© 2009 North Venture Partners, LLC | www.dontgosouth.com | www.northangels.com

MOVINGBEYONDTHE FIRSTDATE…

Taking a new path can sometimesbe incredibly lonely.

1.0

On your marks, get set, hold on…

If you’re reading this, that means we’re interested in taking the next step

towards making your venture a success story. But before we decide to move in

together, exchange vows, and live happily ever after, we’ve still got work to do.

The process of raising capital in the private equity market can often be

misunderstood. So to help familiarize you with our process, and what teaming

up with us might be like, we first want you to to understand a bit more about

how we work.

2.0

Like most Angel investment groups we do not manage a fund. We provide our

investor members with a service, which at the most basic level, is a filter for

sifting through thousands of investment opportunities.

Contrary to popular belief, we don’t just write checks like a VC. We (the group

managers) usually have to work twice as hard to get all the parties around the

table excited to work together. This means that we are in this together. We are

both going to work towards the same goal; getting your venture funded.

Investors expect us to make it easy for

them to make an informed and intelligent

investment decision. It’s our job to make

investing more educated, empowering,

and rewarding. Ready to team up?

We’re Actually On The Same Team.

Is our job easy? Hardly. Managing a group of successful, critically-thinking

high net worth investors is no walk in the park. To wage this war we’ve armed

ourselves with the best possible processes and tools to enable us to be highly

effective at giving your venture significant traction.

To get where we need to go, we’re going to have to work closely together.

This isn’t a game show, and the photo ops with a giant check are rare. But one

thing’s for sure, the coaching and feedback you’ll experience will be unrivaled.

How Can You Stand Out From The Crowd?

3.0

Most Angel groups are buried in submissions from entrepreneurs who have

“remarkable products, stellar financials, and a world-class management team”.

Or at least that is what their business plan would say if they had the chance to

read it. More often than not, the business plan gets only a quick look.

The truth is most investors simply can’t take the time to read thousands of business plans. So you’ll have to put together a strategy to get your business plan noticed. That’s where we come in.

Do the math: Right now there are over 37,000 business plans on AngelSoft.

There are over 100,000 plans on FundingPost. There are over 6,000 plans on

Funding Universe. If an Angel investor tried to review all these plans for 30

minutes each it would take over 33 years reading 8 hours a day, 5 days a

week, for 52 weeks a year.

Bottom line: Blasting your business plan out to several hundred Angel groups

isn’t effective unless you can get past the first glance test. Don’t worry, we can

help get you a second look. It’s not rocket science, its just basic branding.

4.0

Before the internet, entire industries emerged that helped investors find “good”

entrepreneurs; trade shows, print publications, and an army of investment

banking connectors who helped introduce entrepreneurs to investors (for a

large percentage of your company of course). You can spend half your career

(and life savings) at trade shows and more often than not all you would have to

show for it would be a desk drawer full of name badges.

Today’s investors rely more than ever on their filter of trusted referrals and connections with friends. Creating relationships with investors is hard work, and it’s going to take time.

This traditional process needed to evolve, not because it wasn’t an effective

method for discovering a high number of venture investments, but because

investors needed an easier way to reduce their number of investment options

down to a more manageable and quality figure.

Working on your business with investors requires you to invest time, energy

and effort. The good news is we’ve got an all-star roster of players and

resources that can help fill in the gaps and set your venture free; keeping it

moving in the right direction

It’s Time To Break Free From The Broken.

5.0

While we have to admit there is an intoxicating rush from pitching your

innovative venture in front of an audience, the end result usually feels more like

a hangover. Investors with more questions than answers, and entrepreneurs

leaving wondering if their choice of wardrobe sealed the fate of their company.

True understanding of a venture doesn’t

happen during a 15 minute pitch in a

hotel ballroom. The quality of time you

spend is far more important than simply

pressing a card into the hand of a

random investor.

We know that this process can be frustrating. If you feel like you’re wandering

down the beach looking for buried treasure, you aren’t alone. Raising capital is

challenging and the success rate for “strong” companies is well under 10%. Don’t

get discouraged, having faith in your vision, your business, and your abilities is

what sets you apart from the other 90%.

While we can work on positioning your business in a way that can enable you to

have the greatest possible chances at funding, we’re not guaranteeing anything.

If this were easy, everyone would do it.

There Is A Smarter Way To Find Capital.

6.0

One thing we’ve learned is that in order to get stronger you have to be willing to

address your weaknesses. This is your warning, nobody likes to look at their

deficiencies. Working on your soft spots is hard, but in order to reach your

goals you’ll have to dig deep and grind it out.

From deconstructing the financials to

target market analysis; the strengths

and weaknesses of each venture

opportunity are reviewed in detail so

investors and entrepreneurs can make

a confident assessment based on

reliable data, not just intuition.

20+ Pages of Rigorous

Venture Analysis

Insights & Scoring

Across 8 Categories

Comparative Graphing &

Written Analysis

Performance Chart &

Executive Summary

Seeing Your Venture Through Investors Eyes.

A Long Hard Look Pays Off For Everyone.

7.0

Ultimately investors and entrepreneurs are betting on the same thing: the

success of the business. A three year study of 539 Angel led investments

conducted by the Kauffman Foundation found an extraordinary insight.

“Comparing investors who spent less

than the median 20 hours of due

diligence and investors who spent

more, shows an overall multiple

difference of 5.9X for those with high

due diligence compared to only 1.1X

for those with low due diligence.”

Whether you’re an entrepreneur betting your career, or an investor betting your

capital on an exciting new venture, what type of return on investment are you

seeking? 590% or 110%?

If a venture doesn’t succeed nobody wins, so it’s in all of our best interest to

stress test the business well before we start running full speed. The good news

is digging into your business and finding the specific points that need extra

attention arms you with a plan to move forward with clarity and conviction.

Excerpt taken from “Returns to Angel Investors in Groups”, a comprehensive study of 539

Angel led investments. Robert Wiltbank, Ph.D. and Warren Boeker, Ph. D., 11/2007.

8.0

North’s objective analysis and contextual scoring of thousands of new ventures

is the foundation of our program. It’s what makes us different. It’s what makes

us better. It’s our secret 11 herbs & spices. But the Venture 360 Report is only

the first step in building momentum and helping you achieve your goals.

Upon completion of the program, the top

scoring Venture 360 Reports are

published to individual investors, other

Angel groups, and institutional investors.

Pointing You On The Right Path to Funding.

“DealBase.com truly enjoyed working with North Venture

Partners. Their Venture 360 report is proving to be

beneficial to our fundraising process by giving

prospective investors an unbiased and impartial analysis

of our business. The process itself was quick and

painless, and the resulting report and associated

discussions with the North team included some highly

valuable insights and feedback on our business plan – an

unexpected, and greatly appreciated benefit.”

- Sam Shank, CEO, DealBase.com

10.0

We truly believe that success comes through hard work and persistence, this takes

time, and together we can help achieve your goals.

Michael Jordan was once cut from his

high school basketball team. Sometimes

setbacks prepare us to reach even

greater heights. We all know where His

Airness ended up. Do you know how

you will respond to the challenges that

your business will face?

A Buzzer Beater Comes With A Lot Of Sweat.

Each recipient of a completed Venture 360 Report has the option to take the insights

provided and use them to constructively improve their business model, or perhaps

their presentation materials.

While not every venture will need it, this feedback can often identify key points of risk

that are likely investor objections. This ultimately empowers the entrepreneur to

create strategies for addressing and mitigating these risks.

North can re-score ventures after a 90 day “cooling off” period to measure

development progress and the revised strategy or structure which can be a huge

benefit to the rapidly changing dynamics of the early stage business.

11.0

By now you should hopefully understand what it takes to team up with North

and go through our process. It requires commitment, perseverance, and above

all, takes faith in your abilities and the strength of your idea. Nothing

worthwhile is ever easy.

We think of the Venture 360 Report as

the best possible way to move your

venture forward. For North Angels, this

is the only way.

Time To Put Some Skin In The Game.

The Reasons for Going North:

Build a long term relationship with North Venture Partners.

Access to investment capital though our Angel partners and investment group.

Presentation skills coaching.

Venture 360 Report – a full venture analysis

Invitations to private events and investor mentorship roundtables

Strategic business development and fundraising advice.

Educational materials, programs, and resources.

Access to North’s network of strategic partners

12.0

While our roster is deep, we can’t provide value on every venture under the

sun. If a venture falls outside of our coverage areas of expertise, we’ll probably

have to wave the white flag and refer you to a partner for further assistance.

Creating a bond between entrepreneurs

and a diverse group of Angels forms the

foundation for fostering innovation. Our

breadth enables North to accelerate

ventures across 7 major market sectors.

Chances Are We’ve Got You Covered.

Media & Entertainment

Consumer Products & Services

Software & IT Services

Mobile Devices & Applications

Business Products & Services

Retail / Distribution

Sustainable Industries / Energy

North Market CoverageFor each industry there are various

economic models, industry standards, and

consumer behaviors. Each of these unique

factors is incorporated into the venture

evaluation. The strength and accuracy of

the North database of reviewed ventures is

enhanced by our market segmentation.

Note: The overall Venture 360 Report

scoring and analysis output is calibrated to

seek the greatest possible economic return

regardless of market sector.

13.0

We invest significantly in the ventures we team up with, and the last thing we

ever want is a partnership of inequality.

A North engagement may carry some costs depending upon which services

and resources you choose to retain. Engagements with our team run from a

few hundred dollars up to several thousands dollars.

Whether you choose to work with North or another third party, do yourself a

favor and first try to determine who can provide you with the most constructive

value back for your time and budget.

What you need to break through more than anything is access to an

experienced and transparent team that can accelerate your vision. Period.

To engage with North and take the next step forward, send an email to

northventure360@dontgosouth.com stating that you’re ready to rock and we’ll

set up a time to talk.

Northern California

1729 Telegraph Ave

Oakland, CA 94612

Southern California

4316 Melrose Ave.

Los Angeles, CA 90029

Ready to Head In The Right Direction?

Read more about what we do at:

www.dontgosouth.com

We believe our time and effort must be

something you value enough to invest in

moving our partnership forward.