Keynote by Fabrice Grinda, Co-Founder of FJ Labs at the NOAH Conference London 2016, Old Billingsgate on the 10th of November 2016.

1. 1 F J L A B S
London, November 2016
Confessions of an Accidental Angel
FABRICE GRINDA
fabrice@fjlabs.com
www.fabricegrinda.com

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3. 2 F J L A B S

4. 3 F J L A B S
| Founding Partners
SPEAKS
JOSE MARIN
 Entrepreneur with $200M+ in exits
 Founder IG Expansion, DeRemate
 Investor in 250+ startups
 Entrepreneur with $300M+ in exits
 Founder OLX, Zingy, Aucland
 Investor in 250+ startups
 Blog: www.fabricegrinda.com
FABRICE GRINDA
SPEAKS

5. 4 F J L A B S
| Investment Track Record
* This represents a passive angel investment by Fabrice in Viajanet, but not Jose’s founder’s equity
55x MOIC - Realized Gain
Seed Round 2006
Acq. by Yahoo 2014 for $640M
40x MOIC – Unrealized Gain
Seed Round 2010
Last round $700M post-money
13x MOIC - Realized Gain
Seed Round 2013
Acq. by MSFT for $100M
39x MOIC – Partial Exit
Seed Round 2010
Last round 3.3B post-money
39x MOIC – Unrealized Gain
Series A Round 2011
Last round $1.3B post-money
22x MOIC – Partial Exit
Seed Round 2014
Last round $150M post-money
11x MOIC – Realized Gain
Seed Round 2011
Acq. By Ebay for $185M in 2016
31x MOIC* – Partial Exit
Seed Round 2010
Last round $150M
16x MOIC - Realized Gain
Seed Round 2011
IPO Frankfurt 2015
10x MOIC – Realized Gain
Secondary Round 2011
IPO NYSE 2015

6. 5 F J L A B S
UNREALIZED GAINS
# of Companies: 215
Average Investment: $380K
Average Holding Position: <2Y
REALIZED GAINS
# of Companies: 68
Average Investment: $105K
Average Holding Position: 3.15Y
IRR 72%
Note: Numbers are rounded up to the nearest tenth
$7.2M $40.9M
5.7x
$81.6M $122M
1.5x
| 254 Active Investments – 500+ Entrepreneurs

7. 6 F J L A B S
Returns In The Top 1% of VCs
Kauffman Foundation
VC portfolio analysis of ninety-nine
VC funds, 1989 – 2011
A 2012 study by Kauffman Foundation1
showed only 6 in 99 LP funds made 3.0x or
more returns on invested capital and the
average is 1.2x with an average holding
period of 7 years
1 “We have met the enemy… and he is us”, Kauffman
Foundation, May 2012
FJ Labs is in the top 1% highest performing
fund
5.7x
Realized
Gains
Average holding duration: 3.15 years

8. 7 F J L A B S
31x 19x 5x
252x 35x 52x
Partial Exit
Seed Round 2013
Last round $520M post-money
Realized Gain
Seed Round 2010
Last round $150M
Realized Gain
Seed Round 2006
Acquired by Naspers 2013
Unrealized Gain
Series Seed 2014
Acq. by Wallapop in 2015;
Wallapop’s last round $350M
Unrealized Gain
Series Seed 2011
Fair market valuation $240M
Unrealized Gain
Series Seed 2014
Last round $25M post-money
Multiples on first money in only, not on all capital invested
| Company Building Track Record

9. 8 F J L A B S
COMPANY BUILDING
$1.5B+ RAISED, $5B+ IN VALUE CREATED AND 4,000+ JOBS
…?

10. 9 F J L A B S
UNREALIZED GAINS
# of Companies: 9
Average Investment: $1.24M
Average Holding Position: 3Y
REALIZED GAINS
# of Companies: 13
Average Investment: $738K
Average Holding Position: 2.5Y
IRR 145%
Note: Numbers are rounded up to the nearest tenth, current values are based on last
round valuations
$9.6M $106.4M
11.1x
$11.2M $102.6M
9.16x
| 23 Companies Built (Inc. OLX, Beepi, AdoreMe)

11. 10 F J L A B S
I´VE MADE ALL THE MISTAKES IMAGINABLE…

12. 11 F J L A B S
| Investment Strategy
MARKETPLACE FOCUS
• 120+ marketplace investments in 20+ countries
• VCs and entrepreneurs know us as marketplace experts
• We get invited to deals because of our marketplace expertise,
both operating and investing
• Even though we focus on marketplaces, we invest
opportunistically in other models
DON’T LEAD ROUNDS
• We invest small amounts relative to the size of the round
• We don’t join boards
• We decide quickly
• Because of our check size, we don’t compete with VCs. They
share deal flow openly and invite us to co-invest alongside
them
GLOBAL
• We mostly invest in the US because of its mature ecosystem, higher
multiple on successful exits and greater deal flow
• We also invest in large markets outside of the US where we typically
don’t take idea risk
• We invest in smaller markets if the companies have global ambitions
• Top tier VCs also invite us to deals because of our international
expertise
STAGE AGNOSTIC
• We invest from pre-seed to Pre-IPO
• 70% of our deals are seed stage, 15% are venture rounds and 15%
are late stage rounds
• 34% of capital goes into seed, 16% into venture and 50% into late
stage

13. 12 F J L A B S
| Investment Heuristics
 $1B+ potential value
 Valid Business Model
 Initial Unit Economics
 Market leader potential
 Scalable & capital efficient
 Growing Market
 No Disintermediation Risk
 Execution Know-how
 That we like
1. The Team
2. The Business
3. The Product
4. The Terms

14. 13 F J L A B S
APPRENTICE PROGRAM
• We hire 2-4 MBA summer interns who then work with us part-
time during their second year
• They become co-founders of the companies we build
• We launch companies with people we know and trust
FUNDING
• We invest up to $2.5-$5M per company
• Founders can focus on the business during the first 18 months
without needing to fundraise
• Investment terms are agreed before launch
• Entrepreneurs have option to raise from other investors
• Top tier funds are eager to invest in companies we build
IDEATION
• We have a systematic process for screening opportunities
• We rapidly test the company’s unit economics and value proposition
before committing to building the idea
• We do not copy ideas we see on the investing side and will reject
intros if we think we might be conflicted
• We sometimes partner with portfolio companies to launch their
equivalent in other markets. For instance, our company Instacarro
partnered with Russian-based Carprice to launch in Brazil
FOCUS
• We build 1-2 companies per year
• We become operationally involved in each company. We help with
product, hiring, strategy, and marketing
• We focus on a small number of companies in order to make sure
they succeed
COMPANY BUILDING STRATEGY| Company Building Strategy

15. 14 F J L A B S
CREATION
• Company is incorporated. 60% for Founding Team & 40% for FJ Labs LLC
• FJ Labs LLC invests first $250k. Side fund is allowed to invest 5% at same terms as FJ Labs LLC
D1
BUILD
• The company hires its first employees and builds the product
• FJ Labs LLC invests another $500k in the company
D90
UNIT ECONOMICS
• Start testing unit economics and product market fit
• FJ Labs LLC invests another $500k in the company
D210
GROW
• The side fund can invest $2M at $8M pre
D360
IDEATION
• FJ Labs and apprentices brainstorm ideas
• Build MVPs to test theoretical unit economics
PRE
COMPANY BUILDING PROCESS| Company Building Process

16. 15 F J L A B S
Marketplace Trends

17. 16 F J L A B S
UBER FOR X
HIGH AOV
LOW FREQUENCY
LOW AOV
HIGH FREQUENCY

18. 17 F J L A B S
B2B MARKETPLACES: THE HOLY GRAIL
HIGH MARGINS
OF 20%
HIGH AVERAGE
ORDER VALUE
HIGH
RECURRENCE
B2B MARKETPLACES HAVE ATTRACTIVE CHARACTERISTICS
THAT MAKE THEM MORE RESILIENT
EXAMPLES:

19. 18 F J L A B S
Musings on the Future of Tech

20. 19 F J L A B S
GLOBAL VR HEADSET SHIPMENTS
(BY CATEGORY)*
*BI Intelligence
VIRTUAL REALITY IS STILL IMMATURE
Oculous Rift ($599)
Platform: high-end PCs
Owner: Facebook
HTC Vive ($799)
Platform: high-end PCs
Owner: HTC/Steam
Gear VR ($99)
Platform: Samsung phones
Owner: Samsung
Playstation VR ($349)
Platform: Playstation 4
Owner: Sony

21. 20 F J L A B S
AI IS ADVANCING BY LEAPS AND BOUNDS
DEEP BLUE BEATS GARRY KASPAROV
IN CHESS | 1997
DEEP MIND BEATS LEE SEDOL
IN GO | 2016

22. 21 F J L A B S
AI streamlines customer support via
automated responses
Initial steps of sales are automated
Image recognition technology helps to tag
and moderate online platforms
AI integrated in the workflows of
professionals will decrease the amount of
work needed from humans
The increased productivity decreases the
cost of the service, which eventually
benefits both supply/demand side and the
unit economics for the business. (see
example on next slide)
AI WILL ASSIST HUMANS IN UNDERLYING
SERVICE PROVIDED
INTERNAL PROCESSES WILL
BE AUTOMATED
HOW AI WILL AFFECT MARKETPLACES

23. 22 F J L A B S
10 HOUR WORKDAY FOR THE
UPCOUNSEL LAWYER WITHOUT AI
HOW AI CAN CREATE A WIN/WIN/WIN SITUATION IN A
SERVICE MARKETPLACE
COST TO CLIENT:
$2,000
LAWYER’S TAKE:
$1,800
COST TO
CLIENT 1:
$1,500
LAWYER’S
TAKE:
$1,000
10 HOUR WORKDAY FOR THE
UPCOUNSEL LAWYER SUPPORTED BY AI
COST TO
CLIENT 2:
$1,500
COST TO
CLIENT 3:
$1,500
UPCOUNSEL’S
TAKE:
$1,500
LAWYER’S
TAKE:
$1,000
LAWYER’S
TAKE:
$1,000
UPCOUNSEL’S TAKE:
$200
$3,000

24. 23 F J L A B S
Sources: *Estimated by dronelife.com
AERIAL DRONE SALES ARE STILL SMALL,
BUT SHOW EXPLOSIVE GROWTH
2013-2015 AERIAL DRONE SALES BY PARROT,
DJI AND 3D ROBOTICS*

25. 24 F J L A B S
MOST AUTO OEMs THINK IT WILL TAKE 10+ YEARS
BEFORE AUTONOMOUS VEHICLES ARE ADOPTED AT SCALE

26. 25 F J L A B S
SELF-DRIVING CARS WILL RESHAPE TRANSPORTATION
AS WE KNOW IT
AV´S WILL DECREASE THE
NUMBER OF TRAFFIC
ACCIDENTS BY 90%
PRODUCTIVITY GAINS
ARE ESTIMATED TO BE
$5.3 T WORLDWIDE
2nd ORDER EFFECTS ON
URBAN DELIVERY AND
LOGISTICS WILL BE HUGE

27. 26 F J L A B S
WE ARE STILL AT THE VERY BEGINNING OF
THE TECHNOLOGY REVOLUTION…

28. 27 F J L A B S
AMAZING TIMES LIE AHEAD!

29. 28 F J L A B S
FABRICE GRINDA
CO-FOUNDER
THANK YOU!
Questions?
fabrice@fjlabs.com
www.fabricegrinda.com
@fabricegrinda

30. Selected Completed NOAH Transactions
Focus on Leading European Internet companies
Covering over 400 companies across 25 online
verticals, a broad range of over 500 investors
as well as 100+ online-focused corporates
Deep understanding of industry dynamics
Ability to add value beyond banking advice
Facilitates overall process and minimizes
management distraction
NOAH Advisors is globally well connected
and has direct access to virtually all key
players in the industry
Knowledge of and strong relationships with
potential buyers’ key decision makers
Proactively finds and unlocks attractive
investment opportunities for leading investors
Annual NOAH Conference in its 8th year
Over 40 years of combined relevant M&A
experience
Routine execution of M&A and financing
transactions with sizes of several billion euros
24 successfully completed NOAH Advisors
transactions underline successful transfer of
M&A competencies to the Internet sector
Entrepreneurial mind-set, focused on growing the
business and establishing a reputation for excellence
Ability to deliver top results in short time frames
Highly success-based compensation structures
align interests of clients and NOAH Advisors, and
demonstrate conviction to deliver top results
Creative deal solutions
September 2015
December 2014
September 2014
October 2014
May 2014
Sale of a 70% stake in
to
Exclusive Financial Advisor to
Drushim and its Shareholders
Sale of 100% of
for $800m to
Exclusive Financial Advisor to
Fotolia and the Selling Shareholders
Sale of 100% of
for €80m to
Exclusive Financial Advisor to
Trovit and its Shareholders
Sale of controlling stake in
to
Exclusive Financial Advisor to
Facile.it and its Shareholders
sold 100% of
for $228m to a joint venture between
Exclusive Financial Advisor to Yad2
and its Shareholders
Unique Industry Know-How
Unmatched Network and Relationships
Strong Investment Banking Competence
Full Commitment - We Are Entrepreneurs!
EUROPE’S LEADING INTERNET
CORPORATE FINANCE BOUTIQUE
September 2016October 2016
May 2016
Investment in
by
Financial Advisor to Oakley Capital
Exclusive Financial Advisor to
10Bis and its Shareholders
®
Marco Rodzynek
Managing Director & Founder
marco.rodzynek@noah-advisors.com
Jan Brandes
Managing Director
jan.brandes@noah-advisors.com
Justus Lumpe
Managing Director
justus.lumpe@noah-advisors.com
The NOAH Advisors Core Banking Team
Nikhil Parmar
Director
nikhil.parmar@noah-advisors.com
10Bis Drushim
Acquisition of a Majority Stake in
by
from
at a valuation of €300m
Investment in
Exclusive Financial Advisor to KäuferPortal
and its Shareholders
by
84% Ownership