Criteria

Markpoint Venture Partners considers investments opportunities that exhibit both extraordinary growth potential and the management attributes necessary to reduce the inherent risks associated with the creation of a successful commercial enterprise. In evaluating investment opportunities, Markpoint seeks opportunities meeting the below criteria:

Market. The company must be addressing a large and expanding market.

Management Team. The management team must be proven and have relevant industry experience. Preferential consideration is given to those management teams that are experienced in the entrepreneurial process and financially at risk in the venture.

Competitive Advantage. The company must be able to demonstrate that their proprietary technology gives them an unfair and sustainable competitive advantage.

Business Model. The company must have a proven business model exhibiting strong, sustainable operating margins and the ability to generate early positive cash flow.

Exit. The company must be able to show multiple and definable exit opportunities within 3-5 years.

Location. Markpoint Venture Partners prefers investing in companies located in the southwest or in the case of a syndicated deal, that the lead venture firm be located in close proximity to the company.

Stage. Markpoint Venture Partners generally focuses its investment activity on companies' first or second institutional round of financing, but we also invest in select seed and later stage opportunities.

Size. Markpoint will generally invest $250,000 to $1,000,000 of a typical $1,000,000 to $15,000,000 total round and will reserve accordingly for future rounds.

In addition to the criteria defined above, Markpoint Venture Partners considers a comprehensive range of factors in making its investment decisions including (but not limited to):

• Existing and contingent liabilities
• Prior investment and equity structure
• Future capital needs and dilution
• Valuation