1to1 VENTURE

PARTNERS
LLC

Core Requirements for Potential

Investments

1to1 Venture Partners manages a $100 • Your company's management team must
million in private equity funds. demonstrate a clear, strong vision and
excellent execution capabilities. This
We invest in early-stage companies and includes an understanding of the suppliers
people working to create new Customer and contractors who will be necessary to
Relationship Management (CRM) growth develop your business, if these
and development strategies. Our relationships are not already in place.
investment profile encompasses: • The company must have meaningful
revenue (i.e., proof of concept)
• $500,000 to $2 million investment in • We work with entrepreneurs who are fully
initial round (typically $1 million) committed to the success of their venture.
This means we evaluate the experience,
• Companies should be located between unique talent and determination of the
Boston and Washington, D.C. individuals in whom we invest. We spend
full time on our investments and expect the
• Focused on CRM or 1to1 marketing people we invest in will do the same.
strategies • We seek companies that have sustainable
competitive advantage. Companies that
www.1to1ventures.com have secured protection for their
intellectual property, or who have filed for
this protection, are preferred.
One Landmark Square • The valuation of the company must be
9th Floor reasonable.
Stamford, CT 06901 • We seek early-stage companies who are in
their first professional investment round.
We seek out companies that could profit
from our business experience. We do not
seek control of any of our investments.
Marketing 1to1® Ventures, LP may hold a
Board position to ensure our ongoing
participation in the development of the
business.
Evaluation Criteria product or service change to meet the needs
In our evaluation meetings, these are some of individual customers and how can the
of the factors that we consider in our company build a learning relationship with
prospective investments: its customers?
• Social aspects: Is the company managed or
• Uniqueness: Does a product or service owned by minorities or women? Is the
hold a unique position in its market that company located in a low or moderate-
is sustainable? income area? We actively seek companies
• Knowledge of competition: How well in underserved markets.
has the new venture positioned itself
against the position of other companies Our Review
in its target market, as well as its
position relative to indirect competitors After a business plan has been initially
who could become a threat in future, reviewed, one of our partners is assigned the
even if they are not today? responsibility of preparing an in-depth critical
• Quality of financial projections: How analysis. These in-depth analyses are presented
reasonable are the financial to the officers and executives of the fund at
projections? How did the company regularly held evaluation meetings. At this time,
arrive at a valuation? What are the we often contact the entrepreneur for more
assumptions behind its revenue and information. If we can agree upon an economic
expense projections? basis for a potential investment, we will move
• Quality of sales and marketing plan: into a more comprehensive phase of evaluation
How reasonable and well thought-out is before making the final commitment.
the sales and marketing plan?
• Quality of management: Who will run At any point in our review process we may
the business? Are key positions filled choose not to proceed with a project. The
by people who are qualified to perform acceptance of your plan does not obligate
the required duties? Do the people have Marketing 1to1â Ventures in anyway to invest
a track record of past success? Which if in any project. That can only be done after a
any key positions left unfilled? careful evaluation, likely several meetings with
• Nature of exit plan: What is the the company, and a written agreement signed
venture's exit strategy? Is the goal an by all parties.
IPO or profitable sale should an
appropriate offer be made? What exit We read every plan submitted to us. It is our
time frame is planned? policy to contact submitting parties directly to
• Overall potential for success: How tell them whether or not we want to pursue their
likely is this venture to succeed, based opportunity further.
on an assessment of a combination of
the above factors? We generally take from two to six weeks to
complete the initial business review, but often
• 1to1 attributes: Has the company
we respond in two weeks. The process of
incorporated 1to1 marketing principles
investing usually takes several months but in
into the business? Has it recognized the
unusual circumstances can take as few as a few
changes going on in every phase of
weeks. Once the term sheets are agreed, we can
business as a result of 1to1 marketing
generally make the legal process take less than
on the Web? How will it manage
four weeks.
customer relationships? How will its
Our Backgrounds
DeSantis, a major regional accounting and
consulting firm based in White Plains, New
York.

At BKSY&D, Bruce was the partner-in-

charge of the firm's business services group
and had primary oversight responsibility
for the commercial auditing practice, the
quality control department and the
consulting services group. As partner-in-
Bruce Blasnik charge of the quality control department,
Chief Financial Officer/Partner Bruce was responsible for establishing and
monitoring QC procedures and for
Bruce Blasnik is a CPA with a diversified resolving all technical matters involving
background in auditing, taxation and accounting and professional standards. As
business consulting. His experience a consulting partner, he had direct
includes servicing a wide range of growing responsibility for a wide range of
businesses in manufacturing, distribution, consulting engagements including small
real estate, financial services, retail, business systems solutions, fraud
technology and electronic commerce. investigations, litigation support and
merger and acquisition assistance.
Bruce joined the Relationship Factory, (the
precursor to Marketing 1to1® Ventures), in Bruce is active in both professional and
1999 where he worked closely with Mark community organizations. He has chaired
Ellis to identify outstanding investment committees for the New York State and
opportunities and to provide on-going Connecticut CPA Societies and is an active
operational support to the portfolio of member of the Institute of Management
early-stage companies. Bruce has taken up Accountants, where he has held the
that same role in Marketing 1to1 Ventures. positions of Chapter President, Regional
Council President and National Director.
Bruce began his career with KPMG Peat He also continues to hold numerous
Marwick's emerging businesses group as an leadership positions in local charities and
auditor and business advisor to privately- community organizations. As a
owned, pre-IPO and small public professional and community leader, Bruce
companies. He left KPMG after 3 years to has lead seminars and presented to
join a struggling manufacturer of high-end, professional and special interest groups on
computer-controlled animation equipment a wide range of accounting and general
where he was one of the key members of business issues.
the turn-around team. After successfully
implementing a new accounting and Bruce is a summa cumlaude graduate of
manufacturing control system and a major Binghamton University, where he earned a
corporate re-structuring, Bruce began his B.S. in Accounting. He is a CPA in the
own accounting and consulting firm. states of Connecticut and New York.
Several years later, he merged his growing
firm into Bennett Kielson Storch Yablon & Email Blasnik@1to1ventures.com
 money to purchase a premier
manufacturing company. He successfully
made that purchase and was able to apply
all of the skills he learned in the corporate
world to make this manufacturing company
a success.

Using his proven turnaround capabilities

Mark Ellis and keen financial instincts, Mark was the
Managing Partner Managing Director of the Relationship
Factory at Peppers and Rogers Group, the
Mark Ellis is a highly skilled entrepreneur venture capital arm of the company. The
and turnaround specialist who has Peppers and Rogers Group is the world's
produced profits from every management pre-eminent customer management
vantagepoint - sales, marketing and relationship consulting firm. The
financial. Mark served in key marketing Relationship Factory was the pre-cursor to
and top management positions at General 1to1 Venture Partners, LP.
Mills, Mattel, Ideal Toys, and the Franklin
Mint. At 1to1â Ventures, LP., he is the Mark has an MBA from the Wharton
Managing Partner of the fund, which School of Business and a BS in Business
provides financing for early-stage from the University of Minnesota.
companies.
Email Ellis@1to1ventures.com
Mark began his career at General Mills.
After a five-year stint in brand management
at General Mills, he moved into the toy
industry. Mark served as head of marketing
for boy's toys at Mattel, where he was
responsible for more than half of the
company's sales. He then moved into
general management as the International
President of Ideal Toys (a division of CBS,
Inc.). This was Mark's first major
turnaround.

After a corporate sell-off, Mark became

chief executive of the 16 European
subsidiaries of the Franklin Mint. At the
Franklin Mint, he combined his new
product skills with sophisticated use of
database-driven direct marketing to
engineer a remarkable turnaround.

True to his entrepreneurial spirit, Mark left

the corporate world and spent a year raising
 Ventures, a $100-million private equity
venture capital firm he co-founded to invest
in early-stage companies delivering CRM
tools, technologies, and implementation.
Previously, Dorf spent two decades as
founder and CEO of Dorf & Stanton
Communications, a top communications
and public relations firm. Dorf & Stanton
Bob Dorf was the nation's 8th largest independent PR
General Partner firm when Bob sold his interest in 1989. He
is a member of the Public Relations
The March 1999 Fortune magazine raved Society's honor society and a former editor
about The One to One Fieldbook, which of Marketing & Media Decisions Magazine
Bob Dorf co-authored with Don Peppers and WINS 1010 Newsradio in New York.
and Martha Rogers. "If your company is
launching a customer-focused strategy…it Bob is active on many corporate and
sets the agenda," said Fortune. Until fall charitable boards of directors, including:
2000, Dorf served as CEO of Peppers and American Cancer Society, National Income
Rogers Group, the firm he helped found Development Advisory Board,
and build to a worldwide staff of nearly Gorp.com, the leading outdoor recreation
300. In addition to his co-authorship of the website, Knoa, a developer of digital avatar
Fieldbook, he joined Peppers and Rogers in technology, Santa Barbara Technology
contributing a substantial Harvard Business Incubator, Silver Carrot, a marketing
Review article in January 1999. Mr. Dorf services company, Stamford Health
has spoken on one-to-one marketing before Foundation, part of the Stamford Health
scores of U.S. and international audiences. System, Temple Sinai, Stamford (former
He has also conducted in-depth workshops Treasurer and Executive Committee
and written dozens of published articles. member)

As recently retired founding CEO of He lives in Stamford with his wife Fran, a
Peppers and Rogers Group, the preeminent prominent novelist who has published three
CRM consulting practice, Dorf is novels in nearly a dozen languages, and
considered a leading strategist in the field Molly - a chocolate Labrador. The Dorf's
of Customer Relationship Management. magnificent daughter, Rachel, is a college
His work has helped conceive and sophomore in Boston. The family also
implement one-to-one marketing strategies enjoys spending time at their ski home in
for leading organizations ranging from the Colorado.
American Cancer Society to Jaguar Cars,
3M, Bertelsmann, Charles Schwab, Ford, Email Dorf@1to1ventures.com
Hewlett Packard, Oracle, Prudential
Securities, and-among others-his personal
favorite, Vail Resorts in Colorado.

Bob recently switched careers becoming a

General Partner in Marketing 1to1 ®
 CONTACT 1TO1 VENTURES

We welcome your inquiries regarding 1to1

Venture Partners and consideration for
investment. We will promptly review your
business plan and respond.

Business plan submission:

plans@1to1ventures.com
Richard Shapiro
Senior Associate Location
One Landmark Square
Richard joined 1to1® Ventures as a Senior 9th Floor
Associate in May 2000. Richard evaluates Stamford, CT 06901
new business opportunities and conducts Tel (203) 325-4000
competitive industry analysis, valuations,
and business model development with 1to1 For more information, see our web site at
Ventures portfolio companies. www.1to1ventures.com

Before joining 1to1 Ventures, Richard was

an equity research analyst at Putnam
Investments in the Specialty Growth
Group, which manages $80 billion of
Putnam's $400 billion under management.
Richard's focus was selecting small cap
technology stocks for Putnam's mutual
funds. He was involved with the Putnam
New Opportunities Fund, Putnam Voyager
Fund and several institutional accounts.
Richard identified and recommended
technology investments in software,
telecom, and other sectors.

Richard earned an MBA in Finance and

Marketing from Georgetown University
and has a BS in Business from the
University of Southern California, Los
Angeles.

Email Shapiro@1to1ventures.com