Doma SPAC Presentation Deck

Summary of Risks (cont'd) Risks Related to Doma's Business COVID-19 has adversely affected our business and may continue to adversely affect our business. ● · ● ● . ● . ● . ● . ● We have a history of net losses and could continue to incur substantial net losses in the future. Our future growth and profitability depend in part on our ability to successfully operate in the highly competitive real estate and insurance industries. Our success and ability to grow our business depend on retaining and expanding our S&EA partner base. If we fail to add new S&EA partners or retain current S&EA partners, our business, revenue, operating results and financial condition could be harmed. Our success depends to a significant extent on the timely roll out of our machine intelligence technology across our centralized operations and branch footprint. Our brand may not become as widely known or accepted as incumbents' brands or our brand may become tarnished. We have a limited operating history and a novel business model. This makes it difficult to evaluate our current business performance and growth prospects. Acquisitions or investments could disrupt our business and harm our financial condition. If we are unable to expand our product offerings, our prospects for future growth may be adversely affected. Our product development cycles are complex, and we may incur significant expenses before we generate revenues, if any, from new products. We may require additional capital to support business growth or to satisfy our regulatory capital and surplus requirements, and this capital might not be available on acceptable terms, if at all. We collect, process, store, share, disclose and use consumer information and other data and are subject to stringent and changing privacy laws, regulations and standards, policies and contractual obligations. Our actual or perceived failure to protect such information and data, respect consumers' privacy or comply with data privacy and security laws and regulations and our policies and contractual obligations could damage our reputation and brand and harm our business and operating results. Adverse changes in economic conditions, especially those affecting the levels of real estate and mortgage activity, may reduce our revenues. If the security of the personal information that we (or our vendors) collect, store or process is compromised or is otherwise accessed without authorization, or if we fail to comply with our commitments and assurances regarding the privacy and security of such information, our reputation may be harmed and we may be exposed to significant liability and loss of business. Technology disruptions or failures, including a failure in our operational or security systems or infrastructure, or those of third parties with whom we do business, could disrupt our business, cause legal or reputational harm and adversely impact our results of operations and financial condition. We must comply with extensive government regulations. These regulations could adversely affect our ability to increase our revenues and operating results. Litigation and legal proceedings filed by or against us and our subsidiaries could have a material adverse effect on our business, results of operations and financial condition. Our exposure to regulation and residential real estate transaction activity may be greater in California, where we source a significant proportion of our revenue. Our expansion within the United States will subject us to additional costs and risks, and our plans may not be successful. We rely on highly skilled and experienced personnel and if we are unable to attract, retain or motivate key personnel or hire qualified personnel, our business may be seriously harmed. In addition, the loss of key senior management personnel could harm our business and future prospects. . . . . . . . . ● • Our title and escrow business relies on data from consumers and unaffiliated third parties, the unavailability or inaccuracy of which could limit the functionality of our products and disrupt our business. . We expect a number of factors to cause our results of operations to fluctuate on a quarterly and annual basis, which may make it difficult to predict our future performance. Performance of our investment portfolio is subject to a variety of investment risks that may adversely affect our financial results. Failures at financial institutions at which we deposit funds could adversely affect us. Our actual incurred losses may be greater than our loss and loss adjustment expense reserves, which could have a material adverse effect on our financial condition and results of operations. There are risks associated with our indebtedness that is expected to remain outstanding following the Business Combination. Changes in tax law could adversely affect our business and financial conditions. Our ability to utilize our net operating loss carryforwards and certain other tax attributes may be limited. Unfavorable economic or other business conditions could cause us to record an impairment of all or a portion of our goodwill, other intangible assets and other long-lived assets. Denial of claims or our failure to accurately and timely pay claims could materially and adversely affect our business, financial condition, results of operations, and prospects. We may be unable to prevent, monitor or detect fraudulent activity, including policy acquisitions or payments of claims that are fraudulent in nature. Unexpected increases in the volume or severity of claims may adversely affect our results of operations and financial condition. Our use of third-party agents could adversely impact the frequency and severity of title claims. Reinsurance may be unavailable at current levels and prices, which may limit our ability to underwrite new policies. Furthermore, reinsurance subjects us to counterparty risk and may not be adequate to protect us against losses, which could have a material effect on our results of operations and financial condition. As a private company, we were not required to document and test our internal controls over financial reporting nor was management required to certify the effectiveness of our internal controls or have our auditors opine on the effectiveness of our internal control over financial reporting. Failure to maintain effective internal control over financial reporting could result in material weaknesses, which could lead to errors in our financial reporting. Risks Related to Doma's Intellectual Property Our intellectual property rights are valuable, and any inability to obtain, maintain, protect or enforce our intellectual property could reduce the value of our products, services and brand. Third parties may allege that we infringe, misappropriate or otherwise violate their intellectual property rights, and we may become subject to intellectual property disputes, which are costly and may subject us to significant liability and increased costs of doing business. If we are unable to protect the confidentiality of our trade secrets, our business and competitive position would be harmed. We employ third-party licensed software for use in our business, and the inability to maintain these licenses, errors in the software we license or the terms of open source licenses could result in increased costs or reduced service levels, which would adversely affect our business. If our trademarks and trade names are not adequately protected, we may not be able to build name recognition in our markets of interest and our competitive position may be harmed. 37