The document outlines the investment strategies and market insights of Fj Labs, focusing on venture capital in marketplaces, food models, real estate, and job marketplaces. It emphasizes the importance of verticalization, attractive unit economics, and the resilience of B2B marketplaces amidst evolving consumer behaviors. Additionally, it highlights successful investment themes, heuristics for evaluating opportunities, and specific growth drivers in various sectors.

1. MARKETPLACES: THE PARTY IS NOT OVER
JUNE 2019

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3. PRIOR INVESTMENTS
2

4. FOUNDERS
Fabrice Grinda
• Forbes #1 Ranked Angel Investor
LANGUAGES
BACKGROUND
Jose Marin
LANGUAGES
BACKGROUND
3
FOUNDER FOUNDER
Zingy Aucland IG Expansion

5. IN A NUTSHELL
VENTURE CAPITAL
• Pre-seed / Seed / Series A focus
• Average investment size $400K
• Global strategy: Active in U.S., Europe, LatAm, India
• 80+ investments per year
• 65% new investments + 35% follow-ons
• Do not lead rounds or join boards
• Co-invest with larger funds we know and trust
COMPANY BUILDING
• Build 1-2 businesses from scratch per year
• Invest $2.5M to $5M per company
• Executive chairman role
• Hands-on role in product, marketing, hiring, strategy &
fundraising
• Expertise in scaling using TV advertising
(FJ has bought over $1B of TV ads)
• US focus but have built companies in Europe + Brazil
4

6. INVESTMENT HEURISTICS
Verticalization of horizontals
Transition to supply pick marketplace
B2B marketplaces
5
Does it meet our thesis?
Storytelling skills
Grit and tenacity
Demonstrated passion
Metrics driven and analytical
Attractive unit economics (actual or theoretical)
$1b+ potential enterprise value
Low disintermediation risk
Market leader potential
Scalable and capital efficient
Growing market
Attractive price relative to team,
traction, and market opportunity
Is the team compelling?
Is the business attractive?
Are the deal terms reasonable?

7. NET INVESTMENT TRACK RECORD
REALIZED GAINS UNREALIZED GAINS
# OF INVESTMENTS
313
AVG. INVESTMENT
$466K
AVG. HOLDING PERIOD
3.3 Y
IRR
70.9%
INVESTED
$30.8M
As of December 31, 2018. Includes FJ Labs LLC investments. MOIC is based on last round valuations. 6
MOIC
5.7X
CARRYING VALUE
$176.0M
INVESTED
$146.7M
MOIC
2.0X
CARRYING VALUE
$290.9M
AVG. INVESTMENT
$224K
# OF INVESTMENTS
132
AVG. HOLDING PERIOD
2.6 Y
IRR
30.1%

8. We follow and invest
in the evolution of
marketplace models
MARKETPLACE MODELS AND INVESTMENT THEMES
7

9. VERTICALIZATION OF THE HORIZONTALS CONTINUES
8

10. CONTINUED VERTICALIZATION OF HORIZONTALS
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11. MOVING FROM DOUBLE COMMIT TO MARKETPLACE PICK
10

12. B2B MARKETPLACES
Examples
High Margins of
20%+
High Average
Order Value
High
Recurrence
B2B Marketplaces have attractive characteristics that
makes them more resilient
11

13. Food Models
12

14. FOOD IS UNDERGOING MASSIVE SHIFT TO OFF PREMISE CONSUMPTION
On Premise Revenues
(grocery shopping & dine-in)
Off Premise Revenues
(pick-up & delivery)

15. VERTICALIZATION OF ON-DEMAND FOOD
Verticalization happens around discovery,
trust, convenience and priceHorizontals benefit from the growing demand
Managed delivery for
business lunch
Discovery platform for
pick-up
Managed delivery for
authentic food
Discovery platform for
local pizzerias
Discovery platform for
discounted pick-up

16. NEW MODELS ARE FOCUSING ON OFF PREMISE CONCEPTS
High upfront costs
On-premise experience first
- physical storefront -
Not flexible to changes:
one kitchen, one brand, one menu
In-house customer comes first
Off-premise experience first
- digital storefront -
This Model works as long as
food is still hyper-local and
physical space is needed
This Model works when
cultural habit shifts to
mobile-first world (like China)
Digital presence is needed
Low upfront costs
Out-of-house customer comes first
Flexible to changes:
multiple brands from single kitchen

17. OFF-PREMISE EMERGING MODELS
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- Smart industrial kitchens
rented out to restaurants
- High-flexibility and easy
expansion for current brands
- Merit based: Low-cost barrier
to entry for new brands
- Players provide shared space,
infrastructure, and SaaS
- Brands renting dark kitchens
or using existing underutilized
restaurant space
- Players in the space usually
take charge in providing the
brand, raw-materials,
customer acquisition, and
delivery support
- Cooking-on-the-go
renovated and sold with
healthy margins
- Players in the space
provide well-equipped
vehicle with a cooking
space, and often an app
Dark Kitchens Virtual Restaurants Autonomous Restaurants Fleet

18. 17
Real Estate Models

19. MULTIPLE SUCCESSFUL MODELS EMERGING IN THE REAL ESTATE SPACE
18

20. OVERVIEW OF IBUYER MODEL
19
The iBuyer model requires getting involved in every step of the transaction

21. SUCCESS FACTORS FOR IBUYER MODELS
20
- Mortgage market for buyers
- Debt capital market to fund
homes up to ideally 90%+
- Culture of home ownership
- High broker fees
- High % of transactions going
through brokers
- High complexity transaction
- Long time to close
transaction (90+ days)
- Availability of low priced
assets that can be
renovated and sold with
healthy margin
Every market Efficient markets Inefficient markets

22. Car Models
21

23. Ridesharing
EVOLVING CAR MODELS
22
Used New
Own
Access
Used car leasing New car leasing
Allows consumers to sell to
dealerships

24. FRONTIER CAR GROUP IS BRINGING THE AUTO1 MODEL TO EMERGING MARKETS
Frontier Car Group is bringing the Auto1 model to
emerging markets
Auto1 model has proven successful in Europe
Not clear which
markets are fully
operational
Initial target
markets

25. SUCCESS FACTORS FOR CAR MODELS
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Information sources and use
Incumbents
- Absence of wholesale
marketplaces
- Low penetration of largest
incumbents
Financing
- Social acceptance of credit
- Credit scoring system
- Access to credit
Macro factors
- Market size
- High and/or increasing car
ownership
- Price differential across
regions
- Potential for pricing models
built on proprietary data set

26. Job Marketplace Models
25

27. SUCCESSFUL JOBS MARKETPLACE MODELS
26
Blue collar
Full Time Jobs Staffing / Gigs Vertical Marketplace Pick
White collar

28. SUCCESS FACTORS FOR JOB MARKETPLACE MODELS
27
Regulatory
- Employer responsibility for
insurance/pension/sick
leave/…
- Ease of hiring/firing employees
Macro factors
- Industries which require rapid
hiring/firing of large amounts of people
(e.g. ride sharing or oil & gas for
staffing)
- Job churn in the market
- Unemployment rates

29. Home Services Models
28

30. VERTICALIZATION OF HOME SERVICES MODELS
29
Horizontal services marketplace
New verticalized and transactional competitorsHorizontals still dominate the bulk of home
services models
Managed marketplace
for home maintenance
and repairs
B2B marketplace for
construction materials
Managed marketplace
for home renovations
Managed marketplace for
restaurant renovations

31. Lending Models
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32. VERTICALIZATION OF LENDING MODELS
31
… followed by a second wave of startups
that address specific client needs
The first wave of fintech challengers brought
significant disruption to the market …
Banking for self-
employed freelancers
Pay-as-you-go smart-
phone purchasing
POS financing for
veterinary clinics
Better returns for
online shopping
Lending for
produce farmers

33. SUCCESS FACTORS FOR VERTICAL LENDING MODELS
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Better understanding
of customer needs
• Faster decision
making
• Targeted UI/UX
• Higher approval
rates /lower cost
Better customer
experience
Customer Needs Vertical Fintech Edge Outcome
More business + more data
ProducePay for farmers
ScratchPay for vets
ClearBanc for freelancers

34. AMAZING THINGS LIE AHEAD!
33
Thank you!

35. Thank you.
FABRICE GRINDA
fabrice@fjlabs.com
JOSE MARIN
jose@fjlabs.com
19 W 24th Street, 10th Floor, New York, NY
www.FJLabs.com
34

36. Selected Completed NOAH Transactions
Focus on Leading European Internet companies
Covering over 400 companies across 25 online
verticals, a broad range of over 500 investors as
well as 100+ online-focused corporates
Deep understanding of industry dynamics
Ability to add value beyond banking advice
Facilitates overall process and minimizes
management distraction
NOAH Advisors is globally well connected
and has direct access to virtually all key
players in the industry
Knowledge of and strong relationships with
potential buyers’ key decision makers
Proactively finds and unlocks attractive
investment opportunities for leading investors
Annual NOAH Conference in its 10th year
Over 40 years of combined relevant M&A experience
Routine execution of M&A and financing transactions
with sizes of several billion euros
30 successfully completed NOAH Advisors transactions
underline successful transfer of M&A competencies to
the Internet sector
Entrepreneurial mind-set, focused on growing the
business and establishing a reputation for excellence
Ability to deliver top results in short time frames
Highly success-based compensation structures align
interests of clients and NOAH Advisors, and demonstrate
conviction to deliver top results
Creative deal solutions
Unique Industry Know-How
Unmatched Network and Relationships
Strong Investment Banking Competence
Full Commitment - We Are Entrepreneurs!
EUROPE’S LEADING INTERNET
CORPORATE FINANCE BOUTIQUE®
The NOAH Advisors Core Banking Team
Marco Rodzynek
Managing Director & Founder
Jan Brandes
Managing Director
Nikhil Parmar
Director
Olek Skwarczek
Associate
Lukas Schlund
Analyst
December 2014 October 2014
Sale of 100% of
for $800m to
Exclusive Financial Advisor to
Fotolia and the Selling Shareholders
Sale of 100% of
for €80m to
Exclusive Financial Advisor to
Trovit and its Shareholders
October 2016
Investment in
Exclusive Financial Advisor to KäuferPortal
and its Shareholders
by
84% Ownership
December 2016
August 2017
Financial Advisor to Silver Lake
Financial Advisor to EMK Capital
Investment in
Acquisition of a Majority Stake in
by
by
at a valuation of $200m
November 2019 July 2019
September 2018
Financial Advisor to MagicLab
Financial Advisor to AU10TIX
and its shareholders
Financial Advisor to 10bis
and its shareholders
Acquisition of a 79% stake in $60m Investment in
Sale of 100% in
by
at a valuation of ~$3 billion
at a valuation of $260m by
for €135m to
10Bis