# Profoundd archive — Epstein Files # Bates number: EFTA01123862 # Title: VALAR VENTURES # Dataset: 9 # Pages: 11 # Images: 11 detected # Tags: epstein, doj, dataset-9, image-described # Source PDF: https://profoundd.com/epstein-docs/EFTA01123862/download # Doc viewer: https://profoundd.com/epstein-docs/EFTA01123862 # # Text below is what Profoundd has extracted from the source PDF. # 'ocr-enriched' tag means OCR was applied to scan-only pages. # Image descriptions are AI-generated factual captions (llava:13b). #---------------------------------------------------------------------- === SUMMARY === • VALAR VENTURES Fall 2015 Update EFTA01123862 VALAR VENTURES Fall 2015 Update The past two quarters have seen a lot of activity at Valar. Although still early days, Fund 2's existing portfolio companies are tracking nicely. Number26 has reached nearly 50,00O users since launching in February and transaction activity is scaling disproportionally faster. EyeEm has increased sales of its images through its marketplace partner, Getty Images, 5x since we made our investment earlier this year. They h === EXTRACTED TEXT === • VALAR VENTURES Fall 2015 Update EFTA01123862 VALAR VENTURES Fall 2015 Update The past two quarters have seen a lot of activity at Valar. Although still early days, Fund 2's existing portfolio companies are tracking nicely. Number26 has reached nearly 50,00O users since launching in February and transaction activity is scaling disproportionally faster. EyeEm has increased sales of its images through its marketplace partner, Getty Images, 5x since we made our investment earlier this year. They have now also launched their own marketplace in six countries, including the United States. Granify has more than doubled its team and multiplied its committed pipeline by 9x in the past two quarters. We've also made two new major investments this quarter, including the Fund's largest investment to date - a $12 million Series B investment in Montreal-based Breather - and the Fund's smallest major investment so far - a $2 million Series Seed investment in New York- based Trading Ticket. We are excited about the prospects for both of these companies and teams, and believe they are strong additions to the Fund, including in terms of stage and sector. Details on each investment and related press articles are attached. With the closing of these new investments, roughly $40 million of Fund 2 has now been invested, which is broadly in line with our expectation of investing around $50 million per year in new investments. As Fund 2 is now over 70% called and reserved for follow-on investments, we are in the process of raising Fund 3, with a first closing expected prior to the end of this year and a first capital call after the New Year (i.e., a 2016 vintage fund). Fund 3 will have a target of $200 million in capital commitments, with a $250 million hard cap. Fund 3 will optimally be as large as Funds 1 and 2 combined, which, among other things, should allow for the right amount of portfolio diversification for our core strategy of leading Series A and Series B financing rounds (i.e..12-14 major investments in the Fund with initial check sizes generally within the $5 million-$10 million range). We expect that our existing investors in Fund 2 will participate substantially in Fund 3 and we are looking forward to adding a select number of new investors with whom we have been building relationships over the past two years. Fund 1 Highlights Inception: October 2010 Total Invested: $93.6M Total Gross & Net Values: $287.7M / $239.3M Total Gross & Net Multiples: 31x /2.6x Gross & Net IRRs: 65.2% / 53.0% % of Fund Invested/Reserved: 100% Fund 2 Highlights Inception: Total Capital Commitments: Total Invested: Current Investment Value: Gross & Net Multiples: % of Fund Invested/Reserved: January 2015 $102M $38.7M $39.4M 1.0x/1.0x 71% VALAR VENTURES - FALL 2015 UPDATE CONFIDENTIAL & TRADE SECRET 12 EFTA01123863 VALAR VENTURES In terms of team activity, the past few months have been busy with trips to Canada, Utah and many parts of Europe. As a result of our active travel schedule, we've been able to build on our existing relationships with many of the top early-stage investors in our usual markets of London and Berlin. while also adding new relationships in places like Amsterdam, Prague. Vienna and Montreal. Our positioning and growing track record as a Series A/ Series B investor with deep US and Silicon Valley connections is compelling to local firms and we continue to see high quality dealflow as a result. In particular, we believe that the startup ecosystems in our primary markets continue to mature at a rapid pace. One recent indicator of this is the increasing amount of seed stage and early Series A capital available across Europe. We have noted several new funds being formed recently (e.g., Mosaic. Blue Yard) and existing firms closing on larger funds (e.g.. Earlybird. Lakestar). We believe this is both evidence of the validity of our core thesis and deepens the opportunity set by increasing the breadth and depth of the early-stage funding necessary to consistently produce the multi-billion dollar businesses required to generate outsized returns in each vintage year. Finally, in hiring news, in June we added a second associate to our investment team. John Tenet, who joined us from Allen & Company, where he spent three years in that firm's Capital Markets and Investment Management Divisions. Together with Mike Bosserman (hired in January). John is focused on sourcing and evaluating investment opportunities and helping our existing portfolio companies. John has had an immediate impact, bringing in some interesting investment opportunities, including one that is now in an advanced stage of due diligence. We expect that one area of increasing focus for both John and Mike will be in New York City, where our proximity should give us an advantage over Silicon Valley-based firms and our global network differentiates us from other New York-based firms. Going forward, we expect our funds may include a meaningful amount of New York-based investments, providing a degree of scalability to our investment team without sacrificing the core advantages of remaining lean. As always, we are deeply grateful for the confidence you've placed in us. We look forward to connecting in person with many of you this Fall. This document is confidential, trade secret. and not for further circulation. This document is informational and is not an offer or solicitation to buy, sell or Mid any securities. As used herein, "Fund r refers to all funds and investment vehicles managed by Valar Ventures Management LLC prior to the formation of Valar Global Fund 2, on an aggregate basis. Figures presented for Fund I are unaudited estimates in USD as of 6/30/2015. Net figures were calculated by reducing gross profits by a flat 25% for hypothetical management fees. expenses. and carry. Figures presented for Fund 2 are unaudited estimates in USD as of 9/10/2015, in order to include investments made following the end of the prior quarter. VALAR VENTURES- FALL 2O15 UPDATE CONFIDENTIAL 8, TRADE SECRET 13 EFTA01123864 VALAR VENTURES New Investments *breather Headquarters: Montreal Company Description Security Held: Series B-2 Preferred Shares Breather operates a marketplace for branded, high-design, private office spaces (referred to as "Breathers") that fill a need for a short term, quiet place to work, Investment Date: 9/10/2015 meet or relax. Round Size: $18,900,000 Pre-Money Valuation: $ 80,000,000 Fund II Investment: $12,000,000 Figures as of 9/10/2015. Velar Investment Thesis Until now, the need for a place to work on the go has been filled by a mix of coffee shops, parks, airport lounges, bars, church basements and similar shared spaces. Through Breather's mobile app and website, users can book, on an hourly basis, beautiful, private spaces that are equipped with fast Wi-Fi and air conditioning. As work culture undergoes a dramatic shift from traditionally large employers with rigid office hours to sole proprietorships and more flexible working arrangements, the Breather marketplace fills a growing need for a consistent, trusted brand in on-demand work space. A confluence of factors make the company's offering possible: smart phone ubiquity, decentralized workforces, internet-enabled locks, and increased familiarity and appetite among consumers for on-demand services. Financing History Breather raised a $1.8M Seed round in July 2013, led by Real Ventures. In July 2014, the company raised a $6M Series A, led by RRE Ventures, with participation from SOS Ventures and Real Ventures. Breather also raised a supplementary $1M convertible note from Slow Ventures shortly thereafter. VALAR VENTURES - FALL 2015 UPDATE CONFIDENTIAL & TRADE SECRET 14 EFTA01123865 VALAR VENTURES TRADE IT Headquarters: New York Security Held: Series Seed Preferred Shares Investment Date: 7/10/2015 Round Size: $ 4,000,000 Pre-Money Valuation: $12,000,000 Fund II Investment: $ 2,000,000 Figures as of 9/10/2015. Company Description Trading Ticket (dba Tradelt) facilitates quick and secure online stock trading through any website or app. Valar Investment Thesis Despite the fact that many online brokerages were built as a disruptive force to main street banks, the speed with which technology has improved has already started to put them in the rear window in terms of innovation - particularly with respect to the migration to mobile. In addition, some large banks with significant brokerage operations still have not migrated online, even though their target customer base requires online trading ability. Trading Ticket and its API solve these pain points by offering a simple user interface that can plug into any website or content, allowing users to buy or sell securities through their preferred broker and connecting major brokerage services with the places and times their customers often make financial decisions - while reading financial content or viewing their portfolio online and within mobile applications. Financing History Prior to leading Trading Ticket's Series Seed Preferred financing round, Valar participated in Trading Ticket's $1M pre-seed round in April 2015. VALAR VENTURES - FALL 2015 UPDATE CONFIDENTIAL 8 TRADE SECRET 15 EFTA01123866 F9 TIC , t . , Let us know. News - Video- Events- CrunchBase „s f Iat P in Search DISIMWIF W The Come:Sam Nes Seim • Disrupt Sc San Next week Go Your Tickets Ntror C2=1 Cal NersheYs 3D Printer Prints Chocolate Snapchat Starts Charging $0.99 For 3 Replays. AddS Face Effect "tense." Talking (About Tech Diversity) Is Hard It I 4•Year•Old Boy Arremed For Bringing Homemade Clock To School A Case Study Of Startup Failure adHersheys Chocolate 3D Printer whips Up Any Sweet Design You want Facebook is Building An Empathy Button. Not Here's How It Could Work Breather Raises $2oM From Peter Thiel's Valar Ventures To Expand Its On-Demand Private Room Business 295 la InieilliwOlm fidithE Today is a good day Breather, the ondemand private room service has raised 120M led by Peter Thiel's Velar Ventures. The series B brings Breathers full raise to S27M. This round also had participation from Real Ventures, RRE Ventures, Slow Ventures and SOS Ventures. Valar will join the board. The Breather rooms were set up as *secret places- within cities like New York that allow you to get work done, have meetings or whatever you'd rather not do at a Starbucks. The best usecase is when you're traveling, because sometimes you just need to sit down with some WiFi at a place that's not a coffee shop or a hotel. Its app lets you find a room, pay and unlock the door. I chatted with Breathers co-founder and CEO Julien Smith about how far the business has come and what's on deck next for the company that got through the initial giggles about what would be going on its rooms. The immediate plan, Smith says is: ^New cities, marketing, growing existing cities. We really believe there can be a unit like this in every commercial building in America. Completely serious? CrunchBase Peter Thiel 8:0 Pee Thal it •tnrytology awry...on, an, ervivol. weeit gsneclatterbon lot imcnitirei in tinny e,0 sunup inrite Todrypeis .110m, ai pt MtetCe 04 the Pefra, ',MU a enUti,reneun. as wet as lot waresnp old ceennentrology deka vet,' store economK CrICKluteCt, rte worts to accelerate inriOni:Cn to pre .tor non a ons ey denbtrig and rtangprorn4r. teoinciogi • RRE Ventures Starbucks Valar ventures Breather TC NEWSLETTERS TechCrunch 'IC Week-in- Daily Review Our top TOp Vents of headlines the week Delivered di* Delivered weekly CrunchBase Daily The 'atesl View More Neat Stery Follow • • • EFTA01123867 TCNews Startups Mobile Gadgets Enterprise Social Europe Trending ,aal Apple Boogie Teethe.* SOaCeX Tide Nearly A Full Uber Funding In Contracts oklik The Pod Pro Will Keep Both Your Apple Watch And &hone Charged !IL Typeform Gets 11SM To Expand its API For User interaction Right now the average Breather is booked for 2« hours, but can go from 30 minutes to an entire day. Smith also says *thousands' of bookings roll in weekly. TC: how has the business changed since you started it? JS: Wow. so much. I had a lot of ideas about what the company would be before we began, but they were basically just guesses. We just had a thesis that pm/ate space would be useful to people (if it were affordable and nice) and we didn't think with too much intent about what the audience would be. The service basically took off Immediately after we launched, so we clarified who we are speaking to really quickly. We know the audience better, we know how to talk about the product we know what kind of spaces people want and for what reason, we know how the operations work. etc. etc. We started with a huge emptiness in terms of our understanding and just an optimistic idea. lucky for us. we turned out to be pretty right. TC: Are there any surprise uses of breathers that you're a fan of? $5: Multiple people have proposed in breathers - that was a huge surprise. People use them for meetups all the time, and although that's pretty commonplace, we were surprised to see it. Women use it to breast-feed. which makes sense. and there are church groups as well. Music videos and documentaries for Netflix have been shot in them. famous actors have used them to rehearse for big movies. Press previews and little fashion shows. All kinds of things. People even use them for training sessions for new employees. TC: If someone else were to try to get into the space, what difficulty would they have? JS: The network effects in this business are very, very strong, perhaps even stronger than Uber, because location, quality, and trust are so important to us getting a booking. A car can move, but rooms don't, so the same way you always go to the closest, most convenient coffee shop. and wont go if it's too far away, we have to be very. VERY close to the user for the service to be effective for them. 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