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For Use Only With Accredited Investors 2017.07.31
EWM Alternative Investments SPV, LLC-Series 2
Unicorn Technology FundPrivate & Confidential
Diversified Exposure to Late Stage technology companies
For Discussion Purposes Only
July 31, 2017
Approved for Client Use
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For Use Only With Accredited Investors
EWM Alternative Investment Management, LLC-Series 2-Unicorn Technology
2017.07.31
DisclaimerInterests in any alternative investment vehicle are offered only pursuant to the terms of a Confidential Private Placement Memorandum (the "Memorandum"), which is furnished only to
qualified investors on a confidential basis for their consideration in connection with the private offering of limited partnership interests. The Information contained in this presentation may
not be reproduced or redistributed without the written approval of Endowment Wealth Management, Inc.
Before making an investment decision with respect to EWM Alternative Investments SPV, LLC-Series 2-Unicorn Technology (“Unicorn Tech” or “Fund”), potential investors are advised to
carefully read Unicorn Tech’s confidential private placement memorandum and associated offering documents (collectively, the “Offering Documents”), and to consult with their legal,
accounting, and financial advisors. Endowment Wealth Management, Inc, a Wisconsin corporation that is registered as an investment adviser in the State of Wisconsin, will serve as the
Manager of Unicorn Tech (the “Manager”). This document contains a summary of the purpose and principal business terms of an investment in Unicorn Tech, along with research
intended to support the Manager’s investment philosophy. However, as a summary, it does not purport to be complete and is qualified in its entirety by reference to the more detailed
discussions that will be contained in the Offering Documents.
Investment Terms
The specific terms of an investment in Unicorn Tech are subject to the Offering Documents. Such terms may change from the time you receive this document and the time you receive
the Offering Documents.
No Securities Offering
Nothing set forth herein shall constitute an offer to sell any securities or a solicitation of an offer to purchase any securities in any jurisdiction. Any such offer to sell or solicitation of an
offer to purchase shall be made only through the Offering Documents. The Offering Documents will contain additional information not set forth herein, including a description of certain
risks of investing, which will be material to any decision to invest in Unicorn Tech. This document is being furnished solely for the consideration of eligible investors who are “accredited
investors,” as such term is defined in Regulation D under the U.S. Securities Act of 1933, as amended, and who have sufficient knowledge and experience in financial and business
matters and the capability to conduct their own due diligence evaluation in connection with their potential investment.
Contents Subject to Change; Forward-Looking Statements
No information is warranted by the Manager or its affiliates as to completeness or accuracy, express or implied, and the information contained herein is subject to change without notice.
This document contains forward-looking statements, including observations about markets and industry and regulatory trends as of the original date of this document. Forward-looking
statements may be identified by, among other things, the use of words such as “expects,” “anticipates,” “believes,” or “estimates,” or the negatives of these terms, and similar
expressions. Forward-looking statements reflect the Manager’s views as of such date with respect to possible future events. Actual results could differ materially from those in the
forward-looking statements as a result of factors beyond the Manager’s control. Potential investors are cautioned not to place undue reliance on such statements. No party has an
obligation to update any of the forward-looking statements in this document.
Timeliness of Information; Use of Charts and Graphs
These materials should only be considered current as of the date of publication without regard to the date on which you may receive or access the information. The Manager maintains
the right to delete or modify information without prior notice. Charts, tables and graphs contained in this document are not intended to be used to assist the reader in determining which
securities to buy or sell or when to buy or sell securities. This document may contain charts and graphs that present information based on the Manager’s general experience and
knowledge and may not necessarily be an expression of fact corroborated by third party research or statistical evidence. Information contained in this document that is not based on third
party research or statistical evidence is either labeled as such or contains no citation to third party sources.
Past Performance
The past performance of the Manager, its principals, members, or employees, and any other fund sponsored by the Manager or its affiliates (including ETF Model Solutions LLC), is not
indicative of the future returns of Unicorn Tech. There is no guarantee that the Manager will be successful in achieving Unicorn Tech investment objectives. There are inherent risks in
making an investment in Unicorn Tech, including the risk of loss of the entire investment and the risk of fluctuations in value and return.
Any opinions expressed in this document may be subject to change without notice. Endowment Wealth Management is not soliciting or recommending any action based on this material.
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EWM Alternative Investment Management, LLC-Series 2-Unicorn Technology
2017.07.31
Important Information
All oral and written materials prepared or presented, including the information contained herein (collectively, the “Information”) have been prepared solely for the purpose of assisting the
intended recipient (the “Recipient”) in conducting its own independent evaluation and analysis of an investment in the instruments described herein. All projections, predictions, opinions,
forecasts and return on investment illustrations delivered by or on behalf of the Issuer or its affiliates to the Recipient have been prepared for illustrative purposes only, are subject to change
continually and without notice of any kind, and may no longer be true after the date indicated. Any forward-looking statements speak only as of the date they are made, and the Issuer and its
affiliates assume no duty to, and do not undertake to, update forward-looking statements. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which
change over time. Actual results may differ materially from those projected in these materials due to factors including, without limitation, economic and market conditions, political events and
investor sentiments, liquidity of secondary markets, level and volatility of interest rates, currency exchange rates, and competitive conditions
The Information is not all-inclusive, nor does it contain all information that may be desirable or required in order to properly evaluate the investment (direct or indirect) or the issuer discussed
herein. No representations or warranties are made by the Issuer or any of their respective members, partners, shareholders, affiliates, directors, officers, employees, advisors, or agents
(collectively, the “Parties”) as to the accuracy, adequacy, timeliness, completeness or reasonableness of any of the Information herein (or any subsequent oral or written Information), and
none of the Parties will have any liability to any person with respect to any use of, or reliance upon, any such Information.
This presentation and any attachments is for information purposes only, and shall not constitute an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities in
any jurisdiction where such an offer or solicitation would be in violation of any local laws. It does not constitute a recommendation or take into account the particular investment objectives,
financial conditions, or needs of specific investors. The price and value of the investments referred to herein and the income from such investments may fluctuate, and investors may realize
losses on these investments, including a loss of principal.
Past performance is not indicative or a guarantee of future performance. Nothing contained herein constitutes tax, accounting, financial, investment, regulatory, legal or other advice, and all
investors are advised to consult with their tax, accounting, financial, investment, regulatory or legal advisers regarding any potential investment. The information presented in these materials
has been developed internally and/or obtained from sources believed to be reliable; however, the parties do not guarantee or give any warranty as to the accuracy, adequacy, timeliness or
completeness of such information, and assumes no responsibility for independent verification of such information.
This presentation is for the sole use of the Recipient. By accepting delivery of this publication, Recipient agrees not to distribute, offer or sell this publication or any copies hereof, nor make
use of this publication except in the ordinary course of Recipient’s business.
This communication is solely for the intended recipient’s benefit and may not be relied upon by any other person or entity. Target returns are hypothetical in nature and are shown for
illustrative, informational purposes only. This material is not intended to forecast or predict future events, but rather to indicate the returns for the asset classes listed above that the manager
has observed in the market generally. It does not reflect the actual or expected returns of any portfolio strategy and does not guarantee future results. The target returns are based upon the
Manager’s view of the potential returns for investments of the asset classes listed above, are not meant to predict the returns for the Fund nor any accounts advised by the Manager, and are
subject to the following assumptions: Manager considers a number of factors, including, for example, observed and historical market returns relevant to the applicable asset class, projected
cash flows, projected future valuations of target assets and businesses, relevant other market dynamics (including interest rate and currency markets), anticipated contingencies, and
regulatory issues. Certain of the assumptions have been made for modeling purposes and are unlikely to be realized. No representation or warranty is made as to the reasonableness of the
assumptions made or that all assumptions used in achieving the returns have been stated or fully considered. Changes in the assumptions may have a material impact on the projected
returns presented. All data is shown before fees, transactions costs and taxes and does not account for the effects of inflation. Management fees, transaction costs, and potential expenses
are not considered and would reduce returns. Actual results experienced by clients may vary significantly from the hypothetical illustrations shown. Target Returns May Not Materialize.
The information in this presentation may contain projections or other forward-looking statements regarding future events, targets or expectations and is only current as of the date indicated.
There is no assurance that such events or projections will occur, and may be significantly different than that shown here. The information in this presentation, including projections concerning
financial market performance, is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons
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2017.07.31
Private Fund DisclosureInvestors should consider the following regarding the EWM Alternative Investments SPV-Series 2 Unicorn Technology (the
‘Fund”):
Fund is FOR ACCREDITED INVESTORS ONLY that can satisfy certain minimum income and net worth qualifications.
Fund is not subject to the same regulatory requirements as mutual funds, including mutual fund requirements to provide
certain periodic and standardized pricing and valuation information to investors;
Fund is speculative and involve a high degree of risk;
Investors could lose all or a substantial amount of their investment;
Interests may be illiquid and there may be significant restrictions in transfer. There is no secondary market for interests,
and none is expected to develop;
Fund performance may be volatile;
Fund fees and expenses will reduce returns;
Fund may involve complex tax structures; (K-1) and may delay the filing of your personal tax return
Fund may involve structures or strategies that may cause delays in important tax information being sent to investors;
Fund and its managers/advisers may be subject to various conflicts of interest;
Fund may hold concentrated positions with a limited number of investments;
The list set forth here is not a complete list of the risks and other important disclosures associated with such
investments and is subject to the more complete risk and disclosures contained in the applicable confidential offering
documents. For a more complete discussion of risks relating to the Fund, qualified prospective investors should consult
the Memorandum.
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2017.07.31
Table of Contents What is Venture Capital? Page 7
Objective/Status of Fund Page 8
Fund’s Current Investments Page 9
Fund’s Target Allocation Page 10
Target Company Profile Page 11
Target Company Characteristics Page 12
Market Opportunity Page 13
Investment Thesis Page 14
Private Tech Growth: Is It a New Asset Class? Page 15-16
What Are Unicorns? And Unicorn Trends Page 17-20
IPO Trends Page 20-24
Fund’s Current Investments Profiles Page 25-36
Fund’s Key Terms Page 37
Fund Manager Summary/Experience Page 38-45
Fund Manager Team Bios Page 46
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“Venture capital is about
capturing the value between
the startup phase and the
public company phase” Fred Wilson
Co Founder, Union Square Ventures
Venture capital aims to target the most promising and fastest
growing companies within the “innovative economy”.
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Objective/Status of Fund
The Fund seeks to opportunistically acquire a diversified
portfolio of primarily late stage, venture-backed technology
companies with an anticipated near-to-medium-term liquidity
event
Fund to generally source investments in the Secondary
Market through its proprietary network of intermediaries
Target Fund Size: $5-25 million
Raised to-date: $1.875 million (as of 7/31/2017)
Fund has made four investments to-date (Slack
Technologies, SpaceX, Postmates & Cloudera) with a fifth
investment in Sprinklr in-progress.
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Fund Investments
Current investments as of 7/31/2017. Investments subject to change without notice.
1 Fund currently holds $165,000. An additional $500,000 purchase is pending, is not yet
closed and there is no guarantee it will be added to the Fund as of 7/31/17. 2 Fund currently holds $252,000. An additional $250,000 purchase is pending, is not yet
closed and there is no guarantee it will be added to the Fund as of 7/31/17. 3 Purchase is in ROFR (Right of First Refusal) process by the Company, is not yet closed and
there is no guarantee it will be added to the Fund as of 7/31/17.
Company
Amount
Invested Category
Slack Technologies $475,000 Momentum
Space Exploration
Technologies (SpaceX)$665,000 1 Momentum
Postmates $502,000 2 Pre-Unicorn
Cloudera $191,000 Discounted
Sprinklr (in ROFR) $225,000 3 Discounted
TOTAL $2,058,000
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Fund’s Target Allocation*
Fund Target allocations as of 7/31/2017. At any given time, allocations to each category may be higher or lower than
target. Target allocations are subject to change without notice.
*Illustrative purposes only. Not all companies listed are or will be fund holdings
Momentum33%
Deeply Discounted
33%
Mispriced14%
Pre-Unicorn
20%
Examples: Slack,
SpaceX, Wish,
Lyft
Examples:
Cloudera,
Sprinklr, Dropbox
Example:
Palantir
Example:
Postmates
MomentumCompanies with consistent, accelerating growth and
increasing valuations
Deeply Discounted Companies with shares that can be bought at a
reasonable discount from the last financing round
Pre-UnicornCompanies trading at a sub-billion valuation that have
the potential to be a Unicorn in the foreseeable future
Mispriced Companies that are temporarily discounted for a
variety of reasons, such as distressed sellers or ex-
employees seeking liquidity
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Target Company Profile
Individual Fund holdings may possess all, some, or none of the above characteristics
Target Company Profile
Technology sector bias
$100 million in venture
capital raised
$100 million revenue run
rate
At least a $500 million last round evaluation
A recent financing
round within the last 24-36 months
Anticipated exit time-
horizon of 2-4 years
Preferably at a discount to last round's
price
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Target Company Characteristics
Target Company
Characteristics
Strong management teams with a
growth-oriented approach
Backed by reputable venture capital and private
equity firms
Substantial market opportunity with
positive long-term trends for the
respective industry
Potential for increased equity values through
growth, consolidation, or public offerings
Growing revenues and/or user-related key performance
indicators
Successful new product
introductions
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Market Opportunity
Secondary Direct Venture Investment
The Sellers
Growing Market
13
o Purchasing shares of late-stage venture-backed companies from
existing shareholders
o Capital is used to provide liquidity and diversification to shareholders
o Employees who receive a large portion of their compensation in the
form of equity
o Angel investors and early-stage VCs wanting to gain liquidity either to
return capital to investors or engage in other deals
o Traditional VCs, to divest holdings in order to wind down their funds
o Companies are staying private longer than before in order to
avoid premature IPO or acquisition
o Private technology companies are now larger, more diverse, and
better funded than at any time in recent history
o Scale, agility, and global reach create multibillion dollar
valuations, allowing these companies to raise billions without
going public
o Employees and early investors desire liquidity
o Companies demand mission-critical talent
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2017.07.31
Investment Thesis There has been a growing focus and investor/capital concentration around a
select group of mature, very late stage private tech companies. Limited
liquidity based on conditions the past few years has placed pressure on the
management of these firms to provide early-stage investors from 7-10 years
ago and longer term employees a liquidity event (secondary market sales,
IPO, buyout, etc.).
Lackluster performance in global equity markets has limited private
companies from going public in 2015-2016, creating a backlog of companies in
position to IPO.
Same poor equity market conditions in 2015-2016 caused investors to lower
valuations on many private companies, creating mispricing opportunities.
Late-stage venture companies with “proven” concepts, sales growth, multiple
prior financing rounds, proven VC backers, and/or potential profit visibility
reduces investment risk compared to early-stage venture investments.
Economic backdrop appears favorable: low interest rates, low inflation,
modest economic growth.
Investment in late-stage growth companies offers an opportunity to earn
greater returns than public equity and bond markets, which appear to be
over-valued at this time.
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Private Tech Growth:
Is It A New Asset Class?
Approx. $200 billion has been invested in U.S. Private Tech Companies since 2009 at a 28% CAGR* from 2009 to 2015
Number of $100+ million financings have increased over 800% since 2013
2015 and 2014 ranked No. 3 and No. 4 in past 20 years as far as dollars invested in U.S. based Private Tech Companies
There has been a growing focus and investor/capital concentration around a select group of mature, very late stage Private Tech Companies
*CAGR = Compound Annual Growth Rate
Sources: CB Insights, Pitchbook, TechCrunch
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Late Stage Private Growth
Companies Are A Growing
Asset Class
Seed, Series A-B-C to Pre-IPO to IPO / Acquisition
Companies are staying private longer contributing to a 37%
decline in the number of U.S.- listed companies since its
1997 high
IPOs Are Dwindling, so is the Number of Public Companies
Sources: Fortune (Jan 20, 2017) National Venture Capital Association 2016 Yearbook, Nasdaq
Seed CapitalFunding Series (A,B,C, etc.)
Pre-IPO
UnicornsIPO/Acquisition
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What are Unicorns?
Any venture-backed startup that crosses the $1 billion valuation mark is considered a “Unicorn”
This term was first coined by Aielee Lee in 2013, after the mythical animal to represent the statistical rarity of such successful ventures
Unicorn Stats:
196 Global Unicorns with total cumulative valuation of $678 billion as of May’17 (Source: CB Insights)
There are 221 Global Unicorns with $796 billion valuation and have raised a total of $140 billion(Source: Crunchbase)
There are 157 Global Unicorns as of May’17 with very few in the $40 billion plus camp (Uber, Didi Chuxing, Xiaomi). (Source: Wall Street Journal)
Early-stage, investor-backed startups (seed stage) have a 1.28% chance of becoming a Unicorn (Source: CB Insights)
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Global Unicorn Club
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Newly-Minted Global Unicorns in 2017
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Unicorn Trends Not As
Positive in 2015-2016
While 76 companies globally became unicorns in 2015,
only 41 acquired this distinction in 2016 (CB Insights)
Reduced Valuations
Down rounds included: Jawbone, Zenefits, and Doordash
Acquired at/or below peak valuation: Gilt Groupe, Living
Social and One Kings Lane
Shut down operations in 2016: Mode Media and Powa
Technologies
40% of unicorns taken public or sold in 2016 occurred at
lower valuations than their last private financing round
(Source: Fenwick & West)
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Poor IPO Market in 2016 2016 marked the worst year for IPOs since 2009; 37 venture
backed companies went public in 2016, 46% less than in 2015 and the median market cap held steady at $310 million (Source: CB Insights)
Numerous factors were responsible for the slow IPO market in 2016:
Early market sell off in January
Brexit vote
US elections
Lowering of public equity valuations
Twilio’s debut in 2nd quarter of 2016 was the first technology unicorn to IPO since Nov’15 (Square) followed by Nutanix and Coupa
Technology IPOs gained an average of 40% over their IPO price, much higher than the 23% gain for overall IPOs in 2016 (Source: TrueBridge)
(Source: Renaissance Capital)
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While IPO Success Limited,
2016 M&A Market Remained
Healthy
The five largest venture exits in 2016 were a result of
corporate acquisitions, three of which were life science
companies. Stemcentrx was the largest deal of the year
with a $10 billion acquisition by Abbvie; the largest venture
backed technology deal was Walmart’s acquisition of
Jet.com for $3.3 billion (Source: Pitchbook)
There were 18 $1 billion plus acquisitions in 2016 including
Dollar Shave Club (bought for $1 billion by Unilever) and
Cruise Automation (bought by GM for $1 billion)
In total 561 venture backed companies were acquired with
an average acquisition value of $147 million, resulting in a
6% YOY increase in volume and a 34% increase in valuation
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IPO Market Improving in 2017 As of 6/22/2017, 14 tech companies have gone public in the U.S. so
far this year, raising a total of $5.87 billion (of which Snap raised $3.9 billion)
2017 started with tech IPOs involving Snap and Cloudera, and bankers and investors believe, overall, 2017 will be busier than last year
Nine VC-backed tech companies have pursued IPOs so far in 2017, and all of them (Cloudera, Okta, Mulesoft, Yext, Appian, Alteryx, and Carvana) are trading above their respective private valuation
Cable operator Altice raised more money during its IPO than any other US-listed telecom since 2000.
Companies such as Blue Apron and Spotify are expected to be Bellwether IPOs in the second half of 2017
Spotify is considering simply listing its existing shares on the stock exchange (direct listing)
Snap, the largest tech IPO, has seen its stock drop to around the IPO price of $17 after initially peaking at $27
Cloudera, which priced its IPO at $15, has been trading around $17.50, after peaking at $22.99 on June 8th
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Source: The Information
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2017.07.31
Median Time to exit
reaches 8.2 years
Liquidity continues to be the single biggest challenge for VCs
Median Time to exit for VC-backed companies in the U.S. has crept up to 8.2 years for an IPO and 5 years for acquisitions/buyouts, the highest in the last decade
Many startups are opting to raise a down or flat round or finding ways to lengthen their cash runway
Source: Venturebeat, Dow Jones VentureSource, SEC Filings
3.1 3.1 2.8 2.9 3.2
4.5
3.6
5.7 5.6 5.66.2
6.8
8.7
7.9 8.1
6.4
7.36.9 7
6.3
7.78.2
0
1
2
3
4
5
6
7
8
9
10
Tim
e t
o IPO
(Years
)
Year
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Fund Investment 1:
Slack Technologies, Inc .San Francisco, CA
Slack is a team collaboration platform that
integrates with dozens of services including
Dropbox, Google Docs, GitHub and Twitter to
collect all files, messages, and notifications
in one searchable platform.
Founded in 2009
Investors: Accel, Andreesen Horowitz, Kleiner Perkins, Thrive Capital, Social Capital
Last Round (Series F) Raised in March 2016 at
a Post Money Valuation of $3.8 billion
In 2016, Slack was ranked #1 on the Forbes
Cloud 100 list
Fund Holding: $475,000 in common shares
(Indirect)
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Slack Technologies, Inc.
Valuations
$23.5MM$77.4MM
$280MM
$1.12B
$2.8B
$3.8B
$0
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
$3,000,000,000
$3,500,000,000
$4,000,000,000
Series AMar-10
Series BApr-11
Series CApr-14
Series DOct-14
Series EApr-15
Series FMar-16
Post
Money V
alu
ati
on
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Past performance not necessarily indicative of future results.
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Fund Investment 2: Space Exploration Technologies, Inc. (SpaceX) Hawthorne, CA
Manufactures and launches advanced rockets and spacecraft
Founded in 2002 by Elon Musk; 4000+ Employees
Investors: Draper Fisher Jurvetson, Google Ventures, Fidelity, Sherpa Ventures, 137 Ventures, DBL Ventures, Frontier Tech Ventures
Last Round (Series G) Raised in January 2015 at a Post Money Valuation of $10 billion
In 2017, SpaceX successfully achieved the first reflight of an orbital class rocket-a historic milestone on the road to full and rapid rocket reusability
Fund Holding: $165,000 incommonshares (Indirect)
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SpaceX, Inc. Valuations
$18.82MM
$70.5MM
$316.5MM
$544.5MM
$796.4MM
$1.02B
$10.07B
$0
$2,000,000,000
$4,000,000,000
$6,000,000,000
$8,000,000,000
$10,000,000,000
$12,000,000,000
Series ADec-02
Series BMar-05
Series CMar-07
Series DAug-08
Series EJun-09
Series FOct-10
Series GJan-15
Post
Money V
alu
ati
on
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Past performance not necessarily indicative of future results.
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2017.07.31
Fund Investment 3:
Postmates, Inc.San Francisco, CA
Postmates provides on-demand delivery via a revolutionary Urban Logistics platform that connects customers with local couriers who can deliver anything from any store or restaurant in minutes. They empower communities to shop local with no waiting, and empower businesses to offer delivery through Postmates API.
Founded in 2011
Investors: GSV Ventures, Founders Fund, Huron River Ventures, WP Global Partners, Fontinalis Partners, Tiger Global, Matrix Partners, Crosslink Capital
Last Round (Series E) Raised in October 2016 at a Post Money Valuation of $624 million
Took 2 years to do 1 million cumulative deliveries; now doing 2 million deliveries per month and achieved a $1 billion run rate of gross merchandise value in 1Q-2017; Fleet of over 60,000 drivers and riders that serve customers in 44 metropolitan markets in the U.S.
Fund Holding: $252,000 in common shares
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Postmates, Inc. Valuations
$13.5MM
$81.5MM
$120MM
$458MM
$623.82MM
$0
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
$700,000,000
Series ADec-12
Series BFeb-14
Series CFeb-15
Series DJun-15
Series EOct-16
Post
Money V
alu
ati
on
31
Past performance not necessarily indicative of future results.
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2017.07.31
Fund Investment 4:
Cloudera, Inc.Palo Alto, CA
Developer of a platform for data management and enterprise Hadoop infrastructure. The company offers Cloudera Desktop, a unified graphical user interface for Hadoop applications that allows business analysts, developers and administrators to create and submit jobs, monitor cluster health and browse the data stored on a Hadoop cluster. It also provides enterprise-level support and training services.
Founded in 2008
Filed for IPO Mar 31, 2017 and started trading on Apr 28, 2017
Investors: Intel Capital, Accel, DAG Ventures, Greylock Partners, Firsthand Capital, Fidelity, T. Rowe Price, MSD Capital
Last Round (Series F) Raised in May-2014 at a Post Money Valuation of $4.1 billion with Intel Capital as the only investor
Cloudera’s revenues have grown from $109 million in 2015, to $166 million in 2016 to $261 million in 2017 (FYE Jan)
Fund Holding: common shares –CLDR currently trading at $20.91 as of May 22, 2017 (Fund basis: $15.92/share)
$191,000 in shares locked up for 12 months from Fund’s date of purchase
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For Use Only With Accredited Investors
EWM Alternative Investment Management, LLC-Series 2-Unicorn Technology
2017.07.31
Cloudera, Inc. Valuations
$13.9MM $23.5MM$159.9MM
$348.14MM
$718.4MM
$4.16B
$0
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
$3,000,000,000
$3,500,000,000
$4,000,000,000
$4,500,000,000
Series AMar-06
Series BMay-09
Serices COct-10
Series DNov-11
Series EDec-12
Series F-1May-14
Post
Money V
alu
ati
on
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Past performance not necessarily indicative of future results.
For Use Only With Accredited Investors
EWM Alternative Investment Management, LLC-Series 2-Unicorn Technology
2017.07.31
Fund Investment
(Pending)*: Sprinklr, Inc.New York, NY
Sprinklr is the most complete enterprise social media management technology in the world, purpose-built for large companies to drive business outcomes and manage customer experiences across all touch points. With nearly 700 employees globally, Sprinklr is revolutionizing customer engagement for almost 800 of Fortune’s top enterprise brands, including IHG, Intel, Microsoft, Samsung, and Virgin America, and partners like Accenture, Havas, and Razorfish.
Founded in 2009
Investors: Battery Ventures, ICONIQ Capital, Intel Capital, EDB Investments, Temasek Holdings, Wellington Management, Capnova
Last Round (Series F) for $105 million raised in Jun-2016 at a Post Money Valuation of $1.9 billion with Temasek as the lead investor; Total VC$ raised to-date $247 million
Sprinklr’s revenues passed the $100 million run rate in Fall of 2015 with 150% growth rate; estimated by PrivCo at $260 million in 2016
Called "the most powerful technology in the market" by Forrester, Sprinklr's fully integrated social experience management software powers more than four billion social connections across 77 countries.
Fund in process of purchasing $225,000 in common shares
*As of 7/31/2017, the Fund’s offer to purchase shares was under review and is subject to Rights of First Refusal (ROFR) by the Company There is no guarantee Sprinklr shares acquisition will be consummated
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For Use Only With Accredited Investors
EWM Alternative Investment Management, LLC-Series 2-Unicorn Technology
2017.07.31
Sprinklr, Inc. Valuations
$22.7MM$76.5MM
$261.25MM
$531.5MM
$1.14B
$1.81B
$0
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
$1,400,000,000
$1,600,000,000
$1,800,000,000
$2,000,000,000
Series AMar-12
Series BFeb-13
Series CFeb-15
Series DMay-14
Series EMar-15
Series FJul-16
Post
Money V
alu
ati
on
35
Past performance not necessarily indicative of future results.
For Use Only With Accredited Investors
EWM Alternative Investment Management, LLC-Series 2-Unicorn Technology
2017.07.31
Fund’s Key Terms
Investment: EWM Alternative Investments SPV, LLC-Series 2-Unicorn
Technology
Manager: Endowment Wealth Management, Inc.
Minimum Investment: $100,000
Targeted Fund Size: $5-25 million (current commitments - $1.875 million)
Targeted Close Date: December 31, 2017
Capital Contributions 100% upfront
Management Fees: Year 1: 2% of Assets
Year 2+: 1% of Assets
Manager Incentive: 10% of profits after investors have been returned 100% of
their capital contribution
Distributions: Distributions of shares/cash will be made upon liquidity of
underlying holdings
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For Use Only With Accredited Investors
EWM Alternative Investment Management, LLC-Series 2-Unicorn Technology
2017.07.31
Fund Manager: Endowment Wealth Management, Inc.
Registered Investment Adviser serving clients in multi-family office format
Founded in 1996, Rebranded in 2013 to Endowment Wealth Management®
under current management team
Current management team has worked together since 2007
Track Record: EWM has raised $25 million through SPVs
Previous Venture/PE experience: launched/managed funds involved in
Technology, Retail, Energy, Real Estate, Entertainment, Co-Investments,
Hedge Fund of Funds
Past performance not necessarily indicative of future results.
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For Use Only With Accredited Investors
EWM Alternative Investment Management, LLC-Series 2-Unicorn Technology
2017.07.31
Endowment Investment
Philosophy®
We add a risk-managed
allocation (liquid
alternatives) as a Third
Dimension
to the traditional Stock and
Bond portfolio in order to
improve long-term Risk-
Adjusted Returns
Late-stage Pre-IPO
Venture
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For Use Only With Accredited Investors
EWM Alternative Investment Management, LLC-Series 2-Unicorn Technology
2017.07.31
The Endowment Index®
Fund manager (Endowment Wealth Management, Inc.) is co-founder of the Endowment Index®, calculated by Nasdaq OMX®.
The Endowment Index® represents the investable opportunity for managers of portfolios utilizing the Endowment Investment Philosophy® or otherwise incorporate alternative investments within a comprehensive asset allocation. The index provides an objective tool used for portfolio comparison, investment analysis, and research and benchmarking by fiduciaries, trustees, portfolio managers, consultants and advisers to endowments, foundations, trusts, defined benefit/defined contribution plans, pension plans and individual investors.
The Endowment Index® uses an objective, rules-based construction methodology based upon the portfolio allocations of over 800 educational institutions managing over $500 billion in total assets. Each of the 19 sub-indexes that currently comprise the index are investable, and contained within those sub-indexes are over 30,000 underlying securities. The current target allocation is 35% Equity/53% Alternatives/8% Fixed Inc./4% Cash.
The ticker on Yahoo Finance is: ENDOW
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For Use Only With Accredited Investors
EWM Alternative Investment Management, LLC-Series 2-Unicorn Technology
2017.07.31
Fund Manager Alternative
Investment Experience
Over the last 10 years the management team has
directly been involved in the launch of several private
equity funds.
Over the last two years the manager has launched and
advised five private funds:
SPV/Type Date Amt. Raised
Retail Co-Invest Feb. 2016 $8,685,000
Defense/Aerospace
Co-Invest (Europe)Nov. 2016 $5,800,000
Palantir Dec. 2016 $5,000,000
Unicorn Feb. 2017 $1,825,000
Telecom Infrastructure
Co-InvestJun. 2017 $4,125,000
TOTAL $25,435,000
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For Use Only With Accredited Investors
EWM Alternative Investment Management, LLC-Series 2-Unicorn Technology
2017.07.31
Fund Manager Private
Investments Allocation
Private Credit (Direct)
19%
Private Equity (Direct)
2%
Private Equity (Secondary
Direct)6%Private Equity
EWM SPV57%
Hedge Fund of Funds (Direct)
8%
Private Real Estate (Direct)
8%
Private Credit (Direct) $8.4 million
Private Equity (Direct) $1 million
Private Equity (Secondary Direct) $2.5 million
Private Equity EWM SPV $25.4 million
Hedge Fund of Funds (Direct) $3.3 million
Private Real Estate (Direct) $3.7 million
TOTAL $44.3 million
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For Use Only With Accredited Investors
EWM Alternative Investment Management, LLC-Series 2-Unicorn Technology
2017.07.31
EWM History With Investing
In Late-Stage Tech Companies
Prior to launching the Unicorn Fund, Endowment Wealth Management® has been involved in investments with two other Private Tech Unicorns: Bloom Energy, Inc. and Palantir Technologies, Inc.
Bloom Energy, Inc: EWM began investing in October 2016, and its clients currently hold $2.5 million worth of shares at cost.
Shares were purchased at an approx. 38% discount from the last round
Palantir Technologies, Inc.: EWM began investing in January 2017, and currently holds approx. $4.7 million worth of shares at cost through an SPV.
Shares were purchased at an approx. 40% discount to the last round
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Past performance no guarantee of future results
For Use Only With Accredited Investors
EWM Alternative Investment Management, LLC-Series 2-Unicorn Technology
2017.07.31
EWM Investment 1:Bloom Energy, Inc. S u n n y v a l e , C A
Bloom Energy’s unique on-site power generation systems utilize an innovative new fuel cell technology with roots in NASA's Mars program. Derived from a common sand-like powder, and leveraging breakthrough advances in materials science, Bloom's solid oxide fuel cell technology is able to produce clean, highly efficient on-site power from multiple fuel sources.
Founded in 2002
Investors: Advanced Equities, New Enterprise Associates, Apex Venture Partners, Credit Suisse, DAG Ventures, GSV Capital, Goldman Sachs, Kleiner Perkins Caufield & Byers, Mobius Venture Capital, New Venture Capital, Sunbridge Partners
Filed for an IPO in October 2016.
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For Use Only With Accredited Investors
EWM Alternative Investment Management, LLC-Series 2-Unicorn Technology
2017.07.31
EWM Investment 2: Palantir Technologies, Inc. Pa l o A l t o , C A
Palantir Technologies is working to change how
groups analyze information through the
company’s suite of software applications for
integrating, visualizing and analyzing data of all
kinds, including structured, unstructured,
relational, temporal, and geospatial.
Founded in 2004
Investors: Founders Fund, In-Q-Tel, Glynn
Capital
Last round (Series K) raised in Dec. 2015 at a
Post Money Valuation of $20.4 billion.
The company was founded by former PayPal
executives, such as Peter Thiel, a current
advisor to President Trump on technology, and
Stanford computer science professors.
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For Use Only With Accredited Investors
EWM Alternative Investment Management, LLC-Series 2-Unicorn Technology
2017.07.31
Management TeamPrateek Mehrotra, MBA, CFA®, CAIA® Chief Investment Officer
Prior to joining Endowment Wealth Management, Inc., Prateek worked at Sumnicht & Associates, LLC (and its affiliate iSectors, LLC) a SEC-registered investment advisory firm for over ten (10) years as Chief Investment Officer and as a Member of its Investment Committee. His prior employer won numerous accolades and rankings from Bloomberg and Worth magazines during his tenure there. Prior to coming to Wisconsin, Prateek was a principal with GTG Ventures, Inc., in Palo Alto, California, where he was responsible for sourcing and analyzing investment opportunities across various technology sectors. He also worked overseas at a boutique investment company and was involved in co-managing a PIPE fund and a hedge fund-of-funds, among other alternative investing activities. He has over 20 years of experience in the financial services industry involved in areas as diverse as sell-side investment banking, leasing, portfolio management, and buy-side alternative assets investing. Prateek has lived and worked in India and the Middle East, and brings a wealth of global experience and perspective to the Company.
Robert Riedl, CPA, CFP®, AWMA® Director of Wealth Management
Rob’s 30 years of professional experience is key when consulting with client families, businesses and institutions. He began his career at Arthur Andersen & Co., as a staff accountant, serving the needs of small business clients. He was the founder and President of Fox Valley Spring Company and President of Oak-Bay Corporation. Additionally, Rob held a consultant role providing strategic advice to entrepreneurs in areas such as corporate structure, customer base, product mix and systems. From 2003-2013, Rob was the Director of Wealth Management and a Member of the Investment Committee at Sumnicht & Associates, LLC.
Tim Landolt, MBA Director of Institutional Services
Tim brings an extensive background in the investment management and financial services industry to the Firm. Prior to joining the firm, Tim previously managed nearly all business functions for an SEC-registered ETF model management firm, including ongoing research and analysis of tactical asset allocation strategies, model trading, operations, compliance, performance reporting, and marketing collateral and web content development during his 6+ year tenure. Tim previously held roles as a portfolio manager and research analyst. Tim also worked at William O’Neil+Co., in Los Angeles, CA, where he served in various capacities, including fundamental research, institutional marketing, and National Sales Manager for the firm’s $300 million mutual fund. Tim has been quoted in national business publications and has appeared on CNBC.
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For Use Only With Accredited Investors
EWM Alternative Investment Management, LLC-Series 2-Unicorn Technology
2017.07.31
Risks/Considerations/
Mitigating Factors
Long Term Investment: Investors should consider this a 5+ year investment
Mitigating Factor: Manager expects to distribute cash/securities as underlying holdings experience liquidity events
Fund investment, as well as underlying holdings are unregistered securities. No current market currently exists and there is no assurance one will materialize for investors to liquidate their holdings.
K-1 Tax Reporting. It is highly likely that the Fund will not be able to provide its investors with K-1 tax reports prior to April 15th, requiring investors to file an extension.
Fees/expenses. Private funds typically have higher fees than most other investments. Acquiring shares of non-publicly traded companies in the secondary market involves higher costs, commissions and expenses.
Other risks include Technology Risk, Dilution Risk, Equity Risk, Concentration Risk, Political Risk, Economic Risk and other unforeseen risks that may not be predictable.
Loss of Investment. Private funds and venture capital investments involve a high degree of risk, including loss of investment.
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For Use Only With Accredited Investors
EWM Alternative Investment Management, LLC-Series 2-Unicorn Technology
2017.07.31
Manager Contact
Prateek Mehrotra, MBA, CFA®, CAIA®
Chief Investment Officer
Prateek@EndowmentWM.com
Robert Riedl, CPA, CFP®, AWMA®
Director of Wealth Management
Rob@EndowmentWM.com
Tim Landolt, MBA
Director of Institutional Services
Tim@EndowmentWM.com
Endowment Wealth Management, Inc.
2200 North Richmond Street, Suite 200, American National Bank Building
Appleton, WI 54914
(920) 785-6010
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