How much will VCF typically invest in a strategic partner if it does exercise the equity option?
• VCF”s business model is to selectively negotiate an option which permits the right but not obligation to invest between $10,000 to $50,000 in an early stage (seed) company. Our initial assessment for late 2009/FY 2010 is that our investment range will likely be between $10,000 to $30,000 if VCF chooses to negotiate and subsequently exercise an equity option with a strategic partner. This will be limited to a single strategic partner that meets our criteria. Again, this will occur within the 12-18 month working evaluation period of the firms’ management and products/services. Also, this will depend on a number of factors including VCF’s operating cash flow, revenues generated from the partnership, our assessment of the start-ups chances of success and any regulatory considerations. VCF reserves the right to change these estimates without notice based on the conditions mentioned herein and our perception of the overall environment for technology firms. VCF also reserves the right to w
