Investing Experience To Transform Financial Services

November 15th, 2017

Founded TTV Capital in 2000

Venture Capital firm focused on fintech

Funded 45 fintech companies

Strong relationships with existing FIs

Focused on entrepreneurs that build

fintech applications on modern

technology infrastructure

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Personal Background

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Evolution of Technology

→ Industrial Revolution

→ Railroads

→ Steel

→ Transportation

→ Information Technology

Adapted from: Carlota Perez, Technological Revolutions and Financial Capital, 2002, Apr 2009, Jan 2010, Feb 2010

Degree of Diffusion

Time

Big-Bang CrashInstitutionalRe-composition

NextBig-Bang

Irruption

Frenzy

Synergy

We are here2017

Maturity

Installation Period Deployment Period

Technology is impacting every sector (annual global GDP)

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Derived from JP Morgan work product October 2015

Information Technology$1T

Defense$2T

Education$4T

Automotive$4T

Other$6T

Retail Commerce$22T

Finance Services$25T

Healthcare$6T

Energy$3T

Communication$1T

$1T Media & Entertainment

Real Estate$2T

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Digital Age – Information Technology

Microprocessor

PC

Internet

Mobile

Blockchain???

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Blockchain – Distributed Ledger Technology

A large and growing list (Chain) of records (Blocks)

Run on many independent / linked servers (Distributed)

Uses math and computer science to encrypt the data communications (Cryptography)

Transparent Ledger – information available for everyone to see

Benefits

A very secure way for companies or individuals to easily share data (Public Database)

Prevents data corruption or changes by one rogue hacker/employee

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Blockchain is to Bitcoin what the internet

is to email. Bitcoin is just one application

of blockchain technology.

Goal is to decentralize monetary policy –

pretty focused

Bitcoin

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Ethereum

Enables the development of any application

on one blockchain vs. having to create a new

blockchain for each use case

Smart contract platform – codify, secure,

decentralize and trade just about anything (RE

contracts, voting, loans, options, etc…)

Each application is called a DAO –

Decentralized Autonomous Organization

DAOs are funded with ICOs

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ICO – Initial Coin Offering

Unregulated way for cryptocurrency companies to raise money, mostly utility tokens

Can be done as a registered security (offer of equity or return on investment allowed)

Used to allow buyers of the token to access and pay for usage of a blockchain-based service

As of September 2017, $1.7 billion has been raised just in 2017; $2.3 billion overall

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Media & Advertising Trading Healthcare & Insurance Prediction Markets

Asset Management Exchanges & Wallets Payments & Banking Financial Services

Investing Experience To Transform Financial Services

Questions