ࡱ> Root Entry F n?(WordDocumentCE:CompObjjSummaryInformation( &['()*+,-./012<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ\]^_`abcdefghijklRoot Entry F n`xA(WordDocumentCEoCompObjjSummaryInformation( & !"#$%3'()*+,-./012<456789:;m=>?@ABCDEFGHIJKLMNOPQRSTUVWXY\]^_`abwlnpqrstuv[xyz{|}~kܥhW 4e 2Sjj$$$$$%:$%%%%&%1A&&&&&&&&T&V&V&V&?&),*2X2A,$&&&&&, &$$&& & & && $&$&T&W֓'$"$$$$$&T& &4 &August 21, 1999 To the Investors and other insiders of the Open Monitor concept (Ridgeware, Inc.): We wish to thank those who generously committed personal funds toward the formation of the new corporation. We also wish to thank all of you for your c5@Ҿ}@@H^_@^("+ ՜.+,0HP\dl t| z August 21, 1999 FMicrosoft Word Document MSWordDocWord.Document.69qOh+'0 , T ` l xAugust 21, 1999Ridgeware, Inc. 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Following the verbal commitment for the remaining portion of the $100k angel round on August 4th, we made a prudent decision to scrutinize our business concept and make dead sure we could give you all a great return on your investment. We conducted an exhaustive search for any additional competitors which were not known when we finished the business plan (July 1st). We also studied known competitors in much greater detail: especially from a financial standpoint. Our exhaustive search revealed data which impacts our financial outlook. Freshwater Software Formerly considered the only direct competitor, because of their very short client list and non serious web site we did not consider them much of a threat (and still dont). However, further investigation revealed two VC firms backing them (Mayfield Fund and Mohr, Davidow Ventures). Keynote Systems, Inc. We had taken a cursory look a this company while writing the business plan, but did not consider them in the same space, since they are geared toward performance (i.e. web site speed), not global monitoring. After further analysis, we see a lot of cross over between the two. While checking performance, Keynote (and others like them) will escalate alarms for sites which dont respond at all or which are responding poorly. Furthermore, Keynote already has relationships with publications like the Wall Street Journal to publish weekly statistics on the relative performance of a list of top sites. Keynote was formed in 1996 and is backed by at least $25M in VC money. Service Metrics Unknown until we spotted their ad in one of the trade journals we would target, this is a direct competitor to Keynote (i.e. performance based) and definately. Seven Twenty Four Net Stalk Those of you who have committed angel funds toward the formation of our new corporation are probably wondering when you will be a green light to write a check. /=?Kny jb*6Zcs)*,.5=^|]g&(09COxy;@Zan)=RZ  )JJa^uhV`ghmnEF{ + = G H '(@Ars*+,-.{ 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"A@"Default Paragraph Font There are several competitors in the global monitoring category which were previously unknown to us. At least two of these are backed by a serious amount of venture capital (over $25M). What this suggests for our start-up, is that in order to compete, we would need to raise $20-30M in funds. Although we were quite confident about being able to raise $3M in venture capital, given the fact that none of the founders have raised VC money before it would be stretching it to say that we could raise $30M in any brief amount of time (like by October 1). In light of this, Joe started searching for a CEO to replace himself a few weeks ago. After some initial conversations with people with contacts at Northbridge (a leading high tech venture firm), it was clear that the company that we would be forming would be quite different that the start-up we originally envisioned. Two days ago, the founders mutually decided that we would cease progress on the Open Monitor concept. We do not view this as a sell out as much as we consider it to be a prudent decision. We feel that with each new person on the management team (and the board) comes a certain amount of risk. Since a $30M company demands a much larger company than we envisioned, the risks were stacking up against us. Although we are not sure how all of you will take this decision, we are hoping that all of you respect our prudence and do not get upset at the opportunity loss. We play to win and decidedfurther and the formation of the companyneed to raise $20-30M in funds (not $3.1M). In order to secure this level of financing and achieve such a high valuation, we would need to be much further along than we currently are with respect to the product/service. The entire management team would need to be replaced by individuals whom the VCs have worked with in the past. The only thing the founders would really be offering would have been the business idea and some help with implementation. Itbecame cwere all initially attracted toJoe decided (with consent from the other ) decision. recognize and about gambling with your moneyWe know that above and beyond anything else, your investment in our start-up was an investment in the people you know. Since we saw the near future of the company not really being in our hands, your investment would then be in hands of people that you (and we) do not even know. If the business idea was 100% novel, it might still be worth it, but since several established companies are close (and getting closer) to what we envisioned, we thought it would be prudent to let them own this market. Of course, theyre darn lucky were not going to compete with them and wont even know to thank us. ( If you have a copy of the business plan, you may either keep it (for posterity) or you may mail it back to: Joe Kuefler 44 Deerfield Lane Stow, MA 01775 Although we are not pursuing the business concept, the information in the business plan is still considered proprietary and we wish you to limit your discussions about its content to other insiders who have signed non-disclosures. If you wish to share any thoughts on this matter, please feel free to contact Joe at: 978-897-0005 Ridgeware line 978-897-0006 Ridgeware fax Joe and the rest of the team wish to thank you all for your verbal commitment to help our start-up effort. We hope that you will still consider investing in future endeavors, should we choose to pursue something which requires seed capital again. Very Sincerly, Joe W. Kuefler CEO, Ridgeware, Inc. on behalf of all the Open Monitor concept foundersSincerely 14 Red Acre Road, Stow, MA 01775 V: 978-897-0005 F: 978-897-0006completed and viewed them in each and win marketshareonis to the foundersweresince were unplugging the effort before anyone knows who we are, they t even know to thank us! Page - 2 voice $AAugust 21, 1999Ridgeware, Inc.Ridgeware, In$Vjst&'( $%osV '( !"#$%456789:I^!!!!!!!!!!!!!!!!!:dh!   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We also wish to thank all of you for your continued discretion regarding the trade secrets and proprietary information which has been disclosed to you. Following the verbal commitment for the remaining portion of the $100k angel round on August 4th, we made a prudent decision to scrutinize our business concept and make dead sure we could give you all a great return on your investment. We conducted an exhaustive search for any additional competitors which were not known when we finished the business plan (July 1st). We also studied known competitors in much greater detail: especially from a financial standpoint. Our exhaustive search revealed data which impacts our financial outlook. Freshwater Software Formerly considered the only direct competitor, because of their very short client list and non serious web site we did not consider them much of a threat (and still dont). However, further investigation revealed two VC firms backing them (Mayfield Fund and Mohr, Davidow Ventures). Keynote Systems, Inc. We had taken a cursory look a this company while writing the business plan, but did not consider them in the same space, since they are geared toward performance (i.e. web site speed), not global monitoring. After further analysis, we see a lot of cross over between the two. While checking performance, Keynote (and others like them) will escalate alarms for sites which dont respond at all or which are responding poorly. Furthermore, Keynote already has relationships with publications like the Wall Street Journal to publish weekly statistics on the relative performance of a list of top sites. Keynote was formed in 1996 and is backed by at least $25M in VC money. Service Metrics Unknown until we spotted their ad in one of the trade journals we would target, this is a direct competitor to Keynote (i.e. performance based) and definately. Seven Twenty Four Net Stalk Those of you who have committed angel funds toward the formation of our new corporation are probably wondering when you will be a green light to write a check. /=?Kny jb*6Zcs)*,.5=^|]g&(09COxy;@Zan)=RZ  )JJa^uhV`ghmnEF{ + = G H '(@Ars*+,-.{ !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!-$Vjst&'( $%os'+3r$ucuD$V5 '( !"#$%456789:I^!!!!!!!!!!!!!!!!!!!:dh!   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