BLOCKCHAIN CAPITAL, LLC

BLOCKCHAIN CAPITAL, LLC CRYPTO CURRENCY PARTNERS II, LP NOVEMBER 2014 CRYPTO CURRENCY PARTNERS ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA DBILL EFTA01089506 EXPERIENCED TEAM IN INVESTING BART STEPHENS BRAD STEPHENS BROCK PIERCE PAUL STEPHENS • Stephens Inv. • Stephens Inv. • Bitcoin Foundation • Robertson Mgmt. Mgmt. Board Member Stephens & Co. • Ivanhoe Capital • Fidelity Ventures • Founded 15x • RS Investments EXPERIENCE • E*Trade Group • CSFB Startups • Duke Univ. • Princeton • Furman Selz • Raised > $200M Endowment • Duke • Invested in > 25x • UC Berkeley Startups Endowment RECOGNITION #2 U.S. Long/Short Hedge Fund* 2.5x Venture Fund, 11.5% IRR Leaders in Technology Investing lO CRYPTO CURRENCY PARTNER 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 *Absolute Return Magazine 2014 ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089507 ABOUT STEPHENS INVESTMENT MANAGEMENT LLC STEPHENS INVESTMENT MANAGEMENT FOUNDED IN 2002 BY THE STEPHENS BROTHERS INSTITUTIONAL HEDGE FUNDS & VENTURE FUNDS ASSETS UNDER MANAGEMENT: $150M Decades of Clicr-Pssful Growth Investing CRYPTO CURRENCY ANTHERS ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089508 SUCCESSFUL TRACK RECORD OF HOME RUNS PRIVATE o RelatelQ 2014 E 2004 Ova 2008 2008 A 2014 TBD RUPTURE PUBLIC 4 25.0x 0! 4 8.1x illumina 6.9x Atim.A.T. 5.0x GILON ncsoF-r - 2014 77.0x 2009 39.0x 2010 4.6x 2011 5.1x 2007 3.4x Private and Public Exits through Multiple Market Cycles CRYPTO CURRENCY PARTNERS ONE FERRY BUILDING, SUITE 2SS SAN FRANCISCO, CA 94111 EFTA01089509 BROCK PIERCE - "FATHER OF DIGITAL CURRENCY" INDUSTRY LEADER AND SPOKESPERSON Singularity mil,KFN \ vrITUTE University Neuf i o tic Conn) e..3 HIE WALL STREET JOUR \ 11,. All TODAY BITCOIN FOUNDATION BOARD MEMBER Bitcoin Foundation • Protocol Roadmap • Global Regulatory Insight • Thought leader exposure PATRICK MURCK GENERAL COUNSEL I GAVIN ANDRESEN CHIEF SCIENTIST Repeat Entrepreneur and Digital Currency Visionary CRYPTO CURRENCY PARTNERS ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089510 BROCK PIERCE - SERIAL ENTREPRENEUR expresso FOUNDED CRYPTC GoCoin (payment processor) expresscoin (retail exchange) FOUNDED NON-CRYPTO IGE (2001-2007) Zam (2004-2012) ry, zenBox ZenBox (ATM / remittance network) RAl IMI Exchange (2004-Present) IXAtt Zoomhash (cloud / hardware mining) Xfire 2.0 (2011-Present) Obitcoir Blade Financial (Bitcoin debit card) Playsino (2011-Present) Dtal7C/U: 1> Noble Markets (institutional exchange) Fl E DELTA Five Delta (2012-2014) ,P,9)N" Coin Congress (conference) fib GamesTV (2005-2007) Evertune (2008-Present) Tether (fiat backed alt coin) Extensive History of Defining Digital Currencies CRYPTO CURRENCY PARTNERS ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089511 CRYPTO CURRENCY PARTNERS I, LP ® b bex.io Change . 1 1 11' coinsetter (NI KraKen [7.11edgerX * expresscoin 0 BitGo "resBitFury BTC China Ihr 4 t„ 0 BLADE mockstream app AlphaPoint IzIpzap "4 BLOCK () Gem WI BITACCESS The First Dedicated Bitcoin Venture Fund CRYPTO CURRENCY PARTNERS ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089512 CRYPTO CURRENCY PARTNERS I, LP ventures' khosla ventures 'BENCHMARK Redpoint L LIGHTSPIED VENTURE PARTNERS Ribbit Capital Q. SVAngel RADAR( PARTNERS FOUNDERS FUND PLUGAEPpY Combinator - RItEYentut•s PANTERA *FORTRESS AMPLIFY Sitcom Inc greylock partners. HIGHLAND CAPITAL PARTNERS 500 startups rst Round CAPITAL Bitcoin Co-investments with Leading VCs Ow) CRYPTO CURRENCY PARTNERS ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089513 USE CASES FOR "BLOCKCHAIN TECHNOLOGY" Financial and Records I Bitcoin Private Equities Bonds Public Equities Shareholder Voting Remittance Crowd-funding Spending Records Micro-payments Commodities Trading Records Derivatives Mortgage/loan records Micro-finance Servicing records Micro-charity \. Public Records C 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 * CRYPTO CURRENCY PARTNERS Legal / Health / Education I Smart Contracts Signatures/identity Degrees Wills Genome data Trusts Licensing Medical Records Escrows Delivery records Arbitration Grades Patents Copyrights Certifications Academic Credits .1 Commercial / Media HR Records Rental car keys Accounting records Business transaction records Software licenses Trademarks Betting records Hotel room keys Safety deposit box keys Coupons Vouchers Domain names Betting records Movie Tickets DRM: Music/movie/book license GPS network identity ..1 ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089514 INDUSTRY GROWTH OVER THE PAST YEAR Key Bitcoin Adoption Metrics Quarterly Sep-14 Jun-14 CO A Commerce Wallets 6.559.978 5.427.688 21% Merchants 76.000 63.000 21% Merchants' annual revenue ($bn) 86 29 196% ATMs 251 103 144% Unique bitcoin addresses 184.554 136.152 36% Industry All-time VC investment ($m) 317.0' 225.3 41% Number of VC-backed startups 66' 50 32% Media Mainstream media mentions 9.398 9.024 4% Technology Network Hash Rate (billion/second) 261.900.382 111.194.683 136% Github no. of updated repositories 18.753 15.109 24% Valuation Bitcoin market capitalization ($bn) Saurces: ConDesit Last 12 Months Sep-13 1.353.201 10.0O3 0 0 61.734 30.4 14 1.794 1.213.246 1.573 'ISA.% *cool O4 cloak fM ilkxkcraoll-30Srn I F cures usea are as of era of quart 6 Slate of Bitcoin O3 2014 S ColnDesk CRYPTO CURRENCY PARTNERS ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089515 HYPER GROWTH- ONE YEAR The Mining Arms Race: A More Plausible Total Exchange Trading Volume Sees Bitcoin Price Drop Theory? Steady Growth Bacon New.* Hash Rate (Wiens ci bashes second).2010- Present Cumulative Trading Volume Ibtconsl 104 Sy3 120000 000 .MO WO - 100400000 • X. a00 INS:MOOD 1410Oopo 00000 OM • 60 COO 000 40 DCO 000 20000 000 To remain cOmpeOtwe miners - who Possess perhaps the largest and ever- 0 growng) supply of btcoins - must sell bacons to finance runnng costs and 1 CP se e 1 sal 4,• it 4, 1 rr si hardware upgrades Son Crews t9 C . Approximately 8 Million Bitcoin Wallets Forecast Cut for Bitcoin-Accepting Still Forecasted by End of Year Merchants by 10K to 90K by End of Year • DX COD 13, - 096 ••'. too an 120 000 R, . 0 9777 G.N:C COD 100 000 s • J001, let CM, ••• 60 COO IWO= 60 COO saes 40 000 MOIR ISM 20 000 0 e." dot, 1.0iiiiiordritiidin.tvii.e ✓l'Af t s1 .1‘../.1?I ititi ft e'tet#Nblfott •Nanrctials Fewasie0 Tots Warms Ft/0[4200 Watt faucet &YRr vars.. notonla NSA YU ONO len ma , KISS Owes as radial. Sono Ina NAY 13.0 meals not Co Ca anirmilk• • ..011•C Aetc OWNS. !Woo *Co ...O ass toter. •oo eene inner a.0.•14.0•6•1 ir SOO PM. A100 Ara. WS yr MS swats .-ntre ar• I • • ne...ery .t atm*. Ire alopolais, C --o0n n c•—o— CRYPTO CURRENCY PARTNERS ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089516 CASE STUDY: ChangeCoin 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 ChangeCoin'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 a 30k 25k 20k 3 15k c 10k 3 5k Ok Mar 14 Apr 14 May 14 Jun 14 Jul '14 Aug 14 Sep 14 Date CRYPTO CURRENCY PARTNERS — Sum of Social Accounts — Sum of Users — Sun of Tips Dabliaro ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089517 CCP II - INVESTMENT APPROACH VERTICALS CONSUMER • Exchanges • Remittance • Digital Wallets INFRASTRUCTURE • Side Chains • Blockchain Apps • Mining ENTERPRISE • Multi-sig workflow • Payment Gateways • Financial Tools RIGOROUS PROCESS • Deep Global Domain Knowledge • Extensive Networks • Proprietary Deal Flow • Primary Investigative Due Diligence • Exhaustive Management/ Industry Interaction CRYPTO CURRENCY PARTNER VALUE—ADD • Recruiting • Business Development • Capital Introduction ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 HISTORIC VENTURE RETURNS EFTA01089518 CCP II - STRATEGY AND MAKE-UP FUND POSITION ALLOCATION FUND POSITION STRATEGY $20M 40% New CCP II investments 30% Reserves for CCP II follow-on rounds 30% Access to CCP follow-on rounds 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 Cod CRYPTO CURRENCY PARTNERS ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089519 CCP II - CONTRIBUTED INVESTMENTS BitGo June '14 575,000 Series A preferred Coinsetter December '13 550,000 Convert to Series A expresscoin November '13 525,000 Convert to Series A, 52.5m Cap GoCoin October '13 520,000 Note converted 4.5x at Series A GoCoin October '13 580,000 Common at 52.5m, 4.5x at Series A Kraken April '14 570,000 Series A preferred LedgerX July `14 550,000 Series A preferred TOTAL $37O,OOO (current value —$73O,OOO) SIM and Brock contributing Bitcoin Co-Investments at cost to CCP II CRYPTO CURRENCY PARTNER S ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089520 CCP II - INVESTMENTS MADE PeerNova September '14 550,000 Note Discounted to Series A preferred BitAccess September '14 525,000 Note Discounted to Series A preferred BitPesa September '14 $100,000 Note Discounted to Series A preferred BlockStream October '14 $100,000 Series A preferred ChangeCoin October '14 $100,000 Series A Preferred BitNet October '14 $75,000 Series A Preferred TOTAL $45O,OOO Actively continuing to invest in the ecosystem CRYPTO CURRENCY PARTNER S ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089521 CCP - PARTNERS AND ADVISORY BOARD BOBBY LEE WILL O'BRIEN VINNY LINGHAM MALCOLM CASSELLE STEVE BEAUREGARD CHARLIE LEE IFTIKAR AHMED MATTHEW ROSZAK SCOTT WALKER ADAM ETTINGER BILL LEE CEO, BTC China CEO, BitGo CEO, Gyft (acquired by First Data) CEO, Timeline Labs CEO, GoCoin Coinbase, Founder of Litecoin Partner, Oak Investment Partners Partner, Tally Capital Founder, ZenBox and ZoomHash leading Bitcoin legal counsel prolific angel investor Built a robust team of Advisors and LPs from Bitcoin ecosystem Co) CRYPTO CURRENCY PARTNERS ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089522 CCP II - SUMMARY OF TERMS TERM FEE/INCENTIVE GP CONTRIBUTION INVESTMENTS STRUCTURE Ow) CRYPTO CURRENCY PARTNERS $20M 6-8 Years 2.5% / 25% +2.5% Fund or + $500k 30 ($100k - $500k per deal) Called Capital, BTC Accepted ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089523 CCP II - SERVICE PROVIDERS ADMINISTRATION / CFO -= BTC VAULT 0 CRYPTO CURRENCY PARTNER S Kranz & Associates Sidley Austin Crawford Pimintel Silicon Valley Bank Merrill Lynch Xapo ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089524 SUMMARY CRYPTO CURRENCY PARTNERS FIRST DEDICATED BITCOIN VENTURE FUND UNPARALLELED ACCESS TO DEAL-FLOW PROVEN TRACK RECORDS Building the Future Leaders in the Bitcoin Ecosystem ( ) CRYPTO CURRENCY PARTNER S ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 EFTA01089525