Q Prime Unicorn Index Reconstitution Report

Transcription

1 Q Prime Unicorn Index Reconstitution Report Introducing 9 new components to the Index

2 Prime Unicorn Index OVERVIEW The Prime Unicorn Index is an equally-weighted price return index that measures the share price performance of U.S. private companies valued at $500 million or more. The price changes of component companies are derived from publicly available information associated with company transactions, filings, and other disclosures. The index provides empirical data to asset managers and financial advisors interested in tracking today s private capital markets. The index is designed for use in the creation of financial products and as a performance benchmark. RETURN AND RISK Prime Unicorn Index Returns Year Return (%) 2017* 9.29% % % % % % % % % Annualized Volatility* 1 year 4% 3 year 9% 5 year 11% Full History 30% *As of December 31, The Inception Date of the Index is August 17, Historical returns prior to that date are backtested and therefore hypothetical in nature. Past performance is not an indicator of future outcomes. INDEX INFORMATION Component Universe Base Value 100 US private companies valued at $500 million or more Base Date December 31, 2008 Inception Date August 17, 2017 Reconstitution Cycle Currency Calculation Frequency Index Calculation Agent January, April, July, October USD Daily values, distributed weekly Solactive AG INDEX CHARACTERISTICS Number of Components 93 Component Weighting Equal Total Market Value $241,752,297,751 Largest Component $44,271,240,905 Smallest Component $509,154,112 Average Component $2,599,487,008 Median Component $961,249,997 Top 10 Components Valuation (as a % of Total Combined Valuation) 63% Data File Distribution Bloomberg Code Reuters Code Via FTP and PUNICORN.PUNICORN

3 Urban Compass develops a technology-driven real estate platform that enables agents and clients to streamline and transform the process of finding a home. URBAN COMPASS DEAL BREAKDOWN Round Series A Series B Series C Series D Series E Investment Date 9/25/2013 7/17/2014 9/10/2015 8/30/ /3/2017 Investment Amount $28.24 M $40.00 M $55.00 M $75.00 M $ M Direction Not Applicable Up Round Up Round Up Round Up Round Liq. Pref. Not Applicable Pari Passu Pari Passu Pari Passu Pari Passu Liq. Multiple 0-1X 0-1X 0-1X 0-1X 0-1X Stock Type Conv. Convertible Conv. Convertible Conv. Convertible Conv. Convertible Conv. Convertible Anti-Dilution Weighted Avg. Weighted Avg. Weighted Avg. Weighted Avg. Weighted Avg. Redemption No No No No No Dividend Rate Not Stated Not Stated Not Stated Not Stated Not Stated Valuation $127,336,870 $378,174,918 $816,262,191 $966,374,672 $1,672,441,113 Preferred PPS $10.00 $ $40.50 $ $

4 AvidXchange revolutionizes the way companies pay their bills by providing a solution that streamlines the entire Accounts Payable process--from invoice receipt through vendor payment. AVIDXCHANGE DEAL BREAKDOWN Round Series A Series B Series C Series D Series E Series F Invt Date 10/20/2000 3/25/ /9/2012 4/28/ /15/ /16/2017 Invt Amount $3.25 M $2.80 M $0.93 M $10.00 M $157.5 M $302.5 M Direction Not Applicable Down Round Up Round Up Round Up Round Up Round Liq. Pref. Not Applicable Senior Pari Passu Senior Senior Senior Liq. Multiple 0-1X 0-1X 0-1X 0-1X 0-1X 0-1X Stock Type Conv. Convertible Conv. Convertible Conv. Convertible Conv. Convertible Conv. Convertible Conv. Convertible Anti-Dilution Not Stated Not Stated Weighted Avg. Weighted Avg. Weighted Avg. Weighted Avg. Redemption Yes Yes Yes Yes Yes Yes Dividend Rate Not Stated Not Stated Not Stated Not Stated Not Stated Not Stated Valuation $23,250,862 $9,194,593 $20,440,716 $134,975,397 $487,291,240 $1,243,910,659 Preferred PPS $2.00 $ $ $6.82 $17.96 $

5 Discord is a personal computer (PC) gaming company focused on building a voice and text chat application for gamers that works on both desktop and phone. DiscordApp enables users to download the free mobile app to chat on the go or summon their AFK friends by sending a push notification with DISCORD DEAL BREAKDOWN Round Series A Series B Series C Series D Series E Investment Date 11/8/2013 4/13/ /4/2015 6/23/2016 2/14/2017 Investment Amount $8.79 M $6.77 M $20.00 M $23.53 M $47.5 M Direction Not Applicable Up Round Up Round Up Round Up Round Liq. Pref. Not Applicable Pari Passu Pari Passu Pari Passu Pari Passu Liq. Multiple 0-1X 0-1X 0-1X 0-1X 0-1X Stock Type Conv. Convertible Conv. Convertible Conv. Convertible Conv. Convertible Conv. Convertible Anti-Dilution Weighted Avg. Weighted Avg. Weighted Avg. Weighted Avg. Weighted Avg. Redemption No No No No No Dividend Rate Not Stated 8% 8% 8% 8% Valuation $23,338,461 $48,605,670 $108,416,104 $282,283,600 $808,792,639 Preferred PPS $ $ $ $ $

6 Bolt Threads is creating the next generation of performance fibers and fabrics using proprietary breakthroughs in industrial biotechnology. Working at the molecular level, Bolt Threads is transforming the textiles market, turning renewable raw materials into products with outstanding properties that meet specific consumer needs. BOLT THREADS DEAL BREAKDOWN Round Series A Series B Series C Series D Investment Date 8/12/2011 4/11/ /11/2015 1/23/2018 Investment Amount $5.12 M $32.39 M $34.87 M $ M Direction Not Applicable Up Round Up Round Up Round Liq. Pref. Not Applicable Pari Passu Pari Passu Pari Passu Liq. Multiple 0-1X 0-1X 0-1X 0-1X Stock Type Conv. Convertible Conv. Convertible Conv. Convertible Conv. Convertible Anti-Dilution Weighted Avg. Weighted Avg. Weighted Avg. Weighted Avg. Redemption No No No No Dividend Rate 8% 8% 8% 8% Valuation $15,913,640 $95,864,891 $280,511,838 $677,311,154 Preferred PPS $ $ $ $

7 Proterra is a leading designer and manufacturer of zero-emission heavy-duty vehicles, enabling bus fleet operators to significantly reduce operating costs while delivering clean, quiet transportation to local communities across the United States. PROTERRA DEAL BREAKDOWN Round Series 1 Series 2 Series 3 Series 4 Series 5 Series 6 Invt Date 6/9/ /5/ /23/2013 6/17/ /10/2016 3/14/2017 Invt Amount $37.70 M $23.00 M $34.21 $30.00 M $ M $55.00 M Direction Not Applicable Up Round Up Round Down Round Up Round Up Round Liq. Pref. Not Applicable Pari Passu Pari Passu Pari Passu Senior Pari Passu Liq. Multiple 0-1X 0-1X 0-1X 0-1X 0-1X 0-1X Stock Type Conv. Convertible Conv. Convertible Conv. Convertible Conv. Convertible Conv. Convertible Conv. Convertible Anti-Dilution Weighted Avg. Weighted Avg. Weighted Avg. Weighted Avg. Weighted Avg. Weighted Avg. Redemption No No No No No No Dividend Rate 8% 8% 8% 8% 8% 8% Valuation $49,515,791 $101,634,807 $158,611,839 $203,431,033 $467,026,832 $583,050,748 Preferred PPS $ $ $ $ $ $

8 WellTok has developed the 'CafeWell' Health Optimization Platform which enables population health managers to guide and incentivize consumers to optimize their health. The platform assists payers, health systems, accountable care organizations, and other population health managers in connecting with their members and rewarding them for healthy physical, emotional, and financial behaviors. WELLTOK DEAL BREAKDOWN Round Series B Series C Series D Series D-1 Series D-2 Series D-3/D-4 Series E/E-1 Series E-2, E-3, E-4 Invt Date 3/26/ /13/ /1/2014 5/8/2015 8/5/ /20/2015 9/15/ /5/2017 Invt Amt $18.71 $22.09 M $25.00 M $21.34 M $45.00 M $38.00 M $43.54 M $73.02 M Direction Down Round Up Round Up Round Up Round Up Round Flat Round Down Round Flat Round Liq. Pref. Senior Senior Senior Pari Passu Senior Pari Passu Senior Senior Liq. Multiple 0-1X 0-1X 0-1X 0-1X 0-1X 0-1X 0-1X 0-1X Stock Type NO Cap Anti-Dilution Weighted Avg. Weighted Avg. Weighted Avg. Weighted Avg. Weighted Avg. Weighted Avg. Weighted Avg. Weighted Avg. Redemption Yes Yes Yes Yes Yes Yes Yes No Dividend Rate 8% 8% 8% 8% 8% 8% 8% 8% Valuation $43,108,819 $122,427,716 $216,235,520 $284,593,747 $371,140,674 $415,846,379 $468,612,104 $554,520,409 Preferred PPS $2.70 $6.04 $8.53 $ $ $ $ $

9 Flatiron Health is a healthcare technology and services company focused on accelerating cancer research and improving patient care. Flatiron s platform enables cancer researchers and care providers to learn from the experience of every patient. FLATIRON HEALTH DEAL BREAKDOWN Round Series A Series B Series C Investment Date 1/15/2013 5/7/2014 1/8/2016 Investment Amount $8.00 M $ M $ M Direction Not Applicable Down Round Up Round Liquidation Preference Not Applicable Pari Passu Pari Passu Liquidation Multiple 0-1X 0-1X 0-1X Stock Type Conventional Convertible Conventional Convertible Conventional Convertible Anti-Dilution Weighted Average Weighted Average Weighted Average Redemption No No No Dividend Rate 8% 8% 8% Valuation - - $1,260,901,661 Preferred PPS $ $ $6.5590

10 Health Catalyst is a next-generation data, analytics, and decision-support company committed to being a catalyst for massive, sustained improvements in healthcare outcomes. Health Catalyst's enterprise data warehouse (EDW) and analytics platform helps improve quality, add efficiency and lower costs. The company uses a late-binding bus architecture allowing for the adaptive data model to be agile, flexible, and implemented in a matter of weeks compared to the months or years traditional approaches require. HEALTH CATALYST DEAL BREAKDOWN Round Series A Series B Series C Series D Series E Invt Date 9/22/2011 2/28/ /30/2014 3/17/2015 2/9/2016 Invt Amount $14.35 M $39.16 M $54.52 M $70.00 M $70.00 M Direction Not Applicable Up Round Up Round Up Round Up Round Liq. Pref. Not Applicable Pari Passu Pari Passu Pari Passu Pari Passu Liq. Multiple 0-1X 0-1X 0-1X 0-1X 0-1X Stock Type Conv. Convertible Conv. Convertible Conv. Convertible Conv. Convertible Conv. Convertible Anti-Dilution Weighted Avg. Weighted Avg. Weighted Avg. Weighted Avg. Weighted Avg. Redemption Yes Yes Yes Yes Yes Dividend Rate Not Stated Not Stated Not Stated Not Stated Not Stated Valuation $638,640,519 Preferred PPS $2.00 $3.926 $5.686 $ $10.599

11 Pindrop Security provides enterprise solutions to protect enterprise call centers and voice communications. Pindrop s unique Acoustic Fingerprinting technology is the first of its kind to analyze and fingerprint individual phone calls, providing the caller s true location and calling device and matching them to Pindrop s CallDNA fraud database. PINDROP SECURITY DEAL BREAKDOWN Round Series A Series B Series C Investment Date 6/12/2013 2/17/2015 3/15/2017 Investment Amount $10.87 M $30.00 M $85.80 M Direction Not Applicable Up Round Up Round Liquidation Preference Not Applicable Pari Passu Pari Passu Liquidation Multiple 0-1X 0-1X 0-1X Stock Type Conventional Convertible Conventional Convertible Conventional Convertible Anti-Dilution Weighted Average Weighted Average Weighted Average Redemption No No No Dividend Rate 8% 8% 8% Valuation - - $615,577,449 Preferred PPS $ $ $

12 DEFINITION OF TERMS Preferred Stock - A class of capital stock that may pay dividends at a specified rate and that has priority over common stock in the payment of dividends and the liquidation of assets. Many venture capital investments use preferred stock as their investment vehicle. This preferred stock is convertible into common stock at the time of an IPO. Round of Financing The Series of Preferred or Common that is being authorized and issued in the current round. Round Direction Direction of the series preferred being issued based off of the current series issue price VS. the prior series issue price: UP = current round is priced HIGHER than the prior round FLAT = current round is priced the SAME as the prior round DOWN = current round is priced LOWER than the prior round Liquidation Preference the order at which the assets or funds are dispersed upon a liquidation, dissolution, or winding up of a corporation, either voluntary or involuntary Senior - the Series of Preferred being issued is SENIOR in liquidation preference to all other Preferred Stock and Common Stock Pari Passu - the Series of Preferred being issued shares equally with one or more other Series of Preferred Stock but prior to the Common Stock Junior - the Series of Preferred being issued is JUNIOR to one or Series of Preferred N/A - Not Applicable is used if there is not a previous round of Preferred issued (EX: Series A round) Multiple of the Liquidation Preference The amount per share that a holder of a given series of Preferred Stock will receive prior to distribution of amounts to holders of other series of Preferred Stock or Common Stock based on the amount invested. This is usually designated as a multiple of the Issue Price, for example 2X or 3X. Type of Preferred Stock Preferred Stock - A Preferred stock in which the holder is entitled to receive the appropriate liquidation preference and after all payments have been made to the various Series of the Preferred Stock can participate in receiving any remaining funds or assets, on an as if converted basis, alongside the Common Stock shareholders. Conventional Convertible Preferred - non-, can convert to common and receive Pro Rata distribution, but CANNOT participate with the common on an as if converted basis. Liquidation Cap The Cap or Max Participation amount that the Preferred Stock can received when participating, usually designated as a multiple of the Issue Price, for example 2X or 3X. Anti-Dilution Contractual measures that allow investors to keep a constant share of a firm's equity in light of subsequent equity issues. These may give investors preemptive rights to purchase new stock at the offering price. Weighted Average - The investor's conversion price is reduced, and thus the number of common shares received on conversion increased, in the case of a down round; it takes into account both: (a) the reduced price and, (b) how many shares (or rights) are issued in the dilutive financing. Full Ratchet - The sale of a single share at a price less than the favored investors paid reduces the conversion price of the favored investors' convertible preferred stock "to the penny". For example, from $1.00 to 50 cents, regardless of the number of lower priced shares sold.

13 TOP 10 COMPONENTS (RANKED BY VALUATION) Company Sector Valuation* Weight (%)* Uber Technologies, Inc. Software $44,271,240, % AirBnb, Inc. Consumer Products and Services, Software $29,252,091, % Space Exploration Technologies Corp Industrial/Energy $18,402,468, % WeWork Companies, Inc. Business Products and Services $11,255,230, % Pinterest, Inc. Media and Entertainment, Software $10,447,526, % Lyft, Inc. Consumer Products and Services, Software $9,623,402, % Dropbox Inc Software $9,379,097, % Magic Leap, Inc. Computers and Peripherals, Software $4,984,103, % Social Finance, Inc. Financial Services $4,497,866, % Tanium Inc. IT Services, Software $3,847,707, % * As of December 31, 2017 INDEX METHODOLOGY The rules for component eligibility, index composition, calculation, and maintenance are based on the Prime Unicorn Index Methodology. The index universe includes all US private companies with market valuations that are equal to or greater than $500 million. Component eligibility and price inputs are derived from publicly available information, such as federal filings (e.g., Form D), state filings (e.g., amendments to Certificates of Incorporation, Limited Offering Exemption Notices, Employee Plan Exemption Notices) and company disclosures (e.g., press releases, other public statements). The index calculation model is based on actual or derived prices of preferred stock and common stock, which are validated by the index operations team. Corporate actions, such as bankruptcies, stock splits, reorganizations, mergers and acquisitions, and spinoffs are monitored on a daily basis. Index values are calculated for each day, but distributed on a weekly basis each Thursday. The index is reviewed and reconstituted on a quarterly basis on the third Wednesday of each January, April, July and October. For more detailed methodology information, please see the Prime Unicorn Index Methodology Guide. The Prime Unicorn Index was designed and developed by Lagniappe Labs and Level ETF Ventures Prime Indexes group. The Prime Unicorn Index Committee provides oversight of index calculation and maintenance, as well as ongoing evaluation of the index methodology and related rules. Disclaimer The Prime Unicorn Index is owned by Lagniappe Labs ( LL ). All rights reserved. Lagniappe Labs and Prime Unicorn Index are trademarks of LL. Redistribution, reproduction and/or photocopying in whole or in part are prohibited without written permission. This document does not constitute an offer of services in jurisdictions where LL or its respective affiliates do not have the necessary licenses. All information provided by LL is impersonal and not tailored to the needs of any person, entity or group of persons. LL receives compensation in connection with licensing its indexes to third parties. Past performance of an index is not a guarantee of future results. LL does not sponsor, endorse, sell, promote or manage any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. These materials have been prepared solely for informational purposes based upon information generally available to the public and from sources believed to be reliable. THE CONTENT IS PROVIDED ON AN AS IS BASIS, LL DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. Please visit for full disclaimers associated with the index and website.