EFTA00810510.pdf

VALAR Summer 2017 Update EFTA00810510 VALAR SUMMER 2017 UPDATE Fund 1 Review FUND I PORTFOLIO UPDATE Fund 1 continues to perform well, with a 3.5x net multiple and 34.4% net IRR as of sheet to raise $65M led by Institutional Venture Partners (IVP) at a $1.6 billion pre- June 30, 2017. As is our practice, the best investments - Transfenvise and Xero - money valuation. The purpose of this fundraise is to bring the company's balance account for over 50% of the Fund's deployed capital (and the lionshare of its gains). sheet to the level where they have enough cash to cover nine months of operating expenses. The total transaction size (including secondaries) may end up being quite In the second half of 2016, we began selling down our position in Xero, and we a bit larger, as there is significant interest from many other large buyers. This accelerated that in 2017. While we continue to be bullish on Xero's prospects, our transaction is expected to close within the next month. initial investment was made nearly seven years ago, and we felt it was time to start returning capital to ow investors. We have now exited over 90% of our position, Valar Fund I has invested $22.2M in Transfenvise, which is now valued at with the only remaining piece being the final investment we made into the company $252.7M. in October 2013. Valar Fund 1 invested $31.4M in Xero. Gross distributions to date are $119M with a remaining stake of $5.5M. Transfenvise is now a $145M annual revenue business, with monthly volumes across the network in excess of $1.58, growing nearly 100% year over year, and profitable. They are set to be the global leader for consumer money transfer in the coming years. The company predicts they will hit >20% EBITDA margin in 2019, generating $80M+ in cash. Fund 1 Highlights Over the past 7 years, Transfenvise has built the infrastructure to solve money transfer for consumers. Now they are well positioned to use that infrastructure to Inception: October 2010 address the same problem for businesses and banks across a $200B revenue market, Capital Commitments: $100.0M essentially replacing the correspondent banking model. Larger customers, including some banks (such as N26), have started moving to that new infrastructure. So Current FMV: $411.8M really, they are just getting started. Multiple (Gross & Net): 4.33x / 3.36x IRR (Gross & Net): 43.7% / 36.3% The most recent financing news is that the company has accepted a Series E term % of Fund Invested / Reserved: 100% DPI: 1.2x I I CONFIDENTIAL & TRADE SECRET VALAR EFTA00810511 VALAR SUMMER 2017 UPDATE Fund 2 Review FUND 2 PORTFOLIO UPDATE Fund 2 is now approximately 90% called and deployed, with a significant majority of 2017 the company has revamped its marketing program and hired a new VP of of that amount invested in three companies - Breather, N26 and Kalo (formerly Marketing to further build the demand side and amplify Breather's brand with both Lystable). An update on these major investments — and a few notes on some of the consumers and businesses. We expect the results of this initiative to dramatically Fund's smaller investments - follows. decrease the time a new unit takes to ramp up to full utilization, even when the company is adding units at a high rate. In our last update, we announced that Breather had raised a Series C round led by Venky Ganesan of Menlo Ventures in November 2016. Google Ventures Breather should continue to grow well through the Summer and be positioned for subsequently invested $5 million at the beginning of 2017 as part of an extension of another strong fundraise in the Fall. Their Series D valuation will be above the point that round, bringing the companies post-money valuation to $252M. In the at which the main funds would participate (and Fund 2 is already at its following seven months (through June 2017), revenue has nearly doubled and they concentration limit). We plan to make our pro-rata available to ow investors have opened 143 more spaces, bringing the total number of Breathers worldwide to through an SPV, similar to those we have put together for Transferwise and Stash in 433. Most of these new spaces were opened in their existing core cities of New the past. York, San Francisco, London, Toronto and Los Angeles. Valar Fund 2 has invested $25.5M in Breather, which is now valued at $42.3M. Since reorienting around B4B (Breather for Business) and implementing commercial space utilization standards (starting Q1 2016), they have opened larger spaces that allow them to serve bigger groups and a broader range of use cases. This approach has more than doubled company-wide square footage since September of last year. In addition, since January 2017, user cohorts have had larger than ever initial reservations and consistent repurchase pattern. The initial transaction of a new customer is now $320 and second and third month cumulative spend levels are Fund 2 Highlights at record-highs. With both first booking value continuing to rise along with six Inception: January 2015 month retention rates, projected LTV has continued to grow. Q1 LTV averaged Capital Commitments: $102.3M $1,014 which was a 12% increase over Q4. Current FMV: $139.5M While Breather has an extremely high NPS score (north of 70), which drives Multiple (Gross & Net): I.57x 11.34x significant organic demand, its CEO felt that their brand marketing and demand IRR (Gross & Net): 36.2% 127.9% generation capabilities needed upgrading. To address this, over the first six months % of Fund Invested / Reserved: 100% 2 I CONFIDENTIAL & TRADE SECRET VALAR EFTA00810512 VALAR SUMMER 2017 UPDATE Fund 2 Review At the end of 2016, N26 received its full banking license from BaFin (the German Given N26's ambitions to grow quickly and expand into the UK and USA, we banking regulator) and transitioned all of its customers off of their partner, expect N26 will raise a Series C round in Q4 this year at a valuation that is above Wirecard's, platform and onto their own. The focus since the start of 2017 has been the level where it makes sense for Valar main funds to participate. Again, the plan on building out their internal systems and the customer-facing product suite, is to make ow pro-rata available to our investors through an SPV. through internal development as well as through integrations with other startups (e.g., N26 customers make foreign currency transfers using Transferwise inside the Including the most recent financing round, which has been agreed to and is N26 app). expected to close later this quarter as soon as regulatory approval is received, Valar Fund 2 will have invested $I 5.0M in N26, which will be valued at $40.6M. Offering its customers a wide range of financial products allows N26 to capture a Between Funds 2 and 3, Valar will own approximately 16.3% ofN26 and be the greater share of wallet, and unit economics have improved rapidly as a result. In Q4 company's largest shareholder. 2016, the company was earning approximately E29 per customer; that has risen to E50 per customer in May 2017, roughly the current level where a customer is Lystable formally changed its name to Kalo earlier this year. The rebranding takes profitable for N26. As the company scales, they will breakeven at a lower point by care of a trademark dispute with a UK company and better aligns the company's driving down variable costs (e.g., negotiating a better deal with MasterCard on brand and product. interchange fees). N26 believes it can drive revenue per customer into the high E50s by the end of 2017, and projects monetization per user in the high €70s by the end The big win for Kalo since our last update is that, after a year of Airbnb using Kalo of 2018. As a result of its rapid acquisition of customers, N26 has seen a revenue across 10 of its teams, Kalo has secured a global deal to roll out its product to every ramp of nearly 3X in the first six months of this year. We have seen breakout team at Airbnb. This is particularly notable given that, while Airbnb has a large revenue acceleration like this before (with Transferwise) and believe N26 has number of employees (around 3500), it has an even larger number of freelancers similar potential to become a fintech giant. (approximately 4200). Moreover, Airbnb spends $15-25 million per year on freelancers who manage over 2500 tasks per month. In addition to improving unit economics, N26 has been expanding its geographic reach. The company now has over 400,000 customers (-200,000 financially active) Once Kalo has been fully rolled out across Airbnb, the only way someone can and operates in 17 EU countries with plans to expand into the UK in the near term. freelance with Airbnb is through Kalo, Kalo will be the system of record for all Planning is also underway for a potential US launch in 2018. While the UK and Airbnb freelancers and more than half of Airbnb's workforce will be reliant on the USA are competitive and enormous markets, we believe N26 is well positioned to Kalo platform. In short, Kalo will be critical to Airbnb's day-to-day operations. compete in these markets; it has a huge head start on all the other European neobanks and offers a superior product experience and cost structure to incumbent This global deal is a big step forward for the company and Kalo has a substantial banks in all geographies. pipeline of smaller and larger size deals it hopes to close this year. 3 I CONFIDENTIAL & TRADE SECRET VALAR EFTA00810513 VALAR SUMMER 2017 UPDATE Fund 2 Review Granify has continued to solidify its enterprise sales team and revenue has started Tradelt is in the process of signing Master Services Agreements with Fidelity and showing the results of the effort to improve their sales capability that began in late several other massive financial institutions. These deals would put Tradelt in the 2016. Revenue in May was —$250k and the company feels they can double that by position of managing all API access for these clients. Once implemented, if a October. If they are able to hit their targets, Granify should be profitable by year- developer wants to build something on top of a Fidelity API, they will have to go end. through Tradelt to do it. This is a huge opportunity for the company. Valar Fund 2 has invested $6.3M in Granify, which is being held at cost. Valar Fund 2 has invested $3.7M in Tradelt, which is now valued at 4.6M. EyeEm operates in a difficult and shrinking market for paid stock photography. The Since our last update, Homie has become licensed as both a mortgage broker and a company has been unable to achieve sufficient scale in its own photo marketplace real estate broker, in order to more fully facilitate its for-sale-by-owner customer to warrant further investment in the business. The positive news is that the wedge and begin to increase monetization. Now, whenever buyers and sellers use computer vision technology the team has built to automatically classify photos has Homie's software to transact, they can seamlessly find a mortgage through the been the subject of considerable interest from larger companies. EyeEm and its service as well. This provides a substantial revenue stream for the company. board have determined that a trade sale may be the best outcome at this point and Revenues have begun ramping nicely, and the company should be well positioned that process is evolving. to raise a sizeable Series A this Fall. Valar Fund 2 has invested $10.4M in EyeEm which is now valued at 11.2M Valar Fund 2 has invested $2.8M in Homie, which is being held at cost. (change due to FX). Even is still heavily in product development — they are building a bank app for hourly workers that can use machine learning to automatically budget for its users and provide short term loans to smooth income. The company's first customer is Walmart, who pays them a fee per user per month. Even plans on rolling out with Walmart nationwide in the Fall. Valar Fund 2 has invested $4.5M in Even, which is being held at cost. 4 I CONFIDENTIAL & TRADE SECRET VALAR EFTA00810514 VALAR SUMMER 2017 UPDATE Fund 3 Review FUND 3 PORTFOLIO UPDATE Fund 3 is now 60% called and deployed into six major investments and a handful of The following graph (excerpted from Stash's marketing materials) helps illustrate smaller, seed stage companies. We expect that the substantial majority, if not all, of the company's traction vis-i-vis other well-known players in the space: the remaining capital will be invested in follow-on financings in these existing portfolio companies. Adoption Curve Speed of Erna/NA and a kite lAM hos sowed us to goh tro0NA 0NI0Ny. So far, Stash has commanded the largest share of Fund 3, with just over 20% of the Fund invested in the company's Series A, Series B, and Series C financings. Omit App Downloads since twitch The big news for Stash is they just raised S40M at a $200M pm-money valuation in a Series C funding led by Coatue Management, with participation from Valar, Goodwater and Jim Breyer. The company has now raised a total of $78 million in STASH less than two years. Coatue has been following the company's progress for some robinhccd time and wanted to be sure they would win the deal before it hit the open market. "Stash is disrupting the financial services industry by removing bathers and making digit investing more approachable and accessible to the 100 million-plus Americans on A Betterment the sidelines," said Coatue's Founder and Portfolio Manager Philippe Laffont. "Its rapid growth in a short period of time shows that Stash has found a way to transform how Americans manage their money and gain financial independence.- Fund 3 Highlights Stash has continued to grow extremely quickly. It currently serves over 865,000 customers; adding more than 25,000 per week while keeping its blended CAC Inception: July 2016 under $16. In our last update we shared the company's audacious goal ofreaching Capital Commitments: $103.9M 1,000,000 users by the end of September 2017. We are pleased to report that the company is in fad ahead of schedule and should hit that figure six weeks early, Current FMV: 894.8M around mid-August. We believe they are growing faster than any competitor while Multiple (Gross & Net): 1.41x / 1.26x maintaining engagement metrics that are the best in the market. IRR (Gross & Net): 208.5%/ 146.8% % of Fund Invested / Reserved: 90% 5 I CONFIDENTIAL & TRADE SECRET VALAR EFTA00810515 VALAR SUMMER 2017 UPDATE Fund 3 Review Stash is planning on quickly rolling out new products to its customers. Stash Retire, Although Octane is currently exploiting a profitable niche within secured lending, which allows users to save and invest their money in an IRA, is already in beta and we believe Jason can build the company into a diversified giant over the coming will be fully released this summer. And a checking account and debit card product years. are on the roadmap for the end of this year. Octane Lending has raised -428M in equity capital from VCs, including $12.5M In terms of customer growth and fundraising velocity, Stash is reminiscent of from Valar, and $95M in warehouse lines from Macquarie Group and other Transferwise and N26. We have high hopes that the opportunity in front of them is financial institutions. as big. We are pleased to be working on Octane with Roger Ehrenberg from IA Ventures, Valar Fund 3 has invested approximately $21.8M in Stash, which is now valued at who sits on the board of Octane as well as the Transferwise board with us. $46.6M. Valar Fund 3 has invested $13.2M in Octane Lending, which is now valued at Octane Lending is the second largest position in Fund 3 at this point. Octane is a 13.5M (the change in valuation is due to the small amount of secondary shares we technology-enabled lender focused on secured consumer lending markets, purchased from an early investor at a minor discount). beginning with powersports (motorcycles, ATVs, UTVs, etc). One of Fund 3's first investments was a seed check into Qonto, an SME focused Octane initially launched as a marketplace for powersports loans, similar to what neobank based in Paris. The company was founded by Alexander Prot (whose Dealertrack does for the automobile industry. Octane observed that there was father was formerly the Chairman of BNP Paribas) and Steve Anavi, repeat limited competition to provide loans to buyers who had near-prime credit scores entrepreneurs and co-founders who grew up together and have previously exited a (550-650 FICO) and if they built their own underwriting model they could company together. efficiently generate high volumes of attractive loans. Octane launched Roadrunner Financial in June 2016 to be a direct lender and has been ramping up origination They started Qonto out of the belief that banking for startups and small businesses volume over the last few months. in France is hopelessly broken. Dominated by Credit Agicole and BNP, the customer experience is even worse than with consumer banking. Every time they We met the company through a referral from Wes Barton and Keith Hamlin of needed to ask for something from their bank, it was costing them a lot of money and Third Prime Ventures, old friends oflames' from their days as lawyers at Skadden was a slow and analog process. Qonto is conceptually similar to N26, but Arps. We immediately felt that Jason Guss, the CEO, is a special entrepreneur. specifically geared to the needs of SMEs. Andrew affectionately refers to him as a "Terminator Robot sent from SkyNet." He is one of the most detail obsessed and knowledgeable entrepreneurs we have met in our career. 6 I CONFIDENTIAL & TRADE SECRET VALAR EFTA00810516 VALAR SUMMER 2017 UPDATE Fund 3 Review We believe the environment in Europe is quite good for new banks if they can get We have been thinking about insurance and talking to entrepreneurs in the space for started quickly and build a head start on the competition. The regulators are in favor several years, without finding an investment that made it all the way through our of increasing competition and will grant a de novo license. The local incumbents process. As it happens, after years of turning down good opportunities, we found are large and unfocused, and a lack of competition over many decades has left them two compelling companies almost simultaneously, Jetty and Coya. In the business with a customer experience that is inefficient and expensive. of insurance, the most difficult and valuable thing to achieve is effective distribution and customer acquisition. There are many paths to reach these goals, We were impressed by the level of execution we saw from the Qonto team and led starting with the way the company is structured. their Series A round in January. They launched to the public in June and the initial response is promising. Coya is based in Berlin. We met the company through an introduction from Max Levchin's firm, SciFi Ventures. SciFi was doing a deep dive on the insurance Valar Fund 3 has invested $8.4M in Qonto, which is now valued at I0.6M industry and wanted our help from our European network in reference checking the entrepreneurs. Andrew Shaw, the CEO, was previously the original data science Recent Insurance Investments employee at Kreditech, a well-known European consumer loan business. His partner, Peter Hagen, was previously the CEO of Vienna Insurance Group. "Formula for startup success: Find large highly fragmented industry with low NPS; Together they have the magic fintech combo of one person who can write beautiful vertically integrate a solution to simplify value product" - Keith Rabois (our good code and the other person who deeply understands how this complex industry friend and a co-investor in Even). actually functions. Andrew and Peter decided that in the German market, there is an opportunity to capture more value by becoming a fully licensed new carrier. Once The insurance market is huge, insurance premiums are roughly $2.4 trillion dollars licensed, Coya will build, sell, and service several insurance products, beginning per year in the U.S. and Europe. However, it is still dominated by paper processes, with rental P&C policies and expanding to various specialty add-ons (e.g., bicycles, structural inhibition to innovation and incentives to cut costs by downgrading the jewelry). They will operate in-house a number of departments: product customer experience (for example, by making claims a hassle). Entrepreneurs that development, underwriting, sales, marketing, claims, and finance/investment. They manage to navigate the massive regulatory complexity and build the skill set should have structurally higher margins through cutting out most traditional brokers required to operate at a high level in the industry, combined with investors patient from their distribution funnel and applying the sophisticated analysis learned at enough to support the companies over the long-haul, will create huge businesses. Kreditech to their own underwriting models. The license is issued by BaFin, the The insurance industry is too large and built on systems too archaic for any result same German regulator that granted N26 its banking license. BaFin's familiarity other than massive change. with Valar was a significant advantage in our winning the Series A lead. 7 I CONFIDENTIAL & TRADE SECRET VALAR EFTA00810517 VALAR SUMMER 2017 UPDATE Fund 3 Review Jetty is based in New York City, and we met the entrepreneurs through Velar Fund 3 has invested SRAM in Jetty and $6.3M in Coya, both of which are introductions from our friends at SV Angel and BoxGroup. Mike Rudoy and Luke being held at cost. Cohler have had careers in technology and consulting and saw an opportunity to apply their backgrounds in design and marketing to the P&C market in the United States. The company is set up as a Managing General Agency or MGA. An MGA is an insurance business set up through a fronting program with another carrier that lends its license and regulatory reserves to the MGA for a fee. Jetty has complete responsibility for product design and pricing, similar to a full carrier. The company underwrites, quotes, binds, and services policies up to a specific amount. Jetty's launch suite includes two traditional insurance products, Renters & Condo/Co-op, as well as Jetty Passport, a pair of revolutionary renter services that help tenants get in the door and help landlords drive occupancy. Jetty Passport is a pair of credit- based-underwriting surety bonds which replace traditional security deposits and lease guaranty, indemnifying the landlord and preserving Jetty's right to recover. They have negotiated distribution agreements with several large residential property portfolios owned by Blackrock. Both Jetty and Coya are in the very earliest stages, so there aren't a lot ofmetrics to evaluate yet. They are innovating on the sales channel for distributing insurance products first, by utilizing mobile and point of sale channels (instead of through agents in-person or over the phone) as well as offering shorter duration and more granular products (e.g., Jetty Passport). Over time they can collect far more data on their customers and utilize big data and machine learning techniques to improve underwriting models far above what incumbents are able to. We're excited to work with these teams as they transform the insurance business. This document is confidential, trade secret, and not for further circulation. This document is informational and is not an offer or solicitation to buy, sell or hold any securities. Except where otherwise indicated, "Fund I" refers to all funds and investment vehicles managed by Valar Ventures Management LLC prior to the formation of Valar Global Fund II LP, on an aggregate basis, "Fund 2" refers to Valar Global Fund II LP and Velar Global Principals Fund II LP, on an aggregate basis, and "Fund 3" refers to Velar Global Fund III LP and Valar Global Principals Fund Ill LP, on an aggregate basis. Figures presented are unaudited estimates in USD as of 68012017, including signed deals that are expected to close in Q3. Gross figures do not include the impact of fees, expenses and carry, and net figures are calculated by reducing gross investment profits by a flat 25% for hypothetical management fees, expenses, and carry. S I CONFIDENTIAL & TRADE SECRET VALAR EFTA00810518 VALAR SUMMER 2017 UPDATE Fund 4 Preview FUND 4 FUNDRAISING As Fund 3 is largely invested and reserved for, we are formally entering the market for Valar Fund 4. We are currently preparing the marketing materials, data room and legal documents (pitch deck, PPM, LPA, DDQ, etc.) and will be making those documents available over the next month. Our intention is to have conversations with each of you starting after Labor Day and close on our existing investor& commitments in December of this year. Consistent with our past practice, the official time stamp for the new fund will be in January, making Fund 4 a vintage 2018 fund. Our expectation is that the Fund will be between $100M and $150M in capital commitments. We appreciate your continuing support and partnership in Valar. We hope you all have an enjoyable summer and we look forward to speaking with each of you in the coming weeks and months. Fund 4 Terms: Target Capital Commitments: $100M - $150MM Anticipated Deployment Period: 2018 - 2020 Target Fund Return: 4x - 6x Due Date for Signed Sub Does: December 2017 Anticipated Closing: January 2018 9 I CONFIDENTIAL & TRADE SECRET VALAR EFTA00810519 VALAR FALL 2016 UPDATE Fund 1 Key Drivers 'l TransferWise Headquarters: London Company Description: Securities Held: Series A Preferred Shares TransferWise is a peer-to-peer currency exchange service that brings institutional pricing to Series B Preferred Shares retail customers by coordinating transfer needs within countries across a large user base. Series C Preferred Shares Recent Financing History: Initial Investment Date: 1/8/2013 TransferWise recently signed a term sheet for a $65M Series E financing round led by Valar Cost Basis: $22.2M Institutional Ventures Partners (IVP). Previously, the company closed on a $58M Series C Current FMV: $252.7M financing round led by Andreessen Horowitz in December 2014, and a $26M Series D financing round led by Baillie Gifford in February 2016. Multiple: 11.4x Headquarters: Wellington Company Description: Security Held: Ordinary Shares Xero is the leading cloud-based accounting software provider globally for SMBs. Initial Investment Date: 10/28/2010 Recent Financing History: Valar Cost Basis: $31.4M Fund 1 initially invested in Xero in October 2010 at a $98M valuation, with significant Current FMV: $124.3M follow-on investments by the Fund in February 2012, November 2012 and October 2013. Over the past year, Fund I exited over 90% of its position at a blended $2B valuation for Multiple: 4.0x aggregate proceeds of $118.8M, including through a $30 million block trade with Technology Crossover Ventures (TCV). 10 I CONFIDENTIAL & TRADE SECRET VALAR EFTA00810520 VALAR FALL 2016 UPDATE Fund 2 Core Investments ® breather Headquarters: Montreal and New York Company Description: Securities Held: Series B Preferred Shares Breather provides a network of private, professional meeting rooms designed for work, Series C Preferred Shares meetings and to focus. Initial Investment Date: 9/10/2015 Recent Financing History: Valar Cost Basis: $25.5M Breather completed a $42M Series C financing in October 2016 at a $210M pre-money Valar Current FMV: $42.3M valuation led by Menlo Ventures, with participation from Google Ventures, Valar, RRE, Real Ventures, Slow Ventures and others. Prior to that, Valar led the company's Series B Multiple: 1.7x financing round, investing a total of $17M in two tranches that closed in September 2015 and April 2016 at a pre-money valuation of $80M. N26 Headquarters: Berlin Company Description: Securities Held: Preferred A Shares N26is a new European bank focused on building an innovative mobile-first banking Preferred B Shares experience. Initial Investment Date: 4/24/2015 Recent Financing History: Valar Cost Basis: $14.9M Currently, N26 has agreed to a E15M Series B extension round at a E250M pre-money Valar Current FMV: $40.6M valuation led by Valar Ventures and Hedosophia. In June 2016, N26 completed a €35M Series B financing at a €120M pre-money valuation, led by Horizons Ventures, with Multiple: 2.7x participation from Valar, Earlybird and others. Previously, Valar led the company's Series A financing in April 2015 at a E38M pregnancy valuation. II I CONFIDENTIAL & TRADE SECRET VALAR EFTA00810521 VALAR FALL 2016 UPDATE Fund 2 Core Investments kalo Company Description: Headquarters: London and San Francisco Security Held: Series A Preferred Stock Businesses increasingly rely on external workforces of freelancers and contractors, often without an effective way to keep track of them. Kalo (formerly Lystable) provides an Initial Investment Date: 5/6/2015 elegant platform to simplify every step of these workers — from onboarding to internal Valar Cost Basis: $12.4M reviews to payment. Current FMV: $16.5M Recent Financing History: Nlultiple: 1.3x In March 2017, Kalo closed on a $10 million Series A extension round led by Valar Ventures, with participation from Goldcrest Investments, Kindred, Max Levchin and others. Kalo had previously closed on an $1I.3M Series A financing round in June 2016 also led by Valar. The convertible notes held by Fund 2 from Kalo's prior seed financing rounds were EyeEm convened into Series A Preferred Shares in the round, at a blended 2.3x multiple. Headquarters: Berlin Company Description: Securities Held: Series B Preferred Shares EyeEm is a marketplace for commercial photography. The company's highly engaged user Convertible Notes base and machine-curated image library provide a more valuable sourcing channel for commercial clients than traditional stock photography databases. Initial Investment Date: 4/14/2015 Valar Cost Basis: $10.4M Recent Financing History: Current FMV: $11.1M (change due to FX) In April 2015, EyeEm closed on an El IM Series B round led by Valar Ventures, alongside Earlybird and Wellington Partners, among others. Existing investors have since collectively Multiple: 1.1x added E5.9M in bridge financing rounds. 12 I CONFIDENTIAL & TRADE SECRET VALAR EFTA00810522 VALAR FALL 2016 UPDATE Fund 2 Core Investments Even Headquarters: Oakland Company Description: Security Held: Series A Preferred Stock Even is a financial app that ensures hourly workers always get at least their average pay. By offering consistency, Even helps its customers save more and use expensive payday lenders Investment Date: 3/11/2016 less. Valar Cost Basis: $4.5M Recent Financing History: Current FMV: $4.5M In March 2016, Even closed on a $9M Series A financing round, led by Valar Ventures, Nlultiple: 1.0x with participation from Khosla Ventures, Box Group, Allen & Company and others. granify Headquarters: Edmonton Company Description: Security Held: Series A Preferred Shares Granify maximizes revenue for online retailers by identifying shoppers that aren't going to Convertible Note buy and changing their mind — while they're still on the site — by harnessing the power of real-time data analytics and machine learning. Investment Date: 3/2/2015 Valar Cost Basis: $6.3M Recent Financing History: Current FMV: $6.3M Granify closed on a $7M Series A financing round in March 2015 led by Valar Ventures. The convertible notes held by Valar Ventures prior to the Series A financing were convened Multiple: 1.0x into Series A Preferred Shares in the round, at a 3.7x multiple. Existing investors have since added $800k in bridge financing to the company. 13 I CONFIDENTIAL & TRADE SECRET VALAR EFTA00810523 VALAR FALL 2016 UPDATE Fund 2 Core Investments TRADEITIN Headquarters: New York Company Description: Security Held: Common Stock Trading Ticket (dba Tradelt) facilitates quick and secure online stock trading through Series Seed Preferred Stock any website or app. Initial Investment Date: 4/2/2015 Recent Financing History: Valar Cost Basis: $3.7M After participating in Tradelt's $1M pre-seed round in 2015, Valar has led two Series Seed Current FMV: $4.6M rounds totaling $7M, with participation from Citi Ventures, Sandy Robertson, Point72 and others. Multiple: 1.2x homie Headquarters: Salt Lake City Company Description: Security Held: Series Seed Preferred Stock Homie is a peer-to-peer marketplace for buying and selling homes. By leveraging Convertible Note technology and taking the transaction process online, Homie saves buyers and sellers thousands in broker commissions. Initial Investment Date: 3/17/2016 Valar Cost Basis: $2.8M Recent Financing History: Current FMV: $2.8M Valar led Homie's $3.8M Series Seed round in March 2016, with participation from Peak Ventures and others. Most recently, Valar participated in a $3M convertible note round in Multiple: 1.0x March 2017. 14 I CONFIDENTIAL & TRADE SECRET VALAR EFTA00810524 VALAR FALL 2016 UPDATE Fund 3 Core Investments STASH Headquarters: New York Company Description: Securities Held: Series A Preferred Shares Stash is a community for people who want to start investing and who don't want to rely on a Series B Preferred Shares black box service to do it for them. It's a platform to help people take ownership and Series C Preferred Shares become confident investors. Starting with as little as $5, Stash investors build a portfolio of investments that aligns with their interests, beliefs and goals. Initial Investment Date: 8/5/2016 Valar Cost Basis: $21.8M Recent Financing History: Current FMV: $46.6M Stash recently closed on a $40M Series C financing, at a $200M pre-money valuation, led by Coatue Management, with participation by Valar Ventures, Goodwater Capital, Jim Multiple: 2.1x Breyer and others. Valar also led Stash's $25M Series B Preferred financing round in November 2016, and co-led the company's $9M Series A Preferred financing round in August 2016. Octane Lending Company Description: Headquarters: New York Octane Lend