BUILDING A DIGITAL LENDING BUSINESS RITESH THADANI 1

ABOUT POLLEN VC Global App Marketplace is a $25Bn market growing to • Global App Marketplace is a $25Bn market growing to $142Bn within three years* • We help app developers unlock their app store earnings early to fuel growth and deploy venture capital more efficiently • New data-driven approach to lending - our tech platform connects directly to central billing system for digital products to price risk in real time n *Source:Vision Mobile Developer Economics Survey Feb 2014 BUILDING A DIGITAL LENDING BUSINESS

Platforms release your cash… PROBLEM: PLATFORMS ONLY PAY OUT REVENUE UP TO 60+ DAYS AFTER YOU’VE EARNED IT. Platforms release your cash… LAUNCH You’re earning money from day 1 This is your money trapped in the payment system BUILDING A DIGITAL LENDING BUSINESS

A NEW WAY… Acquire more users more quickly Draw down earnings on a daily basis Reinvest directly into advertising 4 BUILDING A DIGITAL LENDING BUSINESS

TYPICAL LAUNCH SCENARIO Fail to get credit with ad networks DOWNLOADS REVENUE Can’t reinvest to acquire more users Get paid by platforms LAUNCH Revenue / Downloads Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 Jun 2015 Jul 2015 BUILDING A DIGITAL LENDING BUSINESS 5

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FUNDING FOR FINTECH Amount $ Capital Markets Banks Family Offices Equity Capital Data/Model Validation BUILDING A DIGITAL LENDING BUSINESS

OLD WORLD COMPARISON PHYSICAL DIGITAL VS Creation and shipping of physical goods DIGITAL App Store Marketplace - Real time economics Consumers purchase digital product real-time - billed to credit cards instantly Invoices created at end of month and posted/emailed. Paid 30,45,60 day terms VS Advertising purchased in real time through RTB exchanges Advertising booked weeks in advance - eg TV campaigns, direct mailings Lack of financial products eg invoice financing Factoring/Discounting solutions available to shorten cycles at a cost 30 days is a long time. 60 days is an eternity! BUILDING A DIGITAL LENDING BUSINESS

STRUCTURE BUILDING A DIGITAL LENDING BUSINESS

GROWTH IN THE LONG TAIL • c. 70,000 developers making more than $10k/year across iOS and Google Play • L-Shaped revenue curve is flattening out • More opportunities for developers in the long tail • User acquisition becoming better understood BUILDING A DIGITAL LENDING BUSINESS 10

THANK YOU ritesh@pollen.vc @thadani Follow us at @PollenVC