Agenda Current Status Projects People and Offices Current Status Legal Documentation Series A Preferred $2M (4 Investors at $0.5M) VC involved (suprising) More interest Valuation: $8M pre investment 1) W I Harper -- VC for Creative Labs, Commerce One; good Asia connection (added value) 2) Sunevision (Hong Kong) owned by HK property developer Raised $0.5Billion Some invested in W I Harper 3) Hong Kong based Incubator diversification of property company Hands Off 4) Powerful HK Individual well connected to China De facto China standard for state owned enterprise? Collaboration Technology Contacts through California State Agency Turned down Boston Consulting Group (like IDC Gartner) US Angel Fund (new focus IPO) -- Caltech PhD Interested in Collaboration Seed Round skipped as built on trainingsoft.com A: 6 to 9 months Most: Product Development Marketing, Business development B: $10M 1-2 years Business Model US and Pan Asia (Greater China and Japan) US -- ASP (e-training, e-learning) ASP is service provider -- all system issues taken care Customer provides teacher, content, students Service includes billing, apache, Oracle etc. Economy of Scale Corio started this (Oracle) Placeware like this Offer Palm/Regular access Hard to sell "technology" Lot of online content in US Asia -- few online content providers ASP for corporations License US Content Language Soft skills -- Management Technology Lot of English learning portals but simplistic ShangHai Company set up non Chinese 6.5M Internet enabled PC's in China 1M targeted for use -- Dell Online ICP License (Internet Content Provider License for mainland china. HK free but ICP license needed for payment) Deal with backbone providers includes difficult mechanism to collect money BtoC and BtoB (Multinational enterprises already expect to pay for training) Trying to get Ad license (for adding Training is first application What we want +++++++++++++++++++++++++++++++++++++++++++++ Content License and deliver as is (no localization) Berkeley Extension -- IT courses (no language) There is MIT Peking agreement -- presumably in distance ed Can't compete in Peking so try in Shanghai local branding Need special support (speech playback) for language Hollywood Deal End of Year on line Film Want management system Content Management System Internalization -- localize to Japanese, Chinese IMS XML payment module User Management Personalization Technology Patent -- implies matching CAI Collaboration Technology Synchronization paradigm Content Specific Technology Speech Enabled Interactivity authorware ESSENTIAL? MathML Content Localization Demo scale Matching Process Patent Strategical matching of students to classes Aimed at Synchronous learning Related to Saleh thesis Deployment Beta Sites Amend to Partnering with big names like Yahoo Some customers more willing to take risk ECRM Electronic Customer Relationship Management Growing Briefings / Business case Next generation technology high barrier to entry better user experience synchronous model has room to improve Competition WebEx look at their their technology 10 meg plugin Help Desk Meeting White board based shared display ecollege Standards T120 H323 Constraints PC Deal 3 months Jan 1 2001 B round 3-6 months Hollywood Requirements Hollywood: Peer review by fellow students myYahoo like customization Yahoo Messenger Customizer Browser Portal Technology Generalizes AOL Instant Messenger Supports Palm -- format suitabled for this Convene.com system Webct.com system better than blackboard and version 3 much improved www.fsu.com/~distance/today Macromedia expertise China Saleh Worker bees Mehmet Worker bees Peng San Jose Alex Ho Old Company Developer Denis San Jose Alex Ho Old Company Architect/Manager -- wants VP Engineering? Bruce Virginia/Shanghai Developer Can manage John Yin Hearme.com San Jose (exclusive from Denis) Architect/Developer/Manager Macromedia Expertise Wants to do day to day project management -- Consensus architecture somewhat opinionated Omer Rana Nancy McCracken Two Teams East 4 technology West 4 technology Both technology One learning content Documentation/Corporate web pages Technology Effort Initially 80-90% Content Effort Initially 10-20% Consensus Architecture/Product Spec Overall Manager Sub-manager at "other location" Content itself ? GCF IT Courses Course Management East User Management Either Learning Messenger/Portal -- needs great core Customization and Learning AI Agent -- not so critical Core Collaboration Either Builds on some GCF ideas Hard -- needs best developer Tools (includes sundry speech tools) West Use others as much as possible (systems integration) WebEx uses lipstream Hearme competes with lipstream personnel@trainingsoft.com Several positions in funded start up company Expertise needed includes Internet technology expertise such as Java Windows development Experience in Multimedia authoring useful previous industry or major university project experience Positions in Tallahassee or Silicon Valley PC Deal Need to download Java 2, Microsoft technologies Issues: Shared Display (NetMeeting VNC or custom) -- Demo doesn't matter Design of Learning "Portal" (Messenger) Support of Macromedia (Shared Display or more) Patented Matching Technology Good Description in Patent Specify characteristics of instructors (= course offerring) and students Match IMS Compliance? CoolMedia Macromedia competitor -- Macromedia has high end Low end system Portal Authoring Have Engineering prototype based on Java 1.1 Java 1.2 requires major John Yin 2 months but he doesn't think competitive with Macromedia There is a course builder (Macromedia also has) Free version of general value Enterprise edition supports TS.com system Aristotle CMI Management System -- needs IMS compliance like NPAC Course database Roll this + NPAC + IMS + Blackboard/WebCT lessons into "new course database" CoolMedia Course Builder Macromedia Authorware combines Coolmedia + Course builder 3 Month learning curve Involves Scripting Talk to RealNetworks/Macromedia Conferencing FutureLearning -- Demo Portal (Real Jukebox + Yahoo Messenger) including initial useage customization Content Manager Content FutureLearning -- Later User Learning/Useage Customization / Tutoring Authoring of Pages and integration into Modules Collaboration Backbone Tools including A/V conferencing More Content including language Staff up Agree on product development plan Architecture / Requirements Interview people Investors pay $1 per share -- employees $0.1 to $0.25 $8M valuation If succesful value goes up a factor of 10 to 25 Saleh / Mehmet $60K + TOTAL 4000 shares (vesting Issues 1000 vested after each year) Alex Ho will investigate Nancy/Omer No shares unless "worker" Consulting at $100K Omer at $60K GCF: 5% * f * 8000000 (Founders plus Ordinary) f = 30% Salary 40% Stock gives 2% or $160K initial value Salary $145K Salary differential TLH, San Jose Cost of Living differential versus market rate -- consistent Engineering in San Jose Database in TLH Revisit after staffing Fringe Benefits? Health and Dental paid (outsource as benefit) Retirement -- offer if easy by outsource JDBC compliant database Database has web pages or just "metadata"