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Artificial Intelligence in Financial Services

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Artificial Intelligence in Financial Services

  1. 1. www.hof.capital 1 David Teten HOF.capital / @HOFcapital teten.com / @dteten
  2. 2. www.hof.capital 2 Don’t Take Notes! Download detailed slides at: teten.com/ai
  3. 3. www.hof.capital 3 Co-author: David Teten ▪ Managing Partner, HOF Capital ▪ Previously Partner for six years, ff Venture Capital, one of the top four consistently best-performing seed- and early-stage VC firms in the U.S. ▪ Advised clients such as Goldman Sachs Special Situations Group, Icahn Enterprises, LLR Partners ($1.4b fund), Birch Hill Equity Partners (C$2B fund), and other institutional investors ▪ Previously serial fintech entrepreneur, strategy consultant, and Bear Stearns technology investment banker ▪ Harvard MBA + Yale BA ▪ Teten.com / @dteten / info@teten.com
  4. 4. www.hof.capital 4 Co-author: Yordanka Ilieva ▪ Columbia Business School Graduate, Class of 2017 (Dean’s Honors with Distinction) ▪ Pre-MBA experience: 7 years of technology & media corporate finance, entrepreneurial management and new venture development ▪ Director of Finance & Operations at Selerity, a fintech start-up, providing AI powered content & data science solutions for enterprise applications ▪ Business Development at Moody’s Analytics Knowledge Services ▪ Media, technology & telecommunications investment banking at Credit Suisse and Lazard Freres (M&A and restructuring) ▪ https://www.linkedin.com/in/yordanka-ilieva-35b8635
  5. 5. www.hof.capital 5 ✓ International platform (2 primary offices and 7 affiliate offices, in 8 countries and 5 continents) ✓ Cross-border investment team fluent in 8 languages ✓ Semi-automated, data-driven technology infrastructure ✓ Already co-invested with 7 leading VC funds in the same round with the same terms, including 8VC, Bessemer Venture Partners, First Round Capital, and Matrix Partners ✓ Strategic global enterprise LP network, including the Orascom Group, the Godrej Group, and Dallah Al Baraka to help scale portfolio investments into previously unattainable markets ✓ $9m+ of additional capital committed to the management company by the anchor LP to support and scale up operations HOF Capital: Uniquely Positioned to Outperform
  6. 6. www.hof.capital 6 Where We Lie On the Spectrum of Innovation Source: TechCrunch: Analyzing the spectrum of corporate innovation from R&D to VC, Scott Lenet Source: (1) pwc Strategy&, (2) Idealab, (3) Y Combinator, (4) CB Insights, (5) Crunchbase, (6) Bloomberg Internal External R&D Ranked #1 most innovative company in 2016 with a R&D spend of $8.1bn1 Innovation efforts start and remain internal Incubator Created over 150 companies with more than 45 IPOs and acquisitions2 Innovation efforts start internally, and then spun out VC Voted the #1 VC in VC Peer Rankings 20164 Innovation efforts start externally and remain external, but are funded by a corporation seeking to accomplish a return on the investment Accelerator Alumni have a combined valuation of over $80bn3 Innovation efforts start externally, are “accelerated” internally through a limited- time program, and then return outside M&A Largest VC-backed M&A deal; $22bn acquisition by Facebook6 Innovation efforts start externally, but are made internal via a merger or an acquisition Example Example Example Example Example We have the deep understanding of enterprise needs and access to early revenues of a corporate VC, but the independent credibility and attractiveness to founders of an independent VC Corporate VC Invested more than $11bn in over 1,373 companies in 56 countries5 Deep insight into enterprise needs, lower fundraising cost, and access to early revenues. Typically viewed as less attractive by founders and has mediocre returns Example
  7. 7. www.hof.capital 7 The World Market for A.I. is Growing Rapidly AI YEARLY GLOBAL FINANCING (2012-2016) ▪ $5BN AI global funding in 2016 across 658 deals Prepared by: Yordanka Ilieva* Source: https://www.cbinsights.com/blog/artificial-intelligence-startup-funding/ https://www.tractica.com/newsroom/press-releases/artificial-intelligence-revenue-to-reach- 36-8-billion-worldwide-by-2025/Based on Public & Non-confidential Sources
  8. 8. www.hof.capital 8 Global A.I. Revenue is Expected to Reach $36.8 BN by 2025 Prepared by: Yordanka Ilieva* Source: https://www.cbinsights.com/blog/artificial-intelligence-startup-funding/ https://www.tractica.com/newsroom/press-releases/artificial-intelligence-revenue-to-reach- 36-8-billion-worldwide-by-2025/ AI GLOBAL REVENUE (2016-2025) Based on Public & Non-confidential Sources
  9. 9. www.hof.capital 9 What is A.I.? https://flic.kr/p/4soTyr “Never send a human to do a machine’s job.” - Agent Smith
  10. 10. www.hof.capital 10 ▪ Intelligence provided by the programmer ▪ The use of software to study or accomplish specific problem solving or reasoning tasks, e.g., chess. “A.I.” Is What Computers Can’t Yet Do Source: https://en.wikipedia.org/wiki/Weak_AI https://en.wikipedia.org/wiki/Applied_Artificial_Intelligence https://en.wikipedia.org/wiki/Artificial_general_intelligence “Weak” A.I. “Applied” A.I. “General” A.I. ▪ Intelligence, but in a very limited field ▪ Most focus today is in Applied A.I., like Deep Learning models for narrow verticals like Facial Recognition or Autonomous Vehicles. Most of commercial A.I. is based on Machine Learning algorithms like Neural Networks and others (Decision Trees, K Means, SVM) ▪ Intelligence, but not limited to a narrow field where humans still have to impose certain rules (labeled data) before it can “learn” ▪ Attempts to perform the full range of human cognitive abilities ▪ As seen in movies such as “Her”, “Ex Machina”, and many others
  11. 11. www.hof.capital 11 A.I. > Machine Learning > Deep Learning A.I. = set of algorithms and techniques to try and mimic human intelligence A.I. techniques: - Machine Learning - Expert systems - Logical reasoning - Probabilistic reasoning - Control theory Machine Learning = Computer learns from labeled, training datasets (one of many A.I. techniques) Machine Learning techniques: - Deep Learning - Decision trees - Random Forest - Bayesian networks - Support vector machines - Reinforcement learning - Genetic algorithms Deep Learning (one of many M.L. techniques) Consist of many layers (deep) neural networks that learn to create neural pathway predictions on new data based on its learning from training datasets, typically labeled. Source: https://medium.com/intuitionmachine/why-deep-learning-is-radically-different-from- machine-learning-945a4a65da4d https://www.forbes.com/sites/bernardmarr/2016/12/08/what-is-the-difference-between-deep- learning-machine-learning-and-ai/#5b01dea326cf
  12. 12. www.hof.capital 12 What Role Does Data Science Play in AI? ▪ Data science is an interdisciplinary field about processes and systems to extract knowledge or insights from data in various forms, either structured or unstructured, which is a continuation of some related data analysis fields such as statistics, machine learning, data mining, and predictive analytics, similar to Knowledge Discovery in Databases (KDD). ▪ A Data Scientist specializing in ML uses code and machine learning algorithms to create all sorts of A.I., like prediction engines, image classifiers, etc. ▪ A Data Scientist usually spends a lot of time “data munging” = using code to clean, enrich, format, concatenate, etc., data to get it ready to use with ML algorithms ▪ Data Scientists can specialize in other fields like statistics, data-mining, etc. Source: https://en.wikipedia.org/wiki/Data_science
  13. 13. www.hof.capital 13 ▪ Autonomous vehicles ▪ X-ray analysis ▪ Surveillance. ▪ Chat Bots ▪ Voice interfaces: Alexa, Siri, etc. Deep Learning Neural Nets are generating extremely accurate results from very complex datasets in fields such as vision and communication Deep Neural Networks Are Leading the Way Computer Vision Natural Language Processing (Communication)
  14. 14. www.hof.capital 14 Two Challenges for Deep Learning ▪ Largely solvedComputing Power Large Scale Training Data ▪ Extremely large opportunity for companies that solve either of these challenges: ▪ Nvidia - GPUs for large scale deep learning networks ▪ Rigetti Computing - Quantum processor for deep learning ▪ Facebook, Google, Amazon, Twitter, Youtube, etc. – Largest-scale labeled datasets ▪ Not solved
  15. 15. www.hof.capital 15 Open Source AI ▪ Dramatically lowers the barriers to entry for Machine Learning ▪ Puts emphasis on proprietary datasets, since compute power and ML algorithms are being fully democratized ▪ H2O ▪ Tensor Flow (Google) ▪ Warp-CTC (Baidu) ▪ DSSTNE (Amazon) ▪ Parsey McParseface (Google) ▪ FAIR (Facebook AI Research) ▪ NLTK, Scikitlearn, etc. (python ML libraries)
  16. 16. www.hof.capital 16 A.I. as a Service ▪ Who will be the AWS of ML/AI? ▪ “A.I. as a Service” offerings don’t usually let the customer train the models on their own data; they’re more of a plug and play solution. These lower the barriers to Machine Learning, but for more general use cases. ▪ Any product that is using an A.I. as a Service must differentiate in another way other than “ML”. These are easy features to add but inherently will not differentiate. ▪ Watson (IBM) ▪ Google Cloud Platform – availability of cloud-based CPUs and GPUs at an affordable cost. ▪ Microsoft Cognitive Services ▪ Microsoft Azure Machine Learning Studio ▪ Api.ai (for bots)
  17. 17. www.hof.capital 17 Democratization of A.I. ▪ First it becomes possible, then it becomes so cheap that anyone can do it... and that's where it gets interesting. ▪ How a Japanese cucumber farmer is using deep learning and TensorFlow ▪ Very difficult to sort cucumbers by size, shape, color, texture & other attributes ▪ Required his grandparents years of expertise to provide the labeled training data that didn’t exist before ▪ Together can generate a ML computer vision algorithm that learns to classify cucumbers ▪ With projects like TensorFlow, you don’t need to understand the advanced mathematical models and optimization algorithms. You just download the library, train the model on your data, and create a ML classifier that can classify new data with very high level of accuracy
  18. 18. www.hof.capital 18 ▪ Computing power / cost ratio highest it’s ever been and only getting better ▪ Explosion of large scale, labeled datasets ▪ Facebook’s photo tagging = labeled data for facial recognition ▪ Google’s images / videos = labeled data for computer vision ▪ Gmail’s content, tags, subject lines = labeled data for text analysis ▪ Amazon’s reviews, Twitter’s tweets = labeled data for sentiment analysis ▪ Amazon’s Audible acquisition = labeled data for voice recognition (Alexa, etc.) ▪ More open data makes AI more applicable (e.g., EU payments directive (PSD2) ▪ Important advancements in ML algorithms ▪ A.I. R&D is now #1 priority of top tech firms: Google, Facebook, Baidu, Amazon… ▪ Google has said it went from Search first → mobile first → A.I. first Why now? More compute, more data, better algorithms, more attention
  19. 19. www.hof.capital 19 Many Opportunities to Build on New A.I. Infrastructure Layer ▪ This is how the advancements in healthcare computer vision for classifying cancer, etc., work; doctors provided the labeled training data for the computer to learn from Scaling domain expertise by applying specialized knowledge to create labeled training data Repurposing existing datasets with new labeling focus ▪ CB Insights Building software that allows large scale labeling of domain specific data ▪ Make it extremely easy for experts or community to generate labeled data ▪ Google image search, blog content tagging, Youtube upload tagging, etc. Products that help build datasets and get them ready for machine learning ▪ Normalize, clean, concat, verify, de-dupe, merge etc...
  20. 20. www.hof.capital 20 ▪ Quantitative, tech driven investment makes sense, but structurally is very difficult. ▪ Early-stage companies are often operating in frontier industries where conventional analytic frameworks may be misleading. ▪ Join PEVCTech.com for more on this topic. PE/VC Investors Are In Most Cases Decades Behind Our Public Markets Brethren In Use of Technology
  21. 21. www.hof.capital 21 The Median Private Equity Investor Reviews 80 Companies Before Investing in 1; Median VC reviews 87 Investment Search Process (# Companies) Acquirer/ Investor Angel groups using Gust [i] ff Venture Capital Blackford Capital [ii] TA Associates [iii] Highland Capital [iv] AlliedSignal [v] Investing focus startups startups/early- stage lower-middle- market growth companies growth companies synergistic businesses Profiled initially 20,850 >3,000 1,394 NA NA 550 Target Selected 1,315 ~600 (meeting) 261 8,000 10,000 [vi] 190 Met/spoke 1,047 ~300 (initial dd) 20 750 1,000 NA Negotiated with NA ~20 14 NA NA 28 Detailed due diligence 577 ~20 20 NA NA 17 Acquired/ invested 541 12-15 3 10 to 12 10-20 10 Deals as % targeted 33.5% (2.1% of subs) 0.2% 1.1% 0.1%-0.2% 0.1%-0.2% 5.3% Data detailed in "Best Practices in Deal Origination for Private Equity and Venture Capital Funds" , David Teten with Chris Farmer, Journal of Private Equity, Winter 2010. [i] Available at http://angelsoft.net/a/venture-valuation , as of twelve months ending March 17, 2010. [ii] As of 2009. [iii] Rudd, Amber. “A Kind of Magic.” Corporate Financier, October 2006. [iv] Economist, Global Heroes: A Report on Entrepreneurship, March 14, 2009., p. 9. “Targets selected” figure indicates number of business plans received, as of 2008. [v] Bruner, Robert F., Applied Mergers and Acquisitions. New York: John Wiley & Sons, 2004., p. 183. As of 1996-97
  22. 22. www.hof.capital 22 ▪ Among those focused on early-stage companies are Bright*Sun, CB Insights, Crunchbase, Core 2 Group, DataFox, FuelUp, Funderbeam, Mattermark, Megabuyte, Quid, Tracxn, Unomy.com, and VC Experts. ▪ Similar companies more focused on later-stage investors include Avention, Bureau Van Dijk, Dow Jones, FactSet, Genesis, S&P Capital IQ, Dun & Bradstreet, DueDil, Core 2 Group, Hoovers, InsideView, LexisNexis, Pitchbook, Preqin, PrivCo, Thomson Reuters, and Unquote. ▪ A number of analysts target the customers of technology companies, e.g., Gartner and 451 Research. A Host of Startups Want to Be the “Bloomberg of Private Companies”
  23. 23. www.hof.capital 23 2017 AI Trends in Fintech Prepared by: Yordanka Ilieva* Source: https://www.linkedin.com/pulse/ai-fintech-7-trends-2017-alex-housley https://thefinanser.com/2017/01/11-fintech-trends-need-follow.html/ Based on Public & Non-confidential Sources Open Source API Platforms Open Data Data Security & Blockchain Decision Making Collaboration Chatbots Workflow  Open-source core machine learning platforms for high-end compute tasks  Access to more data with customer authorization will enable better models, apps, and services  Investment in securing data and transactions with homomorphic encryption will speed innovation  Deep learning and automated AI driven technology will enhance decision making  Banks and fintech start-ups will collaborate on innovation labs (Deutsche Bank just opened one in NYC)  A.I. driven personalized customer service will save time and drive operating efficiency  A.I. will integrate with user workflow and ensure faster and better communication, research, and data analytics
  24. 24. www.hof.capital 24 Signals for Potential A.I. Advantage In Startup Access to proprietary large scale data sets Unfair advantage in creating new data sets Unique focus on existing data to create new data sets Unique way of handling un-trained / new queries, e.g., CustomerService.ai* Computing Power upgrade, e.g., Quantum processors + Deep Learning * ffVC portfolio company Source: https://medium.com/startup-grind/how-investors-think-about-early-stage- ai-startups-2a34850a3cff
  25. 25. www.hof.capital 25 A.I. Investment Diligence Checklist ▪ Should have unfair advantage in either: ▪ ML tech stack ▪ Proprietary algorithms ▪ Better compute output ▪ Datasets ▪ Will be using open source project or ML as a Service (Google Cloud platform, aws etc…) ▪ Ex: Japanese cucumber farmer ▪ Generating new labeled data ▪ Ex: Youtube, Facebook ▪ Right ML algorithms optimized for: ▪ Desired output (classification, anomaly detection, clustering etc…) ▪ Type & size dataset ▪ Experienced team ▪ Extremely complex domain, top talent will generate most accurate modelsSource: https://medium.com/mmc-writes/the-mmc-ventures-ai-investment-framework-17-success-factors- for-the-age-of-ai-671722e7ecd2 https://medium.com/startup-grind/how-investors-think-about-early-stage-ai-startups-2a34850a3cff https://techcrunch.com/2015/12/25/investing-in-artificial-intelligence/
  26. 26. www.hof.capital 26 Sources of Competitive Advantage for A.I. Firms Prepared by: Yordanka Ilieva* Source: https://thenextweb.com/artificial-intelligence/2017/03/07/ai-will-determine-future- fintech/#.tnw_OzNpfreT Based on Public & Non-confidential Sources Patents Network Effects Specialization Economies of Scale Security Superior Product & UX Partnerships  Create strong barriers to entry, hard to copy by existing competitors  A massive user base for professional social platforms  Focus on regional and local markets as well as other niches  Same licensed content gets distributed to many users  Privacy and credibility foster user acquisition and retention  Products that are simple and easy to use  Collaboration between AI financial technology and financial services companies
  27. 27. www.hof.capital 27 AI is Disrupting the Fintech Sector in 18 Categories General Purpose/ Predictive Analytics Market Research & Sentiment Analysis AI Powered Content & Data Solutions Quantitative Trading Search EngineInvesting Investing Management General Purpose/ Predictive Market Research & Sentiment Enterprise Behavioral Pairing AI Powered Content & Data Solutions Search Engine Quant trading Blockchain Fraud Detection Regulatory Compliance Debt Collection Threat Detection and Response Underwriting / Credit Scoring Personal Financial Management Personal Banking A.I. Assistants/ Bots Reporting Prepared by:Yordanka Ilieva* Source: https://www.cbinsights.com/blog/artificial-intelligence-fintech-market-map-company-list/ https://www.cbinsights.com/blog/ai-fintech-startup-market-map/
  28. 28. www.hof.capital 28 AI in Finance: Investing ▪ Funds: D.E. Shaw, Two Sigma, Renaissance, WorldQuant, Data Capital Management, many smaller players ▪ Reasons to use AI: ▪ Amount of data far exceeds human processing power ▪ Speed of data transfer exceeds human processing ▪ Concerns: ▪ Downside risk is material, e.g., Knight Capital losing $10m/minute for 45 minutes ▪ “Reflexivity” ▪ Machine bias, e.g., redlining
  29. 29. www.hof.capital 29 Management ▪ Bridgewater https://flic.kr/p/cFaUR7
  30. 30. www.hof.capital 30 General Purpose/Predictive ▪ AlphaVertex* ▪ Ayasdi ▪ Context Relevant ▪ Digital Reasoning ▪ Kensho ▪ Cortial.io ▪ Numenta ▪ Turi ▪ DataRobot ▪ Nervana Systems ▪ H2O * ffVC portfolio company
  31. 31. www.hof.capital 31 Market Research & Sentiment Analysis ▪ Acuity Trading ▪ Dataminr ▪ Earnest Research* ▪ Indico ▪ Lucena Quantitative Analysis ▪ Numerai * ffVC portfolio company
  32. 32. www.hof.capital 32 Enterprise Behavioral Pairing ▪ Afiniti*
  33. 33. www.hof.capital 33 AI Powered Content & Data Solutions ▪ Selerity*
  34. 34. www.hof.capital 34 Search Engine
  35. 35. www.hof.capital 35 Quantitative Trading ▪ Clone Algo ▪ Alpaca ▪ Sentient Technologies ▪ Walnut Algorithms
  36. 36. www.hof.capital 36 Blockchain ▪ Euklid ▪ Skry/ Bloq*
  37. 37. www.hof.capital 37 Fraud Detection ▪ Feedzai ▪ Biocatch ▪ Socure* * ffVC portfolio company
  38. 38. www.hof.capital 38 Regulatory Compliance ▪ DocAuthority* ▪ IpSoft * ffVC portfolio company
  39. 39. www.hof.capital 39 Debt Collection ▪ Collect.ai ▪ TrueAccord
  40. 40. www.hof.capital 40 ▪ Greathorn* Threat Detection and Response * ffVC portfolio company
  41. 41. www.hof.capital 41 Underwriting / Credit Scoring ▪ Applied Data Finance ▪ Aire.io ▪ CreamFinance ▪ CreditVidya ▪ TypeScore ▪ WeCash ▪ ZestFinance
  42. 42. www.hof.capital 42 Personal Financial Management ▪ Clarity* ▪ Robo-advisors * ffVC portfolio company
  43. 43. www.hof.capital 43 Personal Banking ▪ Earnix ▪ SBDA Group ▪ Personetics
  44. 44. www.hof.capital 44 AI Assistants/Bots ▪ Cleo ▪ FinGenius ▪ Kasisto ▪ HelloVeraAI* ▪ Trim ▪ Penny ▪ Insurify ▪ SURE. * ffVC portfolio company
  45. 45. www.hof.capital 45 Reporting
  46. 46. www.hof.capital 46 Any questions ? slides at teten.com/ai HOF.capital @HOFCapital teten.com @dteten
  47. 47. www.hof.capital 47 Appendix
  48. 48. www.hof.capital 48 Select AI Investments (ff Venture Capital companies)
  49. 49. www.hof.capital 49 Select A.I. Companies In Fintech (Many of these AI firms cover non-finance sectors as well) Prepared by: Yordanka Ilieva* Source: Company Website, Crunchbase, CBI Insights, Google Based on Public & Non-confidential Sources
  50. 50. www.hof.capital 50 General /Predictive Analytics: www.ayasdi.com ▪ Founded in 2008, and headquartered in Menlo Park, Ayasdi is an enterprise artificial intelligence company, that provides big data analytics machine learning to healthcare, financial services and government organizations ▪ Extensible technology with open API, incorporates many algorithms, additional algorithms can be added ▪ Can be deployed in a cloud infrastructure including on Amazon Web Services ▪ Subscription revenue model for business users, data scientists and app developers, IT and ops teams ▪ 150 employees, $10M revenue (Owler) MANAGEMENT & BOARDHIGHLIGHTS Source: Company Website, Crunchbase, CBI Insights, Google. INVESTORS & FUNDING ▪ Bob Griffin, CEO - IBM, CEO of Knowledge Computing Corporation (KCC), Homeland Defense ▪ Gurjeet Singh, Chairman & Co-founder - Google and Texas Instruments, Stanford PhD ▪ Gunnar Carlsson, Board, President & Co-founder - Harvard and Stanford mathematics ▪ Steve Harrick, Board - IVP, Netscape, MS, Yale, HBS ▪ Todd Rulon-Miller, Board - Next, Netscape, IBM ▪ Karen Richardson, Board - BT, E.piphany, Netscape, Collabra , Lotus, Stanford Tech venture Program ▪ Ann Miura-Ko, Board - FLOODGATE, Stanford PhD ▪ $106.35M in 7 Rounds from 8 Investors ▪ Most recent - $55M Series C on March 25, 2015 Michael Ovitz SELECTED CLIENTS & PARTNERS Based on Public & Non-confidential Sources Prepared by: Yordanka Ilieva*
  51. 51. www.hof.capital 51 General /Predictive Analytics: www.kensho.com ▪ Founded in 2013 and headquartered in Cambridge, Massachussets, Kensho Kensho combines natural language search, graphical user interfaces, and secure cloud computing to provide analytics to government and commercial institutions worldwide, addressing speed, scale and automation ▪ Technologies ▪ Analytics software: augmenting decision-making ▪ Applied mind: hidden linkages and systematic behaviors ▪ KOTO – national security ▪ Named one of the most innovative private technology companies worldwide by the World Economic Forum ▪ 51-100 employees, $7M revenue (Datafox) MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Daniel Nadler, Co-founder & CEO - Harvard PhD, United States Federal Reserve, Stanford, Digital Edge ▪ Peter Kruskall, Co-founder - Google, Kayak, MIT ▪ Matt Taylor, CTO - Tumblr, MongoDB ▪ Adam Broun, COO - Launchpad VC, Pragma, NYC Investment Fund, Credit Suisse, Deloitte, Oxford ▪ Andrei Brasoveanu, Advisor - Accel, Knight Capital ▪ Jeffrey Shames, Advisor – MIT, Morgan Stanley ▪ Tony Pasquariello & Rana Yared, Board – Goldman ▪ Blake Byers, Board – Google Ventures, Stanford, MS ▪ $67M in 3 Rounds from 16 Investors ▪ Most recent - $50M Series B led by S&P on February 28, 2017 ($500M pre-money) SELECTED CLIENTS & PARTNERS Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  52. 52. www.hof.capital 52 General /Predictive Analytics: www.digitalreasoning.com ▪ Founded in 2000, and headquartered in Nashville, Digital Reasoning provides AI cognitive computing technology to financial institutions, healthcare and government organizations ▪ Uses machine learning technology to screen e-mail, instant messages and phone conversations for signs of unlawful activity ▪ Can be installed in an in-house datacenter or cloud ▪ Acquired Shareable Ink in 2016 (healthcare enterprise cloud computing) ▪ 70 employees in Nashville, DC, NYC, and London ▪ $20M revenue (Owler) MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Tim Estes, Founder & President - UvA ▪ Brett Jackson, CEO - Logi, Digital Harbor, Axent ▪ Prakash Ramachandran, CFO - Stanford GSB, Polyera, Nordic Wind Power, Novariant, Sonicity ▪ John Brennan, Board - Silver Lake, Adobe Systems, HP, Accenture, Yale, Berkley ▪ Cristóbal Conde, Board - TPG, SunGard, Yale ▪ Rana Yared, Board - GS, Tradeweb, Zoomdata, LSE ▪ Jodi Hubler, Board - Lemhi Ventures, Alcoa, Definity ▪ Al Tarasiuk, Board - White House and Congress, DB ▪ $73.96M in 6 Rounds from 7 Investors ▪ Most recent - $40M Series D in May 2016 SELECTED CLIENTS & PARTNERS Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  53. 53. www.hof.capital 53 General /Predictive Analytics: www.cortical.io ▪ Founded in 2011, and located in Vienna and San Francisco , Cortical.io offers NLU solutions based on brain-inspired Semantic Folding for Big Text Data ▪ Algorithm does meaning-based filtering of unstructured text data, real-time topic detection in social media or semantic search over millions of documents across languages ▪ The user can locate documents, find web content, match people, identify products, monitor competition, track customer satisfaction, discover new knowledge ▪ 11-50 employees, $1M revenue (Owler) MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Francisco Webber, Co-founder - Matrixware ▪ Daniel Schreiber, Co-founder - Matrixware ▪ Hans-Peter Riecken, Vice President, Sales & Business Development - Berkley, Silicon Valley ▪ Erik Graf, Head of Research – PhD, IBM, HP ▪ $6.18M in 4 Rounds from 4 Investors ▪ Most Recent - $1.2M, March 15, 2016 / Undisclosed SELECTED CLIENTS & PARTNERS REVENTON B.V Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  54. 54. www.hof.capital 54 General /Predictive Analytics: www.datarobot.com ▪ Founded in 2012, and headquartered in Boston, DataRobot enables users to build machine learning predictive models in the cloud or at an enterprise ▪ The technology addresses the critical shortage of data scientists by changing the speed and economics of predictive analytics ▪ It searches through millions of possible combinations of algorithms, pre-processing steps, features, transformations and tuning parameters to deliver the best models for your dataset and prediction target ▪ The company serves clients in insurance, banking, healthcare, fintech, energy, public sectors and others ▪ 101-250 employees, $4.9M revenue (Owler) MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Jeremy Achin, CEO & Co-founder, Board - Travelers ▪ Tom DeGodoy, CTO & Co-founder, Board - Travelers ▪ Chris Devaney, COO – Cludera, PGA and BISG ▪ Chris Lynch, Board - Accomplice VC, Atlas Venture ▪ Tony Florence, Board – NEA, Morgan Stanley ▪ Jit Saxena, Board – Netezza, Applix ▪ Kevin Dick, Advisor - Right Side Capital ▪ Brad Gillespie, Observer - General Partner @ IA ▪ Igor Taber, Advisor - Intel Capital ▪ $111.42M in 5 Rounds from 10 Investors ▪ Most Recent - $54M Series C on March 23, 2017 SELECTED CLIENTS & PARTNERS Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  55. 55. www.hof.capital 55 General /Predictive Analytics: www.contextrelevant.com ▪ Founded in 2012, and headquartered in Seattle, Context Relevant provides real-time analytics applications like Customer Behavior Analysis, Sales Intelligence and Pricing Strategy to enable businesses to maximize the value of all data assets ▪ The information gathered through the technology helps clients predict activity based on observed trends ▪ Platform uses machine learning to deploy enterprise scale, reacting automatically to trends and changes that occur in the underlying environment, updating dynamically, and improving over time ▪ 50 employees, $8.1M revenue (Owler) MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Joe Polverari, CEO, Board - Yodlee, Pandesic, InsWeb Corporation, Stanford GSB ▪ Stephen Purpura, Co-Founder, Former CEO & CTO - SkyEye.ai, PRDCH, Cornell, Harvard ▪ Chris Metcalfe, Co-founder - Atlas Venture, Isilon, Korvata, MIT, Penn ▪ Jim Kim, Board - Formation 8, Khosla, GE, CBS MBA ▪ Bina Kalola, Board - BofA, NetProphets, Columbia ▪ Tim Porter, Board - Madrona, Microsoft, Stanford ▪ Shirish Sathaye, Board - Formation 8, Khosla ▪ Rana Yared, Board - Goldman Sachs, LSE, Wharton ▪ $44.3M in 5 Rounds from 10 Investors ▪ Most Recent - $13.5M Series B, September 25, 2014 SELECTED CLIENTS & PARTNERS Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  56. 56. www.hof.capital 56 General /Predictive Analytics: www.numenta.com ▪ Founded in 2005, and headquartered in Redwood, CA, Numenta has developed a machine intelligence technology, based on principles of the neocortex (how the brain works) ▪ Research and software are into open source and works with selected application partners ▪ The firm licenses its technology and IP ▪ Applications: monitoring stock performance, detecting unusual human behavior, finding patterns in geospatial data, monitoring IT infrastructure and understanding natural language ▪ Numenta invested $1.2M in Cortical.io in March, 2016 ▪ 15-20 employees, $4.4M (Owler) MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Donna Dubinsky, CEO & Co-Founder, Board - Palm, Handspring, Apple, Yale, HBS ▪ Jeff Hawkins, Co-founder, Board - Palm, Handspring, Cornell, Redwood Neuroscience ▪ Dileep George, Co-founder (left) - Vicarious, Stanford, PhD ▪ Ed Colligan, Board – Palm, Radius, Handspring ▪ Mike Farmwald, Board - Skymoon Venture, FTL, Stanford PhD ▪ Harry Saal, Board - Retrotope, Nestar, Network General Corp, Smart Valley, Columbia ▪ $23.6M funding in 2 rounds ▪ Most Recent - $6M undisclosed in February 2013 SELECTED CLIENTS & PARTNERS ED COLLIGAN Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  57. 57. www.hof.capital 57 General /Predictive Analytics: www.h2o.ai ▪ Founded in 2011, and headquartered in Mountain View, CA, H2O provides an open source machine learning platform for enterprises ▪ Using the platform, 80,000 data scientists and developers import algorithms into their applications ▪ Technology is used for predictive maintenance, operational intelligence, security, fraud, auditing, churn, credit scoring, user based insurance, predicting sepsis, ICU and monitoring in over 9,000 organizations. (primarily banking, insurance and healthcare) ▪ 11-50 employees, 2017 management revenue forecast of $15M (TechCrunch) MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ SriSatish Ambati, Board, Co-founder & CEO – DataStax, Azul Systems, RightOrder, Stanford ▪ Cliff Click, Co-founder (left) – Neurensic ▪ Sanjay Mehrotra, Chairman - SanDisk ▪ Jishnu Bhattacharjee, Board – Nexus Venture ▪ Ash Bharadwaj, Board - Flextronics, Aricent ▪ Michael Marks, Board - Riverwood, Flextronics ▪ Anand Babu Periasamy, Board - Gluster (RedHat) ▪ Tom Kraljevic, Board & VP Customer Engineering – Luminix, Azul Systems, Muchigan University ▪ $33.6M in 4 Rounds from 10 Investors ▪ Most Recent - $20M Series B on November 9, 2015 SELECTED CLIENTS & PARTNERS Paxion Capital Partners Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  58. 58. www.hof.capital 58 Market Research & Sentiment Analysis: www.indico.io ▪ Founded in 2013, and headquartered in Boston, Indico provides productivity tools and APIs that turn raw text and image data into human insight ▪ Indico provides productivity tools for enterprise data by automating the workflow trough machine learning ▪ Use cases in marketing (brand equity evaluation, persona building, social media and customer analysis), finance (faster research by topic), media (content personalization), image filtering (find high quality logos and images), retail (product recommendation, data analysis), consulting (text and image analysis), legal (data mining for legislation risk), PR (influence analysis and content idea generation) ▪ 14 employees, $2M revenue (Owler) MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Slater Victoroff, CEO - Olin Foundry, Technotes, Olin ▪ Diana Yuan, COO & Co-founder - Aura, Babson ▪ Alec Radford, Head of Research - Olin ▪ Madison May, CTO - Fetchnotes, Olin ▪ Paul Sagan, Advisor & Investor - General Catalyst ▪ Yuchun Lee, Advisor - General Catalyst, Allego, MIT ▪ Vivjan Myrto, Advisor & Investor - Hyperlane VC ▪ Matt Malloy, Investor - @ edX, Zipcar, Trellix, Lotus ▪ Ty Danco, Investor & Advisor - Tecstar, BuysideFX ▪ Simeon Simeonov, Investor & Advisor – Swoop ▪ $4.38M in 4 Rounds from 16 Investors ▪ Most Recent - $1.2M Seed on November 21, 2016 SELECTED CLIENTS & PARTNERS Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  59. 59. www.hof.capital 59 Market Research & Sentiment Analysis: www.acuitytrading.com ▪ Founded in 2013, and headquartered in London, Acuity is a news analytics firm that offers financial market visualization services for retail organizations ▪ Uses Machine Learning and NLP technology to analyse news to quantify the mood of the market towards any given stock, currency or index ▪ Acuity Trading’s product portfolio consists of: ▪ Plug and play widgets - access sentiment data ▪ Platform integration - integrate sentiment data onto the platform of a user’s choice ▪ Bespoke development - outsource the development of sentiment data platforms ▪ 1-10 employees, <$1M revenue (Owler) MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Andrew Lane, CEO - Dow Jones, ▪ Nikki Carpenter, CMO - Dow Jones ▪ David Adair, Board - Arthur Andersen, HSBC, Jenson Solutions and Jenson Funding Partners ▪ Most recent – undisclosed round on March 5, 2015 at $1M pre-money valuation SELECTED CLIENTS & PARTNERS Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  60. 60. www.hof.capital 60 Market Research & Sentiment Analysis: www.lucenaresearch.com ▪ Founded in 2011, and headquartered in Atlanta, Lucena Research offers decision support technology services for investment professionals, including hedge funds and wealth advisors ▪ Lucena delivers quantitative analysis and machine learning that enable customers to exploit market opportunities and to reduce risk in their portfolios ▪ Machine learning algorithms focused on investment applications, equity trend forecasting, event studies, portfolio optimization, hedging tactics ▪ Products – Research (quant professionals for hire), QuantDesk (recommendation engine), Strategies (model-driven approach for seeking alpha) ▪ 11-50 employees, $41.M revenue (Owler) MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Erez Katz, Co-founder, CEO, Board - Objectware, Bridgeline ▪ Tucker Balchz, Co-founder, CTO, Board - Georgia Tech PhD ▪ Bruce Fike, Board - Linnane, Akron ▪ Jeff Falke, Board ▪ Sigmund Mosley Jr. - Mosley Ventures, Flashpoint ▪ $2.93M in 4 Rounds ▪ Most Recent - $650k Series A on September 4, 2015 SELECTED CLIENTS & PARTNERS Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  61. 61. www.hof.capital 61 Market Research & Sentiment Analysis: www.numer.ai MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Richard Craib, Founder - Cornell, ▪ Alex Mingoia, VP Engineering - BuildingConnected, Bloodhound, Electric Crayon ▪ Ricardo Pedraza, CFO - KJAYA Medical, Renascions Corp, App-ify, Olson, Fortius, Sony, Booth MBA ▪ Krishna Kesavan, Chief Data Scientist - Apigee, C2 Capital Management, Kohl, Marvell, Cisco, Ericsson ▪ Alex Pack, Advisor - AngelList, Arbor Ventures, Microsoft, McGraw-Hill, US Senate, Wesleyan ▪ Andy Weissman, Board - Union Square Ventures, Soundview Ventures, Georgetown ▪ $7.5M in 2 Rounds from 11 Investors ▪ Most Recent - $6M Series A on December 12, 2016 SELECTED CLIENTS & PARTNERS ▪ Founded in 2015, and headquartered in San Francisco, Numerai is a crowdsourced hedge fund for machine learning experts, which provides machine learning solutions to data scientists ▪ Numerai’s platform of 7,500 developers, which provides synthesis of different, uncorrelated models with different characteristics ▪ Data scientists compete on the leaderboard, but models are ranked and rewarded based on their contribution to the meta model ▪ Encryption and anonymity for data scientists, who receive payments in Bitcoin ▪ 1-10 employees, $1M (Owler) Peter Diamandis (Singularity University) Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  62. 62. www.hof.capital 62 Market Research & Sentiment Analysis: www.dataminr.com MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Ted Bailey, Founder & CEO, Board - Yale, World Economic Forum, United Nations ▪ Jeff Kinsey, Co-founder, CTO - Market & Research Systems, Yale ▪ Sam Hendel, Co-founder (left) - Levin Capital Strategies, Satellite Asset Management, UBS, Yale ▪ Julio Pekarovic, CFO - Quantcast, Google, INSEAD ▪ Stephen Dow, Board - Dow Capital, Sevin Rosen Funds, Stanford ▪ Nick Beim, Board - Venrock, Matrix, McKinsey, Goldman, Stanford, Oxford ▪ $183.44M in 5 Rounds from 19 Investors ▪ Recent: Secondary, on Sept. 30, 2015 / Undisclosed SELECTED CLIENTS & PARTNERS ▪ Founded in 2009, and headquartered in NYC, Dataminr extracts value from social media for both buy-side and sell-side financial firms, as well as municipal and federal clients in the government sector ▪ Using proprietary algorithms, Dataminr instantly analyzes public tweets and other publicly available data to deliver the earliest alerts for breaking news and real-world events ▪ Services include custom signal creation, integration of internal proprietary data sets, historical back-testing, and accommodation of all compliance and site- specific deployment needs ▪ 150 employees, $11.1M Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  63. 63. www.hof.capital 63 Enterprise Behavioral Pairing: www.afiniti.com ▪ Founded in 2009, and headquartered in Washington, DC, Afiniti enhances human interactions in enterprises by pairing customers with employees based on predicted interpersonal behavior ▪ Using big data analytics, Afiniti analyzes customer data from third parties and internal client data to provide a view of individual customers and agents. ▪ Then Afniti uses artificial intelligence algorithms to determine the optimal fit between callers and agents ▪ Improving interactions over the phone, live chat, email, online video and in-person applications ▪ Pay-for-performance business model based on the incremental revenues and cost savings delievered ▪ . 500-100 employees MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Zia Chishti, Founder, CEO & Chairman - Align Tech, Morgan Stanley, McKinsey, Stanford GSB ▪ Phil Davis, CFO - Goldman Sachs, McKinsey, MIT ▪ Luiz de Toledo, Business Development - Fannie Mae, McKinsey, Morgan Stanley, Stanford GSB, NYU ▪ Ivan Seidenberg, Board - Verizon, BlackRock, Perella Weinberg, New York-Presbyterian Hospital, Pace ▪ John Sununu, Board - Time Warner Cable, MIT, HBS ▪ José Maria Aznar, Board - Prime Minister Spain, News Corporation, University of Madrid ▪ Bob Sternfels, Board – McKinsey, Stanford, Oxford ▪ $122.2M in 4 Rounds ▪ Most Recent - $80M Series D on April 7, 2017 SELECTED CLIENTS & PARTNERS Other Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  64. 64. www.hof.capital 64 A.I. Powered Content & Data Solutions: www.seleritycorp.com ▪ Founded in 2008, and headquartered in New York, Selerity is a financial technology company using proprietary A.I. to deliver content and data solutions for enterprise applications, designed to automate inefficient workflows in finance ▪ Enterprise messaging platforms, publishers, research & banking portals, and e-brokers can incorporate 3rd party and proprietary content personalized to their users’ workflow and interests ▪ Users are asset management firms, banks, media and technology companies serving retail investors ▪ Selerity Context offers search and personalization solutions, while Event data powers trading, risk, and investment models ▪ 11-50 employees MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Ryan Terpstra, Founder & CEO - Thomson Reuters, World Economic Forum ▪ Andrew Brook, CTO - Morgan Stanley, Bank of America, University of Illinois at Urbana ▪ Brendan Gilmartin, EVP, BD - Thomson Reuters ▪ Ashfaq Rahman, Chief Scientist - Microsoft, Penn ▪ Matthew Burkley, Board - Genscape, Thomson Reuters, ZEFER, Harvard Business School ▪ Jeff Penney, Board - McKinsey, JP Morgan, Princeton ▪ Doug Atkin, Board - Guggenheim Partners ▪ Donal Smith, Board - Credit Benchmark, Thomson ▪ $12.2M in 3 Rounds ▪ Most Recent - $4.2M on March 8, 2016 SELECTED CLIENTS & PARTNERS Mark Faulkner Roger Ehrenberg (IA Ventures, Columbia Business School) Other Other Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  65. 65. www.hof.capital 65 Search Engine: www.alpha-sense.com MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Jack Kokko, Co-founder, CEO - Silecs, Morgan Stanley, Wharton ▪ Raj Neervannan, Co-founder, CTO - Wharton ▪ Bob Magri, Chief Content Officer - Capital IQ, FactSet, Fidelity ▪ Noah Yago, Board - Traingle Peak Ventures ▪ Tom Glocer, Advisor - Thomson Reuters ▪ Lauri Karttunen, Advisor - NLP Professor, Stanford ▪ Richard Leggit, Advisor - Frontier Strategy, Goldman ▪ David Hill, CFA, Advisor - FactSet ▪ Risto Siilasmaa, Advisor - Nokia ▪ $35M in 2 Rounds from 5 Investors ▪ Most Recent - $33M Venture on March 6, 2016 SELECTED CLIENTS & PARTNERS ▪ Founded in 2010, and headquartered in San Francisco, AlphaSense is a search engine for financial professionals (hedge funds and banking clients, expanding into PE and VC soon) ▪ Using linguistic search and natural language processing , AlphaSense enables users to search and analyze key data points, trends and themes on any 1 company or across 35,000+ global companies ▪ Technology finds information from filings, news, broker research, and company websites, it indexes text and uses synonym recognition to expand keyword searches to deliver structured insight and annotated search with unprecedented speed ▪ 51-100 employees, $3.6M revenue (Datafox) Quantum Strategic Partners Tom Glocer Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  66. 66. www.hof.capital 66 Quantitative Trading: www.sentient.ai/ MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Babak Hodjat, Co-Founder & CEO - Sybase iAnywhere, Dejima ▪ Antoine Blondeau – Co-founder & Co-Chairman - Dejima, Zi Corp, Paris Graduate School Mgmt ▪ Gurmeet Lamba, COO&GM – UCExpert, Clarus System, Stanford GSB ▪ Adam Cheyer, Co-founder, Board – Viv, Change.org, SRI, CALO ▪ Fabrice Finsher, CFO and Advisor – Bain, INSEAD ▪ Zoe Crus, Advisor - Morgan Stanley, HBS ▪ Mary Meeker, Advisor – Kleiner Perkins, MS ▪ $135.78M in 3 Rounds from 5 Investors ▪ Most Recent - $103.5M Series C, Nov. 24, 2014 SELECTED CLIENTS & PARTNERS ▪ Founded in 2007, and headquartered in San Franciso, Sentient has created the largest intelligent platform in the world to serve investment, medical diagnosis and ecommerce clients ▪ Deep learning technology can understand human intent using visual and other non-verbal interactions, resulting in the rapid and relevant delivery of content ▪ Platform is built based on: ▪ Evolutionary intelligence – AI using principals of bio evolution to learn, adapt and react ▪ Deep learning – intent-powered AI ▪ Scale – compute capacity ▪ 70 Employees Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  67. 67. www.hof.capital 67 Quantitative Trading: www.clonealgo.us MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Niraj Goel, Founder - Dragon Holdings AG ▪ Dhiraj Sawhney, VP Sales - HSBC ▪ Yana Slatina, CEO ▪ Anna Becker, Audit Committee, CTO ▪ Pily Wong, Audit Committee, COO – Microsoft ▪ Raised $40M in Series A in May,2014 ▪ Intends to list on NASDAQ and is currently raising US$ 50m for Round B, as pre-IPO round SELECTED CLIENTS & PARTNERS ▪ Founded in 2010, and headquartered in Las Vegas, with operations in Singapore, Clone Algoo develops artificial intelligence trading systems for financial markets using time tested algorithms combined with timing technology and risk management systems ▪ Transaction Based Revenue Model, compared to the traditional Advertising Based Revenue Model ▪ Brands: Clone Algo DIY, Clone Algo App, Clone Algo PRO, Algo Shield Insurance and Algo TV ▪ 4 major businesses - financial technology, algorithmic technology for Insurance, algorithmic technology for media services ▪ 500-1,000 employees PrivatePrivate Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  68. 68. www.hof.capital 68 Quantitative Trading: www.alpaca.ai MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Yoshi Yokokawa, CEO & Co-founder - Kyocera, Lehman, Nomura ▪ Hitoshi Harada, CTO & Co-founder - Pivotal, PostgreSQL, Greenplum, FORCIA ▪ Yuki Hayashi, Chief Engineer & Co-Founder - Nokia, Microsoft, Nintendo ▪ Morifumi Yotsumoto, Japan Head, CFO - Lehman, Barclays, Sojitsu ▪ Luke Lonergan, Advisor - Greenplum ▪ Matt Luckett, Advisor - Alba, Soundview, Gartner ▪ Dr. Yasushi Yagi, Advisor - MIRU Japan ▪ $2.8M in 3 Rounds from 13 Investors ▪ Most Recent - $1.75M Venture on January 24, 2017 SELECTED CLIENTS & PARTNERS ▪ Founded in 2015, and headquartered in San Mateo, CA, Alpaca is a venture backed Fintech startup that builds Database and AI technologies for financial trading, and a company behind: ▪ AlpacaAlgo (algo.alpaca.ai) – sets up trading algorithm in seconds and automates ideas ▪ AlpacaScan (scan.alpaca.ai) - finds trading opportunities based on past winning results ▪ Brings scientific solutions to retail traders through an optimized time-series database called “MarketStore, which provides similar speed scores to the institutional level offering but in a much more scalable way ▪ 11-50 employees, <$1M revenue Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  69. 69. www.hof.capital 69 Quantitative Trading: www.walnutalgorithms.com MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Guillaume Vidal, CEO - Keyhaven, KPMG ▪ Kevin Lourd, COO - Bain, E&Y ▪ Basile Mayeur, Chief Scientist - Inria, EGGERS ▪ Damien Mourot, CTO - Misys, Sagem, POPFAX ▪ Pierre Sermanet, Advisor – NYU PhD ▪ John Ricciardi, Advisor- Kestrel, Alliance Bernstein ▪ Francois Orain, Advisor - BCG ▪ Joe Concannon, Advisor - Novacies Capital ▪ Paolo Scarani, Advisor - BNP Paribas ▪ Rob Wirszycz, Advisor - EDS/HP ▪ $446.33k in 1 Round from 2 Investors ▪ Most Recent - $446.33k Seed on June 1, 2016 SELECTED CLIENTS & PARTNERS ▪ Founded in 2015, and headquartered in Paris, Walnut Algorithms is a technology firm focused on applying data science and machine learning research to the financial markets ▪ Use machine learning techniques and financial expertise to generate absolute return investment strategies, designed to identify patterns in the financial markets ▪ Trading models able to learn and improve, while self- adapting to changing market conditions ▪ Walnut Algorithms will start managing third party assets from 2017 ▪ 11-50 employees Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  70. 70. www.hof.capital 70 Blockchain: www.bloq.com MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Jeff Garzik, Co-founder - Dunvegan Space, BitPay, exMulti, Red Hat, Georgia Institute of Technology ▪ Matthew Roszak, Co-founder - Tally, Chamber of Digital Commerce, Bitcoin, Blockchain Capital ▪ Gavin Andresen, Advisor - MIT Digital Currency Initiative, Bitcoin Foundation ▪ Flip Filipowski, Advisor - Tally Capital ▪ William Mougayar, Advisor - Virtual Capital , Start- up Management ▪ Jim Newsome, Advisor - Delta Strategy ▪ Nick Szabo, Advisor - Access ▪ Bloq - $250K raised in seed ▪ Skry - $1.1M in 1 Round from 1 Investor SELECTED CLIENTS & PARTNERS ▪ Founded in 2015, and headquartered in Chicago, with offices in Atlanta, Washington, DC and Shanghai, Bloq provides blockchain technology to enterprises ▪ Software platform allows companies to build blockchain-enabled ecosystems, backed by enterprise-grade service and support ▪ Bloq’s solution set is built on open source technology, focusing on solving issues around security, provenance, authentication and reconciliation ▪ Acquired Skry in February, 2017 - an analytics and AI firm, providing real-time intelligence and risk assessment from Blockchains and decentralized applications ▪ 11-50 employees Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  71. 71. www.hof.capital 71 Blockchain: www.euklid.com MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Antonio Simeone, Co-founder & CEO - iL Sole 24 Ore, LUISS, Blockchain, Telecom Italia, Columbia ▪ Francesco Di Leva, Co-founder & CTO - Hacktive, ENAV ▪ Mario Giancola, Co-founder & Programmer - CODENCODE, Catchawork ▪ Paolo Savona, Chairman - Unicredit Banca di Roma ▪ Ivan d’Avanzo, Advisor – BCG ▪ Luca Marseglia, Advisor – MIT ▪ $472K in 2 Seed Rounds from 2 investors ▪ Recent - Nov. 22’16, (€10 M pre-money valuation) SELECTED CLIENTS & PARTNERS ▪ Founded in 2015, and headquartered in Milano, Euklid provides an AI engine capable of making independent trading decisions ▪ The AI is based on complex algorithms which are monitored and enhanced daily by humans ▪ Through continuous innovation, Euklid is becoming the bank for investors of the future, with options including a Euklid card and blockchain registration of derivatives, with instant transactions, responsive technology and a variety of investment options ▪ 1-10 employees Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  72. 72. www.hof.capital 72 Debt Collection: www.trueaccord.com MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Ohad Samet, CEO - FraudSciences, Analyzd, Klarna ▪ Nadav Jr. Samet, Chief Innovation Officer, Board - IDF ▪ Joe Gelbard, Chief Revenue Officer - LiveVox ▪ Jeff Alvarez, Chief People Officer - Netflix, PacSun ▪ Paul Lucas, CTO – Expedia, Washington Mutual ▪ Philip Mikal, Advisor - Klarna ▪ $12.73M in 4 Rounds from 9 Investors ▪ Most Recent - $7.48M Series A on Dec. 16, 2015 SELECTED CLIENTS & PARTNERS ▪ Founded in 2013, and headquartered in San Francisco, TrueAccord uses behavioral analytics and machine learning to help enterprises recover lost revenue and empower consumers to get out of debt ▪ Platform provides ▪ Real-time personalization – recommendation technology for customers ▪ Better returns through automated recovery system ▪ Customer retention through optimized communication ▪ Real-time dashboard and API ▪ 11-50 employees, <$1M revenue (Owler) Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  73. 73. www.hof.capital 73 Artificial Intelligence Assistants / Bots: kasisto.com MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Zor Gorelov, Founder & CEO - Microsoft ▪ Sasha Caskey, Founder & CTO - IBM, MITRE, Columbia University ▪ Dror Oren, Founder & CEO - SRI International, Stanford GSB, Tel Aviv University ▪ Ruth Brown, Founder & COO ▪ Kiran Narsu, Chief Revenue Officer ▪ Steve Chambers, Board Member - CEO @ Jibo ▪ Cristóbal Conde, B. Member - FinTech Innovation Lab ▪ William Mark, B. Member - VP @ SRI International ▪ $11.45M in 2 Rounds from 12 Investors ▪ Most recent - $9.2M Series A in January, 2017 SELECTED CLIENTS & PARTNERS ▪ Founded in 2013, and headquartered in NYC, provides a conversational AI platform, KAI, that runs on web, messaging platforms, mobile apps, wearables, & IoT ▪ KAI is industry agnostic & today focused on the finance industry. KAI is fluent in banking & helps people with payments, transaction and account insights, and personal finance management. Kai also provides new ways for banks to support & market their product and services. The experience is as natural and intuitive as texting a friend – human-like, intelligent conversations. ▪ <50 employees in NYC ▪ $2M revenue (Owler) Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  74. 74. www.hof.capital 74 Artificial Intelligence Assistants / Bots: www.asktrim.com MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Thomas Smyth, Founder & CEO - VP of Core Innovation Capital, Founder of Zamsolar, Yale University, London School of Economics ▪ Daniel Petkevich, Founder & COO – Founder of Octane Lending, Redfin, The Climate Corporation, Yale University ▪ $2.2M in 1 Round from 5 Investors ▪ Most recent - $2.2M Seed in July, 2016 SELECTED CLIENTS & PARTNERS ▪ Founded in 2013, and headquartered in San Francisco, provides an app to track all the subscriptions you pay for, and easily cancel those you don't need ▪ 2 employees in San Francisco Private Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  75. 75. www.hof.capital 75 Artificial Intelligence Assistants / Bots: www.pennyapp.io MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Mitchell Lee, Founder - Clinkle, Pebble Tech. Boeing, Radio Flyer, Northwestern University ▪ Alex Quach, Founder - Clinkle, Google, Blizzard Entertainment, Roblox, Stanford University ▪ Jonathan Kau, Software Engineer - Gigster, Facebook, Shyp, Yelp, University of Maryland ▪ Veritka Srivastava, Software Engineer - Accenture, General Motors, University of Michigan ▪ Andrew Dennis, Software Engineer ▪ $1.2M in 2 Rounds from 3 Investors ▪ Most recent - Seed in March, 2017 SELECTED CLIENTS & PARTNERS ▪ Founded in 2015, and headquartered in San Francisco, provides a personal finance app that takes the pain out of keeping track of your finances ▪ App can notify you when you get paid, help you project spending, compare your spending with the previous month, and keep track of how much you’re saving. ▪ 5 employees in San Francisco Private Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  76. 76. www.hof.capital 76 Artificial Intelligence Assistants / Bots: insurify.com MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Snejina Zacharia, Founder & CEO - Gartner, MIT ▪ Steven Moseley, Director of Engineering - TripAdvisor, Transio, Grass Roots, Synthelogic, BitTime, UPenn ▪ Tod Kiryazov, Director of Product - Northeastern University, Worcester Polytechnic Institute ▪ John Pauler, Director of Marketing - SimpliSafe, Vistaprint, One to One Interactive, Boston University ▪ Praveen Mandal, Board Member - Immersive Capital ▪ Mark Rosenblatt, Advisor ▪ Giorgos Zacharia, Board Member - Kayak CTO, MIT ▪ $6.6 in 2 Rounds from 3 Investors ▪ Most recent - $4.6M Venture in March, 2017 ▪ Founded in 2013, and headquartered in Cambridge, Massachusetts, provides a smart virtual AI insurance agent / robo advisor to give personalized insurance recommendations. Compares dozens of car insurance quotes at once to save customers time & money. ▪ One of the fastest growing MIT FinTech start-ups. Led by veterans from Kayak and TripAdvisor. ▪ >1.5 million consumers have used Insurify to compare insurance quotes (>40% month-over-month growth in the number of customers purchasing policies on the platform) ▪ Users can upload pictures of license plates & share other key information with Insurify’s chatbot, powered by natural language processing & machine learning. Users can also sign up for notifications when rates drop or new policies are added ▪ Insurify is trying to advance the technology behind its virtual agent to the point that it’s sophisticated enough to one day pass the licensing exam for insurance agents. ▪ <50 employees in Cambridge, Massachusetts ▪ $3M revenue (Owler) Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  77. 77. www.hof.capital 77 Artificial Intelligence Assistants / Bots: www.sureapp.com MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Wayne Slavin, Founder & CEO - Tapingo, Salesforce, Barnes & Noble, Columbia University, San Diego State ▪ Michael Landsberger, Head of Product - Flogg, Crowdtap, Warner Brothers, Turbine, Putnam Investments, Tufts University ▪ Carter Branch, Growth, Strategy, & Operations - Tapingo, Hope Foods, The Convos, Founder of MOTIVhate, Arizona State University ▪ Todd Kimmel, Investor - Montage Ventures ▪ $2.6M in 1 Round from 3 Investors ▪ Most recent - $2.6M Seed in May, 2016 SELECTED CLIENTS & PARTNERS ▪ Founded in 2014, and headquartered in NYC, provides a mobile app that allows you to purchase insurance when you want it, & where you want it for anything important to you (your apartment, pets, luggage, yourself, etc.) ▪ After answering a few questions, Sure uses an AI robo broker to find you the best price in seconds ▪ ~10 employees in NYC ▪ $6M revenue (Owler) Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  78. 78. www.hof.capital 78 Artificial Intelligence Assistants / Bots: www.meetcleo.com MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Barnaby Hussey-Yeo, Founder & CEO - University of Bristol, Manchester Metropolitan University ▪ Aleksandra Wozniak, Founder & CTO - Google, Genomics Univ. of Wroclaw, Poznan Univ. of Tech ▪ Michael Hauser-Raspe, Engineer - Amazon, University College London, University of Cambridge ▪ Julian Keenaghan, Engineer - Previously the founder of Tastebuds.fm and CTO of City Socializer. Machine learning at the University of Edinburgh. ▪ Ally Fekaiki, Growth & Customer Success - U of Leeds ▪ $700K in 1 Round from 8 Angel Investors ▪ Most recent - $700K Angel in January, 2017 ▪ Niklas Zennström, Angel Investor – Skype FounderSELECTED CLIENTS & PARTNERS ▪ Founded in 2015, and headquartered in London, provides an intelligent assistant for your money ▪ Uses AI to scan your transaction history, calculating & spotting interesting spending trends and helps you keep track of budgets. Cleo also lets you view your balance, check direct debits, latest transactions, and see your spending per category. ▪ Works via text messages on your phone , Messenger on your phone, or voice recognition using Amazon Alexa or Google Assistant ▪ 5 employees in London Private Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  79. 79. www.hof.capital 79 Artificial Intelligence Assistants / Bots: www.fingenius.com MANAGEMENT & BOARDHIGHLIGHTS ▪ Dmitry Aksenov, Founder & CEO of FinGenius - University of Both, Bellerbys College ▪ Mikhail Naumov, Founder & Chief Strategy Officer of DigitalGenius - Rutgers ▪ Bogdan Maksak, Founder & CTO of DigitalGenius - Founder & CEO of MathsNaked & UKSTUDYHELP , Univ. of Oxford ▪ Mahyar Bordbar, Head of Product of DigitalGenius – University of London, University of Surrey ▪ Alex Kayyal, Advisor of DigitalGenius - European Head of Salesforce Ventures SELECTED CLIENTS & PARTNERS ▪ Founded in 2013, and headquartered in London, provides practical applications of deep learning & artificial intelligence into customer service operations ▪ Available for Salesforce, Zendesk, & Oracle platforms. AI predicts questions & has automated answers. Allows human agents to spend their time only on non-routine questions. ▪ Connects to Customer Service Console & CRM to extract data & train a neural network with your historical customer service transcripts. The AI learns how your best agents deliver fast, accurate customer replies & correctly tag or route incoming cases. ▪ DigitalGenius has ~50 employees in London & SF ▪ $2M revenue for DigitalGenius (Owler) INVESTORS & FUNDING ▪ DigitalGenius received $7.35M in 3 Rounds from 11 Investors ▪ FinGenius is a DigitalGenius company Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  80. 80. www.hof.capital 80 Fraud Detection: feedzai.com MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Nuno Sebastião, Founder & CEO – European Space Agency, Founder & CEO of Oristeba, Deloitte, London Business School, UCLA Anderson School ▪ Pedro Bizarro, Founder & CSO - Forbes Tech Council, Carnegie Mellon Univ., Univ. of Wisconsin - Madison ▪ Paulo Marques, Founder & CTO - Forbes Tech Council, Carnegie Mellon University, European Space Agency, Founder WIT Software ▪ Loc Nguyen, CMO - Paypal, VISA, MGMA, Cathay Global Investments, Berkeley ▪ Patricia Kemp, Board Member – Partner Oak HC/FT, Stanford GSB ▪ $26.13M in 5 Rounds from 8 Investors ▪ Most recent - ? Round ? in October 2016 SELECTED CLIENTS & PARTNERS ▪ Founded in 2009, and headquartered in San Mateo, California, provides a machine learning platform for fraud & risk. Cloud-hosted or onsite deployment in your data center. ▪ Proprietary product, Feedzai's Fraud Prevention That Learns, is a software solution that enables customers to predict and prevent payment loss before it occurs. It analyzes a customer’s historical & current data to identify whether the credit card is present or not in real-time to detect fraud in commerce transactions. ▪ 163 employees in San Mateo, NYC, Atlanta, London, Lisbon, Porto, & Coimbra ▪ >$25M revenue (glassdoor.com) Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  81. 81. www.hof.capital 81 Fraud Detection: www.biocatch.com MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Avi Turgeman, Founder, CTO, & VP of Business Development - Forbes Technology Council, Founder & CEO of Tapingo, Founder of VocalZoom, Physicist for Israel Defense Forces ▪ Eyal Goldwerger, CEO - Galil Software, Angel Investor, TargetSpot, RichFx, XMPie, WhenU.com, GoCargo.com, BCG, INSEAD, Tel Aviv University ▪ Uri Rivner, Head of Cyber Security - RSA (Security Division of EMC), Funtactix, Cyota, Tel Aviv Univ. ▪ Avishai Fishman, CFO - SQReam Technologies, Tair Finance & Law, Mul-T-Lock, Tel Aviv University ▪ $11.6M in 3 Rounds from 3 Investors ▪ Most recent - $10M Series A in June 2014 SELECTED CLIENTS & PARTNERS ▪ Founded in 2011, and headquartered in Tel Aviv, provides behavioral authentication and threat detection for web and mobile applications ▪ Available cloud-based solution, analyzes human- device interactions to protect users & data. Generates unique user profiles & models different types of genuine and malicious behavior. Banks & other enterprises use BioCatch to significantly reduce online fraud & protect against a variety of cyber threats, without compromising the user experience. ▪ Over 45 patents granted and pending ▪ 54 employees in Tel Aviv, NYC, the UK, and Colombia ▪ $7M revenue (datafox.com) Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  82. 82. www.hof.capital 82 Credit Scoring: typescore.io ▪ Founded in 2015, and headquartered in London, Provider of an online credit rating platform for lenders. ▪ Uses natural language processing analysis on language data provided by the borrower as part of the application process. ▪ 2 employees in London MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Kanishk Walia, Founder & CTO - London School of Economics, Dean Street Advisors ▪ André Röhrig, Founder & CTO - Freie Universität Berlin, University of Cologne ▪ $24.8K in 1 Round from 1 Investor ▪ Most recent - $24.8K pre-seed in May 2016 SELECTED CLIENTS & PARTNERS Private Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  83. 83. www.hof.capital 83 Credit Scoring: aire.io ▪ Founded in 2014, and headquartered in London, provides an algorithmic credit scoring engine that emulates the human intelligence of underwriters. ▪ Process to allow banks to lend to new, qualified borrowers. During an online interview, the company collects and validates applicant-provided data to evaluate profession, education, and financial knowledge. Lenders can then use this score to evaluate applicants and provide them with credit. ▪ Proprietary AI technology stems from the academic research of our founder ▪ 18 employees in London MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Aneesh Varma, Founder - J.P Morgan, Credit Suisse, Morgan Stanley, FabriQate, Lehigh University ▪ Dr. Srini Sundaram, Founder - Squidmint, Agvesto, University of Newcastle-upon-Tyne, Univ. of Madras ▪ Jon Bundy, Founder and COO - Royal Bank of Scotland, University of Bradford ▪ Matt Davies, Partnerships - brilliant basics, Great Fridays, Fjord, Nokia, University of Bedfordshire ▪ Timothy Kimball, CTO - Microsoft, 8Interactive, Contract Forge, Berkeley ▪ Dr. Andrew Weeks, Data Science - University of York ▪ $7M in 4 Rounds from 14 Investors ▪ Most recent - $2M in October 2016 SELECTED CLIENTS & PARTNERS Private Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  84. 84. www.hof.capital 84 Credit Scoring: www.creditvidya.com ▪ Founded in 2013, and headquartered in Mumbai, its B2B platform uses 10,000+ alternate data points, proprietary machine learning technology, & superior statistical techniques to help lenders make more accurate credit decisions (esp. in India where 800M+ people not currently scored for credit) ▪ Data sources include pending payments, categories of purchases, social networks, & transactional info (through recharges or e-commerce spends). Info is received from borrower’s smartphone & e-mails. ▪ Customized cards present information & give insights into behaviors & life events of consumers so the right products can be offered at the right time. ▪ 55 employees in Mumbai; < $1M revenue (Owler) MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Rajiv Raj, Founder – Experian, Credit Information Bureau, HDFC Bank, IDBI Bank, Citi, Canara Bank, University of Pune ▪ Abishek Agarwal, Founder & CEO - Lollypop UI/UX Studio, Experian, UCLA, London Business School ▪ Srikanth Gaddam, CTO - MobileWays, Apollo Group, Birla Institute of Technology and Science ▪ Suman Varanasi, COO - MobileWays, Infosys, Cognizant Technology Solutions, Birla Institute of Technology and Science ▪ $2M in 1 Round from 1 Investor ▪ Most recent - $2M Series A in June 2016 SELECTED CLIENTS & PARTNERS Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  85. 85. www.hof.capital 85 Credit Scoring: www.zestfinance.com ▪ Founded in 2009 and headquartered in Los Angeles ▪ Creators of the Zest Automated Machine Learning (ZAML) platform, an end-to-end underwriting solution that takes advantage of machine learning & thousands of data points (big data), at scale, with speed & full transparency. With ZAML, lenders can more accurately assess thin-file and no-file borrowers——such as millennials——that traditional underwriting systems overlook. ▪ Partnered with China’s largest online direct-sales company, JD.com, to expand consumer credit to 1B+ people in China with no credit history. ▪ <200 employees in Los Angeles ▪ >$51.6M revenue (Owler) MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Dr. Douglas Merrill, Founder & CEO - Former Google CIO, Charles Schwab, EMI Records, Princeton Univ. ▪ Mike Armstrong, President - West Creek Analytics, Capital One, Staples, Duke University ▪ Dr. Jay Budzik, CTO – Norwestern University ▪ Michelle Sangster, VP of Business Development - Studio 9+, Harvard Business School, UCLA ▪ $62M in 4 Rounds from 11 Investors ▪ Most recent - July 2016 SELECTED CLIENTS & PARTNERS Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  86. 86. www.hof.capital 86 Credit Scoring: www.applieddatafinance.com ▪ Founded in 2014, and headquartered in NYC, ADF uses a proprietary methodology & advanced data science to more accurately assess a borrower's true creditworthiness. ▪ ADF's inaugural brand, Personify Financial, extends credit at responsible, risk-appropriate rates with a fair, transparent, & easy to understand product ▪ ADF’s system learns. The more loans it makes, the more precise it gets. ▪ <50 employees in NYC, San Diego, & Chennai, India ▪ $2.4M revenue (datafox.com) MANAGEMENT & BOARDHIGHLIGHTS INVESTORS & FUNDING ▪ Eric Schwartz, Chairman - CEO of 76 West Holdings, Prosper financial board member, former Goldman Sachs management committee, Wharton ▪ Daniel Zwirn, Founder & CEO - Founder & CEO of Arena Investors, founder & board member of North Mill Capital & North Mill Equipment Finance, founder of Zwirn & Co. Harvard Business School, Wharton. ▪ Krishna Gopinathan, Founder, CEO, & Chief Data Scientist – Founder & CEO of Global Analytics, inventor of FICO's Falcon fraud detection system, University of Waterloo ▪ ? in 1 Rounds from 3 Investors & $50M in debt financing ▪ Most recent - ? Seed in August 2015 SELECTED CLIENTS & PARTNERS Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  87. 87. www.hof.capital 87 ▪ $106.51M in 3 Rounds from 4 Investors ▪ Most recent - $80M Series C in April 2017 INVESTORS & FUNDING Credit Scoring: www.wecash.net ▪ Founded in 2014, and headquartered in Beijing, China, is a big data credit assessment platform that provides solutions for technology companies ▪ Wecash’s product, ShopStyle, is the world’s leading fashion search destination ▪ The first online credit evaluation platform in China, has strength in data mining & machine learning techniques. Credit assessments can be conducted accurately & rapidly (within 3 minutes). ▪ 48 employees in China, Singapore, San Francisco, & São Paulo, Brazil ▪ $2M revenue (Owler) MANAGEMENT & BOARDHIGHLIGHTS ▪ George Zhengchun Zhi, Founder & CEO - Former VP of 9Fbank, former assistant President HISUNTECH, Peking University ▪ Purui Wang, CTO - Google, Zynga, PGP Corporation, Actiontec Electronics, Beihang University ▪ Sprina Wang, VP Global Marketing - Baidu, The Riki Group, SINA, Beijing Language & Culture University ▪ Mario Theodoroviz Isaac, VP of Business Development - OAS Empreendimentos, Santander, Citi, Hult Business School ▪ Roger Madeira, CEO Wecash Brasil SELECTED CLIENTS & PARTNERS Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  88. 88. www.hof.capital 88 ▪ $30.6M in 3 Rounds from 2 Investors ▪ Most recent - $22.75M Series B in March 2017 INVESTORS & FUNDING Credit Scoring: www.creamfinance.com ▪ Founded in 2012, and headquartered in Warsaw, utilizes advanced algorithms, Smart Data, & machine- learning to quickly evaluate & score potential borrowers ▪ Offers multiple credit products across international markets. Ranked as the second-fastest growing company in Europe by the prestigious Inc.5000 Europe ranking ▪ Aims to become a one-click loans provider to consumers globally ▪ 235 employees in Poland, Denmark, Latvia, Georgia, Czech Republic, Slovakia, Austria, & Mexico ▪ $27M revenue MANAGEMENT & BOARDHIGHLIGHTS ▪ Matiss Ansviesulis, Founder & CEO - J.P Morgan, Berkeley / Haas, Lancaster University ▪ Davis Barons, Founder & Chairman of the Board - Green Fortune Latvia, Berkeley / Haas ▪ Adam Dabrowski, Managing Director - Lending Companies Union, Warsaw School of Economics, Queen’s University Belfast ▪ Patrick Köck, COO - KPMG Austria, Vienna University of Economics and Business ▪ Morten King-Grubert, Managing Director - Vienna University of Economics and Business SELECTED CLIENTS & PARTNERS Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  89. 89. www.hof.capital 89 ▪ $18M in 2 Rounds from 3 Investors ▪ Most recent - $11.5M Series B in June 2013 INVESTORS & FUNDING Personal Banking: personetics.com ▪ Founded in 2010, and headquartered in New York City, offers a predictive interaction solution for financial institutions to deliver personalized customer experiences across online, mobile, and tablet platforms. ▪ Products (all use realtime predictive analytics): Assist (digital self-service app to help customers with banking needs), Engage (app that suggests how customers meet financial objectives, & make sure they stick to the plan), & Chatbot (reaches users on multiple messaging platforms with intelligent messages; can respond to requests intelligently) ▪ 88 employees in New York City, London, & Tel Aviv ▪ $5.3M revenue (Owler) MANAGEMENT & BOARDHIGHLIGHTS ▪ David Sonsa, Founder & CEO - 20 years of experience in financial services. Founder & CEO of Actimize (acquired by NICE Systems). Founder of Gilon Information Systems. Ben-Gurion University ▪ David Govrin, Founder & COO - 15 years experience in enterprise software, strong banking domain expertise. Co-founder of Actimize. Tel Aviv Univ. ▪ Danny Vatnik, CTO - 20 years of software experience, founder and CTO of Grsee. Army Intelligence, AOL / ICQ, Scitex / Kodak. Tel Aviv Univ. SELECTED CLIENTS & PARTNERS Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  90. 90. www.hof.capital 90 ▪ ? in 1 Rounds from 3 Investors ▪ Most recent - Accelerator INVESTORS & FUNDING Personal Banking: sbdagroup.com ▪ Founded in 2014, and headquartered in Dublin, provides a machine learning / AI-based platform to solve personalized communications in retail banking. ▪ Using a mobile app, banks can automatically deliver personalized messages to clients based on the clients’ life events & financial situation ▪ Platform is proven to boost performance up to 30% MANAGEMENT & BOARDHIGHLIGHTS ▪ Nikita Blinov, Founder & CEO - Yandex, Moscow State University ▪ Alexander Fonarev, Chief Data Scientist - Yandex, Skolkovo Institute of Science and Technology ▪ Anna Laskovaya, Project Manager - SUP Media, Moscow State University SELECTED CLIENTS & PARTNERS Source: Company Website, Crunchbase, CBI Insights, Google. Prepared by: Yordanka Ilieva* Based on Public & Non-confidential Sources
  91. 91. www.hof.capital 91 A representative of an asset management firm (“Firm”) is providing this presentation for informational purposes to the intended audience. Nothing in this presentation shall constitute an offer or solicitation with respect to the purchase or sale of any security in any jurisdiction nor should anything in this presentation form the basis of, or be relied upon for, making any investment decision. Nothing in this presentation constitutes professional and/or financial advice of any kind (including business, employment, investment advisory, accounting, tax, and/or legal advice), nor does any information in this presentation constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. This presentation and the information contained herein are provided “AS IS”. The Firm and the presenter make no representation or warranty (express or implied) with respect to the information contained herein (including, without limitation, information obtained from third parties) and expressly disclaims any liability based on or relating to the information contained in, or errors or omissions from, these materials; or based on or relating to the recipient’s use (or the use by any of its affiliates or representatives or any other person) of these materials; or based on any other written or oral communications transmitted to the recipient or any of its affiliates or representatives. The Firm and the presenter undertake no duty or obligation to update or revise the information contained in this presentation. Disclaimer

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