PANTERA PANTERA BLOCKCHAIN FUND LAUNCH CALL SEP 2021Firm Introduction Agenda Pantera Thesis The Opportunity Investing Perspectives Pantera Blockchain Fund Overview Why Pantera SPEAKERS Paul Veradittakit a Lauren Stephanian Ave Bem Qe coeThe Firm PANTERA pan tora (| pantera ((ialian and pan era, ‘sp3nri Pantera Capital was founded by former Tiger Management Head of Macro Trading and CFO Dan Morohead. Pantera’s global macro strategy invested over $1 billion of institutional allocations. In 2013, Pantera created the first blockchain hedge and venture funds in the United States. The firm now manages $427 billion in blockchain assets Pantera funds provide investors with the full spectrum of exposure to the space, ranging from illiquid venture capital assets (including earty- stago tokens and multi-stage venture equity) to more liquid assets like bitcoin and other eryptocurrencies.Pantera at a Glance Te Ne a SRC Su) Pron) ter ny asA History 2013 . Pantera launched the first cryptocurrency fund in the U.S. of Firsts 2013 Pantera launched the first blockchain venture fund 2015 Pantera Co-ClO Joey Krug co-founded Augur, the first dApp to have a token offering on Ethereum 2017 Pantera launched the first exclusively early-stage token fundPantera Blockchain Fund A new wrapper for the entire spectrum of blockchain assets. Aree NEAR | a tora ov (DTerra_ compound Obitcoin Sowceravre QRIGIN Seco Polkadot. Syuniswar, AAVEPantera Blockchain Fund ‘A new fund offering exposure to all facets of the oe E—O OCT ‘eryptocurrency and blockchain markets, $600mm Simm Target raise Minimum investment The Fund will invest in iliquid venture capital assets (venture equity & early-stage tokens) ‘and liquid tokens like ethereum and DeFi protocols Venture equity Early-stage tokens Liquid tokens Equity in companies building Tokens, or rights to future tokens, Liquid digital assets spanning products and services in the tunderpinning new protocols. Similar various functions like store-of- developing blockchain ecosystem. to a venture-style model value, decentralized finance and adjacent assets.S47 billiON AuM across the evolving blockchain ecosystem Firm Highlights ce SSR $1.2 billion’ ‘$17 billion’ + Exposure to equity in companios + Exposure to now, efficient, and building products and services in scalable protocols the nascent blackchain ecosystem. lar to venture capital equity, + Pantera's longstanding reputation but investing in tokens (not and technical edge allows Pantera Ccompanigs) at the private stago at to see virtually every dealin the 8 discount to the listing price. market, and to lead about halt ofits portfolio company investments. $14 billion’ + Exposure to the largest and most liquid digital assets. + Use deep market and technical ‘expertise to trade tokens while ‘oxploiting markot inefficiencies.Pantera Thesis Cryptocurrency and blockchain technologies are the underpinnings of a new financial infrastructure, much like how the internet was the underpinning of a new information infrastructure.Protocol Evolution Blockchain protocols have evolved over the past decade. Protocol Enables Breakthrough © Bite Global transactions & store- | Decentralized, trustless value transfer. Solved the double of-value spend problem e Ethereum Smart contracts, token Self-enforcing contracts that allow for programmatic issuance control over financial transactions ® Polkadot Blockchain interoperability & | Cross-blockchain transfers of any type of asset. enhanced scalability Scalability enhancementsDecentralized Finance Similar to how the internet was the underpinning of @ new information infrastructure, blockchain tech and cryptocurrency are the underpinnings of a new financial infrastructure. There are five basic primitives to any financial system: UNIT OF LENDING & ACCOUNT EXCHANGE ESUANCE MARGIN LEVERAGE Stable currencies Decentralized Globally-accessible Borrow ‘Smart contracts can can be used for ‘exchanges allow for lending products cryptocurrencies on be structured to trade and trading of assets enabled through margin using other _allow for leverage. commerce. with no programmable cryptocurrencies as intermediary. tokenized debt. collateral.INSTAQAPP Vows Agaregators/Wallets | DeFi Decentralized Derivatives Exchange Ecosystem ( VEGA Ourssust J [7 bending ~/-— DEX —~. Marketplace | - Payments ~~ Synthetics ~ The ocosystm fr Deis ait twrandeg wine omageneo of non {| Mtwcr \(_ attner )( Arores |(amuint 9 | ga ‘companies and protocols supporting the ne Ar 0 || Eran CRN e industry. Seonpend }( fa ovsivie) C eepeer J (6D tera ) = | Are Coun Sar | J > Laver Bleekehains | Pome Obitcoin — NINEAR —maisanmy — csMosDeFi Growth The amount of value locked up in DeFi protocols is now over $160 billion and decentralized exchanges now facilitate around $80 billion in monthly trading volume Value Locked in DoF Protocols DEX Trading Volume®Additional Areas of Focus Infrastructure Blockehain tech end traditional infrastructure fora robust ecosystem ‘Alchemy provides doveloprs with tho fundamental buling blocks they need to create decentralized applications. alchemy Payments Enabling consumers and businesses to Send payment in crypto \eom isa payment service providor that helps simply the way businesses son and recele funds veem Exchanges “ading intrastrctue for Hiatto-erypto and erypto-te-crypo transactions itso 19° # merco*osed exchange ta allows UBitSO gay sot, and sond crypto Enterprise Blockchain-intograted solutions far everyday businesses srecpum Te Ocan Labs pip, ium sas Ehroun Ooortste ects «seg acon forma Os ane Consumer Services and products for everyday consumers MakorsPlaco isthe premier market to discover, ealloct rakersloc® and nvest in Wuly are and authentic dgtal artworks Finance Services that eahance porto management and trade execution ng]_ S120 els investors cam ytd fom staking and DF Staked our taking custody ofthe erpo assetsInvesting PerspectivesGlobal M2 $100 trillion Asymmetric Opportunity i $9 trillion We're sil in tho eary stages of adoption Cryptocurency may sere as a global eens resorve currency of © viable altemelive {0 paral fixed-supply assets like gold. ‘$5 trillion Smart contact platfoms canbe the Yon Ane manor underpining of a new open financial Googe sects system Cryptocurrency Market Size $2.0 trillion Bitcoin, Ethereum, Polkadot, etc.233% Compound Annual Growth Rate Ser nek Bitcoin has its manic bubbles and drawdowns, but when zooming out and graphing it on a logarithmic scale, it steadily grinds up at a 233% compound annual growth rate. On average, Bitcoin has tripled every year since its inceptionNon-Correlated Asset One of our principal arguments for bitcoin in in a portfolio is that it has had a 233% 10- a year compound annual growth rate with oot essentially zero correlation to stocks, bal bbonds, oil, and other asset classes.Pantera Blockchain FundBlockchain Fund Strategy Actively managed multi-stage exposure to companies Venture Equity building products and services in the nascent blockchain ecosystem + Pantera’s three venture funds invest in the equity of + The Fund will invest in companies at various stages of blockchain-focused companies; Pantera leads about half of development from seed to growth in investment sizes its investments in portfolio companies and through its deal between St-15 milion flow assesses most of the deals in the sector + The venture equity strategy will comprise roughly $240mm + Focus areas for investment: F 40% of the target capital raise Infrastructure Consumer Payments, Financial Services EnterpriseVenture Results ee ee Sd ear} 20 ear oo Ed en ai Coe een) Poa pera) Ped Fund | focused on companies that enabled ey ao aa oan investors to buy, store, and speculate on Con he oe) Bee) Pons Diteoin, ate oa en es Fund I! targeted cross-border payments, Cd rd Ey raed regional ex and developer tools ios A 20 2 Fund Il is enabling the institutionalizatio digital assets as a separate asset cla eg cd Vener Numbor of Companios a cere Poy Comte $20 Coe nt eek et Cer esfomiare venture) Fund er eh aia maturing venture funds, the loss ratio is incredibly low oo es relative to traditional venture i) ete eee) Capital Ratio Pear El Rod Arc cry Sn rd FD ee ENC Ce ETL} crBlockchain Fund Strategy Actively managed exposure to new protocols and tokens at discounted valuations to the issuing price through private, early-stage deals + Early-stage tokens have a risk-return profile similar to. + The Fund will make investments in early-stage token other early-stage venture investments; it takes deep projects atthe seed or Series A rounds in investment sizes technical and market knowledge to invest successfully inbetween S1-18 milion developing token projects + The early-stage token strategy will comprise roughly + Decentralized finance “Defi” and marketplaces willbe the $180mm or 30% of the target capital raise primary areas of focus, but investments wil span a range of use cases with large addressable marketsBlockchain Fund Strategy Fc} Actively managed exposure to widely traded liquid venture capital digital assets + Pantera's market and trading knowledge allows it to exploit + The Fund will also invest discretionarily in inefficiencies inherent in these volatile markets have an active risk management overlay + The liquid token strategy will comprise roughly S180mm or + A core thesis of both the Fund's liquid and early-stage 30% of the target capital raise token strategies is that DeFi will be an important driver of value to the ecosystem + Pantera founder Dan Morehead was the head of global macro for Tiger Management ~ giving Pantera a distinct competitive trading advantageWhy we invest Overarching the: Cryptocurrency and blockchain technologies are the underpinnings of a ‘new financial infrastructure, much like hhow the internet was the underpinning of a new information infrastructure. WHAT WE LOOK FOR Team Community Valuation Technical Analysis Invost in world-class teams that can execute quickly in the dynamic crypto environment. Consistent product iteration. User engagement isa reliable proxy forthe strength of its value proposition and vibilty ofits model. Simply put, excollont products generate enthusiasm. Invest in assets whose prices imply an asymmetiic fisk/roward vadeot .e, assets underpriced relative to our fundamentals-basod valuation, Use data on trading activity to preaict how price might change on a shorter time horizon e.g, market sentiment data, on-chain data, and traditional indicatorsPantera Case Studies Bitstamp Venture Capital: Sou) Bitstamp is a bitcoin exchange based in Luxembourg. It allows trading between fiat currency, btcoin and other eryptocurrency. NXMIH, a Beloium-based investment company, acquired 80% of Bitstamp in October 2018 Fund Invested Venture Fund 1 Initial Investment Date vase Total Invested Capital 393 Realzod Value sora Unrealized Value 9136.4 Matiple 208x Investment Type Seed Polkadot. Venture Capital Early-Stage Token Polkadot is a next-generation, layer-one protocol that enables blockchain interoperability and also increases transaction throughput. Pantera invested in a private round in 2017. Polkadot is currently atop 5 cryptocurrency by market capitalization Fund Invested Early-Stage Token Fund Initial Investment Date s0/aii7 Total Invested Capital $50 Realized Valuo™ $761 Unrealized Value? $2753 Muttioe? 70.3 Investment Type Early-Stage iliquid TokenWhy PanteraPantera Edge TECHNICAL TALENT Co-CIO Joey Krug co-founded Augur, the frst ‘major project on Ethereum, Investment team includes senior professionals with engineering degrees from Columbia, Caltech, and Princeton. NETWORK Pantera community includes over 100, biockchain projects with best-in-class ovelapers and enireprenours, Active deal management provi funding, cross-polination, reteral ‘guidance. 5 counsel, MBA \VALUE-ADD INVESTING Pantora provides porttolio companies with (uidance and tools for success, Resources range from tectinical feedback, team building, legal guidance, M&A strategy, ‘and more. LEADERSHIP The toam has decades of exporionce at top: tior financial firms Talent trom Goldman Sachs, Tiger Management, Bridgewater, and JP Morgan INFRASTRUCTURE Best-in-class trading infrastructure and tools for trade execution Strong relationships with prime brokerages, hanges, and custodians,Deal Pipeline SC eee Oe eee an ae ed for Pantera Blockchain Fund across Fo various sectors including DeFi, Cee ee a Py A i : - : - Fm Aopid Fe] Aw Feb20——2D Feb AgatPerformance Highlights Sen ta eS eR cig re eT Ce) ecard Pane red Pr ee $1,719mm Rett $768mm Ey 0s fri itr} ito = a aes) Cy nite re fry rrr} ir CSS eT Cid 4 irra ony ory orAlpha Generation Ce eu Loe) Li a Ak i Ce eee ee ry active management can add tremendous erry Te cu Ere) Gt acta cua usa uses mee) Early-Stage Token Fund ncaa Bitcoin Retum ery Bere array Return 42,439% SECs periodRisk Management Wo spond a considerable amount of timo ‘managing risk, striving to take the appropriate amount of risk, of the appropriate kind, at the appropriate time. In practice, this requires having a risk appetite that is extraordinarily responsive 10 three types of indicators of evolving ‘market conditions: INDICATOR ‘Sentiment data On-chain data Tochnical data EXPLANATION Gauge contidence and conviction of market panteipants using social modia activity data, search engine querios, viral trends, and more. Often more contimatory than prognostic Various on-chain metrics can be a good source of predictive market signals e.9, amount of BTC moved off exchanges, data on unrealized profits of holders and coins held by short-term speculators. Helps predict when trading trends will break or intensity. By tracking price movements and technical patterns, we capitalize on volality and position ourselves ahead of market erections.Summary of Terms Targot/Commiumants Investment Perod/Torm Capital Calis Schedule Recyelng Liquidty Events Management Fee Comied nterest Waterfall Codnvestments Managoment Foe Oiteot Minimum Commitment (GP Commitment ‘Specialist Counsols| Specialist Service Providers $600 mation Dolanare Limited Parrorship 5 -yar Investment prod; 10-yar tem + approved extonsion 40% st closing: remaining 60% of LP commitments in quarry capital cls at fiscal quater ends ‘Unite recycling of leu portoto assets, incising post sed Tokers 20% recyelng of VC Haudty evens ‘Ona pro rata par passu bass, suoe o Lod Parner Advisory Cometoe apron 2% of commited capital anrualy 20% up 10 40% not RR, and 20% thereafter Europoan- 100% totum of eal capital port paying cared interest, Fund LPs wih capital commtmens of St6mm or mor wil hae he option to collet co-est a a minimum of 1% (ofeach VC oF liquid then deal subject o Tk managoment and 10s erormance tees Any remuneration received by management company wil reduce management fee Simion ‘The lesser of 2% ofthe Fund or $1 ion US. Counsel - chute Rott; Rogultory Counsel ~ Cooly; Deal Counsel -Admistator~ MG Stover Autor ~ Cohan & Co Lathan & WaneInitial Closing The initial closing of Pantera Blockchain Fund was well over half of our target ~ done in the first three months of a twelve-month fundraise. The next close will be at the end of September. To accommodate new investors, we will have subsequent closes on December Sist and March Sist, 2022. CONTACT FOR INVESTMENT INQUIRIES: ir@panteracapital.com If you are interested in beginning the investment process now, please visit our website: https://panteracapital.com/funds/blockchain-fund/Upcoming Travel Please reach out to i panteracapital.com if you are interested in meeting with us. Seattle, September & | including a Blockchaia Lunch at 2pm Munich, September 22 Now York City, Soptembor 18-24 London, September 22 including a Blockchain Lunch at t2pm 2 Soptomber 15 & 23, Blockchain Lunches at 12pm Zurich, Soptomber 24 | including a Blockchain Lunch at 2pm Madrid, September 16 Boston, September 27 | including a Blockchain Lunch at t2pm Los Angeles, September 16-7 Palo Ato, October 14-20 Barcelona, September 17 October 18, Blockchain Lunch at t2pm Amsterdam, Soplomber 20-21, 28 Nashville, October 21 | including a Blockchain Lunch at 2pm Soptomber 20, Blockchain Lunch at 2pm Louisvile, October 22 | incusing 2 Blockchain Lunch at om Geneva, Soptember 20-21 New York City, Novombor 1-4San Francisco [> /N IN| ap [= TRY AN pan terra (Latin), ‘spanning the earth’ pantera (Italian and Spanish), ‘panther’ Woe Te 1 ¢-asor=]0)0)01e cloe Investor Ri +1650 8 irepanteracapital.com San Juan New York City