EFTA00810474.pdf

" ".111104 Z • _ 1 -1 : 1 .1.111:17. Z - • - 'trait - • -a - "...II:: ass. .111 • EFTA00810474 Valar Fund I / Performance Fund 1 Performance Inception: October 2010 Capital Commitments: $100.0M Current FMV (including distributions made): $400.6M Multiple (Gross & Net): 4.2x / 3.3x IRR (Gross & Net): 35.4% / 29.1% % of Fund Invested / Reserved: 100% DPI: 1.6x Performance Drivers: Xero (95% exited), Transferwise 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, on an aggregate basis, prior to the formation of Valar Global Fund II LP, "Fund 2" refers to Valor Global Fund II LP and Valar Global Principals Fund II LP, on an aggregate basis, "Fund 3" refers to Valar Global Fund III LP and Valar Global Principals Fund III LP. on an aggregate basis. and "Fund 4" refers to Velar Global Fund IV LP and Valar Global Principals Fund IV LP, on an aggregate basis. Except where otherwise stated, figures presented herein are unaudited internal estimates in USD as of 10x312018. after giving effect to tam sheets for investments not yet closed. Gross figures arc based on invested capital only and 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 / EFTA00810475  w War Fund I • * '_ • TransferWise Replacing the Infrastructure for Cross-Border Money 3- — Java Jakarta cluno 4 Suraka, ihov; EFTA00810476  Bye bye bank fees, hello Send meet iterohve Valar Fund 1 /1),•!-10-! world Janos...1m•la. peep. •Prea ..“ Ovid bran, to pet • ye* ..cluiveest• end • but.. Ewa" t.n• _s USD - 1000 Transferwise Updates 4.1/10 To. B4 es•• I Exceeded projections in Q3, adding 446k new users S lyii IP TreniAnWles see/ Over 4 ',Mae - titte happy offileomen EUR (+39% year-over-year) and processing £6.5B in Yew to.4d lave up te MOW* Stetetkil sp.. bp Oct IS transaction volume (+66% year-over-year). 1 Monthly revenue passed £16M in October (more than $250M annualized), with EBITDA in Q3 reaching 7% of gross revenues. Not all exchange rates are created equal. 1 Grown team to 1315 employees at the end of Q3 2018, and added three new leased spaces allowing the team to scale to 1750 over the coming year. 0•••• 1.• 1 Rolling out debit card to EU businesses with 5,600 cards issued so far. 1 As Transferwise is profitable, no financing transactions are planned for 2018; Potential secondary round contemplated in mid-2019. Valar Cost Basis: $22.2M 1 Valar is the largest outside investor in Transferwise, Current FMV: $253.6M retaining over 12% of the company following last Gross Multiple: 11.4x year's partial sale. Current Company Valuation: $1.7B Other Key Investors: IA Ventures, Andreessen Horowitz, IVP VALAR / 3 EFTA00810477 Valar Fund I / Performance Driven Beautiful Accounting Software EFTA00810478 Valar Fund 1 / Pcrformance Driver. • Wire coming to a city near you Minos to free to meet the etre team sod IN: the 'oleo updates. wishes IS °sumo!, Xero Updates A real-time view of your cash flow ✓ In 2010, Xero became Valar's first investment, with a small Wiriness accesoning setwine that s onion. smut end ouanpully inatical $3M check at a $100M valuation. play vide.) C .) ✓ Today, Xero is a $4B company, publicly traded on the Australian Stock Exchange. ✓ In 2017, Valar sold 95% of its holdings, distributed close to $100M in cash and stock to our investors. Valar Global Fund I still retains a small stake. ✓ Xero now has over 1.5M customers in 180+ countries. Run your business on the go Get paid faster with online invoicing Reconcile in seconds use ow mob,:{ app to reconcile. send invoices or Send online invoices to sour customers - and get import and categorize your latest bank banns-wont create 0...trisection+. - learn ewshernie. updated when they're married ale are. Then click to reconcile. ✓ The company is profitable, with A$26.0 million in EBITDA in FY2018. ✓ Revenue has grown from $6M annualized when Valar first invested in 2010 to over $600M annualized today. Valar Cost Basis: $31.4M Current FMV (includes distributions): $127.2M ✓ Xero's continued success since our partial exit last Gross Multiple: 4.0x year will impact our thinking about the timing for Company Valuation: $3.9B today / $2.0B at time of Valar's major exit exiting our other winners in the future. Other Key Investors: Accel, Matrix Capital, Fidelity, Blackstone, TCV VALAR / 5 EFTA00810479 Valar Fund 2 / Pei for Fund 2 Performance Inception: January 2015 Capital Commitments: $102.3M Current FMV: $243.9M Multiple (Gross & Net): 2.7x / 2.1x IRR (Gross & Net): 42.6% / 33.3% % of Fund Invested / Reserved: 100% Performance Drivers: N26, Breather, Kalo, Even VALAR / 6 EFTA00810480 Valar Fund 2 / Performance Drivers N26 Mobile Banking Made Easy $ VALAR EFTA00810481 Valar Fund 2 / Pcrionnanec Dri N26 Updates ✓ Exceeded projections in Q3, reaching £3.9M in monthly revenue in August. ✓ Adding over 100k new customers per month, passing 2.2M total customers. ✓ Revenue per active user is growing faster than forecast, reaching £93 in September. ✓ Successfully launched in the UK in October 2018. ✓ US launch planned for March 2019, with 15 employees already in place in New York City. ✓ Continued rapid pace of new product launches and customer adoption — 150,000 "Spaces" already created since launch in July 2018. Valar Cost Basis: $25.7M ✓ Customers becoming more profitable — 55% margin for each active customer. Current FMV: $182.7M Gross Multiple: 7.1x ✓ Series D financing planned for Q4 2018; following Current Company Valuation: $1.5B that round, Valar expects to still own approximately Other Key Investors: Tencent, Allianz, Hedosophia, Greyhound 12% of the company. VALAR / s EFTA00810482  Valar Fund 2 / MEr aD breather Bringing Flexibility to Commercial Real Estate EFTA00810483  breather Valar Fund 2 / Performance Driver:: Breather Updates ✓ Revenue growing 70% YoY, with September seeing a new high of $2.6M. How Breather works ✓ Margin has improved significantly since the beginning of the year, a core focus of the company. 1. Eaa,ly re:wive ace ✓ Continued move to multi-day and month+ bookings, 2. Scrnia,e and secure access which are the fastest growing segment of the business. Month+ grew from $91k in December 2017 to $590k in September 2018. 3. Take a tout As+ is moo urn epos' di pont., NM> furw..t flatus. ✓ Adding spaces between 2,000 and 10,000 square feet in target zones to take advantage of Month+ demand. ✓ Team continues to grow, now at 119; projected to reach 145 by year end. ✓ CEO transition to the Board; new CEO search Valar Cost Basis: $25.5M making good progress. Current FMV: $42.3M ✓ $43M Series D financing completed in H1 2018; Gross Multiple: 1.7x Company funded into 2020. Current Company Valuation: $295.6M Other Key Investors: RRE, Menlo Ventures, Google Ventures, Temasek ✓ Valar Fund 2 owns 14.3% of Breather. VALAR / 10 EFTA00810484 Valar Fund 2! Pcfrormoncc kalo Work with Anyone, Anywhere EFTA00810485  kalo Ov•ev•r* SOitIPOSIS • Reiourca • 0/140••••• Login R•aushi D•mo Valar Fund 2 / Pcr.aG rmance Drivers Kalo Updates Make working with SURFACE %.' d o gle 1 Kalo's core focus is on adding freelancers to its freelancers a breeze. platform. August and September were its strongest • Ka;o s freelancer management piatform is trusted by Google. Cnail=ii• months yet, with 80k new freelancers onboarded. Airbnb. Expedia, IDEO and more to onboard freelancers in IDEO NM IN • minutes. track their profiles and contracts. and get them paid 1 Monthly revenue hit $80k in September 2018, still on time. airbre FIFExpedia small, but up 6X from the beginning of the year. Okra/Amain 0 1 Key logos closed in Q3 including Lululemon, Mic, 'pre-Kaha was a maze of multr.tablzedGooe* soremr:kzets. rims my, z one prase. Onboatd.ng takes minutes not days and our freelancers get pad on time' Complex Magazine, ESPN and RGA. Lily Wan. Surface Magaxine 1 Pipeline of new strategic logos includes The New York Times, Walmart, Compass, Linkedln, Levi's Nike and TechCrunch. 1 COO/CFO search underway, important to building out the team's operational capabilities. 1 Kalo maintains significant cash reserves, with Valar Cost Basis: $12.4M funding into 2020. Current FMV: $16.5M ✓ Valar Fund 2 owns approximately 24% of Kalo. Gross Multiple: 1.3x Current Company Valuation: $70.0M Other Key Investors: Kindred, Goldcrest, SciFi VC (Max Levchin) VALAR / 12 EFTA00810486 EFTA00810487  = Even The Even ago Offa Shen as a benefit COWn10210 t”e aap Valar Fund 2 / Peribrmance Driver,. Even Updates I Exceeded member growth and revenue plans, hitting $1.69M revenue in September 2018; On track to achieve $18M in revenues for full year 2018. How busy people I Served over 25,000 people and delivered over $200 psyched n 8 day• master their money million in access to wages. $28O Get pad on demand, budget instantly, and save automatically wrth Even. I Grown team from 19 to 50 so far in 2018. ?.) 12.7k ratings 12.6k ratings I Set aggressive goals for the end of 2018 — to serve over 25% of Walmart's employees, add an additional 4.9 4.8 40,000 members outside of Walmart, and onboard AppSrore ► ; 4%,..„ -"c" 150,000 Even members to the Savings account 0 platform. I Demonstrated a significant retention advantage between Walmart employees using Even and those that are not; Actual numbers are very impressive Valar Cost Basis: $5.4M (although not yet publicly announced). Current FMV: $10.4M ✓ Valar is the second largest investor in Even, with a Gross Multiple: 1.9x 13.2% ownership stake in the company. Current Company Valuation: $99.3M Other Key Investors: Khosla Ventures, BoxGroup, Allen & Company VALAR / 14 EFTA00810488 Valar Fund 3 / PCITOI 111:IIICC Fund 3 Performance Inception: July 2016 Capital Commitments: $103.9M Current FMV: $176.8M Multiple (Gross & Net): 2.1x / 1.7x IRR (Gross & Net): 69.8% / 54.2% % of Fund Invested / Reserved: 100% Performance Drivers: Stash, Qonto, Octane, Petal, Jetty VALAR / 15 EFTA00810489 Valar Fund 3 / sTt Investing Made Simple VALAR / to EFTA00810490  STASH Par• ••••••••• 8.1r•no Cnod Learn Si.opm for Valar Fund 3 / Pcriorm:Inec I )rivers Put your money where it matters Fro nroatco to V. *nom, g. tvc n W.Y raters )a you WO SLIM Stash Updates You can met in a Seam of sans a-ci LW. mai .s Grotty waled bir our •Iv•IbTOM Pt•• tasel On same ralo0.Itieng flak proles Erpbre an •••••••1••••• ✓ Continued rapid user growth, reaching 2.5M users and 1.5M funded accounts in September. CAC 1 remains stable at < $20 per new user. 1 Revenue has grown 5x YoY, exceeding forecasts with $3.8M in Q3. Revenue expected to hit $100M annualized by the end of next year. 1 Gross margins (negative last year) are now positive and nearing 50%. I Accelerated pace of new product launches. Retirement and custodial accounts, as well as insurance referrals, all growing exponentially. Stash ren. LLC tr, in. el •• rve:, debit card, cash back and gifting launching in Q4. 1 Over $2.5M has been pre-funded for the Stash Debit product, with 50k sign ups during a 3 week period. Valar Cost Basis: $29.6M 1 Series D financing expected in Q4 2018. Current FMV: $65.6M Gross Multiple: 2.2x 1 Valar is the second largest investor in Stash, with a Current Company Valuation: $347.5M 19% ownership stake in the company. Other Key Investors: USV, Coatue, Goodwater, Jim Breyer VALAR / 17 EFTA00810491 Valar Fund 3 / Octane Lending Fast and Easy Lending for Powersports Dealers VALAR / 1 EFTA00810492  Octane Lending Home Features Lenders About Us Login Sign Up Free Add Financing Link Valar Fund 3 / Per!hi-mance Drivers Octane Updates ✓ Now servicing 857 active dealers across multiple verticals. FINANCE MORE CUSTOMERS ✓ Reached $850k in monthly revenue in September ($10M annualized); Expect revenue to pass $1M IN LESS TIME. monthly before year end. Octane Lending provides fast and easy powersports lending for dealers. For free, LILARN MORt TRY IT IOII Mt ✓ Hit $6.5M in originations in August 2018 (2.4x year- over-year growth) ✓ Targeting $150M in originations and $23M in revenue in 2019. ✓ Strong hiring for the company's Direct-to-Consumer initiative, to be launched in 2019. ✓ Valar Fund 3 is the largest shareholder in Octane, with a 16% ownership stake in the company. Valar Cost Basis: $16.2M Current FMV: $20.3M Gross Multiple: 1.2x Current Company Valuation: $130.5M Other Key Investors: IA Ventures, Third Prime Capital, Contour VALAR / 19 EFTA00810493 Valar Fund 3 / Performance Drivers Petal ca\ \GIs:0 Credit Underwriting Without FICO VALAR / 20 EFTA00810494 Valar Fund 3 / ['orlon-Imre,' Drivers Petal Updates ✓ Product went live in July with 5,000 cards issued to date. Forecast to issue 75,000 additional cards over the next 12 months. ✓ Average spend per card per month so far is $650 per month, 10% above forecast. ✓ Monthly revenue currently at $100k, expected to 10x in the next 6 months, reaching $2M by next summer. ✓ Rapid rollout of product features in the near term, including cashback and card linked offers, split payments for large purchases, credit score in the app and companion savings accounts. ✓ Team growing quickly, from 16 at the end of 2017, to 45 today. Plan shows 67 further hires by June 2019. ✓ In December 2017, Valar Fund 3 led Petal's Series A Valar Cost Basis: $28.6M financing, acquiring a 20% stake in the company. Current FMV: $38.1M Valar Fund 4 is now leading Petal's Series B round at Gross Multiple: 1.3x a $100M pre-money valuation and will acquire an Current Company Valuation: $125M additional 14% of Petal. Other Key Investors: Third Prime Capital, Brooklyn Bridge Ventures VALAR / 21 EFTA00810495 War Fund 3 / Jetty Revolutionary Renters Insurance VALAR / 22 EFTA00810496 Valar Fund 3 / l'cribrrimnrc Drivers Jetty Updates Better, more affordable 1 Between Q1 and Q2, policy sales increased by 31%, renters insurance with the real estate partner channel growing 85%. from S5/mo. I Launched 12 new partners including Related, Greystar and Tishman Speyer, with nearly 200k units signed. tt- as 111 I Generated $275k in revenue in Q2 with close to $800k in gross premium sold in June 2018. 1 The current product offering includes traditional renters insurance, security deposit coverage and a lease guarantee product; The company plans to roll out a pet insurance product next. 1 Series B financing expected in Q4 2018. 1 Valar Fund 3 owns 19% of Jetty and will look to Valar Cost Basis: $8.1M increase its stake in the Series B round. Current FMV: $8.1M Gross Multiple: 1.0x Current Company Valuation: $42.5M Other Key Investors: Ribbit Capital, BoxGroup, SV Angel VALAR / 23 EFTA00810497 Valar Fund 4/ Port Fund 4 Portfolio Update Inception: January 2018 Capital Commitments: $133.4M Deployed Capital: $67.1M (all investments held at cost) Gross Multiple: 1.0x % of Fund Invested / Reserved: 75% Portfolio Companies: Petal, Coya, Bestow, Qonto, TaxFix, LoanStreet VALAR / 24 EFTA00810498 Valar Fund 4/ qonto Business Banking Made Easy MAR / 25 EFTA00810499  qonto On. .••••••• Valar Fund 4 / h,\ C St Your finances on auto-pilot Qonto Updates Saw time I Product launched in July 2017 and customer base has grown to 22,500 business clients. I Reached $575k in revenue in August 2018. :a. 3 Monitor your expenses, for free4ancers and teams I Received European Passporting license in June 2018, allowing for expansion to 11 other European countries. Make accounting easier I In the process of building and deploying their own payment infrastructure and core banking systems. ✓ Valar led Qonto's Series B financing through Valar Checkout ow, Snit:Waft Fund 4 in September 2018. We also led the Seed and I Series A rounds though Fund 3. I In aggregate, Valar funds own 25% of Qonto. Valar Cost Basis: $27.0M Current FMV: $52.3M Gross Multiple: 1.9x Current Company Valuation: El 55.0M Other Key Investors: Alven Capital VALAR / 26 EFTA00810500 Valor Fund 41 CO:'A Digital, Flexible, Affordable Insurance EFTA00810501 Valar Fund 4 / •,,I I >1111C II IS Coya Updates ✓ Insurance license issued in June 2018. A new view ✓ First products went live in Germany in September. insurance. Digital. Fl ✓ Initial renters policy can be obtained in less than 60 second. Users receive a digital offer by simply entering their name, postal code and apartment size. ✓ Plans to offer customizable products that adapt to clients' individual needs, including so-called "micro policies" that allow clients to insure individual objects for only a few days or even hours. ✓ First corporate partnership also now live. B2B2C channel is attractive as Coya can innovate on the actual insurance product offered (as opposed to other "insuretechs" who are limited by the products their underlying license holder is willing to underwrite). Valar Cost Basis: $21.8M ✓ Valar led Coya's Seed financing round through Valar Current FMV: $26.0M Fund 3 in 2017, and Valar Fund 4 led Coya's Series Gross Multiple: 1.2x A financing in May 2018. In aggregate, Valar funds Current Company Valuation: €75M own 31% of Coya. Other Key Investors: E.ventures, SCOR, Yabeo VALAR / 28 EFTA00810502 Valar Fig. 4 14/Ci n4') bestow Life Insurance that is Fast, Easy and Affordable EFTA00810503  S bestow ValarFund4/CIr \!..11,111,, Bestow Background I Bestow is a life insurance company that is expanding the market for term life insurance through technology. Take our 3 minute 1 The company currently operates as an MGA and has assessment. secured agency licenses in 49 states. Bestow is in the 0 T II tittle Neu. yourself. This hey we ton twee • perfect helot, Mal is process of becoming a fully licensed insurance &Pored la ,wan. yOur I arra,/ carrier in Texas. ',III A out ol So quenlearsItt r Bask auntkffit about you• Inettelosna I health so we (err get the hest .at. lot you. 1 By selling directly to consumers and removing blood draws from the underwriting process, Bestow is able to offer term life in much smaller and more affordable increments — to a wider population. 1 The company has partnered with Sammons and Munich Re to underwrite its policies and to reinsure the risk. Valar Cost Basis: $11.0M I In April, Valar led Bestow's Series A financing with an $11M investment at a $44M pre-money valuation. Current FMV: $11.0M Gross Multiple: 1.Ox ✓ Valar Fund 4 owns 20% of Bestow. Current Company Valuation: $55M Other Key Investors: NEA, 8VC, Morpheus Ventures VALAR / 30 EFTA00810504  &MVO WWII/ POWER err • OF PARKS _tad 'monf amalgam.* Valar Fund 4 / • • • • •• AN • • taxfix - -. •• 0 • ••••• • " • • • I. -0 • • •• • • I • • • , • • o • • a • • • • I % • • I • , •' 4 1 • • • • a V a • •' 0 • • I • • • a Hassle-Free Tax Filing 1 • • • • 0 • a • a • • • es* from Your Phone • • • * • • • • • • 0; • IP • ` • • % t be • • • •• I •• a • • • • • • 0•1/ ) St‘‘ • •• 1 I 1 • • • 0 • •• • • • • • • • •