Farm Foundation

How VCs discover and fund innovation

PRESENTATION | PROPRIETARY AND CONFIDENTIAL Eight Rules of Venture Capital

PRESENTATION | PROPRIETARY AND CONFIDENTIAL 2 Ta b l e of Contents Rule #1

}Deal flow is everything.~ Marc Andreessen, Founder of Andreessen Horowitz

PRESENTATION | PROPRIETARY AND CONFIDENTIAL 3 Rule #2 success is rare

PRESENTATION | PROPRIETARY AND CONFIDENTIAL Rule #2: Success is rare Journey of 1,000 companies Seed Round • Raise $250k - $7m Seed • Sell 15% - 40% of company

Assume • 1,000 Companies Funded

CB-Insights

PRESENTATION | PROPRIETARY AND CONFIDENTIAL Rule #2: Success is rare Journey of 1,000 companies Series A • $2m - $15m Seed • Sell 20% - 40% of Series A startup

Success Funnel q 46% Raise Series A q✓14% Exit (1x– 3x) ✗q 40% Fail to raise CB-Insights

PRESENTATION | PROPRIETARY AND CONFIDENTIAL Rule #2: Success is rare Journey of 1,000 companies Series B • $5m - $300m Seed • Sell 15% - 30% of Series A startup Series B Success Funnel q 28% Raise Series B q✓7% Exit (1x– 3x) ✗q 11% Fail to raise CB-Insights

PRESENTATION | PROPRIETARY AND CONFIDENTIAL Rule #2: Success is rare Journey of 1,000 companies Series C • $10m - $500m Seed • Sell 10% - 25% of Series A startup Series B

Series C Success Funnel q 14% Raise Series C ✓q 5% Exit ✗q 9% Fail to raise CB-Insights

PRESENTATION | PROPRIETARY AND CONFIDENTIAL Rule #2: Success is rare Journey of 1,000 companies Series D • $10m - $1 billion+ Seed • Sell 5% - 20% of startup Series A Series B

Series C Success Funnel q 6% Raise Series D Series D ✓q 2% Exit ✗q 7% Fail to raise CB-Insights

PRESENTATION | PROPRIETARY AND CONFIDENTIAL Rule #2: Success is rare Journey of 1,000 companies Winners Losers Seed 28% Series A Series B

Series C 6% Series D 66%

CB-Insights

PRESENTATION | PROPRIETARY AND CONFIDENTIAL Rule #3 swing for the fences

PRESENTATION | PROPRIETARY AND CONFIDENTIAL Rule #3: Swing for the fences

$160b $140b To p 7 0 startups by valuation $120b $100b $80b $60b $40b $20b $0b DJI JEK Lyft NIO - SoFi Hulu Grab Uber CATL Lufax Stripe Meizu Meizu Paytm Airbnb VANCL Pivotal Xiaomi Koubei SpaceX LY.com GO Garena Jia.com Mozido Flipkart Toutiao Zenefits Fanatics WeBank WeBank Ola Cabs Coupang Dianping WeWork Qualtrics Pinterest Ali Music Kuaishou Moderna Jiedaibao AmWINS Homelink UnionPay - BAIC BJEV JD Finance commerce Robinhood Vice Media Magic Leap - Yello Mobile Didi Chuxing Oscar Health Ant Financial ContextLogic Credit Karma Lazada Group Bloom Energy Tencent Music United Imaging Shang Redwood Cainiao Logistics UBtech Robotics Yixia Technology - Shouqi Car Rental e Meituan Slack Technologies PingAn HealthTech Meili United Group Royole Corporation Wanda E Ping An Good Doctor Palantir Technologies

Wikipedia

PRESENTATION | PROPRIETARY AND CONFIDENTIAL Rule #3: Swing for the fences

$160b $140b To p 7 0 startups by valuation $120b $100b $80b $60b $2.3 billion $40b $20b $0b DJI JEK Lyft NIO - SoFi Hulu Grab Uber CATL Lufax Stripe Meizu Meizu Paytm Airbnb VANCL Pivotal Xiaomi Koubei SpaceX LY.com GO Garena Jia.com Mozido Flipkart Toutiao Zenefits Fanatics WeBank WeBank Ola Cabs Coupang Dianping WeWork Qualtrics Pinterest Ali Music Kuaishou Moderna Jiedaibao AmWINS Homelink UnionPay - BAIC BJEV JD Finance commerce Robinhood Vice Media Magic Leap - Yello Mobile Didi Chuxing Oscar Health Ant Financial ContextLogic Credit Karma Lazada Group Bloom Energy Tencent Music United Imaging Shang Redwood Cainiao Logistics UBtech Robotics Yixia Technology - Shouqi Car Rental e Meituan Slack Technologies PingAn HealthTech Meili United Group Royole Corporation Wanda E Ping An Good Doctor Palantir Technologies

Wikipedia

PRESENTATION | PROPRIETARY AND CONFIDENTIAL Rule #3: Swing for the fences

$160b $150 billion $140b To p 7 0 startups by valuation $120b $100b $80b $60b $2.3 billion $40b $20b $0b DJI JEK Lyft NIO - SoFi Hulu Grab Uber CATL Lufax Stripe Meizu Meizu Paytm Airbnb VANCL Pivotal Xiaomi Koubei SpaceX LY.com GO Garena Jia.com Mozido Flipkart Toutiao Zenefits Fanatics WeBank WeBank Ola Cabs Coupang Dianping WeWork Qualtrics Pinterest Ali Music Kuaishou Moderna Jiedaibao AmWINS Homelink UnionPay - BAIC BJEV JD Finance commerce Robinhood Vice Media Magic Leap - Yello Mobile Didi Chuxing Oscar Health Ant Financial ContextLogic Credit Karma Lazada Group Bloom Energy Tencent Music United Imaging Shang Redwood Cainiao Logistics UBtech Robotics Yixia Technology - Shouqi Car Rental e Meituan Slack Technologies PingAn HealthTech Meili United Group Royole Corporation Wanda E Ping An Good Doctor Palantir Technologies

Wikipedia

PRESENTATION | PROPRIETARY AND CONFIDENTIAL Rule #3: Swing for the fences

$343 billion Wikipedia

PRESENTATION | PROPRIETARY AND CONFIDENTIAL Rule #3: Swing for the fences

$343 billion $341 billion Wikipedia

PRESENTATION | PROPRIETARY AND CONFIDENTIAL To p 1 5 Agrifood Te c h Startups 2017 – Seed Stage

Starship Technologies $17M Bowery Farming Inc $8M Koia $8M Platterz $7M Basket $6M Farmwise $6M Grow Food $5M Cafe X Technologies $5M LifeFuels $5M Minibar Delivery $5M Utkal Tubers $5M Pure Harvest $5M Pure Harvest Smart Farms $5M Yumi $4M Milklane $4M AgFunder

PRESENTATION | PROPRIETARY AND CONFIDENTIAL To p 1 5 Agrifood Te c h Startups 2017 – Series A

Maihuolang $150M Bayer–Gingko Partnership $100M Two Pore Guys, Inc. $25M Cannabco Pharmaceutical Corp $24M Hyliion $21M Perfect Day Foods $21M Bowery Farming Inc $20M Seasoned.co $20M Nuritas $19M Momentum Machines $18M Kolonial $18M Memphis Meats $17M Fenfenzhong $17M Astro Digital $17M Flirtey $16M AgFunder

PRESENTATION | PROPRIETARY AND CONFIDENTIAL To p 1 5 Agrifood Te c h Startups 2017- Series B

Plenty Inc. $200M Picnic $109M Convoy $62M Protix Biosystems $50M Brandless $50M Soylent $50M ZUME Pizza $48M Daily Harvest $43M Ritual $43M MycoTechnology $42M Shipt $40M BEFORE Brands $35M Swift Navigation $34M Frichti $34M Descartes Labs $30M AgFunder

PRESENTATION | PROPRIETARY AND CONFIDENTIAL Rule #3: Swing for the fences 10x Returns

PRESENTATION | PROPRIETARY AND CONFIDENTIAL Rule #3: Swing for the fences 10x $1B Returns Markets

PRESENTATION | PROPRIETARY AND CONFIDENTIAL Rule #4 swing often

PRESENTATION | PROPRIETARY AND CONFIDENTIAL 80%

60% Money Loosing 40% Investments 20%

<1x 1-2x 2-3x 3-5x >5x

Chris Dixon, A16Z Return Multiple of the Fund PRESENTATION | PROPRIETARY AND CONFIDENTIAL 80% Bad Funds 60% Money Loosing 40% Investments 20%

<1x 1-2x 2-3x 3-5x >5x

Chris Dixon, A16Z Return Multiple of the Fund PRESENTATION | PROPRIETARY AND CONFIDENTIAL 80% Bad Funds 60% Money Loosing 40% Investments 20% Good Funds

<1x 1-2x 2-3x 3-5x >5x

Chris Dixon, A16Z Return Multiple of the Fund PRESENTATION | PROPRIETARY AND CONFIDENTIAL 80% Bad Funds 60% Money Loosing 40% Investments Good Funds 20% Great Funds

<1x 1-2x 2-3x 3-5x >5x

Chris Dixon, A16Z Return Multiple of the Fund PRESENTATION | PROPRIETARY AND CONFIDENTIAL Rule #4: Swing often

$160b $140b $120b $100b $80b $60b $40b $20b $0b DJI JEK Lyft NIO - SoFi Hulu Grab Uber CATL Lufax Stripe Meizu Meizu Paytm Airbnb VANCL Pivotal Xiaomi Koubei SpaceX LY.com GO Garena Jia.com Mozido Flipkart Toutiao Zenefits Fanatics WeBank WeBank Ola Cabs Coupang Dianping WeWork Qualtrics Pinterest Ali Music Kuaishou Moderna Jiedaibao AmWINS Homelink UnionPay - BAIC BJEV JD Finance commerce Robinhood Vice Media Magic Leap - Yello Mobile Didi Chuxing Oscar Health Ant Financial ContextLogic Credit Karma Lazada Group Bloom Energy Tencent Music United Imaging Shang Redwood Cainiao Logistics UBtech Robotics Yixia Technology - Shouqi Car Rental e Meituan Slack Technologies PingAn HealthTech Meili United Group Royole Corporation Wanda E Ping An Good Doctor Palantir Technologies

Wikipedia

PRESENTATION | PROPRIETARY AND CONFIDENTIAL Rule #4: Swing often

PRESENTATION | PROPRIETARY AND CONFIDENTIAL Rule #5 Understand Expected Value theory