Jefferies Group

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MIF VC Meeting Marcus Regueira Buenos Aires
October, 2005
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about us ...

• Founded 1999, Brazil
• US48 million under management
• 18 Portfolio Companies in 3 Brazilian cities
• 3 Exits (1999, 2002 and 2005)
• 24 Associates Senior Associates include native
  speakers of Portuguese, English, Italian, Spanish
  and German
• Senior Associates hold advanced degrees (PhD, JD,
  LLM MBA) from Carnegie Mellon, INSEAD,
  Northwestern, Stanford, UCLA, Wharton, and from
  top Brazilian schools
• 14 pro-active Private Investors, successfull
  entrepreneurs themselves
• Our DNA and upbringing for MA and
  Entrepreneurial Partnerships
• Guilherme Emrich Marcus Regueira, Senior
  Partners

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FundoTec I II - Venture Capital Funds
FundoTec II R 60,000,000 MANAGED BY FIR
Capital Partners CLOSE December 2005 LEAD
INVESTORS FINEP
PETROS (PETROBRAS)
FundoTec I R 30,000,000 MANAGED BY FIR
Capital Partners CLOSED June 2001 LEAD
INVESTORS Sumitomo Corporation
Inter-American Development Bank
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Portfolio
Information Technology
Biotechnology
Alvos
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Our Model Tailored Involvement
becauseDistinct Investments have Distinct Needs.
Senior Associates Marketing Sales Human
Capital Financial / Tax / Fiscal General
Counsel Corporate Controller Technology The
Periscope
RD Partners Universities, Excellence Centers
Corporate Management Training PAEX-Tec, Dom
Cabral
Company ... n
Company 1
Company 2
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The Periscope, 24x7 scanning for

• Co-Investors
• Strategic Partners
• Competition, incl. as Potential Business Partners
• Consolidation Plays
• Technology Market Trends, in Brazil Abroad

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General Profile Prior to Investment

• Generally Undefined
• Inadequate
• Product Format
• Commercial Plan
• Goals Objectives
• Financial Metrics
• Dissonant Financial and Commercial Plans

Corporate Governance Does Pay. Absolutely
Essential.

• Inadequate
• Capital
• Management
• Managers
• Financial Controls
• Accounting
• Market Intelligence

Strategy
The Company
Structure
Management Process

• Inadequate
• Processes to support Strategy
• Cost Benefit Analysis
• Communication between Management and Board /
  Shareholders

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Our Corporate Governance Model

• Immediately Prior to Investing
• Adequate the Structure to the Avaliable
  Investment
• Adequate the Structure to the Strategy

THE FORMALITIES OF THE INVESTOR-INVESTEE
RELATIONSHIP MUST BE ADHERED TO. AT THE SAME
TIME, THE KIND OF OPEN BUSINESS ENVIRONMENT THAT
IS CONDUCIVE TO INNOVATION MUST EXIST.
PEOPLE

• Align Vision and Values and Interests
• Investors / Board / Managers
• Hands-on Board
• PAEX tec
• Hire Controller and (at times) CEO
• Controller Strong Financial Background
• CEO Strong Management Background and
  (specially) MarketingSales

STRUCTURE
The Company

• Efficient Communication Mgmt / Board /
  Sharehldrs
• Vision and Values Transparent to the
  Organization
• ConsensusDriven Decision Making
• GAAP and Independent Auditors
• Proprietary Management Reporting System (SAE)
• Formal Discipline Investor-Investee x Teamwork

PROCESS
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Our Proprietary Reporting System (SAE)
WEB BASED MANAGEMENT REPORTING (SAE) INVESTOR
RELATIONS
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Our Investment Management gt Controller
Controller Hiring PAEXtec
Due Diligence
Action Plan
Job Plan
External Auditors
Defining Structure Processes
Adherence Analysis
Periodic Reporting
Controllers Meetings Feedback
Board Meetings Feedback
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Our Investment Management gt CEO
CEO Hiring PAEXtec
Business Review Analysis
Business Plan, Budget and Periodic Reports
External Auditors
Adherence Analysis
Board Meetings Feedback
Board Meetings Feedback
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Successful Exits
Acquired by Google 2005
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Successful Exits Require

• a Flexible Strategy, Designed Prior to Entry,
• Rigorous Execution from day one.
• In addition,
• Entrepreneurs Focused on the Business in order to
  secure
• Attractive Local Market Share and/or
• World Class Technology
• Our Analysis of our investment from Acquirers
  Viewpoint,
• and, fundamentally, Adequate Corporate
  Governance.

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The Akwan Case
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Akwan Investment Cycle
Sales
Cumulative Cashflow
It wasnt a question of choosing Brazil. We
chose Akwan that happened to be in Brazil. Alan
Eustace VP de Engineering, Google (Exame/2005)
Stock-options issued to engineers
2001
2000
2003
2005
Liquidity Event
FIR Capital
Product Creation
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Marcus Regueira - mregueira_at_fircapital.comTEL
55 (31) 3074-0020please visit us _at_
www.fircapital.com