Distilling Venture Capital

UNICORN MANIA, The Real Facts About Post-Money Valuation Post-Money Valuation; The Facts , ALL 135 Unicorn companiesAND, 65 lose their Unicorn status! A Unicorn Index Fund is a Sham Given the above facts, the concept of a Unicorn Index, then, is a sham based on this faulty method of valuation. The indexes, in fact, do not have visibility into the requisite information and data actually needed to return a market value or market capitalization (i.e., financial statements). That´s why they use the inappropriate and discredited PM Valuation and then try to sell it to you as some rigorous and proprietary methodology. Complete BS. In fact, let me let you in on a key piece of information, a key fact: I’ve known about the concept of PM valuation for more than 20 years, during my time as a venture debt lender. The PM valuation was never intended to be used for this purpose (trying to determine a market value for private companies). The idea that index funds, the financial press, and the analytics companies have been trying, for years now, to use this as a representation of value is insane and it’s fraudulent. Btw, Why would anyone invest in an index fund that can´t provide investors with a true picture of value? Any index fund should be required, and investors should demand, full disclosure of the valuation methodology. One would think disclosing your valuation methodology would be a strength, a positive, to show investors you do have rigor in your analysis and determination of value. Transparency should be an asset. Instead, these so-called index funds use stealth because they don´t want you to know that they don´t really have visibility and the tools normally utilized to actually determine real market value for these private tech firms. Why the secrecy and black-box approach if the index funds are asking investors to pony-up vast sums of money to get exposure to private tech company deals? The risks of a private, early-stage technology company are already significantly high enough; and their performance is not proven nor is it disclosed. To gain exposure to this high-risk asset category via an index fund with a completely improper, bogus notion of value is insane. Stay Far Away from any Index of Unicorns So, let´s understand what is really going on here. The facts are these regarding any index comprised of so-called Unicorn tech companies. They possess none of the following key pieces of financial statement information necessary and normally used to properly value a firm: gross margins Each of the above financial metrics would normally be used to value a firm and measure its financial health and trajectory. These so-called index funds do not have access to any of this information and therefore operate in a vacuum when it comes to relying on real financial metrics normally used to value a company. Investors should be informed as to just how flimsy and flawed these valuations are based on the PM Valuation. The Stanford Study conclusively proves there is a serious problem with the PM Valuation methodology. Further, the Study has developed a methodology that works and clearly demonstrates how to calculate a value for these private tech firms.

Tech Unicorn Valuations are Fake Introduction Hello everyone – it´s been a couple of months since my last podcast episode – I took some time off...It´s great to be back with you again. After some thought, consideration and a couple defining events, and an announcement by Pitchbook, one of the so called data analytics firms in the VC space, I decided it was imperative that I do an episode in my Unicorn Mania series. I´ll fill you in on the PB announcement I am referring to in a moment – it´s insane! Before we jump into the episode though, I wanted to pay recognition and acknowledgement to a wonderful Brazilian singer and artist, Gal Costa. My intro music and exit music is Aquarela do Brasil by Gal Costa. Gal Costa passed away on Nov. 9, 2021. A makpr talent in Brazil, I thoroughly enjoyed her music. She will be missed. So, let´s jump into this edition of Unicorn Mania: If you´ve followed this podcast in the past, you are aware that in the UnicornMania series I highlight the largely fake, deceptive valuations of VC-backed private technology companies – Which are Fondly called Unicorns...Isn´t that cute? For background, I refer you to my first episode in the UnicornMania series, March of 2020. Episodes 5 and 6 also deal with this twisted freak show perpetrated by VCs, the tech & financial press and others that engage in all of this Unicorn nonsense. I encourage you to go back to Episode 1 for insights and valuable background information as to why I categorically state and prove that tech Unicorns, a VC-backed tech company allegedly with a $1B or more valuation, are indeed mostly fake… Let´s start off with some levity and have a little fun, shall we, at the expense of Sil. Valley VCs? I read this a couple years ago in a CrunchBase piece; There´s an old joke about a new bar in Sil. Valley. On opening day, 6,000 people showed up. No one buys a drink. The business is declared a roaring success! [This joke will hopefully make perfect sense by the time we finish this episode. Only in SV culture would the above be considered a success! In Sil. Valley, comedy often becomes reality To briefly review, let´s start with some basics I will get into in this episode: Post Money Valuation ``Squaring VC Valuations with Reality.`` Links: Squaring Venture Capital Valuations with Reality https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2955455 Video presentation to the Silicon Valley Open Doors conf., 2016 https://youtu.be/k4OtGWZ3iYI Why a return to this topic? Several reasons; That is Morningstar, the venerable, well-known mutual fund rating company founded in 1984. Its star rating system has been considered the gold std in rating mutual funds, ETFs, etc., for years… What is The announcement: An index of unicorn tech companies. B/C an index that begins with garbage valuations, yields garbage! I will get into that and demonstrate how this alleged index fund is deceiving to investors and should be scrapped immediately…IMO ``Demiystifying the venture capital Market with the Moringstar-Pitchbook Global Unincorn Indexes.`` Why do I bring up this event? B/C prior to its collapse, FTX would have surely been, no doubt, a part of this bogus index fund. [Just like Wework before, only a couple years ago. Remember them?] WeWork was valued at $47B before pulling its IPO around Sept. 2019 when many entities called BS on its S-1 filing. I devote all of Episode 6 (Aug. 5, 2020) to exposing the Wework fraud and breaking down their bus. model – something, unfortunately, Firms like Pitchbook, CB Insights and the tech press failed to do; In fact, they continuously published fawning articles prior to Wework´s collapse and implosion, slobbering all over themselves about WeWork´s amazing valuation ($47B)! And now, they want you to trust them with an index of Unicorns based on fake valuations – right! That´s messed up, IMHO. So, let´s get into this PB announcement, shall we? Whitepaper Takeaways: ...

Introduction Episode Introduction: He also leverages various degrees from the University of Southern California, London School of Economics, Massachusetts Institute of Technology, and The Wharton School at the University of Pennsylvania. Topic Areas Covered with Jonathan Closing Remarks: Jonathan, thank you very much for joining me today on the program… Jonathan, how can those who are interested in learning more about you and your practice in So. California get in touch? Contact Information Website: Social Media: Or, Linkedin: Thank you for joining me for this edition of DVC. I hope you found today’s discussion with Jonathan Hung interesting and it gave you some additional insights into the state of angel investing in So. California and beyond. Stay tuned for my next Episode of DVC…thank you.

Introduction Episode Introduction: Alex Branton Bio: Over a decade of investment industry experience with a blend of direct investment experience and fundraising expertise. Studied, lived and worked in emerging markets (most significantly China and Central Asia) on and off for 15 years. Whilst maintaining a vital role on the investment team, spends significant time working with companies on their fundraising and strategic partnerships. Before Sturgeon, part of a 4-person team, that helped build a tech-focused asset manager called Columbus Point with the co-founder of Cantillon in the capacity of head of business development, raising approximately $200m, building the operational infrastructure and working with the investment team. Prior to this, was an Associate Investment Director at Cambridge Associates working in the emerging markets team, advising on direct co-investment deals, economic consulting, financial modelling, and portfolio advisory and discretionary management. Alex holds a BA in Industrial Economics from the University of Nottingham (during which time he also spent time studying finance at Hong Kong University) and an MSc in Development (specialism in Development Economics) from the London School of Economics. He is also a chartered alternative investment analyst (CAIA) and is fluent in Mandarin Chinese having studied in a post-graduate in Shanghai and has taken R programming courses at UCL. funding gap Portfolio Highlights: ZoodPay’sZoodPay - Closing Remarks: Alex, how can those that are interested in learning more contact you or the Company? Contact Information Website: Or, Linkedin Alex, thank you very much for joining me today on the program…It would be great to do a follow-up some time to get an update…And, if you and Kiyan want to have a conversation sometime about Brasil, I am all over the Brasil Fintech and DeFi sectors, so would love to do that. Thank you for joining me for this edition of DVC. I hope you found today’s discussion with Alex Brandon and Sturgeon Capital interesting. If you’re looking for alpha, and who isn´t, and you hadn´t thought of Central Asia, Sturgeon Capital is the go-to Fund with the regional expertise and successful track record. Stay tuned for my next Episode of DVC…thank you.

Introduction Episode Introduction: Fuse Capital Fuse Capital. Topic Areas Covered Wasabi Fund Closing Remarks Website –www.fuse.capitalSocial media?Other contact methods? Thank you for joining me for this edition of DVC. I hope you found our discussion today with João Zecchin and Fuse Capital interesting and it gave you new insights about how the venture capital and venture debt landscape is evolving in Brazil. I look forward to joining you on my next edition of DVC. Thank You…

Introduction We will start here - Episode Introduction: Slater VictoroffIndico.Indico Topic Areas Covered with Slater Victoroff Closing Remarks Website – www.indicodata.aiOther contact methods? Thank you for joining me for this edition of DVC. I hope you found our discussion today with Slater Victoroff and Indico interesting and it gave you new insights and things to think about regarding machine learning, AI and its application to unstructured data. I look forward to joining you on my next edition of DVC. Thank You…

Introduction We will start here - Episode Introduction: Jeremy NeilsonAssure Topic Areas Covered with Jeremy Neilson Jeremy, in addition to Assure and its services I´d love to hear your thoughts and remarks on other topics in the VC and priv. investment landscape in general if you are open to opining on them; Closing Remarks Website –www.assure.coOther contact methods? Thank you for joining me for this edition of DVC. I hope you found our discussion today with Jeremy Neilson and Assure interesting and it gave you insights into SPVs, fund administration services and their importance in the marketplace to VCs and private equity. I look forward to joining you on my next edition of DVC. Thank You…

Episode Introduction: Jim BiancoBianco Research, LLC Topic Areas to be covered After introduction and you provide your background, I´d like to get into the following… ´It will come here and completely flatten you.´ Closing Remarks Website –www.biancoresearch.com Thank you for joining me for this edition of DVC. I hope you found our discussion today with Jim Bianco interesting and it gave you better insights into what DeFi is really all about and what it means for the future of finance globally. I look forward to joining you on my next edition of DVC. Thank You…

Introduction Episode Introduction: Oddup …[My attempt at describing the co. and what you do…feel free to give me the succinct, company-preferred version]So, before we dig into the meat of what Oddup is and its key offerings, I thought it would be useful if you couldtell us a bit about your background and about your journey, more broadly, that ultimately led to the formation of Oddup… Topic Areas Covered: Closing Remarks www.oddup.com Thank you for joining me for this edition of DVC. I hope you found our discussion today with James Giancotti and Oddup interesting and it gave you things to think about regarding your ability to evaluate, analyze and invest in new economy companies. I look forward to joining you on my next edition of DVC, Thank You… Bio: James Giancotti, CEO and Co-founder Oddup James Giancotti is the founder and CEO of Oddup, an early-stage startup ecosystem rating system. James began his career in investment banking and research roles at Goldman Sachs and J.P. Morgan. After nearly a decade of researching companies’ financials to determine their value and assessing investment risks and opportunities, he saw firsthand the challenges that most institutional investors constantly confronted. The biggest obstacle was a lack of reliable, collated analyst insights that overcome subjectivity, so he created Oddup to address this problem by giving investors more transparency and objective insights to make the most informed investment decision. James holds both a Bachelor of Commerce in Business Intelligence and a Bachelor of Law in Intellectual Property from La Trobe University.

Introduction Welcome to Distilling Venture Capital. I am your host, Bill Griesinger Distilling VC is a visionary podcast that provides an insightful and informed view of the key trends affecting the VC and tech startup world. My mission is to cut through and go beyond the hype that tends to dominate the tech landscape. And provide you with information you can use. Episode Introduction: Closing Remarks www.10web.io Thank you for joining me for this edition of DVC. I hope you found our discussion today with Tigran Nazaryan and 10Web interesting and it gave you things to think about regarding how you go about building and creating high-quality websites in the future. I look forward to joining you on my next edition of DVC, Thank You…

Introduction Welcome to Distilling Venture Capital. I am your host, Bill Griesinger Distilling VC is a visionary podcast that provides an insightful and informed view of the key trends affecting the VC and tech startup world. My mission is to cut through and go beyond the hype that tends to dominate the tech landscape. And provide you with information you can use. Episode Introduction: Closing Remarks www.equiam.com Thank you for joining me for this edition of DVC. I hope you found our discussion today with John Zic and EQUIAM interesting and it gave you things to think about regarding your ability to invest in a fund of private tech companies. I look forward to joining you on my next edition of DVC, Thank You…

Introduction Episode Introduction: Viva Real new book, Viva The Entrepreneur Closing Remarks www.latitud.com Thank you for joining me for this edition of DVC. I hope you found our discussion today with Brian Requarth interesting and it gave you things to think about regarding building a business in Brazil or LatAm. I look forward to joining you on my next edition of DVC, Thank You…

Introduction Episode Introduction: JP thank you for coming back to join me on the show. Lucid River Partners BTC’s Very Volatile Week: Galaxy DigitalMike Novogratz: “The underlying progress that is happening in the BTC ecosystem, the ETH ecosystem and crypto in general is full speed ahead. “This is not trading Tulips – this is trading a technology that is going to revolutionize how we transmit value to each other…” [Galaxy Digital/Galaxy Fund Mgt. - a full-service institutional player, with asset management, capital markets, and investment banking.] Galaxy is well positioned to compete with Coinbase and Gemini around institutional funds, as well as with Fidelity on third party wealth management, as well as Grayscale on asset management. This entire business exists because of Mike Novogratz’ bet on crypto assets. Is Crypto-mining Eco-unfriendly? China is often claimed tobe a geographic center of concentration for BTC mining The ‘Chinese Mining Centralization’ Of Bitcoin And Ethereum Link: https://www.forbes.com/sites/rogerhuang/2021/12/29/the-chinese-mining-centralization-of-bitcoin-and-ethereum/?sh=25b14792f669 From our October 2020 Conversation – you went into some detail regarding Energy Utilization & Economics of Crypto-Mining: Crypto-currency MiningMetrics/Discussion: Let’s talk about your new Fund –Lucid River Partners; Closing Remarks Contact Information for Aurum Capital Ventures jp@theminingstore.com www.lucidriverpartners.com/learn Thank you for joining me for this edition of DVC. I hope you found our discussion today with JP Baric and Aurum Capital Ventures interesting and useful. Stay tuned for my next Episode, where I will have a very special guest and accomplished expert on building successful tech companies in LatAm. Brian Requarth, who created the leading Real Estate Technology Co. in Brazil, Viva Real, will join me. He’s also an author - Thank you again and I look forward to joining you for my next Episode of Distilling VC.

Episode Introduction: Focus-on-Fintech “The credit market in Brazil is one of the most dysfunctional and exclusionary in the world. High default rates encourage traditional financial institutions to charge even higher interest rates, further driving defaults.” “Open Co believes that the key to building groundbreaking credit products lies not only in technology, but mainly in building a relationship of trust with customers. The time for expensive debts, bureaucracy and closed doors is over. The future is now Open.” Growth Plans for 2021-2022 Closing Remarks: André, thank you very much for joining me today… Contact Information – Open Co Website: www.open-co.com.brLinkedin: André Bastos Thank you for joining me for this Episode of DVC. I hope you found the conversation with André Bastos and Open-Co interesting and it gave you some things to think about regarding developments in Fintech services in Brasil. I look forward to joining on my next Episode of DVC.

Introduction Distilling VC is a visionary podcast that provides an insightful and informed view of the key trends affecting the VC and tech startup world. My mission is to cut through and go beyond the hype that tends to dominate the tech and VC landscape. And provide you with information you can use. Episode Introduction: Other: Insurtech CUBO Closing Remarks: Anderson, thank you very much for joining me today on the program…It would be great to do a follow-up some time to get an update… Thank you for joining me for this edition of DVC. I hope you found today’s discussion with Anderson Thees and Redpoint eVentures interesting and it gave you new insights into the Brazilian tech investing landscape. Anderson, what is a good way for those who are interested in learning more about Redpoint eVentures contact you or the Company? Contact Information Website: Stay tuned for my next Episode of DVC…thank you.

DISTILLING VENTURE CAPITAL Episode 014 SPECIAL EDITION – Investing in Human Capital Projeto Sol, São Paulo, Brasil Sister Angela Mary, Co-Founder, Director Recording Date: February 24, 2021 Introduction Distilling VC is a visionary podcast that provides an insightful and informed view of the key trends affecting the VC and tech startup world. Episode Introduction: Human Capital– That’s a mere, brief summary of the Social Impact that Projeto Sol has had on the community Sister Angela Mary: Projeto Sol Website: projetosol.org.br How to Participate and Support: If you are in the US/Canada; Go to www.cscsisters.org Simple Instructions for Supporting Projeto Sol at the cscsiters.org website: Support Us →Donate Now → My Gift is forBrazil Mission To provide more detail about the intent of your donation…Projeto Sol That’s it. If you are interested in and motivated by a TRULY significant Return on Investment in positive Social Impact, supporting Projeto Sol via the cscsisters.org website is an excellent way to show support. You can also send an Email to Sister Angela: irmaangela.carey@gmail.com Closing Remarks: Thank you for joining me for this Episode of DVC, we discuss Human Capital. Stay tuned for my next Episode of DVC…thank you.

Introduction Distilling VC is a visionary podcast that provides an insightful and informed view of the key trends affecting the VC and tech startup world. My mission is to cut through and go beyond the hype that tends to dominate the tech and VC landscape. And provide you with information you can use. Episode Introduction: enormous potentialextreme complexity… ‘enormous potential’ ‘extreme complexity’ In this Episode, Kiyan discusses the following: Closing Remarks: Kiyan, thank you very much for joining me today on the program…It would be great to do a follow-up some time to get an update… Thank you for joining me for this edition of DVC. I hope you found today’s discussion with Kiyan Zandiyeh and Sturgeon Capital interesting. If you’re looking for strong risk-adjusted returns and concerned about an overheated public equity markets (you should be) and private tech markets (where you can invest in Unicorns??) and would like to understand more about investing and gaining exposure to Central Asia, Sturgeon Capital is the go-to Fund with the expertise… Kiyan, how can those that are interested in learning more contact you or the Company? Contact Information Website: Company Email: Stay tuned for my next Episode of DVC…thank you.

Episode Overview: Grana AQUI, Brazilian Mortgages, BankFacil, and Creditas, Introduction Distilling VC is a visionary podcast that provides an insightful and informed view of the key trends affecting the VC and tech startup world. My mission is to cut through and go beyond the hype that tends to dominate the tech and VC landscape. And provide you with information you can use. Focus-on-Fintech 400 Fintech companies Nubank Creditas,Grana AQUI disintermediation Closing Remarks: Alberto, thank you very much for joining me today on the program… It would be great to do a follow-up conversation if you are open to that – I would enjoy getting your input and perspective regarding continued of capital markets in Brasil and what it means for Brasil Fintech… Thank you for joining me for this edition of DVC. I hope you found today’s discussion with Alberto Gaidys interesting and it provided you with things to think about regarding Brasil Fintech and capital markets. Or, perhaps you are an investor fund looking to enter the Brasil market… Stay tuned for my next Episode of DVC where I will highlight a London-based investment fund with a very unique geographical approach to deal flow and investments. Thank you for joining me today.

Introduction Distilling VC is a visionary podcast that provides an insightful and informed view of the key trends affecting the VC and tech startup world. My mission is to cut through and go beyond the hype that tends to dominate the tech and VC landscape. And provide you with information you can use. [This intro para. is pre-recorded so you won´t hear it] Episode Introduction: Focus-on-Fintech In Today’s Episode we Will Cover: Let´s start by Defining the Business you are in & Creation of the Company: How close would you consider Molecule today to be what you set out to build in 2012? What were driving factors behind these adjustments? Business Model Characteristics/Features & Benefits/Competitive Advantages cloud-based data solution; “Deal Capture, Mark-to-Market, Black-76, and VaR math are not proprietary in the least.”What's been the hardest thing for potential customers (and investors!) to understand about the value Molecule provides? How do you manage that? New Product Additional Capital Required to Grow? Would you do anything differently along your fundraising path knowing what you do today? Closing Remarks: Sameer, thank you very much for joining me today…I appreciate your time. I would love to do a follow-up sometime to check in on Molecule… Contact Information, Molecule Website: www.molecule.ioSocial Media: Company Email: Thank you for joining me for this edition of DVC. I hope you found today’s discussion with Sameer Soleja and Molecule interesting and it gave you things to think about regarding developments in the ETRM/CTRM marketplace. Stay tuned for my next Episode…

Introduction Distilling VC is a visionary podcast that provides an insightful and informed view of the key trends affecting the VC and tech startup world. My mission is to cut through and go beyond the hype that tends to dominate the tech and VC landscape. And provide you with information you can use. Episode Introduction: In This Episode, Thomas Healy Covers Hyliion’s Journey to its Public Offering, Including: Business Model & Business Model Characteristics Capital Required to Grow? Competitive Advantages View of Addressable Market – Closing Remarks: Thomas, thank you very much for joining me today… Contact Information, Hyliion Website: hyliion.com Thank you for joining me for this edition of DVC. I hope you found today’s discussion with Thomas Healy and Hyliion interesting and it gave you some things to think about regarding developments in long-haul truck technologies. Stay tuned for my next Episode.