BLOCKCHAIN CAPITAL, LLC

BLOCKCHAIN CAPITAL, LLC CCP II, LP OCTOBER 2015 BLOCKFtlprIIN ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 95111 [email protected] EFTA01088644 TECHNOLOGY THOUGHT-LEADERS ARE CONVINCED Bill Gates: "Bitcoin is better than currency...a technological tour de force." Ben Bernanke "[Virtual Currencies] may hold long-term promise, particularly if the innovations promote a faster, more secure and more efficient payment system." Eric Schmidt "Bitcoin is a remarkable cryptographic achievement and the ability to create something that is not duplicable in the digital world has enormous value." Milton Friedman (1999) "I think the Internet is going to be one of the major forces for reducing the role of government... The one thing that's missing, but that will soon be developed, is a reliable e-cash" Peter Thiel "I do think Bitcoin is the first encrypted money that has the potential to do something like change the world." Al Gore "I'm a big fan of Bitcoin...Regulation of money supply needs to be depoliticized" David Marcus (former CEO PayPal) "I really like Bitcoin. I own Bitcoins. It's a store of value, a distributed ledger. It's a great place to put assets." BLOCKCHRIN •-•,•/ CRI=ITRL ONE FERRY BUILDING. SUITE 255 SAN FRANCISCO, CA 94111 [email protected] EFTA01088645 INCUMBENTS EMBRACING THE BLOCKCHAIN NASDAQ 6 .6 4161 Santandc Standard S Chartered 10•4 RBS Me Roy,,, Rut:: 6-1!:‘,,!!,,,,t; 111111 NYSE NASDAQ- partnered with Chain to launch private company exchange "As blockchain technology continues to redefine not only how the exchange sector operates, but the global financial economy as a whole, NASDAQ aims to be at the center of this watershed development," - Robert Greifeld, NASDAQ CEO, Citi - launched "Citicoin" project "Blockchain technology not only has an opportunity to transform financial services but also extend far beyond payments to new use-cases and applications across industries," - Debby Hopkins, Chief Innovation Officer at Citi Santander - published: "Fintech 2.0 Paper: Rebooting Financial Services" "Blockchain technologies could reduce banks' infrastructural costs by $15-20bn a year by 2022" Standard Chartered "The banking industry is starting to see the many potential benefits of its underlying technology. For banks, the blockchain has the potential to become a technology model for a low-cost and transparent transaction infrastructure." - Anju Patwardhan, Chief Innovation Officer Royal Bank of Scotland - announced a $3.5 Billion technology revamp over next 3 years "I don't know what's going to succeed. What I'm certain of is that we are going to see blockchain solutions, peer-to-peer solutions emerging in our industry and we want to be close to that development." - Simon McNamara, Chief Administrative Officer at RBS Bankof America Morgan Stanley BBVA CREDIT aUISSE *BARCLAYS BLOCKCHRIN \-,••••:% CRIDITRL UnionBank JPMorgan ONE FERRY BUILDING. SUITE 255 ti. UBS STATE STREET BNY MELLON \\( •1 RBC SAN FRANCISCO. CA 94111 investor@blockchainscapital EFTA01088646 THREE TECHNOLOGY EVOLUTIONS OF DISRUPTION 1975 The PC PC Era Semiconductor Technology ii & 4 :: Microsoft The Internet Era TCP/1P Protocol ',...;:i) BLOCK EpplII i=TRNLJ_ Goo* amazon ebay facebook The Blockchain Era Bitcoin Protocol ABA it coinbase OD ChangeTip 4 ripple 4 ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 [email protected] EFTA01088647 EXPERIENCED TEAM IN INVESTING EXPERIENCE RECOGNITION BART STEPHENS BRAD STEPHENS BROCK PIERCE PAUL STEPHENS Stephens Inv. Mgmt. Ivanhoe Capital • E*Trade Group • Princeton Stephens Inv. Mgmt. • Fidelity Ventures • CSFB • Furman Selz • Duke #2 U.S. Long/Short Hedge Fund" $500 Million AUM 2.5x Venture Fund, 11.5% IRR Leaders in Technology Investing BLOCKCHRIN CRPITRL Chairman of the Bitcoin Foundation Robertson Board Stephens & Co. Founded 15x • RS Investments Startups • Duke Endowment • Raised > $200M UC Berkeley • Invested in > 25x Endowment Startups Founded 8 crypto currency startups and often referred to as the "father of digital currency" 40 Years in Silicon Valley Investment Management and Banking Incubated and Founded Dozens of Startups 100's of Silicon Valley Investments ONE FERRY BUILDING. SUITE 255 *Absolute Return Magazine 2004 SAN FRANCISCO, CA 94111 investor blockchain.capital EFTA01088648 SUCCESSFUL TRACK RECORD OF HOME RUNS PRIVATE Q RelatelO Yalu at, a RUPTURE A ADDEPAR MM. 2014 25.0x 2014 77.0x 2004 8.1x illumina 2009 39.0x 2008 6.9x 2010 4.6x 2008 5.0x aS1LON 2011 5.1x 2014 TBD lrCSOFT 2007 3.4x ( 7 IPOs and 13 Acquisitions ) ( 17 Public Acquisitions ) Private and Public Exits through Multiple Market Cycles BLOCKCHRIN CRPITRL 6 ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 [email protected] EFTA01088649 BROCK PIERCE - CHAIR OF THE BITCOIN FOUNDATION INDUSTRY LEADER AND SPOKESPERSON SERIAL ENTREPRENEUR Money 20/20 Singularity University INSI DE -o•todl I MILKEN INSTITUTE ©IRE CoinSummit 6The tS ar tg eek41047 """'"Cis4AcouAr,i IMICICcsio 0 BLADE CO ^ co—L— IGE (2001-2007) - Merged with ItemBay Zam (2004-2012) - Sold to TenCent IMI Exchange (2004-Present) Xfire 2.0 (2011-Present) Playsino (2011-Present) GoCoin (payment processor) Blade Financial (Bitcoin debit card) Coin Congress (conference) Repeat Entrepreneur and Digital Currency Visionary BLOCKCHRIN ••-•••!/ CPIPITRL ONE FERRY BUILDING. SUITE 255 SAN FRANCISCO, CA 94111 [email protected] 7 EFTA01088650 PARTNERS AND ADVISORY BOARD ALISON DAVIS* MARY CRANSTON TERRY SCHWAKOPF MICHAEL MCADAM SIMON MCNAMARA VINNY LINGHAM BOBBY LEE NICCOLO DE MASI STEVE BEAUREGARD CHRIS PALLOTTA MATT OCKO WILL O'BRIEN CHARLIE LEE Director: Royal Bank of Scotland, XOOM, Fisery and First Data Director: VISA, ex-CEO and Chair of Pillsbury Winthrop EVP: Federal Reserve Bank of San Francisco, banking supervision CFO: Union Bank (Mitsubishi UFJ Financial Group) CTO: RBS, ex-CIO of Standard Chartered, BNP and Deutsche Bank CEO: Gyft (acquired by First Data) CEO: BTC China CEO: Glu Mobile CEO: GoCoin Special Advisor: MIT Media Lab, Partner: Raptor Capital Partner: Data Collective Co-founder: BitGo Coinbase, Founder of Litecoin * Chairman of the Advisory Board Built a robust team of Advisors and LPs from the Blockchain ecosystem 1111.--1 / OLOCKCHRIN .----,/ ERPITRL ONE FERRY BUILDING. SUITE 255 SAN FRANCISCO. CA 94 i 1 1 investorablockchain.capital 8 EFTA01088651 CRYPTO CURRENCY PARTNERS I, LP =I AlphaPoint b bex.io "T?tBitFury Q BitGo 114, 10 BLADE 4/O Blockstream BTCC chain ChangeTip BLOCK YPHER 1 . 1 1 y l p S , E S S *exPress'in O CIRCLE coinbase ' 11" Gem Go coinsetter Alt CLedgerX Aweem4 ....toy. xapo _Box Mind zao The First Dedicated Bitcoin Venture Fund - 30 Investments, Fully Deployed EILOCKCHRIN ERPITRL ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor.ockchain.caoital EFTA01088652 CRYPTO CURRENCY PARTNERS II, LP ABRA BITACCESS 0 BitGo chcir OitPesa Bitnet -114 idcoinbase 011. *expresscoin ChangeTip coinsetter Blockstream ABA kor Gern GOCOIN eilLedgerX /: .4 ripple PEERNOVA Current portfolio - both contributed and new investments BLOCKCHRIN CRPITRL ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investorablockchain.caoital 10 EFTA01088653 PIPELINE & PROCESS 600+ Business Plans CONSUMER • Exchanges • Remittance • Digital Wallets INFRASTRUCTURE • Side Chains • Blockchain Apps • Mining ENTERPRISE • Multi-sig workflow • Payment Gateways • Financial Tools 200+ Meetings > • Deep Global Domain Knowledge • Extensive Networks • Proprietary Deal Flow • Primary Investigative Due Diligence • Exhaustive Management/Industry Interaction 'i• i BLOCKCHRIN .....-1 -..., CRPITRL 37 Portfolio Companies > • Recruiting • Business Development • Capital Introduction . - ONE FERRY BUILDING. SUITE 255 HISTORIC VENTURE RETURNS SAN FRANCISCO. CA 94111 investoral blockchain.capital EFTA01088654 ACTIVE BLOCKCHAIN VENTURE INVESTORS Gook ventures CC khosla ventures Redpoint LIGHTSPEED Nio VENTURE PARTNERS unionA Ribbit Capital Ty; ventures NEA. BENCHMARK b i g Foundation * FORTRESS RADAR 0 PARTNERS ANDREESSEN HOROWITZ IDG b ° °St PLOWER AY IT- RR E Ventures • • • •• • • • •• FOUNDERS FUND greylock FJ partners. HIGHLAND CAPI IAL PAR I NI RS PANYERA Combinator e )firstii.i CAPITAL Blockchain Capital has co-invested with these leading VCs BLOCKCHRIN CRPITRL ONE FERRY BUILDING. SUITE 255 SAN FRANCISCO. CA 94111 investor@blockchainscapital 12 EFTA01088655 CCP II - 8 CONTRIBUTED INVESTMENTS BitGo June '14 575.000 Series A preferred Coinsetter December '13 $50.000 Converted to Series A at 1.5x expresscoin November '13 $25,000 Convert to Series A, $2.5m Cap GoCoin October '13 $100.000 Converted to Series A at 4.5x Kraken April '14 S70.000 Series A preferred LedgerX July '14 S50.000 Series A preferred BitAccess September '14 S25.000 Note discounted to Series A preferred BitNet October '14 $75.000 Series A Preferred TOTAL $470,000 (current value — $815,000... General Partners contributed co-investments to CCP II BLOCKCHRIN CRPITRL ONE FERRY BUILDING. SUITE 255 SAN FRANCISCO, CA 94111 [email protected] 13 EFTA01088656 CCP II - 12 NEW INVESTMENTS MADE PeerNova September '14 $50,000 Converted to Series A preferred BlockStream October'14 $100,000 Series A preferred ChangeTip November '14 $250,000 Series A preferred Bonafide November'14 $50,000 Note discounted to Series A preferred BitPesa December '14 $100,000 Note discounted to Series A preferred Coinbase December '14 $200,000 Series C preferred itBit January '15 $250,000 Series B preferred Ripple March '15 $250,000 Series A preferred ABRA July '15 $100,000 Series A preferred Stem August '15 $250,000 Note discounted to Series A preferred Chain September '15 $250,000 Series C preferred Gem September '15 $250,000 Series A preferred $2,100,000 BLOCKCHRIN CRIDITRL ONE FERRY BUILDING. SUITE 255 SAN FRANCISCO, CA 94111 investor(r) blockchain.capital EFTA01088657 CCP II - STRATEGY AND MAKE-UP FUND POSITION ALLOCATION INVESTMENT STRATEGY Diversified Sector-specific 50% New CCP II investments 30% Reserves for CCP II follow-on rounds 20% Option to use CCP l's follow-on rights Leverage our network and industry expertise to find investments that utilize Blockchain technologies and help these portfolio companies disrupt legacy industries. Access to CCP's early seed deals as well as future deals BLOCKCHRIN CRPITRL ONE FERRY BUILDING. SUITE 255 SAN FRANCISCO, CA 94111 investor blockchainscapital 15 EFTA01088658 CCP II - SUMMARY OF TERMS FUND TARGET TERM FEE/INCENTIVE GP CONTRIBUTION INVESTMENTS STRUCTURE BLOCKCHRIN •-•••!, CPPITRL $10-15M 6-8 Years 2.5% / 25% +5% Fund or +$1m 25 ($100k - $500k per deal) 4 x 25% capital calls, BTC Accepted ONE FERRY BUILDING. SUITE 255 SAN FRANCISCO. CA 94111 investor@blockchainscanital 16 EFTA01088659 CCP II SERVICE PROVIDERS ADMINISTRATION / CFO LEGAL TAX / AUDIT BANK CUSTODIAN BTC VAULT BLOCKCHRIN CRPITRL Kranz & Associates Sidley Austin Crawford Pimintel Silicon Valley Bank Merrill Lynch Xapo & BitGo ONE FERRY BUILDING. SUITE 255 SAN FRANCISCO. CA 9 4 11 1 investor@blockchai n.capital EFTA01088660 USE CASES FOR BLOCKCHAIN TECHNOLOGY Financial and Records Bitcoin Private Equities Bonds Public Equities Shareholder Voting Remittance Crowd-funding Spending Records Micro-payments Trading Records Derivatives Mortgage/loan records Digital Coupons Servicing records Micro-charity Commodities Public Records Land titles Birth certificates Vehicle registries Business license Business Incorporation/dissolution Business Ownership records Regulatory records Criminal records Passports Death certificates Voter IDs Building permits Health/safety inspections Non-profit records Court records Gun permits Voting Legal / Health / Education Smart Contracts Signatures/identity Degrees Wills Genome data Trusts Licensing Medical Records Escrows Delivery records Arbitration Grades Patents Copyrights Certifications Academic Credits Commercial / Media HR Records Supply chain mgmt Accounting records Business transaction records Software licenses Trademarks Spam Filters Hotel room keys Global trade network Loyalty Points Vouchers Domain names Betting records Movie Tickets DRM: Music/movie/book license GPS network identity BLOCKCHRIN ••-•-!/ ERPITRL ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 [email protected] EFTA01088661 OPPORTUNITES FOR BLOCKCHAIN ADOPTION E .—Micro-Transactions All Global Media Companies Financial Settlement Stock. Bonds, Derivatives. etc Early-Adopt Millennials USA, EU, AU Remittance Hot Spots USA. UAE -> India, Mexico, Philip. Currency Controlled Markets Korea, S. Africa, China, India Unstable Markets Africa, Venezuela, Argentina BLOCKCHRIN CRPITRL ONE FERRY BUILDING. SUITE 255 SAN FRANCISCO, CA 94111 investor (e.)blockchain.capital 19 EFTA01088662 INDUSTRY GROWTH: 2014 to 2015 Key Bitcoin Adoption Metrics Quarterly Year Ago June-15 March-15 Q2/Q1A Q1/Q4A June-14 Commerce Wallets 9.345,510 8.457,207 11% 14% 5,467.263 Merchants 100,000 88,000 14% 7% 65,640 Merchants' annual revenue (Sbn) 187 187 0% 4% 30 ATMs 426 374 14% 9% 126 Unique bitcoin addresses 261,770 203,189 29% 29% 136,152 Industry All-time VC investment ($m) $832 S687 21% 50% $252 Number of VC-backed startups 113 105 8% 15% 58 Media Mainstream media mentions 371 458 -19% -10% 1035 Technology Network hash rate (billion/second) 351.177,610 346.028,956 1% 11% 104,506,281 Valuation Bitcoin market capitalization ($bn) $3.8 $3.4 11% -22% $8.0 A -64% 3x -53% Data sources and notes CoinDesk, Bleckctlain Info, B tcoirREse. GMAI. Coin ATM Radar Figures are cumulatrve horn start of records, except auque bitcoin adtresses and media mentions. ?Audi aro figures for the quarter ending that month Number of VC-backed startups and VC investment unadjusted for ctosed comparies: Meiotic, Buttercoin. BitInstant. and TradeHit State of Bitcoin Q2 2015 CoinDesk 7 BLOCKCHRIN ERPITRL ONE FERRY BUILDING. SUITE 255 SAN FRANCISCO. CA 94111 investor blockchain.caGital EFTA01088663 CASE STUDY: ChangeTip ChangeTip enables a "tipping" feature using Bitcoin on other companies' websites. It has built a Bitcoin micropayment platform that is currently integrated with Twitter, GitHub, Reddit, Google+, Tumblr, and YouTube. We believe that ChangeTip's micro transaction platform is poised to be the financial equivalent of the "Like" button, and enabling new mechanisms for premium online constant to be monetized. Social Accounts by Date ChangeTip BLOCKCHRIN CRPITRL NW '14 Apr 14 Adler, '14 ...Ln '14 Ju 14 Aug 14 Sip 10 OA '14 Na: '14 Acco,t, ONE FERRY BUILDING. SUITE 255 SAN FRANCISCO, CA 94111 [email protected] EFTA01088664 HYPER-GROWTH- 2013 to 2015 Github repository references Number of daily bitcoin transactions 0 Q. • . • 2 11.011 Mir .10 • : • Jan Forecast for Total Bttcoin Wallets by End of 2015 Maintained at 12 million • act", ".. iet) AIM 04.$3 JesI41 Fiala Ai.« OSAI ~If .W.IS LAS Oct SS »a- 14 beat Fandt Dootosotil Wcolba Iowa maim e atrneerre krew Me low *MI Soluisi Nib) BLOCKCHRIN ERPITRL ' L0 000 1. 140 0)0 170.0001. 00.000 eo 000 t• 00.0001. 10 0001. 70.0001. 0 140,000 Bitcoin-Accepting Merchants Forecast by End of 2015 8,0003 140 000 120.000 00 - it' TIMMS 80000 60000 • - 40.034:0 . •-• 20000 4- 0 i ts et .1+ Oft 1 4. 013 \bit / 5 Told I ~art. noon. Fool< 0~0 ~Chet dr° son. ado no ow oink non Ind ~see :adios MI try 0noo w wean ~es. c•••••••••• • MOW OP Sall. PI MOP Mip •.• or Nei NY naniaseo ~ABM sow Bra ~MS ONE FERRY BUILDING. SUITE 255 SAN FRANCISCO. CA 94 1 1 1 [email protected] EFTA01088665 SUMMARY EILOCKCHRIN CRPITRL FIRST DEDICATED BITCOIN VENTURE FUND UNPARALLELED ACCESS TO DEAL-FLOW PROVEN TRACK RECORDS Building the Future Leaders in the Blockchain Economy BLOCKCHRIN CRPITEL ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor blockchain.capital 23 EFTA01088666