EFTA00810239.pdf

EFTA00810239 Valar Ventures Formed in 2010 Spun out of Thiel Capital in 2013 Based in New York City Raising Fund 4, targeting $100M-$150M Anticipated closing December 2017 EFTA00810240 We invest in high margin, fast growing technology companies that are pursuing huge market opportunities. VALAR EFTA00810241 Stage Sector Geography We lead Series A and Series B We focus on high-margin businesses The majority of our companies are investments (valuations between operating in massive addressable based in the United States and Europe. $20M - $100M). markets. We keep significant reserves to Examples: Fintech, Software, follow-on in our best companies. Marketplaces Cost basis by stage: • • Q 0 Series A Series B Cost basis by sector: • • Fintech Software Cost basis by geography: • • Q US & Canada Europe • Seed • Marketplaces • Australia/New Zealand • Later follow-ons • Other • Other VALAR EFTA00810242 Results % of Fund Capital Current Gross/Net Gross/Net Invested/ Fund Inception Commitments FMV Multiples IRRs DPI Reserved Fund 1 Oct 2010 $100.0M $411.8M 4.3x/ 3.4x 43.7% / 36.3% 1.2x 100% Fund 2 Jan 2015 $102.3M $139.5M 1.6x / 1.3x 36.2% / 27.9% N/A 100% Fund 3 Jul 2016 $103.9M $94.8M 1.4x / 1.3x 208.5% / 146.8% N/A 90% As used throughout this presentation, "Fund I" refers to all funds and investment vehicles managed by Valar Ventures Management LLC prior to the formation of Valar Global Fund 2, on an aggregate basis. "Fund 2" refers to Valar Global Fund 2 LP and Valar Global Principals Fund 2 LP, on an aggregate basis, and "Fund 3" refers to Valar Global Fund 3 LP and Valar Global Principals Fund 3 LP, on an aggregate basis. All figures presented are unaudited estimates in USD as of 6/30/2017, 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. VALAR EFTA00810243 Why is our strategy working? VALAR I EFTA00810244 Portfolio Construction EFTA00810245  $250,000,000 $187,500,000 We've kept our funds small. $125,000,000 $102M $104M $ 100M The first funds raised by Union Square Ventures, Founders Fund, FirstMark, IA $62,500,000 Ventures and Foundry Group had average capital commitments of $129M. These funds were among the best performing early-stage funds of the last decade. $o Fund 1 Fund 2 Fund 3 (October 2010) (January 2015) (July 2016) VALAR I EFTA00810246  The 2 best performing The 3 best performing 3 major investments in companies in Fund 1 companies in Fund 2 Fund 3 have received $125,000,000 received 54% of the received 52% of the 42% of the Fund's Fund's capital. Fund's capital. capital commitments, with 25% still reserved for follow-ons. $93,750,000 STASH We believe in 1gOctane concentration. $62,500,000 Only 6-8 core investments in each fund, with 50%+ of each fund invested in the $31,250,000 best 2-3 companies. Fund 1 Fund 2 Fund 3 VALAR 9 EFTA00810247 We follow-on heavily in our winners. Fund 1 Fund 2 $500,000,000 $160,000,000 $375,000,000 $120,000,000 $250,000,000 $125,000,000 ( 7 separate investments into 2 companies account for 99% of Fund l's current profits. $80,000,000 $40,000,000 1 10 separate investments into 3 companies account for 92% of Fund 2's current profits. • Breather I • • Transferwise Xero Other Investments • O N26 Kalo Other Investments O $o O $O Cost Basis Current FMV • Fees/Expenses Cost Basis Current FMV • Fees/Expenses VALAR I 10 EFTA00810248 High Concentration + Aggressive Follow-Ons + Small Funds = Any single company can return a fund multiple times over. Required Exit Fund Current Current Contribution Valuation to Fund 1 Ownership Return the Fund Valuation to Fund Multiple 0 6.7% $1.5B $2.0B 1.3x 7TransferWise 15.2% $651M $1.7B 2.6x Fund 2 ©breather 16.8% $609M $252M 0.4x N 26 13.5% $758M $302M 0.4x kalo 23.5% $435M $70M 0.2x Fund 3 STASH 18.4% $565M $253M 0.4x Octane 16.2% $642M $83M 0.1x x qonto 22.2% $468M $48M 0.1x VALAR I EFTA00810249 EFTA00810250  Sources of Deal Flow: VALAR / THIEL NETWORK "TransferWise STASH kalo Octane CO:'A Pre- Investment: LOCAL FUNDS x qonto granify to VALAR EyeEm Our network and brand generate high quality Deal Flow and Access. IN-HOUSE RESEARCH ® breather N26 Jetty VALAR EFTA00810251  Sources of Deal Flow: Follow-On Investors: \ \EAR NETWORK qTransferWise al6z IVP "TransferWise STASH kalo Octane • Accel Matrix Capital CO'fik Post- N26 Horizons Battery Investment: LOCAL FUNDS qonto granify VALAR (f)breather EyeEm Menlo Our network and brand help provide Google Ventures a Bridge to Growth Capital. STASH Coatue Jim Breyer IN-11OLSE RESEARC11 kalo SciFi VC ®breather (Max Levchin) N26 Jetty VALAR I 14 EFTA00810252 Investment Discipline VL AP EFTA00810253  Strict Investment Discipline All investments must pass 3 key tests: TEST 1 TEST 2 TEST 3 Total Addressable Team Traction Market (TAM) Most investment opportunities fail the TAM test VALAR EFTA00810254 "IVIAVERICK" EFTA00810255 Great tech companies are being started in lots of lUir-'114ft places. Our New York base allows us to: • Avoid Silicon Valley bias • Identify and work with companies anywhere — from SF to Berlin — at a much earlier stage than Bay Area firms. • Compare opportunities across geographies. We are only looking for global winners but we don't presume they will all be in California. 18 EFTA00810256  , VALAR EFTA00810257 We operate like a highly-focused "Special Ops" team, purpose-built to outflank other VCs Our team is deliberately small: Andrew and James are the Investment Committee and meet the companies together. There are no "Monday morning meetings" or partner politics. We can make decisions in real time. We also sit on the boards together, eliminating horse trading over remaining reserves in follow-on rounds. RESULT: We are solely returns focused and can move faster than anyone else in the business. EFTA00810258 Founding Partners James Fitzgerald Skadden, Clarium, Thiel Capital Andrew McCormack Yahoo!, PayPal, Clarium, Thiel Capital EFTA00810259 Fund 4 Terms Raising: $100M-$150M Management Fee: 2.5%/year (subject to step-down) Carry: 20% scaling to 25%/30% at 3x/6x net to investors Fund Life: 10 years Investment Period: 5 years Minimum Investor Commitment: $5M Due Date for Executed Sub Docs: Dec. 2017 (Jan. 2018 vintage fund) VALAR I 22 EFTA00810260 Appendix o o 10 ompanies EFTA00810261 Xero is a leading cloud-based accounting software provider with over 1 million SMB Headquarters: Auckland customers across the globe. Valar Cost Basis: $31.4M Xero is listed on both the NZX Current FMV: $124.3 and ASX under the ticker symbol XRO. Gross Multiple: 4.0x Date of Initial Investment: October 2010 Pre-Money Valuation at Initial Investment: $98.8M Company Valuation at Time of Exit: $2.0B Other Key Investors: Accel, Matrix Capital, Fidelity, Blackstone, TCV VALAR I EFTA00810262 /7TransferWise TransferWise is a peer-to-peer currency exchange service that brings institutional pricing to Headquarters: London retail customers by coordinating Valar Cost Basis: $22.2M transfer needs within countries. Current FMV: $252.7M Gross Multiple: 11.4x Date of Initial Investment: January 2013 Pre-Money Valuation at Initial Investment: $20M Current Company Valuation: $1.7B Other Key Investors: IA Ventures, Andreessen-Horowitz, IVP VALAR I EFTA00810263 *breather Breather operates a network of private, professional meeting rooms designed for work, Headquarters: New York City & Montreal meetings and to focus. Valar Cost Basis: $25.5M Current FMV: $42.3M Gross Multiple: 1.7x Date of Initial Investment: September 2015 Pre-Money Valuation at Initial Investment: $80.0M Current Company Valuation: $252.1M Other Key Investors: RRE, Menlo Ventures, Google Ventures VALAR I 26 EFTA00810264 N26 N26 is a new European bank focused on building an innovative mobile-first banking Headquarters: Berlin experience. Valar Cost Basis: $14.9M Current FMV: $40.6M Gross Multiple: 2.7x Date of Initial Investment: April 2015 Pre-Money Valuation at Initial Investment: €38M Current Company Valuation: €265M Other Key Investors Earlybird, Horizons Ventures, Battery Ventures VALAR I EFTA00810265 kalo Businesses increasingly rely on external workforces of freelancers and contractors, Headquarters: London & San Francisco often without an effective way Valar Cost Basis: $12.4M to keep track of them. Kalo Current FMV: $16.5 (formerly Lystable) provides an elegant platform to simplify Gross Multiple: 1.3x every step of these workers — Date of Initial Investment: May 2015 from onboarding to internal Pre-Money Valuation at Initial Investment: $7.5M reviews to payment. Current Company Valuation: $70M Other Key Investors: Kindred, Goldcrest, SciFi VC (Max Levchin) VALAR 28 EFTA00810266 EyeEm EyeEm is a marketplace for commercial photography. The company's highly engaged user Headquarters: Berlin base and machine-curated Valar Cost Basis: $10.4M image library provide a more Current FMV: $11.1M (change due to FX) valuable sourcing channel for commercial clients than Gross Multiple: 1.1x traditional stock photography Date of Initial Investment: April 2015 databases. Pre-Money Valuation at Initial Investment: €44.0M Current Company Valuation: €55.8M Other Key Investors: Earlybird Capital, Wellington Partners VALAR I 29 EFTA00810267 Even Even is a financial app that ensures hourly workers always get at least their average pay. Headquarters: Oakland By offering consistency, Even Valar Cost Basis: $4.5M helps its customers save more Current FMV: $4.5M and avoid expensive payday lenders. Gross Multiple: 1.0x Date of Initial Investment: March 2016 Pre-Money Valuation at Initial Investment: $28M Current Company Valuation: $37M Other Key Investors: Khosla Ventures, BoxGroup, Allen & Company VALAR I EFTA00810268 granify Granify maximizes revenue for online retailers by identifying shoppers that aren't going to Headquarters: Edmonton & Austin buy and changing their mind Valar Cost Basis: $7.5M while they're still on the site Current FMV: $8.7M by harnessing the power of real- time data analytics and machine Gross Multiple: 1.2x learning. Date of Initial Investment: May 2015 Pre-Money Valuation at Initial Investment: $5M Current Company Valuation: $32M Other Key Investors: iNovia Capital, BDC VALAR I 31 EFTA00810269 TRADEIT TM Tradelt facilitates quick and secure online stock trading through any website or app. Headquarters: New York City Valar Cost Basis: $3.7M Current FMV: $4.6M Gross Multiple: 1.2x Date of Initial Investment: April 2015 Pre-Money Valuation at Initial Investment: $3.2M Current Company Valuation: $23M Other Key Investors: Citi Ventures, Sandy Robertson, Point72 VALAR I 32 EFTA00810270  homie Homie is a peer-to-peer marketplace that is disintermediating the real estate Headquarters: Salt Lake City brokerage commission model. Valar Cost Basis: $2.8M By leveraging technology and Current FMV: $2.8M taking the transaction process online, Homie makes FSBO a Gross Multiple: 1.0x real option for sellers and saves Date of Initial Investment: March 2016 home buyers thousands of Pre-Money Valuation at Initial Investment: $15.9M dollars. Current Company Valuation: $18.5M Other Key Investors: Peak Ventures, Kleiner Perkins VALAR 33 EFTA00810271 STASH Stash is a community for people who want to start investing and who don't want to rely on a Headquarters: New York City black box service to do it for Valar Cost Basis: $22.1M them. Starting with as little as Current FMV: $48.3M $5, Stash investors build a portfolio of investments that Gross Multiple: 2.2x aligns with their interests, Date of Initial Investment: January 2016 beliefs and goals. Pre-Money Valuation at Initial Investment: $12.0M Current Company Valuation: $252.6M Other Key Investors: Coatue Management, Goodwater, Jim Breyer EFTA00810272 Octane Octane Lending is a technology- enabled lender focused on secured consumer lending Headquarters: New York City markets starting with Valar Cost Basis: $13.2M powersports. Current FMV: $13.5M Gross Multiple: 1.0x Date of Initial Investment: April 2017 Pre-Money Valuation at Initial Investment: $68.0M Current Company Valuation: $83.1M Other Key Investors: IA Ventures, Contour Ventures, Third Prime Capital VALAR I EFTA00810273 x qonto Qonto is a next generation bank for entrepreneurs, SMEs and startups, providing an online Headquarters: Paris service that allows businesses to Valar Cost Basis: $8.4M create an account in less than Current FMV: $10.6M five minutes. Gross Multiple: 1.3x Date of Initial Investment: September 2016 Pre-Money Valuation at Initial Investment: €5.3M Current Company Valuation: €41.7M Other Key Investors: Alven Capital VALAR I 36 EFTA00810274 Jetty Jetty is a new kind of insurance company designed to help people in cities reach their goals Headquarters: New York City faster by removing obstacles Valar Cost Basis: $8.1M and risks. Its mission is to Current FMV: $8.1M protect its customers against setbacks of all kinds, from fire Gross Multiple: 1.0x and theft to wasted time and Dat of Initial Investment July 2017 money. Pre-Money Valuation at Initial Investment: $3 1 .0M Current Company Valuation: $42.5M Other Key Investors: Ribbit Capital, BoxGroup, SV Angel VALAR I 37 EFTA00810275 CO%:°A Coya is a full-stack European insurance challenger that will offer scalable protection at the Headquarters: Berlin point of need, with personalized Valar Cost Basis: $6.3M predictive risk management and Current FMV: $6.3M simple, transparent insurance designed to manage life's risks. Gross Multiple: 1.0x Dat of Initial Investment: July 2017 Pre-Money Valuation at Initial Investment: €19.8M Current Company Valuation: €27M Other Key Investors: E.ventures VALAR 38 EFTA00810276 EFTA00810277 sIsiCpuy up-rnollod t s e  75,000,000 60,000,000 Over 60% of Fund l's profits 45,000,000 from Xero were attributable to Valar's follow-on investments. 30,000,000 15,000,000 0 Xero ($99 pre-) Xero ($212M pre-) Xero ($529M pre-) Xero ($1.8B pre-) ■ Valar Cost Basis ■ Valar Current FMV VALAR I EFTA00810278  30,000,000 (f)breather 24,000,000 Over 40% of Valar's profits 18,000,000 from Breather are expected to come from our follow-on investments in the Company. 12,000,000 6,000,000 0 Breather (Series B) ,ft Breather (Series B-2) ■ Valar Cost Basis d Breather (Series C) ■ Valar Current FMV VALAR I 41 EFTA00810279  37,500,000 N26 30,000,000 And nearly 40% of Valar's 22,500,000 profits on N26 will also be attributable to follow-on investments. 15,000,000 7,500,000 0 N26 (Series A) N26 (Series B) N26 (Series B-2) ■ Valar Cost Basis ■ Valar Current FMV VALAR I EFTA00810280  37,500,000 STASH 30,000,000 37% of Valar's profits from 22,500,000 Stash are attributable to our second investment in the company and 57% from Valar's 15,000,000 third investment. 7,500,000 0 = Stash (Seed) ■Stash (Series A) Stash (Series B) Stash (Series C) ■ Valar Cost Basis ■ Valar Current FMV VALAR I EFTA00810281  12,500,000 kalo 10,000,000 90% of our profits from Kalo 7,500,000 will be attributable to our third and fourth investments into the company. 5,000,000 2,500,000 0 Kalo (Seed) Kalo (Seed Extension) Kalo (Series A) Kalo (A-2) ■ Valar Cost Basis ■ Valar Current FMV VALAR I EFTA00810282  225,000,000 '7 TransferWise 180,000,000 Finally, while only 24% of our ■ 135,000,000 current Transferwise profits are attributable to follow-on investments in the company, those additional investments are 90,000,000 p expected to add at least a full lx to Fund l's returns. 45,000,000 0 AmE_J Transferwise (Series A) Transferwise (Series B) Transferwise (Series C) ■ Valar Cost Basis ■ Valar Current FMV VALAR I 45 EFTA00810283 Disclaimers THIS DOCUMENT IS CONFIDENTIAL. The information in this PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE It has not therefore been: (a) prepared in accordance with the presentation may not be copied, reproduced, or redistributed without the RESULTS AND SHOULD NOT BE RELIED UPON FOR MAKING requirements of Part VII of the Financial Services and Markets Act express written permission of Valar Ventures LLC (the "Sponsor"). This AN INVESTMENT DECISION. ANY INVESTMENT IN A 2000, and the Handbook of rules and guidance maintained by the presentation is not intended for distribution to, or use by, any person or PROGRAM OFFERED BY THE SPONSOR OR ITS AFFILIATES Financial Conduct Authority (the "FCA"); and/or (b) submitted to, or entity in any jurisdiction or country where such distribution or use is WILL BE HIGHLY SPECULATIVE AND THERE CAN BE NO shared or registered with, the FCA. Consequently, interests in the funds contrary to local law or regulation. Nothing in this presentation should ASSURANCE THAT SUCH PROGRAM'S INVESTMENT described in this document may not be ordered or sold to the public in be construed as an offer to sell or a solicitation of an offer to buy any OBJECTIVE WILL BE ACHIEVED. INVESTORS MUST BE the United Kingdom; and no application can or will be made for interests securities and may not be relied upon in connection with the purchase or PREPARED TO BEAR THE RISK OF A TOTAL LOSS OF THEIR in the fund to be admitted to trading on a regulated market situated or sale of any security. This presentation is not intended to provide, and INVESTMENT. operating in the United Kingdom, or any other country. should not be relied upon for, legal, tax, regulatory, investment financial, ADDITIONAL DISCLAIMER FOR THOSE WHO WILL RECEIVE For investment professionals: ument is directed at persons or accounting advice or investment recommendation. OR ACCESS THIS DOCUMENT IN THE UNITED KINGDOM: This having professional expert nee in matters relating to investments; and Statements contained herein are made as of June 30, 2017 unless document is directed solely at, and made only to, persons that we believe any investment or investment activity to which it relates is available only otherwise noted, and are subject to change without notice. The are: (a) "investment professionals" (as that term is used in and by article to such persons, and will be engaged in only with such persons. Persons valuations forecasts, estimates, opinions, and projections contained 19(5) of the Financial Services and Markets Act 2000 (Financial who do not have professional experience in matters relating to herein involve elements of subjective judgment and analysis. There can Promotions) Order 2005 (the "Order"); and (b) "high orth investments should not rely on this document. be no assurance that assumption made in connection with such companies"; "high net worth unincorporated associations igh net For high net worth companies: This document is directed at high net valuations, forecasts, estimates, opinions, and projections will prove worth partnerships" or the "trustees of high value trusts" (toge "high worth companies, and the controlled investments and controlled accurate. These materials may contain forward-looking statements that net worth companies etc.") (as each of these terms is us and by activities to which it4a r tes are available only to such persons. are subject to certain risks and uncertainties. The Sponsor undertakes no article 49(2) the Order). There are in place proper ms and obligation to update these forward-looking statements for events or procedures to prevent any other recipient from enga in the circumstances that occur subsequent to such dates or to update or keep investment activities to which this document relates wi current any of the information contained herein. Certain information and directing the communication of this document, a close relativ data contained herein are based on sources the Sponsor believes to be member of the same group. This document is not a prospectus. reliable, but such information has not been independently verified. VALAR -16 EFTA00810284