EFTA00810239

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 We lead Series A and Series B investments (valuations between $20M - $100M). We keep significant reserves to follow-on in our best companies. Sector We focus on high-margin businesses operating in massive addressable markets. Examples: Fintech, Software, Marketplaces Geography The majority of our companies are based in the United States and Europe. Q 0 Q Cost basis by stage: • Series A • Series B • Seed • Later follow-ons Cost basis by sector: • Fintech • Software • Marketplaces • Other Cost basis by geography: • US & Canada • Europe • Australia/New Zealand • Other VALAR EFTA00810242 Results Fund Inception Capital Commitments Current FMV Gross/Net Multiples Gross/Net IRRs DPI % of Fund Invested/ 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 We've kept our funds small. The first funds raised by Union Square Ventures, Founders Fund, FirstMark, IA Ventures and Foundry Group had average capital commitments of $129M. These funds were among the best performing early-stage funds of the last decade. $250,000,000 $187,500,000 $125,000,000 $62,500,000 $o $ 100M Fund 1 (October 2010) $102M Fund 2 (January 2015) $104M Fund 3 (July 2016) VALAR I EFTA00810246 We believe in concentration. Only 6-8 core investments in each fund, with 50%+ of each fund invested in the best 2-3 companies. $125,000,000 $93,750,000 $62,500,000 $31,250,000 The 2 best performing companies in Fund 1 received 54% of the Fund's capital. The 3 best performing companies in Fund 2 received 52% of the Fund's capital. 3 major investments in Fund 3 have received 42% of the Fund's capital commitments, with 25% still reserved for follow-ons. STASH 1gOctane Fund 1 Fund 2 Fund 3 VALAR 9 EFTA00810247 We follow-on heavily in our winners. $500,000,000 $375,000,000 $250,000,000 $125,000,000 $o Fund 1 I ( 7 separate investments into 2 companies account for 99% of Fund l's current profits. • Transferwise • Xero O Other Investments Cost Basis Current FMV • Fees/Expenses $160,000,000 $120,000,000 $80,000,000 $40,000,000 Fund 2 $O Cost Basis Current FMV 1 10 separate investments into 3 companies account for 92% of Fund 2's current profits. • Breather • N26 O Kalo O Other Investments • Fees/Expenses VALAR I 10 EFTA00810248 High Concentration + Aggressive Follow-Ons + Small Funds = Any single company can return a fund multiple times over. Fund 1 0 7TransferWise Fund 2 ©breather N 2 6 kalo Fund 3 STASH Octane x qonto Fund Ownership Required Exit Valuation to Return the Fund Current Valuation Current Contribution to Fund Multiple 6.7% $1.5B $2.0B 1.3x 15.2% $651M $1.7B 2.6x 16.8% $609M $252M 0.4x 13.5% $758M $302M 0.4x 23.5% $435M $70M 0.2x 18.4% $565M $253M 0.4x 16.2% $642M $83M 0.1x 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 EyeEm Our network and brand generate high quality Deal Flow and Access. IN-HOUSE RESEARCH to ® breather N26 Jetty VALAR VALAR EFTA00810251 Post- Investment: Our network and brand help provide a Bridge to Growth Capital. Sources of Deal Flow: \ \EAR NETWORK "TransferWise STASH kalo Octane CO'fik LOCAL FUNDS qonto granify EyeEm IN-11OLSE RESEARC11 ®breather N26 Jetty VALAR Follow-On Investors: qTransferWise • N26 al6z IVP Accel Matrix Capital (f)breather STASH Horizons Battery Menlo Google Ventures kalo Coatue Jim Breyer SciFi VC (Max Levchin) VALAR I 14 EFTA00810252 Investment Discipline VL AP EFTA00810253 Strict Investment Discipline All investments must pass 3 key tests: TEST 1 Team TEST 2 Total Addressable Market (TAM) TEST 3 Traction 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 customers across the globe. Xero is listed on both the NZX and ASX under the ticker symbol XRO. Headquarters: Auckland Valar Cost Basis: $31.4M Current FMV: $124.3 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 retail customers by coordinating transfer needs within countries. Headquarters: London Valar Cost Basis: $22.2M 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, meetings and to focus. Headquarters: New York City & Montreal 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 experience. Headquarters: Berlin 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, often without an effective way to keep track of them. Kalo (formerly Lystable) provides an elegant platform to simplify every step of these workers — from onboarding to internal reviews to payment. Headquarters: London & San Francisco Valar Cost Basis: $12.4M Current FMV: $16.5 Gross Multiple: 1.3x Date of Initial Investment: May 2015 Pre-Money Valuation at Initial Investment: $7.5M 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 base and machine-curated image library provide a more valuable sourcing channel for commercial clients than traditional stock photography databases. Headquarters: Berlin Valar Cost Basis: $10.4M Current FMV: $11.1M (change due to FX) Gross Multiple: 1.1x Date of Initial Investment: April 2015 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. By offering consistency, Even helps its customers save more and avoid expensive payday lenders. Headquarters: Oakland Valar Cost Basis: $4.5M Current FMV: $4.5M 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 buy and changing their mind while they're still on the site by harnessing the power of real- time data analytics and machine learning. Headquarters: Edmonton & Austin Valar Cost Basis: $7.5M Current FMV: $8.7M Gross Multiple: 1.2x 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 TRADE IT 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 brokerage commission model. By leveraging technology and taking the transaction process online, Homie makes FSBO a real option for sellers and saves home buyers thousands of dollars. Headquarters: Salt Lake City Valar Cost Basis: $2.8M Current FMV: $2.8M Gross Multiple: 1.0x Date of Initial Investment: March 2016 Pre-Money Valuation at Initial Investment: $15.9M 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 black box service to do it for them. Starting with as little as $5, Stash investors build a portfolio of investments that aligns with their interests, beliefs and goals. Headquarters: New York City Valar Cost Basis: $22.1M Current FMV: $48.3M Gross Multiple: 2.2x Date of Initial Investment: January 2016 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 markets starting with powersports. Headquarters: New York City Valar Cost Basis: $13.2M 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 service that allows businesses to create an account in less than five minutes. Headquarters: Paris Valar Cost Basis: $8.4M Current FMV: $10.6M 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 faster by removing obstacles and risks. Its mission is to protect its customers against setbacks of all kinds, from fire and theft to wasted time and money. Headquarters: New York City Valar Cost Basis: $8.1M Current FMV: $8.1M Gross Multiple: 1.0x Dat of Initial Investment July 2017 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 point of need, with personalized predictive risk management and simple, transparent insurance designed to manage life's risks. Headquarters: Berlin Valar Cost Basis: $6.3M Current FMV: $6.3M 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 sIsiCpuy up-rnollod t s e EFTA00810277 Over 60% of Fund l's profits from Xero were attributable to Valar's follow-on investments. 75,000,000 60,000,000 45,000,000 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 (f)breather Over 40% of Valar's profits from Breather are expected to come from our follow-on investments in the Company. 30,000,000 24,000,000 18,000,000 12,000,000 6,000,000 0 Breather (Series B) ,ft d Breather (Series B-2) Breather (Series C) ■ Valar Cost Basis ■ Valar Current FMV VALAR I 41 EFTA00810279 N26 And nearly 40% of Valar's profits on N26 will also be attributable to follow-on investments. 37,500,000 30,000,000 22,500,000 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 STASH 37% of Valar's profits from Stash are attributable to our second investment in the company and 57% from Valar's third investment. 37,500,000 30,000,000 22,500,000 15,000,000 7,500,000 0 = Stash (Seed) ■ Stash (Series A) Stash (Series B) Stash (Series C) ■ Valar Cost Basis ■ Valar Current FMV VALAR I EFTA00810281 kalo 90% of our profits from Kalo will be attributable to our third and fourth investments into the company. 12,500,000 10,000,000 7,500,000 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 '7 TransferWise Finally, while only 24% of our current Transferwise profits are attributable to follow-on investments in the company, those additional investments are expected to add at least a full lx to Fund l's returns. 225,000,000 180,000,000 135,000,000 90,000,000 45,000,000 0 ■ p Transferwise (Series A) AmE_J 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 presentation may not be copied, reproduced, or redistributed without the express written permission of Valar Ventures LLC (the "Sponsor"). This presentation is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use is contrary to local law or regulation. Nothing in this presentation should be construed as an offer to sell or a solicitation of an offer to buy any securities and may not be relied upon in connection with the purchase or sale of any security. This presentation is not intended to provide, and should not be relied upon for, legal, tax, regulatory, investment financial, or accounting advice or investment recommendation. Statements contained herein are made as of June 30, 2017 unless otherwise noted, and are subject to change without notice. The valuations forecasts, estimates, opinions, and projections contained herein involve elements of subjective judgment and analysis. There can be no assurance that assumption made in connection with such valuations, forecasts, estimates, opinions, and projections will prove accurate. These materials may contain forward-looking statements that are subject to certain risks and uncertainties. The Sponsor undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such dates or to update or keep current any of the information contained herein. Certain information and data contained herein are based on sources the Sponsor believes to be reliable, but such information has not been independently verified. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS AND SHOULD NOT BE RELIED UPON FOR MAKING AN INVESTMENT DECISION. ANY INVESTMENT IN A PROGRAM OFFERED BY THE SPONSOR OR ITS AFFILIATES WILL BE HIGHLY SPECULATIVE AND THERE CAN BE NO ASSURANCE THAT SUCH PROGRAM'S INVESTMENT OBJECTIVE WILL BE ACHIEVED. INVESTORS MUST BE PREPARED TO BEAR THE RISK OF A TOTAL LOSS OF THEIR INVESTMENT. ADDITIONAL DISCLAIMER FOR THOSE WHO WILL RECEIVE OR ACCESS THIS DOCUMENT IN THE UNITED KINGDOM: This document is directed solely at, and made only to, persons that we believe are: (a) "investment professionals" (as that term is used in and by article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 (the "Order"); and (b) "high orth companies"; "high net worth unincorporated associations igh net worth partnerships" or the "trustees of high value trusts" (toge "high net worth companies etc.") (as each of these terms is us and by article 49(2) the Order). There are in place proper ms and procedures to prevent any other recipient from enga in the investment activities to which this document relates wi directing the communication of this document, a close relativ member of the same group. This document is not a prospectus. It has not therefore been: (a) prepared in accordance with the requirements of Part VII of the Financial Services and Markets Act 2000, and the Handbook of rules and guidance maintained by the Financial Conduct Authority (the "FCA"); and/or (b) submitted to, or shared or registered with, the FCA. Consequently, interests in the funds described in this document may not be ordered or sold to the public in the United Kingdom; and no application can or will be made for interests in the fund to be admitted to trading on a regulated market situated or operating in the United Kingdom, or any other country. For investment professionals: ument is directed at persons having professional expert nee in matters relating to investments; and any investment or investment activity to which it relates is available only to such persons, and will be engaged in only with such persons. Persons who do not have professional experience in matters relating to investments should not rely on this document. For high net worth companies: This document is directed at high net worth companies, and the controlled investments and controlled activities to which it r tes are available only to such persons. 4a VALAR -16 EFTA00810284