Notation reviewed the performance of its first two funds. Notation I has a 24.76% IRR and $900k still available for investment. Notation II has invested $3.4M of its $27.8M fund in 7 core companies focused on data and infrastructure. Notation sees opportunities in mining 2.0 and partnered with Bison Trails on Livepeer. For 2019, Notation wants a more diverse portfolio across early-stage investment types and new themes like health while maintaining discipline in a frothy market. Feedback and discussion on these strategies were discussed.

1. Annual Meeting - October 2018

2. Agenda
● Notation I overview
● Notation II overview
● Deep dive on mining 2.0 - Bison Trails
● Notation strategy in 2019 and beyond
● Feedback + Discussion

3. Mission
“Our mission is to be the most helpful venture firm in the world for
technical founding teams on day 0 of a new startup.”
➡ We believe that hackers will build the best companies of tomorrow, and
that all the fun and glory (and profit) is in working with them before what
they’re building is obviously valuable.
➡ We invest in technology companies that combine data and software in
novel new ways to create fundamentally better experiences for customers.

4. Notation I - Performance Review
At a glance:
$6.1M Invested (since Feb-2015)
$175k Initial Check / 4.9% Ownership / $3.25M Valuation (Pre)
$7.1M Cap Commitments Paid In / $13.6M Total Current Value
24.76% Current IRR (Net) / 1.90 TVPI (Top 5% Percentile)
$900k Still Investable (w/o further recycling)

5. Notation I - Notable Companies
[REDACTED - Company Sensitive Info]

6. Notation I - Potential Breakouts
[REDACTED - Company Sensitive Info]

7. Notation I - Challenges + Lessons Learned
[REDACTED - Company Sensitive Info]

8. Notation II – Performance Review
Key Stats:
● $27.8M Fund: $3.4M (12%) Invested (since Nov-2017)
● Pipeline: 298 Companies → 7 Core Investments
● Initial Check: $400k / 10.0% Ownership / $3.10M Valuation (Pre)
● Core Data / Infrastructure: $1.25M Invested
● Core Blockchain: $1.2M Invested (825k Equity / $400k Tokens)
● Core Consumer: $500k Invested
● Non-Core: $475k Invested in 6 Companies ($350k Tokens)

9. Notation II – Core Companies

10. Notation II – 2018 Investment Notes
Maintaining Discipline in a Frothy (and Challenging) Market
1. We continue to focus on technical teams based in NY that combine
data and software in novel new ways to create fundamentally better
experiences for customers.
2. Selectively dipping our toes in other non-SV geos (Boston, LA)
3. We have three “types” of core early-stage investments:
- $200k in an experimental idea stage project (target 8 total)
- $400k-$600k in a prototype / early revenue stage project (20)
- $600k+ into a few select seed stage companies (target 4 total)

11. Notation II – NYC Ecosystem Update
The NYC tech ecosystem continues to mature
1. In recent years, NYC has proven it can scale companies - WeWork,
Compass, Spotify, Etsy, Glossier, Justworks, Dia, Oscar
2. Technical companies in NYC are scaling too - MongoDB, Datadog,
Digital Ocean, Consensys, Bowery Farming, Carmera, Paperspace
3. The local venture community has felt more settled, fewer
institutional firms getting going, and very few with technical
expertise. We feel well positioned to fund this next cycle of
technical founders and startups.

12. Notation II – Investing in our Firm
Building a firm and brand for the long-term
1. We completed our new site and brand, as well as our new
operating manual. We believe that these things together much
better represent who we are and how we work.
2. The Origins podcast continues to grow, is widely listened to across
the startup ecosystem, and has become a unique asset for the firm.
13k listens last month, 4.5x YoY growth since Sep-17.
3. Technical recruiting remains a top priority for our portfolio
companies, and we are planning to invest additional time and
resources to build more scalable solutions in 2019.

13. A fundamental shift is underway in the Blockchain space
1. We believe we’re in the early innings of a renewed focus on
participating in blockchain networks, rather than pure speculation.
2. This new phase is being driven by next generation blockchains,
including a shift from proof-of-work consensus algorithms to
proof-of-stake, and competition amongst these networks for
mining participants and resources.
3. We’re calling these new forms of participation Mining 2.0 because
the new networks are highly varied, and not simply reliant on ASIC
hardware and energy advantages.
Notation II – Deep Dive into Mining 2.0

14. Livepeer Case Study
Notation II – Deep Dive into Mining 2.0

15. A Unique Partnership with Bison Trails
Notation II – Deep Dive into Mining 2.0

16. We think that our Livepeer work provides a really compelling playbook for
other potential areas of interest and new themes in 2019.
1. Build / Hack on new software platforms
2. Learn and form a thesis on the space
3. Invest and partner with similarly minded founders
Potential areas of interest in 2019: Health / Bio, AR, Quantum
Notation II – Hacking as a Template

17. Notation II - Looking towards 2019
Two Things On Our Mind:
1. We’ve been disciplined about valuation and ownership to date
(in a very frothy market), but also believe we should be
selectively considering more opportunistic investments.
2. Through our first year, we’ve over-allocated to blockchain
investments from a dollars and time perspective. We’re excited
about our investments to date, but our plan is to more actively
focus on new areas of interest in 2019.

18. Notation - Summary
Building a firm and brand for the long-term
1. Notation I appears to be performing well, but it’s still early in the
fund’s lifecycle.
2. We feel good about our discipline, work, and early investments in
Notation II, and we’ll continue to focus on our core themes and geo,
although recognize the importance of selective opportunism.
3. We want to build a more diverse portfolio in 2019, develop and
invest in new themes and areas of interest, and invest more
consistently across our three early-stage “types.”

19. Notation - Feedback + Discussion
Feedback + Discussion