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Debut Fund – Supplemental Information

Disclaimers

This presentation has been prepared solely for use by the prospective investors of a proposed investment vehicle (“Coastal Grove Partners” or “Partnership”) and shall be maintained in strict confidence. The recipient further agrees that the contents of this presentation are a trade secret, the disclosure of which is likely to cause substantial and irreparable competitive harm to the investment opportunity, its proposed general partner (s) and their respective affiliates. Any reproduction or distribution of this presentation, in whole or in part, or the disclosure of its contents, without the prior written consent is prohibited. The information set forth herein does not purport to be complete and no obligation to update or otherwise revise such information is being assumed. Certain statements, projections or other estimates herein (including estimates of value, returns or performance) are forward-looking statements and are based upon certain assumptions. Other events that were not taken into account may occur and may significantly affect the analysis. Any assumptions should not be construed to be indicative of the actual events that will occur. No person may treat this presentation as constituting either an offer to sell, or a solicitation of an offer to buy, any interest in the investment opportunity. A prospective subscriber must rely solely on the terms of, and disclosure of information in, the investment vehicle’s future Limited Partnership Agreement and Subscription Agreement; the only basis on which subscriptions may be made. Each prospective investor in the Partnership will be required to execute a Limited Partnership Agreement and Subscription Agreement to effect an investment in the proposed Partnership. The proposed Partnership is a high-risk investment vehicle which is available only to qualified individuals or entities that are willing to assume above average risk and limited liquidity with a portion of their net worth. There can be no guarantee that the proposed Partnership’s investment objectives will be achieved and the entire loss of principal may occur. The proposed Partnership’s Limited Partnership Agreement and Subscription Agreement will address additional information regarding risks and conflicts of interests.

Coastal Grove Partners - INVESTING IN LA's MOST PROMISING STARTUPS Proprietary and Confidential

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Supplemental Information

• Coastal Grove Partners - Additional Fund Information – Click Here to View or Print Tear Sheet/Executive Summary – Click Here to View or Print 4-Page Financial Prospectus

• Appendix A - Fund of Funds Market History • Appendix B - Market Validation and Growth Trends for LA Tech

– Factors Contributing to LA’s Growing Tech Ecosystem – Sampling of Tech Companies Founded in LA with Major Exits – LA Tech Ecosystem is Amongst World Leaders of Generating $100M+ Exits for

Investors – Future of Technological Innovation Favors Los Angeles – Newer Companies are Dominating LA’s Tech Ecosystem

• Appendix C – The Relationship Between Venture Capital and Our Economy – Venture Capital Fuels Economic Growth – Venture Investing in LA is a Starved Opportunity – Venture Capital Applied towards Technology Companies and “The Multiplier Effect”

Page 3 - Confidential

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Appendix A: Fund-of-Funds Market History

• Raises ~$30 Billion Every Year

• First Ever FoF (became Adams Street Partners) – Started in 1979 as a $60 Million FoF

– Today: • Manages >$30 Billion

• Raises ~$2 Billion/year to Deploy to 15-30 New Partnership Commitments

• Each FoF is designed to accomplish certain goals for its investors

• Coastal Grove Partners FoF Goal for its Investors: – Generate both financial returns and economic growth by

leveraging diversification, cost efficiency, and access to elite micro-VC funds to capture more TOP Early Stage Investments in Los Angeles’ tech startup market.

Appendix A – Fund of Funds Market History - Page 4 - Confidential

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Appendix B: What Fuels LA’s Tech Ecosystem

7 Keys to Long Term Growth 1. A Vast and Highly Diversified Economy Primed for Innovation through Technology

• Metropolitan GDP of LA: ~$1 Trillion (Equivalent to 1.35 x Silicon Valley)

2. A Large Pool of Highly Educated and Talented Engineers • #1 Ranked US Metro with 200,000+ Existing Workforce of Skilled Engineers • #1 Ranked US Metro Engineering Graduate Enrollment of 10,945 (SF Bay Area: 7,561) • #1 Ranked US Metro with Highest Concentration of “Top 25” Engineering Programs/Schools

3. A Solid Base of Sophisticated, Local Investors • 52% of Startup Funding Rounds are Composed of LOCAL ONLY Investors

4. A Strong Entrepreneurial and Creative Culture • #1 Ranked US Metro with 530 Entrepreneurs per 100,000 People (SF Bay Area: 440/100,000) • 1 of Every 6 Residents in LA Works in Some Form of a Creative Industry

5. A World-Class Creative Industry • $140B Yearly Local Creative Economy (art, design, and media)

6. Many Major Tech Companies, Including Originators of Internet Monetization, were Started in LA • Overture, Applied Semantics, Commission Junction, Value Click, ShopZilla, PriceGrabber, LowerMyBills, Invoca, Burstly,

Shift, Gravity, Convertro, Retention Science, etc.

7. Technological Innovation is Experiencing a Market Shift Towards Los Angeles

Page 5 - Confidential

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Appendix B – Market Validation and Growth Trends - Page 5 - Confidential

Appendix B (continued): Market Validation - LA Startups are Producing Big Returns for Investors

Page 6 - Confidential

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Appendix B – Market Validation and Growth Trends - Page 6 - Confidential

Appendix B (continued): LA is a Pipeline to $100M+ Exits

• Trend: More Money is being Invested in Highly Desirable Los Angeles Startups

Page 7 - Confidential

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Global Ranking MOST $100M+ Exits via M&A

or IPO (2012-2018) 1. Silicon Valley (252 Exits) 2. New York (61 Exits) 3. London (49 Exits) 4. Los Angeles (43 Exits) 5. Beijing (34 Exits) 6. Boston (23 Exits) 7. Tel Aviv (19 Exits)

Since 2012, Los Angeles has averaged 6-7 $100M+ Exits per year (that’s more than Boston

& Tel Aviv have had, combined)

CB Insights – Global Tech Hubs Report 2018

Appendix B – Market Validation and Growth Trends - Page 7 - Confidential

Appendix B (continued): Tech Innovation is Shifting towards Los Angeles

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Personal Computing Telecommunications Open Source

Software Scalable Computing

and Storage

Applications: Content,

Commerce, and Communication

Then NOW

Technological Innovation through Time

• Technological Advancement is Layered in Generations: • Uber, DropBox, Airbnb, SnapChat, Twitter, Facebook, etc., do NOT Exist without First

Developing: • Routers, Switches, Databases, Caching Software, Load Balancers, Application

Servers, Browsers, Compression Algorithms, Streaming Technology, Low-Cost Storage, etc.

• Why New Applications are Rooted in LA: • Content: LA is the Content Capital of the World

• Examples: Maker Studios, Fullscreen, AwesomenessTV, Big Frame, StyleHaul

• Commerce: $400B of Imports & Exports Pass through LA Ports Yearly • Examples: Tradesy, DollarShaveClub, NastyGal, Honest Co, JustFab

• Communication: LA is Synonymous with Communication and Media • Examples: SnapChat, Tinder, Whisper, TextPlus

Appendix B – Market Validation and Growth Trends - Page 8 - Confidential

Appendix B (continued): LA’s Top 100 Tech Companies*

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All 100 Top Tech Companies in LA

47,986 Employees

480 Employees

% of Companies Founded Since 2006

45%

Average Company Workforce

Regional Impact @ 5x Multiplier/Company

2,880 Jobs

Regional Impact @ 5x Multiplier Effect

287,916 Jobs

Coastal Grove Partners: $7M Fund of (LA-Focused) Funds

Invest in Top 4-6 LA-Tech Focused Funds 15 Tech Startup Investments per Fund/yr

75 Risk-Adjusted Investments per Year 300 Company Portfolio in 4 Years

@ 10% Success Rate: 30 New High Growth Tech Companies

14,400 New Tech Company Jobs 86,400 Total Jobs Added to Region

*Top 100 data from builtinla.com (Built In LA, “Largest 100 Tech Companies In Los Angeles 2017”, John Siegel, October 31, 2017)

Appendix B – Market Validation and Growth Trends - Page 9 - Confidential

Appendix C - VC Fuels Our Economic Growth

*Data from “The Economic Impact of Venture Capital: Evidence from Public Companies”; Ilya A. Strebulaev, Graduate School of Business, Stanford University and National Bureau of Economic Research, Will Gornal, Sauder School of Business, University of British Columbia; November 2015 **Summary statistics on the number and impact of VC-backed companies as a percentage of US public companies founded after 1974. All data as of 2014 (40 year impact). ***Due to high levels of M&A activity, the total economic growth impact of VC on the US Economy is GREATER than what is represented by the Public Markets.

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US Public Companies Founded (from 1974-2014)

VC-Backed Percentage Total

Number of Companies 556 42% 1,339

Enterprise Value ($billion) $4,136 58% $7,200

Market Cap. ($billion) $4,369 63% $6,938

Employees 3,083,000 38% 8,121,000

Revenue ($billion) $1,222 38% $3,224

Net Income ($billion) $151 61% $247

R&D Spend ($billion) $115 85% $135

Total Tax Dollars ($billion) $57 59% $98

Appendix C – The Relationship between Venture Capital and Our Economy - Page 10 - Confidential

Appendix C (continued): VC Will Unlock LA’s Economic Potential

• Even in 2018, with $6 Billion of Total VC Investments Made in Los Angeles Tech Companies, this Market Continues to be Underserved

– A Starved Opportunity: Total VC Dollars < 1% of LA Metro GDP

• An LA-Focused Venture Capital Investment Strategy is a Market Opportunity for Investors Who Seek BOTH Financial Returns & Long-Term Economic Development in California

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Region 2017 GDP ($billion)

2017 CA State Rank

2017 US Rank

2017 VC Dollars ($billion)

VC Dollars as % of GDP

LA-Long Beach

$1,043.7 1 2 $5 0.48%

SF-Oakland

$500.7 2 6

$31 3.99% San Jose-Santa Clara

$275.3 3 13

Appendix C – The Relationship between Venture Capital and Our Economy - Page 11 - Confidential

Appendix C (continued): VC Directed Towards Technology Companies – A 5x Job Creator

• New Technology Companies are a Community’s Best Job Creators – Each New Technology Job Generates 5 ADDITIONAL Local Jobs OUTSIDE of High Tech*

• 2 Additional Professional Jobs (ex.: doctors and lawyers)

• 3 Additional Non-Professional/Service Jobs (ex.: waiters and store clerks)

• 86,532 New Local Jobs = 14,422 Tech Jobs + 72,110 Non-Tech Jobs – 14,422 Tech Jobs = ~5% Increase in Size of LA Tech Jobs Market

– To Create a 5% Increase in Tech Jobs, Additional VC Dollars Must Support LA’s Top New Tech Companies

– Solution: Invest Capital to Support Growth of the Most Promising Tech Companies Via Fund of Funds

*5x Multiplier Findings based on research study from 2010 led by Enrico Moretti at the University of California, Berkeley that looked at data from 11 million workers in 320 metropolitan areas. (American Economic Review, May, 2010 and The New Geography of Jobs, 2013)

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Region April 2018

Civilian Labor Force

April 2018 Unemployed

Workforce

April 2018 % Workforce

Unemployed

Additional Jobs Needed in Community to

Achieve 2.4% Rate

LA – Long Beach – Anaheim

6,740,723 248,310 3.7% 86,532

SF – Oakland – San Jose – Sunnyvale – Santa Clara

3,627,389 88,396 2.4% -

Appendix C – The Relationship between Venture Capital and Our Economy - Page 12 - Confidential

INVESTING IN LA’s MOST PROMISING STARTUPS

Ali Mahrouyan, MBA Managing Director Coastal Grove Partners 1055 W. 7th Street, 33rd Floor Los Angeles, CA 90017 Mobile: (310) 871-0898 Email: ali@cgp.vc