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Invent or Die The PowerDsine version

Igal Rotem – CEO and Co-Founder: Rotem.Igal@Gmail.com

MIT Forum - Day of the EntrepreneurJune 3rd 2008

Copyright © 2008 by PowerDsine Ltd. All rights reserved. No part of this presentation may be reproduced or distributed in any form by any means, or stored in a data base or retrieval system, without the prior written permission of PowerDsine.

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PowerDsine Snapshot

Established in 1995

New product line every 2-3 years

1999 - Creating “Power over Ethernet”

2003 – Power over Ethernet IEEE 802.3af

standard ratified

5 private financing rounds raising about $60M

2004 –IPO in NASDAQ raising $80M

Global presence; R&D in IsraelSales in the U.S. Taiwan, Korea

January 2007 Acquisition by

(MSCC) for $250M

Most InnovativeProduct

OutstandingEmergingCompany

Key Contributor to 802.3 af

PowerDsine Headquarters

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Leading, Global Customer Base

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1995 – First Cooperation

First product – Ring Signal Generator

First Customer -

1 half time employee…

1 office space..

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1998 – PairGain Systems…

New Product Line xDSL Modules.

Can you sell to a Giant ???!!!

Make sure your products works !!!…

You have to have enough money..

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VoIP Phone

WLAN Access Point

Network Security Device

2000 - Power-over-Ethernet (PoE)

Data and Power over a single Ethernet cable

Transmitting safe and uninterrupted power (15W, 48V) over existing LAN infrastructure

IEEE 802.3af standards based

CostSavings

ImprovedNetwork

Reliability

PoE EnabledLAN Switch

1011

011

1011011

1011011

Power

EthernetCable

Power

Power

Ease End Device

Deployment

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PowerDsine: Strong Technical Foundation

Analog / Mixed SignalAnalog / Mixed Signal

SoC IntegrationSoC IntegrationPower ManagementPower Management

Software / Embedded Controller

Software / Embedded Controller

Comms / NetworkingSystems Expertise

Comms / NetworkingSystems Expertise

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2001- Raising $30M

Private funding after the burst of the bubble….. Great FUN….

“Don’t ever try to catch a falling knife…”

Europe here we come….

Signing date: 11-Sep-2001 @ 5PM…

What’s next ??!!!

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Pioneer of PoE Technology

Power-over-Ethernet Standard approved in June 2003

Over 70% of the Standard contributed by PowerDsine

System ProtectionCompatibility

PowerSafe Solution

802.3af

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27.8

43.5

62.8

84.9

105.9

2005 2006 2007 2008 2009

PoE Switch Market (millions of ports) (1)

(1) Source: Gartner Dataquest, November 2005.

2005 – 2009 CAGR: 40%

PowerDsine: Growing PoE Opportunity

PoE market is being driven by emerging high growth applications

VoIP

WLAN

WiMAX

Advanced security

PowerDsine first to sell PoE ICs commercially

PowerDsine sells to nearly every Ethernet switch vendor

New applications for PoE using the 802.3at high power standard such as laptops will drive future growth

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2004 – Going Public

One of the first Israeli startup going public after 2001

“A” Team…led by CITI Group.

SEC, Lawyers, Accountants, and more Lawyers…

RoadShow – around the world in 14 days…

June 10th 2004 – First Trading Day

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Invent or Die – Some observations:

If you build a new market, become #1 or #2, or else you will have no business nor profits

Invest in IP, it may be your ONLY way to make a living..

Constant search for new growth engines

Assume new market will grow 3 times slower than you think

When the market will be large, the big guys will get in

Price decline will be 2 -3 time faster if the market is growing

Don’t believe the research firms, they have no clue, and they charge a lot for telling you that…

Last but not least, BE OPTIMISTIC !!!

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2007 - M&A The Bride is here where is the Groom ??

Companies are been BOUGHT not SOLDBut process is still a MUSTPrepare yourself and the teamMake sure that the Bride will havemore than 1 admirer..The highest bidder is not necessary the right one…

Short negotiation and process are KEY, Its like fresh milk, if stays out too long it gets sour….

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…The outcome of too much US market focus…

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Discussion….☺