The Future of Startup Seed Investing

Better and smarter for both investors and startups

Confidential

1  CrowdSmart was founded in January 2015

and launched at UCLA in February 2016

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Our goal is to create the first ETFs* for seed investment securities comprised of 1,000s of the world’s top startups so everyone can invest wisely in our collective future Our proprietary collective intelligence technology greatly scales investor expertise enabling us to expand curated deal flow and to identify systematically the best startups for investment

* Exchange-traded Fund

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The Evolution of Startup Seed Investing

Individual Investors

Angel Groups

VCs

Crowd Funding

Deal Syndicates

Knowledge Syndicates

Indiegogo

AngelList

CrowdSmart

Risk Adjusted Returns

Time & Technology

One or a Few Experts Decide! Technology Enabled Collective Intelligence Decision!

1.  We source curated startups from top accelerators, angel groups and university incubators (“Aggregators”). Our goal is to source over 5,000 curated startups annually from the top 200 Aggregators within 5 years

(We now expect to achieve this goal within 3 years)

How We Do It? Start with Curated Deal Flow

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Next Up: …

Current:

2.  We recruit angel investors and industry insiders to our Expert Community. Each startup is evaluated by 10 or more selected Experts. To date, a majority of our Experts have come from our Aggregators, such as UCLA, UC Berkeley, Seraph and Wolverine Angels

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Community Facts to Date

•  600+ Expert (70% are repeat contributors)

•  80% Angel investors •  100% College educated •  >3,000 ratings and reviews

Member Benefits

•  Access to curated accelerators •  Collaborative due diligence •  Invest with min. $5k •  Can invest free of carried interest

How We Do It? Use Expert Teams to Evaluate Startups

3.  We employ our proprietary collective intelligence technologies to greatly scale Expert Community due diligence enabling CrowdSmart to identify and propel the most promising startups from a large and diverse collection of startups

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How We Do It? Employ Technology to Scale & Propel

CrowdSmart’s technology creates a “FICO-like” score that is predictive of startup success  

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Alpha Investing UCLA

Qurious.io UC Berkeley

Naked Biome UCLA

Cocoon Cam SkyDeck

Klickly (In Process) Wharton Angels

“AngelList” for institutional real "

estate investments"

AI-enhanced speech-to-text technologies "

for enterprise"

Genomics of skin diseases treatment

and prevention"

AI-video monitoring of human vital signs.

Initial market: infants"

“Smart” buy button for mobile ecommerce and

ad networks"

Seed Raise: $850k $900k $4.2M $1M $1.2M (expected)

Co-investors: 16 9 10 13 +/- 12

Adam Draper, Silicon Valley VC

Georges Harik, PhD Google #7 employee

ActOne VC

BootUp VC

Richard Wolper Partner at Accel VC

Greg Geiser, CEO Wedgewood Enterp.

Greg Badros, PhD Facebook VP Eng & Prod

Matrix VC

Dr. Gus Gerenstien David Signleton Google VC Eng - Android

Lew Feldman Chair UCLA RE Center

Roger Bamford Oracle Lead Architect

Viking VC

Dr. Chad Driscoll Michael Montgomery CFO Disney (former

CS Invested: $50K $75k $100k $50k >$100k (expected)

Results? CrowdSmart Startup Investments(1)

(1) CrowdSmart is currently averaging 1 startup investment per month. We expect this to increase to 3 investments per month by Dec 2017

Scott Smith

•  CEO, Viant Capital

•  MD, Tech Investments at Credit Suisse

•  30+ years startup investment experience

•  Registered Broker/Dealer

•  UC Berkeley JD

Chris Bulger

•  Serial entrepreneur

•  CEO, eCamps

•  Investment Banking at Coast Partners and UBS

•  20+ years early-stage startup investment experience

•  Denison Econ, Columbia MBA

Greg Back

•  Active angel investor

•  MD at Warburg Pincus

•  18+years early-stage startup investment experience

•  McKinsey, 6 years, Mgr.

•  Yale Econ, Stanford MBA

“Outside” Investment Committee

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Responsible for $1+ billion in startup Investments with >3x return

Investment Professionals “Tune” Our Technology

Why Top Startups Love CrowdSmart

•  Transparent process, ratings and feedback provided to startups

•  No cost to startups

•  Little extra work for startup: We use startup’s existing investor materials

1.  Control

•  “Start to funded” in 90 days or less

•  CrowdSmart amplifies a startup’s exposure to angel investors

•  If we say “No” a startup learns what is needed to get to “Yes”

2.  Funding

•  Prioritized feedback from knowledgeable investors and experts

•  Iterative loop builds investor / startup connections and trust

3.  Feedback

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LP Fund Commitment

CrowdSmart is GP

Partner is GP

Diversified Focused

Titan Funds

Portfolio Funds

(Aaron, Seraph, Wolverine)

CrowdSmart’s Family of Funds

Corporate Funds

Industry Funds

(GiTV)

Investment Portfolio

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2.  Special Purpose Vehicle Investments

•  5% one-time fee on invested capital

•  10% carried interest on profits by investment

•  10% bonus on startup investments that return greater than 3X

3.  Partners Funds

•  50/50 split with Fund GP

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1.  Investment Funds!

•  1% mgmt. fee on committed capital

•  10% carried interest on profits by investment

•  10% bonus on startup investments that return greater than 3X

4.  Software License

•  Territory exclusive, with revenue share (Example: Japan deal)

CrowdSmart Revenues

Raising $10 Million: Investor Deal Terms

•  $ 10 Million capital commitment

•  80% of capital invested in 50+ top-scoring startups (Titan Fund #1)

•  20% of capital invested in CrowdSmart for 20% of CS equity

•  Monthly capital call over 20 months

1.  Capital for Titan Fund #1 and CrowdSmart

•  Profit on 50+ startup investments

•  Equity upside on future CrowdSmart exit

•  Bonus: 8% to 10% of GP Carried Interest (direct pass-through in perpetuity, subject to CS dilution)

2.  Benefits for all Titan Investors: Projected return >4X

•  Bonus 10% of Titan Fund #1 GP Carried Interest (direct pass-through)

3.  Benefits to Investors who commit min. $1 Million

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Family Offices Venture Angels and Entrepreneurs

Gene Rosenfeld Real Estate

Soper-Wheeler Forestry

Leo Bunnin Automotive

Greg Back Warburg Pincus

Michael Gayner UBC, I-Banking

Jamie Starck Angel Investor

Kimberly Blattner Angel Investor

Andy Wasklewicz Founder, Tech

Tobias Wuden Founder, Tech

Stephen Bieneman Founder, Aviation

Chris Bulger Founder, Angel

$900,000 Seed Capital

Invested

$2.3 Million Titan Fund Initial Verbal

Commitments

GiTV Japanese VC

Scott Smith Viant Capital

CrowdSmart Investors

Fred Campbell CEO

Serial Entrepreneur, CEO of 6 startups 3 exits (1-IPO), including Egreetings.

MBA, Stanford

Tom Kehler Chief Scientist

CEO of 4 venture-backed startups, 3 exits (2-IPOs), including intellicorp: First AI company to go public.

PhD Physics, Drexel

Markus Guehrs CTO

18 years CTO or equivalent roles in Silicon Valley high tech startups. Lead instructor at General Assembly.

MS Computer Science, Technische Universitat Berlin

Scott Pyne!Core Architect

25+ years in senior architecture roles. 10 years at Sun Micro.

BS EE, John Hopkins

Emily WaskLewicz!VP Product

20 years product management and sales at Apple.

MBA Santa Clara, BS EE, UCLA

CrowdSmart Management Team

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Kim Polese CS Chairman Serves on numerous boards, including UC President’s Board of Science and Innovation. Co-founder and CEO of Marimba

Chuck Young, PhD, UCLA Chancellor Emeritus. Longest serving Chancellor in UC history. Board of Intel and other leading organizations

Scott Page, PhD Professor, Complex Systems, University of Michigan. Author and acknowledged expert on Collective Intelligence

Mark Steyvers, PhD, Professor, Cognitive Science, UC Irvine. Expert in Collective Intelligence

Richard Swart, PhD Research Scholar UC Berkeley. Advisor and Scholar Bill & Melinda Gates Foundation. World Bank. Rockefeller Foundation, and others

Science and Technology

Scott Smith, CEO, Viant Capital. 30+ years startup investment experience including at Credit Suisse where Scott led Tech Investments

Chris Bulger President, eCamps. Serial entrepreneur. Active angel investor. Investment Banking at Coast Partners and UBS.

CrowdSmart Board of Advisors

Greg Back, Active angel investor with 18+ high tech startup investment experience, including as Managing Director at Warburg Pincus

Board Investment

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