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OCTOBER 2016
Bitcoin and Blockchain
Technology Summit

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BY THE NUMBERS
• 120 attendees representing 62 portfolio companies and
DCG subsidiaries
• 180 investors representing 120 VC’s, Family offices, funds,
and corporate strategic partners
• 65 presentations and a total of 900 slides
• 992 one on one meetings with 2,200 individual agenda
bookings via Guidebook

3.
OCTOBER 2016
Digital Currency Group
The epicenter of bitcoin and blockchain

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We believe that digital currency and blockchain technology is
going to transform our financial markets and will drive positive
economic and social change globally
OUR MISSION
It is our mission to accelerate the development of a better
financial system
We do this by building and supporting bitcoin and
blockchain companies and leveraging our insights, network
and access to capital

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DCG TODAY
• Three wholly-owned subsidiaries:
• Grayscale Investments
• Genesis Global Trading
• CoinDesk
• 28 employees at DCG and our
wholly-owned subsidiaries
• Launching “DCG Corporate
Network” in Q1 2017
Subsidiaries Portfolio
• Investments in 88 companies
• Adding ~2 companies per month
• Global network spanning 25
countries; largest in industry
• Over 1,000 employees in DCG family
Digital Currency
• Own BTC, XRP, ETC, ZEC

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• C-Corp structure provides us with:
• Flexibility
• Opportunity to build a new investing/operating model
• Permanent capital
• Ability to raise money from strategic investors
• Potential to take DCG public
WE ARE NOT A VC FUND

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OUR INVESTORS

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• Target 2-5% ownership at seed stage (invest up to
$200k)
• Focus on strategic life cycle investments (invest up to
$500k in Series A, $1 mm in Series B)
• Join syndicates with other professional investors
• Back the very best teams in our target markets
• Minimize conflicts of interest
OUR INVESTING STRATEGY

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• DCG portfolio has been the industry’s early VC pipeline
• Continued success à continuing to build symbiotic
relationship with professional investors
DCG FUNDING ANALYSIS
Announced Industry Deals $1.3 billion
Mining Operators $234 million
Non-Mining Deals $1.1 billion
DCG Companies $755 million
DCG companies raised
~70%
of industry funding to date
DCG INVESTING SUCCESS

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1. Blockchain Registry
2. Core Infrastructure
3. Enterprise Blockchain Solutions
4. Identity & Compliance
5. Payments 2.0
6. Smart Contracts
7. Trading & Tools
KEY INVESTMENT AREAS

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DCG PORTFOLIO
IDENTITY
ENTERPRISE BLOCKCHAIN
SMART CONTRACTSASSET REGISTRY
PAYMENTS 2.0TRADING & TOOLS
CORE
INFRASTRUCTURE

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2016 PORTFOLIO ADDITIONS
Blockchain
Registry
Core
Infrastructure
Enterprise
Blockchain
Identity &
Compliance
Payments
2.0
Smart
Contracts
Trading &
Tools
Bitmark Blockstream Bloq Chainalysis 4G Capital Lighting BitOasis
Everledger Jiko Services Enigma Civic Bitwala Rootstock
Crypto
Facilities
Fluent Netki Gem Cloudwear Brave SurBTC
Skuchain Snapcard Revelator Custos Joystream
Tierion Elliptic Streami
Token Yours

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• Supply chain
• Trade finance
• Identity & verification
• Cross border payments
• Digital currency as a speculative investment
WE ARE EXCITED ABOUT

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CROSS BORDER PAYMENTS -- ON/OFF RAMPS

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CROSS BORDERS PAYMENTS VIA BITCOIN
$0
$20
$40
Oct-15 Jan-16 Apr-16 Jul-16
Millions
$0
$50
$100
$150
Oct-15 Jan-16 Apr-16 Jul-16
Millions
Source: Align Commerce, BitPesa, Korbit (Hyphen), Snapcard (MassPay)
Monthly Volume Cumulative Volume

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• Holds ~1% of all
bitcoin
BITCOIN INVESTMENT TRUST
$0
$70
$140
9/25/13 3/25/14 9/25/14 3/25/15 9/25/15 3/25/16 9/25/16
Millions
Assets Under Management

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• Ethereum
• “Smart” Smart Contracts
• Decentralized autonomous organizations
• Initial Coin Offerings
WE ARE NOT EXCITED ABOUT…YET

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• Blockchain, blockchain, blockchain -- hundreds of POCs
• Business model for certain “blockchain” companies continues to be
challenging; venture investing slowing
• Growing number of companies hitting profitability
• Bitcoin scaling debate rages on…and solutions being developed
• Massive bitcoin transaction volume growth in India, Middle East, Nigeria,
Russia, Venezuela
• Digital currency becoming recognized as a new investable asset class, but
little institutional investor interest beyond bitcoin
• Central bank exploration into fiat digital currency; quiet on regulatory front
INDUSTRY STATE OF AFFAIRS

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TOP TEN PREDICTIONS FOR 2017
1. Bitcoin as a store of value re-emerges as key theme
2. Bitcoin becomes more accessible to retail and institutional investors via ETF(s)
3. Cross border payments/remittance using bitcoin hits a $1 billion run rate
4. Exponential bitcoin transactional growth in India, Japan & Middle East
5. Explosion of blockchain POCs focusing on supply chain
6. Identity solution competition heats up…but no leader emerges
7. SEC comes down hard on ICOs
8. First >$50 mm M&A transaction
9. Micropayment models materialize
10. Bitcoin price on 12/31/17 = higher

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OCTOBER 2016
Development
Building a global platform

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PORTFOLIO DEVELOPMENT
We connect our portfolio companies with our broad network to help fuel
collaboration, growth, and development of this industry

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THE DCG NETWORK
Portfolio (88)
Academia Policy
Co-Investors (700)Corporate Partners (200)
Family Offices & Funds (100)
Institutions

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KEY PORTFOLIO INITIATIVES
In storage and compute credits to DCG portfolio
companies, infrastructure partner for experimentation$2M
>1,000
Introductions to potential partners both within the DCG portfolio
and the DCG network
In the last 12 months…
40
Events for our portfolio and partners, including workshops,
working groups, and webinars, both in the US and abroad
150
New relationships with corporate partners developed – including
presentations to boards, executives, and technology groups

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THE NEXT EVOLUTION
Insights on Every Startup
and Consortium
Partnerships & POC
Matching
Events & Exclusive
Network
Announcing…
DCG Corporate Network

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JOIN US
Contact network@dcg.co for more information!