File 024271
Blockchain Capital CCP II Investment Presentation with Bill Gates Bitcoin Quote (File 024271)
A Blockchain Capital venture fund presentation from October 2015 featuring technology leaders' perspectives on Bitcoin and cryptocurrency, with Bill Gates quoted on Bitcoin's technological significance. The document outlines CCP II's investment strategy, portfolio companies, and leadership team in the emerging cryptocurrency sector.
Summary
This Blockchain Capital presentation showcases industry thought leaders' views on Bitcoin and blockchain technology, including a quote from Bill Gates calling Bitcoin 'a technological tour de force.' The document details the fund's investment thesis across three categories (consumer, infrastructure, and enterprise cryptocurrency applications), highlights 37 portfolio companies with successful exits, and presents the experienced management team including Brock Pierce (Bitcoin Foundation Chair), the advisory board of prominent finance and technology executives, and a detailed breakdown of 20 cryptocurrency investments totaling $720,000 with strong returns.
BLOCKCHAIN CAPITAL, LLCCCP II, LPOCTOBER 2015ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital1TECHNOLOGY THOUGHT-LEADERS ARE CONVINCEDBill Gates:“Bitcoin is be0er than currency…a technological tour de force.”Ben Bernanke“[Virtual Currencies] may hold long-‐term promise, parDcularly if the innovaDons promote a faster,more secure and more efficient payment system.”Eric Schmidt“Bitcoin is a remarkable cryptographic achievement and the ability to create something that isnot duplicable in the digital world has enormous value.”Milton Friedman (1999)“I think the Internet is going to be one of the major forces for reducing the role of government…The one thing that’s missing, but that will soon be developed, is a reliable e-‐cash”Peter Thiel“I do think Bitcoin is the first encrypted money that has the potenDal to do something like changethe world.”Al Gore“I’m a big fan of Bitcoin…RegulaDon of money supply needs to be depoliDcized”David Marcus (former CEO PayPal)“I really like Bitcoin. I own Bitcoins. It’s a store of value, a distributed ledger. It’s a great place toput assets."ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital2INCUMBENTS EMBRACING THE BLOCKCHAINNASDAQ -‐ partnered with Chain to launch private company exchange“As blockchain technology conDnues to redefine not only how the exchange sector operates, but the globalfinancial economy as a whole, NASDAQ aims to be at the center of this watershed development,” -‐ RobertGreifeld, NASDAQ CEO,Ci< -‐ launched “Ci<coin” project"Blockchain technology not only has an opportunity to transform financial services but also extend far beyondpayments to new use-‐cases and applicaDons across industries," -‐ Debby Hopkins, Chief InnovaDon Officer atCiDSantander -‐ published: “Fintech 2.0 Paper: Reboo<ng Financial Services”“Blockchain technologies could reduce banks' infrastructural costs by $15-‐20bn a year by 2022”Standard Chartered"The banking industry is starDng to see the many potenDal benefits of its underlying technology. For banks,the blockchain has the potenDal to become a technology model for a low-‐cost and transparent transacDoninfrastructure.” -‐ Anju Patwardhan, Chief InnovaDon OfficerRoyal Bank of Scotland -‐ announced a $3.5 Billion technology revamp over next 3 years"I don’t know what’s going to succeed. What I'm certain of is that we are going to see blockchain soluDons,peer-‐to-‐peer soluDons emerging in our industry and we want to be close to that development.” -‐ SimonMcNamara, Chief AdministraDve Officer at RBSONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital3THREE TECHNOLOGY EVOLUTIONS OF DISRUPTION199520151975The PC Era The Internet Era The Blockchain EraSemiconductor TechnologyTCP/IP ProtocolBitcoin ProtocolONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital4EXPERIENCED TEAM IN INVESTINGBART STEPHENS BRAD STEPHENS BROCK PIERCE PAUL STEPHENSEXPERIENCE• Stephens Inv.Mgmt.• Ivanhoe Capital• E*Trade Group• Princeton• Stephens Inv.Mgmt.• Fidelity Ventures• CSFB• Furman Selz• Duke• Chairman of theBitcoin FoundationBoard• Founded 15xStartups• Raised > $200M• Invested in > 25x• RobertsonStephens & Co.• RS Investments• Duke Endowment• UC BerkeleyEndowmentStartupsRECOGNITION#2 U.S. Long/Short Hedge Fund*$500 Million AUM2.5x Venture Fund, 11.5% IRRFounded 8 cryptocurrency startupsand often referredto as the “father ofdigital currency”40 Years in SiliconValley InvestmentManagement andBankingLeaders in TechnologyInvestingIncubated and FoundedDozens of Startups100’s of Silicon ValleyInvestments*Absolute Return Magazine 2004ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital5SUCCESSFUL TRACK RECORD OF HOME RUNSPRIVATEPUBLIC201425.0x 2014 77.0x20048.1x200939.0x20086.9x20104.6x20085.0x20115.1x2014TBD20073.4x( 7 IPOs and 13 Acquisitions ) ( 17 Public Acquisitions )Private and Public Exits through Multiple Market CyclesONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital6BROCK PIERCE - CHAIR OF THE BITCOIN FOUNDATIONINDUSTRY LEADER AND SPOKESPERSONSERIAL ENTREPRENEURIGE (2001-2007) - Merged with ItemBayZam (2004-2012) - Sold to TenCentSingularityUniversityIMI Exchange (2004-Present)Xfire 2.0 (2011-Present)Playsino (2011-Present)GoCoin (payment processor)Blade Financial (Bitcoin debit card)Coin Congress (conference)Repeat Entrepreneur and Digital Currency VisionaryONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital7PARTNERS AND ADVISORY BOARDALISON DAVIS* | Director: Royal Bank of Scotland, XOOM, Fiserv and First DataMARY CRANSTON | Director: VISA, ex-CEO and Chair of Pillsbury WinthropTERRY SCHWAKOPF | EVP: Federal Reserve Bank of San Francisco, banking supervisionMICHAEL MCADAM | CFO: Union Bank (Mitsubishi UFJ Financial Group)SIMON MCNAMARA | CTO: RBS, ex-CIO of Standard Chartered, BNP and Deutsche BankVINNY LINGHAM | CEO: Gyft (acquired by First Data)BOBBY LEE | CEO: BTC ChinaNICCOLO DE MASI | CEO: Glu MobileSTEVE BEAUREGARD | CEO: GoCoinCHRIS PALLOTTA | Special Advisor: MIT Media Lab, Partner: Raptor CapitalMATT OCKO | Partner: Data CollectiveWILL O’BRIEN | Co-founder: BitGoCHARLIE LEE | Coinbase, Founder of Litecoin* Chairman of the Advisory BoardBuilt a robust team of Advisors and LPs from the Blockchain ecosystemONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital8CRYPTO CURRENCY PARTNERS I, LPThe First Dedicated Bitcoin Venture Fund - 30 Investments, Fully DeployedONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital9CRYPTO CURRENCY PARTNERS II, LPCurrent portfolio - both contributed and new investmentsONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital10PIPELINE & PROCESS600+Business PlansCONSUMER200+Meetings• Exchanges• Remittance• Digital Wallets• Deep Global DomainKnowledge37 PortfolioCompaniesINFRASTRUCTURE• Side Chains• Blockchain Apps• MiningENTERPRISE• Multi-sig workflow• Extensive Networks• Proprietary Deal Flow• Primary InvestigativeDue Diligence• ExhaustiveManagement/IndustryInteraction• Recruiting• Business Development• Capital Introduction• M&AHISTORICVENTURERETURNS• Payment Gateways• Financial ToolsONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital11ACTIVE BLOCKCHAIN VENTURE INVESTORSBlockchain Capital has co-invested with these leading VCsONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital12CCP II - 8 CONTRIBUTED INVESTMENTSDATE INVESTED $ AMOUNT DETAILSBitGoJune ’14$75,000Series A preferredCoinsetterDecember ’13$50,000Converted to Series A at 1.5xexpresscoinNovember ’13$25,000Convert to Series A, $2.5m CapGoCoinOctober ’13$100,000Converted to Series A at 4.5xKrakenApril ’14$70,000Series A preferredLedgerXJuly ’14$50,000Series A preferredBitAccessSeptember ‘14$25,000Note discounted to Series A preferredBitNetOctober ‘14$75,000Series A PreferredTOTAL$470,000(current value ~ $815,000… 1.7x)General Partners contributed co-investments at cost to CCP IIONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital13CCP II - 12 NEW INVESTMENTS MADEDATE INVESTED $ AMOUNT DETAILSPeerNovaSeptember ’14$50,000Converted to Series A preferredBlockStreamOctober’14$100,000Series A preferredChangeTipNovember ’14$250,000Series A preferredBonafideNovember’14$50,000Note discounted to Series A preferredBitPesaDecember ’14$100,000Note discounted to Series A preferredCoinbaseDecember ’14$200,000Series C preferreditBitJanuary ’15$250,000Series B preferredRippleMarch ’15$250,000Series A preferredABRAJuly ’15$100,000Series A preferredStemAugust ’15$250,000Note discounted to Series A preferredChainSeptember ’15$250,000Series C preferredGemSeptember ’15$250,000Series A preferredTOTAL$2,100,000ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital14CCP II - STRATEGY AND MAKE-UPEXPOSUREDiversified Sector-specificFUND POSITIONALLOCATION50%30%20%New CCP II investmentsReserves for CCP II follow-on roundsOption to use CCP I’s follow-on rightsINVESTMENT STRATEGYLeverage our network and industry expertise to findinvestments that utilize Blockchain technologies and helpthese portfolio companies disrupt legacy industries.Access to CCP’s early seed deals as well as future dealsONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital15CCP II - SUMMARY OF TERMSFUND TARGET$10-15MTERM6-8 YearsFEE/INCENTIVE2.5% / 25%GP CONTRIBUTION+5% Fund or +$1mINVESTMENTS25 ($100k - $500k per deal)STRUCTURE4 x 25% capital calls, BTC AcceptedONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital16CCP II - SERVICE PROVIDERSADMINISTRATION / CFOKranz & AssociatesLEGALSidley AustinTAX / AUDITCrawford PimintelBANKSilicon Valley BankCUSTODIANMerrill LynchBTC VAULTXapo & BitGoONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital17USE CASES FOR BLOCKCHAIN TECHNOLOGYFinancial and RecordsLegal / Health / EducationBitcoinPrivate EquitiesBondsPublic EquitiesSmart ContractsSignatures/identityDegreesShareholder VotingRemittanceCrowd-fundingWillsGenome dataTrustsLicensingSpending RecordsMicro-paymentsCommoditiesMedical RecordsEscrowsDelivery recordsTrading RecordsDerivativesMortgage/loan recordsArbitrationGradesPatentsCopyrightsDigital CouponsServicing recordsMicro-charityCertificationsAcademic CreditsPublic RecordsCommercial / MediaLand titles Birth certificates Vehicle registriesBusiness license Business Incorporation/dissolutionHR RecordsSupply chain mgmtBusiness transaction recordsAccounting recordsSoftware licensesBusiness Ownership recordsRegulatory recordsTrademarksSpam FiltersHotel room keysCriminal records Passports Death certificatesVoter IDs Building permits Health/safety inspectionsNon-profit records Court records Gun permits VotingGlobal trade network Loyalty Points VouchersDomain names Betting records Movie TicketsDRM: Music/movie/book license GPS network identityONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital18OPPORTUNITES FOR BLOCKCHAIN ADOPTIONMicro-TransactionsAll Global Media CompaniesFinancial SettlementStock, Bonds, Derivatives, etcRemittance Hot SpotsUSA, UAE -> India, Mexico, Philip.Early-Adopt MillennialsUSA, EU, AUCurrency Controlled MarketsKorea, S. Africa, China, IndiaUnstable MarketsAfrica, Venezuela, ArgentinaONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital19INDUSTRY GROWTH: 2014 to 2015ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital20CASE STUDY: ChangeTipChangeTip enables a “tipping” feature using Bitcoin on other companies’ websites. Ithas built a Bitcoin micropayment platform that is currently integrated with Twitter,GitHub, Reddit, Google+, Tumblr, and YouTube.We believe that ChangeTip’s micro transaction platform is poised to be the financialequivalent of the “Like” button, and enabling new mechanisms for premium onlineconstant to be monetized.ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital21HYPER-GROWTH- 2013 to 2015ONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital22SUMMARYFIRST DEDICATED BITCOIN VENTURE FUNDUNPARALLELED ACCESS TO DEAL-FLOWPROVEN TRACK RECORDSBuilding the Future Leaders in the Blockchain EconomyONE FERRY BUILDING, SUITE 255 SAN FRANCISCO, CA 94111 investor@blockchain.capital23