EFTA00591045.pdf

915 BROADWAY. SUITE 1101 NEW YORK. NEW YORK 10010 [email protected] [email protected] VALAR VENTURES VALAR VENTURES IS AN INTERNATIONALLY-FOCUSED VENTURE CAPITAL FIRM fin OWNMet IS COMOfnb.Y.IMl 54041. and 00ICOF !UMW CIMINICA Alst DMtlm3M,I41Ny.1gnlM M MuNIMLItl. Mato NKr mite nivil pipits 44060n31 Altalift 101006/01M414 alseamors. This donamm d Wont.1110.141 YW6 MC 40&(01W bIJ SOIL Mid Of a SMC[YOOI011uf.SC9 a hold atqmmitios. Mom had la iN Mau Pilcomat Mimaanada W Its tom 01 an/ relabordelp wanialat V4MureLltinKNOMAILLC CValanifa 4IM4CM. EFTA00591045 INTRODUCTION VALAR HIGHLIGHTS VALAR, A GLOBAL VENTURE CAPITAL MANAGER, HAS ACHIEVED EXTRAORDINARY RETURNS FOR ITS CLIENTS, TRIPLING ASSETS IN INCEPTION - 2010 TOTAL INVESTED - $78.0 mil JUST OVER THREE YEARS AND VASTLY OUTPERFORMING INDUSTRY TOTAL GROSS & NET VALUES BENCHMARKS. $271.2 mil / $223.0 mil GROSS & NET MULTIPLES VALAR VENTURES NET MULTIPLE NET IRR 3.5x / 2.9x GROSS & NET IRRs Since 2010, the value of client assets has risen from US VALAR 2.9x 98.4 % 120% / 98% $78 million to $271 million, for gross multiples and IRR of 120% and 3.5x; net multiples and IRR are 2.9x and 98%. CAMBRIDGE US VC INDEX 1.7x 31.3% As by pmerte0 arc uwAnt0 eitinetes tn1)50 es t. 6430/2011. Mel 03unn My) cakaatod try Neap 'ots Valar is managed by Andrew McCormack and James CAMBRIDGE GLOBAL EX-US 1.1x 5.5 % Pt.:Abby a 801 25% tOnt/POthebtai n$.16.1ettntet tee. DEVELOPED MARKET VC/PE INDEX memos <r0 ten Fitzgerald; Peter Thiel, one of Silicon Valley's most successful venture capitalists, serves as the firm's advisor CAMBRIDGE GLOBAL EMERGING 1.0x 01% and chairman. MARKETS VC/PE INDEX The firm is launching its first institutional fund, which will S&P 500 1.6x 10.5 % deploy up to $150 million during 2015-2019, its primary Wireatcf iniente0 bVS se es ce 6/50/201s Vete mide es nrs1 mestment on 10/21/2010 amuse twat Cern. Oncipt dote is not nude erttUble for seven. tenths Siff the and of 'UMS VOW KM MUMS the awns meat investing phase. MY dace /WSW* ner vlef.aa0 2010 ruACIU ii thOQQM 01US W. Cant 'da It as 010/31/2011w4n the NN 01 ex-VS denim:et, encl men,n9 asnattf aVVC. Centa:ge 0,4 nes l 9/30/]OIS timbers veserteel tor the SW 300 we tor the venalmama (MI tracery Osy ce 2010) 6/30/2014 Net neve, ice We er0 lox S&P S00 etre (*MAWS by N0ufw10 pan paltt LI a 2011S% Is. topanhaUtal rnatalaallita NN. Oxtail:tat ale caw, Al 00Ws pmente0 ere n USD Vihrs Ivan re uleuditt0 estendes ccorpecesne es rolled end invented suns/knees Scon:es. Centedee Amore% Deer Arum: Sten03.0 & Pan end Ws INTRODUCTION / VALAR ADVANTAGES / PORTFOLIO / TERMS CONFIDENTIAL & TRADE SECRET 2 EFTA00591046 INTRODUCTION / TEAM ANDREW AND JAMES FOUNDED VALAR IN LATE 2010 TO PARTNER WITH THE BEST ENTREPRENEURS OUTSIDE THE UNITED STATES. The team brings extraordinary operational, deal-sourcing, and reputational assets to its investing activities. kor ContaAzul TransferWise Canopy Labs Omplica. orra granify 4t INTRODUCTION / VALAR ADVANTAGES / PORTFOLIO / TERMS CONFIDENTIAL & TRADE SECRET 3 EFTA00591047 INTRODUCTION / TEAM ANDREW JAMES McCORMACK FITZGERALD PARTNER PARTNER Andrew McCormack Andrew is a founding Partner at Valar Ventures. James Fitzgerald James is a founding Partner at Valar Ventures. Prior Andrew's career in technology has included business and corporate to Valar, he was COO and General Counsel of Peter Thiel's global parent development roles at eCount (acquired by Citicorp) and Yahoo!. He joined company, Thiel Capital, where he helped manage Peter's extensive network PayPal in 2001, where he worked closely with Peter in preparing for the of investments and businesses. In that capacity, he worked closely with the company's IPO. After PayPal's sale to eBay, Andrew helped launch Clarium Founders Fund, Mithril, and Clarium. Capital and later founded a restaurant group in San Francisco. Prior to joining Thiel Capital, James practiced law for seven years in the New In 2008, Andrew rejoined Peter at Thiel Capital, where he led various York office of Skadden, Arps, Slate, Meagher & Flom LLP. He received his J.D. international initiatives for Thiel Capital and Peter personally. Andrew from the University of California, Los Angeles and his undergraduate degree received his B.A. in Political Science from the University of Pennsylvania. from Brigham Young University. INTRODUCTION / VALAR ADVANTAGES / PORTFOLIO / TERMS CONFIDENTIAL & TRADE SECRET 4 EFTA00591048 INTRODUCTION / TEAM and law enforcement communities to integrate, visualize, and analyze the E world's information. In the same year, he made the first outside investment PETER THIEL in Facebook. CHAIRMAN In 2005, he co-founded Founders Fund, a leading Silicon Valley venture capital fund that has pioneered new methods of venture financing that benefit founders. Through Founders Fund, as well as through his private investing, Peter has helped build the next generation of tech companies. Peter earned a B.A. in philosophy from Stanford University and a J.D. from Stanford Law School, where he occasionally teaches on globalization and technology and serves on the board of overseers of the Hoover Institution. Peter Thiel is a founding Partner and the Chairman of Valar. As a technology His articles have appeared in Policy Review and the Wall Street Journal. He entrepreneur, investor, and philanthropist, he first gained attention for lives in San Francisco. innovations in banking and startup finance. Today he is known as the mentor of the PayPal network of entrepreneurs. He works to accelerate innovation As Chairman of Valar Ventures, Peter provides strategic advice and mentoring by identifying and funding promising technology ideas and by guiding to Valar and its portfolio companies. successful companies to scale and dominate their industries. In 1998, Peter made e-commerce easier, faster, and more secure by co- founding and leading PayPal. In 2002, he sold PayPal to eBay and founded a global macro fund, Clarium. In 2004, he co-founded Palantir Technologies, which offers platforms for finance companies and intelligence, defense, INTRODUCTION / VALAR ADVANTAGES / PORTFOLIO / TERMS CONFIDENTIAL & TRADE SECRET OS EFTA00591049 VALAR ADVANTAGES / EXECUTIVE SUMMARY VALAR IS DIFFERENTIATED BY SEVERAL DISTINCT ADVANTAGES: TRACK RECORD: Valar's managers have TEAM: Valar's team has a successful and ACCESS: Valar has access to deals at shown exceptional investing acumen. long record of working together to find and propitious moments - when local VCs have Returns are at the top of class. with a net oversee investments. moderately de-risked the company but multiple and net IRR of 2.9x and 98.4%. before scale makes the investment obvious respectively. REPUTATION: In addition to an outstand- to large, less price-sensitive investors. ing track record and strong credibility with THESIS & MARKET: Persistent inefficien- portfolio companies, the team is advised We believe these characteristics serve as cies in venture markets outside the US by Peter Thiel. consistently named one of a solid foundation for outperformance in provide compelling opportunities for the most influential venture capitalists in Valar's new fund. future returns. the world. Net Ivies ve es oi (.150/20U aM eve min:kilned en win," gross Flails Dv 01412Y6 for mre9ernern hes.moms end cloy INTRODUCTION / VALAR ADVANTAGES / PORTFOLIO / TERMS CONFIDENTIAL & TRADE SECRET 06 EFTA00591050 VALAR ADVANTAGES / THESIS GLOBAL VENTURE CAPITAL IS HIGHLY INEFFICIENT COMPELLING OPPORTUNITIES GLOBAL VENTURE FUNDING — NON-US STARTUPS ARE RELATIVELY UNDER FUNDED - EX-US IN - US While the abundance of capital in Silicon $50 Valley has compressed returns for all but the best venture firms (most of which are closed to new investors). start- $40 ups outside Silicon Valley have much more limited access to both capital and experienced start-up investors. I $30 This creates compelling, well-priced O opportunities for Valar. SD • f; $20 $10 $0 2006 2007 2008 2009 2010 2012 Son Dow lonts.tils' constitutes the hoe ;melt vtoture nortelsocbde Ve US. .1W% revesert the sibtaalsOmaionty of El veMee funlyg made On VS. INTRODUCTION / VALAR ADVANTAGES / PORTFOLIO / TERMS CONFIDENTIAL Si TRADE SECRET 07 EFTA00591051 VALAR ADVANTAGES / THESIS VALAR BELIEVES THAT THESE INEFFICIENCIES WILL PERSIST, EVEN AS US FIRMS EXPAND OVERSEAS, A PHENOMENON EMBODIED IN THE LACKLUSTER RETURNS OF US VCs OPERATING OVERSEAS. I. Local entrepreneurs perceive satellite II. The best Silicon Valley VCs generally III. This creates opportunities for Valar. offices as merely regional players without do not travel outside the US - they have which has deep links to Silicon Valley. access to the marquee talents of the flag- sufficient deal flow at home and have strong access to capital, and an explicit ship office and disfavor them for deals. partnership and family dynamics that mandate to invest overseas. make frequent travel difficult. INTRODUCTION / VALAR ADVANTAGES / PORTFOLIO / TERMS CONFIDENTIAL & TRADE SECRET OS EFTA00591052 VALAR ADVANTAGES / A GROWING GLOBAL NETWORK • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • ••••e• ••• •••• • • • • • • • 4 • • • • • • • • • • • • • OOOOOOOOOOO • • • • • • • • • • • • • • • • • • • • •••• ••••n •t.•• • • • • • • • ••••-r; • • • • • • • • • • • • • • sap • • •• •-c) • • • • • • • • • • • • nab • • • • • • • • • • • • • • • • • • • • • • • • • • • A. PayPal network develops in San Francisco. C. Team expands Australasian presence. making The firm invests and its relationship with Oppa F. Max Levchin, co-founder and COO of PayPal James joins Andrew at Thiel Capital in 2008: two investments in Australia and establishing and its syndicate produce three additional and a former colleague of Andrew's, introduces the two begin working on special investment their network there. investments in Brazil. the team to Transferwise, establishing Valar's opportunities for Peter. first presence in Europe. D. Oppa's founder. aware of the growing E. Introductions from colleagues and contacts B. Team diligences investments in New Zealand, reputation of the Thiel team, meets with Valar lead to investments in Toronto, establishing the G. Valar establishes its own offices in New York leading to an investment in Xero and an eventual as it begins exploring opportunities in Brazil. beginnings of a Canadian network. to better manage international operations. partnership with NZ government. INTRODUCTION / VALAR ADVANTAGES / PORTFOLIO / TERMS CONFIDENTIAL & TRADE SECRET 09 EFTA00591053 VALAR ADVANTAGES / PORTFOLIO PHILOSOPHY THE FIRM IS FOUNDER FRIENDLY AND EMPHASIZES LONG-TERM VALUE CREATION: IT ENCOURAGES FOUNDERS TO RESIST SHORT-TERM FINANCIAL PRESSURES IN FAVOR OF MAXIMIZING LONG-TERM (BUT LIQUID) VALUE. The firm generally enters after a local partner has partially de-risked the investment but before standard metrics make the company an obviously good investment to purely financial investors. The firm prefers to lead initial investments of US $3-10 million. The firm does not believe board seats are inherently valuable, preferring to secure rights via observation and its financing documents. 4t INTRODUCTION / VALAR ADVANTAGES / PORTFOLIO / TERMS CONFIDENTIAL & TRADE SECRET IO EFTA00591054 VALAR ADVANTAGES / INVESTMENT PROCESS DILIGENCE U. ADVICE & MENTORING DEAL SOURCING INVESTMENT DECISION r.- Andrew and James have sourced all of Investment decisions must be unanimous Valar's deals and will continue to find new between James and Drew: Peter provides companies and manage the portfolio. Peter advice and counsel prior to and following provides advice to the firm and its portfolio the investment decision. companies. Valar intends to run a concentrated portfolio of 7-10 significant investments in each fund, aggressively following on in its winners. INTRODUCTION / VALAR ADVANTAGES / PORTFOLIO / TERMS CONFIDENTIAL & TRADE SECRET 11 EFTA00591055 PORTFOLIO / XERO XERO - ACCOUNTING SOFTWARE AS A SERVICE FOR SMALL BUSINESS • Beautiful "scarping software SMALL BUSINESSES ACCOUNTANTS S BOOKKEEPERS M AMOUNT INVESTED: $3.0 mil FEATURE TOUR VALUE AT 6/30/2014. 561.2 mil GROSS MULTIPLE. 20.4X ALL YOU NEED TO RUN YOUR BUSINESS AMOUNT INVESTED: $3.3 mil Try the world's easiest accounting software and you'll see why VALUE AT 6/30/2014: $33.2 mil so many people around the world love xero GROSS MULTIPLE: 10.0X ILE =ION • — 1L" °sea' C.) Gt *O. AMOUNT INVESTED: $20 mil VALUE AT 6/30/2014: $92.7 mil Online accounting Sank reconciliation Invoking Add-ons GROSS MULTIPLE: 4.6X Res Inane witie See Mr cediglow di neelenne. AuMwretitelyinpRI and code Create end semi invents. tut bglin anytime. art/wheys you/ bank ?ans.:Ions auloomdRaly & owl padmint poerndid Odd-OnS- 1.• .4 sown more AMOUNT INVESTED: $5 mil VALUE AT 6/30/2014: $7.5 mil GROSS MULTIPLE: 1.5X TOTAL ROD DRURY: XERO FOUNDER / NEW ZEALAND AMOUNT INVESTED: $31.4 mil VALUE AT 6/30/2014: $194.7 mil GROSS MULTIPLE. 6.2% Towns MUMS Mien let WerAnt0 "011tibriniteS 410i June 30.2014 INTRODUCTION / VALAR ADVANTAGES / PORTFOLIO / TERMS CONFIDENTIAL & TRADE SECRET 12 EFTA00591056 PORTFOLIO / XERO THESIS OUTCOME The market for accounting software is large, growing and surprisingly untapped The firm has grown quickly, taking dominant positions in New Zealand (with many consumers relying on ad hoc ledgers rather than formal software). and Australia. It has launched in the US and will continue to expand in the Incumbent players, e.g. Intuit, are trapped in legacy architecture and have not Anglophone world. Valuation rose from less than US $100 million at the time successfully migrated to the cloud; they also view their accounting products of Valar's initial investment to US $2.9 billion (based on publicly traded prices as leaders for more profitable ancillary services and have under-developed as of 6/30/2014). Xero is now approaching its liquidity window. their marquee products as a result. WWW.XERO.COM Because the opportunity for sales was large even without disrupting incumbents and because few investors were willing to underwrite a multi-year development cycle, Valar saw the opportunity for durable and compelling returns. HISTORY Based on the Valar team's reputation and Silicon Valley connections, a high profile New Zealand entrepreneur introduced one of Xero's directors to Valar in 2010. Valar was convinced that the founder had extraordinary execution abilities, a flair for sales, a plan for rapid global growth and the energy necessary to convert users away from entrenched systems. Xero's driven and experienced COO also gave Valar confidence that the firm would have the institutional heft to support the founder's vision. INTRODUCTION / VALAR ADVANTAGES / PORTFOLIO / TERMS CONFIDENTIAL & TRADE SECRET 13 EFTA00591057 PORTFOLIO / TRANSFERWISE TRANSFERWISE - LOW-COST CURRENCY TRANSFER SERVICES T-T SERIES A rc.r TransferWise Send money Money Help & Support About Us INVESTED: $3.8 mil VALUE AT 6/30/2014: $23.1 mil GROSS MULTIPLE: 6.2X Hey, hidden fees. APR 2O14 / SERIES B INVESTED: $6.7 mil Your secret's out. 1000 VALUE AT 6/30/2014: $6.7 mil Sending money abroad is deceptively expensive, Recel, thanks to the hidden fees we've all been forced to pay. GROSS MULTIPLE: 1.0X Now TransferWise lets expats. foreign students and 1,188.07 businesses transfer money wherever it's needed, at the lowest possible cost. No hidden fees, no headache. FROM THE PEOPLE WHO BUILT ..A.;;Ij 8, feral You'll get f 53.1 COckU KRISTO KAARMANN, TAAVET HINRIKUS: TRANSFERWISE FOUNDERS / UK nom omens Mon tee moans moo tiberutes es t JIM 50.2014 INTRODUCTION / VALAR ADVANTAGES / PORTFOLIO / TERMS CONFIDENTIAL & TRADE SECRET 14 EFTA00591058 PORTFOLIO / TRANSFERWISE THESIS OUTCOME The market for currency-driven financial services is high-fee for historical rather All metrics continue to show extraordinary growth — users, monthly revenues than technological or business reasons — and is thus ripe for disruption. The and transfer volumes (now nearing $200 million monthly) all grew over 7x partners know the space well from Andrew's and Peter's history at PayPal and during 2013. James' work at Clarium, giving them an informational advantage in the space. WWW.TRANSFERWISE.COM HISTORY Max Levchin, one of PayPal's co-founders and its CTO, referred the partners to the founders. The teams met several times, and the partners believed that Transferwise had the ideal combination of a strong technical bench, deep knowledge of finance, and a history of successfully building companies - Taavet Hinrikus was the first employee at Skype and Kristo Kaarmann had a long career at PwC and Deloitte helping financial institutions modernize their infrastructure. Valar led the company's Series A and Series B financings in rounds that closed in early 2013 and 2014, respectively. INTRODUCTION / VALAR ADVANTAGES / PORTFOLIO / TERMS CONFIDENTIAL & TRADE SECRET IS EFTA00591059 PORTFOLIO / VEND VEND - CLOUD-BASED RETAIL MANAGEMENT SOFTWARE MAR 2014 / SERIES D INVESTED: $8.6 mil yen' Tour Examples Pricing About - Resources - Sign In VALUE AT 6/30/2014: $8.6 ro AbOut Us Careers Meula Blog GROSS MULTIPLE: 1.0X 'VEND SNRPSROT: IRTE P013 VAUGHAN ROWSELL: VEND FOUNDER / NEW ZEALAND .goes peurte0 Imen tee gro” tom.,es ot Aane w. 2014 INTRODUCTION / VALAR ADVANTAGES / PORTFOLIO / TERMS *it CONFIDENTIAL & TRADE SECRET 16 EFTA00591060 PORTFOLIO / VEND THESIS HISTORY Traditional retail relies on archaic payment and management systems: while Vend was founded in New Zealand by Vaughan Rowsell, a programmer with online stores have achieved various efficiencies, the much larger offline market a long history at emerging companies. Valar's partners met Vaughan while relies on idiosyncratic, expensive and antiquated systems of cash registers, completing their first investment in Xero - a company Vaughan admired. Over disparate software packages, and non-networked computers. the next two years, Valar followed Vend as it scaled in its home markets and expanded its team. Persuaded that the founder had both the deep technical By creating a point-of-sale system that both customers and retailers find easy knowledge to develop a comprehensive but intuitive retail system from first to use and native to the cloud, Vend makes offline retailing more efficient principles, complemented by a dedicated and business-savvy chairman, and reliable (Vend even works when a store temporarily loses connectivity). Valar led an expansion round of financing in 2014. Retailers no longer have to bear the high fixed and variable costs of ad hoc payment and retail management systems, freeing them to spend time on their OUTCOME area of highest competitive advantage: curating compelling off-line shopping The company has now opened offices in Australia, Canada, and the United spaces. States and growth is accelerating, with more than 8,000 stores now relying on Vend for their POS needs. WWW.VENDHO.COM INTRODUCTION / VALAR ADVANTAGES / PORTFOLIO / TERMS CONFIDENTIAL & TRADE SECRET 17 EFTA00591061 PORTFOLIO / OPPA OPPA - SELF-BRANDED e-COMMERCE AUG 2C.77 SERIES B I oPP0 NO s ...enaclas ihiSPRE SE gp OPPAOLOG 9 ....Icy, AMOUNT INVESTED: $8.0 mil AVUILNILS' MIDVEIS • DECoRAcrAo • LITILIDADES • CAMA E BANI4O • VALUE AT 6/30/2014: $17.3 mil GROSS MULTIPLE: 2.2X SEP 2013 / CONVERTIBLE NOTE MAISVEND ', CD° TODD AMOUNT INVESTED: $5.3 mil TOGO VALUE AT 6/30/2014: $6.7 mil GROSS MULTIPLE:1.3X OPPA MAIS VENDOOS JUN 2014 / SERIES C FILTRAR FOR "MAIS VENDIDOS" Foram encoMrados 123 prodinos Cotogodo In F49ov SO Odom. Pm P000letdoele V AMOUNT INVESTED: $2.S mil Amtionlos VALUE AT 6/30/2014: $2.S mil Sugoothoo do Sun EW"4191cao Fno I C.OR,. Urea Tun:Nona I Alruidada I Orpami I Seia_daLos ML oio GROSS MULTIPLE:1.0X Dace:tact: Car:ern MAX REICHEL: OPPA FOUNDER / BRAZIL fig", preurtell heren are trouSted von <flimsies es ot Jane XL 2014 INTRODUCTION / VALAR ADVANTAGES / PORTFOLIO / TERMS CONFIDENTIAL & TRADE SECRET IS EFTA00591062 PORTFOLIO / OP PA THESIS OUTCOME The merger of high-end design, low-cost manufacturing, and elimination of Oppa has grown rapidly, gaining market share by maintaining high-quality, traditional furniture industry middlemen allows Oppa to deliver both well- fresh designs manufactured quickly and locally. Sales roughly doubled during priced goods and comparatively high gross margins relative to other retailers. 2013 and Oppa is well positioned to meet or exceed that growth in 2014. Direct sales, both online and offline, plus careful maintenance of lean inventory WWW.OPPA.COM allow Oppa (much like Warby Parker in the US eyeglass market) to consistently exceed conventional industry margins. Brazil's import regime also favors domestic manufacturers like Oppa, providing additional barriers to entry for competitors (such as IKEA). HISTORY Oppa's founder had followed the Thiel team; contact was made and after several rounds of diligence, Valar invested. After Valar's first priced investment, Oppa came to the firm for expansion capital. Valar designed its follow-on investment to give the founder the time and flexibility to explore additional sales channels to accelerate growth otherwise unavailable with standard funding mechanisms. INTRODUCTION / VALAR ADVANTAGES / PORTFOLIO / TERMS CONFIDENTIAL & TRADE SECRET 19 EFTA00591063 PORTFOLIO / OTHER PORTFOLIO HIGHLIGHTS tlContaAzul Canopy Labs granify omplica. SEP 2013 NOV 2012/MARCH 2014 AUG 2012/MAY 2014 NOV 2012/DEC 2013 INVESTED: $0.9 mil INVESTED: $0.7 mil INVESTED: $0.4 mil INVESTED: $0.3 mil VALUE: $0.9 mil VALUE: $0.7 mil VALUE: $0.4 mil VALUE: $0.4 mil GROSS MULTIPLE: 1.0X GROSS MULTIPLE:1.0X GROSS MULTIPLE: 1.0X GROSS MULTIPLE:1.5X Valar's thesis for ContaAzul mirrors that Canopy Labs takes customer data and. Using Al and large data sets. Granify helps Descomplica is Brazil's largest on-line it held for Xero: the demand for intuitive, applying a proprietary algorithm. allows companies identify and convert the large classroom and brings high-quality, data- web-based and well-priced accounting companies to find and prioritize their most population of users who visit commerce driven classes to a wired, middle-income sof tware for smaller businesses issurprisingly valuable customers and more efficiently websites but fail to make a purchase - market underserved by traditional off-line underserved. This dynamic is especially target marketing campaigns. offering significant increases in conversion education. The company now has more pronounced in emerging economies with rates at effective costs. than 5.000 lessons and videos available and non-Anglophone accounting needs. WWW.CANOPYLABS.COM has served more than 4.5 million students. WWW.GRANIFY.COM Valar found the team earnest, open-minded WWW.DESCOMPLICA.COM.BR to the Silicon Valley approach and cohesive (having previously worked together). Valar invested in September 2013 and traction has already been strong. Awes plimted Neem ere uniteOted von estmen of 01 Am 30. SC.I. Only a wilco of Yawl onion, coreparin Yo laud Net Masa canat thorMato Piactmont leceneaftlim be a “relplato to and pief4reNna of WWW.CONTAAZUL.COM Gl Nettolo wrinnes. INTRODUCTION / VALAR ADVANTAGES / PORTFOLIO / TERMS CONFIDENTIAL & TRADE SECRET 20 EFTA00591064 TERMS INVESTMENT PERIOD TARGET SIZE MANAGEMENT FEES 5 Years $150 Million 2.5% / year (subject to step-down) LEGAL COUNSEL INCENTIVE FEE GP COMMITMENT Cooley LLP 20% scaling to 25%/30% at 3x/6x returns 1% of overall fund commitments (in addition to Peter Thiel's investment) MINIMUM INVESTOR COMMITMENT AUDITORS $5 Million (subject to GP discretion) BOO INTRODUCTION / VALAR ADVANTAGES / PORTFOLIO / TERMS CONFIDENTIAL & TRADE SECRET 21 EFTA00591065 TERMS 915