So You Want to Raise Capital… Presentation to Venture 128 North at The Enterprise Center March 26, 2008

1. So You Want to Raise Capital…Presentation to Venture 128 Northat The Enterprise CenterMarch 26, 2008

2. Overview of DKH Services DKH Enterprises works with early stage companies to refine strategic focus and clarify the business model especially the economic engine for growth.  DKH’s goal is to preserve the entrepreneur’s ownership and to ensure that they participate in the success of the company they founded. Capital strategies involve all forms of asset financing, alternative debt, angel and venture equity.   DKH Enterprises works with a number of business colleagues - collectively they can help with the strategic, marketing, financial planning/modeling and operational aspects of the business to assist in growth.  Bonnie Henry’s particular experience is with consumer packaged goods companies. DKH Enterprises, Inc. Business Advisors

3. Bonnie Henry’s Background • Bonnie has over 25 years of proven entrepreneurial and leadership experience across multiple industries; 13 of those years with P&L responsibility. Her success in launching new ventures both internally and externally is supported by her unique blend of experience as a successful entrepreneur, general manager, and strategy consultant. She has worked with both large and early stage companies including: Frito-Lay, Pillsbury, Estée Lauder, Ross Stores, Blue Cross & Blue Shield of Massachusetts, and Scottish Rite Children’s Hospital. • Bonnie was the co-founder of Hellas International, Inc. where she developed the preeminent brand of Greek specialty foods in North America. She successfully sold that company to Krinos Foods in 2004. She serves on the Boards of several food products companies and is a past member of the Commonwealth Institute. • Bonnie works with early stage companies and their management teams to clarify strategy, accelerate growth, and position for exit. She brings particular strength in strategic issue analysis, strategic positioning, new channel development, product development processes and driving operating results. A recent client engaged her to work with them to raise 2 rounds of capital, work on the conceptual team for product launch, and serve as interim COO. • Bonnie earned an MBA at The Wharton School, University of Pennsylvania and holds an undergraduate degree in Business and Communications from State University of New York, Plattsburgh. DKH Enterprises, Inc. Business Advisors

4. What Investors Want • What evil lurks inside? You are going to be living together for several years; find someone you will respect and enjoy working with DKH Enterprises, Inc. Business Advisors

5. What Investors Want • First and foremost this is an investment • Many are active philanthropists, but not how they are looking at your business – can you produce venture level returns – 6 to 10x within 4-5 years • What is your company’s current value, how will you exit and what examples have occurred in your industry? • Management Team – experience and character • Confidence versus Humility - Have you been honest about what your personal capabilities are; can you hire up? • Be honest about the risks and challenges you face – investors don’t expect perfection • You are entering a relationship – love at first sight versus building trust; integrity above all else DKH Enterprises, Inc. Business Advisors

6. What Investors Want • Proven Business Model • Customer behavior model; economic drivers; how do you make a profit? • Model Scalability • Organic growth versus step function growth • Financial Management & Integrity • Often look for some track record to gage capability • Knowledge of standards for capital structure and for corporate governance • They will look for protection against shareholder suits; involvement and control of certain decisions DKH Enterprises, Inc. Business Advisors

7. When to Look for Investment • Is equity capital right for your company? • Why are you doing this? Are your interests aligned with investors or are you looking for a lifestyle company? • Why do you need the capital? What is it for? • Does your business need to build infrastructure or invest in distribution in order to grow? • Is the path to growth clear (new customers, new channels) or is it more likely that you will grow organically? • Have you considered other forms of financing? • Self, Family & Friends, SBA loans, Banks, Grants, Revenues • Why would you want to give away your company if you don’t have to? DKH Enterprises, Inc. Business Advisors

8. How to Position for Success Demonstrate that you know your business • Business, market, opportunity snapshot (what business are you in) [this is also your elevator pitch] • Opportunity summary – what makes this a compelling investment opportunity – the market, the solution, the exit • Big Market Opportunity • Management Team supplemented with the key advisors • Problem/Unmet Needs/Aspirational Needs and Solution • How has the brand been received – evidence a brand is being built • Penetration Strategy/Channel Strategy – what already accomplished • Comparison to competiton (best if this is market facts, eg., consumer spend, turns, etc) • Key financials (see JR format) • Capital raise and use of funds • Potential exit and path to exit DKH Enterprises, Inc. Business Advisors

9. What You Should Want • All investors are not created equal- you get to chose as well • Trusted advisors to help you navigate and negotiate • Fairness in valuation of your company and its assets, especially IP • Investors who understand your business and can bring their knowledge to bear to help you grow. Find investors that respect you and what you have created DKH Enterprises, Inc. Business Advisors

10. What you can expect • It will take longer than you expect (a factor of 4) • You will give away more than you expect • It will take almost all of your time • You will find it nearly impossible to “read” potential investors • You will not be in control • Or left in control DKH Enterprises, Inc. Business Advisors