Pax Presentation -Learn from the past

1. Karen Zhang / Sep.7 2020 / Creative Founder
Pax Labs
Lessons From the Past

2. Company Overview
• PAX Labs, or Ploom Inc, innovates and develops
premium, app-controlled cannabis vaporization
technology and devises in San Francisco Bay Area.
• It founded in 2007 by two cigarette smokers who
are also grad students at Stanford University.
• The company developed the Juul e-cigarette;
Juul Labs was spun out as a separate company in
2017.
• Now PAX Labs raised 541.7 million dollars in total
funding amount and has around 100 to 250
employees.
Karen Zhang / Sep.7 2020 / Creative Founder

3. Early 2000s -The Beginning an Idea
“We looked like cavemen doing it,
We’d go back inside surrounded
by computers and robots and
machines and then we’re throwing
this burnt stick in the trash.”
”We kind of love this ritual and these
products in certain ways. But we had
a lot of problems with it. What would
happen if we try to design a better
experience for ourselves?””
Karen Zhang / Sep.7 2020 / Creative Founder

4. 2005-2006 -Preparing For Business
“It became a very intriguing space
for us to investigate because we
had so much information that you
wouldn’t normally be able to get in
most industries.”
“As the prototypes got more refined,
we’d give one to someone for a week
for them to use and check in with
them every once a while. None of
these were market-ready. But it gave
us a lot of insights.”
Karen Zhang / Sep.7 2020 / Creative Founder

5. 2012 -PAX Series
Pax 1
• PAX 1, a loose-leaf vaporization — taking dry
material, like tobacco or marijuana, and heating it
to different temperatures.
Pax 2
• PAX 2 is smaller, has a longer battery life, a
bigger oven, and has four temperature settings.
Karen Zhang / Sep.7 2020 / Creative Founder

6. 2015 -JUUL
• The Juul is a low power vape device that
packages nicotine salts from leaf tobacco. It is like
a light version of Pax series.
• It was popular among young people.
Karen Zhang / Sep.7 2020 / Creative Founder

7. 2017 to 2019 -Controversy
• Federal authorities tracked an outbreak of
vaping-related lung illnesses, about 75% of which
have been tied to products containing THC, the
main psychoactive ingredient in marijuana.
• A journalist Nathan Bomey in USA Today
reported that Pax has largely escaped scrutiny as
watchdogs and federal investigators primarily
trained their sights on Juul and other nicotine-
focused vaping companies.
• It promotes to popularize the activity of vaping
THC.
Karen Zhang / Sep.7 2020 / Creative Founder

8. 2017 -Separate the Company
• On June 30, 2017, former Pax Labs Inc. changed
its name to Juul Labs Inc, and concurrently spun off
its marijuana business as a separate company
became the new Pax Labs.
Karen Zhang / Sep.7 2020 / Creative Founder

9. 2020 -Developing New Products
• PAX 3 was released on 2019.
• Its current investors, including Tao Capital
Partners and Tiger Global Management, and PAX
Labs has raised a total of $541.7M in funding over
six rounds.
Karen Zhang / Sep.7 2020 / Creative Founder

10. Sources
Crunchbase: https://www.crunchbase.com/organization/pax-labs/company_financials
PAX: https://www.pax.com/
PAX LABS: ORIGINS WITH JAMES MONSEES: https://socialunderground.com/2015/01/pax-ploom-origins-future-james-monsees/
#:~:text=The%20device%20and%20related%20products,and%20Bowen%20had%20a%20thought.
How two guys from Stanford built the 'iPhone of vaporizers’: https://www.businessinsider.com/what-is-the-pax-vaporizer-2016-3
Confirmed: Pax Labs raises $420 million at a valuation of $1.7 billion: https://techcrunch.com/2019/04/22/yep-you-read-that-right-420-million/
#:~:text=Confirmed%3A%20Pax%20Labs%20raises%20%24420%20million%20at%20a%20valuation%20of%20%241.7%20billion,-Jordan%20Crook
Deadly vaping crisis threatens to ensnare Juul's lucrative marijuana sibling, Pax Labs: https://www.usatoday.com/story/money/2019/10/14/thc-vaping-crisis-juul-labs-pax-
labs-marijuana/3920362002/
Karen Zhang / Sep.7 2020 / Creative Founder