Through joint brainstorming sessions with entrepreneurs we can not only explore the potential and understand your mindset, but we can also see how well we can work with you. We believe that while the business model and technology applications may change from time to time, our support and teamwork with the entrepreneurs should endure.

In evaluating potential investments, Cedar Fund performs diligent research and calls upon the resources and relationships of the Fund's principals and investors.

Cedar Fund considers several key issues in this process, and while as an early stage investor we do not necessarily expect to determine final answers, we gather significant input from the approach and analysis we see. On occasion, we may decide to do a Pre-Seed investment, and even work with entrepreneurs to make further progress on these issues post investment.

Cedar Considers the Following Aspects for Each Potential Investment:

• Does the proposed enterprise address an expanding and potentially large market?
• Are the founders qualified to lead strategic execution and recruit and manage a high quality team in a fast-paced startup environment?
• Does the product or service idea represent a compelling solution to a burning business need?
• Will the enterprise's strategic direction position it to compete effectively?
• Do the enterprise's technology capabilities enhance its competitive positioning?

Finally, we do not commit to an investment without ensuring that there is a match between the amount of help and attention that the venture needs and our availability. Cedar Fund maintains a high ratio of partners to portfolio companies to ensure that we can be active and involved partners. Part of our evaluation process is intended to ensure that we ask ourselves: "do we have the bandwidth to help this company?"