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To: Doughboy who wrote (24)	5/6/1999 8:30:00 PM
From: jonathan romanowsky	Respond to of 26

DougHboy, Thanks for the update... This is sort of like Real World Silicon Investor style. The company sounds interesting. One thing that stood out was that they did not need a huge investment and that they already have alot of angel funding. This is important because, lots of VCs won't invest in them for these reasons IRRESPECTIVE OF THE COMPANY'S PROSPECTS. So, I would not be discouraged by some quick no's... On the other hand, there are tons of excellent VCs and lots of money out there. At the stage the company is it, I would be shocked if it doesn't get $$$. The pie-in-the-sky aspirations may be deflated when VCs negotiate for a smaller market value. On that last point, make sure to not be too piggish about valuation. You want to play hardball, but not too hard... First, if the company makes it, everyone will make it regardless of valuation. Second, achieving a higher valuation often requires putting additional pressure on yourself (company must meet higher than reasonable targets). Finally, VCs are your friends once they sign. You don't want to turn many VCs down... It can come back to bite. I know of one Medical Device company that was given an offer at $70MM valuation which they declines... Over the next few months the market changed slightly and they had to settle for $38MM from a different VC (not to mention the time and stress caused by the situation). Good luck and keep us posted. Jon ps- Where did the CEO get his/her MBA from? (I may know him/her)