© 2008 North Venture Partners, LLC | www.dontgosouth.com | www.northangels.com

MOVINGBEYONDTHE FIRSTDATE

Speed without direction is thefastest way togetting nowhere.

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 the next

steps are, we first want you to to understand a bit more about how Angel

groups work.

Sorry if this is redundant, but you’d be shocked by how many times we’ve

had to explain this.

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.

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 getting your venture funded as quickly as possible.

To get under the hood and really understand why we do what we do, it usually

helps for entrepreneurs to see the world from the other side of the table.

Psst. Investors Don’t Read Business Plans.

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 actually had the

chance to read it…

The truth is most investors simply can’t take the time to read thousands of business plans. So how can they possibly find, filter, and fund the most promising new venture investments in an ocean of possibilities?

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

with the click of a button is about as strategic as buying a Powerball ticket.

This is clearly a problem for investors AND for entrepreneurs.

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 fee 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. Tip: trust is not earned swapping cards at a trade show booth.

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.

So we asked the question, “what if there was a way for investors to discover

investment opportunities based up on the strength of the venture, rather than

the reach of their personal network?”

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, the

management team, and the target market

doesn’t happen during a 15 minute pitch

in a hotel ballroom. The speed pitch of

the 1990s provides no value for anyone

in the room, except maybe the caterer.

We know, because we’ve walked in your same shoes.

That’s why we’ve spent the last two years developing a more future-forward

approach to business building; a disciplined and proprietary methodology for

scoring, evaluating and selecting new venture investments. Utilizing a combined

human and database-driven due diligence process, North scores ventures across

80 categories providing finely tuned analysis and insight across all critical aspects

of each new venture.

There Is A Smarter Way To Find Capital.

6.0

By providing detailed and objective analysis, and then sharing the results with

both the entrepreneur and the investor, we’re able to achieve a unique result:

crystal clear direction for everyone involved.

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

confident decisions based on reliable

data, not just intuition.

20+ Pages of Rigorous

Due Diligence

Insights & Scoring

Across 8 Categories

Comparative Graphing &

Written Analysis

Performance Chart &

Executive Summary

Say Hello To The Venture 360 Report.

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 make the relationship “official”.

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 Angel groups decision process. It’s what makes us

different. It’s what makes us better. It’s our secret 11 herbs & spices. But the

Report is only the first step, the next step is getting it in the hands of investors.

Each month the top scoring reports are

published and promoted to the full North

Angels membership which consists of

individual investors, other Angel groups,

and institutional investors.

Pointing You On The Right Path to Funding.

Note: You might not like what the report has to say, but

you should realize that neither investors, entrepreneurs,

or North are well served by spending weeks, or months

trying to move a venture forward if it is fundamentally

flawed.

Our third party analysis and report marketing can either

accelerate your conversations with investors, or it can

give you the direct and honest feedback you need to dig

in and re-tool your business to put it on the right path to

success.

9.0

The high cost of professionals who market ventures to investors can be

downright frightening, and with nearly no visibility into the process it can mean

a giant leap of faith for entrepreneurs. And nobody likes buying on faith alone.

Save the trust falls for management

retreats. North’s Investor Interaction

Report shines light into the dark corners

of investment marketing; giving you

confidence & clarity by sharing exactly

what is happening with your Venture 360

Report, right down to every little click.

Taking The Mystery Out Of Venture Marketing.

Published Venture 360 Reports have embedded code

that tracks each and every investor interaction. North

provides accountability to the entrepreneur by tracking

everything, right down to the number of seconds an

investor spends reading each page of the report.

Don’t throw darts in the dark. Before you invest your time

or money in marketing your venture to investors, first

make sure you’re able to see the results of your efforts.

10.0

We truly believe that success comes through hard work and persistence. That’s why

North offers entrepreneurs a second chance to make a favorable, first impression.

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?

Even The Best Benefit From A Second Shot.

Each recipient of a completed Venture 360 Report has the option to wait 90 days

and then re-submit their business for a full Venture 360 Report at no additional cost.

While not every venture will need it, this “second shot” enables an entrepreneur to

apply the insights garnered from their first report, as well as include other

improvements to their business, to make an Angel investment more conceivable.

Second chances are rare in life. They’re even more uncommon in the board room.

Because we feel so strongly that the process for seeking investment capital needs to

be more holistic, we give entrepreneurs the option to use what we offer to strengthen

their venture and increase their odds of starring in their own comeback story.

11.0

By now you should hopefully understand what it takes to get through this

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 introduce your

innovative venture to investors. For

North Angels, this is the only way.

Time To Put Some Skin In The Game.

The Two Phase Process For Going North:

Phase I - Completing a Venture 360 Report (Roughly 5-10 business days)

1. Document Review & Target Market Analysis

2. Financials Deconstructed & Sensitivity Testing

3. Management Team Interview & Q & A Session

4. Reference Checking & Lexis Nexis® Background Reporting

5. Internal Draft 1.0 Report Review & Final Partner Revisions

Phase II - Report Distribution & Investment Marketing (Roughly 4-6 weeks)

1. Final Report Distributed to Angel Investors (Investor Interaction Report)

2. Angel Group Member Capital Call & Additional Due Diligence

3. Finalize Financing Agreements & Complete Funding Transaction

12.0

While our roster is deep, we can’t provide reports on everything 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 subject matter expert.

North executes reports across 8 market

sectors enabling us to cover 85% of all

submissions. Marketing these reports to

a large & diverse group of Angels forms

our foundation for fostering innovation.

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 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.

Reports are scheduled on a first come first served basis. All fees are billed in

advance of the project kickoff. The non-refundable report fee covers:

• Phase I and II of the North Venture 360 Report Process

• All North Analyst and Partner Expenses & Fees

• All Third Party Fees (Lexis Nexis Background Report)

• Report Publishing, Printing, & Marketing Expenses

• Investor Interaction Tracking Reports

• North Reference Calls With Investor Candidates.

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

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

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.