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Hi Hunter,

Please check out Will Lee's thoughts below. Will has committed $1mm to the
fund. He is a bootstrapped entrepreneur (started a company for $2mm and
sold it for $700mm). Our kids go to school together. He is a smart and
great guy. You will meet him at the investor day meeting.

Best,

John


On Feb 28, 2013, at 12:00 PM, John DeLoche <jdeloche@rosemontseneca.com>
wrote:

Hi Will,

Thanks for your thoughts. I agree with your observations: this business is
all about customer acquisition. If we can help with customer acquisition
and speed it up/decrease its cost in a meaningful way this could be a great
(monopolistic) business. They are spending way too much to acquire
customers which is unsustainable.

Best,

John

On Thu, Feb 28, 2013 at 11:46 AM, William Lee <wwlee@nextstagellc.com>wrote:

> John,
>
> Thanks for sending.
>
> Here are my quick observations:
>
> Pros:
> + Perceived leader in a new market
> + High barrier to entry
> + Subscription based revenue model. Great!
> + Managed service is easy to sign up, and can remain a sticky business
> + Products look matured enough for large deployment because R&D spending
> is flat.
> + Ready for growth.
>
> Cons:
> - Narrow vertical.
> - State level budget cuts in the short term.
> - International market may take too much resource to reach at this stage
> for the company.
> - It needs 3 years to reach profitability, revenue needs to hit about $25M
> (Can it be sooner?)
> - This is similar to enterprise software with possible long sales cycle.
>
> Comments:
> * I would suggest creating a "Jumpstart" program that gets potential
> customers hooked on its managed services. Jumpstart programs are
> professional services gigs needs to be deployed in one or two weeks
> timeframe for working proof of concepts in a small sandbox.
>
> * The point is to sign up as many customers as possible, and once they are
> subscribed to SST's services, then increase the size of deployment,
> up-sell/cross-sell other products. Need to load up a lot of new customers
> as soon as possible to help with a subscription based revenue model.
>
> What do you think?
>
> -Will
>
>
> On Feb 28, 2013, at 10:04 AM, John DeLoche <jdeloche@rosemontseneca.com>
> wrote:
>
> fyi
>
>
> ---------- Forwarded message ----------
> From: John DeLoche <jdeloche@rosemontseneca.com>
> Date: Thu, Feb 28, 2013 at 9:59 AM
> Subject: Fwd: SST Materials
> To: Hunter Biden <hbiden@rosemontseneca.com>, Neil Callahan <
> ncallahan@rosemontseneca.com>, Devon Archer <darcher@rosemontseneca.com>,
> Eric Schwerin <eschwerin@rosemontseneca.com>, Rob Walker <
> rwalker@rosemontseneca.com>
>
>
> Hi Hunter,
>
> I thought you would find this co particularly of interest. We may want to
> consider inviting Ralph to speak at the April 3 event. He is a very
> impressive CEO. I missed out on his last company (GuardianEdge which sold
> to Symantec).
>
> Best,
>
> John
>
>
> ---------- Forwarded message ----------
> From: Ralph A. Clark <rclark@shotspotter.com>
> Date: Thu, Feb 28, 2013 at 9:41 AM
> Subject: SST Materials
> To: "jdeloche@rosemontseneca.com" <jdeloche@rosemontseneca.com>
> Cc: Sonya Strickler <sstrickler@shotspotter.com>
>
>
> Hi John,
>
> My apologies for the delayed response but I just got back home from a 10
> day trip where the last few days where spent in DC. Please find attached
> our five year financial model along with an investor presentation I made at
> the Imperial Capital Security Conference held in Dec '12.
>
> I will be traveling to DC again week after next to attend the National
> League of Cities Conference. Let me know if you would like to have me
> connect with any of your colleagues while I am back there.
>
> Regards,
>
> Ralph
>
> <A89AF155-7C06-40DF-A5C0-4EF7E122CC97[37].png> <http://www.sst-inc.com/>
> ****
> ** **
> *Ralph A. Clark***
> *President & CEO*
> 7979 Gateway Blvd., Suite 210
> Newark, CA 94560
> Tel.510.794-3158 / Cel.510.207.5453
> rclark@shotspotter.com
> *http://www.linkedin.com/pub/ralph-clark/0/63/ba2*
> ** **
> <00ACCBEF-5ED7-4CA1-9EB3-473BEA134A45[37].png><http://twitter.com/#!/shotspotter>
> <7479EFB6-DCF3-44E6-9089-643A8B6966ED[37].png><http://www.facebook.com/SHOTSPOTTER>
> <CCCDF826-02D3-46B0-AD30-97B13C64B07D[37].png><http://www.linkedin.com/company/shotspotter-inc.>
> <28B901F8-9A14-4AE1-AC01-DF1488373B9B[37].png><http://www.youtube.com/user/shotspotter>
> ****
> ** **
> *
> *
> ** **
> <BCD66CCB-8622-47ED-8AF9-D40479E7F886[37].png> The Fight to Stop Gun
> Violence Starts with ShotSpotter
>
>
>
> --
> John DeLoche
> *Managing Director*
> Rosemont Seneca Technology Partners
> One Market, Spear Tower, 36th Floor
> San Francisco, CA 94105
> office: 415 293 8147
> mobile: 415 793 7070
>
> This email communication is privileged and confidential and is intended
> only for the individuals or entities named above. Any unauthorized
> dissemination of any of the contents of this email is strictly prohibited.
> If you are not the intended recipient, please do not read, copy, use or
> disclose to others the contents of this communication. Please notify the
> sender that you have received this e-mail in error and then delete the
> e-mail.
>
>
>
>
> --
> John DeLoche
> *Managing Director*
> Rosemont Seneca Technology Partners
> One Market, Spear Tower, 36th Floor
> San Francisco, CA 94105
> office: 415 293 8147
> mobile: 415 793 7070
>
> This email communication is privileged and confidential and is intended
> only for the individuals or entities named above. Any unauthorized
> dissemination of any of the contents of this email is strictly prohibited.
> If you are not the intended recipient, please do not read, copy, use or
> disclose to others the contents of this communication. Please notify the
> sender that you have received this e-mail in error and then delete the
> e-mail.
>
> <Five Year Plan RosemontSeneca 2.27.13.xlsx><Imperial Capital
> Presentation 13 December 2012.pdf>
>
>
>


--
John DeLoche
*Managing Director*
Rosemont Seneca Technology Partners
One Market, Spear Tower, 36th Floor
San Francisco, CA 94105
office: 415 293 8147
mobile: 415 793 7070

This email communication is privileged and confidential and is intended
only for the individuals or entities named above. Any unauthorized
dissemination of any of the contents of this email is strictly prohibited.
If you are not the intended recipient, please do not read, copy, use or
disclose to others the contents of this communication. Please notify the
sender that you have received this e-mail in error and then delete the
e-mail.


--
John DeLoche
*Managing Director*
Rosemont Seneca Technology Partners
One Market, Spear Tower, 36th Floor
San Francisco, CA 94105
office: 415 293 8147
mobile: 415 793 7070

This email communication is privileged and confidential and is intended
only for the individuals or entities named above. Any unauthorized
dissemination of any of the contents of this email is strictly prohibited.
If you are not the intended recipient, please do not read, copy, use or
disclose to others the contents of this communication. Please notify the
sender that you have received this e-mail in error and then delete the
e-mail