Roser Ventures, LLC

Investment Process & Criteria

Roser Ventures' evaluation process involves four primary considerations: management, market position, return on investment (ROI), and risk factor. The process is summarized as follows:

1. A business plan or an executive summary must be submitted. Proposals that clearly do not fit our criteria are returned, and a written or telephone response is made.

2. After the initial screening, the plan and/or summary will be reviewed by a Partner. The reviewing Partner will determine whether the plan meets the necessary criteria for further evaluation. These include:

§ Management background

§ Market size and growth

§ Proprietary attributes of the product

§ Market leadership

§ Strength of business model

§ Projected investment return/risk level

§ Liquidity potential

§ Existing, co-investors and follow-on investors

3. When a plan meets initial review criteria, it is moved on for more comprehensive evaluation. This due diligence process includes many meetings with management, analysis of the market, talking with references, and contacting other sources. If other potential investors are involved, this information is exchanged and concerns are discussed. The purpose of this entire process is to gain a comfort level or an understanding with the product, the marketplace, the business model, and management.

Once an investment has passed the review process, Roser Ventures will create an investment proposal. When structuring the proposal, the following considerations are important:

§ Management ownership

§ Valuation and size

§ Preferred position/downside protection

§ Need for additional investors

§ Syndication

§ Board of Directors

§ Registration rights

§ Pre-emptive rights

§ Use of proceeds

4. Follow-on monitoring and Board participation are the primary responsibility of the reviewing Partner. At each Partners' meeting, updates are provided by the responsible partner for all portfolio companies.