TOAN Case StudyEvent Billing CompanyJake Moilanen <moilanen@gmail.com>2/26/13

Lessons Learned

1.Early Exits

2.Preferred vs. Common Shares

3.Breach of Fiduciary Duty

BACKGROUND

What I Like Investing In

1.Strong Co-Founders

2.Immediate Revenues

3.Testing and Experimenting

4.Unfair Advantage

WHAT THEY DID

MARKET VALIDATION

THE INVESTMENT

The Plan

1.White Label Freshbooks

2.Build out Product

3.Pit Gorillas Against Each Other

Acquisition

1.Gorilla Negotiations

2.The Email

3.Breach of Fiduciary Duty

4.Lawyers

SETTLEMENT

Lessons Learned1. Early Exits can be Great

1. Can have Higher IRR

2. Get Preferred Shares1. At least 1x Liquidation

Preference2. Participating is Even Better

3. Fiduciary Duty1. Get D&O Insurance

QUESTIONS

Jake Moilanenmoilanen@gmail.com