This book is dedicated to the entrepreneurs who set out to change the world. Their passion and driveadvance our society, improve our lives, and create employment and wealth for all of us. The entrepre-neurs featured here are some of the most successful we have encountered, but there are so many morewho are out there risking their careers, their financial stability, and their social lives for the good of ourworld that we dedicate this book to them.

We at Draper Fisher Jurvetson have been investing in start ups now for over 20 years, and our industryis forever fascinating and full of wonder. The people we meet are extraordinary, driven by some injusticeor difficulty or opportunity in the world, and they often create from nothing a way for their customers toimprove their lives. The blood, sweat and tears they shed are all for the good of their cause, and any success they achieve is rightly theirs.

The visions and products we see through the eyes of entrepreneurs can be as simple as Hotmail's freeemail, Skype’s free Internet phone service, or Overture's pay for performance search. Or, they can bebeyond the imaginations of science fiction writers, as in the case of Theranos' human-prescription feed-back mechanism or D-Wave's quantum computer. Whatever their effect, they all become a part of thehuman experience, our culture and our lives. It just keeps getting better.

Change will come to our lives faster and faster with the continued exponential development of commu-nications and information technologies, the melting of geographic barriers, and the improvement in governmental freedoms. Eventually, everyone will be able to exercise the creativity of the entrepreneur,and from the unleashing of their minds, we all benefit.

But it is only those who make the sacrifices, who keep their eyes on the mission, who lead their teamswith compassion and strength, and who ultimately wake the world to see what they have envisionedwho can be called, “The Riskmasters.”

Timothy Draper John Fisher Steve JurvetsonManaging Director Managing Director Managing DirectorDraper Fisher Jurvetson Draper Fisher Jurvetson Draper Fisher Jurvetson

The Riskmasters

Sabeer BhatiaSunnyvale, California

“We had our fair share of hard times. Finally we found aventure capitalist who was a true venture capitalist whowould venture to risk the money on two young peoplewith a dream.”

Hotmail pioneered free Web-based electronic mail. The

idea was simple, to give users for free a lifetime email

address that they could access over the Web. Hotmail grew

very large, very quickly. It had eleven million users before

being acquired by Microsoft in 1997.

Sabeer BhatiaCo-founder and CEOHotmail

Sabeer Bhatia

“Our recent successful IPO demonstrated stronginvestor confidence in the prospects of China's Internet search market, in our business modelas well as in our management team.”

Baidu accounts for over 50% of all Internet searches in

China, and the company recently completed the most suc-

cessful IPO of a foreign company in the history of NASDAQ.

In August, 2005, when Baidu went public, the company’s

share price rose from a range of $16-18 to an initial price of

$27 to close its first day at $120, shattering all NASDAQ

international records for an IPO.

Robin LiCEOBaidu

Robin Li

Robin LiBeijing, China

Niklas ZennströmLuxembourg

“We had the Draper family as investors from the beginning. We are delighted to have these leadinginvestors accelerate Skype’s growth and innovation.”

Skype offers high-quality voice communications to anyone

with an Internet connection anywhere in the world. One of

the fastest growing companies on the Internet, Skype has 54

million members in 225 countries and territories. Skype is

currently adding approximately 150,000 users a day and

has created a thriving ecosystem of products, services,

developers, and affiliates. Skype was acquired by eBay in

2005.

Niklas ZennströmCo-founder and CEOSkype

Niklas Zennström

“Warren Packard has been great with introducing us and promoting our technology and product to potentialcustomers by leveraging the firm’s network. DFJhelps us attract business partners and customers.”

Anagran develops next-generation routers using a new flow-state approach to IP routing, focusing on cost effective, fast,Quality of Service (QoS) - capable IPv4/IPv6 router technol-ogy for the Customer Premise Equipment (“CPE”) market.

Larry RobertsFather of the InternetCo-founder, CEO, and PresidentAnagran

Katya PuzyrkoCo-founder and VP MarketingAnagran

Larry Roberts & Katya Puzyrko

Larry Roberts and Katya Puzyrko

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Mike Cassidy

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“DFJ has been a terrific partner for us. Their extensiverolodex has opened doors for us from San Jose toShanghai. Their broad, deep experience has been a valuable asset to draw upon in countless situations. And they’ve stood by us through thick and thin. That’swhy I've raised seven different rounds of financing over two different companies that have included DFJ.”

Xfire is a free tool that simplifies the gaming experience by

making it easier to track, communicate with, and play with

friends. Xfire automatically keeps track of when and where

gamers are playing PC games online and lets their friends

join them easily.

Mike CassidyCo-founder and CEOXfire

Co-founder and former CEODirect Hit

Mike Cassidy

“The credibility and validation that comes with beinga DFJ portfolio company has enabled us to accelerateour momentum with customers, partners, and industrypress. Josh Stein and the team at DFJ have beeninstrumental to our early success.”

SugarCRM is the premier commercial open source customer

relationship management application provider. SugarCRM

created a new kind of software company that leverages the

combined intelligence of CRM developers across the globe.

John RobertsCo-founder and CEOSugarCRM

John Roberts

John Roberts, Jacob Taylor, Clint Oram

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Jim Hornthal

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“We were no different than a lot of startups, needing toreact to lots of changes in the marketplace. For a while,we felt like we were in the business of writing businessplans. DFJ’s Tim Draper understood that our flexibility toadapt was a strength, not a weakness, and was extremelysupportive of the evolutionary process we had to gothrough to find ourselves and create shareholder value.”

Preview Travel, Inc. merged into the first online travel

service, Travelocity.com, in March 2000. Now teamed up

with an industry leader in online travel and backed by lead-

ing travel innovator Sabre (the world's largest travel agent

reservation system), Preview Travel provides a broad, diverse

service offering.

Jim HornthalFounder and ChairmanPreview Travel

Jim Hornthal

“We cold-called DFJ on a Monday, met that week, andhad a term sheet the following Thursday. They movedas fast as we did. Tim Draper, the DFJ partner on ourboard, stuck with us through some dicey times, buthe never flinched. Tim’s staunch support enabled usto survive and succeed.”

Four11 was one of the first Internet companies to establish a

successful residential directory of names and addresses

nationwide and worldwide providing online telephone and

email directories. They were purchased by Yahoo in 1997.

Mike SantulloFounder and CEOFour11

Mike Santullo

Mike Santullo

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Kirk Loevner, Jeff Tangney, Richard Fiedotin

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“From finding us our first office space to recruiting seniorexecutives, and now advising us on strategy for an IPO,DFJ has been an active hands-on partner in building ourbusiness. They bring us tremendous business insight,strategic ideas, and share a true passion for our business.Their intelligence, relationships, and experience hashelped us every step of the way.”

Epocrates is the leader in providing clinical information to

physicians and other health care professionals at the point

of care. Epocrates also provides formulary information from

health plans, hospitals, Medicaid agencies and pharmacy

benefit management (PBM) companies that represent over

95 million individuals, and messaging, market research and

clinical trial recruitment services.

Kirk LoevnerCEOEpocrates

Kirk Loevner

“DFJ had confidence in us from the start and has beenthere for us since we signed the deal. From the outset,they have persevered in helping open doors that haveresulted in fruitful business partnerships. Their strategicinvestments in user generated content create additionalpartnering opportunities that have helped a companylike Technorati to big things.”

Technorati is the largest aggregator and search engine for

real-time, semi-structured information on the Web. The

company is currently indexing over three million weblogs,

which allows Technorati to be the definitive authority on the

way information propagates on the Web about any topic,

company, or brand.

David SifryFounder and CEOTechnorati

David Sifry

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Barry and Tracy Schuler

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“I knew them when the shingle just said ‘DraperAssociates.’ They knew me when I was a wide-eyed entrepreneur endlessly yakking about the ‘comingInteractive revolution of the 90s.’ And what a decade itturned out to be! Their support led to a level of successand accomplishment many dream of but few achieve.When I look at DFJ and their great success in the last 20years it makes me proud to know we ‘grew up’ together.”

Raydiance is developing and commercializing Ultra Short

Pulse (USP) Lasers. Raydiance can now deliver the benefits

of USP lasers from an inexpensive, rackmount-sized device

that operates on a standard power supply (110 a.c. or bat-

tery). By comparison, a commercially available USP Laser

would be room-sized, require special power and cooling,

and only be operated by highly qualified professionals.

Barry SchulerFounder and CEORaydiance

Co-founder and former CEO Medior

Tracy SchulerCo-founderMedior

Barry Schuler

“When we started Nantero, few venture capitalists hadever heard of nanotechnology. Fortunately I was intro-duced to Jennifer Fonstad and DFJ, who were far aheadof the curve in seeing the potential in this new field.Jennifer’s deep connections in the nanotechnology field,thorough understanding of how to guide a startup tosuccess, and patience have made her an invaluableboard member and part of our team.”

Nantero is using nanotechnology to develop universal mem-

ory - a non-volatile random access memory chip capable of

replacing DRAM, SRAM, and flash memory, and eventually

hard drives as well. This carbon nanotube-based product is

in early stages of development.

Greg SchmergelCo-founder, President, and CEONantero

Greg Schmergel

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David Uyttendale, Jeff Stewart, Adam Slutsky, John Delbridge

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“Explosive growth leads to a whole set of unique challenges,it was great to have the experience of DFJ on the team.It was also important that DFJ shared our vision anddesire to build a truly outstanding business. Their consistent support was refreshing.”

Mimeo provides Internet-based outsourced printing solu-

tions for corporations around the world, offering quality,

convenience, and hard-dollar savings for the production,

management and distribution of hardcopy documents.

Jeff Stewart,Co-founderMimeo

Jeff Stewart

“Aside from being smart - lots of VCs are smart - DFJis fast. DFJ sticks to the mantra that the ventureexperts talk about. They find and connect deeplywith great teams that have great ideas. They getmoney on board and help shape those ideas intoearnings. It’s the real deal...What venture capital isall about... And is absolutely who they are.”

Athenahealth is dedicated to providing healthcare practi-

tioners with a comprehensive answer to their practice

management, billing and collection needs. They combine

experienced insurance specialists, direct connectivity

linking customers to payers and cutting-edge technology to

create a multi-faceted suite of professional services that

make today's practice management systems and billing

services obsolete.

Jonathan BushCo-founder, President, and CEOAthenahealth

Jonathan Bush

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Jim Guzy, Mike Salameh, Wei-Ti Liu

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Sunnyvale, California

“More important than the dollars DFJ invested in PLXwas Tim Draper’s support and encouragement to ourmanagement team. Even during grim times, we cameaway from meetings with Tim feeling re-energized totackle challenges and to pursue new ideas. Many times,Tim’s enthusiasm and forward-looking attitude definitelygave us a turbo-boost right when we needed it.”

PLX Technology, Inc. was a pioneer in designing flexible,

fast chips that allowed various computer components and

devices to communicate with each other easier and faster.

The company has become the leading supplier of PCI

Express Bridges and Switches, and other standard input/

output (I/O) interconnect silicon for the communications,

server, storage, embedded-control, and consumer industries.

Mike SalamehCo-founder and CEOPLX Technology

Mike Salameh

“By creating a synthetic cell, we will for the first timetruly understand the essential components of life.The ability to construct synthetic genomes may leadto extraordinary advances in our ability to engineermicroorganisms for many vital energy and environ-mental purposes.”

Synthetic Genomics, Inc. is developing new scientific

processes to enable industry to design and test desired

genetic modifications. Synthetically produced organisms

with reduced or reoriented metabolic needs will enable

new, powerful, and more direct methods of bio-engineered

industrial production.

Craig VenterFounder, Chairman and CEOSynthetic Genomics

Craig Venter

Craig VenterRockville, Maryland

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“My respect for Tim Draper, Steve Jurvetson, John Fisher,Jennifer Fonstad and the DFJ team has grown over theyears and I consider them to be among the very best ‘partners’ I have ever worked with during my 28 yearcareer. Everyone’s money is green but it is the intellectualcapital that DFJ brings to a company that separates themfrom the rest.”

United Online, Inc. is a leading provider of consumer

Internet subscription services. The company's pay services

include Internet access, accelerated dial-up services, premi-

um email, personal Web hosting and domain services and

community-based networking. It also offers consumers free

Internet access, email and Web hosting.

Mark GoldstonChairman, President, and CEOUnited Online

Mark Goldston

“As entrepreneurs, my partners and I feel like we arepart of the DFJ family. DFJ has the foresight andbackbone to take risks in new industries where otherswill not, and DFJ has consistently led the VC packinto new markets rather than following the herdmentality. This has enabled them to be one of the firstVC’s to make investments in the start-up energytechnology sector and at GreatPoint Energy we havebenefited as a result.”

GreatPoint Energy is looking to revolutionize the use of coal

as our primary energy source. The company’s technology for

catalytic coal gasification can transform inexpensive coals

directly to methane (natural gas) which can then be used in

cleaner burning, gas fired power plants. The technology

promises to achieve this at a significant discount to current

natural gas prices.

Andrew PerlmanCo-founder and CEOGreatPoint Energy

Co-founder and CEOCoatue Corporation

Andrew Perlman

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Peng T. Ong

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“Steve Jurvetson was the first VC that had faith in me andthe first one that invested in Interwoven. We’ve both seenreally good times, and pretty tough times since then, andI’ve seen Steve really mature as a partner to entrepreneursbuilding companies. I look forward to the next time we’llget a chance to work together again.”

Interwoven, Inc., provider of Enterprise Content Manage-

ment solutions for business, enables organizations to unify

people, content and processes to minimize business risk,

accelerate time-to-value and sustain lower total cost of own-

ership. Interwoven delivers deep industry-specific solutions

which reduce business process cycle time from initial col-

laboration through design, production, sales, marketing,

legal review, IT and service.

Peng T. OngFounderInterwoven

Peng T. Ong

“DFJ and DFJ New England impressed us with their willingness to roll up their sleeves from the begin-ning. Raj Atluru and Scott Johnson worked hard tounderstand the many complexities of the market forour products and services, and they continue to support our day-to-day efforts in invaluable ways.Having DFJ behind us has proven invaluable onnumerous occasions when trying to convey our credit worthiness and substantiality.”

EnerNOC is an energy data communications company that

provides software and packaged managed services to the

distributed generation market. EnerNOC is also New

England's first Demand Response Provider, supplying

commercial and industrial customers with an enabling

technology and full-service solution to help ISO-NE create a

more robust energy grid.

Tim HealyCo-founder and CEOEnerNOC

Tim Healy

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Subodh Toprani

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“Steve Jurvetson has been a strong leader and a key influence on the board. He understands the challenges of companies that have to navigate unchartered waters in order to achieve breakthroughs that prove the technology viable. His support, enthusiasm, guidance and patience have been invaluable in helping ZettaCoremake progress towards the end goal of revolutionizingthe way semiconductor memory is constructed.”

ZettaCore is developing ultra-dense, low-power molecular

memory chips that have the potential to revolutionize the

microelectronics industry. The company uses molecular

structures as part of electronic storage devices, leading to

significant advances in memory cost and density, and to

devices requiring less power than current technology. This,

in turn, could form a key component of new generations of

electronic devices, both large and small.

Subodh TopraniCEOZettaCore

Subodh Toprani

“As a longstanding investor in Everdream, DFJ has provided us with high-value support from the initialstart-up phase, through the economic downturn, and now in our current high-growth phase. Their deep industry knowledge, strategic insight and commitmentto our success make them a valuable part of our team.We greatly appreciate their dedication and look forwardto a long and fruitful partnership.”

Everdream is the leading provider of Internet-based IT

services for desktop management. Everdream's award win-

ning service organization and advanced service technology

has provided businesses with an easy-to-implement, cost-

effective alternative for managing IT operations. Companies

receive IT services customized to their needs with immedi-

ate access through an innovative Web-based Control Center.

Mark HoffmanChairman, President, and CEOEverdream

Mark Hoffman

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Bob Lessin

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“The first institutional investor in the life of an early stageventure company is truly defining; after that, all theinvestors are largely ‘piling on.’ Draper Fisher Jurvetsonhad the insight, the wisdom and the courage to be Wit’sfirst institutional investor and I will never forget this.”

Wit Capital was the first online investment bank and broker-

age firm. Using the Net and automated brokerage technology

to keep costs down, Wit opened IPOs and venture

capital investments to individual investors. Wit Capital later

merged with SoundView Technology and was acquired by

The Charles Schwab Corporation in 2003.

Bob LessinCEOWit Capital

Bob Lessin

“John Fisher is not only a trusted advisor, but he is always exceptionally crisp in his analysis of our business challenges. Moreover, the entire DFJ organi-zation has been generous with their time, with theirconnections, and with their solid market insights.Simply put, we love DFJ and feel lucky to have themas investors.”

MFORMA is a leading global publisher and distributor of

wireless entertainment content. MFORMA provides interac-

tive mobile entertainment content and delivery technology

to the world's leading wireless operators. MFORMA's

solution is complete, saving operators from integrating and

managing multiple solutions, and giving them everything

needed to successfully provide entertainment products to

their subscribers.

Jonathan SacksCEOMFORMA

Jonathan Sacks

Jonathan Sacks

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Neville StreetChantilly, Virginia

“DFJ is one of the great influences behind Mobile 365’s success, with an ‘investment’ that goes far beyond just dollars. Early on, DFJ and lead investor AndreasStavropoulos shared Mobile 365’s vision of a wirelessfuture and that dedication has not wavered. On behalfof Mobile 365 and its nearly 300 employees worldwide,thanks DFJ. You’ve been there from the start – we sincerelyappreciate your partnership and continued support.”

Mobile 365 is the leading provider of mobile messaging

services and global messaging interoperability solutions,

delivering messages, premium content and value-added

services to global mobile carriers, content providers, mobile

marketing partners, and media and entertainment compa-

nies around the globe.

Neville StreetPresident and CEOMobile 365

Neville Street

“Tim Draper took a real risk on us when we got started withPTC. He is an ideal investor who thinks big, trusts theplayers, and has remarkable instincts. If I were to refer abudding entrepreneur to a venture capital firm, withouthesitation I’d contact Draper Fisher Jurvetson. They havea sincere interest in supporting their CEO's.”

PTC is among the largest independent software companies

in the world. PTC develops, markets and supports software

solutions that help customers improve the competitiveness

of their products and product development processes. PTC

has 3,600 employees in 30 countries around the world, and

serves more than 35,000 customers.

Dick HarrisonPresident and CEOParametric Technology

Dick Harrison

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Tom Williams

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“A successful investment firm uses all their senses to succeed.As a CEO, advisor, board member, and limited partner ofDFJ for the past 13 years, I have had the opportunity toobserve a venture capital firm that sees the vision, hearsthe passion, touches the opportunity, smells the success,and shares in tasting the rewards in working with creativepeople with great ideas. It has, and will continue to be, anhonor and privilege to work with DFJ and I wish themcontinued success in the future.”

Combinet's ISDN modems brought dramatically faster

online connectivity to online users in the 1990s, and

enabled an entirely new class of workers to arise: the so-

called "telecommuters". By enabling knowledge workers to

work from home and still be productive on corporate net-

works, Combinet's products helped thousands of corporate

employees to better balance work and family lives while

reducing congestion on freeways and emissions in the air.

Tom WilliamsCEOCombinet

Tom Williams

Stories

Hotmail

Sabeer Bhatia grew up in Bangalore, India as the son of an Indian ministry

of defense official and came to the U.S. in 1988 with only a couple of hun-

dreds in his pocket to attend Caltech. From Caltech, he later went on to

Stanford University for his M.S. degree. After graduating, he linked up with

his co-founder of Hotmail, Jack Smith. They received $300,000 in funding

from DFJ, and Hotmail launched on July 4, 1996, providing free Web-based

email directly to consumers. Steve Jurvetson joined the board. Tim Draper

made the suggestion to put a message at the bottom of every email that said,

“Get your free email at Hotmail.” While controversial at the time, since

advertising on email was considered spam, the product spread to 11 million

users in 18 months and “Viral Marketing” was born. In fact, Sabeer sent one

email to his friend in Bangalore and within 3 weeks there were 100,000 reg-

istered Hotmail users in India.

By late 1997, the company was signing up new users at a rate of 125,000 a

day. In just under two and a half years, Sabeer built Hotmail’s user base

faster than any media company in history – faster than CNN, faster than

America Online, faster even than the audience for Seinfeld. This kind of

growth doesn’t go unnoticed, and Microsoft ultimately bought Hotmail for

what is rumored to be $400 million in Microsoft stock. Now there are over

200 million Hotmail users, and Sabeer is a hero throughout the world for

freeing communications across geographic borders. The impact of Hotmail

is being felt in freer markets, freer societies and better global relationships

around the world.

DFJ is proud to have been associated with such a great entrepreneur who

had such an important impact on the world.

Baidu

Robin Li has a quiet confidence and a wise spirit. His ambition to build the

first Chinese search engine was met with a lot of skepticism. China was risky

for investors, Google was beginning to dominate the field, and people in

China didn’t use computers much. But Robin persisted and Baidu was

formed.

The company was introduced to John Fisher at DFJ. Fortunately, the DFJ

affiliate model meant that DFJ had a local team in Beijing. The opportunity

was unique, and DFJ worked with the local China team to make the

investment. The China-U.S. link proved to be critical for Baidu’s success.

The introductions to various start ups in the U.S. gave Robin new ideas for

how those could be best implemented in China. Today, Baidu accounts for

over 50% of all Internet searches in China, and the company recently com-

pleted the most successful IPO of a foreign company in the history of

NASDAQ.

Robin, of course, is not at all satisfied. Far less than 10% of the Chinese

population even use the Internet, and Robin won't rest until many, many

more people do.

Skype

Niklas Zennström with his partner Janus Friis were the founders of Kazaa,

the biggest peer-to-peer file sharing company in the world. They revolution-

ized the music industry. When news got out that they had sold Kazaa, Tim

Draper, with the help of his father’s partner, hunted them down. Tim was

enthusiastic about peer-to-peer technology, and was curious about the

team, and what they would do next. When they met, Tim was so impressed

with Niklas, he commented, “we should fund him, whatever he does.” That

was fortuitous, because the company started out in another direction,

before the founders hit on the most exciting application of peer-to-peer

technology to date: the ability to allow users to speak to each other for free

over the Web.

This revolution in telecommunications took off and Skype grew faster than

any customer acquisition company in history. Within weeks of launching,

the user base was in the millions. Once the team announced SkypeOut,

allowing users to pay 2 cents a minute for calls from Skype to phone lines,

the company had a path to profitability. When the user base reached 20 mil-

lion, the Skype team worked to become a platform for all communications

so that Skype could be the foundation for all providers on the Web.

The impact on the world was extraordinary. People from all corners of the

globe were now able to freely communicate with each other. Because of

Skype, there is more communication across borders, more understanding

across cultures and more trade among businesses. The positive impact of

Skype will be felt for years to come. The company merged with eBay to

become the dominant force in communications and commerce in the

world. Niklas and Janus will continue to drive the vision forward with the

strength of eBay behind them.

When Niklas went kayaking with Tim Draper in Estonia, the two got caught

by a “sneaker wave” that came up and drenched them. Niklas never found

a “sneaker wave” in business that he couldn’t handle. DFJ feels that it was

an honor to be a part of such an impactful and successful company and to

work with these genuine Riskmasters.

Anagran

Larry Roberts began designing ARPANET back in 1966 and led the overall

system architecture of what was to become the Internet that we all use

today. Not many individuals can claim this distinction. In fact, only four

individuals are widely recognized as the Founding Fathers of the

Internet...and, no, Al Gore is not one of them. Roberts, Vint Cerf, Robert

Kahn, and Leonard Kleinrock hold claim to this title.

Since the late sixties, Larry has started five companies, authored eight

approved patents, written three major international protocol standards,

designed and built seven packet switching products, received four Nobel

equivalent awards, and run five companies. During this distinguished run,

Larry met Katya Puzyrko and realized that every great idea and technology

needs to be complemented by a specialist in market and product execution.

This is where Katya fit into the picture. An accomplished engineer by back-

ground, Katya has had extended tours of duty running both business

development and marketing in the communications industry.

Larry and Katya are at it again in a start-up called Anagran. Not content with

current Internet protocols that deliver bits on a "best effort basis", the

tandem have set off to commercialize a novel communications protocol

that delivers data at the high quality of service demanded by real time appli-

cations, such as digital video conferencing, IP television, and Internet

telephony (VoIP). At the same time, they have discovered that the hardware

architecture that implements this protocol can be extremely cost effective,

surprisingly scalable, and a dream for IT managers seeking to simplify their

lives in light of all the complexity that surrounds them.

Larry Roberts began architecting the Internet back in 1966. Exactly forty

years later, Larry and Katya will make the real-time Internet a reality.

Xfire

Mike Cassidy is a rocket scientist...well, actually, he was a rocket scientist.

Suffice it to say, it's always good to have a rocket scientist around. You never

know when you might need one, especially one who has a knack for

identifying valuable business opportunities and building companies from

the ground up.

While Mike certainly has the capacity to design an actual rocket and send

it out into space, he has spent the last 15 years starting companies and send-

ing them off into the stratosphere. Mike started his first company back in

1990, Stylus Innovation. Having bootstrapped the company to profitability,

Mike ultimately sold Stylus to Artisoft (dba Vertical Comm.) in 1996.

Following this success, he joined a team of entrepreneurs from MIT and ran

Direct Hit: a revolutionary Internet search engine whose customers includ-

ed MSN, Lycos, AOL, and dozens of others. DFJ funded Direct Hit through

all three rounds of financing before Ask Jeeves acquired Direct Hit for over

$500 million.

A brief retirement followed the Direct Hit acquisition, but it was clear that

Mike couldn't stay away from the technology market for long. In early 2003,

Mike started Ultimate Arena, a Web-based destination site that enabled PC

gamers to compete against each other for money. While Ultimate Arena was

successful at attracting the best gamers from around the world, this success

had the unfortunate side effect of scaring away beginning and intermediate

gamers.

Without missing a beat, Mike recast Ultimate Arena into Xfire as the first

social networking tool for gamers. Xfire helps gamers play with their friends

much more easily. In a little over a year, Xfire has reached over two million

gamers in over 100 countries and is used, on average, over 70 hours per

month per member. Xfire was mentioned on the cover of Forbes and

described as “the TV Guide, maître d’ and instant messenger of the gaming

world.”

It appears that Mike has launched another rocket ship into space. DFJ is

honored to be a key member of the propulsion team once again.

SugarCRM

Great teams, disruptive ideas, big markets - it’s the classic recipe for venture

capital success. When DFJ first met SugarCRM, we believed they had all the

right ingredients for success. Founded in early 2004, SugarCRM was the

vision of three ultra-competitive and seasoned industry veterans - Clint

Oram, John Roberts and Jacob Taylor. Having played key roles in building

several of the largest enterprise software companies, they had an insider’s

view on where the industry was broken and revolutionary ideas about how

they could do it better. Inspired by the success of open-source projects like

Linux and Apache in the datacenter, SugarCRM became the first to take the

open-source model to business applications, becoming the first and most

successful of a new breed of software companies.

Since DFJ’s first decision to invest, the SugarCRM team has executed to

perfection. Just a year after the first product release, SugarCRM’s flagship

SugarSuite has generated more than 300,000 downloads and has been

embraced by more than 1,000 open-source developers, who have in turn

translated the software into 20 languages. Currently deployed by tens of

thousands of companies around the world as a core e-business system,

SugarCRM is the world’s largest open-source business application and one

of the most successful open-source projects overall. Powered by its extreme-

ly efficient and customer-friendly business model, SugarCRM is aiming to

reshape the software industry as we know it today.

Preview Travel

Jim Hornthal met Tim Draper in John Goodrich’s pool. Jim had an idea: to

create videos of and for travel and sell them in a variety of ways. Draper

Associates funded Jim not long after that after hearing Jim’s confident and

brash prediction that he would make Tim 25 times on the investment.

Tim was always impressed with the quality of the people Jim surrounded

himself with. The board members crackled with a combination of excite-

ment, entertainment, and snappy, interesting dialogue. Jim started by selling

to airlines, hotels and television shows, but as media began to be stored dig-

itally, Jim recognized the trend and jumped in with both feet. After years of

struggling with the company, Jim was suddenly a "content" mogul with Web

travel companies pursuing him from every side. He sold Preview Media

(formerly Preview Travel) to Travelocity, and Draper Associates made

exactly 25 times on its investment.

Four11

Mike Santullo has an energy all his own. He brings a sense of urgency to

every task. With Mike, no cliff is too steep. His team at Four11 felt it too.

Once DFJ funded Four11 (signing the term sheet on the ultimate frisbee

field), Mike focused on his business - an Internet directory, which he

believed would be unique and defensible.

Mike’s sense of urgency was catching. Every board meeting brought a

demonstration of a new service he could provide with the directory.

Rocketmail used Web-based email with a viral marketing message, and the

service took off like a rocket. With both a directory and free email, Four11

became a major acquisition target and several companies made offers

before the management team decided to combine with Yahoo, and that was

the birth of YahooMail.

Mike continues to be the ultimate Riskmaster. He helps companies get start-

ed against great odds, and for fun, as a rock climber, he climbs sheer rock

walls where no cliff is too steep.

Epocrates

During the spring of 1999, Richard Fiedotin and Jeff Tangney were still busi-

ness school graduate students at Stanford when they walked into DFJ’s office

for the first time. They were accompanied by representatives from two life

science VC funds who had given them an offer to invest, but wanted to add

some Internet marketing expertise to the mix - hence the trip to DFJ.

Richard’s and Jeff’s vision has remained true to this day: Epocrates is the

leading provider of point-of-care information to physicians and medical

professionals, claiming over one in four U.S. physicians as an active user.

The company sits in the middle of an interactive network that joins the

medical professionals with pharmaceutical companies, insurance payers,

medical education and research companies, all on top of the hands-down

industry-best drug information reference database. It was that drug informa-

tion database (processed specifically with electronic - not textual - lookup

in mind), coupled with the gutsy decision to offer the product to the doc-

tors for free, that led to one of the most rapid adoptions of a medical infor-

matics product in U.S. history and the creation of one of the most trusted

brands in U.S. medicine.

The virtuous cycle that ensued, with revenues coming from pharma compa-

nies and insurance payers wanting to reach out to medical professionals

with relevant clinical information delivered in the right context, plus user

subscription revenues from premium products, have resulted in a rapidly

growing, profitable company getting ready for the public markets. The future

of Epocrates looks brighter than ever.

Technorati

Dave Sifry is one of the best respected and most often quoted authorities on

the subject of blogs (or weblogs), the personal journals that have taken the

Internet by storm in the past couple of years. The latest studies estimate that

about 11%, or about 50 million, of Internet users are regular blog readers,

with the percentage increasing every day. A new weblog is created every

7.4 seconds, which means there are about 12,000 new blogs a day.

Bloggers - people who write weblogs - update their weblogs regularly; there

are about 275,000 posts daily, or about 10,800 blog updates an hour.

Dave conceived of Technorati in 2003 as the search engine of the real-time

Web, the place where all these conversations are taking place right now.

Technorati displays what’s important in the blogosphere - which bloggers

are commanding attention, what ideas are rising in prominence, and the

speed at which these conversations are taking place. Technorati makes it

possible for people and companies to find out what people on the Internet

are saying about them, their products, their competitors, their politics, or

other areas of interest - all in real-time. All this activity is monitored and

indexed within minutes of posting, unlike the traditional, spider-based

search engines where new information might take weeks to be discovered.

Technorati is Dave’s third startup - he was a co-founder of Sputnik and

LinuxCare in the past - and the most ambitious thus far. With over 17 mil-

lion sites and 1.5 billion links tracked, Technorati is the leader in the real-

time search space, which has allowed the company to secure partnerships

with a number of leading media properties (Newsweek, Washington Post,

and AOL, to name a few) to allow them to track the dialogues among their

readers. And blogs are just the beginning: Technorati is already pioneering

the tracking of other types of timely information scattered around the Web

(reviews, event listings, classifieds, etc.) and leading the industry-wide

efforts around establishing publishing standards for all of them. As more

time is spent on the Web searching for and consuming such information,

Technorati’s role becomes more and more crucial to an increasing number

of people.

Raydiance

Barry Schuler is one of a rare breed - he is a true visionary. Barry started

building personal computers in the mid-70s and he hasn’t stopped thinking

about what they can do since. He has made many notable contributions to

the IT industry including developing early video games in the 1970’s,

pioneering the color desktop presentation category, co-developing the first

commercial interactive ecommerce technology, developing the first version

of America Online designed to appeal to mass market consumers, and

notably, he was a senior team member and ultimately Chairman and CEO

of AOL as the company grew from $400 million to a phenomenal $350

billion in market cap during 20 consecutive quarters of growth. Barry joined

AOL through the acquisition of Medior, a company he and his wife, Tracy,

founded and in which DFJ invested.

Barry’s “Next Big Thing” is Raydiance, a company that is in the process of

revolutionizing the ablative laser industry. Raydiance has succeeded in

transforming a $1.5 million, bulky, workbench-based, free-space optics

ultra-short pulse laser device into a 70% cheaper, briefcase-sized, software-

controlled device with 5-10 times more power. Applications range from

laser surgery, nanomachining, industrial precision-cutting, and military

uses. The patent-protected technology at Raydiance could have a profound

and transformative influence across numerous industries in the years to

come. Just another flash of light in Barry’s luminous career.

Nantero

Thomas Rueckes, while completing his Ph.D. at Harvard, developed a

simple but elegant concept for using carbon nanotubes to create computer

memory. Using carbon nanotubes (thin strands of carbon about 15,000

times thinner than a human hair ) in a cross-bar configuration would enable

a very fast, low power, non-volatile switch that Tom thought could one day

replace all the existing forms of memory used in electronics. The concept

won him the prestigious Material Research Society Gold Award, a published

article in Science, and a Ph.D. from Harvard, but it was an ambitious goal

to take the idea and build a company around it. Tom teamed with business-

man Greg Schmergel and scientist Brent Segal to launch Nantero in the

winter of 2000.

Greg Schmergel, already a successful entrepreneur, brought the organiza-

tional and business experience the project needed to begin the company

building process. He raised a seed round of funding with DFJ in August of

2001, built out the company lab and negotiated the company’s first business

deals with BAE and LSI Logic. Greg successfully raised two subsequent

rounds of finance, closing additional business and government contracts,

and hired key personnel to drive the commercialization effort. The company

was recently named as a business leader in the Scientific American 50.

It is still early days for Nantero, but the vision Tom had - to see carbon nan-

otubes switching as memory bits in a standard CMOS fab - has become a

reality. The future is bright for this dynamic team and the company they

have created.

Mimeo

Mimeo is not the first business Jeff Stewart and Dave Uyttendale, college

buddies from Rensselaer Polytechnic Institute, founded together. Their first

venture, SquareEarth, was a successful Internet technology consulting firm

with clients such as Merrill Lynch, PepsiCo, Citibank and Pfizer. The sale of

SquareEarth to Proxicom gave both of them financial independence and the

time to plan their second startup, Mimeo, which officially launched in

February of 2000.

Mimeo provides just-in-time printing, binding and delivery of documents

from any desktop to any physical destination. As ex-consultants, Jeff and

Dave had experienced the embarrassment of having important documents

produced at local copy shops that were missing pages, poorly copied or just

late. They realized there had to be a better way, and they devised Mimeo as

the Internet-enabled solution to just-in-time printing and delivery needs.

Mimeo’s unparalleled quality, security and 24/7 dependability, have led to

hundreds of enterprises selecting Mimeo for all their printing and delivery

needs, thus displacing either in-house printing centers or trips to local copy

stores. The economies of scale and processes of continuous improvement

on the factory floor, coupled with consistent software innovation and lack

of retail store-front expenses, have created strong financial momentum for

the company (revenue growth rates in excess of 40% per year and sustained

profitability). They are clearing high hurdles on the company’s way to the

public markets and, we believe, to greatness.

Athenahealth

In 1996 while at Harvard Business School, Jonathan Bush had an idea for a

medical management company. As a class project, Jonathan and a team

including DFJ’s Jennifer Fonstad wrote a business plan for the idea. Jonathan

was intrigued and took the plunge after graduation, convincing his Booz

Allen colleague Todd Park to be his partner. Raising an angel round from

friends and family, Athenahealth was born.

The two started out by purchasing and managing two medical groups. They

quickly found, however, that insurance companies took too long to pay

them and it cost too much to collect; it was killing their cash flow. In

typical start-up fashion they dug into the challenge and thought there might

be a business in it. They sold off the medical groups and focused on provid-

ing Web-based billing services for doctors.

To pull it off they needed to build a complex rules engine with hooks into

every major insurance carrier, while providing an auditable paper trail. They

raised their initial round of venture funding from DFJ and several other

investors and launched the new business. The value proposition was

unbeatable: doctors would collect their payments in half the time while

increasing their revenues by 10-20%. The business quickly took off.

Jonathan and Todd are the consummate entrepreneurs. Jonathan, as the

CEO, provides passionate leadership for the company, building a strong com-

pany culture that has been the mainstay of Athenahealth’s success. Todd

leads product development and also drives the company’s strategic business

relationships. By building a strong team and listening to customers they

have revolutionized the medical payments industry.

As the company launches new products and prepares to go public, the two

founders continue to drive the business toward becoming the Mastercard of

the healthcare industry. It is entrepreneurship at its best.

PLX

Jim Guzy and Wei-Ti Liu knew each other from AMD where they developed

advanced memory chips together. They recognized that a big problem with

semiconductors was in how they transferred data throughout the system.

The “buses“ that transferred data tended to have to be redesigned for every

system. Jim and Wei-Ti noticed that there were parts of every bus that were

standard and parts that had to be custom designed. So they launched PLX

to combine the fast and inexpensive ASIC application specific device with

the flexible and more expensive programmable logic device to allow cus-

tomers both speed and flexibility in designing buses for their systems.

Neither of them had any business training, so Mike Salameh joined the

team as CEO and Jim's father, Jim Guzy, Sr. from the Intel board joined as

Chairman. Tim Draper made an initial seed investment once the team was

in place. Since that time, with Jim Sr.'s guidance, Mike has led the team

profitably through a series of evolutions as chips have become more com-

plex. Mike recently made a prescient bet on a new computer interconnect

technology called PCI Express that promises to take the company to the next

level. Chip interconnect speed becomes more and more important with the

explosion of the internet and complex communications systems. PLX

became a public company in 1999 and is valued at over $300 million.

Synthetic Genomics

“Life is the imperfect transmission of code.” At the DFJ life sciences confer-

ence, Juan Enriquez, President of Synthetic Genomics, shared some of his

adventures sampling microorganisms from the Sargasso Sea with Dr. J. Craig

Venter, President of J. Craig Venter Institute, a not for profit basic research

institute. From the first five ocean samples collected during the

circumnavigation voyage, Dr. Venter’s team of scientists increased the

number of known genes on the planet ten-fold and the number of genes

involved in solar energy conversion one hundred-fold.

Based on data collected from the Sorcerer II Expedition, Dr. Venter and his

team have discovered that the oceans are not homogenous mixtures of all

organisms, as was commonly thought. Every 200 miles of open ocean,

microorganisms’ genes differ by as much as 85 percent. The oceans are

comprised of myriad uncharted regions of ecological diversity, and serve as

the world’s largest genetic database.

With his new company, Synthetic Genomics, Dr. Venter, Juan Enriquez, and

Nobel Laureate Hamilton Smith are extending and commercializing their

minimal genome project. They are working on creating a synthetic cell,

whose genetic code can be “programmed” to perform desired functions by

splicing cassettes of novel genes. From this collection of diverse genomes,

they are learning to write genetic code, instead of just being able to read it.

Synthetic cells could be used to create a biological solar cell or to generate

hydrogen from water using the sun’s energy for photonic hydrolysis.

The urge to change the world is unquenchable in entrepreneurs. Most

people know Dr. Venter as the man who won the race to sequence the

human genome with the private sector initiative of Celera. Having

sequenced the human genome, he did not rest on his laurels, but extended

the shotgun sequencing innovation from single organisms to microbial

ecosystems of the oceans. Dr. Venter is an explorer of the great frontier of

the unknown, ever questioning previously held scientific theories in search

of the truth.

United Online

They were early but ambitious days when Mark Goldston took the helm of

a small, fledgling company with the crazy proposition of providing free

Internet access. Mark was an accomplished business leader as the

former CEO of Einstein/Noah’s Bagels, COO of LA Gear, and Chief

Marketing Officer at Reebok. When he joined Netzero, the company had

about 25 people all crowded into a basement; they had just launched the

service and were acquiring subscribers at a breathtaking pace. The question

was, what to do to build a revenue-generating business.

Mark jumped into the crowded room, rolled up his sleeves, and got to work.

The proposition was simple: be the lowest cost provider of Internet access

in the world. Mark proposed a business model with a multi-tiered product

offering including the company’s first paid service. As other competitors fell

by the wayside and AOL saw it’s annual subscriber numbers start to decline,

Netzero continued to grow, with a dramatic shift of its user base to the paid

service. He led a merger with the number two player, Juno Online as well

as acquired subscriber assets from the other smaller players exiting the

business.

Today, United Online is a public company and one of the largest providers

of dial up services. The company generates approximately $500 million in

annual revenue and provides a range of Internet services, including

Classmates.com, in addition to Internet access. It is a long way from those

early days in the basement but is the classic entrepreneurial story written by

a great entrepreneur.

GreatPoint Energy

Any time Andrew Perlman presents an investment opportunity, VCs listen.

Andrew and his co-founders Aaron and Avi are multiple-time entrepreneurs

who know how to build a business. We were first introduced to the team

through our co-investment with DFJ New England in Coatue, a nanotech-

nology company focusing on memory devices. After selling Coatue to AMD,

the team founded another venture backed company before founding

GreatPoint Energy. GreatPoint Energy is looking to revolutionize the use of

coal as our primary energy source.

The company’s technology for catalytic coal gasification can transform inex-

pensive coals directly to methane (natural gas) which can then be used in

cleaner burning, gas fired power plants. The technology promises to achieve

this at a significant discount to current natural gas prices. While a daunting

task, the team has the vision and experience to make a real run at creating

a very important company in the clean technology space.

Interwoven

Peng T. Ong epitomizes the immigrant mentality at the core of entrepreneur-

ial dynamics. Raised in Singapore, a country of immigrants, Peng came to

the U.S. for his BSEE and MS in Computer Science. He was drawn to start-

ups from the beginning, developing software at Gensym, Illustra and

Match.com before founding Interwoven.

DFJ first heard of Interwoven when a different entrepreneur was pitching a

Web site authoring tool. Near the end of the meeting, for some unknown

reason, he volunteered, “You know, if I was you, I wouldn’t invest in our

company. I’d invest in Interwoven. It’s the coolest tool I’ve seen for the

Internet.” Needless to say, DFJ took his advice.

Peng developed a collaborative Web site production system that allows

groups of people to coordinate their Web site authoring efforts. Through a

sophisticated modification to the file system on client and server,

Interwoven interoperates with all authoring tools and environments.

More importantly, Peng is a true entrepreneur, and imbued a culture of

frugality in the corporate DNA. He paid himself a subsistence wage, which

rippled through the cost structure of the organization. He raised a small

Series A round, with DFJ as his sole VC, at a $1 million valuation. Four years

later, Interwoven was a public company worth almost $10 billion at the

height of the boom.

The cycle of entrepreneurship continues. Since Interwoven, DFJ invested in

a new team of entrepreneurial immigrants from Singapore that Peng brought

to DFJ, and Interwoven executive alumni have left to found Xtime and

OnVantage, both DFJ investments. The corporate DNA from Peng permeates

these new companies with a common culture of frugality and managerial

openness. Entrepreneurship is a powerful expression of symbolic immortality.

EnerNOC

Tim Healy and David Brewster are classic DFJ entrepreneurs: young,

passionate, and willing to walk through walls to build their company. The

two founders previously gained insight into EnerNOC’s market opportunity

through their positions at Beacon Power Corporation and Northern Power

Systems, two leading energy technology companies. EnerNOC is building

the control layer for managing distributed energy systems and demand

response activities. Instead of investing to increase generating capacity and

improving the grid, utilities and independent system operators are now able

to decrease end user energy usage and increase the capacity of the overall

system by tapping into existing generating capacity at commercial, industrial,

and institutional facilities, all in real time. On any given day, system opera-

tors who manage the electricity infrastructure can tap into the EnerNOC

network and access thousands of endpoints.

EnerNOC is leading the way to a smarter grid and better utilization of

existing energy assets. DFJ and DFJ New England partnered on the deal,

leveraging DFJ’s experience in clean technology investing and DFJ New

England’s on-the-ground presence to help actively build the company.

ZettaCore

Subodh Toprani has spent his career riding the juggernaut of Moore’s Law.

In the late 70’s, at Midway, he helped to adapt the novel development of the

microprocessor to revolutionize coin-operated games. In the 80’s, as

Director of AMD’s PC Products Division, he saw the microprocessor revo-

lution extend to computing and the popular instantiation of Moore’s Law. In

the 90’s, as VP and GM at Rambus, Subodh rode the ascendancy of memory

over logic as the primary use of transistors in integrated circuits. In the early

00’s, as CEO of Catamaran and SVP and GM at Infineon, he saw how even

“logic” products, like communication chips, become saturated with mem-

ory over time.

Now, as the CEO of ZettaCore, Subodh is developing the next phase of

Moore’s Law - as nanotechnology extends and eventually transcends the

“silicon era” of Moore’s Law, ushering the next paradigm for computation.

ZettaCore builds memory chips from energetically elegant molecules that

are similar to chlorophyll, and self-assemble on exposed metal contacts on

otherwise standard silicon chips.

A broad set of industries depends on continued exponential cost declines in

computational power and storage density. Moore’s Law drives electronics,

communications and computers and has become the primary driver in drug

discovery and bioinformatics, medical imaging and diagnostics. Over time,

the lab sciences become information sciences, and then the speed of

iterative simulations accelerates the pace of progress. But the future of

Moore’s Law is not standard silicon transistors. Within 25 years, they will be

as obsolete as the vacuum tube.

Looking to the long term, DFJ portfolio companies ZettaCore, Nantero and

Coatue (acquired by AMD) are pursuing the next paradigm, self-assembling

3D molecular electronics, which should afford size, power, speed, efficiency

and cost advantages over the planar silicon transistor, just as the transistor

did over the vacuum tube, and the vacuum tube did over its predecessor

technologies.

Everdream

Mark Hoffman has led two companies in the past which created billions of

dollars of value for their early investors. He was the co-founder and CEO of

Sybase-which reached almost $1 billion in revenues during Mark’s last year

there-and CEO of Commerce One, one of the first companies to design

infrastructure software that connected complex commercial processes into

one centralized marketplace and became synonymous with B2B

e-commerce in the process. All of us at DFJ hope Everdream becomes his

third billion-dollar hit!

Everdream came to DFJ in 1999 with a very simple idea, which, however,

has proven quite elusive even today: personal computers should just work,

period. We don’t have to reboot (much less protect from viruses, etc.) our

phone or any other appliance at home or work, so why should we have to

do it for our computers?

Everdream’s technology allows any personal computer, desktop or laptop,

and an increasing number of other “smart” mobile devices to behave like

the dependable appliances we’d like them to be. The company’s software

agents work in conjunction with hosted software on Everdream’s side that

makes sure the protected PCs always have continuous network backup,

virus protection and a whole host of other services to make complete desk-

top management easy for enterprises. Customers like FedEx, ADP, and

Maersk have come to appreciate the benefits of Everdream’s business

model, which turns what used to be a people-intensive, thankless, non-core

IT responsibility into an outsourced, scaleable technology-enabled service

with guaranteed end-user satisfaction.

Having survived the post-Internet bubble years with continuously growing

revenues Everdream is now poised for even faster growth. With ever-grow-

ing appetite for loftier goals, the investor group was able to attract a CEO of

Mark’s caliber to take the helm in Everdream’s quest to make the dream of

an unbreakable computer a reality.

Wit Capital

When the biggest names on Wall Street and corporate America had big

deals to do, Bob Lessin was often the man they called upon for advice. Bob

headed mergers and acquisitions for Morgan Stanley in the 1980’s, and was

Vice-Chairman of Salomon Smith Barney in the 1990’s. He was a banker

who had a vision of a world believing the Internet would fundamentally

change the way investment information and securities got distributed to

investors. He decided to pursue that vision by striking out as an entrepre-

neur just as he reached the pinnacle of his powers on Wall Street.

Bob joined Wit Capital as CEO in 1998 and along with founder Andy Klein

drove the upstart investment bank from obscurity to a high-profile IPO

during the investment banking boom of the 1998-2000 period. Wit Capital

later merged with research-driven Soundview Technology Group and in

2003 was acquired by The Charles Schwab Corporation.

Today, millions of investors obtain timely information and trade securities

via the internet on a daily basis, thanks to the vision and efforts of Wall

Street pioneers like Bob Lessin.

MFORMA

When Jonathan Sacks was President of America Online, he was helping to

change the way people communicate, obtain information and conduct

business. That’s why DFJ recruited Jonathan to run MFORMA - so he could

have a chance to do it again for a much larger audience, one that is poten-

tially well in excess of a billion people.

MFORMA is the brainchild of Dan Kranzler, a former McCaw Cellular

executive, who understood that the next wave of global Internet adoption

was not going to take place on bulky and expensive desktop and laptop

computers, but was instead going to be realized on the little wireless

devices a billion people in the world carry around every day that just

happen, among other capabilities, to allow people to talk to one another.

The company has been assembled through fifteen acquisitions in a classic

“roll-up” fashion, and now boasts contracts with well over 100 wireless

service carriers in over 50 countries around the world, and includes approx-

imately 10 million consumer subscribers in China alone.

With content offerings that are both proprietary as well as branded with

such partners as Marvel, Paramount and CBS, MFORMA is now one of the

world’s leading companies providing entertainment and content for mobile

phones. With Jonathan’s help, the company plans to significantly expand its

product and service offerings to create a true mobile media company.

Mobile 365

Mobile 365 is the global leader in messaging and data services delivered

over mobile phones. The company was born out of the merger of

InphoMatch (a DFJ and Draper Atlantic-backed company) and Mobileway

in 2004. At this point, Mobile 365 delivers approximately two billion

messages per month to mobile phones around the world.

InphoMatch was first discovered by Draper Atlantic and supported through

two separate rounds of funding during the tough early days after the burst-

ing of the Internet bubble. At that time in the U.S., mobile phones were

used almost exclusively for voice calls, even as the rest of the world was

experiencing huge growth of short text messages (SMS messages) and

associated revenues and profits for the carriers overseas. Once VoiceStream

(now T-Mobile) and AT&T agreed to allow each other’s users to exchange

SMS messages through InphoMatch’s data switches, it all changed. True to

the promise, the growth of SMS messages between U.S. carriers emulated

the torrid pace of Europe and Asia in the past, leading to the signing of

Verizon and scores of other carriers in the U.S. and abroad for InphoMatch.

As InphoMatch started to experience explosive growth, the need for a

seasoned leader with deep domain expertise in the global mobile data

marketplace became evident. Neville Street, with his prior stints as CEO of

Macrobridge and OmniSky International, as well as vice president for BT

Wireless and Palm Computing, was just that person. As a pioneer of

application-to-person mobile communications in his prior life, Neville saw

that mobile phones were becoming increasingly data-driven-instead of

voice-driven-devices, which meant that InphoMatch would have to expand

its offering to all kinds of content-driven messaging applications.

In 2004 a shortcut was found: the strength of InphoMatch’s carrier-grade

network and carrier connections for messaging interoperability was com-

bined with Mobileway’s globally leading application-driven messaging

platform and scores of additional carrier connections, giving birth to Mobile

365. With Neville at the helm, the company is today the undisputed largest

global provider of messaging services to branded content partners and

carriers around the world, eyeing the public markets as a possible next

move.

Parametric

On a trip to Boston in 1986, Tim Draper visited Apollo Computer, a

company his father, Bill Draper, had venture financed and which was at the

time a fast-growing public company making powerful computer worksta-

tions. Tim asked the Apollo guys a straight-forward question: “What is the

most exciting software you have seen that runs on your workstations?” The

answer was also straight-forward: “Go see Sam Geisberg’s new mechanical

CAD software company”, which was later named Parametric Technology

Corporation. Tim did, and he became instantly impressed. This engineering

software product addressed the missing front end of the product design

process by enabling the design engineer to change one parameter of a

design and see all of its ramifications in the total design; hence the name

“parametric.“

Tim invested, and soon afterwards the board brought in Steve Walske to be

CEO of the company, and Richard (Dick) Harrison, a motivated and ener-

getic VP of Sales. Under Steve’s aggressive and charismatic leadership,

Parametric grew very fast, went public in 1990, and ultimately reached a

peak market capitalization of approximately $8 billion as the company

became the dominant provider of mechanical CAD software in the market-

place. For many years now, Parametric’s ProEngineer products have been

the standard for mechanical design engineers, and businesses and

consumers around the world have been relying on machines and other

products that were designed using Parametric software.

Combinet

ISDN was a bad word amongst investors when Tom Williams came confi-

dently into the DFJ offices to pitch his company, Combinet. He came in

with only his energy and a slide presentation. When asked for his business

plan, he pointed to the slides and said, “that’s it.“ His ISDN modems

enabled faster remote-access networking. By targeting the small business

users, Combinet allowed workers to telecommute, unleashing increased

productivity around the globe. The company took off like a rocket, and just

as Tom was demonstrating that ISDN bit rates would enable video telecon-

ferencing, he got a call from Cisco, promising an enormous order. Once the

Cisco team realized that they would be beholden to Combinet among small

business customers, they made an offer to buy Combinet for $114 million.

Tom then joined Cisco and continued to drive the business. Tom has been

an avid supporter of DFJ ever since, as a limited partner, an outside board

member, and a serial entrepreneur.

Draper Fisher Jurvetson

Draper FisherCelebrating 20 Years of Ven

her JurvetsonVenture Capital Excellence

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Front Row: Jennifer Fonstad, Tim Draper, Emily Melton, Joshua Raffaelli, Shelley Zhuang, Ellen Levy

Middle Row: Raj Atluru, Josh Stein, Mohan Lakhamraju, Warren Packard, Mark Greenstein, Andreas Stavropoulos

Back Row: Steve Jurvetson, John Fisher

About Draper Fisher Jurvetson

Draper Fisher Jurvetson is a premier global venture capital firm. In an industry wheremost firms remain provincial, DFJ has ventured beyond Silicon Valley to spread venturecapital to entrepreneurs around the world. Through our 20-year life, we have pioneeredthe affiliate model, and we also were the first venture capital firm to advertise, the first tocreate a venture capital offering for the non-accredited individual investor, and the firstmajor Silicon Valley firm to set up a global joint venture. At Draper Fisher Jurvetson, likethose entrepreneurs we serve, we are willing to take risks to accomplish our mission.

History

The Draper name is well known in the venture capital industry. General William H. Draper Jr.became the first professional West Coast venture capitalist when he founded Draper, Gaither &Anderson in 1958. Formerly Undersecretary of the Army, General Draper was responsible for eco-nomic reconstruction of Germany and Japan under the Marshall Plan. His son, William H. DraperIII, has a long history in the venture capital business. In 1962, with Partner Franklin "Pitch"Johnson, he started Draper & Johnson Investment Company. In 1965, he founded Sutter HillVentures which he managed with great success until 1981 when he was appointed Chairman of theU.S. Export-Import Bank. In 1995, he returned to venture capital by founding Draper International,concentrating on venture investments in India.

In 1985, Tim Draper left Alex. Brown & Sons, where he and John Fisher were office mates, tobecome the third generation of venture capitalists in his family with the formation of DraperAssociates. Tim set the tone for all of the subsequent funds with his focus on identifying outstand-ing teams of entrepreneurs setting out to change the world. Among the winners in this fund wereParametric Technology Corporation (PMTC), the first industrial-strength Computer Aided Designsoftware package to leverage the client-server era, and Digidesign (which went public and waslater acquired by AVID), the longstanding leader in digital editing tools for musicians.

Building on the momentum of his first fund, Tim set out to raise a larger fund and identify a part-ner with whom to team. In 1991, Tim brought his erstwhile office mate, John Fisher, on board tolaunch Draper Associates II, and a remarkable partnership was born. Over the next three years, theduo made numerous successful investments, including Medior (acquired by AOL), Combinet(acquired by CSCO), Cybermedia (CYBR), Software Quality Automation (which went public andlater was acquired by RATL, which was in turn acquired by IBM), Convoy (acquired by NEONwhich then was acquired by SY) and T/Maker (sold for cash).

In late 1994, Tim and John received a thought provoking letter in the mail from Steve Jurvetson, asecond year business school student at Stanford. Intrigued by the energy and intellect conveyed inthe letter, the pair invited Steve in for a conversation. Within minutes of meeting Steve, Tim andJohn realized they had found their next partner - a serious technologist who would help round out

the team as they set out to raise Draper Fisher Associates III. During his first year at the firm, Stevehelped land Four11 (acquired by YHOO) and Hotmail (acquired by MSFT), and subsequently hewas made a partner in the firm. Beyond these two investments, the trio also backed a number ofother significant software ventures in Fund III, including Interwoven (IWOV), Tumbleweed(TMWD), RightPoint Software (acquired by EPNY which then was acquired by SSAG), andWebline Communications (acquired by CSCO).

In 1997, with the Internet-focused Fund III showing considerable promise, the trio of investorscontinued to grow the firm after raising Draper Fisher Associates Fund IV. Out of StanfordBusiness School they hired Warren Packard, who had been through the DFJ office the prior yearpitching his start-up, Angara Database Systems, which was later acquired by Personify. Warrenhad previous venture capital experience working at Institutional Venture Partners and productdesign experience at Baxter.

At the same time, the firm hired Jennifer Fonstad from the Kauffman Fellows Program. Jenniferhad recently graduated from Harvard Business School and had worked previously at Bain &Company.

Together, Warren and Jennifer added horsepower to the growing firm, leading investments in suchstandouts as United Online (UNTD), Direct Hit Technologies (acquired by ASKJ), and DigitalImpact (which went public and was later acquired by ACXM). Draper Fisher Associates Fund IValso included GoTo.com/Overture Services (which went public and was later acquired by YHOO),Tradex (acquired by ARBA), C2B Technologies (acquired by INKT which then was acquired byYHOO), Fogdog Sports (went public and was later acquired by GSIC), Selectica (SLTC), KanaCommunications (KANA) and Netmind (acquired by PUMA which then was acquired by SYNC).

In 1999, DFJ added a three-degree graduate from Harvard University, Andreas Stavropoulos, whopreviously worked for Cornerstone Research and McKinsey & Co. Andreas led investments inEpocrates and Everdream, both of which are making excellent progress for Draper FisherJurvetson Fund V. Fund V has also benefited from the IPOs and subsequent distributions of WitCapital (later became SNDV and was acquired by Charles Schwab) and the previously mentionedUnited Online, as well as the acquisition of Cyras by Ciena (CIEN).

In that same year, Mark Greenstein joined DFJ as CFO to manage the expanding backroom oper-ations of the firm. Mark brought extensive experience from nearly 20 years as a Senior Managerwith Deloitte & Touche and as a Partner in charge of the Palo Alto office of a regional firm startedby his father. The relationship between the firm and Mark is an extension of one which dates backto the 1950s, when Mark's father Morey first met Tim Draper's grandfather while working on theaudit of Draper, Gaither & Anderson.

The following year, after the partnership raised Draper Fisher Jurvetson VI, the firm brought onRaj Atluru, a three-degree graduate from Stanford University who worked previously as aninvestment banker for CSFB and a venture capitalist at TL Ventures outside of Philadelphia. Raj'sbackground in both civil and environmental engineering brought significant value to the firm, andRaj has led DFJ Fund VIII’s initiatives in the cleantech and energy technology arenas.

One of Raj's first investments while at DFJ was in ViaFone, a software company enabling an arrayof mobile applications for enterprise customers, which was eventually acquired by ExtendedSystems (XTND). One of ViaFone's founders was Josh Stein, a Stanford MBA with consulting expe-rience at BCG and prior industry experience at NetObjects and Microsoft. After ViaFone wasacquired, Josh spent the next year as an executive at another wireless startup before being select-ed for a fellowship by the Kauffman Foundation. Josh joined DFJ in 2004, was promoted to direc-tor in 2005, and has been leading DFJ Fund VIII’s initiatives in the open source software market,as well as joining other partners in investing in next generation Internet initiatives.

Over the past twenty years, DFJ has been proud to back approximately 300 teams who haveshunned the traditional path and set out to change the world through their entrepreneurial ven-tures. At DFJ, we recognize and salute these riskmasters, because it is these teams who pursue theirvisions, overcoming numerous challenges, to bring us new products and services that make all ofour lives more rewarding.

As we reflect back on all the progress and accomplishments of the past twenty years, we can't helpbut think what the next twenty years will bring us. Advances in information technologies, life sci-ence technologies, nanotechnologies, clean energy technologies and process technologies are cer-tain to be abundant and significantly impact the way that consumers live and corporations con-duct business. We look forward to the challenge of realizing this exciting future. We look forwardto working with you in actively creating this future. We look forward to the next twenty years.

What is Viral Marketing?

By Steve Jurvetson

May 1, 2000

The "viral marketing" meme is hitting us from all directions. Hardly a business plan comesthrough Draper Fisher Jurvetson's door without some mention of a viral marketing strategy", notto mention a few books being written on the topic.

So what is viral marketing? In 1997, when DFJ first coined the term in a Netscape newsletter arti-cle by Draper and Jurvetson, we used several examples to illustrate the phenomenon, withoutdefining it more precisely than "network-enhanced word of mouth." Its original inspiration camefrom the pattern of adoption of Hotmail beginning with its launch in 1996. Tim Draper persuadedthe company to include a promotional pitch for its Web-based email with a clickable URL in everyoutbound message sent by a Hotmail user. Therein lay one of the critical elements of viral market-ing: every customer becomes an involuntary salesperson simply by using the product.

Viral marketing is more powerful than third-party advertising because it conveys an impliedendorsement from a friend. Although clearly delineated as an advertisement, the spillover market-ing benefits are powerful-much like the efficacy of radio commercials read by your favorite DJ. Therecipients of a Hotmail message learn that the product works and that their friend is a user. A key

element of consumer branding is usage affiliation: do I want to be a member of the group- in this case, myfriends-that uses the product?

We were amazed at how quickly Hotmail spread over the global network. The rapid adoption pattern wasthat of a network virus. People typically send emails to their associates and friends, both geographicallyclose and scattered around. We would notice the first user from an overseas university town, and then thenumber of subscribers from that region would rapidly proliferate. From an epidemiological perspective, itwas if Zeus sneezed over the planet.

Hotmail grew its subscriber base from zero to 12 million users in 18 months, more rapidly than any com-pany in any media in the history of the world. Fair enough, this is the Internet after all. But it did so withan advertising budget of $50,000-enough for some college newspaper ads and a billboard. Nonviral com-petitors like Juno spent $20 million on traditional marketing in the same time period with less effect.What's more, Hotmail became the largest email provider in several countries, like Sweden and India,where it had done no marketing whatsoever.

Hotmail is not an isolated incident. Hotmail and the instant messenger service ICQ had close to the samenumber of subscribers at their 6-, 9-, 12-, and 18-month stages. What do they have in common? Hotmailwas typically used as a secondary or personal account for communication to a close coterie of friends-much like ICQ's buddy lists. There appeared to be a mathematical elegance to their smooth exponentialgrowth curves.

A first-order model for viral spread is this:

cumulative users = (1+fanout) ^ cycles

In this model, the exponent cycles is the number of times the product is used in the time period sincelaunch (or frequency x time ). In the early days, Hotmail and ICQ fanned out to about two new users everymonth, and they each told two friends, and so on, and so on. By the simple model, one seed user grew to3 users at the end of the first cycle, 9 by the second, 27 by the third, and so on. Companies with much larg-er fanouts, such as the free email list managers, have grown more quickly than Hotmail. Those that haveprovided an economic incentive to spam large groups, like AllAdvantage which pays users view advertis-ing, have grown faster still, going from zero to 750,000 users in two weeks. The same formula would applyto traditional word-of-mouth marketing (like MCI Friends & Family discount plans and Tupperware par-ties), but lacking the involuntary coupling to patterns of communication, the average fanout and frequen-cy are much lower.

For a bit more accuracy, we can factor in the variables that describe the success of the recruiting messageand the retention rate as percentages:

cumulative users = [(1+fanout x conversion rate) x retention rate] ^ frequency x time

Working through the variables, the ideal viral product will be used to communicate with many people, willconvert a high percentage of them to new users, and will retain a high percentage of them. It will also beused quite frequently.

A more accurate, second-order model would include decay functions on each of the variables, reflectingnovelty and saturation effects. For example, Hotmail's variables are tapering as it reaches population sat-uration. Hotmail has blown through 100 million active users, so that there is a Hotmail account for one outof every four people on the Web worldwide. [As of 2005, Hotmail had 200 million active users.]

Given our excitement about the power of viral marketing, we have funded several companies that arepushing viral marketing in new directions, and we have suggested the addition of a viral element to anotherwise noncommunicative product. For example, NetZero's email vector of spread is very similar toHotmail's, but it has higher retention and conversion rates. Free Internet access is a more compellingproposition than free email, and so NetZero has grown faster than Hotmail in the U.S. It has also grownten times faster than America Online, becoming the second largest Internet service provider in America.

Companies as diverse as Ingenio (a marketplace for questions and answers), Skype (a free telephony serv-ice) and Homestead (personal Web pages) have found ways to amplify their growth through viral spread.Ingenio encourages users to forward a question to a friend who is likely to know the answer, and in return,the forwarder gets a cut of the lifetime economics of the new recruit. Homestead facilitates the recruitmentof coauthors to a family or group Web site, eventually bringing the community of users to Homestead.

In the e-commerce world, online retailers have gained some viral effects through gift packaging and "refera friend" programs. Mimeo.com has taken it a step further by applying viral marketing to every packageit delivers. Mimeo offers Web-initiated printing, copying, binding and delivery - a substitute for waiting inline at Kinko's. Each sender is a Mimeo user, but the multiple recipients are not so the FedEx-like packageis covered with Mimeo evangelism.

And this is just the beginning. NetMind/Palm offers a free Web-site update notification service as a pre-sales pilot for enterprise server sales. The free voicemail, fax, and telephony companies use aural market-ing to recruit new users. Even Palm users are beaming viral applications like ePocrates over their infraredports.

From a memetic engineering perspective, the idea of viral marketing spreads like an adaptive virus. Theidea itself evolves as it is retold in society.

In the venture capital business, we learn to serve entrepreneurs the way our entrepreneurs

serve their customers. Knowing that the venture capital business is local, but knowing that the

markets are global, we at Draper Fisher Jurvetson have a mission to be able to serve our entre-

preneurs locally, everywhere. As a result, we have set up a network of affiliates throughout the

world who can help us better serve our entrepreneurs. This network becomes more powerful

with each additional node, and helps with due diligence, with introductions, and with syndi-

cations. All entrepreneurs funded through our network are immediately plugged in to rolodexes

around the globe, experts in many fields, and relationships that they would take decades to

build themselves. The DFJ Network is the largest matrix of venture capital funds in the world

today, and growing.

The DFJ Network

The Draper Fisher Jurvets

vetson Affiliate Network

Looking forward to the

next 20 years

of venture capital...

and beyond.

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20 years of amazing entrepreneurs

422, Inc.4INFO, Inc.AbuzzAccess Media IncorporatedAchexAdvanced Software TechnologiesAgentis International Inc.AirPrism (GreyPrism, Inc.)Akimbo Systems, Inc. (Blue Falcon)Alert Logic, Inc.Alien SportAloha NetworksAmazing Media, Inc.Amnet/Aspect TelecomAnagran, Inc.Anuvio Technologies, Inc. (I-Drive.Com)Aperon Biosystems Corp.AppForge, Inc.Appia-Washington, LLCAppsoftAppStream, Inc.Ariat International, Inc.Arix (Arete)Arryx, Inc.ArtnetAthena Design Systems, Inc.Athenahealth, Inc.AuctionDrop, Inc. (AB Stores, Inc.)Avenue TechnologiesAviva SportBanyanBerkeley Data Systems, Inc.Best Offer.ComBinOptics CorporationBio-BottomsBlue Titan (ServiceMesh, Inc.)Blue Vector SystemsBodyFXBondMart Technologies, Inc.Bright StarBrightLink Networks, Inc.Brodia GroupC2BCalifornia Gold Catalog, Inc.Cambridge IncubatorCatalytic AntibodiesCenterpost Communications, Inc.Cerox CorporationChange.TV, Inc.Chili!SoftChroma Group, Inc.CitationClosedloop Solutions, Inc.Club One, Inc.CMI Marketing, Inc./ClubMom, Inc.CoalTek, Inc.Coatue CorporationCognigineCollabridge Technologies (ProductPop)CombinetCompassCare, Inc.ContextWeb, Inc.ConvoyCrystal Canyon Interactive, Inc.CrystalVoice Communications, Inc.CybermediaCydromeCypress ResearchCyras Systems, Inc.David SystemsDCADelivering The GoodsDifferential CorrectionsDigidesignDigital ImpactDigital Path Networks, Inc.Direct Capital Markets.Com, Inc.Direct HitDigitalWork.comDomestic AutomationDragnet Solutions, Inc.

MagnifiMailFrontier, Inc.Management Information SystemsMaptuit CorporationMarketron InternationalMarlstoneMassive, Inc.MaxPreps, Inc.Media GuarantyMediorMeetup, Inc.meVC.com, Inc.MFORMAMicrofabrica (MEMGen Corporation)Mimeo.com, Inc.MiradcoMobile 365/InphoMatch, Inc.MobileSoftMOK3Molecular Imprints, Inc.Multipoint NetworksnanoCoolers, Inc.NanoOpto CorporationNanoString Technologies, Inc.Nantero, Inc.NativelNature's Cure Inc.NeoParadigm Labs/ViVoDaNetcentivesNetChip TechnologyNetMindNeuport Acquisition LLC (Crystal)NewsNet TechnologiesNextwave DesignNexus Group, Inc.Nilford LabsNusym Technology, Inc.Objective S/WOctel CommunicationsOddpost, Inc.OnSite Systems, Inc.OnTech Delaware, Inc.OnVantage, Inc.Ooma, Inc.Open Latitude (RedKnife, Inc.)Open ObjectsOutcome Software (On Your Mind, Inc.)Panraven CorporationPantero Corp. (NEB Technologies, Inc.)PantheonPAR3ParametricPeak SystemsPetaSwitch Solutions, Inc.Pete's Brewing Co.Phosistor Technologies, Inc.Photo Access CorporationPhotonic Power SystemsPictureal Corp.Ping Identity CorporationPizzaTimePlanetUPlanitax, Inc.PLEJ, Inc.PLX TechnologyPolaris WirelessPolygenPosit Science/Neuroscience Solutions Corp.PowerAgentPractical Engineering, Inc.Praxon Preview TravelPrimet Precision Materials, Inc.ProLacta Bioscience, Inc.Pronto Networks, Inc.PS PublishingPSI StarPulse Entertainment, Inc.Qmobile Inc.Questlink SystemsQuios, Inc.

DTCD-Wave Systems Inc.E-Benefits, Inc.Eclipse InternationalEdgemailEmber CorporationEmerald City S/WemWareEnerNOC, Inc.Entegrity SolutionsENVIZEoPlex Technologies, Inc.Epocrates Inc.etang.com, Inc.EVDB, Inc.EverDreamEverest Biomedical InstrumentsEvil Twin Studios, Inc.eWingz Systems, Inc.Exemplar LogicExpress FaxFastpartsFeedBurnerFiat Lux, Inc.Financial World Mag.FlexICs, Inc.FogDog SportsFour11Game Trust, Inc.Garage.ComGlam Media, Inc.GlobalSightGolden Baseball League Gopher Grocery DeliveryGoTo.com/Overture ServicesGreatPoint Energy, Inc.GreenFuel Technologies CorporationGreenway ProductsGroup Technologies/Group LogicH5 TechnologiesHarmony SystemsHeadlight.comHome Security SystemsHomestead.com, Inc./KartoffelsoftHotmailHyperNex, Inc.I-CubeIdetekImago Scientific Instruments Corp.Impact with Quality dba IQ LabsIngenio (Keen, Inc.)InnerSell, Inc.InSpa CorporationIntegrated Media Measurement, Inc.IntelliVid CorporationIntematix CorporationInternational Power SystemsInternet Shopping NetworkInterwovenInterzineIntrusic, Inc.Ipedo, Inc.iShip.comiTvIvustechJetFax/Efax.com/J2 Global Comm.Jiwire, Inc.KANA CommunicationsKaspia SystemsKnights TechnologyKoch SystemsKonarka Technologies, Inc.Konaware, Inc.Lightwave/NeoPhotonics CorporationLipomics Technologies, Inc.Liquid Machines, Inc.LucidPort Technology, Inc.LumenosLumeta CorporationLumidigm, Inc.Luminus Devices, Inc.

RadioLANRagula Systems Development CompanyRaydiance, Inc.Real NamesRedgateReleaseNow.com Revver, Inc.RightPoint SoftwareRise TechnologyRoving Planet, Inc.S.E.T. SabaSaberSafeviewSaltareSanta Cruz Networks (Reality Fusion)SelecticaSequenceSharpcast, Inc.Sierra SemiconductorSiimpel Corporation/SiWave, Inc.Silicon CompilersSilverpop Systems, Inc./Avienda Tech.Smith & HawkenSnocap, Inc.SocialText, Inc.Software Quality AutomationSolicore, Inc.Sonnet Financial/NewMarkets Int'lSpacebridgeSugarCRM Inc.Synthetic GenomicsT/Maker CompanyTacit Knowledge Systems, Inc.Technorati, Inc.Teeccino Caffe, Inc.TelutionTheranos/RealTime Cures, Inc.Third VoiceThree Sixty PacificTouchscapeTRADEXTroika NetworksTumbleweed CommunicationsUBmatrix, Inc.United Online (NetZero)Unity SystemsUpside Publishing Co.Upspring SoftwareValicertVelox Semiconductor CorporationViafone.comVincera SoftwareViral Media, Inc.Virgil SoftwareVirtual ComputerVis-A-VisVisto CorporationVivaldi.netViVOtech, Inc.Vizional Technologies, Inc.WaveMarket, Inc.WebFlowWebLineWeitekWheels of Zeus, Inc.WiDeFi, Inc.Winformation SoftwareWireless Inc.Wit Capital Corp./Soundview Tech.WorkExchangeWorld of Good Holding Company, Inc.X-EMI Inc.Xfire/Ultimate Arena, Inc.X-Sten Corp.Xtime, Inc.Z- OperationsZane InteractiveZARS, Inc.Z-Capital CallsZettaCore, Inc.