HOW TO LOSE A VC FUNDER IN ONE SENTENCE…

Some interesting PoweredbyVC deals received: Jul to Dec 2010

www.poweredbyvc.com follow us on twitter: http://twitter.com/poweredbyvc

Raising funding for a new venture is difficult as it is. Entrepreneurs going down this
road will have to shrug off many pessimists along they way, but sometimes they are
their own worst enemy.

As a Venture Capitalist in South Africa you need to have a great sense of humour as
you wade through your dealflow. We have kept some gems and put together a list of
actual funding requests received by us (PoweredbyVC: a leading South African
Venture Capital company) between July and December 2010. Because of
confidentiality some info is masked and the entrepreneurs and concepts are not
disclosed. Spelling mistakes and nonsensical sentences were left as is. We also offer
a short VC Analysis at the end of our thoughts (not a reflection of the potential of the
underpinning ideas) as we read through these entertaining emails…

Subject: WAKA WAKA - My Startup Needs Help

Date: July 2010

Hi Keet

Shakira sang "It's Time for Africa" and maybe you heard her, even if it was just
subconsciously... (few like to admit they watch her with the Volume on).

My name is XXX. I've been an entrepreneur my whole life - opened a restaurant in

XXX when I was 19 and opened a second one in XXX when i was 21. Then I fell in
love with the Internet and have been living online since 2005. I met my girlfriend on
a dating site 5 years ago. We have a kid together but she just dumped me... but
that's not my point.

I run a XXX business…

Best Regards and Waka Waka (whatever that means).

VC Analysis: It’s great that you got swept up by the FIFA World Cup spirit! And sorry
to hear about your girlfriend. But that’s just too much information.

Subject: Idea Development

Date: July 2010

Hi,

I have a few things in mind that need designing, manufacturing, but minimal R&D.
Im not looking for direct funding, but a support path to reach the final products.

One of the things I want to develop, create has to do with faxing. The other has to
do with car windows.

Please advise how I can further these ideas that never happend.

VC Analysis: Car windows and Faxing. We can definitely envisage a situation where
one can be an expert in both of those unrelated niche areas. Why not combine the
two?

Page 1 of 6
Subject: Help!!!!! Very Urgent!!! LIFE OR DEATH!!!
Date: Aug 2010

Dear Keet,

It is a matter of critical urgency that you call me ASAP!!!!!

I have had multiple offers to buy my business, one such company is a major blue
chip.

I refuse to sell but need capital to grow.

We have the complete comprehensive complete offer for commercial and inductrial
consumers re energy savings in south africa.

DO NOT JUST LOOK AT THE WEBSITE!!!! It is CRITICALLY OUT OF DATE!!! It does not
even come close to what we offer!!!

Call me on my cell, I swear to you this will be the most important meeting you have
all year, I promise you. If it is not, feel free to have me physically and verbally evicted
form the building.

Think about the statements I have made, I would certainly not create such
expectation unless I was 100% sure I can deliver!!!

Thanks,
XXX

VC Analysis: Sell to the major Blue Chip before your concept becomes out of date.
Think about the statement I have made…

Subject: Regarding one unique innovative product for which i need venture fund

Date: July 2010

This invention relates to provide convenience and removing headache of hanging

mosquito net to have a bite-relief night from mosquitoes. XXX

Date: Sept 2010

Sir,
I am trying here also to get some potential manufacturer of my product. For that I
am sending the details about my product, I do not know is it right or wrong? kindly
suggest me if I am wrong. I have the threat of being stolen my product.

Thanking You
XXX

VC Analysis: We kindly suggest that you are wrong.

Page 2 of 6
Subject: awaiting your reply
Date: Oct 2010

Hello Keet,
In the past few months, my little baby dragon grew into this:

I don't need a dragon slayer…..what I need is a dragon wrangler…….

…..and VC

If you and your group would like to explore this opportunity, I would be pleased to
immediately respond to your potentionally non immediate reply.

Warmest regards,
XXX

Page 3 of 6
VC Analysis: Our non immediate response would be to wait until the effects of what
you have been smoking wears off, and then start with the basics by telling us about
this dragon wrangling opportunity?!

Subject: Re: Fwd: Fwd: Re:

Date: Sept/Oct 2010

(after some back and forth on email)

Hi

I would like to make an appointment to see you. now that I feel comfortable that you
are who you say you are.

XXX

VC Analysis: But how can we be sure that you are who you say you are?

Subject: INVESTMENT
Date: Oct 2010

MY NAME IS XXX FROM MPUMALANGA, HERE IN SOUTH AFRICA. I HAVE THIS IDEA OF
STARTING A SOCIAL NETWORK SITE DIFFERENT FROM THE EXISTING ONES. I HAVE
DONE ABIT OF RESEARCH. MY QUESTION IS, DO YOU INVEST OR FUND IN
SMALL/STARTING BUSINESSES? IF YOU DO WHAT ARE THE PROCEDURES I MUST
FOLLOW TO HAVE YOU GUYS AS INVESTORS?

VC Analysis: Are you shouting? Or is your Caps Lock button stuck? But your main
problem lies in the “ABIT” of research that you have done. Do some more. Great idea
though, we are all tired of Facebook and Twitter and itching to sign up to a different
social network.

Subject: brilliant design

Date: Nov 2010

Hi

I have a new design that will be a billion dollar market. Every person on earth will
have to buy one, because it will be the future of technology and everyday life! im just
searching for a buyer who's interested in making money, and will only give out new
design if there has been a agreement.

Will be awaiting your reply

Thanks
XXX

VC Analysis: Every person on earth? Awesome target market! Is there potential to

expand this technology to apply to the future of everyday life of animals?

Page 4 of 6
Subject: New Product Investment
Date: Nov 2010

To the Team

Attached I am forwarding The Product Financial Indicator for you to view and take
into consideration.

Once you have confirmed... following next I will forward the set of documents to be
reviewed that form part of the Trade Document Collection Content : Intellectual
Property to which the value in economic performance is attributed!

THE GENERATION OF WEALTH AND SHARE

I am looking forward to meeting you.

Thank you!

From Mr. XXX

VC Analysis: We have read your funding request three times and concluded that we
can’t believe that it’s November already. So tired.

Subject: INVESTMENT
Date: Nov 2010

(Extract from the PBVC Proposal Summary completed by the Entrepreneur)

VC Analysis: So you need R4.5m to get your project 100% off the ground in
capturing an R80bn market with low cash flow being the only business weakness and
no external threats? When can we start the Due Diligence?

Page 5 of 6
Subject: Re: Start-up funding
Date: Dec 2010

Hi guys.

Today i came up with an idea, that if i was offered a $1,000,000 winning lottery
ticket / or this idea, i would take the idea.

I woke up with the basic idea, the core business idea/technology concept put
together in less than 5 minutes.

The simplicit is laughable really (why arent people/companies doing this already?),
the implementation of course is more complex, but that's what the venture capital
would be required for, making it work…

XXX

Many thanks, id appreciate any input from your side.

VC Analysis: Great opening line! But rather go for the $1,000,000; take some time
off while thinking of another ‘simplicit’ idea which you can implement with some
own funding behind it and in the process own 100% of your business.

All the best for an awesome Festive Season!!

Page 6 of 6