© 2008 North Venture Partners, LLC | www.dontgosouth.com | www.northangels.com

For innovation to solve the problems of tomorrow, we must support it today.

1.0

Creating remarkable social and economic returns from helping build a successful

new business is certainly a worthy goal, but if we don’t address the inefficiencies

in how new companies are being created, those same social and economic

aspirations could be at serious risk.

The good news? It’s not too late. There’s still time for us to suit up, make a

difference, and seize the opportunity to get in the game.

We’re ready if you are.

2.0

The creation of new companies is essential for economic growth. This growth is

driven by investors like yourself who are willing to brave the elements and steeper

odds to invest their time and capital to help inspire game-changing innovation.

By empowering private investors and forward-thinking entrepreneurs, we believe we can thrive in a space where banks and VCs fear to tread.

What is Early Stage Private Equity?

3.0

Most Angel investors have a balanced portfolio. Often “higher risk” holdings in these

portfolios are correlated to the same market as their more "secure" portfolio holdings

(i.e. leveraged hedge fund trading public equities). One strong advantage to

uncorrelated assets (equity in a private company) is the insulation they provide from

overall market shifts, while maintaining the original high risk/return structure.

Why Invest In Early Stage Private Equity?

Note: Responsible Angel investing would likely account for no more than a small

percentage (1-3%) of an investors total portfolio. Combined with the potential financial

returns, the "emotional returns" you can get from playing a role in building a successful

business makes Angel investing that much more rewarding.

4.0

Three years ago North was created by a group of former Virgin executives who left

the Richard Branson empire to focus on building holistic solutions for the early

stage investing marketplace. Instead of sitting back and waiting for the investing

climate to correct itself, we decided to pool our resources, skill sets, and

imaginations to pave a revolutionary new path for fostering tomorrow’s innovation.

North is a boutique private equity advisory and consulting firm focused on accelerating the growth of innovative early stage ventures.

The story behind North begins with a rather powerful discovery.

Our team spent several years seeking the best methods, techniques, and

information that we could find to empower ourselves to make smarter, more

profitable investment decisions for our clients, our investors, and ourselves.

While searching for “the key” to what critical factors influence the success of early

stage venture investments, we found something rather simple, yet profound.

By focusing our efforts and business on unlocking this single friction point, we

could impact the growth curve of entire industry (perhaps even the entire

economy) in a remarkable way.

Searching For The Secrets To Success.

Secret Discovered: 360o Due Diligence.

5.0

Solid due diligence is absolutely crucial for investing success, it’s what guides

investors decisions, builds trust that enables investment, and ultimately, it’s the

single largest factor in the overall success of Angel investing.

So what’s the catch? Effective due diligence can be both expensive and

exhausting. But in order to make smart decisions, there are no short cuts. Take

a look at the Kauffman Foundation research below and you’ll see why.

“Comparing investors who spent less

than the median 20 hours of due

diligence and investors who spent

more, shows an overall multiple

difference of 5.9X for those with high

due diligence compared to only 1.1X

for those with low due diligence.”

Whether you are an entrepreneur betting your career, or an Angel investor

betting your capital on an exciting new venture, what type of return on

investment are you seeking?

Excerpt taken from “Returns to Angel Investors in Groups”, a comprehensive study of 539

Angel led investments. Robert Wiltbank, Ph.D. and Warren Boeker, Ph. D., 11/2007.

590% or 110%?

6.0

North strengthens the entire early stage private equity market by providing superior due diligence on the highest quality opportunities.

Seeing The Opportunity We Planned Our Attack.

North is predominantly a best-in-class venture analysis firm which leverages

our exposure to venture investments and market research to identify

outstanding opportunities in the early stage private equity market.

North filters several hundred new ventures every month down to a handful of

strong candidates. We then generate in-depth due diligence reports for roughly

8% of the total number of deals that are submitted to our team.

We publish (via email) the top 3-5 scoring investments to our Angel Group

members who then indicate their level of investment interest in a reply email.

7.0

North provides access to services that individual investors or groups could

rarely afford. If deep due diligence is the key to inspiring innovation, preventing

losses, and unlocking higher return; then investors must leverage a dedicated

team of analysts with well-trained eyes.

North delivers a dedicated team of

analysts and a disciplined & proprietary

methodology for scoring, evaluating,

and selecting new venture investments.

The end result; the Venture 360 Report.

Introducing World-Class Due Diligence.

What we have built is a comprehensive process for

new venture evaluation based upon best-in-class

methodologies, research, and comparative data

analysis techniques.

The benefits of the Venture 360 Report are two-fold:

1) Angel investors can make highly informed

decisions quickly, and with confidence.

2) Entrepreneurs get rare and insightful feedback on

their business from the perspective of an investor.

8.0

From deconstructing the financials to

target market analysis; the strengths

and weaknesses of each venture

opportunity are reviewed in detail so

investors and entrepreneurs can make

decisions based on reliable data, not

just intuition.

20+ Pages of Rigorous

Due Diligence

Insights & Scoring

Across 8 Categories

Comparative Graphing &

Written Analysis

Performance Chart &

Executive Summary

Up Close Evaluation; There Is No Substitute.

Conducting the market research, background checks, reference calls, and

financial modeling that are required to effectively understand a new venture is

back breaking work. North utilizes software, systems, and processes to

produce reliable, high quality due diligence reports quickly and consistently.

9.0

The North Venture 360 Report is a

comprehensive document that cuts

through the subjective spin of any

business plan, arming investors with the

supportive data they need to make a

more informed investment decision.

Decisions Based On Data, Not Drama.

Eliminates Risk: Entrepreneurs and investors might not

like what their report has to say, but everyone should

realize that neither investors, entrepreneurs, or North are

well served by spending weeks, or months trying to move

a venture forward if it is fundamentally flawed.

Accelerate The Venture: An objective third party analysis

can either quickly generate conversations with investors,

or it can give an entrepreneur the direct and honest

feedback they need to dig in and re-tool their business to

put it on the right path.

Utilizing a combined human and database-driven due diligence process, North

analysts score thousands of ventures across 80 categories, resulting in finely

tuned analysis and insights across all critical aspects of each venture. North

also contracts with Lexis Nexis® for additional background checking on

potential issues that could affect the investment decision.

10.0

In our effort to provide Angel investors with the best possible deal flow, North

has created an ingestion portal through which entrepreneurs submit their

applications for funding. By aggregating a large pool of deals, most investors

gain the advantage of filtering through a much larger pool of opportunities.

Thousands of entrepreneurs flock to North

because we offer up something different; a

kindred spirit who provides objective &

honest feedback on their business and

gives them a better shot at funding.

Secret #2? Fishing In A Bigger Pond.

Through this superior deal flow, our extraordinary reach into the world of

innovation, our robust online systems, and the clarity provided by the North

Venture 360 Report, we’re able to make Angel investing more educated,

empowering, and rewarding.

Our partners and group members are benefactors of this quality deal flow, as

all they have to do is simply subscribe to receive an email of the “best of the

best” of new ventures we screen each month.

10.0

Our comfort zone covers roughly 85% of all new ventures we see. While our

roster is deep enough to cover the most common areas of innovation, we can’t

provide reports on everything under the sun. If a venture falls outside of our

coverage, we’ll probably have to wave the white flag and refer the entrepreneur

to a subject matter expert. Venture 360 Reports are completed in 5-10

business days and are scheduled on a first come first served basis.

North provides Venture 360 reports

across 8 broad markets enabling us to

cover about 85% of submissions.

Chances Are We’ve Got You Covered

For each industry there are various

economic models, industry standards, and

consumer behaviors. Each of these unique

factors is incorporated into the venture

evaluation. The strength and accuracy of

the North database of reviewed ventures is

enhanced by our market segmentation.

Note: The overall scoring and analysis

output is calibrated to seek the greatest

possible economic return regardless of

market sector.

Media & Entertainment

Consumer Products & Services

Software & IT Services

Mobile Devices & Applications

Business Products & Services

Retail / Distribution

Sustainable Industries / Energy

North Market Coverage

12.0

Historically the deal screening and due diligence expense has rested on the

investor’s shoulders. When the most common response entrepreneurs hear is

“No Thanks” in the form of a template rejection letter, why would it warrant any

investment on behalf of the entrepreneur?

North, having sat on both sides of the pitch table, built a system that completely

changes the value an entrepreneur gets from the funding application process.

We discovered that by dramatically enhancing the value an entrepreneur

receives from the application process (20+ pages of detailed analysis of their

venture’s strengths and weaknesses), investors can shift the cost of due

diligence back onto the shoulders of the "sell side" of the equation.

By turning a form rejection letter into something actually worth paying for, the due diligence cost paradigm has been completely inverted.

What this new paradigm means is that Angel investors can now receive the

benefit of world class due diligence with no impact on their operating budgets.

The value of the North Venture 360 Report is clear for entrepreneurs, it’s an

insightful tool that gives their venture the best possible shot at being

considered for funding. Worst case, if rejected, the Venture 360 Report

provides triage of what they need to do to fix their business and make it more

"investor ready".

Flipping The Cost/Benefit Relationship.

13.0

Smart entrepreneurs look for investors who don’t hide behind old sayings like

“the cobblers kids have no shoes”. Our team understands what it means to

pour everything you’ve got (and then some) into your business. We wouldn’t

ask an entrepreneur to do anything we wouldn’t first be willing to do ourselves.

At North, inspiring innovation is not a

hobby, it’s our full-time mission. By

working together when we win, we win

more. And when we lose, we lose less.

North Angels operates using

process and data driven due

diligence tools coupled with web

based information management

software designed to streamline our

operations and enable global scale.

North is driven to operate faster with

greater efficiency, and far less

overhead than any other Angel

investment group.

Angel Investors Should Walk Their Talk.

14.0

Ultimately the time and amount you’re involved is completely up to you. We do

not hold mandatory meetings, we don’t run a social club, and we do not have

required investment minimums. We don’t even charge annual dues.

What we do provide is a fresh pool of possibilities. If you want to jump in, great.

If you wish to hang back and watch from the stands, we’re fine with that too.

Many of our Angels enjoy the opportunity

to be a board member, to mentor aspiring

young entrepreneurs, or simply to keep

their own business skills sharp. The

bottom line, working with new ventures

can be a lot more hands on than a hedge

fund could ever be.

Angel investing is not easy, nor is it for the timid or weak. What we do is hard,

and it takes guts and courage. Or as we like to say, it takes North swagger. By

striving for greatness, we will undoubtedly stumble. But if our mission is true,

we cannot lose.

How Will North Impact Your Life?

We’re All On The Same Team.

15.0

We work hand-in-hand to team you up with tomorrow’s most forward-thinking

entrepreneurs to build amazing new companies. We seek to support innovation

through the most difficult challenge in all of business: from zero to a million.

North is not an investment bank and does not manage an investment fund. While due diligence efforts are done in collaboration, each North Angels member makes their own investment decisions.

North charges entrepreneurs fees for the completion of Venture 360 Reports to

cover operating expenses. These fees allow us to operate without charging

investors annual dues, or taking a percentage of capital raised.

For some investments, North may assist in creating a unique LLC to aggregate

investor capital. Through the management of this unique LLC, the North team

may earn a percentage of profit called a “carry”. This “carry” is typically 20% of

profit and is only paid after the LLC members have achieved returns greater

than 100%.

Bottom line, the LLC managers profit only after the members have doubled

their investment. We couldn’t think of a more powerful way to make sure

everyone’s goals are properly aligned.

16.0

This mission takes a team and we’re looking for more players to help shoulder

the load.

Angel members are by invitation only and membership is completely

confidential. Solicitation of members is strictly forbidden. North requires no

minimum annual investment, or membership dues.

Members must be “accredited” under the SEC code, and comfortable enough

with a computer to check email. Any additional time, effort, or capital invested

is totally up to you.

On Your Marks. Get Set. Go North.

Sign up now to start receiving the North deal flow. It takes about 2 minutes. Just click on the link below. Welcome to the world of innovation.

Northern California

1729 Telegraph Ave

Oakland, CA 94612

Southern California

4316 Melrose Ave.

Los Angeles, CA 90029

Read more about what we do at:

www.dontgosouth.com

Click Here to Join North Angels