Finding, investing in and guiding companies begun by brilliant innovators and proven technology entrepreneurs.

Working with Clearstone requires a recognition of our dual objectives in the ecosystem of innovation. First, we strive to build and guide companies for robust financial performance. We also seek to improve and expand the pool of capable entrepreneurial talent by fostering the inception, growth, success and liquidity of technology companies that can create -- and dominate -- large market sectors through innovation and commanding business execution. Our companies in effect become schools for grooming serial entrepreneurs and managers, as well as for creating new ones. Equally, we accelerate the scope and pace of innovation by funding and guiding the vessels that deliver transformative value to markets.

We operate a continuous effort to find, invest in and guide companies begun by brilliant innovators and proven technology entrepreneurs. We put our confidence in three primary attributes:

• Solutions to real or emerging problems
• Management Teams
• Markets

When bringing a pitch for funding to Clearstone, anticipate our intense interest in these three qualities about your business. We want to see that you have a commanding understanding of the problem you solve. If you can validate your view with concurrence from a few prospective customers, even better. Then, show us how your solution maps to the problem you've described. Tell us how people handle the problem now, what you know about competitors' efforts and why you are equipped to win in the sector.

Next, tell us about your qualifications and experience relevant to success as well as those for your team. We recognize some great ideas and great companies come from people who have nothing to reference. Neophytes and newcomers can prevail and Clearstone has special assets for improving your chances if you fall in this category. If your idea is powerful but you are pitching your first company, we'll consider your plan. However, we know that prior experience building companies and delivering finished products from raw concepts that attain customer acceptance is a powerful asset. Convince us.

Last, tell us about your market as you understand it. Why will customers pay for your solution and how much? Are there any previous examples? What changed to suddenly make a problem solvable? Who else can play in the market and derail you? Who is your target customer? If you have an enterprise proposition, have you identified an executive sponsor for your purchase? Will you sell directly or through distribution? Have you investigated and codified customer requirements?

Clearstone's investment professionals are interested in and investing now in enterprise computing, wireless and optical communications, micro-processors, Internet business models, imaging and transformative infrastructure that create compelling opportunity for consumers and raise the productivity of enterprises. Today our enterprise focus is assurance and management solutions that make IT more reliable, along with integration and collaboration solutions that make enterprise information more useful. Our consumer focus is software-on-the-desktop and Internet services. In communications, we look for wireless applications and enablers for maximizing their adoption, component integration & packaging, and signal grooming & cost reductions for provisioning. We're beginning to consider data center problems and opportunities as a distinct category from the remainder of enterprise computing categories. We are deeply interested in storage solutions that make enterprise storage more transparent and useful, as well as improvements to storage scalability, security and manageability.

As we look forward to creating future companies, the investment focus we see on the horizon includes:

• Enterprise Software
  • New application models & Service Oriented Architectures (Web Services)
  • Open Source solutions
  • Web-based application delivery models, including "software as functional media"
  • Microsoft Exchange as a platform for enterprise collaboration
• Consumer
  • Broad intersection of technology & consumer activity
  • Mobile phone applications, wireless multimedia
  • Social networking applied to commerce
• Communications
  • IP Telephony
  • Seamless wireless: integration of cell & WiFi
  • Services
• Data Center
  • Virtualization & Utilization for scalability, performance

Clearstone's focus on creating great companies of lasting value motivates us to develop the best investment practices, best network assets and adaptive skills for guiding entrepreneurs to market success.