Confidential For Internal Use Only

CONEXIA 1

Endeavor Candidate Summary Form Candidate Profile CONEXIA S.A.

Company: Conexia Country: Argentina

Candidate Names: Luis Navas & Sebastin Letemendia

Industry: Healthcare (IT)

Year Founded: 2000 Employees: 130

Sales: US$ 5.5 million (2009) US$ 7.2 million (2010e)

Financing Stage:

Not currently seeking capital

Website & e-mail: www.conexia.com.ar; lnavas@conexia.com.ar, sletemendia@conexia.com.ar

Mission: To provide real time adjudication of patient benefits for the healthcare industry by capturing, transferring, and transforming data that in turn reduces costs, increases efficiency, and improves quality of care.

Note: Luis Navas and Sebastian Letemendia first presented at Endeavors May 2009 International Selection Panel in Miami. Luis and Sebastian have been working with Endeavor Argentina to address feedback from that panel (for more detail, see section 5).

1. THE ENTREPRENEURS AND THE IDEA

For decades Argentineans suffered under an archaic, paper-based health insurance system, enduring a tedious benefits validation process complete with long lines and inefficient paper vouchers. Seizing an opportunity to make validation electronic, in 2004 Luis Navas (53) and Sebastian Letemendia (45) bought Conexia, the information technology company that they had been managing for four years. With Conexias solution, healthcare insurance companies saw (for the first time in Argentina) the results of real-time adjudication (RTA) of benefits a process which enabled practitioners and insurance companies to share information and validate medical procedures with the simple swipe of a patients health card. Today, Conexia processes more than 1.5 million transactions per month, serving 14,000 physicians, hospitals, laboratories, and pharmacies throughout Argentina. For its

paying clients, healthcare insurers, Conexia reduces medical costs 10% by blocking uncovered practices and reduces administration costs 15% by simplifying procedures such as claims processing. Conexias service comes at the right time. The global healthcare IT market is growing at a 16.1% CAGR and is projected to reach US$53.8 billion by 2014. It is trending towards integrated information systems that bring providers, payers, and beneficiaries closer. These favorable market dynamics coupled with Luis and Sebastians international expansion plans have favorably positioned Conexia to modernize the information flow among healthcare insurers, providers, and beneficiaries throughout Latin America.

Luis and Sebastian met each other (and were introduced to Conexia) through IMPSA, a multinational industrial conglomerate. Coming from separate backgrounds Luis with a PMD from Harvard and Sebastian with an MBA from Wharton the two began to work together in 2000 when they took over leadership of IMPSAs technology incubator. Operating under the Impsat division, the incubator supported the development of start-up companies, including Conexia. As the respective CEO and CFO of the incubator, Luis and Sebastian were tasked with fixing Conexia, then in its fourth year and identified as a problem start-up. Initially, they wondered what they had gotten themselves into: the technology didn't work, customers were angry, and it was losing money.

Luis and Sebastian studied the interaction among the primary players in the industry insurers, providers, and beneficiaries and found there was an incredible amount of data, all in different formats and locations. They sought to connect the players through an integrated online network over which data could be exchanged, providing real-time information to insurers to guide managerial decisions. This in turn, allowed medical services to be authorized before they were rendered. Targeting private and public sector health insurers, the duo saw their solution could lower clients costs significantly, improve the quality and speed of care for beneficiaries, and prevent identity fraud. Despite these advantages, 2002 brought many challenges, including Argentinas economic crisis and the demise of Impsat. Although neither had any experience in healthcare, Luis and Sebastian believed in the technology and ultimately bought Conexia through a US$650,000 management buy-out in 2004.

Since 2004, with managements renewed focus on technology, human resources, and customer service, Conexia has become the benchmark in Argentina, achieving a 60% market share in the US$10 million medical transaction IT industry.

Customer identification, coverage verification, and payment now take place with the swipe of a card. Providers can access patient data and send prescriptions electronically to pharmacies, improving the quality of care. Health insurance companies enjoy reduced costs and have access to information that guides managerial decisions and facilitates preventative medicine. All of the private sector insurers have adopted it (except for one that is expected to sign within the first half of 2010). Government and union-sponsored health plans are following in their footsteps, thus securing Conexias growth in Argentina. Conexia expects to have 22 customers and annual revenues of US$7.2 million in 2010, roughly 90% of which are recurring.

Luis and Sebastian are at a critical juncture in their business: international expansion. Having established their presence in Argentina, they are ready to capitalize on opportunities throughout Latin America. Panelists at the 2009 ISP in Miami thought Conexias projected success was based too heavily on entering the US market without enough data to support this strategy. Luis and Sebastian have since conducted two market assessments with the help of a BCG consultant and MIT MBA students, and they have refocused their expansion strategy on Latin American markets, starting with Mexico. Additionally, they have

signed contracts with two new clients, representing US$840,000 in 2010 revenue, and received a Capability Maturity Model Integration Level 3 international certification from Carnegie Mellon, proving their high quality standards for software development. As Conexia begins expanding to Mexico, Luis and Sebastian would benefit from Endeavors contacts throughout Latin America, as well as continued support developing and refining their growth strategy. With over four decades of professional experience between them and a proven technology service, Luis and Sebastian are well on their way to success. For this impressive duo, a little boost from Endeavors global network could be just what the doctor ordered.

http://www.conexia.com.ar/mailto:lnavas@conexia.com.armailto:sletemendia@conexia.com.ar

Confidential For Internal Use Only

CONEXIA 2

2. THE BUSINESS

2.1: Products/Services

Conexia is a Software as a Service (SaaS) company that provides online validation of medical benefits for health insurance companies, reducing costs, increasing efficiency, and improving quality of care. Conexias solution includes a software suite, data capture points, datacenter services, hardware and communications, technical support, and training all of which it sells to healthcare insurance companies, who then provide Conexias tools to end users like doctors and patients. The software suite is comprised of data capture points, a system administration module, a medical audit, a contact center, and a

management information module.

Data capture points: Conexia installs data capture points at the providers offices and integrates with the ERP systems of high

volume providers (hospitals, laboratories, and certain pharmacies) to avoid duplication of data entry. The integration occurs through web services or a system of directories. It provides POS terminals, similar to the ones used in stores to validate credit card transactions. Conexia also offers a PC-based solution; in this case, providers connect via a browser, the web page guides data entry and (as with ERP integration), peripherals (magnetic band and barcode readers provided and maintained by Conexia) speed up the input of data. Additionally, an Interactive Voice Response (IVR) system allows a regular telephone to act as a data capture point and is used for providers with less volume or as a backup method. Lastly, cell phones provide a mobile data capture point. The system administration module is the backbone of Conexias solution. The insurer enters data for its beneficiaries, providers,

plans, medicines, and pathologies and establishes the business rules, including both administrative and medical, used to approve or invalidate a transaction. The business rules are the most important element of the service and depend on the specific challenges and needs of each client. Transactions that are not approved (typically 10-15%) may be sent to an audit team who, using the medical audit module, authorizes, rejects, refers, or gathers more information. For those beneficiaries who wish to interact directly with their providers, Conexia offers a contact center system, which organizes incoming calls and enables operators to access information from the databases. It also provides a management information module through a customized dashboard.

Technical support, through third-party employees, includes a 24-7 help desk and field technicians to provide support to practitioners. Lastly, onsite training is provided to educate end users (e.g. receptionists, nurses, doctors, technicians).

Conexia is ISO 9001:2000 and Capability Maturity Model Integration (CMMI) Level 3 certified. ISO 9001:2000 specifies requirements for a quality management system. CMMI Level 3 is a service mark owned by Carnegie Mellon University that signifies high quality standards for the software development process. Less than 20 companies in Argentina have this mark. Conexias service provides advantages to insurers, providers and beneficiaries: Benefits to insurers:

Decreases medical costs by 10% by blocking uncovered practices and decreases administration costs by 15% by simplifying processes through technology. Medical costs typically make up 85% of health insurers costs while administration costs make up the other 15%. Thus the service reduces total costs by approximately 11%.

Reduces fraud and abuse with identity verification Provides online audits to correct mistakes and deviations Generates statistics for preventative medicine

Benefits to providers:

Ensures the identities of patients Reduces offline processes of medical care (80% are processed online) Ensures certainty and speed of collection by eliminating claims processing

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CONEXIA 3

Benefits to beneficiaries:

Eliminates the need for vouchers Eliminates long waits for confirmations Offers precision in payments and costs

Pricing Model:

Conexia prices its services based on value not costs. It estimates how much a customer will save based on the 11% figure explained above and aims to capture one-third of that, enabling it to make the most money from the clients it provides the greatest value. Conexia is pricing new contracts in the range of 2-3 Argentine pesos (US$0.55-0.80) per beneficiary per month. The contracts are typically for 5 years and renegotiated at conclusion.

2.2: Operating model

The data flow of Conexias service is illustrated in the diagram below. The first step in the validation process is data collection. When seeking medical services, a beneficiary presents their health card containing relevant patient and provider information which is collected through data capture points. The data is sent to Conexia's servers, which validate the beneficiarys identity, summarize their diagnoses and procedures, and sends it to the Insurers database. Based on business rules and patient information stored in the database, Conexia validates and authorizes the procedures. Immediately the provider can access this information and provides care to the beneficiary. Conexia manages all activity and can access each customers database through a unified interface.

Implementation:

Implementing a new Conexia system is similar to implementing an ERP system. It involves three phases over roughly five months: 1. Requirement & Analysis (2 months): Conexia works with the client to understand their specific needs. 2. Development & Testing (2 months): Conexia writes the appropriate code for the client, including the business rules. 3. Field Implementation (1 months): Conexia puts the system in place, installs data capture points at practitioners offices

(which can range from 100 to more than 2,000 locations), and issues cards. Conexia charges a signing fee plus additional fees at other stages. By month six, a new implementation breaks even. Upon completion, Conexias solution evolves with the client, who can experiment with and amend business rules according to user behavior. While the business rules are customized, the basic setup of gathering data, storing information on servers, and issuing cards is fairly standard for each customer. The greatest challenge of implementation is motivating professionals to change their behavior, and implementation includes different incentive strategies depending on the client, including increasing compensation. Sales Cycle:

Conexia has 5 salespeople in Argentina who sell to an insurers CEO, CFO, or Medical Director. Because implementing a Conexia solution means changing a clients entire work flow, the sales cycle can be quite long. On average it takes 9 months to sign a contract, but Conexia has worked with clients for anywhere from a couple of months to seven years. Also, another hurdle leading to lengthy sales cycles particularly in the state sector is that not every insurer is keen on transparency and effective administration.

Beneficiary

pays co-

payment (if

needed)

Beneficiary

presents cardPractitioner

requests

identity

Conexia

validates &

authorizes

procedures

Real time

information

Web Server

Business

Rules

DatabaseDatabase

Database

Database

Cell Phone

Contact Center

IVR

POS

Internet

ERP Integration

Health Cards

Beneficiaries

Loads Diagnosis/

Procedures

Beneficiary

pays co-

payment (if

needed)

Beneficiary

presents cardPractitioner

requests

identity

Conexia

validates &

authorizes

procedures

Real time

information

Web Server

Business

Rules

DatabaseDatabase

Database

Database

Cell Phone

Contact Center

IVR

POS

Internet

ERP Integration

Health Cards

Beneficiaries

Beneficiary

pays co-

payment (if

needed)

Beneficiary

presents cardPractitioner

requests

identity

Conexia

validates &

authorizes

procedures

Real time

information

Web Server

Business

Rules

DatabaseDatabase

Database

Database

Cell Phone

Contact Center

IVR

POS

Internet

ERP Integration

Health Cards

Beneficiaries

Loads Diagnosis/

Procedures

Payment ($)

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CONEXIA 4

R&D:

Conexia employs 15 people in its R&D department. In October 2008, after more than two years of development, it rolled out a completely new platform on Java. (It was previously on Visual Basic). Now, the R&D department is focused on developing new modules, including a new dashboard, an application to automatically monitor the networks of all its clients, a new web interface with improved usability, and modules for monitoring patients with chronic diseases such as diabetes. 2.3: Market

Worldwide: The worldwide market for healthcare IT solutions is growing at a rapid rate. According to a new report by

MarketsandMarkets, it is estimated to be worth $53.8 billion by 2014, growing at a CAGR of 16.1% from 2009 to 2014. The market is moving towards integrated information systems that bring providers, payers and consumers closer, and low market penetration offers significant opportunities to healthcare IT providers. Additionally, an ageing population, a proliferation of health insurance providers, and a growing awareness among healthcare consumers are fostering a demand for consumer-centric systems designs. The market is currently very fragmented with most players offering highly integrated systems. Argentina: According to Conexias internal estimates, the potential healthcare IT market in Argentina is valued at US$108 million,

of which US$20 million is electronic transactions (versus paper-based). The electronic transaction market is split roughly equally into pharmacy and medical, and Conexia has a 60% share of the medical transaction market. The majority of electronic transactions for the pharmacy market are through Siemens, though Conexia has a 10% share. Conexia estimates only 10% of health insurers have implemented IT solutions. The companys growth strategy in Argentina is up-selling existing customers and expanding market share to the large paper-based insurance market as it transitions to electronic validation. Mexico: Mexico is attractive as it has one of the highest income levels in Latin America, spends roughly US$600 per capita on

healthcare, and services 110 billion people. Healthcare spending is expected to rise from US$61.4 billion in 2008 to US$92.6 billion in 2014, representing a CAGR of 5.4% in local currency terms and 11% in US dollar terms. Surprisingly, Mexicos public healthcare system is inefficient, ineffective and poorly funded, ranking 108 out of 191 countries on the World Health Organization composite index. Mexicans are so dissatisfied with the state of public care that around 55% of healthcare spending is out-of-pocket for private care, even though private payers are still nascent. The government has introduced reform efforts that extend coverage of medical benefits yet fail to address the underlying structural problems. Currently, no IT solution exists and insurance companies still have paper-based, manual validation procedures. With government healthcare suffering and an underdeveloped but growing private sector, Conexia would be a natural fit for this market. Conexia could take advantage of the upheaval in the public system and introduce its product, as well as introduce a new paradigm to the private market while it is still young.

2.4: Clients

Conexias clients are public, private and union-based health insurance companies. Since many health insurers in Argentina are state-run, the public sector makes up 50% of Conexias client base. In total, Conexia serves eight million beneficiaries, processing more than 1.5 million transactions per month from 14,000 physicians, hospitals, laboratories, and pharmacies. Conexias target customer is one with over 50,000 beneficiaries and a mostly closed provider network. Conexia expects to add six clients this year, and by 2013, it will be working with most of the 25 provincial health providers in Argentina and three new clients in Mexico and Colombia.

Clients Public Sector Private Sector Union Based

Number of Clients 5 8 3

Specific Clients

2.5: Competitors

In Argentina, Conexia primarily faces competition from subsidiaries of large information technology companies. According to internal company estimates, Conexias 60% market share makes it the largest player in the medical electronic transactions sector in Argentina. The companys three primary competitors are listed in the chart below. Siemens, the strongest competitor, is focused on the pharmacy electronics transactions market and has kept out of the medical market. Since Conexia has entered the market, the

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CONEXIA 5

annual sales of their competitors have not changed while Conexias have gone from US$1 million in 2004 to US$5.5 million in 2009. Conexia is addressing a need that until now hasnt been addressed by competitors, as they have developed the services

not only to capture data, but also to process data.

Name Estimated

Annual Sales

Electronic Transaction

Market Share

Number of Customers

Strengths Weaknesses

Siemens Itron Business Services

US$6 million 60% pharmacy

market 1

Financial & Tech Resources,

Contacts

One large pharmaceutical customer makes up all of its

sales, doesnt offer a comprehensive solution

Prominente / Traditum

(Grupo Roggio) US$2.6 million

26% medical market

5 Financial & Tech

Resources, Contacts

Lacking specialization and focus in the healthcare sector

Tecnet (Grupo Ibermatica)

US$0.7 million 7% medical

market 3

Financial & Tech Resources,

Contacts

Lacking specialization and focus in the healthcare sector

2.6: Competitive advantages

Established track record: After 12 years in the industry, Conexia has a well-developed, niche-specific technology

(benefits management) that is attractive to health insurance providers. Luis and Sebastian have worked with over 15 health insurance companies and are quite familiar with the specific and unique needs of the industry. They have developed a deep understanding of their clients businesses and how their benefits management services can reduce costs, provide information needed to make important managerial decisions, and improve quality of care. As the market leader, Conexia is setting the standard for the industry, allowing it to have increased pricing power and higher margins.

Competitive value pricing: Conexias service offering is competitively priced in Argentina, built to allow for consistent

profits to Conexia and maximum value to its customers. Recurring revenue made up 90% of Conexias 2009 revenues. In the Latin American market, Conexias prices will be very competitive as Luis and Sebastian are able to capitalize on lower operational costs in Argentina.

Entrenched technology: Adopting a system like Conexias involves a significant upfront investment of time and money.

Data capture points must be added to each individual providers office, and providers are trained and become accustomed to using the system. This substantial initial investment makes Conexia a fairly entrenched technology, and providers have a strong incentive to stay with Conexia. Thus far, Conexia has not lost a single client to a competitor.

Certification: Unlike its competitors, Conexia is ISO 9001:2000 and CMMI Level 3 certified. These international

certifications will help Conexia establish credibility as it looks to gain new clients in Argentina and in new markets.

2.7: Challenges

International expansion: Currently, Conexia does not have a presence outside of Argentina. It has one full-time sales

person in Mexico developing leads, and a few others are splitting their time between Mexico and Argentina. Once Conexia has its first client, it can begin establishing its track record in Mexico; however, without that initial traction, it may prove to be a longer process than anticipated.

Exposure to inflation fluctuations: Conexias revenue is based on five-year contracts negotiated in Argentine pesos,

and any renegotiation of the agreed-upon price extends over a long period of time. In the case of inflation, Conexia will receive less money from its clients while Conexias costs will remain the same. This imbalance could potentially threaten Conexias financial stability or, at the very least, impact investments in R&D.

Human resources: As it grows, the company must attract and retain talented new employees, particularly sales people,

in international markets that they are not familiar with.

Potentially long sales cycles: The flip side of Conexias entrenched technology is that Conexia may struggle to

convince new clients to adopt their service. Additionally, a client must be willing to change its entire work flow and reengineer its core procedures upon implementation, which is not easily done. Knowing the entrenched nature of existing technologies and the fundamental changes an insurance company must make to its work flow, Conexia will need to plan for potentially long and tedious sales cycles as it tackles new markets.

2.8: Future strategy

Conexia expects to have 22 customers and annual revenues of US$7.2 million by 2010, and approximately 60 customers and annual revenues of US$20 million by 2013. To accomplish these goals, Luis and Sebastian have developed the following strategy:

Expand throughout Latin America: Luis and Sebastian intend to expand into Latin American markets, focusing first on

Mexico, and replicate the success they have accomplished in Argentina. Conexias value-add in Latin America is two-fold: bring an IT solution to an archaic, paper-based industry, and allow for real-time information flow. To that end, they have conducted substantial market research for Mexico and have independent agents in Mexico generating contacts, predominantly in the private sector. Once a contract is in place, Conexia will set up a local operation, structured as an independent subsidiary. Lead times can be quite long, but Conexia expects revenues from Mexico by 2011. Mexicos

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CONEXIA 6

failing healthcare system and rising private sector make this market a promising first step. To facilitate its international expansion, Conexia is also setting up an international marketing department to strengthen its internet presence. Beyond Mexico, Conexia is researching Colombia as potential next target market. After expanding to Mexico and Colombia, the entrepreneurs plan to acquire an existing competitor in Brazil. The Brazilian market is quite developed, although with a slightly different model than Argentinas. They previously operated Conexia in Brazil when it was still part of Impsat, and although this operation closed, the entrepreneurs have a very good understanding of the market.

Innovate: In the near future, data collection will take place entirely over the Internet and/or through web services. As

Conexia and its competitors move in this direction, Conexias ability to cater its solution to clients requirements will be paramount. To continue their success, Luis and Sebastian realize they must innovate and add to their existing products and services and up-sell existing clients. An important part of these efforts will be directed towards the financial and payment side of the business, such as allowing beneficiaries to pay co-pays with their health cards. They will continue to invest time and capital in ongoing research and development and explore how Conexia can cater to a more diverse customer base to create greater value, new revenue sources, and stronger barriers to entry.

Develop stronger information management systems: As Conexia grows, the company will focus more on the quality

and integrity of its technology, specifically its servers and software offerings, so that it can scale while maintaining security and quality of service.

3. THE ORGANIZATION

3.1: Organizational chart

Conexia employes 130 people in Argentina. In the diagram below, the oval represents the factory where client value is created. The five teams each have between 10 to 20 employees and are responsible for up to four clients. These groups can modify the cosmetic appearance of the software suite for clients but cannot change the core coding. The Product team, which is 10 to 15 people, works on the core product code.

COO

Sebastian Letemendia

Commercial

Director

Alfredo Semeniuk

Team

leader

1

Sales

Mariela Blanc

Product

Guillermo Fernandez

Programming

& Analysis

CEO

Luis Navas

HR

Virgina Carena

Project

Leader

Account

Execs

Client

Support

Quality

Emilio Etlis

Project Management

Dino Ronconi

Administration

Silvena Lema

Team

leader

2

Team

leader

3

Team

leader

4

Team

leader

5

3.2: Facilities and other key assets

Conexia is based in Buenos Aires and has additional offices in Neuqun and Resistencia.

3.3: Ownership structure

Shareholder name Percent owned (%) Role in company

Luis Navas 81 CEO

Sebastian Letemendia 19 COO

Once Impsat filed for Chapter 11 in 2002, Luis and Sebastian lacked confidence that Conexia would survive under the umbrella of Impsat. They saw great potential in the service and knew their leadership would be vital to Conexias success. Together, they bought the company for US$650,000. Current shares reflect each entrepreneurs initial investment.

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CONEXIA 7

4. THE ENTREPRENEURS

4.1: Entrepreneurs strengths

Complementary team: Luis and Sebastian have incredible qualifications and form an excellent team. Luis brings

managerial expertise, lofty ideas, and executive presence while Sebastian brings financial skills, practicality, and the patience needed to connect with prospective clients. As true entrepreneurs, they share a common vision of where they want to take Conexia and have the know-how to get there.

Commitment: Luis and Sebastian have proactively learned more about the industry to create an international expansion

strategy, illustrating their commitment to increasing their knowledge and tailoring their technology to the ever evolving healthcare needs of countries around the globe. They regularly attend conferences to stay on top of industry news, technology, and key players. They have a vision for the future and work hard to understand how their vision will fit into an existing, complex system.

International experience: As Luis and Sebastian expand Conexia globally, they can draw on their extensive international

experience. Luis spent six years in Beijing, three in Switzerland, three in Hong Kong, and studied in the US. Sebastian studied, lived and worked for three years in the US and has traveled extensively.

Pragmatism: When Luis and Sebastian speak about Conexias past and its future, they articulate how every component

of the business will come together and function in an ever-changing industry. They realistically acknowledge that challenges will arise and explain how they will start small, test new markets, and innovate throughout the entire process. Luis and Sebastian are certainly not novice entrepreneurs they are seasoned corporate executives, familiar with the business world, and whose vision, actions, and words invoke a unique level of confidence.

4.2: Entrepreneurs weaknesses

IT and healthcare training: Luis has an engineering background, while Sebastian has a financial and managerial

background. They are not information technology specialists nor are they healthcare specialists. They have acquired an extensive knowledge of the industry (largely through self-education), but as they move forward, they must seek expertise and guidance from IT and healthcare professionals to ensure that their solution addresses the needs and limitations that exist within the industry.

5. FIT WITH ENDEAVOR

Luis and Sebastian are experienced and qualified entrepreneurs who have made their mark on the healthcare industry in Argentina and firmly believe in the value their service could bring to healthcare systems around the world. Their business is at a crit ical inflection point as they look to expand throughout Latin America, develop the technology needed to cater to new markets, and withstand foreign competition. Their strong business backgrounds, ability to take strategic risks, and dedication to their product position them for success. The entrepreneurs have demonstrated they are willing and eager to take advice, and they would benefit greatly from Endeavors continued assistance in building the contacts and strategy necessary for expansion.

Feedback from 2009 ISP panelists Milestones

Define future strategy based on significant market research

Luis and Sebastian have worked with Endeavor Argentina, a BCG consultant, and a group of MIT MBA students to evaluate the opportunities and challenges in entering the Latin America and US market.

Using this work, the entrepreneurs have clearly defined the companys future strategy.

Align market entry strategy with future strategy

Based on research and meetings with Endeavor mentors, Conexia will enter the Latin America market first, since the need for their system is greater and less complicated than the US.

Improve sales pitch Luis and Sebastian hired a Marketing Manager through Endeavor to develop more professional marketing material.

Additionally, Conexia is reorganizing its organizational structure to prepare for expansion. The entrepreneurs created an international marketing department staffed with two Endeavor-sourced employees in the Commercial department, a first organizational step towards international operations.

5.1: How Endeavor could help

Growth strategy: Endeavor has been an invaluable resource over the past 10 months as Luis and Sebastian reevaluated

their growth strategy. They could benefit from Endeavors continued help as they explore other markets in Latin America including Colombia and Brazil.

Finding key employees: Endeavor introduced Luis and Sebastian to their two new international marketing employees.

Without Endeavor, they would never have been able to meet these individuals, and they could benefit from Endeavors network as they look to hire talented salespeople abroad.

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CONEXIA 8

Business strategy development: Endeavor could provide experts in the healthcare industry who can help Luis and

Sebastian refine their business strategy, including further developing their approach in new markets. Also, as they do not have outside directors, having access to mentors who can examine their business and ask tough questions would be very valuable.

5.2: Potential Red Flags

Unpredictable business environment in Argentina: Conducting business in Argentina can be unpredictable. Half of

Conexias clients are in the public sector, exposing them to government corruption and deferred collections.

6. INTERVIEW HISTORY

Conexia participated in the Miami ISP (May 2009).

Category Name Position and Company

Nominator Alejandro Gorodisch Board Member, Endeavor Argentina

2nd

Opinion Reviewers: Jorge Grad Former Business Manager, IBM Latin America

Pablo Antonini Partner, CAP Ventures

Gerardo Garbulsky Partner and Managing Director, BCG

Ezequiel Glinsky Technology Manager, Microsoft

Alejandro Mashad MD, Endeavor Argentina

Financial Reviewer: Liliana Ferreiro Ex-CFO HoldInvest

Martin Sommer Ex-Principal Mc Kinsey

Final Reviewer: Gaia De Dominicis MD Endeavor Colombia

Local Panelists

(March 2009): Santiago Bilinkis

Cofounder and CEO, Officenet; Endeavor Entrepreneur

Alfredo Nieto Former Director, Coca Cola Company

Pablo Saubidet Founder and CEO, General IPlan

Martin Umaran COO, Globant; Endeavor Entrepreneur

International Panelists

(May 2009): John Hamm General Partner, VSP Capital

Karena Strella

Global Practice Group Leader and Partner, Egon Zehnder International

Pat Morin Director, Morin Assessoria Empresarial LTDA

John Rutledge Global Economist

David Spreng

Founder & Managing General Partner, Crescendo Ventures

Charlie Walton Co-founder, Kindred Partners

Local Panelists (March

2010): Liliana Ferreiro Ex-CFO, Holdinvest

Agustin Gattas Director, IBM

Esteban Brenman

Endeavor Entrepreneur, Founder Guia Oleo, decidir.com

Rodolfo Montes de Oca

Endeavor Entrepreneur, Co-Founder Zott Producciones

Entrepreneurs Coach: Rodolfo Montes de Oca

Endeavor Entrepreneur, Co-Founder Zott Producciones

7. FINANCIALS (see attached)