Validating the Market Effective Partnerships Making Money in Japan Financing Growth Back	Why a Subsidiary is Important • Hands-on presence reassures customers, resellers, and prospects • Local activity creates market visibility and credibility • Enables disciplined and accountable channel strategy • Recruit higher quality professionals • Offer employees subsidiary options • More attractive benefit plans available • Cost of capital in Japan typically lower than in the U.S. • Allows partners to participate in local equity and aligns their economic interests with their strategic interests • Competitive advantage given many other entrants choose limited reseller or branch operation • Better market intelligence and capability to quickly adjust to changing market or competitive conditions What We Deliver JVP serves as the start-up Country/Sales Manager • Quick start • Seasoned experience growing and managing Japanese and Chinese subsidiaries • Lower risk and cost than recruiting expatriate or recruiting quality local entrepreneur • Capability to recruit seasoned sales and technical support professionals in short time-frame to staff the subsidiary Day-to-day management activities • Sales and marketing, including forecasting, joint sales calls, pulling-in new revenue opportunities, public relations, new product education and training of channel partners and new customers • Financial, regulatory and administrative services to establish and operate the subsidiary Financing the growth of the subsidiary • JVP sources working capital requirements for the subsidiary • Structure equity investments from Japanese strategic partners and Japanese venture investors • Alternative structures for private and public clients • Allows clients to retain financial and operating control of the subsidiary • Provides Japanese IPO opportunity for certain situations • Low cost of capital