Enterprise Collaboration & Social Software

June 2013 INDUSTRY REPORT INSIDE THIS ISSUE Enterprise Collaboration & Social Software 1. Introduction INTRODUCTION 2. Market Trends This report focuses on technologies for collaboration and socialization within the enterprise. A number of forces are currently playing out in the enterprise IT 3. Competitive Landscape environment that are creating an inflection in the adoption and deployment of social and collaboration technologies. This significant uptrend has provided strong 4. M&A Activity growth for the sector and is driving a substantial amount of M&A and investment activity. This report includes a review of the recent M&A and private investing 5. Private Financings activities in enterprise social and collaboration software, particularly within the areas of group collaboration & workspaces, private social platforms, project and 6. Valution Trends social task management, event scheduling, web collaboration, white boarding & diagramming, and other related technologies. We have also profiled about 50 emerging private players in these subcategories to provide an overview of the 7. Emerging Private Companies breadth and diversity of the players targeting this sector.

OVERVIEW Socialization and collaboration technologies are currently reshaping the established enterprise collaboration market as well as creating whole new categories of offerings, especially around private social platforms. In addition, many other enterprise applications such as CRM and unified communications are heavily transformed through the incorporation of new technologies including group messaging & activity feeds, document collaboration, and analytics. Much of this change is being driven by the consumerization of IT and the incorporation of social technologies. As businesses look to leverage the benefits of improved “connecting” and “network building” that employees have experienced with Facebook and other social solutions, a convergence is occurring between the enterprise social software and collaboration markets. While online collaboration platforms like Webex and CRM solutions have been around for years, theyare being reinvented through the integration of social and collaboration technologies. Advancements in other technologies including programming & mark-up languages, browser technologies, and other cloud computing capabilities have also helped facilitate the deployment of collaboration and social solutions. Enterprise Traditional Enterprise Enterprise Social Collaboration Applications Networking

. Unified Comm. . CRM . Conferencing . Content & Document Mgmt. . Work Flow / Business Process

Contact: Russell Crafton, Partner [email protected] 212.508.7110

Redwood Capital 885 Third Avenue, 25th Floor Incorporating Socialization and Collaboration Technologies will drive New York, NY 10022 convergence of legacy applications across the enterprise landscape www.redcapgroup.com

It is important to think of socialization and collaboration, not just as point solutions, but rather as activities that encompass a wide range of functionalities that can be incorporated into many enterprise applications. Further, we think the idea of “social networking” for the enterprise has given people the impression that these applications are simply chatty online versions of the proverbial water cooler. In fact, many tasks and projects that must be completed in a business www.redcapgroup.com Page I 1 Enterprise Collaboration & Social Software

context require connecting and collaborating with other works both inside and outside the enterprise. The concept of “social software” in this regard is really around providing a software platform that helps coordinate these connections around a work activity (such as processing a customer complaint or processing a claim or new account, which requires both connecting with other works as well as completing certain documentation. As a result, private social platforms simply provide a useful means for workers to comment, share, collaborate and follow the flow or completion of a project or task. Later is this document, we discuss the differences between people-centric platforms vs document centric platforms. While some platforms may truly be document centric (such as an online whiteboarding platform) or people centric (such as a CRM related application), we suspect that over time, many platforms will integrate the concept of both the social as well as the document management side to provide solutions that significantly improve the efficiencies with which workers can perform their daily activities. One of the most significant dynamics currently playing out is the battle of horizontal platforms and the race among players to gain an established position in their relative markets. As with many other areas in technology, companies that start off focused on specific features, such as chat, click to call, or web conferencing, find the needto incorporate other functions and evolve into broader platforms. Likewise, the larger platform providers must constantly incorporate new capabilities which emerge and that users demand. That is definitely the case in both the collaboration and social spaces. While some functionality can be developed and built into existing offerings, many players turn to M&A to execute this more quickly or lock-up leading technologies. This is evidenced by the many acquisitions undertaken by Jive, Salesforce, Cisco and others (see page 17-18). We believe the battles of these “platforms” have only begun and will continue to drive M&A activity in future. As part of the platform battles, we have also heard from a number of players, particularly those with horizontal offerings in private social platforms, on strategies around leveraging their platforms through integration with third parties. These strategies include providing APIs to allow the integration of their platforms with other applications or in building channel networks with ISVs to develop specialized apps that ride in the back of a given platform. We believe this strategy may enable some players to create very large businesses by allowing others to take their horizontal platforms and help create solutions for industry verticals (health care, finance, transportation) or functional areas (customer engagement, content management, unified communications and human resource management) that will better suit the needs of select customers. We discuss this in detail in trends #3 and #9 later in this document. MARKET GROWTH While the enterprise social and collaboration software sector is experiencing substantial growth, as with any new, emerging area, trying to get an accurate estimate of the market size or potential, is challenging. A recent report by IDC estimated that “enterprise social networks and collaboration” will grow from $800 million to $4.5 billion by 2016. While this certainly implies robust growth, we believe there are a number of relevant categories the IDC study did not include, such as project management software and certain vertical- oriented solutions, which only make the opportunity that much larger. Project management and vertical solutions are particularly important sectors as we expect players focusing on specific industry verticals or functional areas to offer highly compelling ROI propositions to CIOs and thus remain competitive against the larger, horizontal platforms offered by established enterprise software vendors. Enterprise Social Networks & Collaboration Market 5 $4.5

4

3

$ billions $ 2

$0.85 1

0 2011 2016 Source: IDC www.redcapgroup.com Page I 2 Enterprise Collaboration & Social Software

M&A ACTIVITY Perhaps one of the most important signs of an accelerating market, and also reflecting some degree of market maturity, is the amount of M&A activity in which larger players are engaged. Most large enterprise software players have made some initial bet on either the collaboration or the social side. Microsoft’s recent acquisition of Yammer, and a series of acquisitions carried out by Salesforce, VMware, Google, and Jive represent this trend. These are clear indications that the collaboration and social solutions markets have gone mainstream within large and mid-sized enterprises. In fact, a recent study by McKinsey found that 70% of enterprises had deployed some form of social or collaboration software, and 90% of those had indicated that they believed they were receiving some material benefits. This belief in a strong ROI should continue to drive a steady amount of M&A activities for many years to come as larger players add new capabilities and expand into adjacent categories through their now established beachheads. We expect this trend to follow a few key paths with players in the areas of unified communications and collaboration (Cisco, Citrix, Polycom, Microsoft) being more acquisitive of collaboration technologies, while players focused on customer engagement, CRM, or a consumer dominated customer base to target the social side. However, over a period of time, the convergence of both social and collaborative technologies into single platforms will dramatically enhance the benefits that these solutions provide. As a result, we expect vendors to increasingly carry out acquisitions in adjacent areas of social or collaboration to bring the benefits of these new features into more fully integrated applications. M&A Activity Across the Social and Collaboration Landscape Social Oriented Transactions Buyers Collaboration Oriented Transactions

Code Mine Online cloud-based image tools and utilities Social collaboration software Qontext ($26m) Autodesk platform Instructables ($3m) Web-based documentation platform

RingCube ($33m) Managed virtual workspace

Podio ApS Online collaborative work platform Citrix Offers GoToMeeting to hold online meetings Netviewer AG and Web conferences

Podio ApS online collaborative work platform

Web-based instant messaging Office software solutions for mobile phones/ Meebo Quickoffice service company smartphones

Google Real time sharing and simultaneous group- Mail application for Mac and Sparrow SAS DocVerse, Inc. editing of Microsoft PowerPoint, Excel, and iPhone Word documents

Real time in person hangouts Producteev Online task management applications or as a telepresence system to Bitplay, Inc. Jive Software Collaborate on documents by integrating MSFT attend meetings. Offisync ($27m) Office with Google Docs and Google Apps.

Enterprise social networking Yammer ($1.2b) Microsoft portals

Web experience management solutions FatWire for content authoring, site design, content Oracle publishing, targeted content delivery.

Instantis, Inc. Project portfolio management solutions

Accordent ($50m) Enterprise video management solutions Polycom Participative event platform that enables live ViVu video participation

Dimdim ($37m) web conferencing solution Pulls all customer conversations Assistly ($55m) SalesForce into single collaborative desktop Stypi real-time collaboration platform.

Collaboration suite to create CubeTree ($49m) internal social networks+C27:C58 SuccessFactors social learning platform Jambok ($10m)

Open source email, address book, calendar, Zimbra ($100m) tasks, and collaboration software. Enterprise social software Event Robot VMWare SlideRocket Online presentation software solutions

Source: Capital IQ (in $ millions)

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MARKET ISSUES AND TRENDS Below are some of the key trends we think are important to watch out for and will have a significant impact in shaping the evolution of the market over the next few years. 1. External Social Tools Well Ahead of Internal Social: While platforms and tools for internal social networking are still in their infancy and enterprises are still in their experimentation phase, platforms for external social activities and customer engagement, typically that work in conjunction with CRM solutions, are already becoming well established and more sophisticated in their use. Since external social tools are more directly associated with revenue generation and customer support, we suspect that enterprises have more quickly embraced these offerings. However, there is a significant opportunity for internal tools as well, especially if they can be integrated with information and data coming from the external social processes. 2. Analytics Will Be A Key Differentiator: In the age of big data and analytics, one of the biggest opportunities for social software, both internally and externally, isthe collection of data and the extraction of important trends & intelligence. In order to facilitate this, social platforms have analytics engines that enable them to process massive quantities of data. A number of analytics start-ups have already been acquired by larger players, such as the acquisition of Radian6 by Salesforce, showing that while the potential benefits of other social or collaboration tools may still be in question, the value obtained through analytics is believed to be high. Further, strong analytics will likely become one of the key differentiators for players in the social space over a period of time. 3. Convergence-Based M&A: As shown on the chart on page 3, many players are using acquisitions to integrate collaboration offerings with social enterprise functionality. Jive’s acquisitions of Producteev and Offisync provide important collaboration capabilities for Jive’s social platform while SuccessFactor’s (SAP subsidiary) acquisitions of Cubetree and Jambok bring incremental social networking capabilities to the companies’ human resource management platform. Other players like VMware have been active on the collaboration side, acquiring Zimbra and SlideRocket, as well as on the social side with its acquisition of Event Robot. We expect these convergence-based acquisition activities to continue for some time as the opportunity to enhance a wide range of enterprise applications by incorporating social and collaboration technologies is substantial, as per our next point below. M&A Deals in Enterprise Collaboration Market 50

39 40 34

30 23

Number of Deals 20

10

0 2010 2011 2012

Source: Capital IQ 4. A Large ROI May Be Beside the Point: While IT spending in the recently challenging economic environment has focused CIOs and CFOs on mission critical applications and proven ROI, studies are increasingly showing that the increased productivity and incremental revenue opportunities presented by enterprise collaboration and social software are quite significant. A recent study by the McKinsey Global Institute estimated that the “annual value that could be unlocked by social technologies” could be up to $1.3 trillion. The McKinsey report also states that achieving the benefits will require significant changes on the part of the management and employees to find the right ways to embrace and incorporate collaborative and social activities. However, while the ROI may be large, it can also be difficult to measure. CIOs and CFOs will need to be careful in not trying to be overly exacting in quantifying the economic benefits. Can they estimate the ROI on their telephony system? Whatever it is, telephony is simply a necessity to operate the business. As employees collaborate and communicate in new ways, social and collaboration platforms may simply become a necessity as well – as email quickly did after its introduction not so long ago. www.redcapgroup.com Page I 4 Enterprise Collaboration & Social Software

5. Yes, Mobile: While we’ve maintained our focus on social and collaboration activities, enterprise applications can’t ignore the need to include mobility as part of their offering. This requires more than just providing mobile access to platforms. Integration of mobility raises issues of synchronization and security, which can be no easy task. However, with workforces that are increasingly mobile and working virtually, ensuring that users can access and participate in the collaboration or social offerings being deployed is critical. 6. Features vs Products: Given the plethora of small start-ups, it is important to distinguish between players that have platforms versus those that are simply “features” that enhance a broader platform. It is not that platforms are necessarily better, but it is important for feature-oriented companies to understand their position in the competitive landscape and develop their business models and exit strategies accordingly. Businesses that are point solutions or “features” must develop a sustainable business model around partnering or integrating with other players and establish a revenue model that supports this approach. Feature-oriented businesses also need to keep a close eye on the competitive landscape to ensure they don’t become commoditized before they can execute their exit plan. 7. Many Players, A Lot of Shakeout: Our review of over 200 emerging private players constantly had us coming across websites that were closed or announcing the termination of services, especially in the areas of conferencing and group collaboration solutions. While many of these involved small players without any material funding, we expect to see a continued shakeout, including some larger, more established players in crowded spaces. There are literally dozens of players in the areas of project management, group collaboration, web conferencing, and online white boarding & diagramming, many with at least several million in institutional capital. As the markets within these areas mature, there can only be room for a limited number of players to succeed or evolve. As a result, owners and investors must closely watch the competitive landscape to know when to invest, when to sell, or when to throw in the towel. Further, with software businesses becoming increasingly easy and inexpensive to launch, early-stage investors must sort through an ever greater number of options to find which players have truly developed compelling solutions and are worthy of larger funding rounds. 8. Enterprise vs SME Markets: An important segmentation for the collaboration and social software space is the size of the business. There is a clear distinction between the small business market and larger enterprises. Jive Software targets enterprises with over 1,000 employees, of which it estimated that there are around 9,000 in the US. In organizations of this scale, social software can be extremely helpful in allowing employees to stay connected, share information, and manage and collaborate on constantly evolving virtual teams. Employees at smaller businesses, on the other hand, may have less of a need for social technologies and may focus more on platforms offering collaboration. While this may not always be the case, we believe understanding the differences in worker behavior and employee interactions (internal vs external) at large and smaller enterprises is critical for players in determining their target markets, by size of enterprise, and establishing their go-to-market strategies. 9. Vertical Specialization: While the market for collaboration platforms will definitely grow, we believe larger players will quickly dominate the market for horizontal platforms, just as they have done for conferencing. The more interesting opportunities for emerging private players will be along vertical lines, developing project management solutions for specific verticals, such as insurance, industrial design, and media production. In our review of the landscape of emerging private players, some of the more compelling models involve players with vertical solutions targeting areas such as Proxio in the real estate area. Creating industry or niche market-specific solutions can allow players to develop truly compelling solutions that provide high ROI to their customers. For example, in the real estate vertical Proxio has developed a platform like LinkedIn, specifically for real estate agents, which is particularly useful in international markets where the equivalent of an MLS listing does not exist and agents have a tough time ensuring interested buyers learn about their properties, or find new properties for their buy-side clients. There are many verticals like this that have unique problems which result from imperfect or limited information flow and are excellent markets for social technologies.

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10. Continued Growth in Venture Funding: Venture funding for the social software and collaboration sectors ramped up significantly in 2012 to over $853 million and we expect this funding to continue. While some categories are maturing and larger players are carrying out acquisitions now, there are many niche markets and platforms that are yet to be developed and existing product offerings that can be improved and completely reinvented through the creative incorporation of collaboration and social technologies. As a result, there will be a continued trend of large number of early- stage companies with promising business models for venture investors to fund and help grow. In fact, while there were a few larger rounds over the past 18 months (see page 20-22), much of the investing activities during this period still involved early-stage (series A & B) investments. In addition, as a number of well-established private players are now emerging with sizeable customer base and profitable businesses, many growth equity players will find attractive opportunities to participate by providing capital to help boost sales as well as market or fund M&A activities. Private Financings in Enterprise Collaboration Market $ mn 900 60

750 50

600 40 450 30

Total Capital Capital Total Raised 300 Number of Deals Number

20 150

0 10 2010 2011 2012 Total Capital Raised Number of Deals

Source: Capital IQ

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COMPETITIVE LANDSCAPE Since the offerings from players in the enterprise social and collaboration sectors include a wide range of differing features, it can be difficult to compare the competitors and their platforms and even determine the categories in which they really compete. Further, the terms “collaboration” and “social software” are used with widely different meanings, each often with the intent of including the other. However, socialization and collaboration are different, and while being closely related, involve different functionalities. In order to help break down the space, we find it useful to look at the core focus of an application. In general, most solutions fall into two core areas of focus: document-centric or people- centric. DOCUMENT-CENTRIC OFFERINGS: Document-centric offerings are based on collaboration, content or data sharing, or presenting content (documents, files, presentations). Players in this area often fall into categories traditionally thought of as “collaboration” such as online workspaces, project management, file sharing, authoring & commenting tools, webcasting & web conferencing and wikis. Source: Internet • Group Collaboration Workspaces: These platforms allow multiple people to form conferences in real-time or work independently on documents. Project spaces can be created for different teams where files, messages and other content can be created, revised and stored. Functionalities can include video conferencing, calendaring, white boarding & web conferencing and wikis. • Project Management Systems: Allows for the scheduling, tracking, and charting of the steps in a project and may include collaborative workspaces, file sharing, and conferencing. Unlike group collaboration spaces, project management systems are organized around projects, such as construction, software development, or other project-oriented activities. As many project management solutions are now heavily focused on bringing people together for completing tasks, many solutions for task and project management are now as much people-centric as they are document focused (hence our inclusion of the Social Task Management Category in the people-centric section below. • Electronic Calendars & Time Management: Allows users to schedule events and automatically notify and remind group members. • Online Proofing & Editing: Solutions for sharing, reviewing, approving, and rejecting video, proofs, artwork, or photos between editors, producers, designers, customers, and clients. • Mind-mapping and Diagramming: Allows users to collaboratively create mind-maps, flowcharts and other graphics useful for group activities. • Conferencing: Conferencing can take many forms including audio, web and video conferencing. Email and chat or IM capabilities may also be included. While the market for conferencing solutions is mature and commoditized, collaboration functionality is being incorporated into conferencing platforms, by established players like Cisco and Citrix.

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PEOPLE-CENTRIC OFFERINGS: People-centric solutions are focused on human interactions and are designed to make these interactions more productive. While people- centric offerings may include some document- centric tools, their core focus is on human interaction. Players in the space range from offering full platforms for building private social platforms, such as Jive, Yammer and Lithium, to more niche-oriented players focused on specific solutions such as microblogging. While most major enterprise software vendors now include some social offering to enterprises, customers are still early in their adoption and in understanding the right ways to incorporate these solutions into their IT strategies. Below Source: Internet are a few of the key subcategories of people- centric/social software solutions: • Private Social Platforms: These platforms from players like Jive, Lithium and Unison provide a broad set of social capabilities including messaging & activity stream discussions, employee onboarding (helping to connect new employees and provide training information), collaboration & document sharing, and intranets. While the capabilities vary among players, they can be tailored for each enterprise. Players like Jive, focus on platforms for facilitating communication internally within the enterprise (although Jive supports customer-focused activities as well). • Social Task Management: Social task management, while similar to document-centric project management solutions, is a people-centric distinction. Many private social platforms are essentially focused on task management so this category is also perhaps just a slight narrowing of the broader private social platform concept discussed in the point above. While many of the tasks workers perform focus on a document, email or form, much of this work is often done in collaboration with others. As collaboration and private social platforms integrate these two aspects, many project or task management systems become as much people-centric as document-centric. • Social CRM: Players in the social CRM space, like Lithium, focus on socialization externally, primarily around customers. These solutions aim to help users develop a much better view of the customer by mining available information from other social sites and online information. Players in this area tend to either build social profiles (such as Jigsaw or Reachable) or focus on other types of analytics (such as Reachable). • Peer Review & Ideation: These solutions allow users to share ideas, products and offerings and solicit feedback & guidance. The final goals can vary from getting groups to brainstorm on ideas to soliciting opinions to determining the attractiveness or ranking of something. • Other Social Tools: There are a number of other technologies used to facilitate better social interaction including community-oriented platforms, recommendation engines, and chatting & microblogging solutions. Many of these functionalities are incorporated into broader platforms, or used as point solutions for specific groups.

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M&A Activity M&A ACTIVITY – 2010-2012 The table below shows that the deal activity in the enterprise collaboration market has continued to grow over the last three years, driven by continued interest among acquirers for the integration of social and collaboration technologies with enterprise software. The number of completed deals grew to 39 in 2012, from 34 in 2011 and 23 in 2010. Over the past three years, the total disclosed value for M&A deals jumped to its highest level of $1.54 billion in 2012 from $667 million in 2011, driven largely by the large Microsoft-Yammer deal for $1.2 billion. The Yammer deal also inflated the average deal value for disclosed deals to its highest level of $192 million ($48 million excluding the deal). However, the median deal value of $23 million in 2012 was lower than the $30 million recorded in 2011. The high deal size and multiples in 2010 were primarily driven by two large deals –IBM’s acquisition of Unica and Adobe Systems’ acquisition of Day Software – accounting for a combined deal size of $697 million out of $1.06 billion in total for the year. We note that the enterprise collaboration and social software market is still developing and smaller players remain primarily focused on driving revenue growth, which in our view, should lead to more focus on revenue multiples.

Total Average Average Average Median Median Median Year Deal Volume Disclosed Deal Revenue EBITDA Revenue EBITDA Deal Value Value Value Multiple Multiple Multiple Multiple

2012 39 $ 1,539 $ 192 $ 23 2.3x 7.8x 2.0x 7.8x 2011 34 667 39 30 2.7x 18.2x 2.6x 18.2x 2010 23 1,062 118 59 3.5x 35.0x 4.1x 35.0x

Source: Capital IQ (in $ millions)

M&A Activity in Enterprise Collaboration Market $ mn 1,800 40

1,500 35

1,200 30 900

25 Deal Volume 600 Total Disclosed Value

20 300

0 15 2010 2011 2012

Total Disclosed Value Deal Volume Source: Capital IQ

ACTIVITY IN 2011 AND 2012: With the US proving to be a breeding ground for a large number of cloud-capable players, it is no surprise that most of the deal activity over the past three years in the enterprise collaboration space was concentrated in the US. In 2012, target companies in the US accounted for 28 out of the 39 deals we identified, while their corresponding deal value stood at $1.26 billion out of $1.54 billion. In 2011, target companies in the US accounted for 26 out of the 34 deals and $459 million out of the total deal value of $667 million. In 2012, Google was the most active acquirer in the enterprise collaboration space with three acquisitions for an undisclosed amount, namely: Quickoffice (provider of file editing, synching and sharing on mobile platforms), Meebo (provider of social advertising platform) and Sparrow SAS (French email technology developer). Jive Software, a provider of social collaboration software, completed two acquisitions in 2012 including Producteev (provider of cloud-based task management platform) and Meetings.io (and its company, Bitplay), a web browser-based chat and video communication platform. Until 2012, most of the deals in the enterprise collaboration space were primarily small. However, in 2012, the largest disclosed deal was Microsoft’s acquisition of enterprise social-networking company, Yammer for $1.2 billion in cash, which marked the first time a deal in this sector crossed the $1 billion threshold. Microsoft acquired Yammer in July 2012 to expand its footprint in the emerging social enterprise software space and retain its domination in the enterprise software market to ward off increasing competition from Salesforce.com, Jive Software and Google. The deal could enable Microsoft to integrate www.redcapgroup.com Page I 9 Enterprise Collaboration & Social Software

Yammer into its key software suites such as Office 365 and SharePoint, thereby providing a robust social layer for all its suites. According to IDC, Yammer’s revenues grew by 132% y/y to $22 million in 2011, which puts the deal valuation at 54.5x 2011 revenue, significantly higher than the average and median multiple of 2.3x and 2.0x, respectively in 2012. If we assume that Yammer would grow at similar rates, the deal would be at approximately 25x 2012 revenue multiple (the mid-point of 2012 revenue). The high valuations reflect Yammer’s strong growth prospects, especially from the future integration into Microsoft’s tools and its strategic importance to the acquirer. In our view, through Yammer, Microsoft intended to establish a major beachhead in the social software space. The second-largest deal in 2012 was Avaya’s acquisition of Radvision, an Israeli company engaged in developing high definition (HD) and converged conferencing solutions for $218.9 million. The revenue multiple of 2.1x was in line with the median multiple for the year.

M&A VALUATION TRENDS Although the deal value in 2012 was at its highest level for the past three years, the median revenue and EBITDA multiples have continued to moderate. The median for last 12 months revenue and EBITDA multiples of 2.0x and 7.8x in 2012 declined compared to the previous year. In April 2012, venture capital firm, Sofinnova Partners exited from blueKiwi Software, an enterprise collaboration software provider, which was sold to Atos Origin at a substantial valuation of 4.0x revenue, probably reflecting the strength of blueKiwi’s technology on internal collaboration. In 2011, some deals such as the acquisition of Accordent (provider of video content management technology) by Polycom for $50 million at 5.6x revenue and that of Qumu (provider of corporate video services) by Rimage Corp for $52.8 million at 4.0x revenue were well above the median of 2.6x for the year. The deal with Qumu allowed Rimage to enable its customers to share information using mobile devices, apart from its core physical products such as CDs and DVDs. On the other hand, the deal with Accordent enabled Polycom to better integrate the target’s products with Microsoft’s suites and also with Polycom’s own unified communications offering. In 2012, the median EBITDA multiple of 7.8x is based on just one deal, the acquisition of Maple Lake Limited, a Canadian provider of planning and allocation solutions for retailers by TXT e-solutions. In 2010, Adobe Systems acquired Day Software Holding at 4.3x revenue multiple, a premium compared to the 3.5x average multiple. This multiple reflects the complementary portfolio of enterprise offerings including web content management, digital asset management and social collaboration tools, which Adobe added as part of the deal. Although financing deals in the enterprise collaboration software market have been steady over the past four quarters, the IPO of Jive Software and the acquisition of Yammer are likely the beginning of more deals of scale as the sector continues to mature. However, we suspect that M&A activity in this space will continue to be characterized by lots of smaller deals as consolidation activity is led by larger players, who add features and functions taken from smaller point players. In addition, we expect some segments to experience further shakeout since many niche areas have numerous small start-ups and as the market evolves, some of these players simply will not be able to achieve sufficient growth and will be forced to seek whatever exit they can find.

ACTIVE SUBSECTORS: One area that has had a surprising amount of activity is video conferencing and video- specific technologies. While the adoption of standard video conferencing may still face some headwinds, the incorporation of video into broader collaboration solutions is clearly underway. Further, with the proliferation of mobile devices such as smartphones and tablets, we believe the next stage of enterprise collaboration will involve even closer personal interaction through different modes such as video.

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Date Acquirer Target Trans. Val Major Business Focus [Target/Issuer] Video conferencing products and testing tools for real-time 06/05/12 Avaya Radvision 218.9 voice and video over IP 11/05/12 Jive Software Bitplay - Browser-based chat and video communication platform Video-centric communication solutions for collaborative 12/31/12 MSouth Equity Technical Innovation - conference rooms 12/17/12 Nimans Videonations - Video conferencing, audio visual and IP telephony integrator 02/08/12 OVGuide.com Live Matrix - Provides live online video and audio webcasts The Newton Providea High-definition video conferencing, professional services 10/22/12 - Group Conferencing and audiovisual solutions 12/04/12 Yahoo! OnTheAir - Allows video chats, video conferencing and interviews

Source: Capital IQ (in $ millions)

From the table above, we can infer that video conferencing technologies provide a compelling opportunity to providers such as Jive and Yahoo! to enhance their current offerings and fill technology gaps in their portfolio. Most of the deal values inthis space remain undisclosed, but the largest acquisition was of Radvision by Avaya for $218.9 million. The deal enabled Avaya to add enterprise video products to its unified communications platform, and offer cost-effective video solutions aimed at enterprises and small & medium businesses. The deal also enabled Avaya to provide integrated HD video collaboration products, including the ability to plug-and-play on mobile devices such as iOS and Android, which should support the larger enterprise IT trend towards Bring-Your-Own-Device (BYOD). Citrix recently included instant messaging (IM) in its Podio enterprise collaboration software, which it acquired in 2012 to allow employees within an enterprise to engage in individual or group chats, without switching to alternative services for chatting. Since the chat can be archived for future reference, it provides a robust enterprise collaboration tool. After adding IM capabilities, Citrix plans to incorporate individual as well as group video chat functionality to Podio. Further, Jive’s acquisition of Meetings.io (and its company, Bitplay) could enable it to enhance its collaboration software by offering video chat in the future. With the enterprise collaboration players seeking to integrate video chatting or conferencing capabilities into their collaboration and project management software, and transition towards a unified communications platform, we believe video & conferencing tools will continue to garner a lot of interest in the M&A space. Other major areas where enterprise collaboration M&A was focused were online task management and online document management. Enterprises are slowly beginning to comprehend the benefits of collaboration, including efficient utilization of resources through better employee productivity and communication. The enterprise collaboration software market is currently in the early adoption phase and in our view, it will witness meteoric growth once its adoption gathers steam. We note that the market is still largely fragmented, with the top five players accounting for approximately 40% of the market share in 2011 (as per IDC). With numerous small players in the enterprise collaboration space vying for a substantial pie of the market, we believe competition will become intense. Considering the high stakes, we expect smaller players to be taken over by larger software providers, who may seek to fill the missing pieces in their technology armory and launch an offensive against other collaboration vendors. Moreover, in line with the empirical evidence that we have, the small enterprise collaboration software vendors may seek suitors as they search for alternative financing sources to support their growth and development efforts.

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Global M&A Deals - Enterprise Collaboration (2010-12) Trans. Revenue EBITDA Closed Target/Issuer Buyers/Investors EV Major Business Focus [Target/Issuer] Value Multiple Multiple Desktop and Web solutions for managing and sharing research 04/08/2013 Mendeley Limited Elsevier B.V. - - - - papers, discovering research data, and collaborating online 03/01/2013 SlideRocket, Inc. ClearSlide, Inc. - - - - Online presentation software solutions 03/01/2013 SlideRocket Vmware - - - - Online presentation software solutions 02/22/2013 Sazneo Limited Access UK Limited - - - - Browser based real-time group messaging/collaboration services 02/06/2013 4Projects Ltd. Viewpoint Construction Software, Inc. - - - - Software as a service collaboration solution 02/01/2013 Instantis, Inc. Oracle Corporation - - - - Enterprise project portfolio management solutions Video-centric communication solutions for collaborative 12/31/2012 Technical Innovation, LLC MSouth Equity Partners - - - - conference rooms Provides remotely managed email, collaboration, and unified 12/18/2012 Azaleos Corporation Avanade, Inc. - - - - communications services 12/17/2012 Videonations Ltd. Nimans Ltd - - - - Video conferencing, audio visual and IP telephony integrator Social media sites and online community management & training 12/11/2012 Capable Networks, LLC Magenium Solutions LLC - - - - solutions 12/04/2012 OnTheAir Yahoo! - - - - Video chats, video conferencing and interviews Microsoft SharePoint-based, Software as a Service-based 11/18/2012 EPM Live, LLC PowerSteering Software, Inc. - - - - enterprise project, portfolio, and work management solutions 11/05/2012 Producteev Jive Software - - - - Online task management applications 11/05/2012 Bitplay, Inc. Jive Software - - - - Browser-based chat and video communication platform High-definition video conferencing, professional services and 10/22/2012 Providea Conferencing, LLC The Newton Group, Inc. - - - - audiovisual solutions Web content management (WCM), digital asset management and 10/04/2012 Day Software Holding AG Adobe Systems Benelux BV 206.83 181.1 4.3x 25.8x social collaboration solutions and services 10/04/2012 Qontext Inc. Autodesk, Inc 26.0 26.0 - - Enterprise social collaboration software platform solutions 09/28/2012 Maple Lake Limited TXT e-solutions S.p.A. 17.28 17.3 2.0x 7.8x Planning and assortment solutions for the retail industry 09/24/2012 Copiun Inc. Good Technology, Inc. - - - - User data management software solutions 09/11/2012 Workshare Technology, Inc. SkyDox Ltd - - - - Document collaboration software Private social networks for internal employees and external 08/30/2012 Firestring (Pty) Ltd Britehouse Group Ltd. - - - - stakeholders Colt Technology Services Group Infrastructure and control panel platform for IT solution providers 08/13/2012 ThinkGrid Limited - - - - Limited to offer cloud services worldwide Online community collaboration tools for non-profit and 08/07/2012 GoLightly, Inc. Advanced Solutions - - - - association customers 07/20/2012 Sparrow SAS Google - - - - Mail application for Mac and iPhone 07/19/2012 Sermo, Inc. WorldOne, Inc. - - - - Online community for physicians 07/01/2012 Northridge Systems, Inc. Perficient Inc. 14.4 14.4 1.2x - Collaboration business consulting services 06/15/2012 Yammer Microsoft $1,200 1,200.0 - - Enterprise social networking portals Video conferencing products and testing tools for real-time voice 06/05/2012 Radvision Ltd. Avaya Inc. 218.93 163.8 2.1x - and video over IP 06/05/2012 Quickoffice Google - - - - Office software solutions for mobile phones/smartphones 06/04/2012 Meebo Google - - - - Web-based instant messaging service company 05/21/2012 Syncplicity, Inc. EMC Corporation - - - - Cloud-based file management and storage solutions 05/01/2012 Socialtext, Inc. Peoplefluent, Inc. - - - - Enterprise social software solutions 05/01/2012 Stypi salesforce.com, inc - - - - Real-time collaboration platform 04/11/2012 blueKiwi Software SA Atos S.A. 26.22 26.2 4.0x - Enterprise social software solutions 04/11/2012 Podio ApS Citrix - 43.6 - - Online collaborative work platform 04/11/2012 Quolos Limited Yammer - - - - Peer-to-peer desktop application software 04/05/2012 Automation Technology, Inc. Intertek Group plc 16.0 16.0 - - Web-based collaborative asset management software 03/29/2012 HootSuite Media, Inc. OMERS Ventures 20.0 - - - Web-based social media management solutions Planning tool for large public companies, startups, and open 03/19/2012 Pivotal Labs, Inc. EMC Corporation - - - - source development teams to bring collaboration in software development teams Microsoft Dynamics AX, Microsoft Dynamics GP, Microsoft 03/01/2012 First Tech Direct, LLC Columbus A/S - - - - Dynamics SL, Microsoft Dynamics customer relationship management (CRM), and product lifecycle management solutions 02/27/2012 Cove Inc. Dropbox, Inc. - - - - Online collaboration solutions 02/08/2012 Live Matrix, Inc. OVGuide.com, Inc. - - - - Live online video and audio Webcasts 02/06/2012 Landslide Technologies, Inc. j2 Global, Inc. - - - - Customer relationship management (CRM) solutions Telephone hotline, Web-based reporting, and case management 01/31/2012 EthicsPoint, Inc. NAVEX Global, Inc. - - - - solutions 01/27/2012 Inkubook, Inc. SnapOne, Inc. - - - - Online and Web-based book creation service

12/06/2011 Pringo, Inc. MobileBits Holdings Corp. 30.04 30.0 - - Enterprise-class online portals and social collaboration tools

12/02/2011 Nefsis Corporation Brother Industries, Ltd. - - - - Multipoint HD video conferencing and collaboration tools On premises enterprise and software as a service based document 11/14/2011 CTSpace ltd IDOX plc 18.34 18.3 0.9x 6.8x management and collaboration workflow applications 10/14/2011 ViVu, Inc. Polycom - - - - Participative event platforms 10/10/2011 Qumu, Inc. Rimage Corporation 52.83 52.8 4.0x - Enterprise video solutions 09/30/2011 ilinc Communications, Inc. BroadSoft, Inc. 10.8 10.8 - - SaaS based Web and video collaboration tools 09/20/2011 Assistly, Inc. salesforce.com, inc 55.0 - - - Multi-channel support platform 09/19/2011 Collaborative Fusion, Inc. Intermedix EMSystems, LLC - - - - Web-based emergency management solutions 08/26/2011 TaskDock Cisco - - - - Software to share Microsoft Office documents 08/10/2011 RingCube Citrix $33 32.2 - - Managed virtual workspace Unified communications and enterprise hosted VoIP 08/05/2011 Alteva, LLC USA Datanet 16.92 16.8 2.6x 29.5x communication solutions 08/01/2011 Instructables Autodesk $30 30.2 - - Web-based documentation platform 07/31/2011 SambaStream Limited Alfresco Software - - - - Collaborative cloud-based Web applications 07/26/2011 FatWire Corporation Oracle Corporation - - - - Web experience management solutions 07/19/2011 Code Mine Autodesk - - - - Online cloud-based image tools and utilities www.redcapgroup.com Page I 12 Enterprise Collaboration & Social Software

07/03/2011 Cloud Sherpas Cloud Sherpas, Inc. - - - - Web-based collaboration tools for business transformation 06/28/2011 Palantiri Systems, Inc. ThingWorx, Inc. - - - - M2M cloud platform 06/14/2011 Social Blaze MartinJAY Digital, Inc. - - - - Enterprise grade social media management applications Multi-channel portal, analytics and monitoring, business processes and rules, dynamic content management, social media 06/02/2011 Interactive Softworks, Inc. USAN, Inc. - - - - and collaboration, visual process modeling, voice/ACD unification, and integration components and services 06/01/2011 HP- Certain Assets Polycom $89 - - - Video conferencing business 05/31/2011 Event Robot Vmware - - - - Develops enterprise social software for organizations globally 05/18/2011 Offisync Corp. Jive Software, Inc. 26.79 26.8 - - Web based collaboration applications 03/21/2011 Accordent Polycom $50 50.0 5.6x - Enterprise video management solutions 03/17/2011 Jambok, Inc. SuccessFactors, Inc. 9.76 9.8 - - Social learning platform 03/03/2011 PresentAll Inc. Andiamo Corporation - - - - Web conferencing software solutions 02/15/2011 Netviewer AG Citrix Online, Inc. - - - - Web conferencing solutions Online collaborate services in a workspace and fuse 02/15/2011 Goat Town Ventures, LLC Constant Contact, Inc. 17.4 17.0 - - communications, content and applications. Customer and collaboration relationship management (CRM) 01/31/2011 Kabushiki Kaisha salesforce.com salesforce.com, inc 170.9 633.0 - - services 01/12/2011 eBook Google - - - - Electronic book systems Hosted wiki software, Web design, development, and application 01/07/2011 EditMe, LLC Wakefly, Inc. - - - - building services 01/06/2011 Dimdim, Inc. salesforce.com, inc 37.13 37.1 - - Web conferencing solutions Collaborative desktop workflow and integrated third party 01/05/2011 Pharos Communications Limited Evertz Technologies Ltd. 5.01 5.0 0.6x - infrastructure management software solutions 01/05/2011 Zosh and Attassa YouSendIt, Inc. - - - - Application software for e-signature services 01/03/2011 Konftel AB Avaya Inc. 14.0 14.0 - - Audio conferencing solutions KineticGlue Online Communities 12/09/2010 Injoos Web Solutions Pvt. Ltd. - - - - Web based collaboration applications Pvt. Ltd. 12/03/2010 Phonetic Arts Google - - - - Voice techonologies 11/01/2010 Softalk Ltd. Gordano Ltd. - - - - Collaboration and messaging software solutions 10/19/2010 Codesion Inc. CollabNet, Inc. - - - - Cloud-based source code management solutions Enterprise marketing management and cloud-based marketing 10/05/2010 Unica Corporation International Business Machines 489.91 446.8 4.1x 44.3x software solutions Hosted code collaboration services for mercurial distributed 09/27/2010 Bitbucket Atlassian Pty Ltd. - - - - version control systems 09/21/2010 TimeBridge, Inc. MerchantCircle, Inc. - - - - Personal scheduling assistant solutions Integrated and automated conference management software 08/31/2010 M-Events Conference Systems LLC Ovation Technology LLC - - - - solutions 08/25/2010 Webcasting.com, Inc. Granicus, Inc. - - - - Live and on-demand streaming services through internet 08/05/2010 Wimba, Inc. Blackboard Inc. 58.6 56.5 - - Collaborative learning software applications and services 08/04/2010 Elluminate, Inc. Blackboard Inc. 61.99 54.6 2.2x - Live eLearning and Web collaboration solutions 07/20/2010 CubeTree, Inc. SuccessFactors, Inc. 48.9 48.9 - - SaaS based hosted enterprise collaboration suite 05/06/2010 Scout Labs, Inc. Lithium Technologies, Inc. 25.0 25.0 - - Web-based applications for social media tracking and monitoring 04/12/2010 Viju Viju AS - - - - Video communications solutions 03/05/2010 DocVerse, Inc. Google Inc. - - - - Solutions for real time sharing and simultaneous group-editing 03/01/2010 CoTweet, Inc. ExactTarget, Inc. 15.71 15.7 - - Web-based social media management solution Open source email, address book, calendar, tasks, and 02/16/2010 Zimbra, Inc. Vmware 100.0 100.0 - - collaboration software Collaborative knowledge management, portal and collaboration, 02/09/2010 MicroLink, LLC Autonomy Corp. plc 55.0 55.0 - - business intelligence, information discovery, and customer relationship management solutions 01/20/2010 Doc.It Inc. Roynat Capital, Inc. - - - Practice-wide document management and archiving solutions 01/20/2010 Tomoye Corporation NewsGator Technologies, Inc. - - - - Community collaboration software solutions Content management system; and member management 01/06/2010 Live Elements, Inc. Technology Solution Partners, Inc. - - - - application 12/31/2009 SEFAS Innovation SA Doc@Post SAS - - - - Customer communication software solutions 12/31/2009 ClackPoint Collaboration Spaces Voxeo Corporation - - - - Multi-channel collaboration platform 12/31/2009 WebsiteWiki Wikia, Inc. - - - - Online resource community Source: Capital IQ (in $ millions)

www.redcapgroup.com Page I 13 Enterprise Collaboration & Social Software

Private Financing Private Financings Overview —2010 to 2012 Year # of Deals % of Total Total Capital Raised ($ million) % of Total Avg. Deal Size 2012 54 54% $ 853 71% $ 16 2011 27 27% 136 11% 5 2010 19 19% 209 17% 11 Total 100 100% 1,199 100% Source: Capital IQ (in $ millions)

Private Financings in Enterprise Collaboration Market $ mn 900 60

750 50

600 40 450 30 Number of Deals Total Capital Capital Total Raised 300

20 150

0 10 2010 2011 2012

Total Capital Raised Number of Deals Source: Capital IQ

Venture and private equity investing in the enterprise collaboration and social software sector continues to remain robust, with a substantial increase in investment during 2012. The number of investments in the space has steadily grown doubling to 54 investments in 2012, up from 27 deals in 2011. In addition, total private capital flows rose more than six-fold from 2011 to $853 million and the average deal size more than tripled y/y to $16 million. Even after excluding the two largest deals which had a combined value of $250 million, the y/y rise in capital flows was substantial, reflecting the genuine nature of the growth. The average deal size after excluding the largest and smallest deals was $13 million in 2012, which was more than double of that in 2011. This increase is likely due to increased confidence by investors as well as companies raising larger, later-stage rounds as their businesses mature. We expect this trend to continue in 2013 with more companies seeking larger growth and expansion financings. While reviewing the institutional investors active in this space, we find that many of the venture firms, who are active in enterprise software and SaaS space, are investing here. Charles River, Openview, Norwest, Bessemer, Insight, Mayfield and many other branded firms are active. While much of the activity so far has been in early venture-oriented rounds, we do expect opportunities for larger growth equity players to become active as the emerging players grow their business models to a stage that attracts capital for expansion and growth. Our analysis also shows that the investment in the enterprise collaboration and software market is highly correlated to the economic activity and sentiment in the US. This is important as the US accounts for the major chunk of the private financing transactions in this sector, with more than 80% of all the deals identified over the last three years happening in the US. Although the global economic growth declined in 2012 to 2.2% y/y from 2.9% y/y in 2011, the year 2012 was by far the best for private capital flows into the sector. The primary reason for this trend was the improved investment sentiment in the US, buoyed by the signs of economic recovery. In addition, strong response to Jive’s IPO at the end of 2011, may have boosted investor sentiment. Jive’s share price mostly traded above its IPO price through the year. The private financing trend in the sector is expected to remain strong. Trends such as consumerization of IT, emergence of cloud computing technology and the increasing use of portable devices such as mobile, laptops, tablets, etc. by the workforce, are causing to enterprises to revisit their information and data management systems. Moreover, enterprise social software products help to foster information sharing and collaboration in ways that could lead to higher employee productivity. We believe the potential of these products will be realized soon and enterprise social software will become an integral part of organizations’ IT strategies. Moreover, given the highly fragmented nature of the sector and the potential synergies expected from convergence between the players, the sector is poised to see consolidation, which offers immense opportunity for private capital flows into the sector. www.redcapgroup.com Page I 14 Enterprise Collaboration & Social Software

Global Enterprise Collaboration Private Financings (2010-12)

Announced Target/Issuer Amount Total Raised To Date Buyers/Investors Major Business Focus [Target/Issue] OVP Venture Partners; Pelion Venture Partners; Interface software solutions for collaboration, field data 03/27/2013 Adapx, Inc. $3.5 $9.5 Paladin Capital Group; Northwest Technology collection, and decision making Ventures Charles River Ventures; The Social+Capital 03/12/2013 Crushpath LLC $6.0 $8.0 Enterprise Solutions Partnership Web content and document management software, 02/28/2013 Ektron, Inc. $2.0 $2.0 Eastward Capital Partners, LLC social software, and marketing optimization solutions Austin Ventures; Valhalla Partners; First Round 02/22/2013 Handshakez, Inc. $3.6 $3.6 Collaboration and analytics platform Capital; FLOODGATE; Thinktiv, Inc.; CrunchFund Web-based collaborative software development 02/12/2013 CollabNet, Inc. $2.5 $2.5 - solutions 01/28/2013 Zoom Video Communications, Inc. $6.0 $6.0 QUALCOMM Ventures Cloud-based video meeting and conferencing services Business applications platformfor collaboration, 01/25/2013 Zulahoo, Inc. $3.0 $3.0 - organization, production, and communication 12/27/2012 ConnectSolutions Inc. $10.0 $10.0 Frontier Capital LLC Cloud-based unified communications solutions 12/10/2012 PBwiki, Inc. $3.9 $3.9 - Hosted team collaboration solutions Partech International; Sippl MacDonald Ventures; Western Technology Investment; Cloud computing solutionsfor business process 12/07/2012 Intalio, Inc. $21.2 $33.2 Woodside Fund; SAP Ventures; XML Fund; management VMware; Dassault Développement; O'Reilly Media; Cargill Ventures; Inventures Group Unified communications (UC) as a service and mobile 12/05/2012 Thrupoint, Inc. $3.0 $6.4 - collaboration solutions Insight Venture Partners; Madrona Venture Cloud applications for project management and 11/21/2012 Smartsheet.com, Inc. $26.0 $28.5 Group collaboration 11/19/2012 Atmail Pty Ltd. $2.1 $2.1 Starfish Ventures Pty Ltd Email and collaboration solutions Bessemer Venture Partners; Institutional 11/16/2012 Wikia, Inc. $10.9 $10.9 Venture Partners; Amazon.com Inc., Investment Hosting services for sharing information Arm Mobile, cloud-based, and geosocial applications for 11/12/2012 DoubleDutch, Inc. $4.0 $7.2 FLOODGATE; Lightbank LLC; Bullpen Capital events, sales teams, and other enterprise workgroups Birchmere Ventures; salesforce.com, inc ; 10/25/2012 Hireku Inc. $2.1 $2.9 Innovation Works; Rincon Venture Partners; ff Recruiting software Venture Capital Application development platform for connecting 09/26/2012 ThingWorx, Inc. $8.0 $13.0 Safeguard Scientifics, Inc. (NYSE:SFE) people, systems, and devices Advanced Technology Ventures; Bessemer 09/26/2012 Thinking Phone Networks, LLC $16.9 $23.5 Cloud-based unified communications services Venture Partners Scottish Equity Partners LLP; Business Growth Integrated file sharing and secure collaboration 09/11/2012 SkyDox Ltd $32.2 $32.2 Fund plc platform 08/30/2012 MetraTech Corp. $30.7 $30.7 - Agreements-based billing and compensation solutions Digital communication and collaboration platform for 08/02/2012 Lua Technologies, Inc. $3.0 $5.5 - mobile workforces Connecticut Innovations, Inc.; Cava Capital; 07/26/2012 etouches LLC $7.8 $10.3 Event planning software Greycroft Partners LLC; Level Equity Partners Bessemer Venture Partners; Draper Fisher Jurvetson; General Atlantic LLC; New Enterprise 07/25/2012 Box, Inc. $150.0 $308.2 Content sharing platform Associates; SAP Ventures; Scale Venture Partners; The Social+Capital Partnership Benchmark Capital; The Founders Fund; 07/18/2012 Asana, Inc. $28.0 $28.0 Collaboration software tools Andreessen Horowitz Wesley Clover Corporation; Wesley Clover 07/17/2012 Magor Corporation (TSXV:MCC) $3.1 $4.0 Visual collaboration solutions International Corporation Social community for filmmakers, actors, comedians, 07/12/2012 Poptent, Inc. $5.5 $8.8 MK Capital grips, and animators 07/11/2012 LiveHive, Inc. $4.7 $4.7 Acero Capital Cloud-based visual and interactive personal workspace 07/03/2012 GitHub Inc. $100.0 $100.0 Andreessen Horowitz; SV Angel Code hosting services Mobile cloud services for file sharing and collaboration 06/28/2012 SugarSync, Inc. $10.0 $27.0 ORIX Venture Finance, LLC tools Accel Management Co, Inc.; New Enterprise 06/27/2012 Blue Jeans Network, Inc. $25.0 $43.0 Cloud-based video conferencing services Associates; Norwest Venture Partners Kleiner, Perkins, Caufield & Byers; Polaris 06/27/2012 Egnyte, Inc. $16.0 $26.0 Cloud file server solutions Partners; Google Ventures Insight Venture Partners; Index Ventures; Internet and mobile based unified communications 06/26/2012 FuzeBox, Inc. $20.0 $20.3 Khosla Ventures solutions IDG Ventures; Foundry Group; Google Ventures; Team collaboration, email tracking, custom templates, 06/20/2012 Yesware, Inc. $4.0 $5.0 Golden Venture Partners, Inc. CRM syncing, and reports and analytic solutions Beechtree Capital, LLC; Granite Ventures, 06/13/2012 GoingOn Networks, Inc. $2.8 $9.2 LLC; Armada Investment Group AG; California Academic social networking platform Technology Ventures, LLC; Adurion KG Benchmark Capital; Carmel Ventures; Opus 06/05/2012 Clarizen, Inc. $12.0 $24.0 Capital; DAG Ventures, LLC; Vintage Capital Online project management software Management, LLC Online platform with tools to visualize, plan, and 05/31/2012 Rundavoo, Inc. $2.0 $2.0 - collaborate on group or social activities, events, or parties Matrix Partners; Eden Ventures (UK) Ltd.; JAFCO Online collaboration, live conferencing, project 05/24/2012 Ninian Solutions Ltd. $24.0 $34.2 Ventures; DAG Ventures, LLC management software, and document sharing solutions 05/22/2012 DotLoop, LLC $7.1 $7.2 Trinity Ventures Online collaborative solutions 05/18/2012 CitizenGlobal Inc. $2.3 $9.3 - Collaborative online studio for mainstream media New World Ventures; MK Capital; Cross Creek 05/18/2012 Kontiki, Inc. $6.0 $27.2 SaaS provider of enterprise video communications Capital; Hatteras Funds www.redcapgroup.com Page I 15 Enterprise Collaboration & Social Software

05/11/2012 Batterii, LLC $2.5 $2.5 CincyTechUSA, Investment Arm Real-time ollaborative platform 05/09/2012 Vidyo, Inc. $2.0 $39.7 - Telepresence solutions for video conferencing 05/04/2012 HootSuite Media, Inc. $50.0 $54.9 - Web-based social media management solutions BDC Venture Capital; Walsingham Growth Requirements management solutions for enterprise 05/02/2012 Blueprint Software Systems Inc. $15.9 $30.2 Partners; Tandem application development 05/01/2012 Courseload, Inc. $6.0 $8.9 - Web-based universal-access software solution Web applications and development tools for cloud- 05/01/2012 DreamFactory Software, Inc. $3.0 $3.5 New Enterprise Associates based platforms Index Ventures; OCA Venture Partners, LLC; The 04/30/2012 Future Simple Inc. $6.9 $8.0 CRM and sales tracking application for small businesses Social+Capital Partnership; I2A Fund 04/30/2012 VisiQuate, Inc. $4.5 $5.2 - Web-based content management solutions Mission Ventures; Windward Ventures; Valhalla 04/19/2012 Nirvanix Inc. $35.2 $45.7 Enterprise-class cloud storage services Partners; Intel Capital; Khosla Ventures OVP Venture Partners; Longworth Venture 04/18/2012 Symform, Inc. $11.0 $14.0 Partners; West River Capital; Second Century Cloud storage solutions Ventures, LLC Draper Fisher Jurvetson; New Enterprise Open source customer relationship management (CRM) 04/04/2012 SugarCRM, Inc. $33.0 $33.0 Associates; SVB Capital; Walden International; software Gold Hill Capital Management, LLC Internet-based document repositories and case 03/29/2012 Catalyst Repository Systems, Inc. $32.0 $30.6 FTV Capital collaboration systems Cloud-hosted messaging service for building real-time 03/20/2012 PubNub, Inc. $4.5 $4.5 Relay Ventures; TiE Angels Web and mobile applications Hosted Microsoft Communication, SaaS business 02/16/2012 GlobalOutlook, Inc. $2.0 $2.0 Naya Ventures communication, and collaboration services Anthem Venture Partners; Propulsion Ventures Mobile content management and tracking software 02/15/2012 FileTrek Software Inc. $10.0 $22.7 Inc.; The Ontario Capital Growth Corporation solutions 02/13/2012 Xobni Corporation $10.0 $10.0 - Enterprise collaboration solutions RBC Venture Partners; The Ontario Capital 01/26/2012 IGLOO, Inc. $5.0 $5.0 Social business software solutions Growth Corporation 01/20/2012 Lingotek, Inc. $2.4 $3.9 - Collaborative translation technology solutions 01/18/2012 SmartRecruiters Inc. $5.5 $5.5 Mayfield Fund SaaS-based recruiting software Online collaboration platform for digital artists and 01/09/2012 Wemo Media Inc. $2.0 $2.0 - developers Bessemer Venture Partners; Felicis Ventures; Online collaboration and social learning network 01/06/2012 Piazza Technologies, Inc. $6.0 $7.5 Kapor Capital platform Cloud-based social CRM and brand surveillance 12/23/2011 Artesian Solutions Limited $3.2 $3.2 Octopus Ventures Ltd. software solutions 12/23/2011 KnowledgeVision Systems Incorporated $2.0 $6.4 GrandBanks Capital Inc. Online presentation tools Secure collaboration and managed file transfer 12/19/2011 Accellion, Inc. $12.2 $12.2 Riverwood Capital solutions 12/02/2011 doo GmbH $6.8 $6.8 DuMont Venture Holding GmbH & Co. KG Cloud-based collaboration service 12/01/2011 Certain Software, Inc. $9.8 $9.8 - Event management software solutions 10/31/2011 Trunity Holdings, Inc. (OTCBB:TNTY) $3.0 $7.0 GreenHills Ventures LLC, Investment Arm Hosted social publishing platform Online board portal providing a free SaSS-based solution to manage real-time access to corporate 10/26/2011 BoardSuite Corp. $4.1 $4.1 Urban Select Capital Corporation documents, collaboration tools, and a marketplace of business services Web software for mobile fundraising, CRM, and donor 09/20/2011 MobileCause Inc. $3.2 $3.2 - communication Quest Software Inc.; Madden Capital Partners, 09/15/2011 Mavenlink, LLC $3.9 $3.9 Web-based project management solution LLC Union Square Ventures; Version One Ventures; 09/12/2011 WP Technology Inc. $3.5 $3.5 Online social community Golden Venture GmbH Web-based idea management application and 08/18/2011 Kindling Inc. $2.4 $2.4 Milestone Venture Partners collaboration tool 08/15/2011 Cinchcast Inc. $6.0 $8.0 Guggenheim Partners, LLC cloud-based collaboration platform Tribeca Venture Partners; Mr. Youth LLC; Online platform for real-time research, collaboration or 07/26/2011 Crowdtap LLC $7.0 $7.0 Foundry Group word-of-mouth marketing Morgan Stanley Alternative Investment Partners Spatial interfaces to control applications and data 07/05/2011 Oblong Industries, Inc. $21.0 $21.0 LP; Foundry Group; Energy Technology Ventures spread across various displays 06/30/2011 Central Desktop Inc. $3.0 $3.0 Hercules Technology Growth Capital, Inc. Social collaboration platform Osage Partners LLC; Kaplan Ventures; Originate SaaS-based social learning and business collaboration 06/15/2011 ProtonMedia, Inc. $4.5 $4.5 Ventures software solutions 05/18/2011 Speechbobble Inc. $2.9 $4.4 - Cloud social networking platform 05/12/2011 Vidtel, Inc. $4.6 $4.6 - Cloud-based video conferencing services 04/30/2011 Surfingbird.ru $2.9 $2.9 - Collaborative content discovery service 04/26/2011 Brightleaf Corporation $3.0 $5.9 Foundry Group Document automation solutions 03/31/2011 InXpo, Inc. $3.5 $3.5 Hercules Technology Growth Capital, Inc. Webcasting platform 03/11/2011 Collaborative Software Initiative Inc. $3.7 $3.7 OVP Venture Partners; Oregon Angel Fund Enterprise software products Enterprise video conferencing and collaboration 02/25/2011 inSORS Integrated Communications, Inc. $4.5 $4.5 - software and solutions 02/16/2011 Sermo, Inc. $3.5 $3.5 MMV Financial Inc, Investment Arm Online community for physicians 02/10/2011 Podio ApS $4.0 $4.0 Sunstone Capital A/S Online collaborative work platform Cloud computing solutions for collaborative 02/02/2011 nGenx Corporation $5.2 $5.2 - communication Index Ventures; True Ventures; Social Leverage, 01/04/2011 Assistly, Inc. $3.0 $5.2 Multi-channel support platform LLC; Bullpen Capital Dematerialization, electronic document management 11/11/2010 Primobox SAS $3.4 $3.4 Grant & Partners; Counsellior SA and software as a service (SaaS) mode collaborative services 10/14/2010 HBR Labs, LLC. $2.0 $2.0 - Web collaboration and meeting solutions 09/30/2010 Collaborative Learning Inc. $6.3 $5.9 - Productivity software solutions Altos Ventures; New Atlantic Ventures; QED 09/28/2010 Koofers, Inc. $5.0 $5.0 Online social learning Investors LLC; Revolution Ventures www.redcapgroup.com Page I 16 Enterprise Collaboration & Social Software

Advanced Technology Ventures; Garage Technology Ventures; SAP Ventures; The Angels' 09/20/2010 Qumu, Inc. $8.8 $8.8 Enterprise video solutions Forum LLC; Storm Ventures LLC; The Halo Funds; MMV Financial Inc, Investment Arm 09/15/2010 COPIA Interactive, LLC $20.0 $20.0 DMC Capital Funding, LLC Social media and content delivery platform Kleiner, Perkins, Caufield & Byers; Sequoia 07/20/2010 Jive Software, Inc. (NasdaqGS:JIVE) $30.0 $30.0 Social business software platform Capital Issue tracking, collaboration, and software development 07/14/2010 Atlassian Pty Ltd. $60.0 $60.0 Accel Management Co, Inc. tools Swift River Investment LLC; Egis Capital Partners Inter-enterprise collaboration in the alternative asset 07/12/2010 iLevel Solutions, LLC $6.0 $6.0 LLC; Epiphany Ventures management industry Live and on-demand streaming audio and video 06/10/2010 Octoshape ApS $4.8 $4.8 Nexit Ventures Oy technology Software platforms for unifying and controlling 05/28/2010 Covia Labs Incorporated $5.2 $5.2 - interoperable communications Adams Capital Management, Inc.; HPI Real On-demand sales collaboration and business 05/18/2010 ProspX, Inc. $8.0 $8.0 Estate Services & Investments intelligence solution 03/30/2010 Event Robot, Inc. $8.0 $8.0 Menlo Ventures; True Ventures Enterprise social software Iroquois Capital; Highbridge Capital Management; North Sound Capital; Coghill 03/29/2010 Glowpoint, Inc. (AMEX:GLOW) $10.0 $9.8 Cloud and managed visual communication solutions Capital Management; Vicis Capital; Escalate Capital Partners; Eos Funds Novus Ventures; Rocket Ventures; The 02/17/2010 eXpresso Corp. $3.8 $3.8 Real-time collaboration and editing control solutions Individuals' Venture Fund Cloud-based unified communications Software-as-a- 02/16/2010 PanTerra Networks, Inc. $4.0 $4.0 - Service solutions Adams Capital Management, Inc.; Osage 01/27/2010 Landslide Technologies, Inc. $8.0 $8.0 Customer relationship management (CRM) solutions Partners LLC; Draper Triangle, LLC 01/25/2010 Confer LLC $2.0 $2.0 - Communication, collaboration, and consolidation tools 01/22/2010 FatWire Corporation $13.5 $13.1 EMC Corporation Web experience management solutions Source: Capital IQ (in $ millions)

www.redcapgroup.com Page I 17 Enterprise Collaboration & Social Software

Valuation Trends In this valuation section, we look at the larger public players in several related and adjacent areas and consider the performance of their stocks over the past few years as well as their relative valuations. We have included three different universes: • Collaboration and Customer Engagement: Jive Software, J2 Global, ExactTarget, Constant Contact, Salesforce.com, LivePerson, Workday and LinkedIn • Unified Communications:Cisco, ShoreTel, Polycom, Broadsoft • Large Enterprise Software: Microsoft, Google, IBM, Adobe, Citrix Because the collaboration and social software spaces are still relatively new, there are few good public comparables – Jive is perhaps the only solid public pure-play for social and along with LinkedIn. On the collaboration side, players like J2 and Polycom are certainly good comparables. We have also included a number of other players like LivePerson (customer engagement) and email marketing companies such as ExactTarget and Constant Contact that we think help round out the universe and are benefiting from some of the same underlying growth trends. Our other two universes, Large Enterprise Software and Unified Communications are also worth understanding as many players in these areas may serve as acquirers and competitors for the smaller, private emerging growth players

PUBLIC VALUATION MULTIPLES The table below provides a summary of the trading multiples for the companies in our three indexes. Clearly, the companies in the Collaboration and Customer Engagement Segment trade at very rich multiples, due to their strong growth performance and high growth expectations in the future.

Multiples Snapshot

Company Name Price Mkt.Cap EV D/E EV/Revenue EV/EBITDA P/E LT EPS LTM 2013E LTM 2013E LTM 2013E Growth Collaboration and Customer Engagement

LinkedIn $ 175.59 $ 19,379 $ 18,549 - 16.7x 12.4x 124.1x 52.8x 493.9x 125.2x 54.6% salesforce.com 42.24 24,888 24,669 0.28 8.1x 8.1x 293.7x 47.6x n.a 111.3x 27.8% Workday 63.80 10,628 9,863 0.04 36.0x 36.5x n.a n.a n.a n.a 42.5% LivePerson 12.95 713 610 - 3.9x 3.3x 32.1x 18.8x 112.2x 39.8x 25.4% Constant Contact 14 442 345 - 1.3x 1.2x 18.1x 7.7x 36.8x 21.7x 28.9% ExactTarget 21.34 1,482 1,374 - 4.7x 3.7x 337.6x 187.9x n.a n.a 30.0% j2 Global 41.31 1,899 1,820 0.41 4.9x 3.6x 9.9x 8.2x 15.6x 14.9x 10.8% Jive Software 14.72 981 847 0.08 6.9x 5.6x n.a n.a n.a n.a 30.0%

Average 0.10 10.3x 9.3x 135.9x 53.8x 164.6x 62.6x 31.2% Median 0.02 5.9x 4.6x 78.1x 33.2x 74.5x 39.8x 29.4%

Unified Communications

Cisco Systems $ 20.83 $ 111,065 $ 80,990 0.29 1.7x 1.7x 6.1x 5.2x 11.9x 10.5x 9.3% ShoreTel 4.16 244 226 0.19 0.7x 0.7x n.a 13.3x n.a n.a 23.3% Polycom 10.73 1,851 1,168 - 0.8x 0.8x 10.5x 5.7x n.a 16.9x 12.5% BroadSoft 26.00 728 652 0.54 4.0x 3.5x 21.0x 14.5x 60.3x 21.1x 18.0%

Average 0.26 1.8x 1.7x 12.5x 9.7x 36.1x 16.1x 15.8%

Median 0.24 1.3x 1.2x 10.5x 9.5x 36.1x 16.9x 15.3%

Large Enterprise Software

Microsoft $ 33.49 $ 279,679 $ 220,656 0.19 2.9x 2.8x 7.2x 6.7x 17.0x 12.1x 9.0% Google 845.72 280,581 237,859 0.10 4.4x 4.0x 14.1x 11.0x 25.1x 18.3x 16.1% IBM 204.51 226,759 248,220 1.74 2.5x 2.4x 9.4x 8.9x 13.7x 12.2x 11.4% Adobe Systems 47.01 23,596 21,467 0.23 4.9x 5.2x 16.6x 18.3x 33.1x 32.4x 13.8% Citrix Systems 63.49 11,848 11,190 - 4.2x 3.8x 18.5x 12.0x 34.4x 20.6x 16.6%

Average 0.45 3.8x 3.6x 13.2x 11.4x 24.7x 19.1x 13.4% Median 0.19 4.2x 3.8x 14.1x 11.0x 25.1x 18.3x 13.8% Source: Capital IQ (in $ millions except for share price, as of 04/30/2013) www.redcapgroup.com Page I 18 Enterprise Collaboration & Social Software

While multiples vary greatly, and in many cases, EBTIDA multiples are not meaningful due to very low EBITDA for players like Jive, LivePerson or LinkedIn, we do think it is important for smaller players that aspire to sell to a larger strategic player to understand how different potential acquirers trade. In early stage tech M&A, valuation is often heavily weighed by what the acquirer thinks about its own stock and how it trades. While Microsoft did see its way to paying a very high multiple for Yammer, more often, we see larger strategic players with more normalized valuation multiples struggle to pay high multiples for start-ups. A player like Jive trading at 7x revenue can often justify paying 10x revenue for a start-up than someone like Polycom, which trades at less than 1x. As smaller deals get lost in the overall revenue stream of a large public player, the fear of dilution and an insufficient credit given by the market for its bold new acquisitions lead to suppressed offer prices for acquisitions. For smaller private players who are trying to grasp their “takeout value”, it is important to realize that the valuation must be determined on a case-to-case basis – based both on the strategic fit and potential benefit to that acquirer as well as on how that acquirer is itself valued in the market. As a result, we have undertaken a thorough review of each of the public players in our indices in the hope that this will provide some useful insights into how these public players may think about valuation.

COLLABORATION AND CUSTOMER ENGAGEMENT As indicated in the chart below, the companies in our Custom Enterprise Collaboration Index have comfortably outperformed the broader equity markets. During the 16 months till April 2013, the S&P 500 Index gained 27.0%, while the NASDAQ Composite Index returned 27.8%, benefiting from favorable macroeconomic events in the US, such as the avoidance of the fiscal cliff and positive economic indicators that ignited the hopes of an economic upturn. However, these were dwarfed by a return of 89.2% delivered by our Collaboration and Customer Engagement Index. In fact, with rising acceptance of the benefits of collaboration and social technologies, the extent of outperformance has increased with time, as indicated by the two areas highlighted in the chart.

Stock Performance: 220

200

180

160

140

120

100

80 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13

Nasdaq S&P500 MSCI World IT Collaboration and Customer Engagement

Source: Bloomberg (for the period between 01/01/2012 to 04/30/2013)

The most notable name in this universe is Jive Software that went public in 2011. In its December 2011 IPO, Jive garnered net proceeds of $132.3 million by selling 15.5 million shares, priced at $12/share. Both the number of shares offered and the price were higher than the original plan to offer 11.7 million shares at a range of $8-10. On its first day of trading on December 13, 2011, the stock closed 25% higher at $15.05, indicating strong investor appetite for pure-play social business software stocks. In the subsequent months until August, the stock traded mostly above the price achieved on the initial trading day. The stock touched a high of $27.52 on April 3, 2012, implying a return of close to 130% on its IPO price. However, since August 2012, the stock is hovering around the $15 mark and it even dipped below its IPO price of $12 on November 2, 2012, closing at $11.14. While Jive’s stock may have gone a little ahead of itself, and thus corrected accordingly, there are concerns of competition as well, since other emerging players continue to grow. Currently, Jive’s stock is trading at a revenue multiple of 6.6x 2013E and 5x 2014E. www.redcapgroup.com Page I 19 Enterprise Collaboration & Social Software

Jive Software performance since IPO, December 13, 2011 30 10

25 8

20 6 Price($)

15 4 Volume (mn)

10 2

5 0 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13

Volume (mn) Price ($)

Source: Bloomberg (for the period between 12/13/2011 to 04/30/2013)

The upbeat performance of our index was primarily led by the strong gains of index heavy- weights such as Salesforce.com (up 74.5%) and LinkedIn (up 231.3%), as investor confidence in these companies continued to improve. At LinkedIn, healthy growth in its subscriber base (from 32 million in 2009 to 200 million currently) underlined the company’s growth potential. On the other hand, Salesforce.com witnessed rising adoption of its products and achieved global leadership in the global Customer Relationship Management (CRM) software market in 2012. However, both stocks went through a rough patch during the May-July 2012 period. With Facebook’s IPO performing significantly below expectations, investors have generally become more cautious about social networking stocks, including LinkedIn. At Salesforce.com, the issues were more specific: the company witnessed two power outages in two weeks, which led to service disruptions and raised concerns about the stability of its systems. Notably, both stocks recovered quickly from these temporary setbacks and continued with their uptrend. Although, Constant Contact (down 35.1%) did manage to recover some of the losses after posting strong Q1 2013 results and provide an upgraded guidance, it was still an underperformer for the period, as investors stayed away from the stock after analysts had earlier downgraded the stock on lower-than-expected earnings performance. In 2012, two companies from the ECSS universe above successfully completed their IPOs – ExactTarget in March and Workday in October. Workday’s market capitalization has increased 30.9% since its IPO, on the back of its ongoing product innovation as well as stronger-than-expected financial performance. On the other hand, ExactTarget has fallen 16.9% since listing despite strong results. According to industry sources, investors were unsure whether email marketing (ExactTarget’s main source of revenue) would serve as a long-term source of strong top-line growth. Moreover, the stock also faced pressures after promoters sold significant number of shares in September at the end of their lock-in period.

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UNIFIED COMMUNICATIONS As evident from the chart below, except Broadsoft, all the unified communications stocks considered for our analysis underperformed the S&P 500 Index in 2012. The extent of underperformance is notable. The S&P 500 Index gained 13%, while Cisco, the networking giant, gained 9%. At the same time, Shoretel and Polycom posted negative returns of 34% and 36%, respectively. This underachievement continued in the subsequent months, with Shoretel’s performance worsening further.

Stock Performance: 160

140

120

100

80

60

40 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13

S&P500 Cisco Shoretel Polycom Broadsoft

Source: Bloomberg (for the period between 01/01/2012 to 04/30/2013)

Cisco ended 2012 with seven consecutive earnings beats, but the stock still underperformed the broader equity market, which highlights the fact that the market places higher emphasis on future outlook. Investors are more worried about the company’s future growth potential due to its declining core routing and switching revenues, andthe absence of any major move on the acquisition front. These factors coupled with Cisco’s struggling end-markets – primarily government and telecom – have weighed down on the stock’s performance. The stock has gained 6.5% during January-April 2013 on value buying, however, it is still lagging the broader index that gained 12%. Similarly, Shoretel and Polycom lagged the S&P 500 index in 2012, but in contrast to Cisco, both these stocks registered negative returns. Polycom’s disappointing performance reflects the severity of issues the company is facing, such as inconsistent growth and unstable management (four high-profile executives left the company last year). It is clearly evident from the chart that after the significant dip in Polycom’s share price in the first week of April 2012, the stock has not recovered. In fact, its underperformance has further worsened. On April 5, 2012, the stock fell 20% – the most during our coverage period – after the company issued weaker-than-expected Q1 2012 guidance. Similarly, Shoretel has been an underachiever since the beginning of 2012, and its performance has further deteriorated during the coverage period. The stock registered its highest decline of 19% on February 2, 2012, after it issued a weaker-than-expected guidance for Q3 2012, a day before. Broadsoft has been the most volatile among the stocks under consideration. Broadsoft’s inconsistent growth was the primary reason for the stock’s fluctuation and underperformance. The company has lagged street expectations on more than one occasion and that too by a wide margin. On May 7, 2012, the stock fell by 19%, after the company issued a Q2 2012 revenue and EPS guidance, which missed consensus by 5% and 29%, respectively. On another occasion, on February 28, 2013, the decline inthe share price was even steeper, when the company issued its 2013 guidance, with revenue falling 6% short of expectations and EPS missing consensus by 29%. However, things were not that gloomy for Broadsoft; the stock gained 34% in a single day on August 7, 2012, when the company raised its 2012 profit guidance above the consensus estimates and announced its acquisition of Adaption Technologies Ventures Ltd.

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LARGE ENTERPRISE SOFTWARE All the large enterprise software stocks in our index posted positive returns in 2012. However, 2012 would not be remembered as one of the best years for these stocks, as barring Adobe, none of them outperformed the broader equity markets. In 2012, the S&P 500 Index gained 13.4%, much higher than the returns posted by technology bellwethers such as Microsoft (2.9%), Google (9.5%) and IBM (4.2%). Although, Microsoft and Google witnessed significant surge in their share prices over the subsequent months, they were still mostly in line with the broader market, when compared on a cumulative basis from January 2012 to April 2013.

Stock Performance: 180.0

160.0

140.0

120.0

100.0

80.0 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13

S&P500 Microsoft Google IBM Adobe Citrix

Source: Bloomberg (for the period between 01/01/2012 to 04/30/2013)

The primary reason for this trend has been the lackluster capital spending by corporate enterprises and the telecom sector. The performance of technology companies is directly correlated with the IT spending by corporate enterprises and the telecom sector. We believe liquidity and financing are not the major problems for corporate enterprises, given the current regime of all time low interest rates across the globe, especially in the US. However, in the light of recessionary conditions in Europe, concerns of growth slowdown in China and uncertainty over the strength of the US economic recovery, corporate enterprises have adopted a wait and watch approach on capital spending. Nonetheless, a reversal in trend has started to appear, which is visible during January to April 2013, with better share price performances of Microsoft (+24%) and Google (+17%). Major telecom operators such as AT&T, Deutsche Telekom and Sprint have lined up extensive capital spending plans for 2013, which we believe have boosted investor appetite for technology stocks. On the other hand, Adobe has completely outperformed both the broader equity market and the other large enterprise software stocks. From January 2012 to April 2013, Adobe gained ~60%, which is more than double the 27% gain registered by the S&P 500 Index. The major fundamental factor driving this performance was the company’s move to transition to cloud-based delivery of its software from the traditional licensed-based delivery, which we believe led to the rerating of the stock. Moreover, better-than-expected adoption of its cloud products and consistent results for the last four consecutive quarters also contributed to the share price gain. The stock gained 5.7% on December 14, 2012, the most during our coverage period, led by its Q4 2012 results, which topped expectations. As evident from the chart, Adobe’s outperformance further improved after its Q4 2012 results, as the market realized the growth potential of the adoption of cloud-based delivery. Moreover, another strong result on March 19, 2013 and the company’s announcement that it has 500,000 paid subscribers for its cloud-based service added to the market optimism, which was reflected in the 4.2% gain registered on the next day of the earnings.

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Emerging Private Companies The following pages provide profiles of just a few of the many emerging companies in the Enterprise Collaboration and Social Software landscape. As with many sectors, attempting to classify companies into a single bucket and can be difficult and this is especially so in this area where companies tend to have rather widely varying offerings. Nevertheless, we have attempted to group companies into a few, high level categories based on their primary area of focus. The following summaries provide a useful overview of the breadth and nature of companies rapidly building out their businesses.

PRIVATE SOCIAL NETWORKING PLATFORMS

Traction Software, Inc. designs and develops integrated collaboration and action Greg Lloyd tracking software for enterprise use. It offers TeamPage, a Web-based hypertext Co-Founder & President journal, which integrates collaboration, tasking, communication, and profiles. TeamPage includes options, such as Social Enterprise Web, which enables clients to add a task tag, and comment or share pages found on the public Web or their www.tractionsoftware.com company’s intranet; Attivio, which indexes TeamPage content and metadata, performs advanced linguistic and context analysis, and delivers permission- aware, relevance-ranked search, and content navigation; Attivio Plus, which fuses TeamPage and external systems of record to work like the Web. TeamPage 245 Waterman Street Suite 309, configurable and deeply extensible. Traction Software serves pharma, finance, Providence, RI, 02906, US manufacturing, healthcare, consulting, and other enterprises worldwide as well as branches of the U.S. Government.

Douglas J. Engmann CEO Sharetronix LLC designs and develops software solutions for social enterprise networks in the United States and internationally. It offers Sharetronix Micro, a PHP- www.sharetronix.com based SaaS system with microblogging, profiles, file-sharing, and administrative tools for smaller sized organizations to communicate with teammates, personalize 2332 4th Street Suite C, Berkeley, CA, the discussion, and get updates on the groups and people. 94710, US

Manlio Carrelli Unison Technologies, Inc’s web and mobile apps make business collaboration CEO faster and more organized. Instead of painful group email threads, Unison provides “rooms.” Rooms are private, secure spaces where teams inside and across www.unison.com companies can quickly discuss updates, ideas, and files – by text, audio or video. Unison reduces group email threads and status meetings by 70-80%, unlocking big 424 W 33rd St, New York, NY 10001 productivity gains for office workers. Unison is a product of Unison Technologies, headquartered in New York City.

Jason Rosenthal Ning, Inc. operates Ning, an online platform for creating social Websites. Its CEO platform enables organizers, marketers, influencers, and activists to create an www.ning.com online destination that weaves social conversations in content and inspire action. The company’s platform includes instant community, user-generated content, 2000 Sierra Point Parkway Suite 1000, social integration, revenue option, data and analytics, search engine optimized, Brisbane, CA, 94005, US total control, and mobile features.

Clarence Wooten Founder & CEO Groupsite.com, Inc. develops a Web based hosted social collaboration platform. The company’s platform allows professional and social groups to communicate www.groupsite.com via subgroups, discussion forums, a group blog, and more; share important dates, email invitations, and centralize RSVP responses and comments; and share files, 7226 Lee Deforest Drive Suite 206, documents, photos, embed videos, widgets, and more. Columbia, MD, 21046, US

www.redcapgroup.com Page I 23 Enterprise Collaboration & Social Software

Memberhub provides private group collaboration & member management. Loren Harrell MemberHub empowers each group that serves in an organization to communicate Co-Founder and get organized in a private online hub with easy administration. It provides a centralized place for third-party organizations, such as churches, schools, and nonprofits to improve communication, manage member data and increase www.memberhub.com online collaboration. Organizations use MemberHub to empower their ministries, committees, or classrooms, to get organized and collaborate in private online hubs where each group can communicate using text messages, group calendars, discussions, files repository, photos, whiteboards and more. This results in reduced 1913 Reid St. Raleigh, NC 27608 paper costs, enhanced communication and in some cases, reduction in staffor volunteers needed for logistics.

Craig B.Malloy Bloomfire, Inc. designs and develops online training and sales team productivity Co-Founder & CEO software. Bloomfire is a knowledge sharing tool for the modern workforce that www.bloomfire.com connects people who have knowledge with those who need it, to help organizations continuously grow and improve. Its clientele include Kellogg’s, comcast, LifeSize, 1717 West 6th Street Suite 100, Austin, Plastipak, HealthSmart, and Aaron’s. The company was formerly known as TX, 78703, US SalesSquared, Inc.

TEAM COLLABORATION WORKSPACE

David Weekly PBwiki, Inc., doing business as PBworks, provides hosted team collaboration Founder & Chairman solutions for businesses and education workspaces in the United States and internationally. Its products include Agency Hub, a collaboration platform that allows agencies to interact with their teams and clients; New Business Hub, a www.pbwiki.com system, which organizes the new business process; PBworks Legal Edition, a solution to improve attorney and staff productivity; PBworks Business Edition, 1825 South Grant Street Suite 850, San a collaboration platform that allows businesses to interact with their teams, Mateo, CA, 94402-7041,US customers, and partners; and PBworks Education Edition, which allows users to provide an online environment for their students, faculty, and staff.

Alastair Mitchell Ninian Solutions, trading as Huddle, provides online collaboration, live conferencing, Co-Founder & CEO project management software, and document sharing solutions for users and businesses in the United Kingdom and internationally. The company offers project www.huddle.com and collaboration tools for users to manage projects, share and store files and 100 City Road, 1st Floor Trans-World information, create and edit Word and Excel documents, collaborate on ideas, House, London, EC1Y 2BP organize virtual meetings, and have group discussions online.

Isaac Garcia Central Desktop Inc. offers social collaboration platform that connects people, Co-Founder & CEO content, and customers in the cloud. It offers SocialBridge, an online collaboration www.centraldesktop.com platform that helps people to work together to share files, combine knowledge, 129 North Hill Avenue Suite 202, inspire ideas, and manage projects. The company also provides product support, Pasadena, CA, 91106-1960, US advisory, training, and customization services.

Farzin Arsanjani Application Corp, doing business as HyperOffice, provides cloud based Co-Founder & President communication, collaboration, and mobility software for small and medium sized businesses worldwide. It offers Core Collaboration Suite for document management, www.hyperoffice.com shared calendars, and address books; Enterprise Collaboration Suite that provides communication and collaboration tools; Business Email Service that enables users 30 West Gude Drive Suite 150, Rockville, to set up custom business email for their company; and Site Publisher that enables MD, 20850, US users to create intranet and extranet pages with drag and drop publishing tools.

www.redcapgroup.com Page I 24 Enterprise Collaboration & Social Software

Wayne Pope Glasscubes provides online collaboration solutions. Glasscubes gives teams and MD & CEO business the collaboration tools needed to get work done and save time. Glasscubes groups together key tools for all businesses but price-wise and ease-of-use-wise http://www.glasscubes.com is aimed at smaller businesses and entrepreneurs who have limited budgets and often no IT-dedicated employee. It offers branded online intranet, document management, simple CRM and project management tools enabling collaboration Suite 11572, 2nd Floor, 145-157 St John with colleagues and clients anywhere in the world simply and securely via an Street, London, EC1V 4PY internet connection.

Pablo Villalba Villar Teambox Technologies, doing business as Teambox, provides a platform to share Founder tasks, messages, and files. The company provides Teambox, a work management solution for freelancers, self-employed, small business owners, and large teams http://www.teambox.com that allows individuals both within and outside of an organization to work together in a social setting. It helps to create own projects, invite contacts, share pages, Suite 11572, 2nd Floor, 145-157 St John and post messages and files. The company also offers professional, installing, and Street, London, EC1V 4PY maintenance and support services.

EVENT SCHEDULING

Kevin E. Hartz Co-Founder & CEO Eventbrite, Inc., an online service, provides event creation, promotion, and ticket sales services. It offers online event registration pages; and event promotion www.eventbrite.com tools, such as leveraging search engines and event listings, social media, sending customized email marketing, creating custom contact lists, tracking links and 651 Brannan Street Suite 110, San affiliates, and embedding customizable widgets. Francisco, CA, 94107, US

Niclas Marie TimeCenter is an online appointment scheduling software for small businesses. Founder It allows businesses to accept appointments and event registrations 24/7 and its clients get reminders via e-mail and text messages. It also maintains Journal entries https://www.timecenter.com to keep track of customer’s every visit and delivers newsletters to inform customers about latest offers and news. The offering is widely used by beauty salons, Ostra allen 9, Helsingborg, 25451, Sweden hairdressers and massage therapists, yoga classes, groups and schools.

Felix Haas amiando GmbH provides a software-as-a-service platform for online event Co-Founder & CEO registration and social ticketing for small and mid-size event organizers worldwide. The company’s platform provides various tools, such as email invitations and event www.amiando.de promotion features; and includes event planner checklist, attendee management, event registration software, ticket sales and ticketing software, conference Sandstraße 33, Munich, Bavaria, 80335, management software, conference planning, seminar planning, corporate event Germany planning software, party planning, and concert planning applications.

Reggie Aggarwal Cvent, Inc. provides on-demand event management and Web survey software. It Founder & CEO also offers Web-based software, including online event registration, membership management, event management, event Website creation, meeting site selection, www.cvent.com and event sourcing software. In addition, the company provides on-demand communication software for events, Web surveys, and marketing campaigns. It 8180 Greensboro Drive Suite 450, serves corporations, associations, non-profits, and educational institutions, as well McLean, VA, 22102, US as third party planners and event/marketing professionals..

www.redcapgroup.com Page I 25 Enterprise Collaboration & Social Software

Rami Goraly ScheduleOnce is a meeting and appointment scheduling software that helps users CEO save time, increase customer satisfaction and be more competitive. Itworksin tandem with personal calendars to improve competitiveness, increase customer www.scheduleonce.com satisfaction and aims to save time. Scheduling group meetings or appointments for yourself to accepting bookings in your enterprise, ScheduleOnce can adapt and Misgav, Lower Galilee, 20182, Israel scale to every needs.

Bob laloggia Appointment-Plus provides flexible online scheduling solutions and advanced CEO features to all-sized organizations, from small businesses to Fortune 500 companies. The scheduling software provides over 8,000 clients throughout the United States, www.appointment-plus.com Canada and 17 other countries the tools they need to schedule customer and patient appointment and reservation times, book rooms, accept registrations, 13951 N. Scottsdale Road, Suite 110, send automated reminders, accept online payments, and many other services. The Scottsdale, AZ 85254 software has scheduled over 110 million appointments since its launch in 2001.

Richard Ruben CEO Skedge.me, LLC designs and develops online appointment scheduling applications. www.skedge.me It serves municipalities, high schools, universities, hospitals, retailers, call centers, trainers, non-profits, law firms, consultants, and real estate agents. 600 Madison Avenue New York, 10022, US

PROJECT MANAGEMENT

Michael Levinson WizeHive, Inc. operates online platform that allows groups to share conversations, Co-Founder & CEO notes, ideas, messages, tasks, calendars, files, to-do lists, and other information with team members, partners, and clients in private workspaces, which is entered www.wizehive.com via email, twitter, and mobile devices or from within the company’s platform. The company provides secure workspaces and on-line forms for funding organizations, admissions directors, contest managers, and others to collect, manage, and 6 Poplar Street, Conshohocken, PA, organize applications. Its form builder, data utilities, and workflow tools enable 19428, US collaboration around business processes, such as managing projects, processing resumes, evaluating funding requests, and scheduling development.

A product of project management software firm QG Software, 5pm is a browser- http://www.5pmweb.com based project management tool. The service comes with standard project management features like timelines and deadlines, group management, and Disarea LLC, P.O. Box 488, Wake Forest, project and task navigation. NC 27588, US

John E. Baldwin Daptiv, Inc. provides on-demand project portfolio management software and President & CEO professional services to organizations worldwide. It offers Daptiv PPM, which provides a system for streamlining project requests and project selection; gives a www.daptiv.com graphical overview of tasks for project schedules; enables resource managers to 1008 Western Avenue Suite 500, Seattle, allocate resources against approved project requests, get visibility into resource WA, 98104, US utilization, and streamline their communication process with project manager.

www.redcapgroup.com Page I 26 Enterprise Collaboration & Social Software

Andrew Uminski Comindwork is an online environment and set of tools for effective and convenient CEO collaborative work of knowledge workers. It contains many Web 2.0 (Enterprise www.comindwork.com 2.0) tools, which are easily mastered by new users: wiki pages, blogs, tasks, documents, search, tags, associations etc. Comindwork also provides new ways to integrate these tools specifically for the tasks of project management and intensive Box 974, CA, Rancho Santa Fe, 92067, US collaboration.

Mark P. Mader CEO Smartsheet.com, Inc. provides cloud applications for project management and collaboration. The company offers Smartsheet, an online project management www.smartsheet.com solution, which is used to track and manage various types of work, including team projects and task lists, customer information, sales pipelines, event schedules, and 10500 NE 8th Street Suite 1550, Bellevue, business processes. WA, 98004, US

Bud M. Whitmeyer Interim CTO TaskPoint.com, Inc. offers business-to-business e-commerce solutions for the construction equipment industry. It provides an interactive database for equipment www.taskpoint.com specifications, configuration, compatibility, and a patented task based solution process, which enables contractors to select, buy and manage construction 111 Corning Road Suite 150, Cary, NC, equipment and related materials. 27518, US

Dustin Moskovitz Asana, Inc. develops collaboration software tools. It offers Asana, a Web task Co-Founder manager that enables teams of people manage their work flow by breaking projects into tasks. Asana is a web application that keeps teams in sync - a single place for www.asana.com everyone to quickly capture, organize, track and communicate what they are working on. It was founded by Dustin Moskovitz, a Co-Founder of Facebook, and Menlo Park, CA,94025,US Justin Rosenstein, an alumni of both Facebook and Google.

Eric C. Morgan President & CEO AtTask, Inc. provides software-as-a-service enterprise work management solutions. Its product AtTask is useful for the entire project management process, including www.attask.com request management, work planning, work execution, work communication, 3300 North Ashton Boulevard Suite 300, performance management, and work intelligence. Lehi, UT, 84043, US

Joel Spolsky Co-Founder & CEO Trello is a free web-based project management application made by Fog Creek Software. Trello has limited support for tags, in the form of six colored labels that www.trello.com can be renamed. Cards accept comments, attachments, votes, due dates and 55 Broadway, 25th Floor, New York, NY checklists. 10006, US

Ben Hartmere CEO inMotionNow is a leading provider of workflow solutions for enterprise creative departments. Its SaaS solutions enable businesses to better manage production www.inmotionnow.com workflows and get creative content to market faster. inMotion, a flagship solution, simplifies the review and approval of creative content and job requests, allowing NC Research Triangle Park, 991 Aviation agencies and in-house creative departments to move their projects from kick-off to Parkway, Suite #500, Morrisville, NC, final approval quickly and easily. 27560, US

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Rob Vandenberg Lingotek’s translation Network helps businesses access new markets and customers. President & CEO Lingotek provides Inside Content Management System modules, a sophisticated translation management system and a professional translation services network. Its clients effectively manage translation projects using an intuitive, cloud-based www.lingotek.com dashboard. Translators use a completely browser-based translation interface that provides access to all the tools needed to produce high quality translations, including glossaries, style guides, and translation memory. Its software tools and 3400 N. Ashton Blvd. #150 translation services can adapt to fit content translation needs by matching timeline Lehi, UT 84043 and budget to the appropriate workflow—whether it be machine translation post- editing, community-based collaborative translation, or fully-managed professional translation.

COLLABORATIVE WRITING

Tomer Shalit CEO Nordic River, founded in 2006, has developed TextFlow, TextFlow API and the CompareMyDocs.com website. TextFlow makes it easy to review document www.nordicriver.com versions simultaneously, and rapidly produce a final draft allowing users to cut time with a tool that helps compare, recombine and even merge multiple versions of a Umeå, SWE, Norra bbolavägen 129, document. Umeå, 904 22, SWE

Fabrice Talbot Agilewords provides document collaboration solutions. The company provides Founder web-based application to collaborate on business processes such as collecting www.agilewords.com feedback, making edits, tracking changes, and reviewers’ approval. Its solution is used by lawyers, consultants, writers, and managers who need feedback and sign- Russian Hill, San Francisco, US off on their work.

MIND MAPPING & DIAGRAMMING

TheBrain Technologies Corp is a provider of comprehensive knowledge applications. Harlan Hugh TheBrain’s Enterprise Knowledge Platform, BrainEKP, connects people, processes, CEO and information into a highly collaborative user interface to leverage knowledge and expertise across the enterprise. It offers PersonalBrain, a mind mapping and information management solution to create knowledgebase for various ideas www.thebrain.com and projects; WebBrain, a solution that enables users to share online, backup, and synchronize their thoughts to various machines; BrainEKP, a knowledge management software for collective brain creation; and BrainSDK, an Ajax and Java software development kit to embed and customize TheBrain interface in desktops 11522 W. Washington Blvd., Los Angeles, or Web applications. The company also provides tutorials, user guide, getting CA 90066, US started Webinars, recorded events, user forums, blog, contacts, email, and phone support services.

Karl Sun Co-Founder & CEO LucidChart, LLC provides online diagram and flowchart software solutions. Its www.lucidchart.com solutions allow users to create, collaborate on, and publish flowcharts, wireframes, UML diagrams, and other diagrams from a Web browser. San Francisco, CA, US

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Mindjet Corporation provides collaborative work management solutions that Scott Raskin improve work productivity of individuals, small businesses, and Fortune 1000 CEO companies. It offers Mindjet Connect, a solution that captures, organizes, and visualizes individual and team goals and projects; Mindjet Connect SP, a solution that adds visual collaboration features and document discovery capabilities to www.mindjet.com enterprise installations of Microsoft SharePoint, as well as manages tasks and documents using a visual framework; and MindManager for Windows, a solution for strategic planning with analysis views, collaboration, Sharepoint integration, real-time insight, and built-in templates. The company also provides MindManager 1160 Battery Street Koshland Building 4th for Mac, a visual framework that helps in improving business results; Mindjet Apps Floor, San Francisco, CA, US for iPhone and iPad that allows entering ideas, tasks, and meeting notes into visual maps that help in organizing concepts and prioritizing action items; and Mindjet Tasks for mobile team and project management.

FILESHARING

Chuck Stormon Attend LLC is a managed service provider to the media industry. Specifically, the CEO company provides content creators with platform for handling all their digital www.attendllc.com media. It combines storage, file transfer acceleration and review/preview capability into a web app that allows for unlimited file sizes, unlimited users, unlimited PO Box 11, Cazenovia, NY 13035 US projects on an as needed (monthly) basis.

Aaron Levie Co-Founder & CEO Box, Inc. operates a content sharing platform that enables users to share, access, and manage content in the cloud, as well as from iPad, iPhone, Android, PlayBook, www.box.com and Window applications. It enables individuals to send big files faster, as well as 4440 El Camino Real, Los Altos, CA, provides mobile access, online file storage, and online collaboration solutions. 94022, US

Brad Garlinghouse Chairman & CEO YouSendIt, Inc. provides managed file sharing and transmission services worldwide. Its services enable enterprises and business users to access, store, send, receive, www.yousendit.com edit, sync, share, and append electronic signatures to files/documents through 1919 South Bascom Avenue 3rd Floor, work tools in the cloud from desktop, Web, or mobile devices. Campbell, CA, 95008, US

Anthony Foy CEO SkyDox Ltd. provides an integrated file sharing and secure collaboration platform that enables individuals and team members to share and work collaboratively on www.skydox.com documents and files. The company enables users to view, comment, search, store, deliver, manage, and collaborate on various types of files using a suite of secure Second Floor 19-21 Hatton Garden, online, mobile, and desktop-based collaboration, storage, and file-management London, Greater London,EC1N 8BA, UK tools.

Matt Peterson President & CEO eFileCabinet, Inc. develops electronic document management solutions for businesses and individuals worldwide. It offers eFileCabinet Desktop, a client/server www.efilecabinet.com document management software for storing and managing business documents; and eFileCabinet Online, a hosted electronic document management solution that enables organizations to capture and manage files handled within their office, both 2989 West Maple Loop Drive Suite 300, paper-based and digital without storing the information on their office server. Lehi, UT, 84043, US

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WEBCONFERENCING

Al Lieb Co-Founder & CEO ClearSlide, Inc. provides a cloud-based sales communication platform for enterprise sales professionals. It offers ClearSlide, a Web-based sales communications www.clearslide.com platform for the communication needs of sales teams/sales representatives. The company also provides ClearSlide Outside, a mobile set of products to deliver pitches, presentations, and proposals to engage customers and shorten sales 625 2nd Street 2nd Floor, San Francisco, cycles; and ClearSlide Remote, an iPhone app that enables sales people to select CA, 94107, US and drive their presentations from their iPhone.

Cinchcast Inc. provides solutions that allow companies to create, share, measure, Alan Levy and monetize audio content to reach and engage the people that are most Chairman & CEO important to their business in the United States and internationally. It offers Cinchcast, a cloud-based audio management platform for businesses to create, distribute, measure, and monetize their voice-based content and communications; www.cinchcast.com and Cinchcast Connect, a cloud-based platform that enables companies of all sizes to host and share live-streamed virtual events, Webcasts, and conference calls. The company helps corporations, media organizations, universities, associations, and event producers to communicate with their customers, employees, partners, and members. It serves customers in various industries, such as online media and 420 Lexington Avenue Suite 1825, New publishing, advertising, digital marketing, marketing, online publishing, public York, 10017, US relations, social media, education and training, event planning, human resources, and communications.

Crunched, Inc., formerly SalesCrunch, Inc., operates Web-based social networking and sales training platform to connect sales, business development, Sean Black account management, and customer services with customers virtually. It offers Founder & CEO CrunchConnect, an online meeting, presentation, and email tracking platform to meet online; make a personal connection with customers by seeing their social profile, local time, weather, and news; and present, demo, record, and share meetings with the team for feedback and improvement, as well as email www.crunched.com presentations, collaterals, and proposals through links that track who’s reading what and for how long to identify which customers are interested and where to focus attention. The company also provides CrunchTrainer to collaboratively train, track, and certify teams online; upload product and sales training materials in various formats; add conversations of salespeople overcoming objections, and answering questions and complaints from customers; drag and drop answers to 41 East 11th Street, 2nd Floor, New York, training programs; add quizzes to test knowledge; reinforce key points; and increase NY 10003 retention. In addition, SalesCrunch, Inc. offers SalesSchool, a community of thought leaders to build a resource of events, articles, and interviews about the science of sales. The company’s solutions are used by managers, as well as for marketing, product, and engineering.

VIDEOCONFERENCING

Jeff M. Cavins FuzeBox, Inc. provides Internet and mobile based unified communications solutions President & CEO for mobile professionals to communicate and collaborate from anywhere and from any device. It offers Fuze Meeting, a mobile and Web-based collaboration service www.fuzebox.com that features integrated audio conferencing, as well as high-definition, synchronized video, and image sharing; and Fuze Movie, a media collaboration software that 140 Second Street Fifth Floor, San provides visual media professionals the flexibility needed to collaborate and review Francisco, CA, 94105, US online and offline with distributed work groups across the globe.

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OTHER INTERESTING PLAYERS

Alfresco Software, Ltd. provides open source enterprise content management (ECM) solutions to enterprises worldwide. Its solutions include Alfresco Enterprise John Newton On-Premise, an ECM platform that allows organizations to manage various types Co-Founder & Chairman of content ranging from office documents, to scanned images, photographs, engineering drawings, and large video files; Alfresco in the Cloud, an enterprise- class content platform that offers online collaboration and secure file sharing in the cloud; and Alfresco Mobile, an application for iOS and Android smartphones www.alfresco.com and tablets, which enables users to view their content stored in their Alfresco on-premise or Alfresco in the cloud account. The company also provides Alfresco Enterprise Sync, a synchronization technology built into Alfresco Enterprise on- premise and Alfresco in the cloud that synchronizes files and folders; Alfresco API, which allows developers to build custom desktop, cloud, and mobile applications in The Place Bridge Avenue, Maidenhead, the cloud platform; and Alfresco Mobile SDK, an additional optional interface layer Berkshire, SL6 1AF, UK for mobile applications development for iOS and Android developers. In addition, its solutions include document management, business process automation and workflow, records management, team collaboration, Web publishing, and mobile content management solutions.

37signals, LLC develops Web-based collaboration applications for small businesses, Jason Fried freelancers, agencies, departments inside big organizations, and entrepreneurs Co-Founder & President worldwide. The company’s products include Basecamp, an online project collaboration tool; Highrise, a Web-based contact manager that saves and organizes notes and email conversations, as well as keeps track of proposals and deals; Backpack, a small business organizer that organizes and enhances a client www.37signals.com company’s internal communications, as well as tracks, discussions, documents, notes, forms, lists, photos, calendars, and other loose ends a business generates daily; and Campfire, a Web-based group chat tool that enables to share ideas, discussions, concepts, images, code samples, videos, mockups, and documents in a 400 North May Street Suite 301, Chicago, real-time private chat room. Its customers include designers, developers, lawyers, IL, 60622, US accountants, architects, non-profits, charities, universities, PR firms, retailers, manufacturers, consultants, authors, publishers, government agencies, students, marketers, airlines, restaurants, filmmakers, farmers, and others in-between.

Janet Case Co-Founder & CEO Proxio, Inc., a real estate technology company, delivers a software as a service listing management, client management, networking, and marketing platform to the www.proxio.com real estate industry worldwide. Its marketing and networking service enables real estate professionals to market themselves and their listings in various countries, 1001 Bayhill Drive Suite 273 2nd floor, San languages, and currencies. Bruno, CA, 94066, US

Ektron, Inc. provides Web content and document management software, social William Rogers software, and marketing optimization solutions for systems integrators, digital Founder & CEO agencies, technology partners, and training and translation partners in the United States and internationally. Its products include Ektron CMS400.NET Web Content Management, which provides the functionality to create, deploy, and manage client’s Websites; Ektron Intranet, a communication, collaboration, and distribution tool; Ektron Starter Sites, which are sample Websites designed to help clients learn www.ektron.com CMS400.NET and achieve common Web deployment scenarios; eWebEditPro and eWebEditPro+XML Editor Tools that integrate into custom and commercial Web applications, including content management solutions; WebImageFX Image Editor that provides digital imaging solutions; eIntranet, a solution for intranets to integrate elements of Ektron’s core technology; Ektron Cloud Manager; and Ektron 542 Amherst Street Route 101A, Nashua, Digital Experience Hub that enables marketers to provide customer experience NH, 03063, US across various digital channels, and create a coordinated view of customers across marketing systems. The company also provides consulting, implementation, hosting, and training services.

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Redwood Capital Group is an investment banking firm serving the technology, communications and media & business services industries. The firm focuses on mergers & acquisitions, debt and equity financings, and financial advisory services for its clients worldwide.

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Copyright 2013 Redwood Capital Group LLC. This report is published solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy any security. The information herein is based on sources we believe to be reliable but is not guaranteed by us and we assume no liability for its use. Any opinions expressed herein are statements of our judgment on this date and are subject to change without notice. www.redcapgroup.com Page I 32