jSpan Corporation (jSpan), is an Application Service Provider(ASP) that provides Internet-based remote access to professionals and small businesses. The Webtop interface, which is part of jSpan, allows users to merge legacy systems, web applications, and value-added solutions into one workspace. jSpan is able to distribute other application service providers through the Webtop interface, as well as infrastructure built at partner ISPs. jSpan uses the boom in remote access and the industry trend to outsource IT applications, to benefit from the increased demand.

Private investors have contributed $500,000 to jSpan Corporation. The funds are being used to launch an initial test market deployment, complete the management team and license key technologies. The company is currently seeking an additional $3.2 million through the issuance of Series A Preferred equity. These funds will be used to support a full-scale product launch within six months from the closure of funding.

Business Model

jSpan provides remote access services through partnerships with Internet Service Providers (ISP), broadband wholesalers, and other network service providers. Remote access can only be achieved through an Internet-based Webtop that aggregates applications and links to other Internet locations. The primary source of revenue is via a per-user monthly subscription. The revenue stream can be expanded to include transaction fees and syndication fees by purchasing premium subscriptions or value-added services.

Co-marketing and revenue sharing agreements are key to customer acquisition. Direct marketing to end users (advertising, promotions) will be used in order to increase customer awareness and solidify the jSpan name. The jSpan brand will be strengthened by content syndication via partnerships with Internet content providers, product manufacturers, and service providers.

Opportunity

Remote access to vital business information is increasingly demanded because of the flexible work environment and mobile workforce. Forecasts estimate the mobile workforce in the United States alone will exceed 47 million employees four years from now. Independent professionals and small- to medium-sized businesses need to adopt mobile computing devices in order to remain competitive. However, they lack the financial and technical resources to implement remote access solutions.

Professionals adopt a work style that requires multiple access to office applications. As of last year, approximately 23% of home Internet users brought office work home on nights and weekends while another 17% used the Internet to run a home-based business. The number of telecommuters is on the rise, with 9.7 million people now using the internet to work from home.

Access Media International estimates that $138 billion was spent by small businesses last year on information technology and telecommunications. Businesses seek technology solutions that maximize the use of a smaller employee base while addressing a larger market. This is why more companies are outsourcing their technology services.

Product

jSpan offers remote access from a universally accessible webtop. Virtual Private Networking is used to establish a secure link to remote target systems. Combining these technologies reduces the need for expertise and expense to configure remote access solutions. Access can be made via xDSL (T1) or cable modems. The result is a secure Internet hosted Webtop with functionality similar to an office workstation. jSpan will be able to quickly enter the market by taking advantage of the existing core technology. Premium subscriptions and value-added services will increase the customer’s value proposition over time.

Financial Analysis

Gross revenue is based upon per user revenue of $21.25 monthly. It is forecast to reach $422 millions by the end five years of operations. International Data Corporation’s projection of mobile workforce size as a target market. There are additional market opportunities for the enterprise or consumers, and international expansion could significantly increase the market potential.

jSpan consolidates the fragmented market for independent businesses and professionals. This makes it a potential acquisition target to corporations offering goods and services in this market segment. Based on a $450 acquisition cost per user, management estimates an acquisition valued of $105 millions at the end-of-year three. This will rise to over $1 million by the time of year five.

Management GroupjSpan has assembled a team consisting of both technical and experienced managers. John Millar & Kim Niquette, founders, have extensive experience in management of high-growth technology businesses and international entrepreneurial organizations. jSpan’s technical staff includes people who have had software development and operational experience with Raytheon Corporation, Sun Microsystems, Raytheon Corporation, as well as a range of start up ventures. Additional senior managers have been identified and plan to join the team subsequent to a major funding event. jSpan also has a strong advisory panel that includes leaders in the professional services industry and experienced entrepreneurs.

John G. Millar Co-Founder and CEO

Kim Niquette is Co-Founder and Chief Financial Officer.

Norman Walters is the COO.

Carlos Garcia, Technology Specialist.

Board of Advisors

Joseph Addison (Co-Founder, CFO of StartABusiness.com)

James Smith is Vice President of Business Development, Exodus Networks.

Michael M. Rodgers, Partner at Watson, Sonoma, Goodson & Rodgers.

Peter J. Wilson, Director of Business Development at Advanced Network Communications.

Additional biographical information on the Management Team and Board of Advisors may be found in topics 7.1 and 7.2 respectively.

1 “Where’s the Office? U.S. U.S.

² “Online Nation: 1998 U.S. Internet User Survey”, International Data Corporation, 1998.

Where is the Office? U.S. U.S.