How to Play With OPM(OTHER PEOPLE’S MONEY)

Cantilever Background & Timeline• 1st business plan written by founders in

1997– Financial models reviewed by outside

accountant– Major analysis of competitive threats– Tremendous focus on addressable market

space– Vetted by experienced business people prior

to release– Initial investment dollars by founders &

business leaders committed prior to VC commitment

Cantilever Background & Timeline• VC committed in 1998

– Founders resign positions to eliminate any conflict issues

– Business plan re-written

• Company Started in 1999– Located in Purdue Research Park

• Company sold in 2005

What does Cantilever do?

Cantilever Readiness Engine®

Sales Manager

AR Analyst

Marketing

Sales Rep. Customer

Contracts

Shipping

ComplexProblem

Patent Pending Software Tool that Speeds Up Business Decision Making and Problem Solving.ComplimentarySingle Bolt-On to Existing Systems.

ROI: in as little as 90 Days

Sales Manager

AR Analyst

Marketing

Sales Rep. Customer

Contracts

Shipping

ComplexProblem

Software Tool that Speeds Up BusinessDecision Making andProblem Solving.

ROI: in as little as 90 days

Cantilever Readiness Engine®

Proven Results with Fortune 300

“The Readiness Engine [solves]

problems never before solved with

software.”John Crowther, Former CIO Cummins Inc.

Competitive Landscape

Lotus Notes

Collaboration

Bu

sine

ssP

roce

ss W

orkf

low

Ant

icip

ated

Una

ntic

ipat

ed

Flexible Structured

Readiness Engine

MySAP

ERP

e-Room

CRM PLCMPDM

Report Generators

Instant Messaging

Business Intelligence

e-mail

Portals Corticon Lombardi Software

Key Focus Areas•Locate Office Space

•Incubators are key

•Define Cash tracking and financial reporting

•Hire Key employees

•Build Scaleable Infrastructure

•Build product

•Revenue generating customers

•Implementation methodology-Repeatable revenue model

•Prove ROI

•System use expanding/Sell One sell many

•Break even

VC Expectations

• Phase I– Tight financial controls – monitor cash– Build product– Sales reporting– Revenue/Revenue/Revenue– Weekly/monthly meetings

• Phase II– Repeatable sales model– Sell one – sell many– Market focus & migration

Representative Case Study

0

500

1000

1500

2000

2500

3000

3500

2000 2001 2002 2003 2004

PilotPilot

RevenuesIn

$,000

RevenuesIn

$,000

Pricing Methodology:- Expanding License

Fees- Professional Fees

Per Project

How Will You Grow the Business …Market Focus & Migration

Early Adopters

Warranty

Aftermarket

New ProductIntroduction

Engineering &Obsolescence

Accounts Receivable

Recurring Failures

Sales Force PerformanceManagement

Accounts Payable

DiscreteManufacturing

Proven “Off theShelf” Solutions

ExpandedApplications

IndustryVerticals

Aero Space

Automotive

WIP and Finished GoodsInventory Minimization

If You Need More Money

• Good news:– Sales and growth are exceeding expectations

• Bad news:– Estimates low

• Product development longer• Sales slower

• Communicate early & often – no surprises• Your relationship with the VC & the Board is key• Warning – Some VCs operate on the “One Miss

You Are Out” model

Exit Strategy

• Exiting is hard work– VC may drive timing of exit– Due diligence is really tough– Going public with SOX is a new game