VENTURE CAPITAL OVERVIEW ARIF JANMOHAMED OCTOBER 2017

ABOUT ME About me Canadian. Parents from East Africa. 20 yrs in SF Bay Area with wife and 2 kids Education BSc, Computer Engineering, Waterloo MBA, Wharton (University of Pennsylvania) Career 9 years as a Venture Capitalist at Lightspeed (since 2008) Focus on Early Stage Enterprise IT companies. Specialize in early stage investing Prior to Lightspeed: Cisco, Sun Microsystems, Microsoft and various startups

LIGHTSPEED 2015 IPO BACKLOG $4.2 BILLION COMMITTED CAPITAL Lightspeed is an early stage venture capital firm focused on accelerating disruptive innovations in the Enterprise and Consumer industries. For over two decades, Lightspeed Partners have backed and helped build more than 200 global companies, many of which have become market leaders. 150+ ACTIVE INVESTMENTS Actifio AirBnB AppDynamics AppNexus Auction.com Automattic Box Cloudera CloudFlare CreditKarma Deem DocuSign Dropbox Eventbrite Evernote Fanatics Gilt Good Technology 22 PARTNERS 24 INVESTMENT PROFESSIONALS We will hear a lot more about the primary value drivers on each fund and updates from each Partner but we can see a brief snapshot of the largest portfolio movements in 2016 on the left. DEEP EXPERTISE IN ENTERPRISE TECHNOLOGY 1990’s TODAY GLOBAL FOOTPRINT ISRAEL, INDIA, CHINA 3

OUR RECENT TRACK RECORD 2015 IPO BACKLOG OUR RECENT TRACK RECORD SEPTEMBER 2016 JANUARY 2017 MARCH 2017 LARGEST IPO OF 2016 +$3 BILLION MARKET CAP $3.7 BILLION ACQUISITION FROM CISCO SERIES A B LARGEST INVESTOR ~$3 BILLION MARKET CAP SEED FIRST INVESTOR OVER +$18 BILLION MARKET CAP Actifio AirBnB AppDynamics AppNexus Auction.com Automattic Box Cloudera CloudFlare CreditKarma Deem DocuSign Dropbox Eventbrite Evernote Fanatics Gilt Good Technology We will hear a lot more about the primary value drivers on each fund and updates from each Partner but we can see a brief snapshot of the largest portfolio movements in 2016 on the left. 4

WHAT IS VENTURE CAPITAL High Risk / High Reward Investment Vehicle in EARLY stage, HIGH POTENTIAL growth companies Typically focused on - but not restricted to - TECHNOLOGY companies Venture Capitalists typically purchase equity (not debt) LONG investment horizon (5 - 10+ years from initial investment commitment) Returns generated through IPO or M&A as opposed to dividends / cash flow

TYPES OF VENTURE CAPITAL ANGEL INVESTORS Individuals investing their own capital Typically at earliest stages of company formation. $5K - $250K+ 1% - 10% equity ownership SEED FUNDS Institutional Investors investing on behalf of a collection of investors Very early stage investors $50K - $2M+ 5% - 15% equity ownership VENTURE CAPITALISTS Early to Growth Stage investors $500K - $100M+ 10% - 30% equity ownership + Board Seat

FLOW OF CAPITAL Venture Capital Fund Limited Partners (LP) commit to invest in a Venture Capital Fund Pension Fund Private Investor Family Office Foundations Endowments Venture Capital Fund 10-12 yr fund cycle 3-5 yr initial investment period 2%+ Management fee 20% Profits Startup Startup Startup Startup Startup VC Fund invests capital for minority equity stakes in multiple startups

VC FUNNEL INVESTING EXITS On average: 5000+ new companies tracked and identified across the firm 500 companies entered into preliminary diligence 25-40 companies invested per year EXITS For every 10 investments: 1-2 are “home-runs” (return 10x + invested capital) 4 are “solid hits” (return 3x – 5x invested capital) 3-4 are “flameouts” (return 1x or less invested capital) Failure is expected

LIGHTSPEED SECRET SAUCE PEOPLE Identify and nuture relationships with tech industry execs, repeat entrepreneurs, and angel investors for DEAL FLOW THEMES Pro-actively develop thematic ideas about the way the world will be before. Identify trends before they are buzzwords (eg: Big Data, ML/AI, eCommerce, Chatbots) Invest heavily across the value chain in emerging themse DATA ANALYTICS Develop internal core metrics to identify and flag promising companies. Reach out pro-actively (eg: SNAP).

CASE STUDY : SNAPCHAT $18B Market Cap

CASE STUDY : NUTANIX $4B Market Cap

CASE STUDY : UBER $69B PRIVATE Valuation

ASK ME ANYTHING… EXCEPT FOR MONEY Q&A ASK ME ANYTHING… EXCEPT FOR MONEY

THANK YOU 2200 Sand Hill Road Menlo Park, CA 94025 Telephone: 650.234.8300 lsvp.com @lightspeedvp 14