Fab 14 How-To Guide

1. Fab 14 How-To Guide Step-by-Step Guide to Pitching Your Business to Angel and Venture Capital Investors.

2. Successful Methodology • This slide-by-slide guide to creating and delivering impactful pitches is based on a proven methodology that results in funding from angel investors (wealthy individuals) and venture capitalists (professional investors of a venture fund). • It is designed to help you organize your investor pitch into a 20-minute presentation—which is about all the time you’ll get to pitch your idea in the venture industry. Your 10 minute, 3 minute and 30 second elevator pitch are derived from this model. • Based on 1,000+ successful fund raising pitches made to The Angel Society (NY Angels), Ultra Lights, ASTIA, IBM Smart Camps, General Assembly NYC, Cooley Capital Call, MIT and Wharton Entrepreneurs' forums, iBreakfasts, Venture Downtown conferences and a variety of other cities that include Boston, San Francisco, Washington DC, Los Angeles, Istanbul, Tel Aviv and other entrepreneur hot spots around the world. • More than $1 billion has been raised following this methodology. Sample companies that used this methodology include Mediamorph, Corcoran.com, LivePerson, Vindigo, Fandango, Register.com, the Knot, 1clickcharge, Intelysis, Nerve.com, kozmo.com, designeroutlet.com, feedroom.com, iclips, unplugged games, audium, cheetahmail and others.

3. Introduction and About This Deck • How many of you never made it past your 4th slide before someone else took over your presentation? • 90% of Entrepreneurs, many with excellent ideas, never get to slide 5! • Every time you speak about your venture or present a PowerPoint deck, your audience is auditioning you for the CEO role! • When you lose control of your own story, the audience starts to wonder whether you’ll do the same with your own company • This deck, which covers audio, visual, delivery and feedback, will help you deliver a successfully scripted investor pitch to follow every time

4. 4 Types of Pitches & Target Audience • Investor Pitch (Bet on “business” and me as CEO) • Angel, venture, investor target • CEO Audition; driving the point that you and your team should deliver a pitch that talks about how you are going to build a business that will scale, based on a market opportunity you’ve identified and will deliver • Solution Pitch (What “problem” have you solved?) • Mixed audience of techies and investors • Tell me what problem you are solving: I need you to explain your “beautiful baby” • We smarter folks will decide if you have an interesting business • Technology Pitch (This is “really cool coding”) • Techies only , Tech Meet Up events • Don’t ask me how we make money. • Sales Pitch (what you say to customers)

5. Style Tips • Key words, Numbers, Not Sentences • Keep thought to one line. Multiple lines signal a new thought. • If you must wrap to a second line, indent it so the beginning of each line, left adjusted, starts a new concept • Action word is the first word or key number on each line • Remove connecting words & abbreviate • Spell check-typos. Misspelled complete words, lack attention to detail • Clean Type Face • Use a non-curlicue font such as Arial • Use 18 point or higher--readers must be able to be read slides from the back of big conference room • Lose the screen shots, web shots, all “babies” look similar • Easy on the graphics, pie charts and graphs. Numbers easier to read • 5 Points per page Maximum • Line Up Decimal Points • Line up decimal points and add up numbers and show totals • Use Your Canvas Space Wisely

6. Presentation Tips • Check Your Equipment • Practice, Practice, Practice will help control timing • Follow Your Script • This is a Business Pitch, not your Sales Pitch • Understand your audience

7. The Show : Presentations • Projection and/or Large Screen TV: • Always use a screen when you can • Dark background. White letters: the light source shines through the words you want folks to read • Why? Ambient light on a white background distracts from the readability of the screen (think about reading a magazine on the beach without sunglasses!) • Handouts: • Give them out at the beginning of meeting • Print in Grayscale so you have white background in hard copy • Allow your audience to follow along as you present concepts • Read ahead • Scripted Concepts: • Use your lap top or iPad as your teleprompter • Cue talking points by using your lap top screen • Don’t talk to big screen. Pointing means you are showing audience how to read screen.

8. The Fab 14 • Fabulous 14 Slides for Presentations • Goal is to pitch a high-level, summarized view of the company • • Not a Business Plan on screen • Not a product demo for tech audience • Investor targeted pitch template for Angel thru VC rounds • • Dark background with White letters is an easier read on screen • • Slides should contain concise ideas, key words, not full sentences • • No screen shots or Web pages displayed • • No more than 5 bullet points per page • • Arial Type Face, 18 to 24 point font (simple font) • • Only one speaker, Q&A include others • • Minimize use of non-information symbols, check marks, bullet points

9. FAB14 Slides • Suggested slides: (may require some customization) • Company Title Page: with $Dollar Amount of Round and your name • Agenda: presentation roadmap, what will be said (Speech 101) • Financial Overview: top line revenues and expenses, 3 years out • Product: what is the business in simple terms • Market: what is the environment, and how big are the segments • Go to Mkt Strategy (Customers): how many, process, attracted, retained • Revenue Streams: who pays, how much & from where, annualized • Competition: who and how threatening, what are differentiation factors • Barriers to Competitive Entry: how will other competitors be kept at bay • Potential for Business/Use of Proceeds: where will money take you • Goals and Performance Objectives/Milestones: what are the success metrics • Management Team/Strategic Relationships: talent & experience • Valuation: how do you come to the number & current investors • Review: summary of what you said, same order, narrowed to 12 pts.

10. Let’s get started Building the Deck Template Implementing the FAB14 follows this page: This business pitch is based on a real case that did get funding. The numbers, dates and names have been plugged in and changed for illustration purposes. You need to plug in your own numbers and key words to personalize the deck. There are additional notes for each page in the lower screen notes section.

11. Rule #1: Speech 101 • Tell Them What You’re Going to Tell Them • Tell Them • Tell Them What You Told Them • Use the Agenda slide • Listener/viewer needs to know where you’re going with their time • 90% mid-presentation questions avoided by following Rule #1

12. Games On the Go • $ 2.5m Interim Round • $ 20.0m Institutional Round • John Smith • CEO and Founder Games on the GO

13. Overview/Roadmap of presentation • Financial Overview • Products • Markets • Customer Strategy & Distribution • Business Model • Competition • Barriers to Entry • Use of Proceeds • Management Team • Milestones • Valuation & Investors Games on the GO

14. Financial Overview ($m) Games on the GO

15. Products • Mobile Games Service • Suite of easy, device friendly games • Designed to the strengths of the medium • Portable: Play anywhere • Ubiquitous: Play anytime • Networked: Multiplayer games • Voice: Build communities • MobileStage Platform • Carrier-grade stable & scalable architecture • Customer & community support • Client device & platform agnostic • Low-cost billing & provisioning carrier support Games on the GO

16. Wireless Market • Near Term: Smart Phones • x.0b people using devices2010 (IDC) • $x.0b world wireless games market 2009 (Datamonitor) • xx.1m phones in USA 2010 (Forrester) • xxx.0m phones in Europe2009 (Forrester) • xxx.0m in Europe & North America2009 (Strategy Analytics) • xx.0m North American phones 2010 • Long Term: Smart Pads and tablet computers Platforms • Handheld game console w/built-in phone • iPad • Third generation (3G), 4G, LTE mobile networks • Bluetooth-enabled Games on the GO

17. Games Market • Fastest growing entertainment market segment • $8.0b US game software market • $1.6b Wireless games US & Europe 2009 (Datamonitor) • 33% Internet users play games online • 90% Internet gameplay is multiplayer • Games are “stickiest” sites on the Internet • 120 min/month (Game Names, specific) • 2000 min/month (Game Names, Nielsen) Games on the GO

18. Games Market (2) • Online player demographics (IDSA) • 53% women & outnumber men • 40% household income >$60k • 60% between the ages of 25-44 • 21% play at work • Wireless game targets • Online gamers • Mobile Warriors (business and self - employed) • GameBoy kids • Generation Y: cellphone generation • Market taste-makers • What GenX did for MTV in 1987 Games on the GO

19. Go to Mkt Strategy (Customers) • Contracts • Verizon, first product delivered Nov 15, 2000 • Top “Games” menu placement • Additional games rolling out in Dec, Jan, and Feb • Three revenue streams • Sprint, business terms agreed • Delivering 3 applications by Feb • Multiple revenue streams • Development MOUs • Motorola • Negotiations Ongoing • Several major carriers Games on the GO

20. Revenue Streams ($M) Games on the GO

21. Competition* • US • iEntertainment Network (PC games focus) • Jamdat • EA Games going mobile • Zynga and other social gamers • Pogo.com (Nokia investment) • Europe • Developers: Digital Bridges, In-Fusio, Riot-e - Most have little or no multiplayer game experience - Many lack online operations experience + Access to wireless savvy culture and developers • Nokia - No game development experience - No community management experience + Access to operators + Control of hardware Games on the GO

22. Barriers to Entry • Platform integration experience (COLS, early Internet) • Patentable Platform Applications • Favored screen placement • Multiplayer game experience (10 years online) • Proven online content development and delivery • Built stable and scalable back-end systems • Supported large player communities • Carrier integration, 100k+ simultaneous players • Stable platform • Customer retention, operators & portals Games on the GO

23. Use of Proceeds ($Ms) • Interim Round Payroll $1.25 Overhead .42 Capital equipment, hardware & software .36 Legal & other professional fees .18 Travel & Entertainment .06 Accounts Payable (primarily NOC) .22 Marketing & public relations .01 Total $2.50 Games on the GO

24. Milestones Accomplished • Launch Games on the Go Jan 2011 • Closed $1.0 m financing Feb 2010 • Signed Verizon Distribution Contract Sept 2011 • Delivered 1st game to Verizon Nov 2011 • Sprint business terms agreed Nov 2011 • Interim financing round Dec 2011 Games on the GO

25. Milestones Ahead Hire 4 game architects/developers Q1 Sign AT&T distribution agreement Q1 Deliver 10 additional games to all dist Q2 Move data centers to cloud Q3 Establish international sales office Q3 Sign 5 international carriers Q4 Deliver 15 games to international carriers Q4

26. Management Team • CEO and President, John Smith: • 50+ games w/Time Warner, News Corp, Sony, AOL • Co-designed 1st 100,000 player online game, AngryMan • CFO Adam Low: • 15 years of game sales, $1M+ each yr., last 5 years • Comptroller Activision, Financial Analyst Electronic Arts • CMO Jennifer Hobarth: • Comptroller, Bank of New England; Fin. Analyst, iVillage • MBA, NYU Stern, B.A. Economics, Wellesley College • Chief Designer, David Hale: • Designed and published 27 electronic & paper games • Clients include Viacom, France Telecom, Mattel, Sarnoff Games on the GO

27. Valuation & Investors • Seed Round: $ 1.0m @ $3.0m pre • A Round: $ 2.5m @ $5.0m pre (pending) • B Round: $20.0m @ $8.0m pre (pending) • Current Investors • East River Partners • David Schwartz • Jonathan Costello • Big Apple Ventures • Tim and Tom Equities • Strategic Advisory Associates • Telecom Ventures Games on the GO

28. Review • Financial Overview $263.1m revs in Y4, $94.0m net income • Products Scalable, stable platform, multiplayer games • Markets ½ b web phones ’02, 200 mins/month, MTV • Customer Strategy Verizon, Sprint, Motorola, major carriers • Revenue Streams Platform, airtime, sponsors, subscriptions • Competition US, pogo.com; digital bridges & other EU • Barriers to Entry Team, platform patents, distrib., multiplayer • Use of Proceeds Development, distribution, operations • Management Team Game, platform & seasoned management • Milestones Signed contracts, first games delivered • Investment $2.5m interim, knowledgeable investors Games on the GO

29. Next Steps • Due diligence session • December 6, 2011 • 12 - 2pm • 222 Broadway @ 23rd, 4th Floor • Contact Info: • John Smith • o) 212.123.4567 • c) 646.123.4567 • jsmith@gamesonthego.com • Questions / Feedback? Games on the GO

30. About McAdory Lipscomb, Jr. • Mac is a startup strategist that coaches early stage CEO’s on how to define their Go to Market strategies and deliver the fundraising pitch to angels, VCs and the market. • He is the official pitch coach for NY Angels, Ultra Lights, ASTIA, as well as an international mentor for IBM’s Smart Camp and the Entrepreneur Roundtable Accelerator. Mac created and teaches the Master Pitch Workshop and is a member of the faculty of General Assembly in New York City. • His career ranges from CEO (The Political Channel), to venture capitalist (RRE Ventures), to angel investor and developer of the Angel Society (NY Angels) to advising corporate CEOs including the IPO road show for Live Person. Mac’s global leadership roles include partner at Accenture, EVP of Showtime Networks, WorldSpace/xM satellite radio to presidential campaign roles. • A Senior Fellow at the Annenberg Center for the Digital Future at USC, he has an MBA from Colorado-Boulder, an MA in Speech from Auburn University, and a BA in Government and Politics from Maryland, College Park, where he currently serves on the Board of Visitors for the College of Behavioral and Social Sciences. McAdory Lipscomb Jr.