MAINTM Webinar Series HOW PRIVATE INVESTORS CAN INVEST IN PRE-IPO COMPANIES October 18, 2016 Webinar Overview Moderator: Presenter: Meg Zwick SVP, Director of Alternative Kaylock Yam Custody Services Distribution Lead Millennium Trust Company and EquityZen are not affiliated. Millennium Trust does not endorse any platform or investment, including platforms and investments accessible through MAIN. Millennium Trust performs the duties of a custodian and, as such, does not provide any investment, tax or legal advice, or perform any due diligence on behalf of account holders or any third party. How Private Investors Can Invest in Pre-IPO Companies Agenda • Public vs. private markets • Institutional private investing experience • Democratizing pre-IPO investment access via technology o Research and monitor potential investments o Secure and transparent transaction structures October 2016 CONFIDENTIAL 4 Public vs. private markets Investment returns are increasingly generated in the private market. October 2016 CONFIDENTIAL 5 Shift from public to private markets The shift from IPO to late-stage funding has caused returns to move from public to private investors. Source: Andreessen Horowitz October 2016 CONFIDENTIAL 6 Institutional private investing experience Access to private markets has been limited to institutional investors. October 2016 CONFIDENTIAL 7 Private investing experience – Venture Capital Fund Avg. Net IRR Previous Investments Current Investments 52% Etsy, Twitter, Tumblr Foursquare, Duolingo, MongoDB 49% Etsy, Facebook, Groupon Cloudera, Dropbox, Hotel Tonight 41% Apple, Google, Oracle Instacart, Airbnb, Stripe 41% Nest, Facebook, Groupon Square, Jawbone, Spotify 38% Nest, GrubHub, DoubleClick Bonobos, Outbrain, Nutanix 35% Twitter, Tumblr, OculusVR Foursquare, Slack, WealthFront 34% ExactTarget, Groupon, Wayfair HotelTonight, Nutanix, Practice Fusion 30% Netflix, Twitter, Zynga AppDynamics, Dropbox, Prosper 26% Facebook, Groupon, Netflix Spotify, Dollar Shave Club 23% Twitter, Tumblr, Yext Indiegogo, Hootsuite, Qualtrics Sources: Preqin and Pension returns (CalPERS, OPERF, UTIMCO) Note: Past performance does not guarantee future results. October 2016 CONFIDENTIAL 8 Private investing experience – Endowments and Foundations Source: Cambridge Associates Note: Past performance does not guarantee future results. October 2016 CONFIDENTIAL 9 Historical limitations for individual investors • High investment minimums ($1M+) • Difficult to access private funds o High investor fees (management and performance fees, including carried interest) o Exclusive availability for pre-existing investors • Broader market inefficiencies o Relationship-driven market o Lack of available research o Inability to customize investment selection October 2016 CONFIDENTIAL 10 Democratizing pre-IPO investment access via technology pre-IPO investing for private investors October 2016 CONFIDENTIAL 11 EquityZen Overview EquityZen is a technology platform to invest easily and securely in pre-IPO companies • Shares purchased from pre-existing shareholders (via secondary transactions) • Opportunity to invest in companies before they IPO or get acquired • All transactions are company-approved • Paperless transaction process • Minimum investment: $20,000 • SEC, FINRA registered October 2016 CONFIDENTIAL 12 How does EquityZen get shares of pre-IPO companies? Shareholder Content + Marketing Company-Friendly Approach • All transactions are company-approved • EquityZen Liquidity Manager • Online deal-room for companies • Stores a full audit trail of transactions • Includes share price history for all previous transactions October 2016 CONFIDENTIAL 13 Sourcing advantage through EquityZen’s platform Recently transacted deals on platform Valuation: $5.5bn Valuation: $800m Opens door to further sourcing via follow-on Valuation: $2.1bn Valuation: $2.2bn transactions Valuation: $5.9bn Valuation: $700m $30M+ transacted in 45+ companies 4,500+ shareholders already on EquityZen platform October 2016 CONFIDENTIAL 14 Research and monitor potential pre-IPO investments How can an investor keep track of 177 Unicorns? Source: CB Insights October 2016 CONFIDENTIAL 15 EquityZen has a tool to research and compare private companies EZ Advantage allows investors to filter companies by sector, VCs, funding, and other factors… …and select companies to compare October 2016 CONFIDENTIAL 16 EZ Advantage: company comparison A side-by-side summary and one-click “Add to Watchlist” to easily monitor potential investment opportunities October 2016 CONFIDENTIAL 17 Secure and transparent transaction structures EquityZen has devoted significant time and resources to ensure full compliance. October 2016 CONFIDENTIAL 18 Secure and transparent transaction structures Traditional share transfers • Company-approved • Investors are members of an LLC that owns the shares until a liquidity event (IPO or acquisition) October 2016 CONFIDENTIAL 19 Established partners and compliant operations Compliance Supervision & Insurance Counsel Fund Administration Cash Management Auditor October 2016 CONFIDENTIAL 20 A differentiated asset class The pre-IPO secondary market continues to grow… fast. October 2016 CONFIDENTIAL 21 A growing asset class that is increasingly accessible Secondary transaction volumes in private companies have been increasing (1) (billions; includes LP transactions) $35.0 $30.0 $30.0 $25.0 $20.0 $15.0 $12.4 $9.3 $10.0 $8.2 $5.7 $4.6 $5.0 $3.0 $2.4 $0.3 $0.5 $0.6 $0.9 $1.3 $0.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Addressable market for 177 largest VC-backed companies is $150 billion Total valuation of 177 Employee + Founder Available Addressable $1BN+ VC-backed firms ownership Investor Supply market $629 billion (2) est.15% est.10% ~$150 billion Source: (1) NYPPEX, (2) CB Insights October 2016 CONFIDENTIAL 22 EquityZen’s team and management • Founded: 2013 • Received funding from: 500 Startups, WorldQuant, sovereign wealth funds, family offices, wealth managers, and executives from Finance, Venture, and Law around the world • EquityZen Securities LLC is a SEC-registered broker-dealer and FINRA member Atish Davda Founder, CEO Phil Haslett Founder, Head of Investments • Former VP of Product at Ampush, grew from 1st • Former VP at Pomelo Capital ($350M hedge fund) employee to $30M revenue business • Previously at Barclays Capital (Proprietary Trading) • Previously investment analyst at • Series 7, 24, 66 and 79 certified AQR Capital Management Shriram Bhashyam Founder, Head of Legal Affairs Kaylock Yam, CAIA Distribution Lead • • Former attorney at Shearman & Sterling focused on Former Executive Director and Key Accounts manager securities and Broker-Dealer regulation at Arden Asset Management • • Series 7, 24 and 66 certified Built distribution for private and registered multi- manager hedge fund products • Series 7 and 63 certified October 2016 CONFIDENTIAL 23 Press coverage “Individual Investors like you and me have been shut out. Until now…” “This isn’t another one of those crowdfunding platforms that have been emerging over the market recently. Instead this is a quick way for investors to invest in startups.” “Secondary markets today are broken … EquityZen, by contrast, is designed with the company in mind, giving it control over who gets to sell equity, how much, and when.” October 2016 CONFIDENTIAL 24 Visit us at: www.equityzen.com/lp/mtinvestor ABOUT MILLENNIUM TRUST COMPANY • Privately-owned independent custodian located in Oak Brook, IL • Over 481,000 client accounts • $19.6 billion of assets under custody • $2.5 million in expanded FDIC coverage provided by multiple banks in a Cash Sweep Program for idle cash in retirement accounts • Regulated by the Illinois Department of Financial & Professional Regulation WHY CHOOSE MILLENNIUM TRUST Client Technology Focused Enabled Streamlined Account Processes Management Tools Expanded 27 Custody Solutions MILLENNIUM ALTERNATIVE INVESTMENT NETWORK TM (MAIN) Marketplace Lending Private Equity Platforms Crowdfunding and Precious Metals Portals Hedge Funds Other SOURCE: Millennium Trust Company, Schematic Illustration Millennium Trust does not endorse any platform or investment, including platforms and investments accessible through MAIN. Millennium Trust performs the duties of a custodian and, as such, does not provide any investment, tax or legal advice, or perform any due diligence on behalf of account holders or any third party. 28 Question & Answer Session MAIN WEBINAR SERIES Tuesday, November 15 3:00 p.m. CT MarketplacePresented Lending by: Street Shares Private Equity Platforms and Precious Metals Portals Hedge Funds Other CLICK TO EDIT MASTER TITLE STYLE Thank you for attending! www.mtrustcompany.com www.equityzen.com 866-388-9419 800-936-7943 .