threeDegrees is an online angel investing platform that connects startups and investors within trusted professional networks. It aims to make angel investing more efficient by streamlining due diligence and fundraising through an exclusively online process, while maintaining the exclusivity and trust of offline networks. The platform launched a beta test in November 2013 with six startups and over 350 invited investors, resulting in over $45,000 in new funding commitments. threeDegrees plans to scale the platform across top business schools in 2014 and expand to other professional networks.

1. online angel investing within trusted professional networks
Kristy Schultz | Cory Oliver
2013
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2. Team
Kristy Schultz | BD & Marketing
• 11 years marketing experience, including 6 years
advising distressed businesses
• Harvard Business School MBA
• HBS Alumni Angels NY Deal Committee, HBS Club of
NYC, HBS FIELD 3 Alumni Advisor
Cory Oliver | Ops & Finance
• 6 years consulting in high-urgency situations:
turnaround, private equity, M&A, startups
• London Business School MBA
• BS in mechanical engineering
© threeDegrees 2013
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3. Startup funding is inefficient
Investors
Startups
8.7M households qualify to invest
Fewer than
300k are
active
angels
18%
53%
Venture capital dollars invested by geography, 2012
“Dormant Angels”
• 96%+ of qualified individuals do
not invest in startups, though
many would like to
• 70% of investment concentrated
in entrepreneurship hub cities
• More than 60% invested in
three industries: software, IT
services, and biotech
• Fundraising takes 3-9 months of
valuable time
Sources: (1) Securities Exchange Commission, (2) Center for Venture Research, University of New Hampshire (3) “VC Investments Q1 13- MoneyTreeNational Data,” National Venture Capital Association, nvca.org. 10 June 2013
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4. Investors and startups need a better option
Investors want…
• More efficient due diligence process
• Access to high-quality, trusted startups
• Lower minimum investments (currently $25-100k)
Startups want…
• Access to investors anywhere in the US
• Fundraising made easier, shorter, and less expensive
• Supportive investors with value-add connections
Source: 2012 threeDegrees survey of HBS alumni who qualify but do not invest in startups. Largest barriers to investment cited were 1) lack of time to
vet deals, 2) lack of dealflow and 3) aversion to investing $25K per company
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5. threeDegrees is the solution
threeDegrees is an online angel investing platform that uses the power of elite
professional networks to connect startups and investors
Powerful Networks
• Only open to startups affiliated with trusted
professional networks, starting with the elite MBA
communities
• Allows individuals to invest in and alongside people
they know
• Limited to accredited investors
Exclusively Online
• Deals from any geography or industry
• Real-time communication and document management
reduces time and cost for both sides
Collaborative & Transparent
• Collaborative diligence leverages the collective experience of many investors
• Public Q&A and accreditation certification increase transparency and trust
• More investors means decreased investment minimums: as low as $1k
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6. Online convenience, offline exclusivity
We combine the transparency and convenience of online investing with the
exclusivity, privacy, and trust of angel clubs
Offline
Private
Networks
Online
Local Angel Clubs
Accelerators
Public
Networks
Competitions
Pitching Events
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Crowdfunding Platforms
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7. Angel investing: $23B annually and growing
Dormant Angels—8 million individuals who qualify to invest but choose not to—
could add an additional $43-$87 billion following recent regulatory changes*
POTENTIAL FOR EXPANSION
CURRENT MARKET
$23B
Annual capital invested
* Title II of the JOBS Act
by active angel
allows issuers of securities to
investors
advertise publicly to
previously inactive investors
**Assumes average of $5-10k
invested annually per
qualified household; estimate
based on threeDegrees
survey data
***Total capital raised under
Rule 506 in 2012 by operating
Total funds raised through private
companies. If pooled
investment companies are
placements***
included, the total increases
to approximately $800B
Sources: (1) Center for Venture Research, University of New Hampshire.
(2) SEC. (3) 2012 threeDegrees survey of HBS alumni who qualify as accredited but do not invest in startups.
$43-$87B
Investing capacity of
“dormant angels”**
$170B
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8. Two methods of monetization
We have increasing options to monetize the business as we scale
Immediately
1
Monetize the
Transaction
Later
Transaction services
(Monthly membership fee for premium services, such as investor accreditation verification)
Cut of capital / Carried interest
(transaction fee paid in cash, or percentage of proceeds in liquidity event)
Additional services
(expansion to secondary investments, new asset classes)
2
Monetize the
Network
Business services
(referral fees for connecting funded startups with service providers)
Talent
(listing and placement fees for connecting funded startups with talent)
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9. Launch
We launched our beta test on November 5th and are seeing excellent results
Six participating
364 investors
startups founded by
top-tier MBAs
personally invited by
startups
$45k
in new funding
commitments made in
first 6 days
• Recruited startups from Harvard, Kellogg, NYU, and Columbia, including TechStars 2013 alum
• Startups invited 364 investors, an average of 60 investors each
• 73 new investors registered; total investor base now 130 including pre-launch registrations
• Recorded $45k in new capital commitments in first six days through threeDegrees (on top of $510k
aggregate previous commitments)
• Campaign currently underway to educate and further engage investors, with 60-120 days remaining in
fundraising round for each beta startup
© threeDegrees 2013
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10. Launch
Most importantly, our acquisition funnel demonstrates the power of personal
and professional networks
Investor
acquisition
yields far
exceed
benchmarks
364
personal
invitations
emailed for
beta launch
63%
23%
20%
Open
Rate
Click
Rate
Signup
Rate
73
new investor
registrations
+
Strong
WOM/referral
potential for
startup
acquisition
6 startups
participating in beta
send invitations to
their networks
+ 150%
9 unsolicited
registrations by
qualified MBAfounded startups
*All rates calculated as % of total invitations sent
© threeDegrees 2013
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11. Milestones & rollout plan
Q1 2013 Developed business plan & alpha site
Q2 2013 HBS New Venture Competition regional finalist
Q3 2014 Founders full-time on threeDegrees; beta site completed
Q4 2013 Invitation-only beta test launched on Nov 5
Q1 2014
Redesign platform for scalability and expand monetization
mechanisms, soft launch across top 15 business schools
Q3 2014+ Full launch; expand to other elite networks; hire tech & legal leads
© threeDegrees 2013
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12. Kristy Schultz
kristy@threedegrees.com
(c) 917.476.1908
© threeDegrees 2013
Cory Oliver
cory@threedegrees.com
(c) 713.969.8024
CONFIDENTIAL
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