Investment Period Fundraise Hypothetical Performance Graph Investors sign and fund their investments. Lemons fail early, often causing short-term negative returns. Pearls mature over time, oftentimes more than compensating for the lemons. Companies are sourced and evaluated for addition to the portfolio. Monitoring performance, deploying reserve capital, and supporting especially promising companies with value-added services. Liquidity events within the portfolio typically start to occur during this phase. Value Creation and Monitoring Liquidity & Monetization Harvesting the Portfolio Last phase of fund lifecycle. Companies either IPO, get sold, or end up in liquidation. In limited cases, the fund's investments in some companies could be sold or transferred in a secondary transaction with another investor. 1. Note: Time frames are approximate and may vary in specific circumstances. In limited cases, some investments in portfolio companies may not be disposed after 10 years where the company has not experienced an exit event and remains in business. In those circumstances, the life of the fund may be extended in parallel with the life of those investments. The Manager has discretion to extend the life of the Fund by two years, up to two times. The life of the Fund may be further extended where reasonably necessary to preserve its holdings. Venture capital investing involves substantial risk, including risk of loss of all capital invested. Achievement of investment objectives, including any pattern of investment returns, cannot be guaranteed. 2. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Investors typically start to see liquidity from their investment within a few years following the investment period. Diversifying by stage means that more mature portfolio companies tend to have a quicker time frame to exit, while earlier stage companies may require the full 10 years of the fund to provide liquidity. Failures typically happen in the first half of the fund’s life, which can lead to a “J-Curve” effect on performance. Often referred to as the "J-Curve" 1 2 The Lifecycle of a Venture Fund 25