#1CLEARBANC Growth Capital for the New Economy#2MASSIVE TRENDS EMERGING Direct to Consumer DTC brands have taken significant market share from incumbents by producing simpler product lines and owning the customer relationship. This has lead to the fall of CPG giants across many categories These brands are able to scale faster and capture more margin than consumer brands ever have in the past Market Share Razor Market US 30% 22.5% 15% 7.5% 2013 ******** Harry's+DTC 2018 Traditional CPG Gillette's share of the market fell from 70% in 2013 to 54% in 2016 - Dollar Shave Club and Harry's combined US share rose from 72% to 12.2% in 2017 Revenue (Billions) Online Mattress Market $3B 25B Home *** xXx $15B $Q.75B 2013 PASTORAL 2018 There has been a huge rise of DTC mattress in the box companies like Casper, Nectar (a Clearbanc customer), Leesa & Purple Casper has stolen almost 10% of the global mattress market in less than 5 years#3MASSIVE TRENDS EMERGING Capital Markets are changing for Entrepreneurs Founders are building large businesses without raising traditional VC Companies are waiting to go public Direct Listing vs IPO like Spotify and Slack Founders staying in control longer VC growth is at an all-time high in terms total dollars invested in private tech companies Rise of mega funds like Softbank and Sequoia ICOS raising more money than venture or IPOs Slack Follows Spotify in Pursuing Direct Listing Route WÁS CO a risk than a sonora PC, the colabation and messaging Watomi company has little to Sacchiging public Acompang bing potomed the con Grow fast or die slow: Why unicorns are staying private Hy Hegen Kata More Start-Ups Have an Unfamiliar Message for Venture Capitalists: Get Lost#4Founders have only had two ways to fund their companies EQUITY Early Stage Late Stage 10%-35% Dilution 3-6 months to fundraise 10%-35% Dilution Loss of board control 3-6 months to fundraise DEBT Personal Guarantees Security on Assets VENTURE DEBT Covenants Warrants Cash Collateral Soft Power (MAC and investor confidence clauses) Only an option if you raise equity The only options are to give up a piece of your company or give a personal guarantee#566 40% of all VC dollars go directly into Facebook and Google Chamath Palihapitya Founder, Social Capital "" THIS MEANS FOUNDERS ARE USING THE MOST EXPENSIVE CAPITAL (EQUITY) TO DO SOMETHING THAT SHOULD GENERATE MEASURABLE, PREDICTABLE GROWTH#6CLEARBANC Product Revenue Share Agreement -6% -12% flat fee . No fixed payment amounts . No term or maturity date Daily ACH debits Less onerous for founders No credit check No personal guarantee No covenants -Sits between equity and debt . PENE Your Store Junery 10K to $10M & pf FB. Google. Platerest= of Na $100. 5% Pays back the funds borrowed+Cleartiane Fee 93% Goes to Your Business #bufke One flat fee, no interest Build Ongoing Relationship We'll kong Nading you Apply in minutes#7Clearbanc developed the first revenue share agreement for funding repeatable growth like digital ad spend And founders LOVED it Will fund $1B in 2019 Over 1000 companies funded Funded $143M USD in 2018 21% CMGR 1702020 2017-Q1 2017-02 940% CAGR 2017-Q3 2017-04 2018-01 2018-02 2018-03 $17M $143M 2018-04 2019-QI 2019-02 2019-03 $1B 2019-04#8CLEARBANC A better alternative across all forms of financing Time Amount Risks The Most Affordable Capital You Will Find Clearbanc 6% Flat Fee 24 hours STOK - S10M None Venture Capital Ownership of your company Months - Years $5M - $100M You lose control of your company Bank Loan Compounding interest rates + personal guarantees Weeks - Months $10K - $100K You lose your house Credit Cards SE Teaser rates + hidden fees Days - Weeks S5K - $100K You lose your good credit score#9CLEARBANC Clearbanc is creating a whole new asset class While VC funding can be an important part of a company's growth plans, it should not be used to fund repeatable parts of growth Clearbanc is creating a new asset class to fund the predictable, measurable parts of growth like FB and Google ads As a company increases in value over time the cost of Clearbanc remains flat while the cost of equity increase proportionally to an increase in valuation with Cost of Equity vs Clearbanc Clearbanc VC Route Value of Lost Equity Increase in valuation over time Since the initial funding round, Uber has increased over 4,000 times in value, making a $250,000 investment worth more than $1,100,000,000 That's not a typo. Most founders never appreciate the effective APR of equity#10CURRENT VERTICAL E-Commerce Retail e-commerce sales in North America continue to grow by 15.4% CAGR and globally by 12.6% CAGR * Over 300k qualified e-commerce businesses in the US and 1.2M globally doing: More than $100k of annual revenue - Operating over 6 months HOME * Repeatable ad spend with 2:1 ROAS Huge opportunity for cash flow positive businesses E-commerce brands are spending 40%-60% of their revenue on customer acquisition Total Addressable Market $2.3T Global $504B USA#11FOUNDERS Who do we fund? VINEBOX Subscription wine box Brideside Indochino for bridesmaid dresses Globe In Subscription box for lifestyle products BLUEPRINT REGISTRY A universal gift registry for the 21st century WATCHGANG Subscription watch club $ HUNT KILLER Subscription murder mystery boo ταρρ worlds smartest padlock with fingerprint sensor PUBLIC GOODS Healthy and affordable DTC brand nectar DTC Mattress in a box Buffy The most comfortable comforter on earth LE TOTE clothing rental subscription for top brands HONEYBUM Leading women fashion#12CLEARBANC Why founders love us FAST Connect accounts and get funded in 24 hours 101 TRANSPARENT Know the total cost of capital before you sign $$$ SCALE Clearbanc can fund SIOKIOSIOM 88 NETWORK Access to all the network benefits of a VC through our Venture Partners AMARAN DISCOUNTS Cash back and exclusive perks#13CLEARBANC Democratizing access to capital We've invested in 1.000 companies across 43 states who will generate more than $15 billion in revenue this year LIG At a time when only 2.2% of all US venture capital goes to female- founded companies, Clearbanc has funded 8X more women than the venture capital industry average#14CLEARBANC Traction More Data PENY Better Underwriting Lower Loss Rate 2018-Q1 2018-02 Loss Rate 2018-03 2018-04 A 2019-Q1 We've lowered our loss rate while sustaining strong growth#15SUPPORTED BY Venture Partners The leaders from e-commerce who are excited to support our founders GARY VAYNERCHUK CIO OF VATNEEMIDU MICHELE ROMANOW OUR VENTURE PARTNERS RUMA BOSE SERIAL ENTREPRENEUR MORGAN HIRSH FOUNDER OF PUBLIC GOODS RYAN HOOVER FOUNDER OF PRODUCT HUNT JESSE HORWITZ COFOUNDER OF HUNTE JACK ABRAHAM FOUNDER OF ATOMIC ALI HAMED#16CLEARBANC'S TEAM Co-Founders Michele Romanow Co-Founder -------BERESENTATI Andrew D'Souza Co-Founder Serial Entrepreneur Media Personality, Board Director Youngest Dragon on CBCS Dragons' Den (Canadian version of Shark Tank) and recognoved nationally as a Canadian VC TechVibes Angel Investor of the Year Award over 12 portfolio companies Co-Founder SnapSaves Cacquired by Groupon in 2004), a marketplace for CPGS. Gameredover IM downloads/week Built relationships with the largest CPGS including PSG, Unilever, Nestle Pepsi. Kraft, J&J Starbucks & AB InBev Senior marketing executive for Groupon post acquisition Co-Founded Buytopla in 2011 which has became a Canadian ecommerce leader by acquiring over 10 companies. The marketplace has run over 100k deals for their M subscribers Acquired by Transformational Capital. Neverrassed external capital Previousty Director of Corporate Strategy & Business Improvement for Sears Canada Board of Directors: Vail Resorts (NYSE. MTN $8b marketcap). Prestell (TSX FRID League of Innovatoes with Ryan Holmes, CEQ Hootsuite, SHAD (Casadian charity for exceptional high school students) Queen's Business School. Previously served on the Board of Whistler Blackcomb (SxWB Acquired by Vail Resorts) Co-Founded the Canadian Entrepreneurship Initiative non-profit with Entrepreneur in Residence with Richard Branson Only Canadian on Forbes. "Millennials on a Mission list, 100 Most Powerful Women in Canada's Top 40 Under 40, EY Entrepreneur of the Year finalist and RBC Canadian Entrepreneur Finalist @ Regular commentator on Bloomberg Queen's University MBA and Civil Engineer - Serial Entrepreneur, Angel Investor * Raised over $50M across 3 companies from top Sulicon Valley investors * Hired over 150 people including senior executives from public companies. H President, Nymi-Raised $15M Series A closed partnerships with Mastercard, Virgin, Four Seasons and banks +000, Top Hat-Grew team from 10-100, Grew revenue from <$IM-$10M+ Recently closed $22M Series C from Union Square Ventures *Angel Investor & Advisor to fintech portfolio: WealthSimple, StreetContet, kik. Joist, Tulip Retail, CareGuide raised over $300M for portfolio companies • Business Analyst, McKinsey (Pinancial Services Medial · Board Member, C100 Advisory Council, Google Sidewalk Labs Clobe &Mail contributor Report on Small Business. Systems Design Engineering, University of Waterloo GROUPON SnapSavers Queens buytopia.ca TENAG TOP HAT nymi McKinsey & Company Wealtinin WATERLOO kik- STREET#17Appendix#18CASE STUDY Vinebox Vinebox AY-Combinator backed wine discovery subscription service. VINEBOX Matt had discovered that he was able to acquire customers profitably through paid ads on Facebook, Instagram & Pinterest. Matt wanted to increase his marketing budget in 04 and maximize his revenue through all of the above Vinebox was approved for $150,000 from Clearanc which Matt used to fund his Facebook, Instagram, & Pinterest Marketing Vinebox revenues grew over 596% in Q4 of 2017 Vinobox realized a 1,101% ROI on the capital invested Vinebox was able to secure a $5.3M Series A at double the expected valuation "With the capital Cloarbanc provided, we were able to double down on our marketing efforts, amplifying the channels that were already working well for us. - Matt Dukes, CEO & Cofounder Vinebox Inc al 150K Total Funding 595% Growth in Revenue 1101% ROI FB Marketing Used to Fund New Subscribers#19CASE STUDY Coastal Co. Coastal Co. A subscription service provider of premium, coast-inspired apparel & accessories. Since switching over to a quarterly subscription model, Kevin was able to lower his customer acquisition cost to below the average order value generated on first purchase. "No-brainer" for Coastal Co. to accelerate their marketing as they are able to acquire customers profitably on the first purchase and profit from increased customer lifetime value. Coastal Co. will gain an estimated 8.8k new subscribers, generating S4M of LTV over the next 12 months assuming constant revenue per subscriber Paying 6% fee to generate $4M of LTV results in an effective cost margin of 0.45% For every dollar Clarbanc provides in advertising spend, Kevin will be able to generate $2+ in contribution margin, thereby growing his top and bottom line significantly as a result of the capital provided by us COASTAL CO. 300K Total Funding LTV Gained (NTM) FB Marketing Use of Proceeds 8.8K Now Subscribers ALOHA