invest in tech companies with income instrument

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Nov 2014 1 Fruition TechFund Portfolio Opportunities Thank you for inquiring about Fruition TechFund and our investment opportunities. I’m delighted to share with you a unique investment structure that we believe is a “game changer” in the technology investment industry, the opportunity to invest in technology companies while potentially receiving a benefit from an income generating component and the longterm benefits associated with an exit strategy. Until today, investing in technology companies was mainly associated with investors having to wait a strikingly long time before realizing a return, in addition to taking on high risk that there may not be a return. Through a unique investment structure, Fruition TechFund enables investors to make separate investments in technology companies, which would be partly managed by Fruition TechFund’s experienced management team, in addition to receiving both a current stream of cash flow (Quarterly Return), coupled with the longterm strategy of receiving exit benefits. Long and hard negotiations with the companies TechFund intends to invest in resulted in the unique investment structure you may benefit from, as an investor: the possibility of receiving a cash return over the next four years with an upside from an exit (Buyout) event at the end of the anticipation investment period. The two new technology companies are in the video platform and cyber compliance industries. Both of the technology companies are up and running: (1) each technology company is in their respective revenue stages and each technology company; (2) owns a unique and innovative technology (3) has a customer pipeline; and (4) has a professional team in place to lead them to the next stage. Track Record: Fruition TechFund’s board members have experience in working with other companies, which generally returned to investors in their respective businesses 4X to 7X ROI within 24 years of the investment. Our two investment funds are currently open to new investors and for increased allocations from current investors.

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"Until today, investing in technology companies was mainly associated with investors having to wait a strikingly long time before realizing a return, in addition to taking on high risk that there may not be a return....."

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Page 1: Invest in Tech Companies with income instrument

Nov  2014            

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Fruition  TechFund  Portfolio  Opportunities    Thank  you  for  inquiring  about  Fruition  TechFund  and  our  investment  opportunities.      I’m   delighted   to   share   with   you   a   unique   investment   structure   that   we   believe   is   a  “game   changer”   in   the   technology   investment   industry,   the   opportunity   to   invest   in  technology   companies   while   potentially   receiving   a   benefit   from   an   income-­‐generating  component  and  the  long-­‐term  benefits  associated  with  an  exit  strategy.      Until   today,   investing   in   technology   companies   was   mainly   associated   with   investors  having   to  wait  a   strikingly   long   time  before   realizing  a   return,   in  addition   to   taking  on  high  risk  that  there  may  not  be  a  return.    Through   a   unique   investment   structure,   Fruition   TechFund   enables   investors   to  make  separate   investments   in   technology  companies,   which   would   be   partly   managed   by  Fruition   TechFund’s   experienced   management   team,   in   addition   to   receiving   both  a  current  stream  of  cash  flow  (Quarterly  Return),  coupled  with  the  long-­‐term  strategy  of  receiving  exit  benefits.    Long  and  hard  negotiations  with  the  companies  TechFund  intends  to  invest  in  resulted  in  the  unique  investment  structure  you  may  benefit  from,  as  an  investor:  the  possibility  of   receiving   a   cash   return   over   the   next   four   years   with   an   upside   from   an   exit  (Buyout)  event  at  the  end  of  the  anticipation  investment  period.      The   two   new   technology   companies   are   in   the   video   platform   and   cyber   compliance  industries.  Both  of  the  technology  companies  are  up  and  running:  (1)  each  technology  company  is  in  their  respective  revenue  stages  and  each  technology  company;  (2)  owns  a  unique  and  innovative  technology  (3)  has  a  customer  pipeline;  and  (4)  has  a  professional  team  in  place  to  lead  them  to  the  next  stage.    Track  Record:    Fruition  TechFund’s  board  members  have  experience  in  working  with  other  companies,  which  generally  returned  to  investors  in  their  respective  businesses  4X  to  7X  ROI  within  2-­‐4  years  of  the  investment.    

 Our  two  investment  funds  are  currently  open  to  new  investors  

 and  for  increased  allocations  from  current  investors.  

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Nov  2014            

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Fruition  TechFund  is  proud  to  present:    Cyber  Security  Technology  Company;  Israeli  Company  

 

Company  Industry:     Cyber  Security/Compliance   Fund  Structure:   Sub  Series  LLC            

Tech  Co.  Stage:     In  Revenue;  up  and  running     Fund  Location   Chicago,  U.S.    Min.  Investment:     $40,000   Max.  Investment     $4,480,000    (Total  Round)  Prospect  Yearly    Cash  Return  (Yield):    

2015:  4.4%            |      2016:  22.9%  2017:  35.4%        |      2018:  53.9%    

Anticipated  Return  (Exit  Event)    

47%  (IRR)    *  Investment  period:  four  years  

       

Units  Include:   Equity,  Convertible  Debt    and  Warrants    

Convert/Exercise  Terms:  

Price  per  today  and  any  time  during  the  investment  period.    

Exit  Strategy     Exit  (buyout)  event  after    four  years  investment.    

Security:   First  position  lien  on  assets,    Active  board  members.    

       

Why  to  invest?       Ø Founder  and  team  leaders  -­‐  Expertise  in  cyber  security  and  user-­‐based  profiling  from  large  organizations  including  the  Israeli  Government  and  Israeli  Defense  Forces  (IDF)  elite  tech  units.      

Ø Profitable  and  stable  since  2011.      Ø Maintains  80%  conversion  rate  from  prospect  to  customer.      Ø 97%  of  long-­‐term  solution  customers  have  renewed  their  maintenance  contracts  

over  the  past  three  years.      Ø Recommended  by  worldwide  top  audit  firms.      Ø Established  long-­‐term  relationship  with  Fortune  500  customers.      Ø Addressable  market  size  of  $8B.      Ø The  latest  equivalent  buyouts  (exit)  transaction  in  the  company  venture  domain  

was  in  valuations  of  ~$1B.  

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Fruition  TechFund  is  proud  to  present:  Video  Platform;  U.S.  Company    

 

Company  Industry:     Video  Platform Fund  Structure:   Sub  Series  LLC            

Tech  Co.  Stage:     In  Revenue;  up  and  running     Fund  Location   Chicago,  U.S.    Min.  Investment:     $30,000   Max.  Investment     $2,250,000    (Total  Round)  Prospect  Yearly    Cash  Return  (Yield):    

2015:  7.0%            |      2016:  21.6%  2017:  60.8%        |      2018:  46.4%    

Anticipated  Return  (Exit  Event)    

76.6%  (IRR)    *  Investment  period:  3.5  years  

       

Units  Include:   Equity,  Convertible  Debt    and  Warrants    

Convert/Exercise  Terms:  

Price  per  today  and  any  time  during  the  investment  period.    

Exit  Strategy     Buyout  event  after    3.5  years  investment.    

Security:   First  position  lien  on  assets,    Active  board  members.    

       

Why  to  invest?       Ø Professional  team  with  a  proven  industry  track  record.      Ø Proven  technology:  Chicago  Blackhawks,  Eventbrite  and  other  top    brands  chose  

the  company  platform  as  their  preferred  video  product    solution.      Ø Achieved  profitable  point  in  the  first  market  segment.      Ø A  proven  business  model  with  timely  cash  returns  to  the    investors  with    

up  to  117%  yield.      Ø Cutting  edge  technology:  Stabilized  code  with  a  well-­‐designed    

technology  platform.      Ø The  Latest  equivalent  buyout  (Exit)  transaction  in  the  company’s    

venture  market  was  in  more  than  six  times  on  the  company’s  EBIDTA.      

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 Fruition  TechFund  Process:    Fruition   TechFund’s   board  member   consists   of  dozen   members   that   have   expertise  in  M&A,   private   equity,   and   venture   capital.   They   have   benefited   from   lucrative  exit  strategies  for  many  technology  companies.    Fruition   TechFund   brings   together   experience   from   its   board   and   executive  members  who  intend  to  screen  and  filter  the  technology  companies  so  only  a  select  group  would  be  chosen  for  investment.    Over  40  companies  have  been  screen  in  the  last  12  months.      During  the  last  six  months  Fruition  TechFund  engaged  in  negotiations  and  the  due  diligence,  which  you  can  find  in  our  data  room,  in  addition  to  the  investment  private  placement  documents.      To  request  an  access  to  Fruition  TechFund  Data  Room,  please  use  this  link:    http://www.fruitiontechfund.com/register.html      Sincerely,    Kfir  Hazaz,  Executive  Manager  &  Chairman    http://www.FruitionTechFund.com  mailto:[email protected]  Office:  312-­‐265-­‐6644                  ______________________________________________________________________  Fruition TechFund Prospectus: https://fruitiontechfund.sharefile.com/d/s95d99de16054849b With more than a 15 years experience in the technology industry and through a unique investment structure, Fruition TechFund enables investors and money managers to make separate investments in technology companies and receive both a current stream of cash flow and long-run upside, while benefits from an experience fund's management team.  

   

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 The   letter   is   for   general   informational   purposes   only   and   does   not   constitute   an   offer   to   sell   or   a  solicitation  of  an  offer  to  buy  any  security  or  any  financial  instrument  or  provide  any  investment  advice  in  any  jurisdiction.    We   do   not   represent   that   the   investments   described   at   the   documents   are   suitable   for   any   specific  investor.     The   reader   should   make   their   own   inquiries   and   consult   an   independent   tax,   legal,  investment  and/or  other  advisor  of  their  own  choice  before  making  any  decision  on  the  products  and  services  described  at  the  event.    

THIS  IS  NOT  AN  OFFERING  TO  BUY  OR  SELL  SECURITIES  AND  IS  SOLELY  AN  INFORMATIONAL  DOCUMENT.    ALL  PROJECTIONS  AND  FORECASTS  ARE  BASED  ON  CERTAIN  ASSUMPTIONS  AND  EXPECTATIONS  WHICH  MAY  OR  MAY  NOT  OCCUR  OR  BE  REALIZED.    NO  ASSURANCES  CAN  BE  MADE  THAT  SUCH  PROJECTIONS  WILL   OCCUR   OR   BE   REALIZED,   AND   ACTUAL   RESULTS   MY   DIFFER   MATERIALLY.     THE   INFORMATION,  ANALYSIS,  FORECASTS  OR  PROJECTIONS  PROVIDED  HEREIN  WERE  EITHER  PROVIDED  BY  THE  RESPECTIVE  COMPANIES   OR   PREPARED   BY   FRUITION   TECHFUND   BASED   ON   INFORMATION   PROVIDED   BY   THE  RESPECTIVE   COMPANIES.     POTENTIAL   INVESTORS   MAY   NOT   RELY   ON   THE   INFORMATION   PROVIDED  HEREIN  BUT  MUST  ONLY  CONSIDER  THIS   INFORMATIONAL  DOCUMENT   IN  CONJUNCTION  WITH  ALL  OF  THE  OFFERING  MATERIALS,   AND  UNDERTAKE   THEIR  OWN  DUE   DILIGENCE   INVESTIGATION   REGARDING  THE  RESPECTIVE  COMPANIES  AND  FRUITION  TECHFUND   IN  ORDER  TO  FULLY  UNDERSTAND  ALL  OF  THE  IMPLICATIONS   AND   RISKS   OF   THE   OFFERING.     INVESTMENT   IN   FRUITION   TECHFUND   ENTAILS   A   HIGH  DEGREE  OF   RISK  AND  POTENTIAL   INVESTORS  MAY   LOSE   THE   ENTIRE  AMOUNT  OF   THEIR   INVESTMENT.    INVESTMENT  IN  FRUITION  TECHFUND  WILL  ONLY  BE  OFFERED  TO  ACCREDITED  INVESTORS  AS  DEFINED  IN  RULE  501(A)  OF  REGULATION  D  UNDER  THE  SECURITIES  ACT.