The Virtual Handshake: Opening Doors and Closing Deals Online (

TheThe VirtualVirtual Handshake:Handshake: CurrentCurrent andand FutureFuture LeadersLeaders inin thethe SocialSocial SoftwareSoftware IndustryIndustry

DavidDavid TetenTeten CEO,CEO, NitronNitron Advisors,Advisors, LLCLLC

Social software resources: www.TheVirtualHandshake.com Consult to professional investors, and get free career resources: www.CircleofExperts.com Executive recruiting: www.Teten.com

© 2005 David Teten NitronAdvisors.com Page 1 David Teten • CEO, Nitron Advisors, LLC • Provides institutional investors with access to frontline industry experts • Chairman, Teten Recruiting • Executive recruiting for the institutional investor, investment banking, and strategy consulting industries • Co-Author • The Virtual Handshake: Opening Doors and Closing Deals Online (www.TheVirtualHandshake.com)

© 2005 David Teten NitronAdvisors.com Page 2 Social Software Landscape Customers The Public Enterprise General Realtime communications-- chat, IM, VoIP, web conferencing, SMS. AIM, ICQ, MSN Messenger, Yahoo! Virtual community builders. Purpose Messenger, Skype, IRC, Net2Phone Affinity Engines, Aptium, SelectMinds, Virtual communities / social networking services. IntroNetworks, Lithium, WebCrossing, Tribe.net, Craigslist, AOL, MSN Groups, MSN Spaces, Yahoo! 360, Yahoo! Groups, Ziggs, ezboard, vBulletin Alumni.net Biography analysis. ZoomInfo, Contact data management. ZillionResumes GoodContacts, Plaxo, Bebo, Jigsaw. Contact data management. Blog software and services companies. Six Apart, Technorati, Urchin, FeedBurner, NewsGator, Pheedo Best Software, Frontrange

Business Business-focused virtual communities / social network services. Relationship capital management. Purpose LinkedIn, OpenBC, Ecademy, Ryze, ZeroDegrees Contact Network, Spoke Software, Visible Path, Interface Software, Leverage Software Workflow: Lotus Notes, Groove Blogs: SilkBlogs, 21Publish, Traction Software Wikis: SocialText, JotSpot, Atlassian Social network analysis/knowledge management: Tacit, Entopia Job referral networks: Accolo, Jobster, H3.com Personal Virtual communities / social network services. Purpose Friendster, Tickle, Xanga, LiveJournal, Orkut Mobile social software. dodgeball, nTAG, WaveMarket Photo-sharing sites. Flickr, Fotolog.net, WebShots Dating sites. Match.com, eHarmony, Yahoo! Personals, lavalife, TRUE, PerfectMatch, Spark Networks Face-to-face meeting facilitation sites. Meetup, Evite, Cvent Tagging/Bookmarking.43things, del.icio.us, de.lirio.us

© 2005 David Teten NitronAdvisors.com Page 3 Selected Social Software VC Investments Company ($M) VC LinkedIn 10.0 Greylock Jigsaw 5.2 El Dorado Ventures Six Apart 10.0 August Capital Six Apart seed Neoteny Technorati 6.5 August Capital, Draper Fisher Jurvetson, Mobius Venture Capital NewBay 4.5 Benchmark LinkedIn 4.7 Sequoia Capital Friendster 13.0 Battery Venture, L.P., Benchmark Capital, Kleiner Perkins Caufield & Byers

Tribe 6.3 Knight Ridder Ventures, Mayfield Fund, Washington Post Company Spoke 11.7 Doll Capital Management, US Venture Partners, Sierra Ventures, Partech

Spoke 5.0 Doll Capital Management, US Venture Partners, Sierra Ventures, Partech

Spoke 4.2 US Venture Partners, Sierra Ventures, Partech Meetup 1.0 N/A Tickle 8.0 August Capital * There 6.0 Sutter Hill Venture Visible Path 3.7 Kleiner Perkins Caufield & Byers theSquare 6.0 Brio capital, Chazen Capital Partners, Hudson Venture Partner L.P., NorthStar Capital Partners, Odyssey Capital, Synergy Ventures, Yazam ClassMates 11.0 ARCH Venture Partners, Brand Equity Ventures, Madrona Venture Group

*$11 (angel investors), $33 in Total Yes, Another Bubble

13stripes - Affinity Engines - Amigos.com - AOL: People and Chat Directory - AsiaFriendFinder - Backwash - bianca - Bolt - BuddyPic.com - BuddyBridge - BuddyZoo - Building an Online Community: Just Add Water - Bumi-n City - Buzznet - Classmates.com - CNN Interactive Communities - CommunityZero - Company of Friends - The Conneck - Contact Network - Corporate Alumni - CouchSurfing - CPixel.com - Cybertown - del.icio.us - Dogster - domeus - dudecheckthisout.com - easeek - Ecademy - eConozco - EdGateway Communities - Edgeofeverything - eFriendsnet - 8minuteDating - Eliyon - enCentra - EnterNexus - EntreMate - Eurekster!, - Everything2 - everyonesconnected.com - eyebees - FaceParty - Findapix - FollowMrsPoon.com - FriendFan.com – FriendFinder – Friendifieds – Friendity - Friend Surfer - friendsreunited.com - Friendster - Friendzy - Full Moon Webs - FunHi - firsttuesday.com - GoingProfessional - Groups@AOL - Growth Company - Gruuve - heiyou.com – HelloWorld - hipster Huminity - ICERED - I’m Not From Here - IndianFriendFinder - InterAction - iSawYou.com - ItsNotWhatYouKnow - KnowMates - LianQu - LinkedIn - Link Silicon Valley - livingdirectory.org - Local2Me - thelunchclub.net - Makeoutclub - Many 2 Many - MapPlanet.com - matcheroo -MeatballWiki-Mediabistro-Mediachest-Meet Up -MixerMixer-Monster Networking -MSNGroups -MSN Member Directory - MySpace – mrNeighborhood - MyEMatch - New Friends in Town - NetMiner - Netmodular Community - Netparty - Networking For Professionals - nerve.com - nlinebusinessnetworking.com - Nowwwhere - Online Community Report - Open Business Club - OrderGenerator - orkut - PalJunction - Paradise-Petsburg-Picit.com-PinoyExchange -PinoyForum -PlaydoCommunity -PLINK -Polypol- PopMates-PowerMingle-RateMyBody-RateOrDate-RealContacts-ReferNet-RepCheck-Ringo-Ryze - Shortcut - Silicon Valley Pipeline - socialcircles.com - Social Grid – SocialTree - The Spark - SmartGroups.com - Spoke Software – The Square - StayingClose - StumbleUpon - Sullivan Executive Networking Community - Tacit ActiveNet - Talk City - TENG - Thefacebook - TheFence.com - There - threedegrees - Tickle - Tribe.net - TruthBytes - UUFriends - Virtual Communities and the Internet - Visible Path - Volume.com - waferbaby - Wallop -WebstockWhole Earth Festival -Well, The -WildAbout.com-WisdomBuilder-WhizSpark-WiW- WordofMouthConnection.com - World Lounge - WorldShine - YeeYoo - Yahoo! Groups - Yahoo! Member Directory - Zamboozle – Zanpo – Zerodegrees © 2005 David Teten NitronAdvisors.com Page 5

Source: Social Software Weblog “Networking”….What Is It Good For?

• Getting a job • Pay and promotions • Influence and effectiveness • Organizational learning • Democracy • Personal

• Ch = Character • Co = Your Competence • R= Relevance of the other person • S= Strength • I= Information • N= Number of people • D= Diversity

N D * ∑n=∑ (Chn *Con *Rn * Sn *In)

• Searchable

• Crosses boundaries of time and space

• Passive presence

• Ease of forming groups

• Reduced time and expense

• Greater visibility

• Entrepreneurial Opportunity • Better integration of web-conferencing/conversations with existing infrastructure. © 2005 David Teten NitronAdvisors.com Page 10 Blogging • Blogging • Allow feedback • Cross-link

• Affinity Engines, Aptium, SelectMinds, Traction Software • International Executives Resource Group (IERGOnline.com) • AlwaysOn-network.com • ValueInvestorsClub.com • Village.Albourne.com • ChiefOfficer.com • ComputerWorld Executive Suite (Exec.Computerworld.com)

• Leaders •LinkedIn •Ecademy •Ryze

Diverse Dynamic Unique

Relationships

Business Process & Workflow

Discrete Transactions Static Repeatable

Late 1980s 1990s Today

Source; Spoke Software Relationship Capital Management Software • Spoke.com, Contact Network, Visible Path, Interface, Leverage • Build new relationships • Benefits: insight, access, and influence • Improve close rates, deal velocity, and revenue per customer •Protects privacy

© 2005 David Teten NitronAdvisors.com Page 16 Workflow Social Software • “Groupware” • Lotus Notes, Groove, Basecamp • Wikis • SocialText, JotSpot • Corporate Blogs • SilkWare, 21Publish • Knowledge Management/ Internal Social Network Analysis • Tacit, Entopia

• Personal interest • Flickr •Friendster •Tickle • Dating •Match.com •eHarmony

© 2005 David Teten NitronAdvisors.com Page 18 Online Meets Offline • Meetup • Politics • Slashdot, LiveJournal • entertainment industry (film industry, screenwriters) • style & design professionals (graphic design, interior design, fashion industry) • Event Management Tools •Evite •cVent

© 2005 David Teten NitronAdvisors.com Page 20 Blog Business Models Traditional Businesses Leveraging Blogs • Corporate virtual presence • Robert Scoble • ~800 other Microsoft bloggers • Schwimmer Legal

© 2005 David Teten NitronAdvisors.com Page 21 Blog Business Models Traditional Businesses Leveraging Blogs • Using blogs to improve traditional business processes •Eloqua • Nitron Advisors • Teten Recruiting

© 2005 David Teten NitronAdvisors.com Page 22 Blog Business Models Selling Blog Technology • Technology sales focused on individual users • Bloglines •Six Apart (Movable Type) • Radio Userland •NewsGator •AmphetaDesk • FeedBurner

• Justin Hitt (Iunctura.com) • Graphic Communications World (Quoinpublishing.com) © 2005 David Teten NitronAdvisors.com Page 26 Blog Business Models Media Businesses Using Blogs • Virtual Communities • Flickr • 20six • Blogger •LiveJournal •Xanga •Hi5 •Userland

© 2005 David Teten NitronAdvisors.com Page 28 Blog Business Models Related Services • Data about the blogosphere • Technorati •BlogShares.com • BlogCensus.net • Blogdex.net • Bloglines • http://Blo.gs.

• At TheVirtualHandshake.com: •Tips • Mailing list •Blog • Detailed information on social software companies

David Teten is a serial entrepreneur who creates businesses that leverage social software. He is CEO of Nitron Advisors, which provides institutional investors with direct access to frontline industry experts. He is also founder of Teten Recruiting, an executive recruiting firm specializing in serving the hedge fund, private equity, investment banking, and strategy consulting industries. Teten Recruiting is the majority shareholder in Nitron Advisors. He was recently honored as a "Future HR Leader" by Human Capital magazine. David is a frequent public speaker, earning rave reviews from audiences such as the Euromoney Hedge Fund Start-Up & Business Development Forum; MIT Enterprise Forum (Israel); Kirkland & Ellis Private Equity Summit; Wharton School; Columbia Business School; Yale; and Princeton. David is the coauthor of The Virtual Handshake: Opening Doors and Closing Deals Culture Online (with Scott Allen). He co-writes with Scott a column for FastCompany.com; runs The Virtual Handshake resource site and blog; and also writes a personal blog, Brain Food. He is a contributing author for BLOG! How the World of Blogs and Blogging is Changing Our (CDS Books, fall 2005). David formerly was CEO of an investment bank focusing on serving the internet domain name asset class, which he built to 450 customers. He has worked with Bear Stearns' Investment Banking division as a member of their technology/defense mergers and acquisitions team, and was a strategy consultant with Mars & Co. While still in college, he ran a computer consulting group. David holds a Harvard MBA and a Yale BA.