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Providing Pre-IPO Investment Opportunities

H/F Liquidity Fund Deck

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Page 1: H/F Liquidity Fund Deck

Providing Pre-IPO Investment Opportunities

Page 2: H/F Liquidity Fund Deck

Investors want returns in their portfolio...

...however, early-stage private equity poses

unique problems, making investing difficult.

PROBLEM

Page 3: H/F Liquidity Fund Deck

Problems with early-stage private equity investing

▪ The average position liquidates in 10 years

LACK OF LIQUIDITY1.

SHORT ODDS OF COMPANIES SURVIVING

2.

HARD TO MANAGE3.

TOO MUCH TIME

4.

▪ 90% of startup companies will not survive▪ The Wall Street Journal notes that 75% of startups

will not return any investor capital

▪ Kauffman research showed investors have to hold between 20–30 companies for diversification.

▪ Average time spent by an angel investor on due-diligence activities was 20 hours per week

▪ Follow-on investments require extra due diligence

Page 4: H/F Liquidity Fund Deck

SOLUTION/TRACTIONWE PROVIDE A PATH

TO LIQUIDITY VIA:

▪ Later-stage companies are 2 years away from liquidity

▪ Companies making millions in revenue

▪ Mergers and Acquisitions (M&A)▪ Initial Public Offerings (IPOs)

WE TAKE A UNIQUE APPROACHWE TARGET:

Companies pay us in stock for our services

Page 5: H/F Liquidity Fund Deck

INVESTORS SIMPLIFY THEIR INVESTMENTS

Buy one fund and:

- Save time

- Alleviate the need for multiple rounds of due-diligence

-

You get improved investment outcomes

Page 6: H/F Liquidity Fund Deck

145 cities

45 countries

OUR NETWORKWe see the best deals from

around the world

H/F’s portfolio companies have:

▪ A total worth of over US$600 million

▪ Collectively raised over $70 million

250,000 members

Page 7: H/F Liquidity Fund Deck

OUR TRACTION

01 02 03 EXECUTING EXPLORING PERFORMING

We have multiple portfolio

companies exploring public exits

in exchanges around the world,

such as:

The average yearly performance

of our portfolio companies is

above 30% IRR.

Executed five M&A transactions

from our portfolio to:

HireVue

ASX

NSE

AIM

NASDAQTwo Private Equity Funds

Page 8: H/F Liquidity Fund Deck

WE PROVIDE A PATHWAY FORGROWTH IN OUR PORTFOLIO

FOR A % OF COMPANYIN RETURN

BUSINESS MODELWe select the best companies based on their ability generate real recurring revenues, generally Business-to-Business (B2B) or Software as a Service (SaaS) opportunities:

BATTLE-HARDENED TEAMS▪ 30+ years experience▪ Management team at an executive level▪ People who’ve approved purchase orders (POs) or

have forged profitable business relationships

ELOQUENT SOLUTIONS▪ Strong intellectual property▪ Excellent user experience (UX)▪ Great technology

LARGE MARKETS▪ Multi–billion-dollar markets▪ High annual compounding growth

Page 9: H/F Liquidity Fund Deck

Portfolio Acquisitions

Momentum Holdco, Inc.

Acquired By

PORTFOLIO ACQUISITIONS

Page 10: H/F Liquidity Fund Deck

▪ Largest publisher of mobile travel guides in the world

▪ 600+ guides in Apple App Store

▪ IPO countdownless than one year

TYPE OF COMPANIES WE WORK WITH:

Assuring receivables timely converted to cash by multi-billion dollar corporations

Clients:

Page 11: H/F Liquidity Fund Deck

HF LIQUIDITY FUND, LLC STRUCTURE

5 %

5 %

5%

5%

5%

5%

5%

5%

5%

5%5%

5%

5%

5%

5%

5%

5%

5%

5%

5 %

8 Portfolio Companies

1M total shares

300k shares

700k shares

30% H/F retains

70% to investors

Page 12: H/F Liquidity Fund Deck

HF LIQUIDITY FUND, USE OF FUNDSCompliance

5%Legal

5%Accounting

5%

Events

10%

Sales

12%

Business Development13%

Company Expenses

25%

Technology(Licensing, SaaS, and

Software Development)25%

Page 13: H/F Liquidity Fund Deck

Example of an exit:

▪ 1 company IPOs for $100M

▪ HF Liquidity Fund owns 5% of stock which is $5M cash received

▪ HF Liquidity Fund is composed of 1M shares

▪ Each shareholder receives $5 per share (5M/1M shares) distributed pro-rata

IPO Liquidity Event Example

*Time to complete contracting of dealflow 12 months. Typical lock-in period 12 months. Time to IPO market 1 year. Total time of monies in fund 4 years.

IPO Liquidity Event Example

Page 14: H/F Liquidity Fund Deck

8 x $20,000,000 x 0.04 $6,400,000

WHAT INVESTORS GET BY BEING A PART OF LIQUIDITY

The average exit is modeled at

$20 million

We receive a minimum of 4% of the common

shares of the company at exit

The fund will be composed of the

assets of 8 companies

The average share price is

$6.40 per share For early investors coming through Crowdfunder, we are discounting

this value by

20% down to $4.80 per share

1,000,000 shares 1,000,000 shares

=

Page 15: H/F Liquidity Fund Deck

MANAGEMENTJONATHON ANGELL

Experienced angel investor, technologist, investment banker,

and strategic consultant

Expert in M&A transactions from origination to closing

I hold a Masters of Business Administration (MBA) degree as well as:

▪ Certified Public Accountant (CPA)

▪ Certified Financial Manager (CFM)

▪ Presently serve on various Boards

Page 16: H/F Liquidity Fund Deck

Jonathan NelsonFounder, H/F

Don HutchisonCEO, Work.com

Jacob MullinsCEO, Exitround

Will BunkerFounder, match.com

Miguel CasillasFounder & ED, SV Links

ADVISORS

Felipe Matta NavarroGP, Chile Ventures

Page 17: H/F Liquidity Fund Deck

TESTIMONIALSH/F liquidity solves the problem that many VCs and startups face: liquidity and exit; it also focuses on a geographic area that has huge potential but is often neglected: Latin America.Yiwen LiDirector, Asia Pacific at NANTHEALTH

Deep domain expertise combined with pure passion to support the entrepreneurial ecosystemYousef HammadBECO capital

This fund provides exposure to some of the best startups from around the globe. If you need to invest in a diversified fund that provides exceptional returns, this is it.Chris SangBespoke Development, Startups , Angel Investor & Venture Advisor

Innovative grass roots effort to help find & forge compelling new businesses. Look in the dictionary under 'scrappy' and you're going to find Hackers & Founders--just as you will if you look under 'effective.' These guys were lean before it was a catch-phrase, and they rock.Don HutchisonSVP & GM at Excite@Home

Jonathan and team have created a unique, differentiated network that's allowed them to curate amazing companies.Samir KajiSenior Managing Director at First Republic Bank

Effective way to participate in more dealsMark FriedganSerial Entrepreneur and Early Stage Investor

Page 18: H/F Liquidity Fund Deck

*Discounts available for higher commitments - $50K minimum

https://hf.cxJonathon Angell | (415) 336-1808 | [email protected]

200,000 SHARES AVAILABLE AT$4.80 PER SHARE