BGX Investment Report covering venture capital flow into the period of 2018 Q4 and market sentiment for blockchain in 2019. Note: we are not talking about discredited ICOs or cryptocurrency predictions.

1. BGX IN THE INVESTMENT
LANDSCAPE
OUTLOOK REPORT
1
J a n 0 7 , 2 0 1 9
A n a l y t i c s

2. 2
The information in this Presentation is of general background and contains an overview and summary of certain information selected by
the BGX management. It does not purport to be complete or make accurate predictions. The Presentation has been prepared based on the
information available at the time of its making. No representation or warranty, express or implied, is made to the fairness, accuracy or
completeness of the information, opinions and conclusions contained in the Presentation or any omission from the Presentation or of any
other written or oral information or opinions provided now or in the future to any party. While reasonable care has been taken to ensure
the accuracy of the facts within the Presentation, certain statements in this Presentation are forward-looking statements, which include
information related financing, development of certain distributed ledger related technologies and other matters. Forward-looking
statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations, or
intentions regarding the future. By nature, forward-looking statements involve numerous assumptions and uncertainties. The Company
assumes no obligation to update forward looking statements should circumstances, markets, management’s opinions and estimates
change.
Any information within the Presentation is subject to update, amendment, revision or change without prior notice. The Presentation
should not be construed as a commitment by BGX or any related parties. The Presentation is for informational purposes only and does not
constitute an offer, recommendation, or solicitation to sell securities. The Presentation does not provide any investment, legal, tax, or other
advice or recommendation. The Presentation in no way constitutes an offering memorandum, prospectus, or disclosure document for the
purposes of applicable securities and financial law.
Certain information contained herein has been prepared by third-party sources and has not been independently audited or verified by
BGX. BGX has used its reasonable best efforts to ensure the completeness and accuracy of the information presented.
FORWARD LOOKING STATEMENT
A n a l y t i c s

3. BLOCKCHAIN MARKET HIGHLIGHTS 3
A n a l y t i c s
Platform proliferation will continue. We are
expecting more contenders to emerge, given
the number of well-funded projects that are
under way and promise to address some of
the key shortcomings in existing
architectures.
From 2018 to 2024, there will be
significant growth, as we will see more
validated information from lessons learned
and new use cases, better software,
service providers and accurate clarity
2017 and 2018 noise is clearing and cryptocurrency / ICO projects are
diminishing in importance. 2019 is predicted to be the year of enterprise-level
decentralized ledger technologies (DLTs)
Institutional players enter the market and serious investment funds increase
activity, hindered only by regulatory and insurance uncertainties.
Less projects get funding, but the deal structure is increasing in complexity
(more investors per deal) and more $ USD are invested per DLT Project,
indicating blockchain investment market growing maturity.
While Finance and Cryptocurrency sectors dominated investments in 2018, 2019
is predicted to be the year of insurance, oil & gas, and supply chain solutions.
Most importantly, 2019 will see blockchains taking on digital goods.
Venture capital overtakes angel investment in seed stages and almost half of
leading investors in deals are from the Asian region.
While seed capital is open to projects without a product, those with a product
have greater chance of fundraising success and raise more per deal.

4. 2018 Q4 EARLY STAGE FUNDING 4
Graph 1: Early Stage Funding (Crunchbase Data)
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$0
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
$700,000,000
$800,000,000
Q1 Q2 Q3 Q4
Total Invested Median Invested ! While total funding has been decreasing for three quarters, the median sum
invested is on the rise.
0
100
200
300
Q1 Q2 Q3 Q4
Projects 2018
Graph 2: Total Number of Projects (Crunchbase Data)
! The decrease in total investment is associated with the decline in number of
projects. Those that remain collect larger sums.
$1,232,000 2018 Median $1,700,000 Q4 Median 608 Projects $2,732,000 Average (stable through quarters)
64.0%
15.9%
5.4%
13.2%
Type (Year)
Seed Series A Pre-Seed Angel
Graph 3: Types (Year) (Crunchbase)
53.2%
27.8%
11.4%
7.6% Type (Q4)
Seed Series A Pre-Seed Angel
! Early funding in blockchain has
gained maturity towards Q4, evident in
the increase of Series A funding with
greater availability of Pre-Seed
support.
Graph 4: Types (Q4) (Crunchbase)
Number of Investors
Total… 1,103
Year Median… 1
Q4 Median… 2
! The median number of investors
per deal increased in Q4. The
average number remained at 3.
Table 1: # of Investors per Deal (Crunchbase)
A n a l y t i c s

5. 2018 Q4 VENTURE FUNDING BY INDUSTRY 5
117 projects, $591 mil accounted for
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
0
5
10
15
20
25
30
BLOCKCHAIN INVESTMENT
# of Projects $
A n a l y t i c s

6. 2018 Q4 VENTURE FUNDING FIRST ROUND 6
Fundraising by Blockchain Projects for their first funding round
45%
27%
23%
5%
1st Round Lead Investor Region
(by # of projects)
Asia Europe North America International
11%
14%
3%
63%
9%
1st Round Type
(by # of projects)
Angel Pre-Seed Private Equity Seed Series A
First Round Investments
70
Average Investment
$2.79 MN
Average Pre-Money Valuation
$5.87 MN
Asian Region Investors Leading
45%
Asian investors led 45% of investments, but
invested 56% of the total sum in Q4 2018.
US investors led 23% of investments, but
only-American deals account for only 6% of
the sum.
Angel Funding
• 11% of projects
• 9% of total funding
• 88% lead angels from Asia
• $1.4 mil investment per deal (avg)
• 2 investors per deal (avg)
VC Seed & Series A Funding
• 72% of projects
• 91% of total funding
• Mostly international cooperation
• $3 mil investment per deal (avg)
• 2.5 investors per deal (avg)
Average Pre-Money Valuation
• Pre-Seed = $2.18 mil
• Angel Seed = $3.5 mil
• VC Seed = $6.8 mil
• Private Equity = $25 mil
Other Statistics
• 95% of Asian region investors invested
in Asian region projects
• Project origin is evenly spread (36%
Europe, 29% Asia, 30% N. America)
A n a l y t i c s

7. 2018 Q4 FIRST ROUND PRODUCT READINESS 7
57%
26%
10%
7%
First Round Funding Product Readiness
None MVP Post-MVP Productivity
1,400,000
4,800,000
765,000
8,635,000
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
None MVP Post-MVP Productivity
Average
! Most projects achieving first-time funding did not have a product (59%),
though those that did – got more than 3x on average funds invested.
! “MVP” is defined as a basic demonstration of product, “Post-MVP” is a
fully working product version, “Productivity” is a product with existing users
A n a l y t i c s
Rated by BGX Analytics based on available data of 117 projects funded in Q4 2018

8. 2018 Q4 TOTAL ROUNDS INVESTMENT HUBS 8
A n a l y t i c s
ASIA
In 2018 Q4, Asian investors led venture deals in 31% of
the total deal flow, but raising just 10% of the total sum.
Note: Out of 117 total 2018 Q4 deals, only 68 have available information about investors, which is a representative selection on which the following data is based on
Most of that activity is in first round investments, as they
led 45% of first round deals, raising 57% of the total.
$41,324,846,
76%
1%
1%
9%
3% 8%
0%
2%
Asian Investment Hubs (by $ Sum)
Beijing Hangzhou Hong Kong Seoul Shanghai Shenzen Singapore Tokyo
Beijing investors led 76% of the funds from Asian-led
deals, despite having only 24% of the number of deals
made.
This pattern is even stronger for the first round (83%).
NORTH AMERICA
In 2018 Q4, North American investors led venture deals in 41% of the total
deal flow, but those deals raised 77% of the funds invested in this period.
For first rounds, N. American investors led 6% of deals and raised 23% of funds.
82% of funding was led by
the Silicon Valley (53% of
deals led).
For first round investments,
Silicon Valley led 44% of
deals for 36% of the funds
(59% came from Boston to
11% of deals).
EUROPE & OTHERS
Europe led 2% of the deals for 22% raised. In first round investments, European
investors led 28% of the deals for 13% raised.
London led 28% of the total sum and Tel-Aviv led 27%. However, Tel-Aviv had
less deals (6% vs. London’s 26%). Pattern persists for first round deals (34% of $
each). 5% of all deals had mixed lead investors, not attributed to any one group.
$339,183,047,
83%
US Investment Hubs (by $ Sum)
Alexandria Boston Houston Jackson
Kentucky Madison Mountain View Palo Alto
Sacramento Salt Lake City San Francisco Toronto
West Palm Beach

9. 2019 MARKET SENTIMENT 9
APPLICATIONS
TECHNOLOGY
CHALLENGES
OUTLOOK
2019: THE YEAR 2018 ‘Cleared the Noise’, 2019 Will Be the Time for the
Big Players”
As the sector clears of opportunistic low-quality projects, institutional
players and enterprise-level solutions will dominate the technology.
Integration becomes easier. Clearance & settlement, IOT, and insurance
lead the way in adopting enterprise-level systems, according to analysts.
Blockchain is one of the seven technologies insurers
must master for digital transformation [… or] new
market entrants will do what Amazon has done to retail”
2019 will be revolutionary in UX and adoption support. Integrating
decentralized solutions will get easier, enterprise-friendly, and multi-faceted.
It is inconceivable that [blockchain] remains desktop-
first when clearly the most important computing devices
are mobile. And this is clearly changing.”
Blockchain technology is still maturing and implementation is slow. Some
sectors, especially supply chain, are investing far less than expected.
A n a l y t i c s
By 2023, 90% of blockchain-based supply chain
initiatives will suffer blockchain fatigue for lack of strong
use cases.”
Blockchain is at an inflection point, with momentum
shifting from “blockchain tourism” and exploration to
the building of practical business applications.”As business-ready solutions offer greater usability and integration, higher
institutional attention will give blockchain the necessary boost in 2019.

10. BGX 2019 DIRECTION 10
A n a l y t i c s
Blockchain introduces a new vector to
accelerate the move to digital business. This
allows enterprise architecture and
technology and innovation leaders to create
or represent assets in a digital context and to
create a new, decentralized economic and
societal model.
The blockchain ledger is only a small part
of the overall enterprise app. Many off-
chain components are also needed – user
management, workflows, systems
integration, user interface, APIs, security,
event mediation, and many more.
Current status: BGX has released a fully operational v 0.5 of its network, a
white-label mobile application, API, and published its unique consensus.
Market focus: Enterprise-level DLT with a focus on digital enterprise
organizations in the digital retail and services sector
Product focus: Network growth through increased nodes, modifying
anchoring system, unveiling AI ORACLES
Strategic priorities: Attracting funding to continue development and
accelerate network adoption among enterprise clients
Investment focus: Seed funding venture capital round with 30% in equity
and token options

11. DATA COLLECTED 11
A n a l y t i c s
We thank the following resources and agencies, whose data and insight have helped in the creation of this analysis report.

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