Proposal to move to a new job starting a company (Why I’m not crazy)Why leave salesforce? e I'm not learning new things at a fast rate. e Unlikely to gain significant responsibility in the next 12 - 18 months given political climate. e 5 years from now, not much different between 5 years at sfdc vs 7 -— 10 years in the same job. e My relationships there are established and unlikely to grow / expand significantly. e |'m not excited to go to work. | think about starting a company. With Steve taking over R&D, the team is in good shape to adjust to my departure. e Given org moves, | can leave salesforce now amicably without burning bridges. © @ MMM per share, I'm only leaving Il unvested stock on the table.Why start a company now? e It has always been a career goal of mine. e We are in a position financially to do it without risking the future of our family. If it doesn’t work out, In 18 - 24 months I'l still be able to leverage my salesforce and startup experience to find a job at an established company. If the economy is so bad I’m not able to find a job, | would likely have lost my salesforce job anyway. @ The software industry is going through the biggest shift I'll see in my career from on-premise systems to saas and cloud based computing. This is inevitable regardless of what the economy does in the next 2 or 3 years. This is disrupting the business of established vendors creating huge opportunity for new companies. The next oracle, salesforce, microsoft, google, ebay etc will likely be started between 2006 - 2010 The poor economy deters entrepreneurs from starting companies and existing companies from investing in new areas leaving more opportunity for those that do take the risk. Microsoft and Oracle were both started in poor economic times.Saasure ‘* Provide tools for Business and IT organizations to assure success with Saas deployments e Features © Salesforce.com “move to production” 1 Top requested feature from ClO counel 1 New AP enables outside company to build 1 Salesforce will likely take 12 - 18 months to build. © Seas security features 1 Strong authentication 1 Network acces contrals 1 Fraud detection 1 Intemal Misuse detcton 1 Malware defense 1 Cross ste sting defense 1 Cross ste request forgery defense © Monitoring and Management « Sing password sgnon 1 Perfomance monitoring and aleting 1 Esrormonilring end alerting 1 Issues esoluon management 1 SLA tracking! eporing © Optimize Saas deployments 1 Find out what users are actual using 1 Visiblyint timing of business processesSaasure Feedback e Peter Gassner © Not sure on monitoring / management features o Encouraged adding Security and Optimize features to original idea © Loves salesforce “move to production” idea @ Mike Dodd o Thinks the idea is “a B on A-F scale”. Wants to finance based on my background + idea. e Kevin Efrusy © Liked the idea but had some issues with the technical plan. Encouraged conversations with other partners @ Ping Li © Liked the idea. Encouraged ongoing convesationsFamily financing e Living Expenses (Dec 2008 — Aug 2009), Checking account $ e 18 month reserve (Oct 08-Mar 10), SIE from Savings e Tax due April 15, 2009 - $ftax due, possible refund e Finish house projects, 2009 - SI] max, from Savings e (See “budget stuff’ spreadsheet)Saasure financing eB from McKinnon e $500K from angel investors o People who had “said” they would invest m Mike Dobb , Austin Ventures m David Schelhase, Salesforce.com o People Who might invest m Peter Gassner m Parker Harris e Venture financing by August 2009 @ (See Saasure_financial_model spreadsheet for operating expenses)Venture financing © 1Q-3Q, 2008, 107 funds, $19 billion raised. They need to invest this money © Limited parnes (rch people and instiutions that give money to VCs) nave been saying that they inlend to invest in privat equity at asteady pace through the current downtum, said Jennifer Rossa, managing editor of Dow Jones Private Equily Analyst. "Many of these investors have leaned their lesson flor the venture bubble bustin 2000. Back then, many LPS stopped investing in prate equity, onl to miss out on some of the best vintage years te industry has yet produced. This time aroun, they continue to ivest, buttheyre being very careful about which strategies they investin” @ And investing they are (at a slightly slower rate) ... o“ In Q3, 2008, ... Software accounted for the bulk of investment with $1.15 billion invested in 125 deals, down 13% from the $1.32 billion put to work in 149 similar deals during the same period last year’Scenario 1, unable to attract investment e Spend (from savings) funding saasure for 6 months. e Build prototype, talk to potential customers etc e Unable to raise funding e Outcome o Find a new job in July / August. Possibly return to salesforceScenario 2, funding in July e Spend (from savings) funding saasure for 6 months. e Build prototype, talk to potential customers etc e Raise 5 million in funding by July e Outcome o Enough funding for 2 - 3 years of operation. Approximate salary, SIIScenario 3, acquisition e Raise 5 million in funding by July e Break even in 2 - 3 years e Operate company for 3 - 5 years e Outcome © Sell company for $10 - $20 million in 3 - 5 years.Scenario 4 e Raise 5 million in funding by July e Break even in 2 - 3 years e Operate company for 5 - 10 years e Outcome o Operate profitable company for 5 - 10 years. Acquisition or IPO at much higher value than 3 - 5 year acquisition ($50 - $100 million).Milestones e Incorporate Saasure by Feb 1, 2009 e First employee and group health plan by July 1, 2009 e Venture financing by August 2009 (funding operations for 2 - 3 years) eo $MM salary by Dec 1, 2009