ARIF JANMOHAMED OCTOBER 2017

VENTURE CAPITAL OVERVIEW

ABOUT ME

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About me

• Canadian. Parents from East Africa.

• 20 yrs in SF Bay Area with wife and 2 kids

Education

• BSc, Computer Engineering, Waterloo

• MBA, Wharton (University of Pennsylvania)

Career

• 9 years as a Venture Capitalist at Lightspeed

(since 2008)

• Focus on Early Stage Enterprise IT companies.

Specialize in early stage investing

• Prior to Lightspeed: Cisco, Sun Microsystems,

Microsoft and various startups

Lightspeed Confidential – Trade secret, not to be copied, distributed or referred to without the prior written consent of Lightspeed Venture

Partners. 3

Actifio AirBnB AppDynamics AppNexus Auction.com Automattic Box Cloudera CloudFlare CreditKarma Deem DocuSign Dropbox Eventbrite Evernote Fanatics Gilt Good Technology

2015 IPO BACKLOG

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Lightspeed is an early stage venture capital firm focused on

accelerating disruptive innovations in the Enterprise and

Consumer industries. For over two decades, Lightspeed Partners

have backed and helped build more than 200 global companies,

many of which have become market leaders.

LIGHTSPEED

1990’s TODAY

$4.2 BILLION

150+

COMMITTED CAPITAL

GLOBAL FOOTPRINT

22 PARTNERS 24 INVESTMENT

PROFESSIONALS

DEEP EXPERTISE IN ENTERPRISE TECHNOLOGY

ACTIVE INVESTMENTS

ISRAEL, INDIA, CHINA

Lightspeed Confidential – Trade secret, not to be copied, distributed or referred to without the prior written consent of Lightspeed Venture

Partners. 4

Actifio AirBnB AppDynamics AppNexus Auction.com Automattic Box Cloudera CloudFlare CreditKarma Deem DocuSign Dropbox Eventbrite Evernote Fanatics Gilt Good Technology

2015 IPO BACKLOG

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OUR RECENT TRACK RECORD

SEPTEMBER 2016 JANUARY 2017

MARCH 2017

LARGEST IPO OF 2016 +$3 BILLION MARKET CAP

$3.7 BILLION ACQUISITION FROM CISCO

SERIES SERIES

SERIES

A A

B

LARGEST INVESTOR ~$3 BILLION MARKET CAP

MARCH 2017 SERIES

SEED

FIRST INVESTOR OVER +$18 BILLION MARKET CAP

WHAT IS VENTURE CAPITAL

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• High Risk / High Reward Investment Vehicle in EARLY stage, HIGH POTENTIAL growth companies

• Typically focused on - but not restricted to - TECHNOLOGY companies

• Venture Capitalists typically purchase equity (not debt)

• LONG investment horizon (5 - 10+ years from initial investment commitment)

• Returns generated through IPO or M&A as opposed to dividends / cash flow

TYPES OF VENTURE CAPITAL

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ANGEL INVESTORS

• Individuals investing their own capital • Typically at earliest stages of company formation. • $5K - $250K+ • 1% - 10% equity ownership

SEED FUNDS

• Institutional Investors investing on behalf of a collection of investors • Very early stage investors • $50K - $2M+ • 5% - 15% equity ownership

VENTURE CAPITALISTS

• Institutional Investors investing on behalf of a collection of investors • Early to Growth Stage investors • $500K - $100M+ • 10% - 30% equity ownership + Board Seat

FLOW OF CAPITAL

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Venture Capital

Fund

Startup

Pension Fund Private

Investor Family Office Endowments Foundations

Startup Startup Startup Startup

Limited Partners (LP) commit to invest in a Venture Capital Fund

VC Fund invests capital for minority equity stakes in multiple startups

10-12 yr fund cycle 3-5 yr initial investment period 2%+ Management fee 20% Profits

VC FUNNEL

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INVESTING On average: • 5000+ new companies tracked and identified across the firm • 500 companies entered into preliminary diligence • 25-40 companies invested per year

EXITS For every 10 investments: • 1-2 are “home-runs” (return 10x + invested capital) • 4 are “solid hits” (return 3x – 5x invested capital) • 3-4 are “flameouts” (return 1x or less invested capital) Failure is expected

LIGHTSPEED SECRET SAUCE

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PEOPLE

• Identify and nuture relationships with tech industry execs, repeat entrepreneurs, and angel investors for DEAL FLOW

THEMES

• Pro-actively develop thematic ideas about the way the world will be before. • Identify trends before they are buzzwords (eg: Big Data, ML/AI, eCommerce,

Chatbots) • Invest heavily across the value chain in emerging themse

DATA ANALYTICS

• Develop internal core metrics to identify and flag promising companies.

• Reach out pro-actively (eg: SNAP).

CASE STUDY : SNAPCHAT

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$18B Market Cap

CASE STUDY : NUTANIX

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$4B Market Cap

CASE STUDY : UBER

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$69B PRIVATE Valuation

Q&A

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ASK ME ANYTHING… EXCEPT FOR MONEY

THANK

YOU

2200 Sand Hill Road Menlo Park, CA 94025 Telephone: 650.234.8300 lsvp.com @lightspeedvp

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