Deck sample 1

I n v e s to r p r e s e n tat I o n

security as a service

Bridging the GAP Between Cloud Service & Managed Security Providers

Presented by Moses Mendoza ( Founder)

www.wolfesec.com

I n v e s t o r p r e s e n t a t I o n

Confidential Information

The presenter is providing this confidential information regarding Wolfe Technologies & Consulting Corporation (“WTC” or the “Company”). Interested parties will be provided an opportunity to meet with management and conduct such additional, reasonable investigation as is necessary and appropriate for the purpose contemplated herein.

This Information Memorandum is the property of WTC and is to be considered strictly confidential. It contains information intended only for the person to whom it is transmitted. With receipt of this information, recipient acknowledges and agrees that i) in the event recipient does not wish to pursue any proposed business relationship with WTC Corporation, this document will be returned to the address listed above or destroyed as soon as possible, ii) the recipient will not copy, fax, reproduce, divulge, or distribute this confidential plan, in whole or in part, without the express written consent to WTC, iii) all of the information herein will be treated as confidential material with no less care than that afforded to your own company’s confidential material. This document does not constitute an offer to sell, or a solicitation of an offer to purchase securities.

For more information please contact: optima Law Group


table of

Contents


Growth Plan 10

Projections 15

Companyoverview

Wolfe has been established as a Next Generation Secure Cloud Service Provider (CSP). The traditional business model with CSPs is based on silos while relying on Managed Security Service Provider (MSSP) community for in-depth security. MSSPs rarely own enterprise grade IaaS and rely on “boxes” or proprietary apps to offer

“security services” with limited security services. Based on the huge knowledge and cultural difference between the two layers, it forces enterprises of all sizes to have multiple vendors, SLAs, and a conveluted coordinated approach to security.

Wolfe being security breed from inception decided to take a holistic view of the global network and deliver a security and compliance solution and wrap it around the infrastructure, in order to offer a comprehensive suite of managed security and infrastructure services that matches the business drivers of the client. This disruptive approach to the industry has allowed us to extend and adapt our offerings to multiple verticals in a flexible and strategic manner without fear of compromising performance.

By giving enterprises the platform they need to understand, optimize, and consolidate their IT, we help enterprises to build a secure, fast, fluid and dynamic IT architecture that aligns with the business needs of the organization.

There is a great need for end-to-end security and infrastructure. By Wolfe addressing all service categories of Security as a Service(SECaaS) outlined by the Cloud Secruity Alliance, utilizing best in class technology, proprietary applications, and an ITIL-based workflow process; Wolfe is able to offer one of the most comprehensive Secure Infrastructure as a Service offerings in the industry.

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Business name:

WOLFE TECHNOLOGIES & CONSULTING LLC

Business address:

2911 TURTLE CREEK BLVD, STE 300, DALLAS, TX 75219

Phone: 210-705-9958

Fax: 844-WOLFESEC

projected annual sales 2014: $1.1M

total number of employees:

7 FT, 25 Sub-C

primary Line of Business:

Cloud Computing

exeCutivestaff

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Founder & Ceo

Moses Mendoza

20 years of industry experience in various security roles at key US Federal Intel Agencies. Drives the strategic direction of Wolfe. Led complex cloud and security programs; and managed multiple Fed Contracts in excess of $1B.

Director of Finanace

Judy Wolfe

35 years operating experience across various industries. Responsible for financial direction of Wolfe to include corporate portfolio management and capital allocation. Founder and CFO of Above All Produce and AAP Investment Group

Co-Founder & Cto

aaron torres

20 years security engineer and architect for the largest names in the security industry. The creator and driver of taking true “cloud security” to the marketplace.

Coo / CBDo

Chuck smith

20 years of technology services experience to Wolfe. Chuck was the founder of Horizon Data Center Solutions (rebranded Vazata) a data center and cloud services company.


key faCts

Highlights

• The first to bridge IaaS and MSSP gap

• Launched brand in 2009

• Steady growth and traction since inception

• Industry Leading Executive Team

• Bootstrapped

• Laid foundation and market tested

• Goal: 80/20 of ARR

• Average Contract Length is 24 Months

• Reside In Two Tier III Data Centers

• Add POPs in NOVA, CO/LV, IN/MI

Competitive advantage

• Revolutionize MSSP/IaaS divide by bridging gap

• Proprietary Next-Gen Cloud Security Solutions (CS2™)

• End-to-end security, not simply monitoring boxes.

• Proprietary security portal for Public & Private.

• Actionable Intelligent Reports with remediation.

• CISO friendly, complete situational awareness

• Single POC for Cloud & Security Services

• Integrated Partner; extension of IT Department


3

historytime line

1

09 10 11 12 13 14

Founded Fortinet Partnership

SecurityContract

Virtual Services

Expansion Expansion

Period Period

Period Period

S-laaSLaunch

EnteredFederal Markets

DatabankPartnership


4

AwardedDIR/ TIPSContracts

Coreoffering

security

as a service

Wolfe sIeM services

serviCes

Wolfesec

& aWs

Consulting &

pro servicess-laastM

Comprehensive suite within the Wolfe Secure data centers and network (On WolfeSecNet) and on clients’ premise

(Off WolfeSecNet).

Secure-Infrastrcutre as a Service

Where Wolfe wraps our unique security architecture around the Infrastructure, offering clients a fully secure end to end environment.

Our Cloud SIEM provides a comprehensive, unified way to monitor, manage IT Risk, Compliance, and optimize customer IT services

Wolfe’s partnership with AWS allows Wolfe’s SECaaS & SIEM Services to leverage AWS clientele and provide a fully secure cloud environment

Wolfe’s offering of highly experienced subject matter experts to fill in those gaps


5

traCtion

SLED 60%

Energy (Oil Gas Power) 20%

Telco 15%

Entertainment 02%

Logistics/ Retail 02%

Federal 01%

wolfe traCtion aCross key


6

marketvalue

Researcher IHS Technology expects spending on cloud infrastructure and services to hit $174.2 billion in 2014, up 20 percent from $145.2 billion last year.

It expects this growth rate to continue with enterprise spending on cloud to soar to $235.1 billion by 2017. That would be triple the amount spent on cloud ($78.2 billion in 2011.)

According to Gartner Research, cloud computing will be one of the most transformational technologies in the next five years. Cloud computing is expected to become main-stream in two to five years. In addition, according to Network World,

“cost-savings, compliance, and offloading busy-work” are three major reasons why an increasing number of enterprises are turning to managed security services providers.

Through the cloud, this provides an added revenue stream by allowing customers to enlist in things like network monitoring, continuous compliance, and security reporting analysis.

Why Invest in the Company:

Wolfe has spent the last 5 years watching the trends, analyzing the markets, and building comprehensive flexible cloud offerings that make infrastructure and security consumable as a service together through 1 Provider, 1 SLA, 1 True Secure Cloud. This unique opportunity for investors is backed by a solid team of proven, dedicated, and innovative professionals who have a strong vision for the cloud future. Wolfe’s offerings open up a new market segment that lends itself to multiple revenue streams, on or off WolfeNet. Virtualization, Cloud, SIEM, and Log Management are more complex. Requirements to centrally collect, analyze and maintain, and enhance efficiencies in security, forensics, compliance, and operations continue to grow exponentially. Multiple acquisition opportunities by industry players such as AWS, Data Bank, Rackspace,CSC, Raytheon, Tripwire, Magesry, or Fortinet.


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marketvalue

According to a Gartner market analysis report on cloud services over 2012-2016, cloud infrastructure as a service (IaaS) spending will exceed $72 billion, with a compound annual growth rate (CAGR) of 42 percent

Frost & Sullivan predicts that the market for Managed Security Service Providers (MSSP) will grow from $6.66 billion in 2011, to $15.63 billion by 2016, driven by the increasing complexity of security threats.

The total SIEM market to grow from $2.57 billion in 2014 to $4.54 billion in 2019 at a CAGR of 12.0% during the forecast period

IaaS

MSSP

SEIM


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revenuemodel

Security

as a

Service

S-IaaS SIEM Services

Consulting / PS

Channel Partners

Hardware

45% 30% 10% 10% 04% 01%

9

growthplan

WOLFE TECHNOLOGIES & CONSULTING 3 PHaSE GrOWTH PLaN

Along its three-phase time-line, Wolfe Technologies & Consulting intends to hit a

number of operational benchmarks critical to the success of the

phase I - (next 12 - 24 Months)

• transition the team & Build Core Business Base

phase II - (24 - 48 months)

• Leverage the Brand

phase III - (48 - 84 Months)

• Dominate market


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phase 1


Key Milestones strategic Focus operations and organization revenues Margins

1. Fully Engage Team • Secure Key sales hires • Sales Force/CRM – target market sales force

• $2 – 5M within 2 years • $1M – 2.5M

2. Achieve profitability of Core • Secure service delivery hires • WUSA™ & WCSP™ Technology backroom • $2-3M within 1 year

3. TOLAN & Mid-Atlantic Footprint • Transition Executive team • 8A certification

4. Secure R&D resources • Build Core base • Service disabled

5. Establish federal footprint • Expand Reachability • HUB certification

6. Launch / Integrate WCSP™ • Invoke Marketing Strategies • GSA/First Source (Federal)

7. Beta 1 WUSA™ • Key SLED contracts • Strong governance board

8. Establish Intl footprint • Upgrade Data Center • Accounting management & QA/QC

• Expand Federal Space • RFP quality

• Secure IP patents

• Secure R&D team

• Alliance partnership for IP

• Proof of Core value in target markets

TraNSITION THE TEam & BUILd COrE BUSINESS BaSE(NExT 12 - 24 mONTHS)

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phase 2



• Rollout IP • Build industry presence (demand base) • Expanded partnerships • $10 - 15M • $5 - $8M

• Series B • IP inside core customer base • S&E by industry verticals (strong sales)

• Acquisition Targets • Obtain Funding • Account management

• Dominate TOLAN targets • Leverage Acquisition • Strategic office presence

• Substantial footprint Mid-Atlantic

• Optimize Core sales and delivery • Training/knowledge transfer

• Steady Intl footprint • Expand Reachability • Mentoring and growth

• Add 2-3 POPS • Leverage certs and relationships in Fed space

• Steady growth Federal • Open 2-3 new verticals

• Open New Target Markets (Southwest),(Mid-West),(East)

• Market events and Trade Shows

• IP Version 2

LEvEraGE THE BraNd (24 - 48 mONTHS)

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phase 3



• Broaden IP marketplace • Rollout v2 of IP • Support alliance/channel partners • $21 - $41M • $11 - $21M

• Substantial Intl footprint • “Test” acquisition market • User input on development

• Dominate 3-5 industry verticals • Monetize mature business lines • Sale to industry silos

• Expand Reachability • Enhance IP for v3

• Monetization options for IP

• Entertain early acquisition

• IP v3 development

dOmINaTE markET (48 - 84 mONTHS)

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finanCial


PaST PErFOrmaNCE

p/l 2010 2011 2012 2013 2014

Revenue $54,690 $25,084 $189,738 $438,885 $1,137,648

Gross Margin $23,206 $17,885 $122,282 $265,535 $694,093

Gross Margin % 42% 71% 64% 61% 61%

Operating Expenses $35,327 $35,701 $71,378 $235,707 $235,707

Net Profit ($12,121) ($17,816) $50,904 $29,828 $458,386

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finanCial


SIx yEar PrOjECTION

p/l 2015 2016 2017 2018 2019 2020

Total Revenue $2,220,063 $10,539,455 $15,257,511 $21,581,791 $29,065,784 $41,437,605

Growth % 95% 375% 45% 41% 35% 43%

Growth Margin % $2,678,916 $6,391,509 $11,238,942 $15,752,556 $18,706,081 $18,706,081

Operating Expenses $2,181,722 $2,933,628 $3,550,221 $4,351,264 $5,017,664 $7,301,749

EBITA $521,097 $3,483,430 $7,715,957 $11,430,194 $13,718,986 $13,718,986

net profit $493,577 $3,454,432 $7,685,494 $11,398,280 $13,685,637 $13,685,637

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use of proCeeds


Wolfe Investment allocation of Funds annual Monthly

Technology Equipment 450,000.00 37,500.00

Marketing 480,000.00 40,000.00

Operations 550,000.00 45,833.33

R&D 430,000.00 35,833.33

Personnel/Payroll 1,700,000.00 141,666.67

G&A 613,000.00 51,083.33

Travel Expenses 225,000.00 18,750.00

Contingency 250,000.00 20,833.33

WOLFE IS SEEkING $4-7mm TO FUNd ExPaNSION OF THE BUSINESS, aNd TO rECaPITaLIzE PaST INvESTOrS.

rETUrN ON CaPITaL • FOr EaCH NEW POP, WOLFE ExPECTS TO GENEraTE ~$5mm IN rEvENUE, aNd 25-30%

EBITda., UPON FULL UTILIzaTION

• BaSEd ON aNaLySIS, UPON aCHIEvING $41m IN rEvENUE IN yEar 5, COmPaNy ExPECTS TO CONSErvaTIvELy ExIT aT a rEvENUE mULTIPLE OF 4-8x, FOr TOTaL vaLUE OF $164 - 328mm

16

aCquistionstrategy


Target regional players with flat revenue to drive attractive pricing, and limit upfront cash as part of transaction

Future acquisition opportunities include:

• Target 1: SIEM/Log Mgmt Software provider, $3-5mm in revenue

• Target 2: Dedicated and Cloud hosting provider; $3-5mm in revenue

• Target 3: Co-location and hosting provider; $3-5mm in revenue

acquisition to expand offering, upsell existing co-location clients, and become a turn-key provider.

• Acquisition allows for immediate cross-selling capabilities

• Creates a higher recurring revenue base and “sticky” customers

• Adds annual recurring revenue, clients, EBITDA

• High - touch customer service

• Wolfe Integrated Development Enhancements

Acquisition of small-mid-sized VAR or hosting/managed services operation allows immediate conversion of 35%-43% of client base to Wolfe Secure Cloud Services, as clients require higher levels of managed service

01

02

03

04

17

takeaways


Virtualization and Cloud are ever more complex and the requirement for organizations to centrally collect, analyze and maintain or enhance efficiencies in security, forensics, compliance, and operations continues to grow exponentially

SIEMs and Log Management go hand it hand. More logs are being collected from a multitude of different devices/sources and programs while SIEMS make it easier to centrally collect and analyze the data/logs which makes their value increase. But CISOs don’t have the time, money, and expertise to manage and comb through the multitude of logs and reports given by MSSPs and Cloud Providers

By Wolfe wrapping the security around the infrastructure it opens up a new market segment that allows for greater flexibility to integrate managed and security services where infrastructure is deployed, on or off WolfeNet.

Wolfe addresses the issue of how organizations can get value from all these separate solutions that have multiple vendors and SLAs and inefficient coordination to security in a cost effective manner.

Wolfe has spent the last 5 years watching the trends, analyzing the markets, and building comprehensive flexible Cloud offerings that does make infrastructure and security consumable as a service together through 1 Provider, 1 SLA, 1 True Secure Cloud or wherever infrastructure is deployed.”

18

exit strategy


ExIT PLaN: aCqUISITION yEarS 5-7LIkELy aCqUIrEr: CLOUd SErvICE PrOvIdEr, TELCO, dEFENSE CONTraCTOr, mSSP, SIEm PrOvIdEr, aNd daTa CENTEr.


Clo

ud S

ervice Provider, Telco, Defense Contractor, D

ata Centers, MSSP’S, SIEM Provi

ders

}19

Deck sample 1

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