QWAFAFEW TALK

Dushyant Shahrawat, CFA

Block Chain: Trends, Perspectives and Key Insights

Dec 15, 2015

Let’s Do the Numbers…

$921 mill. Cumulative VC investment in Bitcoinand Block chain companies

$121 mill. Largest funding total raised by Bitcoindeveloper 21 Inc.

805 Number of early stage startups

30+ Financial institutions testing, analyzing and investing in Block chain

11m Number of registered Bitcoin wallets in Sep 2015

106,000 Number of merchants who accept Bitcoin

Block chain technology is #1 innovation that Goldman Sachs is investing in

Ex JPM execs remain committed to Block chain despite top rival offers

R3 creates a consortium of securities firms to agree to standards, and develop use cases

VC Investment In 2015 Tops $500mill, 50% More Than In 2014

Q3’15

$87.5

Investor Base is Broadening with Corporates, VCs, Exchanges and FI’s Jumping On The Bandwagon

Consider Block Chain in the Context of the Internet’s Evolution

Publishing

Brochureware

Ecommerce

Personalized, Contextual service

What’s Next??

“Bitcoin is to Block chain what Pornography was to the Internet.”

We Are In Stage 3 of a 15 Year Evolution

2007-2009

EARLY STAGE GROWTH PLATEAU MATURITY

2010-2013 2014-2016 2017-2020 2020-2025

INCEPTION

Satoshi creates Block chain

Few people even know about it

Interest slowly grows

Practioners, private firms first take notice

Startups begin emerging

First Investments begin

Mostly academics involved Rising Popularity

Investment activity explodes

Startups crawl out of the woodwork

Amazing number of use cases emerge

Governments take serious note

VC Investment slows markedly

Shakeout in startup camp

Disappointment, snake oil anyone?

Reality sets in about use cases

Technology matures, greater standardization

Hype/pessimism replaced with pragmatism

Global agreements and regulatory rules mature

What Is It…

Benefits & Characteristics...

Distributed Ledger Builds on Decentralized Systems

Source: WEF Draft Report. Not to be Reproduced

Four Characteristics Define Distributed Ledgers

Source: WEF Draft Report. Not to be Reproduced

Benefits... and Challenges

Source: WEF Draft Report. Not to be Reproduced

Use Cases for Block Chain

Many Applications Are Emerging in Financial Services

Three Major Use Cases Are…

Source: WEF Draft Report. Not to be Reproduced

Source: WEF Draft Report. Not to be Reproduced

Source: WEF Draft Report. Not to be Reproduced

Source: WEF Draft Report. Not to be Reproduced

Source: WEF Draft Report. Not to be Reproduced

Source: WEF Draft Report. Not to be Reproduced

Source: WEF Draft Report. Not to be Reproduced

Source: WEF Draft Report. Not to be Reproduced

Nasdaq’s Decision to Power Its Private Market Using Block Chain Is a Major Endorsement

• Linq platform (part of Nasdaq’s Private Market) to run on block chain

• Brings liquidity, transparency and efficiency to private market

• Legitimizes ‘back of the envelope’ agreements

• Shot across NYSE’s bow, Nasdaq’s arch rival

Looking Ahead…

...What’s in Store

Bitcoin Infrastructure(61 Companies)

Blockchain Innovations(58 Companies)

Big Data (4)

Investments(22 Companies)

Bitcoin Payments(88 Companies)

Bitcoin Exchanges(191 Companies)

Bitcoin Mining (58 Companies)

Services(74 Companies)

Bitcoin Financial Services(112 Companies)

Bitcoin Wallets (90 Companies)

News & Data(52 Companies)

Trust (13)

Bitcoin

Gambling(31 Companies)

Contact info@venturescanner.comto see all 738 companies

BitcoinMarketMap

We Are In Stage 3 of a 15 Year Evolution

2007-2009

EARLY STAGE GROWTH PLATEAU MATURITY

2010-2013 2014-2016 2017-2020 2020-2025

INCEPTION

Satoshi creates Block chain

Few people even know about it

Interest slowly grows

Practioners, private firms first take notice

Startups begin emerging

First Investments begin

Mostly academics involved Rising Popularity

Investment activity explodes

Startups crawl out of the woodwork

Amazing number of use cases emerge

Governments take serious note

VC Investment slows markedly

Shakeout in startup camp

Disappointment, snake oil anyone?

Reality sets in about use cases

Technology matures, greater standardization

Hype/pessimism replaced with pragmatism

Global agreements and regulatory rules mature

Some Factors That Could Jeopardize, or Slow Growth

• Regulatory change of heart

• Lack of international coordination

• Private chains splinter ongoing growth

• Slow adoption and lethargic pace of development cause innovation fatigue

• Powerful commercial interests get in the way

Dushyant Shahrawat, CFADec 15, 2015

HAPPY HOLIDAYS!