Unicorn Migration Patterns John Sharp Partner Hatcher Disclaimer

Unicorn Migration Patterns John Sharp, Partner, Hatcher+ Disclaimer: This document is issued by Hatcher Plus Pte Ltd (“Hatcher+”) and is intended solely for use of the party to whom it has been issued. This document is for general background purposes only and does not constitute an offer of, or an inducement for any person to enter into an agreement to acquire, securities in any entity. To the extent that this document contains references to past performance of investment vehicles, investments or markets, we caution that past performance is not necessarily a guide to future performance. We further caution that any expectations of future returns referred to in this document require us to make assumptions about future economic and operating conditions of markets and investments and are subject to risks that those assumptions will not be met and the expected returns will not be achieved. First Degree Global Asset Management Pte. Ltd. (“First Degree”) provides fund management, legal and compliance services under contract to Hatcher+ in accordance with the Securities and Futures Act of Singapore (”the Act”) and associated regulations governed by the Act and the Monetary Authority of Singapore (“MAS”). Further details regarding strategies and technologies outlined in this document are only available after certification by First Degree that you satisfy the requirements to qualify as as an Accredited Investor in all relevant jurisdictions. Copyright 2019 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: as a commitment to future performance. H 2 Fund LP Exchange Traded Notes are available to non-US investors only. Such statements should not be construed as a commitment to future performance.

Hatcher+ is one of the world’s most active angel / seed stage investors Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

Pitch. Book Global Investment Rankings 4 Q 2018 Hatcher+ recently signed several new co-investment agreements that are expected to consolidate Hatcher’s global leadership position and establish Hatcher+ as the #1 most active early-stage investor in the world by the end of 2019 Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

Hatcher+ is using AI-based quantitative data analysis, global co-investment partnerships, and business process automation technologies, to build the world’s largest venture investment portfolio and enable predictable returns from venture. Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

Hatcher+ Team Hatcher+ has built a highly-experienced team of data science and artificial intelligence experts, and quantitative asset management and workflow automation specialists, with a common vision of executing a data-driven venture investment strategy Dan Hoogterp Partner, Investment Strategy Bankrate, IBM, P&G, World Bank, FT Wissam Otaky Partner, Capital Allocation Hatcher H 1, Marka. VIP, Dubai Angel Investors Steve Fisher Winnie Cheng Advisor, Fund Management Advisor, AI & ML JP Morgan Asset Mgmt, Flow. Cast, Io-Tahoe, UOB, First Degree OCBC, Forbes, Joust John Sharp Partner, Capital Sourcing Hatcher H 1, Authentium Mozido, World. Space Tony Morgan Advisor, Risk & Compliance JP Morgan Asset Mgmt, First Degree Louisa Eaton Manager, Investor Relations Cambridge Associates, Arbiter Fund Atsushi Taira Advisor & Director Brightstar, Softbank Group, Mistletoe Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance. Alex Arul Manager, Client Services Hatcher H 1, Heardable, Deal. com. sg Trina Yeung Advisor, Corp Development Lion City, Morgan Stanley, Coller Capital 5

Over the past three years, our data team has analyzed over 500, 000 venture capital investments spanning all sectors, all geographies, and 20 years of VC investing Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

We’ve discovered some interesting things along the way. Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

Unicorn migration patterns, for example Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

There are currently 375 unicorns in the world. The United States is home to more of these rare beasts (183) than any other country. *CB Insights (2019) Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

Unicorns Per Capita US (183): 48. 8% / 4. 4% = 11. 2 x Israel (4): 1. 1% / 0. 1% = 9. 2 x UK (19): 5. 1% / 0. 9% = 5. 8 x Korea (9): 2. 4% / 0. 7% = 3. 5 x Germany (10): 2. 7% / 1. 1% = 2. 2 x Australia (2): 0. 5% / 0. 3% = 1. 7 x France (5): 1. 3% / 0. 9% = 1. 5 x China (93): 24. 8% / 18. 5% = 1. 3 x Japan (2): 0. 5% / 1. 7% = 0. 3 x Indonesia (4): 1. 1% / 3. 5% = 0. 3 x Brazil (3): 0. 8% / 2. 8% = 0. 3 x India (18): 4. 8% / 17. 1% = 0. 3 x Source data: CB Insights, Hatcher+, NASDAQ, NFAP, Pitch. Book, Wikipedia Holding Company Jurisdictions (CH, HK, LU, SG) not included Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

Impressive, yes? Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

Wait, there’s more… Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

From the data, it appears that unicorns may in fact be a migrating species. Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

“The United States has a larger immigrant population than any other country with 47 million immigrants (2015) …representing 14. 4% of the U. S. population” Wikipedia (2019) Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

“Fifty-one percent of all U. S. unicorns have at least one immigrant founder” National Foundation for American Policy (2018) Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

“Four of the five (80%) top tech IPOs [in 2019] were companies started by immigrants. ” Forbes (2019) Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

What happens to our “unicorns-per-capita” table if we treat immigrants differently? Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

Unicorns Per Capita (adjusted) US (immigrants) (100): 26. 7% / 0. 6% = 42. 6 x Israel (4): 1. 1% / 0. 1% = 9. 2 x US (non-immigrants) (83): 22. 1% / 3. 7% = 5. 9 x UK (19): 5. 1% / 0. 9% = 5. 8 x South Korea (9): 2. 4% / 0. 7% = 3. 5 x Germany (10): 2. 7% / 1. 1% = 2. 2 x Australia (2): 0. 5% / 0. 3% = 1. 7 x France (5): 1. 3% / 0. 9% = 1. 5 x China (93): 24. 8% / 18. 5% = 1. 3 x Japan (2): 0. 5% / 1. 7% = 0. 3 x Indonesia (4): 1. 1% / 3. 5% = 0. 3 x Brazil (3): 0. 8% / 2. 8% = 0. 3 x India (18): 4. 8% / 17. 1% = 0. 3 x Source data: CB Insights, Hatcher+, NASDAQ, NFAP, Pitch. Book, Wikipedia Holding Company Jurisdictions (CH, HK, LU, SG) not included Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

US immigrants are 7. 2 x more likely to start a unicorn than non-immigrants. Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

US companies founded/co-founded by immigrants: Amazon, Apple, Celgene, Cognizant, Comcast, e. Bay, Evernote, Facebook, Google, Huff Post, Instagram, Intel, Linked. In, Netflix, NVIDIA, Oracle, Pay. Pal, Qualcomm, Reddit , Sun Microsystems, Tesla/Space. X, Texas Instruments, Udemy, Whats. App, We. Work, Yahoo, You. Tube… ADP, AT&T, Bell, Boeing, Budweiser, Capital One, Chobani, Colgate, Disney, Du. Pont, Estée Lauder, Ford, General Electric, Haagen Dazs, Home Depot, Heinz, Hertz, IBM, Kohl’s, Kraft, Mattel, Mc. Donald’s, Panda Express, Pfizer, Procter & Gamble, UPS, US Steel… Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

First and second-generation immigrants: Daniel Aaron (Comcast), Alexander Graham Bell (AT&T), Sergei Brin (Google), Andrew Carnegie (US Steel), Steve Chen (You. Tube), Andrew & Peggy Cherng (Panda Express), Walt Disney (Disney), Andy Grove (Intel), Arianna Huffington (Huffington Post), Jan Koum (Whats. App), Vinod Khosla (Sun Microsystems), Mike Krieger (Instagram), Phil Libin (Evernote), Nigel Morris (Capital One), Elon Musk (Tesla), Satya Nadella (Microsoft), Indra Nooyi (Pepsi. Co), Adam Neumann (We. Work), Pierre Omidyar (e. Bay), Beto Perez (Zumba), Marc Randolph (Netflix), Eduardo Saverin (Facebook), Peter Thiel (Pay. Pal), Jean-Luc Vaillant (Linked. In), Alexis Ohanian (Reddit), Jerry Yang (Yahoo), Steve Jobs (Apple), Jeff Bezos (Amazon)… Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

Enough politics Let’s explore your chances of investing in the next unicorn. Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

The research shows that 1 in 20, 000 of all new business startups will go on to become a unicorn. Hatcher+, Kauffman Foundation, US Census (2018) Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

The research also shows that 1 in 100 externally-funded business startups will go on to become a unicorn. CB Insights (2018) Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

Which is correct? 1 in 20, 000 startups? Or 1 in 100? Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

Both are correct Only 5 out of every 1, 000 startup businesses attracts investment from an angel investor or a VC - However, if selected, the probability of that startup becoming a unicorn rises to 1 in 100 20, 000 x 0. 5% x 1% = 1 unicorn Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

So… how can we catch a unicorn? Here’s three suggestions… Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

1. Founders must demonstrate domain expertise and three core capabilities: a sales (or business development) capability, an operations capability, and a data science or engineering capability Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

2. The startup needs to do something 3 x better (more efficiently) than it’s ever been done before – and it needs to be able to grow users/revenue at 3 x to 5 x a year for 3 to 5 years Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

3. To become a unicorn your startup needs to be a rocket rather than a bicycle - venture capital is rocket fuel – if your startup cannot grow to be worth billions, it’s not venture-investible Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

? Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.

Happy Hunting! Entrepreneurs, you can find more information about Hatcher+ on the Hatcher+ blog: hatcher. com: Investors, we’re building the largest venture investment portfolio in the world – please come and say hello. John Sharp john@hatcher. com @gohatcher on Twitter Copyright 2018 Hatcher+ Pte Ltd. Confidential. For information purposes only. This presentation includes forward looking statements: Such statements should not be construed as a commitment to future performance.