CONFIDENTIAL

Follow-On Investment BriefingSubject: Drawbridge Networks Series Seed Extension Investment OpportunityDate: March 22, 2016To: Investment CommitteeFrom: Mike Brown Jr., Nic Poulos, Mercedes Chien, James Liao

INVESTMENT PROPOSAL

We seek final approval to invest up to $500,000 in Drawbridge Networks as part of a $2.0MM Series Seed Extension round of financing in the form of convertible debt at a valuation cap of $10.0MM. This investment follows our $600k participation in the company’s Series Seed round of financing closed in November 2014 and will yield an initial fully diluted ownership stake of approximately 10% for Bowery Capital post-transaction. Bowery Capital will lead the round, with additional participation from existing investors including Primary Venture Partners, Bloomberg Beta, Paladin Capital, and various angel investors.

Since the Series Seed Investment Memo, the Drawbridge Networks team has built a fully functioning product, signed up over ten proof of concept customers (with two already live), hired in a 7-person team, and grown the pipeline over 3.0x since beginning the company. There have been a few reasons for delays in targets relative to our Series Seed Investment Memo, but we believe that forecasted growth will now be realigned as the company has a product in market that they are ready to sell. The delays were caused by inertia in the new development, friction in the sales channel due to the newness of the product, and customer aversion due to budget changes at the end of the year. Since then, development experience has been gained, a viable product has been launched and proven, and the customer onboarding and sell-through process is better understood.

We believe that Drawbridge Networks is better positioned than before to focus on fully expanding its go-to-market efforts on Windows, Mac, and Linux, while developing additional features for a more solid competitive edge. Since our initial investment, the company has achieved 2 production pilots of more than 4 months and 50-100 endpoints, and 5 beta lab pilots to prove compatibility with the three major operating systems and 100,000+ endpoints. We feel confident of the company’s growth, given the pre-negotiated revenue stream of at least $340k in ARR that is to be seen this year. Given the company’s viable product, finalized advisory board, and plans to hire a go-to-market developer, a senior developer, and its recent hire of sales expert Xavier Ashe, we believe Drawbridge Networks continues to represent a compelling investment opportunity for Bowery Capital. We recommend maintaining our ownership stake with this follow-on investment. The team has completed diligence of the opportunity over the past weeks and prepared the following sections for review.

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INVESTMENT POSITIVES

● Product Advancements Have Been Significant in Under a Year

The product has been fully developed and can be deployed on all operating systems, including Windows, Mac OS, and Linux. The product can now handle up to 100,000 endpoints, use 2 factor authentication to limit connections between nodes based on learned behavior, and quarantine infected nodes. Clients are already seeing value from this deployment, along with an improved UI, and this makes the product sale-ready. Drawbridge is now executing pilots with a few of their initial large clients, and will further optimize the proof-of-concept process. On the whole, this signals a growing focus on sales and marketing to substantially increase the client base and reach the $500K yearly revenue milestone within the next year.

● Team Growth Has Been On Plan with Some Critical Hires Placed Recently

Since our Series Seed investment memo Drawbridge has met its hiring plans for 2015 and is on pace with the planned goals in our initial memo. Initially, the team has had some growing pains due to some lack of security experience in the junior development team, but has overcome the inexperience from both practice and good leadership. John and Tom have proven their ability to lead their tech team and hit their development goals, albeit with some expected delay. They recently have hired an experienced member to lead sales growth and solidified their advisory board to fully contribute to product growth and customer acquisition. They also plan to hire a senior developer to rebalance the development load and a go-to-market developer to upgrade the customer onboarding rate. Furthermore, the management has demonstrated their ability to execute on proof-of-concept with their intended clients, and sell the value of their product. We recognize their capability of further monetizing their product.

● Large and Disruptable Market Opportunity Remains for The Company

Drawbridge’s viable market position has remained consistent since the Series Seed stage. Drawbridge Networks is still positioned in the overlap among Endpoint Protection, Intrusion Prevention Systems, and VPN / Firewall segments, in a new market coined microsegmentation. The feature offering is still defined by device management and software defined networking (SDN) for enterprises. Drawbridge Networks takes advantage of the shift towards software-defined security and disrupts legacy internal firewall deployments, network access control, VPN products, and other traditional network security solutions, worth a combined $12.5B of revenue according to Gartner. The sheer size of the market opportunity and the inclusion of a few key differentiating product features is a key indicator of Drawbridge’s good positioning.

● Product Differentiation & Vision Remains a Critical Component to Early Success Success

The company continues to operate in the crowded endpoint security market however has built a highly distinguishable product that remains undisputed. Many CIOs that we spoke with throughout the due diligence process continue to believe that no one is solving the challenges outside of network infrastructure and hypervisor segments (largely owned by vArmour & Illumio). Drawbridge Networks focus on MAC, Linux, and Desktop set it apart from most companies in the space. In addition, the product flexibility and ease of install continue to help it win proof of concept customers. We continue to believe that this product vision on behalf of John Terrill and Tom Cross represents one of the strongest reasons for additional capital investment at this time.

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INVESTMENT CONCERNS

● Delayed Timing in Development Caused a 1 Year Setback

The delay in product development caused Drawbridge Networks to drop several client leads. The Mac compatible software needed the product to be Mac-compatible to test out on their systems. The challenge for developing this kind of new software security product has been consistently known to take extra funding and time. This is not quantified well, and may always carry some risk, although the company has been able to adjust quickly, in that it completed its first proof-of-concept with only 1-2 months of delay. We believe that the founders understand this challenge and are dealing with it quickly.

● Crowded Competitive Landscape Remains a Big Issue

Drawbridge Networks has a few close competitors, but none of their competitors can offer the entire feature set. More than anything, we believe that this provides significant noise in the sales channel, and may further slow the growth rate of customer acquisition, which is already hindered by slightly protracted onboarding process. There is also the risk that a close competitor or large player like Cisco or VMware could try to compete more directly, even though there is a patent pending for Drawbridge technology. All in, this remains one of the largest risks to the business today. We have seen within the sales channel this become a point of confusion and believe the founders will really need to focus in Year 2 on sales marketing to see success here.

● Initial Proof of Concept Friction Hurt Sales Forecasts in Year 1

Convincing a large organization that a new startup’s security software will be the be-all-end-all for the endpoint protection sector is a tough sell. Often, corporations do not seek change until it seeks to detriment them-facing the switching and installation costs of a new security software could definitely clog sales and prevent budget allocation from the top-level. Drawbridge Networks had to extend sales cycles out to 90-180 days in the first year of operations and lacked the credible expertise on the sales qualification side to really see what was fake and what was real. However, the team has brought on a sales consultant (Ken Pouliot @ Box) that is highly influential in large solutions sales to help the team out in Year 2. We believe this should provide more measured qualification, an increase in pipeline, and overall higher close rate as Ken teaches the team exactly how to sell in this market.

● Limited Progress On Sales Marketing Will Continue to Slow Customer Traction

In addition to the specific sales challenges, the business suffered in the past year from being largely in stealth mode. While this is generally fine for b2b software companies we would note that this became an issue as many proof of concept customers had never heard of the business. Xavier Ashe was hired into the business to enhance this element however we have not seen substantial uptake on this front in over 6 months. The team will need to work hard to launch their website, build sales marketing collateral, deliver case studies that are needed, and enhance the core proposition through their marketing efforts.

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PROGRESS TO DATE

TEAM

Over the last 18 months, the Drawbridge Networks team has continued to stay streamlined at 7 employees, all focused on product development with the exception of the CEO. The team has updated the development team under the leadership of John Terrill and Tom Cross from 5 to 4 people, due primarily to one developer leaving to pursue her own project. On the executive side the team has added Xavier Ashe as VP of Client Success (formerly of Bit9) and realigned leadership goals for deployment timelines to rationalize the process. The first goal continues to be to close deals with their current qualified clients before the team thinks about expanding and growing their team. As expected, the team expects to add one senior developer and one go-to-market developer after funding. We believe that this will raise the rate of customer acquisition and continue to mature the product and believe this is an appropriate hiring plan for a pre-Series A company.

Since our Series Seed Investment memo Xavier Ashe joined the team as the VP of Client Success. Xavier has headed the customer success team at Bit9 and has had prior experience as a Consultant at IBM ISS. His background in the cyber security industry and his work as a consultant will help improve customer success and ensure that Drawbridge continues to expand its customer base through optimized sales and customer outreach. John, Tom, and Xavier lead a team of four software engineers with strong backgrounds in Information Security, Network Security, and consumer web properties.

In addition to Xavier the Drawbridge Networks team brought on a solid group of advisors that they are calling Senior Advisors. Adam Ely joined the company and is currently the Co-Founder of Bluebox Security focusing on product innovation and strategy. Previously, Adam was the CISO of Salesforce's Heroku business unit, led security and compliance at TiVo, and held security leadership roles within The Walt Disney Company. Dino Dai Zovi also joins as a Senior Advisor and is currently the Mobile Security Lead at Square. He has been working in information security for over 15 years with experience in red teaming, penetration testing, software security, information security management, and cybersecurity R&D. Dino is also a well-known authority on hacking and security. Justine Bone is the third Senior Advisor and in her current role she is the Executive Director and CTO at Secured Worldwide, a commodity-based financial technology company, where she helps drive the product, security strategy, overall technology management and other Business Development. Previously Justine was Chief Information Security Officer at Dow Jones, a News Corporation company and publisher of the Wall Street Journal, and Global Head of Risk Management at Bloomberg L.P. Her experience also includes several years as CEO of security research firm Immunity Inc, penetration tester and vulnerability researcher with Internet Security Systems (now IBM) X-Force, and as a security analyst with New Zealand’s Government Communications Security Bureau. Finally, Ben Smith, the current CISO of IEX Group, Inc, joins as a Senior Advior. Ben has over 22 years of information security experience with the last 16 years in the financial sector. Ben was the first CISO at BlackRock responsible globally for all information security and access management programs. Prior to BlackRock, Ben was the global Information Security Officer and Security Architect for FXall, a multi-bank FX trading portal.

Beyond the addition of one executive as well as the Senior Advisors the Drawbridge Networks team also brought on a Sales Advisor in Ken Pouliot since our Series Seed Investment Memo. Ken was formerly the RVP of the East at Box where he worked on many early proof of concept relationships including Home Depot and GE. Prior to Box, Ken had senior sales leadership and direct sales experience at both Symantec and Verisign.

PRODUCT

CONFIDENTIAL

Drawbridge Networks core features have developed in line with our Series Seed Investment Memo. Following the completion of the most recent Beta launch, the company has hit these individual development goals:

5 lab deployments, and 2 deployments in production: Production Deployment 1: 50-60 endpoints stable since AugustProduction Deployment 2: ~50 endpoints, stable since January, expanding deployment to at least double the number of endpoints by 3/20Gained immediate visibility to all traffic patterns and endpoint connections

A Market-ready Product, including these features:Utility Patent Pending: Applies to architecture, mechanism for inspection, and modeling of automatic policy creationVisibility of all endpointsCan support over 100,000 endpoints from a single controllerCompatibility with Windows, Linux, and Mac OS Specific UI and workflow adjustmentsReal-time authentication of every connection and transferring of policies from the controller to agentsBulk import of user profiles as part of onboardingAutomatic policy creation2-factor Authentication support in the agent for Duo Security, RSA, SAML

Figure 3: Listing and automatic creation of policies

These developments since the last raise are meaningful because Drawbridge Networks now has a proven, marketable product. Additionally, intrusions to Macs are growing, so the support for that operating system becomes more relevant. This is a major milestone for both scaling per client revenue and accommodating a diverse set of device software. Overall, customer onboarding is now a more polished, automated process, on the way to the end-goal of installation automation for user trials. One small concern is that the long-term validation of this product has not been yet realistically tested with a larger sample set of endpoints and clients.

Feature roadmap after raise:

Figure 1: Visibility of all endpoints within the network

Figure 2: Manual creation of user and host policies

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Multi-controller model to scale to 1 million+ endpointsSupport for regional localities and endpoint clusteringUI refinements for better workflows, user friendliness and a more professional, polished lookEncryption to protect the communication between agents and controllerAdvanced machine learning for auto-classification: create more granular user groups that may not have been readily evident Expand policy to allow for primitives of processes and applicationsPhone-home feature for remotely tracking all client endpoints

Based on client demand: Support DNS queries, Blacklist feature

This next step in product developments are important because they improve the competitiveness of the product against current leaders, fully satisfy a greater set of customers, and further distinguish the functionalities of the product. IS PRODUCT GROWTH REASONABLE? WHAT DO YOU THINK? YOU NEED TO LOOK FORWARD AND MAKE A CALL.

MARKET SIZING

Since our Series Seed Invesment Memo, we believe there have been no significant changes in market size other than consistent, expected growth. Drawbridge Networks is combining two security solutions, so the market size is relatively new and hard to define. Broken down, Drawbridge Networks is addressing three individual sub-sectors within security, Endpoint Protection, Intrusion Prevention Systems (IPS) and VPN / Firewall. 2016 market size estimates remain at $3.6B, $1.3B and $9B respectively and we did not notice any substantial change to numbers ona go forward basis since our last investment memo. Gartner expects Endpoint Protection and VPN / Firewall segments to continue to grow at CAGR of 3.0% and 8.2% respectively until 2018. IPS however, is continuing to decline at a 6.9% rate, because of the movement away from intrusion protection and towards detecting and managing actual damage. We believe that Drawbridge Networks is well positioned and is operating in an immense and growing market where even taking a small share of the yearly spend will result in a major business. Network security is growing more and more complex as users are utilizing a wide variety of devices in their day-to-day operations within the enterprise. Each endpoint poses a potential risk to the network. The seismic shift in device usage is continuing and gaining mainstream acceptance within the business and IT communities. However, legacy security companies are lagging in their efforts to address this BYOD (Bring Your Own Device) trend. As more and more connected devices and device infrastructures are implemented, companies will require security solutions to protect their networks, and this growth will benefit Drawbridge Networks specifically as an emerging player. We also believe that the team at Drawbridge Networks has identified several key verticals that have sizable IT spend like financial services, retail, industrial, technology and healthcare. In addition, many of the same markets are facing catalysts for a major security systems overhaul due to recent widely publicized data breaches and regulatory pressures. IS MARKET SIZE GOING TO STAY THE SAME? WHAT DO YOU THINK? YOU NEED TO LOOK FORWARD AND MAKE A CALL.

COMPETITION

Microsegmentation continues to be essentially a new market, with Drawbridge Networks still competing most closely with Illumio and vArmour. We note that both of these companies came out of stealth in the past year and the products are largely in line with our existing due diligence. Other legacy security players who continue to enter this market are Cisco and VMware, but their offerings remain highly limited to the implementation hardware or platform. Carbon Black (formerly Bit9) is somewhat a competitor in the general market, but

CONFIDENTIAL

focuses more on a forensic value-add, providing features that help find the source of a damaging process. They are not really a player in the microsegmentation space. Additionally, the top two competitors (Illumio and vArmour) do not support desktops, MacOS, and do not model user behavior or change policies dynamically. Desktops are involved as the initial point of compromise in 95% of attacks, and Macs are rising in both attack rate and protection importance. Policies change with user behavior, and the Drawbridge product is built on the thesis that user behavior is deterministic, so modeling that behavior has a direct value-add towards judging malicious processes. We feel that these primary observations continue to set Drawbridge Networks apart from even its closest competitors, and insulate its growth at least in the near-term.

Updated competitive landscape, including microsegmentation industry

The above image and following page lays out our continued due diligence into the competitive landscape within this market. As noted above we still believe that Illumio and vArmour represent real and serious threats to Drawbridge Networks with some of the larger companies like Cisco and VMware nipping at the heels of the microsegmentation vendors.

There also exists several sizeable traditional players in the legacy security space, some of which are trying to bridge the gap into Software-defined, endpoint protection products. Their product offerings tend to be fairly nascent, underdeveloped, and lack a significant following. A good example of one of these legacy extensions beyond VMware and Cisco is Symantec Endpoint Protection: their product includes a standard suite of security tools including firewall and anti-virus/malware along with their endpoint offering. Their product installs as a Windows application, only works on Windows platforms, and does not use Microsegmentation. Although legacy players may be further incentivized to join this trending space of endpoint protection, we feel that the most common decision would be to buy rather than build such a product, especially due to the high costs of developing such a product without in-house expertise.

IS COMPETITION GOING TO STAY THE SAME? WHAT DO YOU THINK? YOU NEED TO LOOK FORWARD AND MAKE A CALL.

CONFIDENTIAL

Focus Company Competitive PositioningData Defined

Perimeter Security

vArmour Delivers threat analytics through real-time detection and visualization of laterally moving threats Uses business-process-aware remediation policies to contain compromised hosts and prevent exfiltration Offers Microsegmentation and policy enforcement to isolate and control communications between applications, workgroups, and tenants Does not support Desktop, Mac OS and two factor authentication No user behavior modeling, and does not dynamically change traffic

Adaptive Security

Platform for Endpoints

Illumio Secures enterprise applications in data centers and private, public, or hybrid cloud environments by decoupling security from the underlying infrastructure.

Displays visualization of applications and workload interactions with a graphical view of application topology Uses workload context and natural language policies to compute security for workloads only on VM or physical servers Encrypts data in real time in transit between applications without network changes or new hardware Periodically polls for new policies Does not support Desktop, Mac OS and two factor authentication No user behavior modeling, and does not dynamically change traffic

Virtual Machine mediated

VMware NSX: provides detection and response through end-to-end traffic only between virtual machines Does not support two factor authentication No user behavior modeling, does not dynamically change traffic

Host-specific Detection and

Response

Cisco Application Centric Infrastructure: requires full upgrade of networking hardware Targets detection and response between hosts, so each device is not protected Does not support two factor authentication No user behavior modeling, does not dynamically change traffic

Software Defined

Perimeter

Vidder Uses per-application VPN to mediate access May be a future competitor due to VPN overlap Does not model user behavior and use dynamic policies

Endpoint Protection and

Attack Forensics

Carbon Black Provides real-time threat prevention/detection/response system for endpoints, servers, and fixed-function devices Allows detection and response features for real-time visibility (without sweeps) into files, executions, network connections, and critical

system resources on all machines and the connections between them Creates documented history to see attack’s full “kill chain” Mainly competitive in the visibility feature, but does not support desktops Only fixed user policies, and polling of agents to check if policies need to be applied Does not support two factor authentication No user behavior modeling, does not dynamically change traffic

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SALES & MARKETING

Arguably the biggest let down Since our Series Seed Investment Memo as been progress on the sales and marketing front. The company set out to achieve a number of proof of concept customers as well as paid pilots already in place by the time of the next round of financing. We did not see any substantial progress throughout the first year of operations and believe the company is still well behind on the sales and marketing progress. However, on a go forward basis the company has done three main things to help achieve success in the next twelve months. First, the team has gotten tighter with sales qualification, CRM and data entry, identifying the right buyer personas, and built out several other areas of sales infrastructure to help build success in the next year. Second, the team brought on a sales advisor in Ken Pouliot who formerly was the RVP of the East at Box. At Box Ken was largely responsible for closing many early customers and proof of concept installs such as GE and Home Depot. He will provide weekly support and sales coaching to the executive team. Third and final, the Drawbridge Networks team has also built a “top 100” leads and account based approach and will focus heavily on a group of targeted accounts for 2016. Within this will be a much more rigorous approach to proof of concept customers. We believe this is the right approach and will help showcase a larger volume of attention and hopefully customer wins in a year.

Relative to current pipeline, below are the current Beta Program Participants as of Q4 2015. The Beta Program participants were companies who would benefit from the product and had the time to test it out and generate feedback to Drawbridge. Drawbridge will move Beta Program participants to production after testing in the lab for under 3 months. For the participants who were a little slow as mentioned above, Drawbridge will roll out a new POC process to better qualify clients.

In the next 18 months, the team expects an increase of the current client endpoint installations and the addition of 6 new clients, totaling to $340k in ARR for fiscal 2016. We believe this approach is very feasible and have done our internal pipeline walk through with the team. Beyond the initial beta participants, the Drawbridge

CONFIDENTIALNetworks team will also begin to think about scaling on the sales front and building additional pipeline. In 2016 Xavier Ashe has been tasked with several marketing initiatives including getting a new version of the website up and running, completed 5 case studies with existing clients, identifying and helping John and Tom speak at key conferences such as RSA, and finally building some content marketing related initiatives to grow the overall pipeline. John, Tom, and Xavier will continue to sell through the first 50 customers depending upon deal size and management has indicated thereafter it will look to bring on an Account Executive to really help sell the product at scale. We believe this will come at or around the time that the company is thinking about the Series A financing. While the biggest hang-up from Series Seed to Series Seed Extension has clearly been the sales and marketing efforts we believe that the management team is doing all it can and making the relevant changes to ensure success on this front for 2016 and 2017.

FINANCIAL, VALUATION & RETURNS

Our Series Seed Investment Memo did not include substantial financial data or metrics however since our Series Seed Investment Memo Drawbridge Networks management has shared a preliminary operating plan that we believe is achievable and will position the company well for a strong Series A raise in approximately 18 months.

P&L Analysis

The company projects that by the end of Q4 2016 it will have 6 customers at an ACV of approximately $57k. Management aims to achieve a customer base of 22 by the end of 2017, by then at an approximate ACV of $28k, representing $750k in booked ARR. See Appendix I for the detailed 18-month forecast summary of Drawbridge’s 5-Year Projected P&L. We believe that the plan set forth by Drawbridge Networks management at this stage is entirely feasible from both a market comparable and industry standpoint. The milestones from the Series Seed Investment Memo were not achieved because of a longer development cycle and a lack of understanding of the customer sales cycle. The initial target form the Series Seed Investment Memo was to secure 10 small (100 devices) customers at a price point of $50 per device, and 5 medium-sized customers (1000 devices) at $35 per device. To date, the customers that have been secured have been accepting of a per-device price of around $20, which is a reflection of both the early stage of such a new market, and the need to prove the criticality of such a security concept. The timeline for beta launch was delayed by 1-2 months, and the customer deals were met with some additional needs for product iteration with the initial customers, which brought the sales cycle to November. At that point, few clients wanted to make large budget decisions that close to the end of the year. In the next 18 months, the team expects an increase of the current client endpoint installations and the addition of 6 new clients, totaling to $340k in revenue for fiscal 2016.

With confidence based on pre-negotiated deals, the revenues for the next 18 months are a reflection of the learnings from the period after the Series Seed Investment Memo. Two things have changed in the perspective of the founders on the customers they are selling to: the onboarding process will take some initial hand-holding to convince the IT security team of the value and compatibility, and the pricing per device is $20 for at least the near-term. We see this reflected in the next six booked customers for the term until the next raise:

June 2016: $120K, single client, with 6-7K devices annual recurring numberJuly 2016: $20K, two clients, 20K each, 500-1000 devices per clientSeptember 2016: 50K, single client, not final on device numbersOctober 2016: 50K, single client, baseline estimate of contract numbersNovember 2016: 100K: single client, baseline estimate of contract numbers

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On the cost side, the burn rate as expected is $100K per month, mainly due to wages, and we see there are two new hires: one developer and one go-to-market professional, to increase the feature offering and continue launching the current viable product. Based on the private companies in the competitive landscape, who have raised large follow-on rounds in the past year, we believe that Drawbridge is entering this market at the right time, and has the potential to exploit its differentiation from its competitors in a large way. Using the same comparable endpoint-based annual subscription model as in the Series Seed Investment Memo, the target recurring revenue for 2019 has been scaled down to $12MM. We now have proof that several clients accept this pricing and there so far has been no churn.

Public & Private Market Comparable Analysis

Put in color commentary on this…

Valuation & Returns Analysis

To determine an appropriate exit multiple by which to value Drawbridge Networks for the purposes of our returns analysis, the Bowery team searched a wide range of publicly traded comparable companies and precedent M&A transactions. As outlined in our Competition section above, the purest comps are mostly still private (Illumio, vArmour, and Carbon Black), or not pure play competitors (Cisco and VMware). Thus, we used a general M&A set and public comparables set to analyze the exit multiples that could be probable for this business.

If Drawbridge is able to execute on the go-to-market plan outlined in above sections, we believe the company can generate substantial revenues over the next 5 years, and accordingly forecast year-end 2020 revenue of ~$22MM. Applying the results of our Comparables analysis, we believe Drawbridge could exit at 4.76x EV / LTM Revenue. Although there has been a recent lull in the exits and exit values as of late, we believe that by 2020, the cyclicality of this market will be reflected in a more positive exit environment, and attaining a ~5x multiple will be quite feasible. Such an exit would generate a total exit proceeds opportunity of ~$102MM for Drawbridge, yielding roughly $5.7MM of returns to Bowery per our returns analysis (given a projected ownership-at-exit of 5.58% FDSO assuming deployment of $1.3MM in reserves in future rounds). Such an outcome would return more than 10% of Bowery Capital’s fund, a cash-on-cash return of 2.4x and an IRR on the transaction of 20%. If we are less conservative with our revenue growth and use M&A comps like Stonesoft, who is a legacy firewall and cybersecurity player, that would bring us to almost double the exit value. Furthermore, we strongly believe that Drawbridge Networks has the power to grow its revenue faster than the forecasts predict, due to greater awareness of the new microsegmentation market, and as it gains critical mass from industry thought and the customer base. Please see Appendices I-III for further detail.

CONFIDENTIALWHAT IS THIS? NEEDS TO BE IN AN APPENDIX, NO?Drawbridge Revenue Forecast

Per Device Deal Size (thousands) 2015 2016 2017 2018 2019Small (100) $50 $5 2 5 10 20 50

Medium (1,000) $35 $35 1 9 20 35 50Large (50,000) $10 $500 5 10

Mega (1,000,000) $5 $5,000 1Total Customers 3 14 30 60 111New Revenue $45 $295 $410 $3,075 $8,175Recurring Revenue $45 $340 $750 $3,825 $12,000

Drawbridge Financial ForecastYear 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024DrawBridge Networks

Total Customers 3 14 30 60 111 217 433 819 1434 1980New Revenue ($MM) $0.05 $0.30 $0.41 $3.08 $8.18 $11.70 $15.59 $19.60 $22.26 $25.19Recurring Revenue ($MM) $0.05 $0.34 $0.75 $3.83 $12.00 $21.51 $34.19 $50.13 $68.23 $88.72New Revenue Growth 556% 39% 650% 166% 43% 33% 26% 14% 13%Recurring Revenue Growth 656% 121% 410% 214% 79% 59% 47% 36% 30%

Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Palo Alto Networks 2009 2010 2011 2012 2013 2014

Sales $13.35 $48.78 $118.60 $255.14 $396.11 $598.18Sales Growth (%) 265.35% 143.12% 115.13% 55.25% 51.01%

Year 7 Year 8 Year 9 Year 10FireEye 2010 2011 2012 2013

Sales $11.77 $33.66 $83.32 $161.55Sales Growth (%) 186.09% 147.54% 93.90%

CONFIDENTIALAPPENDIX I: 18 MONTH P+L

$ in 000s Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16 Oct '16 Nov '16 Dec '16 Jan '17 Feb '17 Mar '17 Apr '17 May '17 Jun '17 18 Months

Revenue 120 20 50 50 100 340

Salaries & Benefits

CEO 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 234

CTO 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 288

VP Dev 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 270

Devs (4) 47 47 47 47 47 47 47 47 47 47 47 47 47 47 47 47 47 47 846

New Devs (2) 15 15 30 30 30 30 30 30 30 30 30 30 30 30 30 420

Total Wages 91 91 91 106 106 121 121 121 121 121 121 121 121 121 121 121 121 121 2058

Expenses

Office & Cloud 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 180

Legal & Contractors 5 5 5 5 55 5 15 5 5 5 5 5 5 5 5 5 5 5 150

Marketing 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 75

T&E 1 1 3 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 35

Misc 2.5 3 3 9 3 3 3 3 3 3 3 3 3 3 3 3 3 3 51

Total Expenses 18.5 19 21 31 75 25 35 25 25 25 25 25 25 25 25 25 25 25 491

Investment -1750 -1750

Cash 236 236 17 1,544 1,271 910 739 448 157 -84 -325 -516 -807 -1,098 -1,389 -1,680 -1,971 -2,262 -2,553 -459

CONFIDENTIALAPPENDIX II: RETURNS ANALYSIS Figures in 000sAssumed Date of Exit 12/1/2020Projected 2020 Revenue $21,515EV / Rev Multiple 4.76xTotal Exit Proceeds $ 102,355Bowery Ownership at Exit 5.58%

Exit Proceeds $5,711

Bowery Capital Seed Bridge Series A Series B Series C Exit IRR COCRDates Nov-14 Mar-16 Feb-16 May-17 Aug-18 Dec-20Cash Flows -$600.00 -$500.00 -$526.32 -$750.00 $0.00 $5,711.40 20% 2.40x

Bowery Fund Size $33,000EV on Exit to Return Fund $591,398EV / Revenue Multiple 4.76xImplied Revenue $124,310

Cash-on-Cash Return Sensitivity Table IRR Sensitivity TableEV / Revenue Multiple EV / Revenue Multiple

240% 2 3 4 5 6 20% 2 3 4 5 620,000 0.94x 1.41x 1.88x 2.35x 2.82x 20,000 -0.01x 0.07x 0.14x 0.19x 0.24x50,000 2.35x 3.52x 4.70x 5.87x 7.04x 50,000 0.19x 0.30x 0.37x 0.44x 0.49x

100,000 4.70x 7.04x 9.39x 11.74x 14.09x 100,000 0.37x 0.49x 0.57x 0.64x 0.70x250,000 11.74x 17.61x 23.48x 29.35x 35.22x 250,000 0.64x 0.78x 0.88x 0.96x 1.03x400,000 18.79x 28.18x 37.57x 46.96x 56.36x 400,000 0.80x 0.94x 1.05x 1.14x 1.21x

Reve

nues

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CONFIDENTIALAPPENDIX III: PRO FORMA & PROJECTED CAPITALIZATION TABLESNEEDS TO BE IN SAME FORMAT AS OTHERS – NOT THE SAME

CONFIDENTIALAPPENDIX IV: COMPARABLES ANALYSES (PUBLIC & PRIVATE)

Public CompsEnterprise LTM EV / LTM

Ticker Company Value ($M) Revenue Revenue

CybersecurityFTNT Fortinet $ 3,377 $ 685 4.9xPANW Palo Alto Networks $ 7,199 $ 598 12.0xCUDA Barracuda $ 1,375 $ 255 5.4xIMPV Imperva $ 596 $ 148 4.0xSYMC Symantec $ 13,553 $ 6,702 2.0xTSE:4704 Trend Micro $ 3,220 $ 1,044 3.1xMOBL Mobile Iron $ 542 $ 114 4.8xSWI SolarWinds $ 2,996 $ 382 7.8xPFPT Proofpoint $ 1,336 $ 180 7.4xBLOX Infoblox $ 507 $ 250 2.0xRDWR Radware $ 551 $ 205 2.7xFEYE FireEye $ 3,479 $ 268 13.0xCHKP Check Point $ 11,452 $ 1,436 8.0xQLYS Qualys $ 834 $ 119 7.0xCSCO Cisco $ 106,780 $ 49,590 2.2xVMW Vmware $ 15,810 $ 6,650 2.4x

Mean 6.0x

Median 5.2x

M&A TransactionsAnnouned Enterprise EV / LTMDate Target Acquirer Value ($M) Revenue

Cybersecurity

1/2/2014 Mandiant FireEye $ 844 8.10x

12/23/2013 Dynamics Research

Engil ity Holdings $ 204 0.7x

10/9/2013 Six3 Systems CACI $ 780 2.3x

8/15/2013 Trusteer* IBM $ 850 21.3x

7/23/2013 Sourcefire Cisco $ 2,394 8.9x

7/9/2013 Stonesoft McAffe $ 387 7.6x

5/20/2013 Websense Vista Equity Partners $ 1,054 2.7x

12/18/2012 Cariden* Cisco $ 141 9.4x

12/5/2012 Endace Emulex $ 76 2.8x

10/29/2012 OPNET Technologies

Riverbed Technology $ 994 5.0x

7/2/2012 BreakingPoint Ixia $ 159 3.7x

4/16/2012 LogLogic* Tibco $ 130 6.2x

7/25/2011 Paradigm Holdings

CACI $ 62 1.4x

4/1/2011 SRA Providence Equity Partners $ 1,886 1.0x

3/3/2011 Sotera Ares $ 313 1.3x

2/14/2011 Hughes Communications

EchoStar $ 2,124 1.9x

2/2/2011 M2M Communications

EnerNOC $ 33 6.1x

10/18/2010 Anakam* Equifax $ 64 7.6x

Mean 5.4xMedian 4.4x

CONFIDENTIALAPPENDIX V: MARKET SIZING ANALYSIS

WHERE IS THIS? IF NONE TAKE OUT

CONFIDENTIAL

APPENDIX VI: PRODUCT SCREENSHOTS

WHERE IS THIS? IF NONE TAKE OUT

CONFIDENTIAL

APPENDIX VII: BOWERY CAPITAL THESIS SLIDE – DRAWBRIDGE NETWORKS