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SURGE Ventures Series Seed & "A" Fund Pitch Deck

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This is the pitch deck we used to raise a $30M Series Seed and A fund to invest into Energy Technology companies

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SURGE Ventures Series Seed & "A" Fund Pitch Deck

  1. 1. CONFIDENTIAL New Investment Model to Enable Energy Technology Entrepreneurs
  2. 2. CONFIDENTIALCONFIDENTIAL • Headquartered in the Energy Capital of the world (Houston, TX) • Focused on revenue generating companies that emerge out of exclusively owned SURGE venture program • Partners with leading energy companies that serve as Investors, Customers, and Mentors to our portfolio • Recruits globally and invests locally into Houston based Energy Service focused entrepreneurs using technology as advantage • Owns exclusive ecosystem of top industry experts and entrepreneurs in energy technology • Develops loyal bench of talent through large alumni base and deep industry connections “The premier destination for Energy Entrepreneurs” 2 INTRODUCING SURGE VENTURES
  3. 3. CONFIDENTIALCONFIDENTIAL Executive Summary Investment Thesis History Operating Model Market Overview Investment Scope and Strategy People and Partners Track Record CONTENTS 3
  4. 4. CONFIDENTIALCONFIDENTIAL SURGE FUND V OFFERING $50M FUND DEDICATED TO EARLY STAGE ENERGY TECHNOLOGY 4 § Located in the Energy Capital (Houston); vertically focused on Energy technology. § Leveraging SURGE, top energy investment program and proprietary global deal flow. § Partnering w/ leading energy companies that serve as advisers and co-investors. § Targeting revenue producing energy entrepreneurs using capital efficient technologies (software and ‘smart’ hardware) for market advantage. § Becoming the first institutional investor (Pre-Seed, Seed, and Series A) with follow-on investments to maintain ownership position. INVESTMENT FOCUS AND MODEL OVERVIEW OF FUND STRUCTURE Fund Size $50M First Close $15M (Fall 2015) Fund Life 10 years Commitment period 4 years Management Fee 2.5% (life of fund avg.) Carried Interest 20% to GP GP Commitment Minimum of 1% Minimum LP Commitment $250,000 individual; $1M institutional Executive Summary
  5. 5. CONFIDENTIALCONFIDENTIAL FUND THESIS SURGE FUND V ADDRESSES A GAP IN THE ENERGY TECH VC SPACE SURGE IS A NATURAL OWNER § COMPETITIVE ADVANTAGE: SURGE has created a hard to replicate network of corporate partners/sponsors/investors/ mentors to help its portfolio companies; CVCs actively look to us as a pipeline for later stage investments § TRACK RECORD: SURGE has raised four funds in Houston with continued early success (even in low oil prices) of portfolio tracking to venture returns. § UNCAPTURED VALUE: Fund V is a natural extension of previous funds as it monetizes the value created by the Accelerator. The fund will only co-invest to maintain the ecosystem with broader access to exit options within and outside the energy industry GREAT MARKET § ENERGY DISRUPTION: The Oil & Gas industry is experiencing dramatic changes driven by a broad shift to unconventional resources (e.g. shale, deepwater). Legacy utility businesses also appear poised for large changes, as demand stagnates and distributed generation gains ground. § SOFTWARE EATING THE WORLD: VC investment is fueling rapid innovation in digital technologies, leading to dramatic cost improvements and changes in business models across industries. There has been limited disruption in energy to date until now. § CREW CHANGE AND COST PRESSURE: Generational turnover, coupled with ongoing cost pressures, are driving faster adoption of low cost digital innovation WITH A GAP § COASTAL VCS AREN’T IN THE GAME: VC powerhouses on the coasts have never invested in traditional energy, and don’t have the local presence or relationships needed to be successful § MATURATION OF LOCAL ENERGY VC FUNDS: Successful energy VCs in Texas have moved to bigger check sizes, focusing primarily in Series B/B+ or growth capital investments § CORPORATE VC AND ANGELS ARE ONLY A PARTIAL SOLUTION: Angels make very early stage investments, but lack the supporting ecosystem and process to support (not only finance) young companies. Corporate VC is active in energy, but only has capacity for later stage investments (Series B+) 5 Investment Thesis
  6. 6. CONFIDENTIALCONFIDENTIAL IMPACT OF OIL PRICES LOW OIL PRICES SPURS INVESTMENT INTO ENERGY TECHNOLOGY Urgency to Reduce Costs Increased Speed of Acquisitions Opportunistic Valuations Acceleration of Crew Change Through emerging technological solutions § Engineered fracking § Drilling automation § Predictive maintenance Large service companies that have access to cash will acquire technological capabilities at lower prices Early stage investors will be in a better position to negotiate valuations with companies Forced retirements drives the on- boarding of tech-savvy leadership who will demand vs. resist technology adoption Slow Buying Decisions Reduced Investment Capital Customers who are cash constrained will procrastinate new technology implementation Non-O&G investors will become increasingly cautious to invest in industry startups during times of uncertainty 6 Investment Thesis
  7. 7. CONFIDENTIALCONFIDENTIAL7 SURGE VALUE PROPOSITION BRIDGING BOTH SIDES OF THE ENERGY TECHNOLOGY CHASM History PROPRIETARY & GLOBAL DEAL FLOW 1,000+ Companies Annually from Proprietary Sources: § Industry Network (partnerships with top Super Majors, NOC’s, Service Co’s and Independents) § SURGE Brand + Global Rankings § SURGE Alumni Network § SURGE Accelerator Applications Process § Oil Country Partnerships (Canada, Norway, Brazil, Middle East) § McKinsey Partnership § University Energy Clubs § Proprietary Search Methodologies DEEP INDUSTRY PARTNERSHIPS Validation of SURGE Value Proposition: Major Industry players Serve as Advisers, Investors, and Customers Right Ideas, Right teams Internal Champions
  8. 8. CONFIDENTIALCONFIDENTIAL8 KEY LESSONS LEARNED TRACKING TO VENTURE RETURNS,BELIEVE CAN SUBSTANTIALLY IMPROVE History • Invest into what we know • Engage industry partners earlier • Focus on later staged entrepreneurs • Retain pro-rata rights • Focus has allowed us to see bigger patterns • Develop long-term capital partners that know energy • Early stage venture model is best entry point, but not the only way • Be exclusive • Build a great team KEY LESSONS KEY ACTIONS S4 portfolio focused on key themes Send deals, screen, and sit on IAC S4 portfolio is revenue generating Investing S5 into portfolio winners Creating investment strategies that align for multiple roll-up / PE plays New fund and corporate partners help fill gap in funding landscape Working with capital partners not required to force early venture exits Exclusive McKinsey & Energy Industry corporate partnerships Team has deep industry expertise, experience in larger roles, & fit values
  9. 9. CONFIDENTIALCONFIDENTIAL SURGE SELECTION PROCESS RIGOROUS AND INDUSTRY-DRIVEN 9 AUG 2014 SEP 2014 1,000 COMPANIES 8 COMPANIES CUSTOMER REVIEWNOV 2014 FEB 2015 100 COMPANIES 40 COMPANIES MENTOR REVIEW SURGE REVIEW Operating Model
  10. 10. CONFIDENTIALCONFIDENTIAL THE SURGE BUSINESS MODEL BUILD & MAINTAIN PROPRIETARY INDUSTRY ECOSYSTEM § Corporate Partners Serve as Experts, Customers, Investors § 200 Exclusive Industry Experts MODEL BUILT FROM INSIDE THE INDUSTRY DEVELOP & FOCUS ON KEY THEMES Driven by… § Corporate Partners Use Cases § Library of 3,000 companies reviewed since SURGE inception MAKE GREAT DEALS § SURGE only co- invests in Venture Program graduates in order to ensure market discipline § SURGE receives 4% - 8% equity into all companies participating into Venture Program (initial deal provides 10x return on invested capital from day 1). § SURGE receives a right to invest into next round to keep pro-rata and/or $1M, whichever is greater. § SURGE has largest benchmark of priced deals in Energy Tech to know best terms Operating Model DEVELOP DEEP BENCH OF LOYAL ALUMNI Alumni Provide… § Feedback Loop on What Works and Lessons Learned § Insight into the Customer § Relationships and Connections 10 Subsurface Operations PowerIOT & Hardware FIND & ASSESS “A” PLAYER ENTREPRENEURS § Review 1,000 companies annually from all over the world Due Diligence Includes: § Industry Partners § 4 – 12 month intensive program § 200 Industry Experts serve as Advisors
  11. 11. CONFIDENTIALCONFIDENTIAL FUND V VALUE PROPOSITION WHY THIS FUND WILL SUCCEED WHILE OTHERS FAILED 11 DEVELOP & FOCUS ON KEY THEMES O&G VCs MAKEGREAT DEALS FIND & ASSESS “A” PLAYER ENTREPRENEURS DEVELOP DEEP BENCH OF LOYAL ALUMNI X BUILD & MAINTAIN PROPRIETARY INDUSTRY ECOSYSTEM X X X X X X X X X X X X X Market Overview WEST COAST VC’s SURGE TEXAS VC’s SCF PARTNERS GENERIC PE
  12. 12. CONFIDENTIALCONFIDENTIAL COMPETITIVE LANDSCAPE HAVING 1ST POSITION GIVES SURGE FLEXIBILITY 12 SEED/SERIES A SERIES B/C GROWTH & LATER STAGE FINANCIALSSTRATEGICS ENERGY VCs CORPORATE R&D ENERGY VCs CORPORATE VCs TRADITIONAL PEs OIL FIELD SERVICE AND SOFTWARE ACQUIRERS Some opportunistic investmentsin Seed/Series A by later stage investors Market Overview
  13. 13. CONFIDENTIALCONFIDENTIAL OUTSOURCING INNOVATION COMPANIES ARE LOOKING OUTSIDE TO SOURCE INNOVATION 13 Market Overview
  14. 14. CONFIDENTIALCONFIDENTIAL O&G LAGS IN TECHNOLOGY ADOPTION A VIEW FROM 10 YEARS AGO 14 Market Overview SOURCE: McKinsey analysis
  15. 15. CONFIDENTIALCONFIDENTIAL NEW INDUSTRY DYNAMICS REQUIRE COST CONTROL OIL PRICE BAND Price floor driven by OPEC countries’ fiscal requirements. Price ceiling driven by competition from natural gas, solar, etc. COST OF PRODUCTION (2014) SMALLER DISCOVERY SIZE HARSHER LOCALES ENVIRONMENT/ SAFETY COSTS LABOR COSTS LEARNING CURVE/ STANDARDIZATION TECHNOLOGY COST OF PRODUCTION (2030) CONCEPTUAL *Statoil’s Helge Lund and Samir Brikho, head of UK-based services company AMEC, at the 21st World Petroleum Congress “Return on capital for major oil companies has decreased by a third in the last decade even though the oil price has tripled in the same timeframe.” - Statoil’s Helge Lund and AMEC’s Samir Brikho* INDUSTRY DEPENDENT ON TECHNOLOGY 15 Market Overview
  16. 16. CONFIDENTIALCONFIDENTIAL CREW CHANGE TO ACCELERATE ADOPTION RETIREMENT APPROACHING FOR LARGE COHORT OF MGMT Likely to retire in the next 5-10 years • A cohort of very traditional leaders will retire, putting decision making power in the hands of younger employees demanding technology solutions • Current leadership will seek to mitigate talent and knowledge gaps through the transition with automation • Higher prices for scarce talent will further drive cost efficient solutions ROUGHLY 40% OF OIL & GAS EMPLOYEES WILL BE UP FOR RETIREMENT IN 5-10 YEARS WE EXPECT THIS TURNOVER ACCELERATE THE PACE OF INNOVATION Sources: Schlumberger, McKinsey Insights, Industry press 16 Market Overview
  17. 17. CONFIDENTIALCONFIDENTIAL “SOFTWARE EATING THE WORLD” OIL & GAS IS STARTING TO CLIMB THE DIGITAL INNOVATION LADDER DIGITAL INFRASTRUCTURE DIGITAL TRANSPARENCY DIGITAL INSIGHT The oil and gas industry is predicted to spend over $33 billion by 2022 on oilfield intelligence solutions to address key industry challenges such as managing labor shortages, maintaining license to operate, reducing capital expenditure, and increasing efficiency and production. Current oilfield intelligence solutions are expensive, dependent on communication technologies that can be antiquated and may soon be retired, and often include a software interface that can be difficult to use and are limited with regard to interoperability and scale.* *SOURCE: WellAware Press Release 2014 Example companies driving adoption of digital solutions in the energy space... 17 Market Overview
  18. 18. CONFIDENTIALCONFIDENTIAL DATA IS THE FASTEST GROWTH FOR O&G INCLUDES IT, DATA, AND ANALYTICS 18 Market Overview EBITDA Margins <15% 15-25% >25% >8%5-8%<5% Market growth 38.3 32.3 36.0 17.6 60.0 46.1 30.0 87.8 8.7 LNG plants & equipment Pipe, Fittings and valves (PVF)Onshore construction services Rig con-struction yards Facility inspection and maintenance Land contract drilling rigs Onshore logistics Other operational services Insulation and surface services 1.3 0.1 0.3 0.4 1.5 9.8 14.7 9.7 11.1 38.0 0.5 7.7 Geoscience software Well design software Production operations software Flow optimization software Oil & Gas data Completion equipment Subsea equipment SURF Artificial lift Offshore construction services Coring Subsea intervention and IMR 16.9 Siesmic data acqui- stion and processing 0.8 Geoscience consulting 2.5 Geophysical equipment 21.2 Drilling systems 3.7Drilling tools 4.9Drilling bits 27.0 Drilling & completion fluids 17.3Chemicals 21.1 OCTG 6.1 Surface equipment 1.8 Subsea installation 6.7 Facility leasing 17.9 Engineering design 5.8 Other construc- tion services 55.0 Offshore contract drilling rigs 16.0 Supply vessels 3.4 Floating produc- tion services 6.5 Petroleum aviation 3.8 Base logis- tics 3.5 Casing & tubing 8.0 Fishing & re-entry 9.5 Cementing 14.3 Wireline logging 1.2 Surface data logging 3.6 Logging while drilling (LWD) 13.2 Directional drilling services 4.8 Production testing 5.7 Coiled tubing services 34.7 Hydraulic fracturing 2.5 Compression 7.0 Well servicing9.9 Automation/ Electro- maintenance SOURCE: Rystad Energy; Spears & Associates; Barclays E&P; IHS Herold; McKinsey; Team analysis
  19. 19. CONFIDENTIALCONFIDENTIAL ENERGY TECHNOLOGY INVESTMENTS FOCUS ON SOFTWARE AND CAPITAL EFFICIENT HARDWARE 19 Subsurface Operations Hardware Power/Utilities * Prospective SURGE IV companies included Investment Scope & Strategy AUTHOR ADMINISTER AUT Terrabotics
  20. 20. CONFIDENTIALCONFIDENTIAL SURGE TEAM GENERAL PARTNER WITH ENTREPRENEURIAL AND DOMAIN EXPERTISE KIRK COBURN 20 BACKGROUND: § Founder of SURGE Accelerator § Lead SURGE Investor § 3X Successful Entrepreneur § Led Pricing & Supply Chain at Dell § MBA and BBA in finance and accounting from UT Austin. RELEVANT EXPERIENCE: § Houston native with entrepreneurism in his blood. Kirk’s Grandfather ran West Texas oil fields during WWII, and Kirk’s father founded/exited an Energy IT Services Firm sold to Carlyle Group § Founded SURGE Accelerator and has led 34 investments during 2012-14 § Active Angel Investor in Energy Technology with 40+ investments § Developed deep relationships with the technology investment community (Angels, VCs, Corporates) § Founder and CEO of Chief Outsiders (acq. 2010), a Houston-based company with offices in Texas, Florida, Georgia, and New York § Launched The PGA TOUR Network on Sirius XM (acq. by SIRI) with successful 12X Cash on Cash return in less than 4 years. People & Partners ROBERT REDFORD BACKGROUND: § Actor § Entrepreneur § Cool Dude § Looks Similar to Partner on Left § Other Cool Stuff RELEVANT EXPERIENCE: § Does it really matter?
  21. 21. CONFIDENTIALCONFIDENTIAL21 SURGE ADVISORS KEY PARTNERS SERVING TO HELP GUIDE SURGE STRATEGY People & Partners LEADERSHIPADVISORS CORPORATEADVISORS VIP Director & Board XXXXXXX VIP Board Member XXXXXX VIP CEO XXXXXX TBA Managing Director Oil & Gas Private Equity VIP Largest Energy Operator VIP Largest Company in Energy VIP Large Oilfield Services VIP Large National Energy Co VIP Large Customer TBA VIP VIP VIP VIP VIP VIP VIP VIP
  22. 22. CONFIDENTIALCONFIDENTIAL EXTENDED NETWORK OF MENTORS 72 57 21 Oil and Gas Cleantech/Other Power • Upstream • Downstream • Midstream • Water • Generation • T&D • Renewable • Energy Efficiency • Energy Storage • Risk Management • Other 72 108 59 67 Services Technical Business Investment • HR • Legal / IP • IT • Marketing • Finance • Management • CEO / C level • Pricing • Supply Chain • Private Equity • Venture Capital # OF MENTORS BY SECTOR # OF MENTORS BY JOB FUNCTION • Engineering • Software • CTO • Cyber Security 36 Entrepreneurs, 114 Executives >200 EXPERTS VOLUNTEER FOR DUE DILIGENCE & BOARD ADVISORY People & Partners 22
  23. 23. CONFIDENTIALCONFIDENTIAL GOVERNANCE 3 COMMITTEES PROVIDE STRATEGIC INPUT AND FUND GOVERNANCE Provides strategic direction on portfolio, partnerships, and funding Provides critical input on individual investment decisions Provides fund governance and resolves potential conflicts of interest CORPORATE ADVISORY BOARD INVESTMENT ADVISORY COMMITTEE LP ADVISORY COMMITTEE GENERAL PARTNERS FAMILY OFFICES PRIVATE EQUITY OTHER ADVISORS VENTURE CAPITAL CORPORATE PARTNERS LIMITED PARTNERS GENERAL PARTERS 23 People & Partners
  24. 24. CONFIDENTIALCONFIDENTIAL VC & PE / SYNDICATE RELATIONSHIPS EXPANSIVE NETWORK OF FOLLOW-ON CAPITAL PARTNERS SURGE continues to build out a vast network of capital providers and strategic partners suitable for Series A-B co-investments and later stage funding. 24 People & Partners
  25. 25. CONFIDENTIALCONFIDENTIAL TRACK RECORD Vintage Years 2012, 2013, 2014 Actual Performance at 12/31/2014 | On Track for 5x Return by 2020 25 Track Record $ MILLIONS Cash on Cash 5.09x TVPI 9.53x Program Expenses / Reserved Capital Cash on Cash .94x TVPI 1.76x Removed Logos to Protect Alumni
  26. 26. CONFIDENTIALCONFIDENTIAL CASE STUDY – Molecule Software (SURGE 1) A SaaS Cloud based ETRM (Energy and Trading Risk Management) solution that replaces the existing inflexible legacy software with long and costly installation and integration costs Molecule + SURGE in 2015 Molecule founders had a simple “idea” that incumbent ETRM solutions are archaic. A SURGE mentor referred Molecule to SURGE as a potential investment SURGE was impressed by the depth of founders’ hands-on knowledge in this space compared to other startups in this space ETRM industry is a $1B market. 4 players own 2/3 of the market. None provide SaaS solutions Dynamic acquisition market • PE buys Triple point ($900M) • Brady buys Viz Risk ($15M) • Eka buys EnCompass ($20M) • OpenLink buys SolArc ($150M) § PRODUCT DEVELOPMENT: SURGE provided the original capital to incubate the idea and launch the first product § FUNDING: SURGE helped raise $2M led by Mercury Fund § TEAM: SURGE helped surround the founders with a board composed of leaders in BP Trading and Houston Federal reserve § SUCCESS TO DATE: • Has grown to 10 people • In less than 3 years, approaching feature parity with incumbents • Has participated in competitive bids against incumbents such as OpenLink and Triple Point and won • Expecting to reach $250K ARR by Q1, 2015 § EXIT PROSPECTS: Starting to receive soft offers in the range equivalent to EnCompass acquisition ($15-$20M) Molecule in 2011 26 Potential return multiple of 20-30X on initial investment Keeping this Data Private to Protect the Innocent
  27. 27. CONFIDENTIALCONFIDENTIAL CASE STUDY – Meshify (SURGE 2) The IOT for Oilfield Services. Integrated hardware and software company that connects distributed assets (oilfield equipment and other devices) to key distributed decision makers on any device in any location. Meshify + SURGE by 2018 Meshify provided home automation equipment focused on energy efficiency. The SURGE team met the two founders at a Houston entrepreneurship networking event. SURGE was impressed with the team’s NOV background and technical knowledge of the hardware & software stack in IOT. 50 Billion devices are expected to come online over next 10 years. There was no clear player focused in Oil & Gas (largest asset base for IOT). Acquisition Market very strong: • Controls Company = 10x Revenue • M2M Ecosystem = 15x Revenue • Vertical Market = 8x Revenue • Strategic Acquisition = 25x Revenue § LANDED MARQUEE CUSTOMER: SURGE introduced Meshify to its first marquee customer which is shaping the revenue model and competitive advantage. § GENERATED RECURRING REVENUE: Company generated $250k in recurring revenue in 2014 with a run-rate to exit 2015 of over $1.3M based upon SURGE introductions. § RAISED ADDITIONAL CAPITAL: Company has run a lean and a capital efficient business with the support of SURGE investment. Company has raised a $1M bridge round with the support of SURGE to extend its runway prior to a capital raise at a higher valuation. § SUCCESS TO DATE: § Landed large oil field service company as marquee customer and other key pilot customers § Team has grown to 10 people & recruited star insider § Visibility to $30M in revenue by 2018 w/ subset of industry customers. Other non-energy IOT companies have exited between 8x – 25x revenue. Meshify in 2012 27 Current run-rate equates into 6X return for SURGE Investment Keeping this Data Private to Protect the Innocent
  28. 28. CONFIDENTIALCONFIDENTIAL CASE STUDY – SEE Forge (SURGE 3) Collect, automate and visualize field-based paperwork to improve profits. A complete mobile cloud-based solution to automate all field based paperwork by using a simple FatFinger™ app. SEE Forge+ SURGE in 2015 SEE Forge was founded in 2012 in Perth, Australia. Won 2nd place for best mobile technology in Australia judged by ZAPP Awards in February 2013. Founder initially moved to California to meet investors, but customer inquiries were coming from Houston. Company was referred to SURGE by investors and energy entrepreneurs and arrived with a beta product in place. SEE Forge was the poster child for data capture and crew change solutions. Company secured $1M financing round in the first week of the SURGE Venture program. § PRODUCT DEVELOPMENT: SURGE mentor and investor, Raj Singal, joined as CTO to lead a rebuild of its beta product. Integration into any system (QuickBooks, ERP, SAP etc.) with robust real time reporting and dashboard analytics. § FUNDING: SURGE helped the company to an immediate $1M funding round. § TEAM: Recently poached Tibco’s Global Energy Director (champion of its Spotfire Oil & Gas roll out) to lead business development. Team is now 11 strong. § SUCCESS TO DATE: • $250k recurring revenue in 2014 (6 mo’s) with strong $1M+ pipeline for 2015. • Landed first enterprise customer • POC launched with major integrated operator. § EXIT PROSPECTS: • Already recognized by top investment banks as an emerging player in competitive landscape. • Partnerships with Microsoft, NOV, Sonim, Box.net and Siemens. SEE Forge in 2013 28 Comparable SaaS Exits in the 6X-8X LT Revenue Keeping this Data Private to Protect the Innocent
  29. 29. CONFIDENTIALCONFIDENTIAL CASE STUDY – Guard 1 (SURGE 4) Turning a security staffing company to a technology provider at the oilfield gate guard Guard 1 + SURGE by 2018 Guard 1 provides manned security services at the gate guards #2 Player in the market Recently developed an App that runs on Guard 1 IPads and enables digital data capture and remote and instantaneous access to the information The value add from the data opens a few tangible applications: • Reduction of billings when compared with actual delivery of services at the gate • Reduction of waiting times/fees for the trucks at the gate • Improved safety and security by recording who is in the field § TECHNOLOGY KNOW-HOW: Guard 1 approached SURGE to leverage our experience in building technology companies. § TEAM: SURGE in-house CTO (Raj Singal) acting as interim CTO to develop a 3 year technology road map § STRATEGY: SURGE helping to position Guard 1 as “itunes of the oilfield apps” due to its physical access to customers § ACQUISITIONS/PARTNERSHIPS: In discussions with SURGE portfolio companies (Greasebook, SEEForge, NeoTreks) to acts as distributor of others “apps” to the oilfield § ACCESS TO CUSTOMERS: SURGE is making introductions to CFO level customers (partially through partnership with McKinsey & Company), to land more customers § GROWTH Guard 1 in 2014 29 Implies potential return multiple of 45X on initial investment $Million Existing manned services Unmanned Cameras Platform for other Apps Licensing to non-oilfield Total Revenues 2014 12 0 0 0 12 Revenues 2018 18 2 4 1 25 Valuation increase 3.5 10 20 5 39 Keeping this Data Private to Protect the Innocent
  30. 30. CONFIDENTIALCONFIDENTIAL This PowerPoint presentation (the “Presentation”) is being provided to certain selected qualified prospective investors on a confidential basis for informational and discussion purposes only and may not be relied on in any manner as legal, tax or investment advice or as an offer to sell or a solicitation of an offer to buy an interest in the investment fund described herein (the “Fund”). A private offering of interests in the Fund will only be made pursuant to a confidential memorandum or presentation, a Limited Partnership Agreement and subscription documents related thereto, which will be furnished to qualified investors on a confidential basis. The interests in the Fund have not been, nor will they be, registered under the U.S. Securities Act of 1933, as amended, or qualified or registered under any applicable state, local, provincial or other statutes, rules or regulations. This Presentation (as amended or supplemented in writing from time to time), is provided on a confidential basis solely for the information of those persons to whom it is provided and their professional advisers so that they may consider an investment in the limited partnership interests (the “Interests”) in the Fund, and is not to be reproduced or used for any other purpose. This Presentation and the information contained herein may not be reproduced or distributed nor may its contents be disclosed to persons not directly involved with the prospective Investor’s decision regarding the purchase of the offered securities without the prior written consent of SURGE Venture Partners. DISCLAIMER 30

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