SaaStr Annual 2024: Scaling from $50M to $200M+ ARR: What Growth Investors Look For & How Companies Can Scale with Riverwood Capital

SaaStr Annual 2024: Scaling from $50M to $200M+ ARR: What Growth Investors Look For & How Companies Can Scale with Riverwood Capital

1. Scaling from $50M to $200M+ ARR: What Growth Investors Look For & How Companies Can Scale Matt Harper Investor Riverwood Capital John Yang Investor Riverwood Capital CONFIDENTIAL DOCUMENT: NOT FOR SHARING, PUBLICATION, OR DISTRIBUTION

2. Riverwood Capital A Leading Firm Solely Dedicated to Proven Growth CONFIDENTIAL DOCUMENT: NOT FOR SHARING, PUBLICATION, OR DISTRIBUTION

3. Riverwood Capital at a Glance “Business Builders” mindset with a concentrated portfolio as active and relevant shareholders (lead minority and control); consistent mission and investment strategy since inception Focus on proven (2) businesses or profitable companies with attractive unit economics 360 Investors with experience in investing, operations and technology; partners for scalability offering our Riverwood Scalability Playbook (RSP) (3) Culture of hard work, partnership mentality, high ethical standards, and access to a unique ecosystem 2008 82 $6.1B 60 Established Investments To Date (5) Assets Under Management (4) Dedicated Professionals 40 Fully, Partially Realized Exits, & Liquid Investments 25 – $100M+ Equity Checks Partner of choice for proven (1) technology and tech-enabled mid-size companies at an inflection point for accelerated growth driven by strong technology adoption trends (1) We view “proven technology” to mean a working product or business model. (2) We view "proven businesses" or "proven companies" to mean companies that are either profitable, or not yet profitable but with positive unit economics. (3) RSP refers to the Riverwood Scalability Playbook. (4) Figure represents regulatory assets under management which includes assets plus unfunded commitments as of March 31, 2024. (5) Includes investments closed after March 31, 2024. As of March 31, 2024 (unless otherwise noted). CONFIDENTIAL DOCUMENT: NOT FOR SHARING, PUBLICATION, OR DISTRIBUTION

4. Riverwood’s Focus Growth Spectrum (business model maturity) Venture Growth High-velocity deal making & broad portfolio to capitalize the "winners" early $5 - $50mm Check Sizes Large number of opportunities, increased investment risk, and binary outcomes Decreasing in volume since 2021 Proven Growth Riverwood Focus Companies that are either profitable or not yet profitable but have positive unit economics Concentrated portfolio that allows for being an active investor, providing upside while protecting downside $30 - $100mm Check Sizes Control and lead minority (VC backed & bootstrapped) in proven companies Attractive risk / reward identified by proprietary knowledge and proper due diligence We believe the opportunity set is large and increasing further due to tech trends and lower capital intensity Crossover Growth High velocity deal making to invest in all logos showing traction & momentum to build broad portfolio of potential winners $30 - $250mm Check Sizes Passive portfolio “Public” markets type investing; Risk levels challenging to assess; Binary outcomes Decreasing in volume since 2021 Large Equity Growth PE investors building a broad portfolio amidst strong competition from other firms $150mm - $1bn Check Sizes Control and minority investments Fewer opportunities relative to available capital; competes with large AUM, strategics and IPOs Higher valuations relative to remaining growth opportunity / upside Venture Proven Large CONFIDENTIAL DOCUMENT: NOT FOR SHARING, PUBLICATION, OR DISTRIBUTION

5. Riverwood’s Valuation Regression Analysis FV / LTM Revenue Growth Regression Analysis FV / LTM Rof40 Regression Analysis RWC Bid Multiple RWC Bid Multiple CONFIDENTIAL DOCUMENT: NOT FOR SHARING, PUBLICATION, OR DISTRIBUTION

6. Riverwood Scalability Playbook Revenue Acceleration: accelerate growth through proven and tailored go-to-market and product focused initiatives Operating Leverage: improve efficiency with cost structure enhancements and optimize internal processes and procedures Corporate Development : Design and execute long term strategies for organic and inorganic market positioning and expansion The RSP is a robust collection of experiences, processes, and transformation initiatives to drive: RSP Seminar Series with experts sharing specific frameworks, case studies, and practical knowledge  across Riverwood’s portfolio Database that enables benchmarking against peer groups on key operating and financial KPIs Identification of priority RSP initiatives for current and prospective portfolio companies as part of Riverwood’s investment thesis or a company’s annual planning Access to senior level experts at curated and specialized service providers via Riverwood’s network (law firms, consulting firms and recruiting firms) 1:1 interaction with select group of board and C-level executives from impactful global technology companies to drive scalability, technological resilience, and growth through advisory and consulting projects Customer referrals and global partnerships for expanded growth opportunities Access to a vast network of Riverwood and portfolio company alumni, executive talent, board advisors, and industry experts Executive Conversations Business Metrics Focus 5 RSP Initiatives 3 rd Party Service Providers Senior & Executive Advisors Strategic Partnerships Riverwood Network CONFIDENTIAL DOCUMENT: NOT FOR SHARING, PUBLICATION, OR DISTRIBUTION

7. RSP Areas of Expertise GO-TO-MARKET PRODUCT Revenue Acceleration Geographic and vertical expansion Sales model and commercial strategy Channel build-out and partnerships Brand / account marketing Pricing Global customer / partner intros Product Strategy Competitive positioning and differentiation Product and services roadmap development Applications in new verticals Technical rigor and product scalability Operating Leverage COST STRUCTURE OPERATIONS Dashboard and metrics Zero base budgeting Automation Supply chain optimization Offshoring / outsourcing Strategic partnerships & preferred pricing Manufacturing Strategy Executive and board recruiting Culture Compensation plans Focus on cash IPO preparation Board and governance processes Organization and IT infrastructure Tax advisory Strategic roadmap (market share and competitive positioning) Relationships with major tech companies provide unique opportunities Silicon Valley access to the world and vice versa Focus on key trends Transformative and add-on acquisitions Deal origination, negotiation, execution Post-deal integration Divestitures Equity and debt financing Increasing visibility/broader access to capital Capturing revenue and cost synergies Corporate Development STRATEGIC VALUE CREATION M&A AND CAPITAL MARKETS We engage on a short list of prioritized projects depending on the company and specific circumstance --- --- --- CONFIDENTIAL DOCUMENT: NOT FOR SHARING, PUBLICATION, OR DISTRIBUTION

8. Sales Model and Commercial Strategy Considerations Historic Data Operating Plans Business Assumptions Sales productivity: quarterly quota attainment (%) and bookings ($) by sales rep Sales team evolution: hire date and termination date for all current and former sales reps and sales support roles (BDRs, SE, Managers, Ops, etc.) Ramp schedule : Total time required for existing reps to become fully ramped, and how that evolves over time Compensation and Sales Expense: High level sales expense and Base salary + variable compensation for each sales role Sales targets: new bookings required to meet high level ARR/revenue goals set by leadership Hiring plan: Expected number of hires per role (if determined already) over next 12 months Org. chart changes : Any changes to org. structure, additional roles, role tiering/segmentation or manager span of control Pricing: pricing increases or decreases that could affect selling behavior Quota changes: expected changes to quote based on territory design, pricing, and scale Performance improvement: expected change in quote attainment or bookings per rep as internal operations improve Ramp time: expected time till full productivity Attrition : expected turnover by role CONFIDENTIAL DOCUMENT: NOT FOR SHARING, PUBLICATION, OR DISTRIBUTION

9. Example Performance Analysis As companies evolve and make improvements to their go-to-market strategy and internal operations, they should experience an increase in sales productivity. Track sales KPIs by individual sales reps and groupings by role type to understand trends and identify areas of improvement. Below are example visualizations: CONFIDENTIAL DOCUMENT: NOT FOR SHARING, PUBLICATION, OR DISTRIBUTION

10. Sales Rep Hiring Planning Based on near term sales and marketing budgets and longer term forecasted spend, most sales leaders have a good idea of how the sales team will scale. Use this baseline headcount growth as a starting point for your sales hiring plan. It is important to also assume a certain attrition rate based on historic trends. Keep in mind that sales rep headcount is the central variable of the sales capacity model; therefore, the hiring plan should be flexible for different bookings targets To-be-hired Reps: The number of newly hired reps expected in future periods should be a function of new bookings growth (i.e. the sales team should grow at a similar pace to the bookings plan), and the sales expense budget (i.e. the number of new hires should align to the pre-determined budget based on typical sales rep compensation) 1 Churned Reps: Sales reps have high attrition rates compared to other roles in the organization given the transferability of selling skills and the ability to easily quantify performance. Hiring plans should factor in a base attrition rate that is the product of historic trends and industry benchmarks 2 CONFIDENTIAL DOCUMENT: NOT FOR SHARING, PUBLICATION, OR DISTRIBUTION

11. Ratio Based Hiring A sales process from lead to close typically involves several different resources that provide support to the AE/sales rep who is ultimately responsible for closing the deal. For example, most teams have sales development resources (BDR/SDR) who source opportunities, sales managers who provide coaching and assist in the later stages, and technical resources (Solutions Engineers) who go into the weeds of the technology with the potential customer. Companies should scale these functions based on a ratio to AEs that they support 4.5x 1.8x 3.0x 2.8x 2.0x 3.5x 3.4x 2.3x 3.9x 3.4x 2.3x 3.9x 3.4x 2.3x 3.9x 3.4x 2.3x 3.9x 3.4x 2.3x 3.9x Example: Ratio based sales support hiring plan (AE : [x] ratio) SaaS Industry Benchmark < $50M ARR > $50M ARR AE:BDR Ratio 1.0 - 2.0x 1.7x 2.0x AE: SE Ratio 2.0 - 3.0x 8.3x 1.7x Sales Manager Span of Control 6.0 - 8.0x 10.0x 4.5x RW Portfolio Median Ratio Benchmarks CONFIDENTIAL DOCUMENT: NOT FOR SHARING, PUBLICATION, OR DISTRIBUTION

12. ARR Bridge Tied to Cost Bridge New bookings should be evaluated in the context of the total bridge to end of period ARR. The ARR bridge is evaluated at every board meeting – strong reporting should include a clear explanation of what is working and what is not working. Like the ARR bridge, the expense that comes from sales headcount is just one piece of the total S&M expense puzzle and should be evaluated in the context of the total build. The budget for S&M expense is established far in advance and fuels the hiring plans that drive growth. ARR Bridge Cost Bridge CONFIDENTIAL DOCUMENT: NOT FOR SHARING, PUBLICATION, OR DISTRIBUTION

13. Matt Harper Investor Riverwood Capital [email protected] John Yang Investor Riverwood Capital [email protected]