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BLOCKCHAIN CAPITAL, LLC
CCP II, LP
OCTOBER 2015
ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital
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TECHNOLOGY THOUGHT-LEADERS ARE CONVINCED
Bill Gates:
“Bitcoin is be0er than currency…a technological tour de force.”
Ben Bernanke
“[Virtual Currencies] may hold long-‐term promise, parDcularly if the innovaDons 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 potenDal to do something like change
the world.”
Al Gore
“I’m a big fan of Bitcoin…RegulaDon of money supply needs to be depoliDcized”
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."
ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital
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INCUMBENTS EMBRACING THE BLOCKCHAIN
NASDAQ -‐ partnered with Chain to launch private company exchange
“As blockchain technology conDnues 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,
Ci< -‐ launched “Ci<coin” project
"Blockchain technology not only has an opportunity to transform financial services but also extend far beyond
payments to new use-‐cases and applicaDons across industries," -‐ Debby Hopkins, Chief InnovaDon Officer at
CiD
Santander -‐ published: “Fintech 2.0 Paper: Reboo<ng Financial Services”
“Blockchain technologies could reduce banks' infrastructural costs by $15-‐20bn a year by 2022”
Standard Chartered
"The banking industry is starDng to see the many potenDal benefits of its underlying technology. For banks,
the blockchain has the potenDal to become a technology model for a low-‐cost and transparent transacDon
infrastructure.” -‐ Anju Patwardhan, Chief InnovaDon 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 soluDons,
peer-‐to-‐peer soluDons emerging in our industry and we want to be close to that development.” -‐ Simon
McNamara, Chief AdministraDve Officer at RBS
ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital
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THREE TECHNOLOGY EVOLUTIONS OF DISRUPTION
1995
2015
1975
The PC Era The Internet Era The Blockchain Era
Semiconductor Technology
TCP/IP Protocol
Bitcoin Protocol
ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital
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EXPERIENCED TEAM IN INVESTING
BART STEPHENS BRAD STEPHENS BROCK PIERCE PAUL STEPHENS
EXPERIENCE
• Stephens Inv.
Mgmt.
• Ivanhoe Capital
• E*Trade Group
• Princeton
• Stephens Inv.
Mgmt.
• Fidelity Ventures
• CSFB
• Furman Selz
• Duke
• Chairman of the
Bitcoin Foundation
Board
• Founded 15x
Startups
• Raised > $200M
• Invested in > 25x
• Robertson
Stephens & Co.
• RS Investments
• Duke Endowment
• UC Berkeley
Endowment
Startups
RECOGNITION
#2 U.S. Long/Short Hedge Fund*
$500 Million AUM
2.5x Venture Fund, 11.5% IRR
Founded 8 crypto
currency startups
and often referred
to as the “father of
digital currency”
40 Years in Silicon
Valley Investment
Management and
Banking
Leaders in Technology
Investing
Incubated and Founded
Dozens of Startups
100’s of Silicon Valley
Investments
*Absolute Return Magazine 2004
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SUCCESSFUL TRACK RECORD OF HOME RUNS
PRIVATE
PUBLIC
2014
25.0x 2014 77.0x
2004
8.1x
2009
39.0x
2008
6.9x
2010
4.6x
2008
5.0x
2011
5.1x
2014
TBD
2007
3.4x
( 7 IPOs and 13 Acquisitions ) ( 17 Public Acquisitions )
Private and Public Exits through Multiple Market Cycles
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BROCK PIERCE - CHAIR OF THE BITCOIN FOUNDATION
INDUSTRY LEADER AND SPOKESPERSON
SERIAL ENTREPRENEUR
IGE (2001-2007) - Merged with ItemBay
Zam (2004-2012) - Sold to TenCent
Singularity
University
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
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PARTNERS AND ADVISORY BOARD
ALISON DAVIS* | Director: Royal Bank of Scotland, XOOM, Fiserv and First Data
MARY CRANSTON | Director: VISA, ex-CEO and Chair of Pillsbury Winthrop
TERRY SCHWAKOPF | EVP: Federal Reserve Bank of San Francisco, banking supervision
MICHAEL MCADAM | CFO: Union Bank (Mitsubishi UFJ Financial Group)
SIMON MCNAMARA | CTO: RBS, ex-CIO of Standard Chartered, BNP and Deutsche Bank
VINNY LINGHAM | CEO: Gyft (acquired by First Data)
BOBBY LEE | CEO: BTC China
NICCOLO DE MASI | CEO: Glu Mobile
STEVE BEAUREGARD | CEO: GoCoin
CHRIS PALLOTTA | Special Advisor: MIT Media Lab, Partner: Raptor Capital
MATT OCKO | Partner: Data Collective
WILL O’BRIEN | Co-founder: BitGo
CHARLIE LEE | Coinbase, Founder of Litecoin
* Chairman of the Advisory Board
Built a robust team of Advisors and LPs from the Blockchain ecosystem
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CRYPTO CURRENCY PARTNERS I, LP
The First Dedicated Bitcoin Venture Fund - 30 Investments, Fully Deployed
ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital
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CRYPTO CURRENCY PARTNERS II, LP
Current portfolio - both contributed and new investments
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PIPELINE & PROCESS
600+
Business Plans
CONSUMER
200+
Meetings
• Exchanges
• Remittance
• Digital Wallets
• Deep Global Domain
Knowledge
37 Portfolio
Companies
INFRASTRUCTURE
• Side Chains
• Blockchain Apps
• Mining
ENTERPRISE
• Multi-sig workflow
• Extensive Networks
• Proprietary Deal Flow
• Primary Investigative
Due Diligence
• Exhaustive
Management/Industry
Interaction
• Recruiting
• Business Development
• Capital Introduction
• M&A
HISTORIC
VENTURE
RETURNS
• Payment Gateways
• Financial Tools
ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital
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ACTIVE BLOCKCHAIN VENTURE INVESTORS
Blockchain Capital has co-invested with these leading VCs
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CCP II - 8 CONTRIBUTED INVESTMENTS
DATE INVESTED $ AMOUNT DETAILS
BitGo
June ’14
$75,000
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
$70,000
Series A preferred
LedgerX
July ’14
$50,000
Series A preferred
BitAccess
September ‘14
$25,000
Note discounted to Series A preferred
BitNet
October ‘14
$75,000
Series A Preferred
TOTAL
$470,000
(current value ~ $815,000… 1.7x)
General Partners contributed co-investments at cost to CCP II
ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital
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CCP II - 12 NEW INVESTMENTS MADE
DATE INVESTED $ AMOUNT DETAILS
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
TOTAL
$2,100,000
ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital
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CCP II - STRATEGY AND MAKE-UP
EXPOSURE
Diversified Sector-specific
FUND POSITION
ALLOCATION
50%
30%
20%
New CCP II investments
Reserves for CCP II follow-on rounds
Option to use CCP I’s follow-on rights
INVESTMENT STRATEGY
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
ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital
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CCP II - SUMMARY OF TERMS
FUND TARGET
$10-15M
TERM
6-8 Years
FEE/INCENTIVE
2.5% / 25%
GP CONTRIBUTION
+5% Fund or +$1m
INVESTMENTS
25 ($100k - $500k per deal)
STRUCTURE
4 x 25% capital calls, BTC Accepted
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CCP II - SERVICE PROVIDERS
ADMINISTRATION / CFO
Kranz & Associates
LEGAL
Sidley Austin
TAX / AUDIT
Crawford Pimintel
BANK
Silicon Valley Bank
CUSTODIAN
Merrill Lynch
BTC VAULT
Xapo & BitGo
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USE CASES FOR BLOCKCHAIN TECHNOLOGY
Financial and Records
Legal / Health / Education
Bitcoin
Private Equities
Bonds
Public Equities
Smart Contracts
Signatures/identity
Degrees
Shareholder Voting
Remittance
Crowd-funding
Wills
Genome data
Trusts
Licensing
Spending Records
Micro-payments
Commodities
Medical Records
Escrows
Delivery records
Trading Records
Derivatives
Mortgage/loan records
Arbitration
Grades
Patents
Copyrights
Digital Coupons
Servicing records
Micro-charity
Certifications
Academic Credits
Public Records
Commercial / Media
Land titles Birth certificates Vehicle registries
Business license Business Incorporation/dissolution
HR Records
Supply chain mgmt
Business transaction records
Accounting records
Software licenses
Business Ownership records
Regulatory records
Trademarks
Spam Filters
Hotel room keys
Criminal records Passports Death certificates
Voter IDs Building permits Health/safety inspections
Non-profit records Court records Gun permits Voting
Global trade network Loyalty Points Vouchers
Domain names Betting records Movie Tickets
DRM: Music/movie/book license GPS network identity
ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital
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OPPORTUNITES FOR BLOCKCHAIN ADOPTION
Micro-Transactions
All Global Media Companies
Financial Settlement
Stock, Bonds, Derivatives, etc
Remittance Hot Spots
USA, UAE -> India, Mexico, Philip.
Early-Adopt Millennials
USA, EU, AU
Currency Controlled Markets
Korea, S. Africa, China, India
Unstable Markets
Africa, Venezuela, Argentina
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INDUSTRY GROWTH: 2014 to 2015
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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.
ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital
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HYPER-GROWTH- 2013 to 2015
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SUMMARY
FIRST DEDICATED BITCOIN VENTURE FUND
UNPARALLELED ACCESS TO DEAL-FLOW
PROVEN TRACK RECORDS
Building the Future Leaders in the Blockchain Economy
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