Starting Your Venture Portfolio with a Smart, SELECT Simple Solution FUND OVERVIEW • About AVG • Our Investing Model • Select Fund • Focused Funds • Fund Leadership Team www.AVGFunds.com 2 ALUMNI VENTURES GROUP • One of most active venture firms in world, with 300 Most Active VCs in US 2018 deals completed • Mission: make venture capital simple, smart, accessible • Evolved from a single $1.5M fund (2014) to 20+ funds, each ranging $5-15M. Now over $300M AUM. • What’s different about us: Low minimums, diverse portfolios, annual or quarterly funds, great transparency • Serve accredited investors; over 3,000 have invested with us www.AVGFunds.com 3 WHY INVEST IN VC? • VC has consistently delivered strong returns • VC can do well, even when other asset classes don’t Fewer IPOs Vs. Acquisitions & Buyouts • Companies are staying private longer—or not going public at all • Sophisticated investors typically put 5-15% of their portfolios in VC 30-year annual average for VC returns: 19.65% — ~2x the S&P 500 Net of fees, carried interest Cambridge Associates, US Venture Capital Index and Selected Benchmark Statistics June 30, 2018 www.AVGFunds.com 4 VC OPTIONS WERE POOR… UNTIL NOW • Lack of access to the best deals • DIY is incredibly time intensive • Diversification is nearly impossible www.AVGFunds.com 5 AVG INVESTMENT TERMS • Open to accredited investors • Investor minimum generally $50K • 10-year funds, largely invested in 1-2 years • Single check and K-1 • One capital call and fast distributions • 2% management fee & 20% carried interest (after fees returned) www.AVGFunds.com 6 AVG INVESTMENT MODEL • 40 full-time investment professionals out of 5 offices seeking & vetting deals, plus HQ resources • We’re co-investors, looking to be a small participant alongside a leading VC firm with expertise in the sector • Source deals via our 400,000 member community • Huge deal funnel: sort through hundreds of deals before selecting best to invest in • Share deals among our funds to write bigger checks • Process: find, diligence, score, share with sibling funds www.AVGFunds.com 7 CO-INVESTING WITH TOP VCS We invest in deals alongside top VCs that most individuals never know about or get access to • 500 Startups • F-Prime Capital (Fidelity) • New Enterprise Associates (NEA) • Accel Partners • General Catalyst Partners • Nokia Growth Partners • Andreessen Horowitz • Goldman Sachs Ventures • Norwest Venture Partners • Benchmark • Google Ventures • Sequoia Capital • Bessemer Venture Partners • Greylock Partners • Summit Partners • Bezos Expeditions • Khosla Ventures • SV Angel • Blockchain Capital • Kleiner Perkins Caufield & Byers • Thiel Capital • CrunchFund • Lightspeed Venture Partners • Venrock • Founder Collective • Maveron • Winklevoss Capital • Foundry Group • Menlo Ventures • Y Combinator www.AVGFunds.com 8 …AND WHY THAT MATTERS VC IRRs 50% Source: PitchBook Benchmarks, Private Markets Data Through 3Q 2018 40% 30% 20% 10% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 -10% Top Quartile Median IRR Bottom Quartile www.AVGFunds.com 9 www.AVGFunds.com 10 SELECT FUND: WHERE INVESTORS NOT CONNECTED TO ALUMNI FUNDS START Berkeley Alums | Strawberry Creek Northwestern Alums | Purple Arch Brown Alums | Waterman Penn Alums | Chestnut Street Columbia Alums | Fission Princeton Alums | Nassau Street Cornell Alums | Triphammer Stanford Alums | Spike Select Fund deals a subset Dartmouth Alums | Green D UCLA Alums | Westwood of all AVG Alumni Fund AVG Select Fund deals: chosen for Duke Alums | To w e r v i e w USC Alums | Expo diversification Harvard Alums | The Yard UTexas Alums | Congress Ave MIT Alums | Castor Wisconsin Alums | Bascom Yale Alums | Blue Ivy www.AVGFunds.com Neither Alumni Ventures Group nor any related funds are sponsored by, affiliated with, or otherwise endorsed by any university. 11 INVESTMENT PROCESS InvestInvest in in about about 1 1-3- 3opportunities deals per / monthmonth Investment Teams Fund Pulls from AVG Fund Deals Programmatic Selection • 40+ full-time professionals • We draw from the deals sourced and • Selected for diversity internally led by other AVG Funds • 5 regional offices • Selected for correlation to • Each Fund does 1-3 deals a month investment industry trends • Hundreds of years of venture investing experience • 1-3 deals per month chosen for Select Fund www.AVGFunds.com 12 SELECT FUND • Portfolio of 30-40 deals diversified across sector, • Open to all accredited investors stage, and geography • Deals chosen from all AVG deal flow to mirror • Co-investing alongside top VCs VC industry SECTOR STAGE GEOGRAPHY Sample Select Portfolio www.AVGFunds.com 13 SAMPLE SELECT FUND INVESTMENTS Visit our website to view the entire AVG portfolio STAGE STAGE STAGE STAGE STAGE Growth Growth Early Early Early SECTOR SECTOR SECTOR SECTOR SECTOR BioTech / Genomics Health / Healthcare Transport Fintech AI / Machine Learning GEOGRAPHY GEOGRAPHY GEOGRAPHY GEOGRAPHY GEOGRAPHY New England California New York California New England Area CO-INVESTORS CO-INVESTORS CO-INVESTORS CO-INVESTORS CO-INVESTORS OrbiMed, F-Prime Andreessen Horowitz, Menlo Ventures Aspect Venture Autodesk, Borealis Capital Partners, Naspers, Thrive Partners, Accel Ventures Borealis Ventures, GV, Capital, BVC Partners, Pelion Thiel Capital Venture Partners *These deals are representative of the type of deals an investor might expect in the AVG Select Fund www.AVGFunds.com SELECT FUND SAMPLE PORTFOLIO COMPANY INDUSTRY STAGE LEAD CO-INVESTOR COMPANY INDUSTRY STAGE LEAD CO-INVESTOR PharmaCCX Oncology Early Accel PropelPLM SaaS Early Norwest Venture MitraBiotech Life Sciences Growth Northpoint Ventures Smitten Other Early 3rd Creek Ventures SimpleMachines TMT Early Baidu Ventures PartySlate TMT Early Hyde Park Venture Vector Space Space Tech Growth Kodem Growth Gifnote Mobile Early Gregg Smith Systems RapidSOS Mobile Growth Playground Global Vyrill AI/Machine Learning Seed Lisa Wang ModBoot Robotics/Drones Early Bright Success Capital Hatch Apps SaaS Seed Revolution Lily AI AI/Machine Learning Seed NEA BlastPoint Big Data Seed Quake Capital Oxygen Fintech Early City Ventures TRM Labs Crypto/Blockchain Seed Blockchain Capital Clear Labs Life Sciences Growth Menlo Ventures NPM SaaS Early True Ventures GoGig Industrials Early Quiet Thunder Somna Therapeutics Wearables Seed 30Ventures ParKWhiz Mobile Early New Spring Capital Alba Mobile Seed Dadneo Capital Mighty Buildings 3D Printing Early Khosala Ventures Wrench Mobile Early Tenaya Capital Happie HR Tech Seed NXT Ventures Ollie Pet Tech Early Canaan Partners Rylo TMT Growth Icon Ventures Alpaca Real Estate Tech Early Lightspeed Venture Sorcero Edtech Seed Pearl Investment CumulusDS IoT Early Shell Ventures www.AVGFunds.com 15 INVESTING OPTIONS • Invest via a self-directed IRA • Non-US investors can more quickly and easily invest via our Offshore Vehicle • Investors who commit $100K get access to Syndication deals • Investors in Select can opt into other Focused Funds for as little as $10K www.AVGFunds.com 16 FOCUSED FUNDS FOCUSED FUNDS • Generally $50K investor minimum; $10K minimum when added to commitment to the Select Fund • Open to all accredited investors • Focus: specific investing thesis • Deal flow from actively managed AVG Core Funds • Quarterly closes www.AVGFunds.com 18 FUND REVIEW ELITE ENGINEERS • Elite engineers have founded or run companies that today have a market cap in trillions of dollars More info • We invest in companies solving some of tech’s hardest problems (Artificial Intelligence, SpaceTech, etc.) • Senior Partner Alain Hanover FIRST CHECK FUND • Good early investments in private companies can be huge difference makers, with winners offering outsized returns More info • We make many small bets, keeping significant reserves to chase winners • Managing Partner Lynn-Ann Gries FRONTIER • We seek investment opportunities across US—outside CA, NY, MA More info • Lower operating costs, more attractive valuations • Senior Partner Greg Baker SOCIAL IMPACT • First, we look for good deals: financial motive More info • We also seek ventures with a positive social impact: sustainable cities and communities, clean energy, climate action, and more • Senior Partner Gail Gilbert Ball WOMEN’S • First, we look for good deals: financial motive More info • We also support for women founders, venture investors, business and tech leaders AND/OR positive impact on women in areas of opportunity, health, education, or wellbeing • Senior Partner Gail Gilbert Ball ~20-30 deals in a fund portfolio, $50K minimum, open to accredited investors www.AVGFunds.com 19 TEAM Anton Simunovic Gail Gilbert Ball, Alain Hanover Chief Investment Officer Senior Partner Senior Partner • 20+ years of experience as VC investor, • Banking executive, regulator, service • 30+ years of experience as a VC, angel entrepreneur, and operating executive in provider: COO of Bancorp Bank, investor, CEO, serial entrepreneur, companies from startups to Fortune 10 Capital One, PNC Bank, Chase and Board Member, advisor Federal Reserve Bank of Richmond • Founded and led Vener8 Technologies, a Payment Studies Group • Co-founder of Common Angels, New tech commercialization company he England’s leading Angel group started with GE • 30 years in fintech (payments, payments risk mitigation, M&A) • Led Software & Internet Infrastructure Group at GE Equity, investing $72M Lynn-Ann Gries Greg Baker Deborah Walden Managing Partner Senior Partner Senior Partner • Career in financial arena: investment • 15 years as entrepreneur in corporate • 25+ years experience