Value-Added Services

Experience entrepreneurs can leverage

Entrepreneurs face many challenging issues. The Edison team understands such challenges and we help navigate through the exciting and sometimes daunting expansion stage - when growth is rapid and market share can be won. Our investment professionals include successful entrepreneurs, seasoned venture capitalists and experienced board members. We provide sound advice from those who have faced similar situations. Entrepreneurs can take advantage of our experience in private equity and finance, marketing, sales, planning and organization development. Edison offers Value Added Services that are specifically geared to the needs of expansion stage companies. These services are also tailored to the special requirements of companies that compete in information technology.

Management Counsel Financial Counsel Business Referrals Human Resource Assistance Management Education Program Credibility

Management Counsel

An Edison General Partner usually serves as a Director and advises management on strategic planning, financing, staffing and marketing. Edison is readily available as a continuing source of counsel and support to the entrepreneur.

We serve as a sounding board to discuss initiative and share concerns. We generate ideas, offer private constructive criticism and suggest practical alternatives. Most often, we reinforce management's decisions. Edison realizes that all businesses encounter difficult periods. We anticipate problems and work closely with management to achieve solutions.

Financial Counsel

A recent survey of entrepreneurs revealed, "The number 1 CEO strength was vision; the number 1 weakness cited was financing strategies." The Edison team brings financial expertise. The investment professionals advise companies on all aspects of fundraising spanning: equity funding, establishing relationships with lending and leasing sources, customer collections, government grants, distributions, licensing and royalty issues. We are especially experienced in securing financing for acquisitions.

Edison limited partners will promptly consider direct investment. Edison recently led $42M financing entirely from large institutions which are limited partners.

Edison Limited Partners include six commercial banks which provide credit facilities for venture backed growth companies. With Edison's equity investment strengthening the balance sheet, banks provide credit lines for accounts receivable and inventory, plus term loans or leasing for equipment purchases.

Six investment banks are Edison Limited Partners. We arrange visits to Edison portfolio companies to develop analyst interest in considering IPO and M&A activity. In addition, the analysts provide advice on positioning the company for optimal exit valuation.

We are actively involved with individual companies for three to ten years. When appropriate, Edison will leading investment banking firms to underwrite an initial public offering. Alternatively, Edison may work with management to facilitate a business sale or merger. Often equity capital can be leveraged over time through alternative sources of financing that mitigate ownership dilution of both founders and investors.

Business Referrals

During Edison's 23 year involvement in the venture, technology and entrepreneurial communities, we have developed many relationships. We often introduce customers, distributors and key decision makers. Edison's involvement defuses the "small company" objection.

Edison initiates strategic alliances encompassing technology exchanges, joint marketing programs and equity investments. These corporate partnerships often accelerate a new company's market acceptance and international distribution.

Similarly, Edison's Limited Partners are interested in assisting and working with our entrepreneurial companies. They can serve as new product test sites and provide sophisticated customer feedback. Edison facilitates special relationships with major corporate, financial, and government institutions.

Edison Venture Fund's specialized support network assists young companies in competing for market leadership. We refer capable professionals familiar with the needs of entrepreneurs, such as:

Human Resource Assistance

Attracting and retaining key staff is crucial for expansion stage companies. Edison investment professionals assist entrepreneurs by providing advice on issues such as compensation, benefits, incentives and recruiting.

Structuring competitive compensation and benefits packages is required to compete for top talent. Edison offers assistance in recruiting both senior management and middle management positions. Compensation and benefits survey data is available to check market competitiveness for key hires. The Edison partners and investment staff offer their expertise in designing incentive stock option plans, selection of recruiting services, authoring position descriptions and development of appropriate compensation and benefits packages.

Management Education Programs

Edison organizes educational programs which are designed to expose portfolio executives to best practices, and provide opportunities for networking with peers and leading academic experts. The Edison Director College is held at business schools bringing faculty and experienced BOD members together with CEOs.

Edison also coordinates programs sharing best practices among key function leaders of our portfolio companies:

• Sales & Marketing executives
• CFO Peer group
• CTO peer group
• See calendar for upcoming events.

Executives from Edison portfolio companies also meet to discuss trends in their industry segments:

• Financial Technology
• Pharmaceutical Business Solutions
• Communications
• Interactive Marketing

They discuss partnering, recruiting and other common topics.

Credibility

Edison Venture Fund's sponsorship and backing enhances a young company's credibility and visibility with potential customers, vendors, employee candidates and financial institutions. Our General Partners, associated with many successful companies, are well-known in the Mid-Atlantic region and throughout information technology. Our Limited Partners are premier institutions.

Respected as a lead investor, Edison is recognized for our thorough analysis, balanced evaluation and dedication to success. We can provide follow-on capital on short notice, under both positive and adverse operating conditions.