EFTA01089506.pdf

BLOCKCHAIN CAPITAL, LLC CRYPTO CURRENCY PARTNERS II, LP NOVEMBER 2014 CRYPTO CURRENCY PARTNERS ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA DBILL EFTA01089506 EXPERIENCED TEAM IN INVESTING BART STEPHENS BRAD STEPHENS BROCK PIERCE PAUL STEPHENS • Stephens Inv. • Stephens Inv. • Bitcoin Foundation • Robertson Mgmt. Mgmt. Board Member Stephens & Co. • Ivanhoe Capital • Fidelity Ventures • Founded 15x • RS Investments EXPERIENCE • E*Trade Group • CSFB Startups • Duke Univ. • Princeton • Furman Selz • Raised > $200M Endowment • Duke • Invested in > 25x • UC Berkeley Startups Endowment Founded 8 crypto 40 Years in currency startups Silicon Valley #2 U.S. Long/Short Hedge Fund* and often RECOGNITION Investment 2.5x Venture Fund, 11.5% IRR referred to as the Management and "father of digital Banking currency" Leaders in Technology Incubated and Founded 100's of Silicon Valley Investing Dozens of Startups Investments *Absolute Return Magazine 2014 CRYPTO CURRENCY lO PARTNER ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089507 ABOUT STEPHENS INVESTMENT MANAGEMENT LLC FOUNDED IN 2002 BY THE STEPHENS BROTHERS INSTITUTIONAL HEDGE FUNDS & VENTURE FUNDS STEPHENS INVESTMENT MANAGEMENT ASSETS UNDER MANAGEMENT: $150M Decades of Clicr-Pssful Growth Investing CRYPTO CURRENCY ANTHERS ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089508 SUCCESSFUL TRACK RECORD OF HOME RUNS PRIVATE PUBLIC 4 o RelatelQ 2014 25.0x 0! 4 2014 77.0x E 2004 8.1x illumina 2009 39.0x O va 2008 6.9x Atim.A.T. 2010 4.6x RUPTURE 2008 5.0x GILON 2011 5.1x A 2014 TBD ncsoF-r - 2007 3.4x Private and Public Exits through Multiple Market Cycles CRYPTO CURRENCY PARTNERS ONE FERRY BUILDING, SUITE 2SS SAN FRANCISCO, CA 94111 EFTA01089509 BROCK PIERCE - "FATHER OF DIGITAL CURRENCY" INDUSTRY LEADER AND SPOKESPERSON BITCOIN FOUNDATION BOARD MEMBER Singularity mil,KFN \ vrITUTE • Protocol Roadmap University • Global Regulatory Insight • Thought leader exposure Bitcoin Foundation Neuf i o tic Conn) e..3 PATRICK MURCK HIE WALL STREET JOUR \ 11,. GENERAL COUNSEL All TODAY I GAVIN ANDRESEN CHIEF SCIENTIST Repeat Entrepreneur and Digital Currency Visionary CRYPTO CURRENCY PARTNERS ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089510 BROCK PIERCE - SERIAL ENTREPRENEUR FOUNDED CRYPTC FOUNDED NON-CRYPTO GoCoin (payment processor) IGE (2001-2007) expresso expresscoin (retail exchange) Zam (2004-2012) ry , zenBox ZenBox (ATM / remittance network) RAl IMI Exchange (2004-Present) IXAtt Zoomhash (cloud / hardware mining) Xfire 2.0 (2011-Present) Obitcoir Dtal7C/U: Blade Financial (Bitcoin debit card) Playsino (2011-Present) 1> Noble Markets (institutional exchange) Fl E DELTA Five Delta (2012-2014) GamesTV (2005-2007) ,P,9)N" Coin Congress (conference) fib Evertune (2008 -Present) Tether (fiat backed alt coin) Extensive History of Defining Digital Currencies CRYPTO CURRENCY PARTNERS ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089511 CRYPTO CURRENCY PARTNERS I, LP ® b bex.io 0 BitGo "resBitFury () Gem Change . 1 1 11' * expresscoin BTC China coinsetter Ihr 4 t„ (NI KraKen [7.1edgerX 0 BLADE "4 BLOCK WI mockstream app AlphaPoint IzIpzap BITACCESS The First Dedicated Bitcoin Venture Fund CRYPTO CURRENCY PARTNERS ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089512 CRYPTO CURRENCY PARTNERS I, LP greylock ventures' khosla ventures 'BENCHMARK PANTERA partners. Redpoint L LIGHTSPIED VENTURE PARTNERS *FORTRESS HIGHLAND CAPITAL PARTNERS FOUNDERS FUND Ribbit Capital RADAR( PARTNERS Combinator 500 startups AMPLIFY Q. - SVAngel PLUGAEPpY RItEYentut•s Sitcom Inc rst Round CAPITAL Bitcoin Co-investments with Leading VCs Ow) CRYPTO CURRENCY PARTNERS ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089513 USE CASES FOR "BLOCKCHAIN TECHNOLOGY" Financial and Records Legal / Health / Education I I Bitcoin Private Equities Bonds Public Equities Smart Contracts Signatures/identity Degrees Shareholder Voting Remittance Crowd-funding Wills Genome data Trusts Licensing Spending Records Micro-payments Commodities Medical Records Escrows Delivery records Trading Records Derivatives Mortgage/loan records Arbitration Grades Patents Copyrights Micro-finance Servicing records Micro-charity Certifications Academic Credits \. .1 Public Records Commercial / Media C Land titles Birth certificates Vehicle registries HR Records Rental car keys Accounting records Business license Business Incorporation/dissolution Business transaction records Software licenses Business Ownership records Regulatory records Trademarks Betting records Hotel room keys Criminal records Passports Death certificates Safety deposit box keys Coupons Vouchers Voter IDs Building permits Health/safety inspections Domain names Betting records Movie Tickets Non-profit records Court records Gun permits Voting DRM: Music/movie/book license GPS network identity ..1 * CRYPTO CURRENCY PARTNERS ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089514 INDUSTRY GROWTH OVER THE PAST YEAR Key Bitcoin Adoption Metrics Quarterly Last 12 Months Sep-14 Jun-14 CO A Sep-13 Commerce Wallets 6.559.978 5.427.688 21% 1.353.201 Merchants 76.000 63.000 21% 10.0O3 Merchants' annual revenue ($bn) 86 29 196% 0 ATMs 251 103 144% 0 Unique bitcoin addresses 184.554 136.152 36% 61.734 Industry All-time VC investment ($m) 317.0' 225.3 41% 30.4 Number of VC-backed startups 66' 50 32% 14 Media Mainstream media mentions 9.398 9.024 4% 1.794 Technology Network Hash Rate (billion/second) 261.900.382 111.194.683 136% 1.213.246 Github no. of updated repositories 18.753 15.109 24% 1.573 Valuation Bitcoin market capitalization ($bn) 'ISA.% *cool O4 cloak fM ilkxkcraoll-30SrnI Saurces: ConDesit F cures usea are as of era of quart Slate of Bitcoin O3 2014 S ColnDesk 6 CRYPTO CURRENCY PARTNERS ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089515 HYPER GROWTH- ONE YEAR The Mining Arms Race: A More Plausible Total Exchange Trading Volume Sees Bitcoin Price Drop Theory? Steady Growth Bacon New.* Hash Rate (Wiens ci bashes second).2010- Present Cumulative Trading Volume Ibtconsl 104 Sy3 120000 000 .MO WO - 100400000 • X. a00 00000 OM • 60 COO 000 INS:MOOD 40DCO 000 1410Oopo 20000 000 To remain cOmpeOtwe miners - who Possess perhaps the largest and ever- 0 growng) supply of btcoins - must sell bacons to finance runnng costs and rr 1 CP se e 1 sal 4,• it 4, 1 si hardware upgrades Son Crews t9 C . Approximately 8 Million Bitcoin Wallets Forecast Cut for Bitcoin-Accepting Still Forecasted by End of Year Merchants by 10K to 90K by End of Year • DX COD 13, - 096 ••'. too an 120 000 R, . 0 9777 G.N:C COD 100 000 s • CM, J001, •••let 60 COO IWO= 60 COO saes 40 000 MOIR 20 000 ISM 0 e." dot, 1.0iiiiiordritiidin.tvii.e ✓lA ' f t s1 .1‘../.1?I ititi ft e'tet#Nblfott Tots Warms •Nanrctials Fewasie0 Ft/0[4200 Watt faucet &YRr vars.. notonla NSA YU ONO len ma , KISS Owes as radial. Sono Ina NAY 13.0 meals not Co Ca anirmilk• • ..011•C Aetc OWNS. !Woo ...O*Co ass toter. •oo eene inner a.0.•14.0•6•1 Ara. ir SOO PM. A100 WS yr MS swats .-ntre ar• I• • ne...ery .t atm*. Ire alopolais, C --o0n n c•—o— CRYPTO CURRENCY PARTNERS ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089516 CASE STUDY: ChangeCoin ChangeTip enables a "tipping" feature using Bitcoin on other companies' websites. It has built a Bitcoin micropayment platform that is currently integrated with Twitter, GitHub, Reddit, Google+, Tumblr, and YouTube. We believe that ChangeCoin's micro transaction platform is poised to be the financial equivalent of the "Like" button, and enabling new mechanisms for premium online constant to be monetized Social Accounts by Date a 30k 25k 20k 3 15k c 10k 3 5k Ok Mar 14 Apr 14 May 14 Jun 14 Jul '14 Aug 14 Sep 14 Date — Sum of Social Accounts — Sum of Users — Sun of Tips Dabliaro CRYPTO CURRENCY PARTNERS ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089517 CCP I I - INVESTMENT APPROACH VERTICALS RIGOROUS CONSUMER PROCESS • Exchanges • Remittance • Digital Wallets • Deep Global Domain VALUE —ADD Knowledge INFRASTRUCTURE • Extensive Networks HISTORIC • Side Chains • Proprietary Deal Flow • Recruiting • Blockchain Apps • Business VENTURE • Primary Investigative • Mining Due Diligence Development RETURNS • Exhaustive • Capital Introduction ENTERPRISE Management/ • Multi-sig Industry Interaction workflow • Payment Gateways • Financial Tools CRYPTO CURRENCY PARTNER ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089518 CCP I I - STRATEGY AND MAKE-UP $20M 40% New CCP II investments FUND POSITION ALLOCATION 30% Reserves for CCP II follow-on rounds 30% Access to CCP follow-on rounds Leverage our network and industry expertise to find FUND POSITION STRATEGY investments that utilize Blockchain technologies and help these portfolio companies disrupt legacy industries. Access to CCP's early seed deals as well as future deals Cod CRYPTO CURRENCY PARTNERS ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089519 CCP I I - CONTRIBUTED INVESTMENTS BitGo June '14 575,000 Series A preferred Coinsetter December '13 550,000 Convert to Series A expresscoin November '13 525,000 Convert to Series A, 52.5m Cap GoCoin October '13 520,000 Note converted 4.5x at Series A GoCoin October '13 580,000 Common at 52.5m, 4.5x at Series A Kraken April '14 570,000 Series A preferred LedgerX July `14 550,000 Series A preferred TOTAL $37O,OOO (current value —$73O,OOO) SIM and Brock contributing Bitcoin Co-Investments at cost to CCP II CRYPTO CURRENCY PARTNER S ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089520 CCP I I - INVESTMENTS MADE PeerNova September '14 550,000 Note Discounted to Series A preferred BitAccess September '14 525,000 Note Discounted to Series A preferred BitPesa September '14 $100,000 Note Discounted to Series A preferred BlockStream October '14 $100,000 Series A preferred ChangeCoin October '14 $100,000 Series A Preferred BitNet October '14 $75,000 Series A Preferred TOTAL $45O,OOO Actively continuing to invest in the ecosystem CRYPTO CURRENCY PARTNER S ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089521 CCP - PARTNERS AND ADVISORY BOARD BOBBY LEE CEO, BTC China WILL O'BRIEN CEO, BitGo VINNY LINGHAM CEO, Gyft (acquired by First Data) MALCOLM CASSELLE CEO, Timeline Labs STEVE BEAUREGARD CEO, GoCoin CHARLIE LEE Coinbase, Founder of Litecoin IFTIKAR AHMED Partner, Oak Investment Partners MATTHEW ROSZAK Partner, Tally Capital SCOTT WALKER Founder, ZenBox and ZoomHash ADAM ETTINGER leading Bitcoin legal counsel BILL LEE prolific angel investor Built a robust team of Advisors and LPs from Bitcoin ecosystem Co) CRYPTO CURRENCY PARTNERS ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089522 CCP I I - SUMMARY OF TERMS $20M TERM 6-8 Years FEE/INCENTIVE 2.5% / 25% GP CONTRIBUTION +2.5% Fund or + $500k INVESTMENTS 30 ($100k - $500k per deal) STRUCTURE Called Capital, BTC Accepted Ow)CRYPTO CURRENCY PARTNERS ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089523 CCP I I - SERVICE PROVIDERS ADMINISTRATION / CFO Kranz & Associates -= Sidley Austin Crawford Pimintel Silicon Valley Bank Merrill Lynch BTC VAULT Xapo 0 CRYPTO CURRENCY PARTNER S ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089524 SUMMARY CRYPTO CURRENCY PARTNERS FIRST DEDICATED BITCOIN VENTURE FUND UNPARALLELED ACCESS TO DEAL -FLOW PROVEN TRACK RECORDS Building the Future Leaders in the Bitcoin Ecosystem ( ) CRYPTO CURRENCY PARTNER S ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089525