerfeedbackwaslaunchedinApril2009.ProductXiscurrentlyinusebyover800organizationsofalltypesandsizesandprovidesCompanyXwiththenecessaryfoundationtoachieveourmainobjectivesoverthenext12months.

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ProductXcustomersincludeadagencies(WPPGroup),universities(MIT),largeenterprises(Ernst&Young),industryassociations,non‐profits,filmproducers(OliverStone),mediapublishers(Meredith),governmentagencies(FDA),andmanyothertypesoforganizationsthatrelyoncontentforcommunications,marketing,andothercorebusinessactivities.

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OurcustomershavetoldustherearethereprimaryreasonswhytheychoseProductXoverthecompetition.Firstisprice:ProductXisthemostcosteffectiveplatformonthemarket.Secondismobile:ProductXsupportsthedeliveryofcontenttoallthemostpopularmobiledevices.ThirdisAPI:ProductXoffersabuilt‐for‐developers‐by‐developersAPIthatenablesrapidintegrationwith3rdpartyappsandservices.

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AccordingtoaForresterResearchreportpublishedearlierthisyear,onlineapplicationsandplatforms(OAPs)generatedrevenuesof$4.1Bin2008,up86%over2007,andareexpectedtogenerateroughly$5.9Bin2010.ThatsamereportalsopredictsthatOAPsfocusedonmobilecontentdeliveryand3rdpartyintegrationswillincreasetheirmarketsharefrom13.4%in2008toover22%by2010.

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OurgoalistoestablishProductXastheleadingSMB‐focusedonlineplatformbyQ42010.Weplantodothisbygrowingnewsignupsandcustomers,andmaintainingourleadinproductinnovationandcosteffectiveness.

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Todatewehaveraisedroughly$4MinSeedandSeriesAfinancingfromasmallgroupofprofessionalangelinvestors.Weareseekingtoraise$3MinSeriesBfinancingtoachieveourobjectivesoverthenext12months.

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InternetentrepreneurandCompanyXCEOBobB.foundedthecompanyinthewinterof2005withavisionforhowtheInternetwasgoingtogreatlyenhancetheroleofcontentasacommunicationsandmarketingtool.Fromitsinception,theCompanyXleadershipteamhasincludedCTOJohnD.,SVPMarketingJaneT.,andadevelopmentstaffoffour.AllmembersoftheCompanyXleadershipteamattendedMassachusettsInstituteofTechnology.

CompanyX3 of 8

REVIEWOFTHEMARKET

Business

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Whatbusinessarewein?CompanyXprovideshostedcontentserviceswithintheonlineapplicationsandplatforms(OAPs)marketviaitsProductXproduct.ProductX,isawebplatformforbusinessesandorganizationstostore,manage,andpublishcontenttothewebandmobiledevices.ProductXservicesaresoldatproductx.comandusedbyourcustomersonaself‐servicebasis.

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Whathaveweaccomplished?DevelopmentofProductX1.0beganin2006andwaslaterlaunchedinthewinterof2007.SoonthereafterwebeganplanningforProductX2.0,whichafteralmostayearofdevelopmentwaslaunchedinApril2009.ProductX2.0iscurrentlyinusebyorganizationsofalltypesandsizesandprovidesCompanyXwiththenecessaryfoundationtoachieveourmainobjectivesoverthenext12months.

Competitors

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Whoareourcompetitors?ProductX’sdirectcompetitorsareotherSMB‐focusedcontentplatformproviders(SMBs)suchasCompetitorA,CompetitorB,CompetitorC,andCompetitorD.ProductX’sindirectcompetitorsarethemarket‐leadingcontentplatformprovidersandincludeCompetitorE,CompetitorF,CompetitorG,andCompetitorH.

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Whathavetheydonerecently?

Product

TherehasbeenverylittleproductdevelopmentorinnovationonthepartofSMBsoverthepast6months.Withtheexceptionofoneortwoplayers,SMB’sgenerallycontinuetopositiontheirproductsascheaper,slimmed‐downversionsofthemarketleaders’platforms.MostarewellbehindinofferingeventhemostbasicfeaturesandservicesfoundinProductXorthemarket‐leadingplatforms(i.e.,automatedencoding,high‐definitionpublishing,comprehensiveAPIs,etc.).Marketleadershavecontinuedtofocusheavilyonadvertisingtoolsandservices,includinghooksintopartnernetworks,syndicationfeatures,and3

partyadserverintegration.MarketleadersnowofferHDorclose‐to‐HD(commonlyreferredtoashigh‐quality,orHQ)publishingfeaturesandareorwillsoonbefocusingonsimplemobilepublishing.Manychallengesstillexistwhenitcomestomobile,howeverincreaseddemandonthepartofcustomersandtheirend‐usersisforcingthemarketleaderstomoveinthisdirection.

Go‐to‐market

Fromabusinessstandpoint,wehaveseenalotofslimming‐down(eliminatingfree/subsidizedofferings)andre‐focusingoccuroverthelast9months.Theprimarytrendwecurrentlyseeisare‐balancingofgo‐to‐marketstrategies:ashiftawayfrompurecontentmonetization(thecouplingofcontentcontentwithadvertisements)towardswhatwerefertoasaudiencemonetization(afocusoncontentaccessibilityandquality).Bothgroups–SMBsandmarketleaders‐areengaginginthisshift.Why?Becausetherearealotmorebusinessesandorganizationsthatneedtoolstostore,manage,andpublishtheircontentthanneedtoolstomonetizeit.