The Blockchain

Memphis Meeting, May 2015

About Us

19 years Ago – (The Internet Epoch)

Idealab Capital Partners Was

an Early Stage VC Fund

10

Idealab Is a “Business”

Designed To Create

Businesses

3

More than 125 companies

• Helped the companies raise more than $3.5B

• Completed 45 successful exits (IPO’s and

acquisitions) including Companies with more than

$1B exits

• Experienced 50 failures

• Created more than 10,000 jobs

• 43 current operating companies

While Idealab Capital Partners was a Top Rated VC Fund

Over The Last 19 Years, Idealab Has:

2A

About once Every 20 Years …

PERMISSIONLESS INNOVATION

6(b)

Bitcoin and The Blockchain

You Probably Seen Bitcoin Price $:BTC

Down 45% over the last year

$0

$200

$400

$600

$800

$1,000

$1,200

Dec ‘13 Dec ‘14

Meanwhile New Headlines

Goldman backs $50 Million fundraising by

payments company Circle

6

And Even More This Week!

6(b)

Traditional Centralized Networks

Alice

Centralized

Trusted Counterparties

Proprietary – Requires Permission to build on it

Gate Keepers

Extract Tolls

Bob

7

CENTRAL NETWORK

The Blockchain is Decentralized

Alice

Peer to Peer (No Central Authority)

Cryptographically Secure

Consensus Ledger (Blockchain) Algorithm based

Open Source (Allows Permission less Innovation)

BLOCKCHAIN

PROTOCOL IS

EXTENSIBLE TO

VIRTUALLY ANY

ASSET

Value

Bob

Bitcoin Is More Than Digital Money

It’s the BLOCKCHAIN Technology

NetworkHardware ”Mining”

Blockchain

BTC App App

Blockchain

Hardware

OS Software

App App App

Tech Stacks (Oversimplified)

Key Tech of the Blockchain

Peer to Peer (no central authority)

Public key

cryptography

Triple entry public ledger

with proof of work (no central authority)

Open Source

Software

• Application of the Blockchain to become immutable record

of trades between counter parties

• Development of private Blockchains by trading and banking

participants to provide privacy of transactions and assured

control over IT

• Use of Blockchains for clearing and settling transactions.

Initially this will be for new products / non-exchange

securities as well as pilot tests for DTC settled trades

THE BLOCKCHAIN IS A COMING!

Look For the Following

2A

10 Blockchain Startups

Digital Wallet &

Exchange

12

Remittances –

Money transfer to Africa

in Bitcoins

13

Peer-to-Peer ATM and

Money Transfer

14

Global Commerce

Payments Without

Wire Fees

15

Micropayments &

Tipping

16

Open-source Identity

Protocol

17

Securing Records Real-time

On the Blockchain

18

Decentralized

Prediction Market

19

Stealth Start Up

20

Stealth Startup

21 Inc (IoT?)

21

BILL GROSS Managing Director, DDF

TOM MCGOVERN Managing Director, DDF