OPPORTUNITIES FOR CO-INVESTORS & COMPANIES CONVICTION INVESTMENT PARTNERS EXISTS FOR ONE SOLE PURPOSE:

Transcription

1 OPPORTUNITIES FOR CO-INVESTORS & COMPANIES CONVICTION INVESTMENT PARTNERS EXISTS FOR ONE SOLE PURPOSE: To facilitate high risk/high reward investment opportunities for our partners and a select number of high net worth individuals. By pooling our investments we can ensure we have the capacity to follow on in every round from early stage to IPO, to hunt maximum returns.

2 For ambitious, fast growing companies we provide an alternative route to funding versus traditional Venture Capital. The benefits to investee companies of using Conviction's "Just In Time" approach are: - the correct amount of funding is injected when it is needed - better pricing means more funds are raised at a later stage - clear and transparent milestones agreed upfront for subsequent funding rounds. This enables quick funding at a fair price - no cash needed for upfront fees - no monitoring fees are charged ATTRACTING AND RETAINING THE BEST INVESTMENTS WHO ARE CONVICTION INVESTMENT PARTNERS? Andrew Jenkins has been facilitating high net worth individuals' investment needs for over 20 years. He acted as financier for Mimecast from its early days and now he and his consortium of Ultra High Net Worth investors enjoy the exceptional growth achieved in that investment (currently listed on Nasdaq with a market cap $1.8BN). He has also sourced funding and or invested in a number other tech businesses including Oradian (banking software for the developing world), Rota (app for hospitality trade) and Akkroo (event lead capture tool). The same group of 20 investors have tasked Andrew to source further high growth, disruptive tech deals in which they can invest. This inspired Andrew to create Conviction and join forces with friend and fellow investor, Jeremy Middleton. Jeremy co-founded the assistance company Homeserve a FTSE 200 company (Market cap 1.5BN). Over the last 15 years Jeremy has invested in numerous venture capital deals personally and through his family office. All investors are aligned and are aiming for the same thing: to seek out, invest and follow on in one or two high conviction investments with the potential for 50 plus X returns. The plan is to source and offer more Mimecast's! Andrew and Jeremy have spent the last 18 months merging their capacity and resources allowing them to work on a few attractive, live opportunities. To date all transactions have been oversubscribed in a matter of days, therefore interested investors need to get comfortable with any potential investments well ahead of their capital raise.

3 MIMECAST INVESTMENT STORY A previous investment made by Andrew and Jeremy that is the blueprint for all of Conviction's future investment strategy planning. Mimecast is a global online security software company that specialises in cloud-based management. Andrew identified the potential in the company and raised the early stage rounds of funding for Mimecast from IPO 546m 1.5bn 1.8bn 2.2m 11.4m 22.8m 0 Oct-05 Jul-07 Aug-08 Nov-15 Jan-18 He then continued to act as financier and assisted with fundraising all the way through to November 2015 when the company listed on Nasdaq at a valuation of $500M. Mimecast is currently worth $1.8BN. Investors from 2015 have experienced over 100 X growth in their share price. Shares were bought at $0.27 and are currently worth circa $30 as of Jan 2018.* Share price vs equity valuation (m) * Please note that share values can go down as well as up. Past performance should not be relied upon as an indicator of future value. INVESTMENT CRITERIA 50X 20k Disruptive Tech & SaaS Post Revenue Potential 50X plus return Min 20k monthly recurring revenue 3X 18m High growth with min 3x pa Traction: known CAC, churn & LTV 18 months track record High conviction in the team

4 PORTFOLIO Oradian has developed the world s first core banking system designed especially for the micro-finance industry. The business addresses the 2Bn individuals that are "unbanked" in the developing world, providing a solution to financial institutions to service this growing market. The market is currently growing at 15% per annum. The subscription based banking software services 1M users. Annual Recurring Revenue is at $1.6M with impressive growth ambitions in the short and longer term. Growth rate of 4.2 X year on year as at November Andrew began investing in the business in 2016 and is acting Commercial Director. Jeremy invested in the last round which closed in Sep Both plan to follow on and participate in an expected fundraise in Q Akkroo has developed a powerful, SaaS tool that captures leads at exhibitions and conferences. This integrates with sales and marketing functions within a business. AKKROO The business has over 120 enterprise clients with an Annual Recurring Revenue of almost 2M and a current growth rate of 3 X pa. Andrew has personally invested and is the financier for the company. Both Andrew and Jeremy plan to invest in the next round ($2M total raise) which is closing in Q

5 TEAM ANDREW JENKINS Partner Andrew has invested in disruptive tech companies for over 10 years. He works closely with a group of international UHNW investors and family offices. He financed Mimecast for the first 5 years and it is now a $1.8BN Nasdaq listed company. Andrew was previously Head of Private Clients at GAM. Andrew has an eye for spotting an early stage company with unicorn potential. JEREMY MIDDLETON CBE Partner Jeremy runs Middleton Enterprises Ltd, a successful private investment company. Jeremy and his team run 2 highly focused portfolios, one consists of listed equities and the other of early stage venture capital assets. The listed portfolio has compounded at 20% pa since 2014 and the VC portfolio at 30% pa. Jeremy co founded Homeserve plc which is now a FTSE 200 company. Jeremy does not give advice but is happy to discuss his investment rational with prospective co-investors. REBECCA ROBERTS COO Rebecca has extensive experience in Venture Capital investing; private banking; regulatory compliance and working with early stage/start up companies seeking growth funding. While acting as an investment manager for a regional VC firm she has invested in and sat on the Board of numerous early stage companies across a breadth of sectors. Rebecca specialises in investor relations and would be delighted to assist any interested investors. BRETT ROGERS Due Diligence & Investment Analyst Brett has a first Class honours degree in Finance and Investment Management. He is particularly skilled in trend analysis and provides the team with research analysis and recommendations. DAVID ALPROVICH Commercial Investment Analyst With nearly 10 years experience of providing deep dive, objective due diligence and investment analysis for Jeremy, David has a wealth of experience that is highly valuable to the investment decision process. MIKE ELLIOT Financial Investment Analyst A Charted Accountant with numerous years of experience in finance roles across several entrepreneurial businesses. His financial disciplines add an additional dimension to the due diligence and investment recommendation process.

6 MISSION & VISION FUNDING DISRUPTIVE We are looking to emulate the substantial TECHNOLOGY success that founding partner Andrew enjoyed through his investment strategy into Mimecast (online security company currently valued at $1.8Bn on NASDAQ). We are following the same strategy to ensure we go the journey with one or two of the next up and coming unicorns. Our portfolio is extremely narrow. We only back a small handful of businesses at any one time in order to have a significant influence and understanding of the business to protect our and our coinvestors interests. HOW WE WORK We provide the opportunity to invest alongside principals in a limited number of high conviction bets We select companies based on their fit with our criteria We work closely with investee companies to understand their funding needs We carry out due diligence and if we feel there is a large enough prize to be won and we understand how the business will get there we decide to invest We offer our partners an opportunity to invest alongside us, we act as lead investors We take care of all regulatory matters We stay close to the company and provide our partners updates on company growth and next round/exit opportunities We continue to invest through follow on rounds as our investee companies achieve their milestones We do not give advice or charge fees to co-investors who must make their own judgment on the investment case. We cover our operating costs by securing options from investee companies We only present opportunities that we believe in and invest our own money in - we invest with conviction Rebecca Roberts Chief Operating Officer rebecca@convictionip.com convictionip.com Andrew Jenkins Partner andrew@convictionip.com Conviction Investment Partners Limited (FRN ) are an Appointed Representative of Clear Finance Limited (FRN ) who are Authorised and Regulated by the Financial Conduct Authority