Click to edit Master title style Secondary VIII, L.P. April 14th 2016 Dallas Police & Fire Pension System FirmClick Overviewto edit Master title style Year firm Assets under Number of Number of fund founded management direct investments investments 2000 $2B 175 215 San Francisco Firm Distributions headquarters Number of professionals to Paid-In Capital Firm net IRR 2 offices 17 82%* 21% TWO COMPLEMENTARY FUND STRATEGIES SECONDARY LIQUIDITY PARTNERSHIP HOLDINGS • Secondary direct and secondary fund investments in • Fund and direct investments in early and late-stage venture-backed companies mid-stage venture-backed companies • Typically $20 - $200 million in revenues at time of • Typically pre-revenue to $20 million in investment revenues at time of investment • Seeking high IRR • Seeking high multiple All data is unaudited and estimated as of 9/30/15. *As of 10/21/2015. Aggregate track records are net of fees, expenses and carried interest paid to the general partner entity of each respective fund. Prior performance is not a guarantee 2 of future returns. Please see slide 15 for detailed track record information and a full list of funds. OurClick Team to edit Master title style FIRM MANAGEMENT FINANCE & INVESTOR RELATIONS HANS SWILDENS ROBERT MAY AARON HINZ LENA McNULTY LISA BREIMAN Founder & CEO COO & CCO Controller Investor Relations Investor Relations Speedera, Microline Founders Fund, Mohr Davidow, Thomas Weisel | Venrock Santa Clara University University of Denver UCSB | Columbia MBA Thomas Weisel PricewaterhouseCoopers San Jose State University UC Santa Cruz SECONDARY TEAM JUSTIN BURDEN VICTOR HWANG LINDSAY SHARMA IRA SIMKHOVITCH AMIR MALAYERY KATHLEEN COLLINS ERIC YEE Managing Director Managing Director Vice President Vice President Vice President Associate Associate GE Equity, Wells Fargo Internet Capital Group, Intuit, Great Hill Partners, The Carlyle Group, Dapper Shopping, Bulger Partners Moelis & Co UC Berkeley | London School Goldman Sachs Bear Stearns Commonfund, Booz Allen Summit Partners Dartmouth | Durham Claremont McKenna of Economics MSC Stanford BA | MBA Indiana | Harvard MBA MIT | Columbia MBA Stanford | Harvard MBA University PARTNERSHIP HOLDINGS TEAM INVESTMENT SUPPORT ROLAND REYNOLDS KEN WALLACE BRIAN LANGNER JAMIE LARSON ALASSANE GOLDSMITH Managing Director Managing Director Associate Executive Assistant Executive Assistant Columbia Capital, JP Morgan Bessemer Trust Standish Management Vornado Realty Trust Reply.com Princeton | Harvard MBA Wake Forest | UC Berkeley MBA UC Santa Barbara UC Santa Barbara Humboldt State University 3 ClickOutperformance to edit Master of title Venture style Capital U.S. VENTURE CAPITAL RETURNS – UPPER QUARTILE “UQ” NET IRR 90% 1981-1985 1986-1992 1993-1999 2000-2007 2008-2013 UQ Avg: 13% UQ Avg: 26% UQ Avg: 48% UQ Avg: 11% UQ Avg: 28% 80% 70% 60% 50% Net IRR 40% 1981-2013 UQ Avg: 25.3% 30% 20% 10% 0% US VC Top Quartile Vintage Returns Source: Cambridge Associates as of March 31, 2015. Note: Past performance is not indicative of future results. 4 ClickVenture to edit Investment Master title Life style Cycle Angel/Seed Early Mid Late Exit Financing Stage Stage Stage Series Seed Series A-B Series B-C Series D+ Stage Initial product Early customer Scaling product Growth of development adoption and go-to- established IPO and market market strategy product testing Typical Enterprise Usually not $20-$100M $100-$200M $200M+ Value determined Typical Financial <$1M of $1-10M of $5-20M of $20M+ of M&A Profile revenue revenue, revenue, revenue, path negative cash negative cash to positive cash flow flow flow Typical Investors Angels and VCs VCs VCs, Growth Seed Funds Equity, Corporations, Secondary Public Funds, SWFs Note: For illustrative purposes only. 5 ClickA Platform to edit for Master Venture title Capital style Investments Strong track record • 21.7% net IRR across all funds since inception • Over $1 billion in distributions Complementary fund strategies offer LPs broader exposure to venture asset class • Secondary strategy provides exposure to later-stage companies while Partnership Holdings provides access to early and mid-stage companies • Single GP relationship for LPs reduces complexity Unique differentiated investment strategy focused on inefficient investment areas • Secondary direct, concentrated limited partnership interests and special situations • Small venture funds via early secondary/primary LP interests and direct investments Competitive advantages are long term and sustainable • Experienced and proven team executing in one asset class • Proprietary database, access to funds and proprietary deal flow 6 SecondaryClick to edit Strategy Master title style Secondary Direct Investments Limited Partner Interests • Direct purchase of company • Minority or majority interest in a venture shares fund • Liquidity for employees, founders, • Mitigate J-curve with LP interests angels, VCs and other investors that are typically fully funded • Sellers willing to exit at • Leading companies with $20M+ LP Interests a discounted price of revenues Secondary 25% Direct • 10-20 transactions expected • 20-40 companies expected 50% Special Situations Portfolios of Directs 25% Special Situations • Purchase of a direct venture • Secondary transactions that portfolio from investment manager involve unique deal structuring winding down operations • Special Purpose Vehicles (SPVs) • Sellers are typically VCs managing tail end funds, corporate venture units and hedge funds • Employee tender offerings Structural flexibility to offer creative solutions and access unique investment opportunities 7 ClickSecondary to edit Venture Master titleCapital style Opportunity Venture Companies Financed vs. Exited: 1997- 1H 2015 Venture Companies: Average time to IPO 9,000 7,834 8,000 10 7,000 9 8.7 7.9 8.0 6,000 8 7.4 7.1 6.8 6.8 6.9 7 6.4 5,000 6.2 4,388 5.7 5.6 5.6 3,906 6 3,837 3,747 4,000 3,722 3,579 3,407 3,404 3,542 5 4.7 3,085 3,082 3,093 2,963 3,056 2,742 3,000 to IPOof Years # 4 3.6 2,284 1,960 3 # of companiesof# 2,000 2 657 1,000 505 581 629 582 549 542 283 412 351 323 442 414 441 456 354 434 265 1 - 0 Financed Exited • Investment pipeline remains strong as there are over 8x as many • Exit time horizons remain long, creating liquidity needs companies financed vs. companies that achieve an exit in any given for early investors and management calendar year Source: Thomson Reuters & VentureSource 8 TermsClick to edit Master title style Name Industry Ventures Secondary VIII, L.P. Structure Delaware Limited Partnership Fund Size $425 million GP Commit 2% Term 10 years Commitment Period 5 years Management Fee 1.5% Carry, Preferred Return 17.5% Carry with 6% Preferred Return or 15% Carry and no Preferred Return Target Allocation 50% Direct Secondaries / 25% Late Secondary LP Interests / 25% SPV Target Net Return 2x multiple and 20% IRR *Targeted net returns involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements to differ materially from these projections. These projections speak only as of the date hereof, and Industry Ventures disclaims any obligation or undertaking to provide updates or revisions to reflect any change in its expectations. 9 BiographiesClick to edit Master title style FIRM MANAGEMENT HANS SWILDENS, FOUNDER AND CEO Hans is the founder of Industry Ventures and is on the investment committee of the Firm's Secondary Funds and Partnership Holdings Funds. As an early pioneer of the modern secondary market for venture capital, Hans sources and leads investments in secondary opportunities and special situations for the Firm. Additionally, he directs the Firm’s investment processes, operations and limited partner relationships. Since founding Industry Ventures, Hans has sourced and led the acquisition of hundreds of secondary investments in the venture capital industry. These transactions include purchasing corporate venture capital funds, hedge fund investments, restructuring limited partnership interests, acquiring portfolios of limited partnership interests, purchasing founders' equity interests and structuring special situation investments with General Partners and Limited Partners. Earlier in his career, Hans was a successful entrepreneur who co-founded and acted as President of Microline Software. Microline was acquired by Blaze Software (IPO) and was subsequently acquired by Fair Isaac. He also provided board advisory services to Discovery Mining (acquired by Interwoven), nCircle Network Security (acquired by Tripwire), Speedera Networks (acquired by Akamai), and StepUp Commerce (acquired by Intuit). Hans holds an MBA from Columbia Business School and a BA with distinction from the University of California at Santa Barbara. ROBERT MAY, COO & CCO Robert is the Chief Operating Officer and Chief Compliance Officer for Industry Ventures. As the COO and CCO, Robert is responsible for all of the financial, compliance, and operational aspects of Industry Ventures. Prior to joining Industry Ventures, Robert worked as a consultant for Standish Management and led the Palo Alto office. Prior to that, Robert was the COO and CFO for Founders Fund. Prior to Founders Fund, Robert spent four years as the CFO of Thomas Weisel Venture Partners. Robert began his career in Venture Capital as the Controller for Mohr, Davidow Ventures. Robert graduated from San Jose State University with a BS in Business Administration. 10 BiographiesClick to edit Master title style PARTNERSHIP HOLDINGS TEAM ROLAND REYNOLDS, MANAGING