Investment Philosophy and Sector Focus

Sweetwater seeks to invest in companies and technologies that are:

• Disruptive to established products and technologies.
• Disruptive to existing market players.
• Can be offered directly to the end user, with no distinction between the consumer or business market. We seek to bypass an “IT moment” and traditional enterprise sales models.
• Leverage the trend in personalization of technology.
• Leverage the trend in new software development which utilizes existing components and open source options.
• Leverage a service oriented architecture that exploits a maturing IP infrastructure.

Sweetwater also considers companies that present the following characteristics

• Recurring revenue model
• Compete in a fragmented sector.
• Have elements that may be developed into long term competitive advantages.
• Have strong management willing to partner for growth.
  Technology Industry Sectors

As an opportunistic investor, Sweetwater considers investments in a broad range of technology sectors. Sweetwater does however prefer to invest in sectors in which our partners have direct experience.

Target sectors include but are not limited to:

• Voice and Collaboration
  – VOIP
  – Location based services
  – Fixed mobile convergence
  – Small business services
  – Alternative voice services, e.g. Skype
  – Instant messaging
  – Presence
• Online Media
  – Digital media convergence
  – Music/Video/TV
  – Consumer created content – personal publishing
  – Collecting/Tagging
  – Podcasting
  – Vlogging
• Digital Media Infrastructure
  – Digital media back-up/storage
  – Payment services
  – Community
  – Digital rights management
  – Network access – NAT/firewall traversal
  – Search
• Mobile services
• Other technologies/services offering personalized user created content
• Financial Services