Derayah Global Venture Capital Fund

Close-ended sharia-compliant venture capital fund, established and managed by Derayah

Financial, a CMA Licensed Joint Stock Company under license number 08109 – 27. The Fund is
managed as per the Investment Funds Regulations issued by Capital Market Authority.
Statement

“This document may not be distributed in the Kingdom except to such persons as are permitted
under the Rules on the Offer of Securities and Continuing Obligations issued by the Capital Market
Authority.

The Capital Market Authority does not make any representation as to the accuracy or completeness
of this document, and expressly disclaims any liability whatsoever for any loss arisen from, incurred
in reliance upon, any part of this document. Prospective purchasers of the securities offered hereby
should conduct their own due diligence on the accuracy of the information relating to the securities.
If you do not understand the contents of this document you should consult an authorized financial
advisor.”

2
Derayah Financial
Derayah Financial is a joint stock company, registered in Riyadh with
Commercial Register No. 1010266977 dated 04/05/1430H, Derayah was
licensed in 23/06/2008 by the Capital Market Authority “CMA” in Saudi Arabia
to conduct securities business (dealing as principle and agent, managing,
advising and custody) under license number 08109-27 as per Capital Market
Institutions Regulations. Head Office: Second Floor, Olaya Centre, Olaya Main
Street, P.O Box 286546, Riyadh 11323, Kingdom of Saudi Arabia. Phone
+966112998000, FAX +9662998071, Email: [email protected]
Disclosure

“This document is non-distributable and does not represent an offer to buy, sell or invest in any type
of securities. Derayah Financial or its director, staff or affiliates makes no warranty, representation or
undertaking whether expressed or implied, nor does it assume any legal liability, whether direct or
indirect, or responsibility for the accuracy, completeness or usefulness of any information that is
contained in this material. Derayah might provide advice or security business services to the issuers
of securities concerned or of a related security. It is not the intention of this material to be used or
deemed as advice, option or for any action that may take place in the future. Unless otherwise
stated, all information contained in this material shall not be reproduced, in whole or in part, without
the specific written permission of Derayah Financial. The content of this document is for information
purposes only. Derayah Financial does not hold itself out as providing legal, financial or other advice
via this document. To ensure a proper understanding of the Fund and its suitability for you according
to your risk appetite, we recommend that you seek specialist investment advice. Investments in
Derayah Financial products are governed by their Terms and Conditions. While reading the product’s
Terms and Conditions, please refer to the principal risks of investing in the product. Some products
are exposed to risks that may not receive the full amount that is originally invested. The information
provided in this document can be changed at anytime without prior notice. Past performance is not
indicative of future returns.”

4
 Derayah Global Venture Capital Fund
Investment Teaser

INVESTMENT OBJECTIVE & STRATEGY GENERAL INFORMATION

The Fund aims to achieve returns on capital over the long-term through venture capital investments, directly or indirectly in venture capital Fund Size The Fund intends to collect capital
companies. It’s a closed-ended, sharia-compliant, private venture capital fund regulated by Capital Market Authority. commitments of up to USD 100 mil
Fund Type Closed-ended, sharia-compliant, private
The Fund adopts an active investment policy in selecting investment opportunities based on sector analysis and the expected returns of
venture capital fund.
the targeted funds and companies. The Fund intends to invest outside and inside of Saudi Arabia.
Fund Manager Derayah Financial Company
The Fund will make its investments according to the parameters stated in the Terms & Conditions, which include investing 50%-100% of
commited capital in venture capital funds, and investing no more than 30% of commted capital in venture capital companies directly. Investment Period Three Years (extendable by one year)

Fund Term Eight years (with an option to extend by

two one-year periods).
KEY DIFFERENTIATORS
Fund Currency United States Dollar
■ Experienced Team with Successful Track Record: A team with over 50 years of combined experience. Target Geographics United States, Europe, India and China.
■ Value Creation: Partnering with high-quality Fund Managers to build long-term value in targeted companies through driving revenue, Target Sectors Cloud & big date, e-commerce,
profit, operational improvements, strategic repositioning and market expansion marketplaces, mobility, new age media,
artificial intelligence & semi conductors,
■ Enhanced Risk Management Process: Comprehensive and disciplined due diligence process that measures risk while actively managing and global therapeutics, diagnostics, and
investments through clear strategic and operational framework healthcare services, and others
Target Stages Seed, early stage, later stage, growth, and
pre-IPO.
MARKET ENVIRONMENT

■ Venture capital is a high-risk, high-reward investment; it has the power to deliver potentially outstanding returns compared to other Target IRR Expected 20% net IRR upon exit.
investments like publich equity or real estate. Risk Level High Risk
■ The spread of the Coronavirus has caused a quantum leap in the use of technology by individuals, companies, and governments; thus
shortening the previously expected time for users to adopt the technology. According to a study prepared by McKinsey, within one Subscription Fee One-time fee of 2% of the capital
year, the percentage of technology adoption jumped to 55% globally at companies level, which is the percentage that companies were commitment made by each unitholder
expected to reach by the year 2027, a jump by an average of 7 years, and at individuals level, the rate jumped to 58%, which is The Management Fee 2% of committed capital during
ratio expected to be reached previously before the crisis by 2023, i.e., an average jump of 3 years. investment period, then 2% of invested
■ In conjunction with the growth in technology adoption by individuals, companies, and governments, an accompanying growth in many
capital.
sectors of venture capital, especially those that witnessed great demand during the crisis and are expected to maintain good growth Performance Fee 20% of profit after the return of capital
rates after the end of the Corona crisis. and payment of a ROI of 8%, to the
unitholders.

For More Information

INVESTMENT MANDATE
Potential eligible investors may contact the Fund Manager at the
■ The Fund invests mainly in venture capital funds outside Saudi Arabia in the United States of America, Europe, India, and China. The
following contact information for additional information about
Derayah Global Venture Capital Fund and its documents.
Fund adopts an active investment policy in selecting investment opportunities based on sector analysis and the expected returns of the
targeted funds and companies, followed by a thorough process that examines the qualitative, quantitative, and operational aspects of Phone Number: +100999111999
the investment fund managers in which the Fund intends to invest in their funds. Below is an explanation of the aspects of the fund
manager selection process: Fax: +100996910611
Email: [email protected]
o Quantitative Factors: Focus on performance, risks and reward as measured against appropriate benchmark and their peer group.
o Qualitative Factors: Focus on each manager’s investment strategy, philosophy process and the history of the fund they manage. Address Second Floor, Olaya Center, Olaya Street,
o Operational Factors: Focus on operational efficiency and infrastructure, business continuity, incentive alignments and controls. Riyadh 11323, Saudi Arabia
Derayah appoints a third party to conduct due diligence.

■ Once selected, the Fund manager monitors each fund manager on an ongoing basis to ensure their performance meets expectations.

MEET THE TEAM This document may not be distributed in the Kingdom
except to such persons as are permitted under the Rules on
the Offer of Securities and Continuing Obligations issued by
Team Title Years Relevant Experience Education the Capital Market Authority.

Mohammed CEO – Derayah +17 Six years in Derayah Financial, eight years in  BS in Finance from King Fahad University of
Asset Management at Al-Ahli Capital, four Petroleum & Minerals in 2002 (Honors Degree) The Capital Market Authority does not make any
AlShammasi Financial, Chairman of
representation as to the accuracy or completeness of this
Fund’s Board of years in Asset Management at Riyadh Bank. document, and expressly disclaims any liability whatsoever
Directors for any loss arisen from, incurred in reliance upon, any part
of this document. Prospective purchasers of the securities
Bassam CIO – Alternative +16  BS in Finance & MIS from the University of South
Fifteen years of experience in Alternative offered hereby should conduct their own due diligence on
Noor Investmetns Derayah Florida in 2002 (Honors Degree) the accuracy of the information relating to the securities. If
Investments locally and globally with Alrajhi  CFA Charterholder since 2006
Financial, Board you do not understand the contents of this document you
United and Arcapita Bank
Member should consult an authorized financial advisor

Bilal CFO – Derayah +19 Eighteen years of experience in financial  BS in Accounting from the Jodanian University in
Bushnaq Financial, Board management, risk management, and financial 1996
Member control in Royal Jordanian Airlines & Al-  CPA Certififed since 1998
Faysaliah Healthcare Systems.  CMA Certified since 2002

Derayah Financial or its director, staff or affiliates makes no warranty, representation or undertaking whether expressed or implied, nor does it assume any legal liability, whether direct or indirect, or responsibility for the
accuracy, completeness or usefulness of any information that is contained in this material. It is not the intention of this material to be used or deemed as advice, option or for any action that may take place in the future.
The content of this document is for information purposes only. Derayah Financial does not hold itself out as providing legal, financial or other advice via this document. Investments in Derayah Financial products are
governed by their Terms and Conditions. While reading the product’s Terms and Conditions, please refer to the principal risks of investing in the product. Some products are exposed to risks that may not receive the full
amount that is originally invested. The information provided in this document can be changed at anytime without prior notice. Past performance is not indicative of future returns.”

DERAYAH FINANCIAL COMPANY

Derayah Financial is a joint stock company, registered in Riyadh with Commercial Register No. 1010266977 dated 04/05/1430H, Derayah was licensed in 23/06/2008 by the Capital Market Authority
Private & Confidential “CMA” in Saudi Arabia to conduct securities business (dealing as principle and agent, managing, advising and custody) under license number 08109-27 as per Capital Market Institutions Regulations.
Table of Content

I. Executive Summary & Structure 6

II. Investment Thesis 10

III. Sectors 19

IV. Geographies 23

V. Investment Strategy & Exit 41

VI. Fund Governance, Fees & Risks 45

VII. Appendix 50

5
 Derayah Global Venture Capital Fund
Section 1:
Executive Summary & Structure

Summary Thesis Sectors Geographies Strategy Governance Appendix

Executive Summary

Fund Overview

Derayah Global Venture Capital Fund Derayah Global Venture Capital Fund
Derayah Global Venture Capital Fund will primarily invest in venture capital funds in USA, Fund Type Closed-ended, sharia-compliant, private venture capital fund.
Europe, and Asia and may allocate a maximum of 30% of committed capital in investing
directly into venture capital companies. Each investee fund will focus on financing venture-
backed startups in one or more stages of growth, starting from seed stage to pre-IPO. All Focus Venture capital funds that target seed, early growth, growth, and
funded startups are expected to be in fast-growing industries, namely cloud computing, big later-stage venture-backed companies.
data, e-commerce, artificial intelligence, marketplaces, and more. The Fund may invest no
more than 20% of its committed capital in opportunistic investments in MENA.
Target Sectors Cloud & big data, e-commerce, marketplaces, mobility, new age
media, artificial intelligence & semiconductor, and global
Investment Objective therapeutics, diagnostics, and healthcare services.

Achieve returns on capital over the long-term by making venture capital investments, directly
or indirectly in venture capital companies over an investment period of (3) years. Target Stages Seed, early stage, later stage, growth, and pre-IPO.

Target Fund Size Up to USD 100,000,000/-

Investment Strategy
Fund Currency United States Dollar.
The Fund intends to invest in venture capital companies, mainly through investing in funds
outside the Kingdom that invest in venture capital companies. The Fund Manager adopts an
active investment policy in selecting investment opportunities based on sector analysis and Fund Term Eight years (with an option to extend by two one-year periods).
the expected returns of the targeted funds and companies. Investments made by the Fund
will be according to the below parameters:
Investment Period Three years (with an option to extend by one additional year).

Risk Level High Risk.

Investment Type Min. of Capital Max. of Capital Target IRR Expected 20% net IRR upon exit.
Commitment Commitment
Investments Outside MENA in one Area Nil 75% Min Commitment SAR1 mil and sophisticated investors with a minimum of SAR200K.

Venture Capital Companies Nil 30%

Geographies
Venture Capital Funds 50% 100%

Investment in One Fund Nil 35%

Investment in one VC Company Nil 10% Fund Manager

7
Executive Summary

Offering’s Key Information

Please refer to Fund’s terms and conditions for more information on the offering of Fund’s units

Offering Period
The Fund Manager will offer units of the Fund to a limited number of investors starting from
April 15th 2021 (the “Offering Date”) until April 15th 2022 (the “Initial Offering Period”). The Fund
Manager is aiming to collect USD10,000,000 /- through cash contributions to start fund
operations, and up to USD100,000,000 to reach the targeted fund size.

Subscription And Targeted Customer Segment

The minimum amount for participation in the Fund is SAR1,000,000 per investor for non-
sophisticated investors or SAR200,000 for sophisticated investors.

Redemptions of Fund’s Units.

Redemption is not allowed.

Additional Information About the Fund

Potential investors may contact the Fund Manager at the following contact information for
additional information about Derayah Global Venture Capital Fund and its documents.

Derayah Financial
Second Floor, Olaya Center, Olaya Street
P.O Box 286546, Riyadh 11323 Saudi Arabia
Phone Number: 0112998000, Fax Number: 0114196498
Website: http://www.derayah.com

8
Summary

Fund Structure

The Fund will invest in a number of externally-managed venture capital funds that invest in companies at different VC stages in different geographies

Unitholders

Fund Management
Maximum 30% of Committed Capital Fund Manager & Fund Board
Derayah Global Venture
Custody Agreement
Capital Fund (the “Fund”) CMA licensed Custodian

Legal Ownership
“SPV” Ltd. Company

Investee Funds US Venture Capital Europe Venture Asia Venture Capital

Funds Capital Funds Funds

Portfolio of venture capital startups

The Fund may co-invest along side investee

funds in selected opportunities,

The Fund may also invest directly in other Company A Company B Company C Company D
opportunities sourced by Derayah Financial

9
 Derayah Global Venture Capital Fund
Section 2:
Investment Thesis

Summary Thesis Sectors Geographies Strategy Governance Appendix

Investment Thesis

Venture Capital Investments Are High Risk – High Return Type Of Investments

Risk-return profile of various investments

High Private Equity and

Venture Capital
Return

Medium

Small Equity
Real Estate

Hedge Funds

Global Government Senior Loans

Bonds

U.S Fixed Income

Deposit
Low

Low Medium High

Risk Level

(1) Source: Morgan Stanly, Wealth Management Perspective Report.

11
Investment Thesis

Ventures Has Outperformed The Public Markets Over Many Periods

Top-quartile VC firms produced an average IRR of over 25% over the last 25 years, performing about 2.5x of public market equivalents

Venture Has Outperformed the Public Markets Over Many Periods

DATA SHOWS AVERGE IRR. TAKEN FROM THE CAMBRIDGE ASSOCIATES VENTURE CAPITAL INDEX AND SELECETED BENCHMARK STATISTICS (Q1 2019)

Top Quartile VC 25.1%

CA Venture Capital Index 24.9%
Last 25 Years
S&P 500
Russell 2000
Top Quartile VC 18.9%
CA Venture Capital Index 15.9%
Last 15 Years
S&P 500
Russell 2000
Top Quartile VC 22.2%
CA Venture Capital Index 18.9%
Last 10 Years
S&P 500
Russell 2000
Top Quartile VC 22.5%
CA Venture Capital Index 19.1%
Last 5 Years
S&P 500
Russell 2000

0% 5% 10% 15% 20% 25%

(1) Source: Alumni Ventures Group, Venture Returns Outperform Public Markets Over Many Periods Report.

12
Investment Thesis

Less Reliance On Stock Market To Unlock Value, Creates Opportunities for Private Investors

Venture-backed companies staying private for much longer than ever before, hence greater returns are increasingly reaped by early VC investors

Delayed IPOs meant a greater portion of the financial value that unicorns generate was being captured by private market investors instead of their public market counterparts
16

14

12 Average

10

8
Average
6

Median Age of U.S Companies Doing an IPO, 1976-2019

The current crop of unicorns is creating gains for private market investors

The 424 companies valued as unicorns in 2019 share a cumulative valuation of $1.6T, while the average age from inception to IPO has surpassed 14 years

160 150 16
134
140 127 14

120 12

100 10
84 82
80 8
62
60 53 6

40 4
23
20 8 11 12 2

0 0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020F

# Unicorns Age at IPO

(1) Source: Morgan Stanly, Wealth Management Perspective Report.

(2) Source: G Squared, Fund V Presentation.
13
Investment Thesis

Fundamental Reasons For Shifting Towards Private Market

Investors’ motives for allocating to private markets remain the same, more or less: the potential for alpha and consistency of scale

The substantial value

created in the private Growth equity ecosystem
markets becomes more robust
Upside potential has been Growth equity has become
substantially high in private an established asset class in
markets than public markets. the last five years

Companies can stay

Private longer
Start-ups are no longer forced to turn to
public markets for capital as they scale, and
many prefer the ability to grow without
public market scrutiny

(1) Source: G Squared, Fund V Presentation.

14
Investment Thesis

COVID-19 Has Massively Accelerated Adoption Of Technologies, Creating Significant Investment Opportunities

The average share of products and services that are partially or fully digitalized, %

Responses to COVID-19 have speeded the adoption of digital technologies by several years. Digital adoption has taken a quantum leap at both the organizational and industry levels; there will be
greater levels of tech absorption as companies seek to digitalize certain parts of their operations. Technology will become more important not just for efficiency and competitiveness but for business
continuity and resilience.
Pre-crisis COVID-19 crisis
100
Global Asia-Pacific Europe North America
Adoption Adoption Adoption Adoption
acceleration1 acceleration acceleration acceleration
7 years +10 years 7 years 6 years 60
55 54 50
41
35 31 33 34 33 34
29 28 26 26 26

0
June May Dec July June May Dec July June May Dec July June May Dec July
2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020

The average share of customer interactions that are digital, %

Rapid shift toward interacting with customers through digital channels. The COVID-19 crisis has changed consumer behavior, increasing online food purchases, use of tele-health, for example, among
others. These behaviors are likely to continue in the medium-to-long term.

Pre-crisis COVID-19 crisis

100
Global Asia-Pacific Europe North America
Adoption Adoption Adoption Adoption
acceleration1 acceleration acceleration acceleration
65
3 years 58 4 years 3 years 3 years
53 55
41
36 32 32
22 25 25
20 20 19 18 19

0
June May Dec July June May Dec July June May Dec July June May Dec July
2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020

(1) Source: Mckinsey & Company, COVID-19 Digital Transformation Report.

15
Investment Thesis

As Consumers Shifted To Digital Channels, E-commerce Surged During the Pandemic

Across eight countries representing 45% of the world’s population and more than 60% of its global GDP

E-commerce has grown two to five times faster than before the pandemic.
2019-20
Year-over-year growth of e-commerce sales as a share of total retail sales,
percentage point change Average, 2015-19

4.5x
5.7 1.6x 3.3x
4.8 4.6
4.7x
3.0 2.8 2.3x 2.1x
2.0x 1.8x
1.8 1.6
1.3 1.4 1.2 1.1
0.6 0.8 0.7 0.6 0.6
UK China US Spain Germany India France Japan

Changing consumption patterns spurred by COVID-19 have opened new opportunities, leading to shifts in market share and possibilities for new entrants

The number of US new business start-ups has nearly doubled during the pandemic, boosting the share of self-employed workers.

(1) Source: Mckinsey & Company, What’s next for consumers, workers, and companies in the post-COVID-19 recovery

16
Investment Thesis

Steps Taken to Keep Business Going During COVID-19 Have the Potential to Increase Productivity

Such bold actions by companies could produce a 1% point increase in annual productivity growth to 2024

Mckinsey’s sector analysis indicated potential for incremental productivity growth of roughly one percentage point per year through 2024

United State and Europe nonfarm business economy sectors

Main contributors to potential

Share of Pandemic-related productivity acceleration potential, CAGR,
Sector productivity growth driven by COVID-
economy 2017 % 2019-24
19

• Telemedicine
Healthcare 10 1.6-3.0 • Operational efficiency

• Operational efficiency
Construction 5 1.7-2.5 • Industrialization
• Digital Construction

• E-commerce
Retail 7 1.0-2.4 • Warehouse automation
• Advanced analytics

• Online channels
ICT 10 1.2-2.3 • Online advertising
• Demand for online services

• Digitalization of sales channels

Pharmaceutical 2 0.8-2.3 • Automation of manufacturing
• AI for vaccine discovery

• Hybrid working
Banking 8 0.9-2.0 • Online Channels
• Shift to digital payments

• Electrical vehicles
Automotive 3 0.4-1.2 • Connected Cars
• Online sales

• Digital interaction (e.g. Apps)

Travel and logistics 13 0.3-0.5 • Agile working
• Automation of tasks

• Automation of tasks
Other 42 0.3-0.9 • Digital channels
• Lower real-estate costs

Overall: 1.1
(1) Source: Mckinsey & Company, What’s next for consumers, workers, and companies in the post-COVID-19 recovery

17
Investment Thesis

Derayah Global Venture Capital Fund – Investment Thesis Summary

The increase in venture capital returns and the growth in disruptive startup opportunities were accelerated as a result of the coronavirus

Venture capital is a high- Venture capital investing has

risk, high-reward investment; the potential to generate
it has the power to deliver significant returns allowing
potentially private investors to squeeze
outstanding returns more returns from
compared to public markets companies before listing

The COVID-19 situation is a

COVID-19 accelerated the
massive disrupter of the
number of trends that were
venture capital market and
already growing steadily.
its respective sectors

18
 Derayah Global Venture Capital Fund
Section 3:
Sectors

Summary Thesis Sectors Geographies Strategy Governance Appendix

Sectors

Many Leading Technology Firms Have Their Roots In Entrepreneurs Funded By Venture Capitalists

2020 was a record year for corporate venture capital investing; more capital was allocated towards venture capital with more opportunities

Corporate venture capital has expanded significantly, and it has proven its resilience in the tumultuous year of 2020, with $95 billion invested. That sum represents the highest annual deal value
invested by corporate venture capital firms ever.
2020 vs. 2019 (x)
95
91 Consumer products
Global corporate venture capital invested ⁽¹⁾ 0.5x
(in billions of US dollars) Retail 0.7x
68 Energy and natural resources 0.9x
60
Media 1.2x
53
43 Financials services 1.0x

Telecommunications 4.6x
28
20 21 21 Advanced manufacturing and services 1.0x
13 13
10 Healthcare 1.9x

Technology 1.5x
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Top-performing institutional investors understand shifting industry dynamics and have prudently been increasing their VC allocations

80
Percentage of Ownership of Corporate Equity ⁽²⁾

70 Individuals
60

50

40
Institutions
30

20

10

0
1971

1979

1992

2013
1970

1972
1973
1974
1975
1976
1977
1978

1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991

1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012

2014
2015
2016
2017
2018
2019
(1) Source: Bain & Company, Global M&A Report 2021
(2) Source: Morgan Stanly, Public to Private Equity in the United States: A Long-Term Look Report.
20
Sectors

Opportunities Of Disruptive Technology Adoption Post COVID-19

Summary of COVID-19 shocks and potential technology adoption

Businesses Individuals Governments Societies

Business failure
Increased cost of operations Reduced fiscal revenue Increased perceived risk of new
Loss of skills
Reduced access to internal capital Increased social expenditure health crises
Shocks International competitiveness
Reduced remittance
Widening public deficit Increased acceptance of tracking
Long-term loss of income
and biotechnologies

Higher demand for goods and Digital surveillance

Technology Digitalization of business services Surge in contactless transactions
Investment in e-government
Adoption operations Higher demand for social welfare
solutions
Increased usage of precision
programs medicine

Big data analytics & cloud, AI,

Big data analytics and cloud, AI,
internet of things, blockchain,
distributed power systems Big data analytics & cloud, AI, Genomics, big data analytics &
Technologies robotics, drones, 3D printing,
supported by 3G and 4G and blockchain. cloud, AI, and internet of things.
genomics, and distributed power
systems supported by 5G

(1) Source: International Finance Corporation, The Impact Of COVID-19 On Disruptive Technology Adoption In Emerging Markets Report.

21
Sectors

Promising Sectors as a Result of the Pandemic

Information technology remain an active sector as the pandemic draw attention to technological capabilities

Cloud Computing & Big Data Marketplaces Mobility 2.0

Artificial intelligence, machine learning, cloud robotics, Experience economy and on-demand everything; The reinvention of car ownership, automotive channel
crypto / digital assets, and blockchain applications. reframing entrenched value chains, connecting disruptions; streamlined shipping, reengineered freight
consumers and business to products and survives forwarding & logistics

Fintech / Insurtech New Age Media & Social Mobile Sustainability

Expanding financial inclusion; banking for the Customer-to-maker direct relationships, democratized “Mind, body, soul” – brands and value proposition at
unbanked; streamlined loan processing; automated content creation and distribution, elimination of media the intersection of sustainability, health & wellness,
claims management middleman; digital doctors, connected homes, digital mindfulness, and holistic living.
assistants, and personal “operation systems”

(1) Source: G Squared, Fund V Presentation

22
 Derayah Global Venture Capital Fund
Section 4:
Geographies

Summary Thesis Sectors Geographies Strategy Governance Appendix

Geographies

Regional Divides Exist in National Innovation Performance: Northern America and Europe Lead, Followed By Asia

USA has long-held supremacy over venture capital and startup activity,; recently other regions are witnessing significant growth in their VC ecosystem

Top four start-up ecosystems in the world ⁽¹⁾ Markets & Rationale

Metric US China India UK Market Rationale

Total number of unicorns 299 166 37 35

United States Mature and scaled market with substantial access to talent and capital

Total number of funded start-ups 65K 16K 10.2K 13K

Total engineering graduates 0.26M 4.6M 1.5M 0.07M Europe Recent strength and ambition to be a leading start-up ecosystem

Total number of internet users 297M 854M 560M 64M

India Rapidly emerging hub with several innovative national infrastructure platforms

Total number of incubators and accelerators 1.5K 14K 450 400

A global frontrunner in terms of the digital economy accounting for 45% of
China
Ease of doing business rank, WB 2020 (2019) 6 (8) 31 (46) 63 (77) 8 (9) global e-commerce

The % of global start ups and the % of the world’s unicorns ⁽²⁾ 2018 vs 2020 advanced analytics talents ⁽³⁾
VC-backed private companies that
raised funding, 2009-19, % Unicorns, 2019, %
2020
2018

US 45 50 Western China
~ 170,000 ~ 190,000
Europe
~ 125,000 ~ 75,000

Small to Medium Gap Expected Medium to large gap expected

Europe 36 14 United
~ 310,000 India ~ 210,000
States
~ 180,000 ~ 65,000

Slight surplus in supply with Equilibrium to small gap expected

structural mismatch
Asia 17 33 expected

(1) Source: Bain & Company, India Venture Capital Report 2021
(2) Source: McKinsey & Company, Europe’s start-up ecosystem article
(3) Source: Bain & Company, Advanced Analytics Talent Will Double. It’s Still Not Enough article 24
 Derayah Global Venture Capital Fund
Section 4:
Geographies – United States

Summary Thesis Sectors Geographies Strategy Governance Appendix

Geographies - United States

The Startup Ecosystem Of USA Is One Dominant Force That Occupies Top-ranking Positions Globally

Flexible government regulations & the entrepreneurial culture backed with funding availability are among the main strengths of the US ecosystem ⁽¹⁾

Entrepreneurial Culture Flexible Government Regulation Growth Mindset Funding

Supported by other driving Flexible regulations create a They seek challenging The United States ecosystem has
factors like risk tolerance, and an good investment climate, in opportunities and are more long supported early and late-
open and collaborative mindset, which firms operate, stimulates comfortable taking risks and stage funding for startups.
where there is a flow of economic growth by providing commit to a goal.
information and ideas. firms with the incentive to invest
and improve productivity.

Incredible diversity, regional differences, & population size create a complex interconnected web of ecosystems

The United States ranks first among countries with the most unicorns as of 2020. ⁽²⁾ The US is home to the majority of future unicorns ⁽³⁾
2% 2% 2%
2%
228
2% United States

122 United Kingdom

4%
Germany
25 4%
Australia
6%
21 India

6% Argentina
13 China
70% France
10
Singapore
7 Sweden

(1) Source: Startupblink, Startup Ecosystem Guide: The USA And Canada Article
(2) Source: Statista, The Countries With The Most Unicorns Article
(3) Source: CB Insights, 50 Startup Unicorn Companies In 2020 Article 26
Geographies - United States

Venture Capital Has Become A Much-admired Method For Funding Entrepreneurs And Innovation

Despite COVID-19, the amount of capital infused by VC investors is remarkable

Following COVID, US regulators allowed US banks to take stakes in venture capital funds, increasing the capital invested in venture capital significantly.
US VC Deal Flow ⁽¹⁾
$180 14,000
12,307 11,651
$160 11,324
10,662 11,272 10,086 10,919 12,000
$140 9,474
10,000
$120 8,023
6,892 8,000
$100
5,519
$80 6,000
4,399 4,852 4,587
$60 3,398 4,000
$40
$20 2,000
29.7 38.1 37.2 27.5 31.8 45.2 41.5 48.2 73.8 85.1 80.9 87.3 142.6 139.5 164
$0 0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Capital Invested Deal Count Company

Capital Count
Count

Companies raised over $62B in Q1’2021 up to 117% YoY from Q1’2020, setting a solid pace for the rest of the year ⁽²⁾

1,818 1,736 1,735

1,534 1,657 1,800
1,519 1,536 1,593 1,700
$120.00 1,600
1,500
1,400
1,300
1,200
$80.00 1,100
1,000
900
800
700
600
$40.00 500
400
300
$30.50 $29.80 $25.30 $28.70 $29.00 $37.10 $38.40 $62.10
200
100
$- -
Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21

Capital Invested Deal Count

(1) Source: KPMG, Venture Pulse Q4 2020 Global Analysis Of Venture Funding Report
(2) Source: CB Insights & PWC: Money Treetm Report Q4 2020
27
 Derayah Global Venture Capital Fund
Section 4:
Geographies – Europe

Summary Thesis Sectors Geographies Strategy Governance Appendix

Geographies - Europe

Structural Market Changes & Competitive Dynamics Expanded The Opportunity Set in Europe

The experience, supportive government, and a remarkable track record are some of the main characteristics of the emerging European startup ecosystem

Experienced Generations Delayed IPOs Foreign Investment Track Record Supportive Government

A generation of experienced Companies are staying private The US and Asian investors are Good track record. Managers Government support, both on
operators (founders, developers, longer, allowing venture capital becoming more active in Europe investing in European companies European and national level
executives) launching startups. investors to achieve higher after seeing big outcomes and with more than 20% growth in
returns before companies go relatively lower valuations. sales achieved a greater than 2.X
public. gross multiple on invested
capital (MOIC) 76% of the time.

The growth in ecosystem, creation and funding has grown up 4x since 2010, as Europe has specific advantages

Fields where Europe has specific advantages Early-stage capital invested in Europe, $ billion

10
Frontier Science: Universities & research institutions

7.5

5
Fintech: modern infrastructure, flexible regulations

2.5

Bio: Huge data pools, healthcare systems, underexploited research

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

(1) Source: Mosaic, Europe, Unicorns And Global Tech Diffusion Report

29
Geographies - Europe

Fund Raising Remained Healthy Despite The COVID-19 Crisis, With A Total Of $41B Invested In Venture Capital.

Capital invested in Europe will hit at least $35B in 2020 with the potential to exceed $41B when adjusted for reporting lag.

40.0 $2.08
$6.20
Capital Invested ($B) adjusted for report
lag effect
30.0

Legend
Actual amount ($B) 20.0 $38.6
Adjusted for reporting lag ($B) $34.9

$26.7
$22.8
10.0
$16.5

0.0
2016 2017 2018 2019 2020

Total estimated enterprise value ($B) of European tech companies founded after 2000, in private and public markets

Public Private

$573B

$388B

5.6x
$136B
$37B

2016 2020 2016 2020

(1) Source: Atomico, The State Of European Tech Report

30
Geographies - Europe

Europe Has Made Great Strides In Tech In Recent Years

Fintech companies raised more capital in 2020 than any other industry, driven by a number of huge growth rounds raised by Europe's largest Fintech giants ⁽¹⁾

Three major trends unfolding.

Digital adoption has accelerated. Health Transportation Energy

Fintech

Security Real Robotics Telecom

Remote working has leveled the playing field in the war for talent. Estate
Marketing

Semi- Home
Travel Sports Fashion conductors Living
Software

Job Educa
Technological sovereignty has become a hot topic. Food RecruitmentGaming Kids tion
Media Legal
Music Hosting Event
Tech

Europe created 205 unicorns, mostly venture-backed, and there is a surge in the number of unicorns and the pace at which they are created ⁽²⁾

Cumulative number of European unicorns created by year $1 billion valuation was reached
Fintech 45 59
Enterprise Software 42 52
Health 21 65
205 Transportation 11 21
190 Marketing 9 19
Food 10 15
165
Travel 13 12
20% 87% Energy 2 21
VC backed 122 VC backed Fashion 12 10 Unicorns
Gaming 17 4
100
Security 7 11
€136M 80 ~€355M Future Unicorns
Media 5 10
average average
59 Home Living 6 7
funding funding
Semiconductors 6 4
30 36
22 26 Hosting 8 1
Sports 3 4
Music 2 4
Event Tech 5
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Wellness Beauty 1 3
Robotics 3 1

(1) Source: atomico, The State of European Tech Report

(2) Source: Index Ventures, Oct 2020 European Startups report
31
 Derayah Global Venture Capital Fund
Section 4:
Geographies – China

Summary Thesis Sectors Geographies Strategy Governance Appendix

Geographies - China

The Remarkable Growth Of VC Investments in China Has Caught The Eyes Of Global Investors

Strong government, a flourishing private sector, and immense market demand are among the factors behind unprecedented growth in VC investing ⁽¹⁾

Strong Government
01 Government proposed supportive measures such as revamping institutional mechanisms,
intellectual property protection, attracting talent, revising financial policies, and
optimizing financial markets.

Flourishing Private Sectors

02 The increasing financing resources, flourishing private wealth, limited investment options,
abundant stream of talent, and rapid technology advancement all combine on the supply
side to push the volume of VC investments high.

Immense Market Demand

03 The fast-growing middle-class, smartphone adoption rate and online market expansion,
and need for upgrades in traditional industries are stroking the appetite for new
technologies and innovation.

China is positioned as one of the first countries to begin steady economic recovery; VC investments recovered significantly quarter over quarter

Venture financing in China ⁽²⁾

Future outlook 2013-Q4'20
Looking ahead to 2021, VC investment in China is quite optimistic, given the increasing
focus on domestic investments and growth. $50 1,800
$45 1,600
$40 1,400
$35 1,200
$30
Market leader in Tech 1,000
$25
With the second-largest GDP behind the USA, China is a rapidly growing market for 800
producing and consuming technology. China already leads the world in internet users, and $20
$15 600
with internet penetration just above 50%, massive growth is still to come.
$10 400
$5 200
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2013 2014 2015 2016 2017 2018 2019 2020

Deal Value Deal Count

(1) Source: INSEAD, China’s Venture Capital (VC): Bigger Than Silicon Valley’s?
(2) Source: Kpmg, Venture Pulse Q4 2020 Global Analysis Of Venture Funding Report
33
Geographies - China

China’s VC Ecosystem is Going Beyond The Traditional Playbook

The key characteristics of China’s ecosystem strengthen the complete process of fundraising, investing, portfolio management, and exits

The Chinese VC industry can be divided into three categories:

Platform-Based VC Resources-Based VC Composition-Based VC

Strategic investment arms of large enterprises in China, They were born out of long-time evolution (+10 years) of a Independent venture firms thrive on their arrangement of
create an “industrial-centric platform.” Through this, they successful franchise. They have long-term investment “strategic partnerships.” They create, combine and build
integrate business, operation, and strategic synergies. experience, capital advantages, managerial expertise, upon relationships to incorporate external resources and
premium brand value, vast networks when structured & expertise as part of their product offering.
integrated over time.

Key characteristics: Key characteristics: Key characteristics:

Platform strength helps improve capital efficiency and Substantial capital and possession of self-owned Establish mutually beneficial business partnerships with
strong ability to promote business cooperation within the accumulated resources enable it to conceive & implement leading enterprises, mostly tech giants, new economic
broader platform. strategies designed to improve its performance. leaders or other financial institutions.

Unequal advantage due to being a leader in their field, Knowledge and expertise to invest across multiple stages Combining industrial and financial capital to integrate
they have more accurate and deeper insights over peers and sectors. They bring value by extending extensive post- extensive industry resources, insights, and capital into its
about the marketplace, customers, and suppliers. investment support and operation know-how. “pooled brainpower and capabilities.”

Attract entrepreneurs, winning deals and negotiation Using their extended networks to create technological or
Using economies of scale to reduce resource redundancies
terms in addition to connecting investees to valuable business collaborations, talent introductions, strategic and
and maximize potential financial returns.
resources in an accelerated manner. operational advice, or comprehensive financing assistance.

(1) Source: Fof Weekly, A Breakthrough In China’s Venture Capital

Industry Model: The Advent Of Ecosystem Vcs And Value Creation
34
Geographies - China

China Has Been On The Frontlines Of Post-covid-19 Economic Recovery

Five accelerating trends in China since COVID-19 ⁽¹⁾

Lasting impact of COVID-19 on China's tech sector; many new technologies have played an important role in containing the outbreak ⁽²⁾

Big Data
China implemented a national initiative in Feb 2020 to assign residents colored QR codes
to determine whether the have to be quarantined.

Artificial Intelligence
Leading Chinese AI start-up is offering AI-packed services to help analyze the
computerized scans used by hospitals to diagnose patients suspected of having COVID-19.

Fifth Generation (5G)

Two hospitals were built in 10 and 12 days, respectively. The hospitals' design plans were
produced in 24 hours and construction drawings in only 60 hours with 5G enabling
hundreds of designers to collaborate simultaneously.

(1) Source: Mckinsey & Company: Fast Forward China: How COVID-19 Is Accelerating Five Key Trends Shaping The Chinese Economy
(2) Source: SCMP Advertising, China Internet Report 2020
35
 Derayah Global Venture Capital Fund
Section 4:
Geographies – India

Summary Thesis Sectors Geographies Strategy Governance Appendix

Geographies - India

Economic Reforms, Current Market Trends, The Impact Of Tech Change, and Changing Government Attitudes

There are five key opportunities and growth drivers behind the growth in the Indian startup ecosystem ⁽¹⁾

Market Characteristics Technological Change Government Support Companies Engagement Entrepreneurship

In a country with nearly 1.3 There is a huge need for The Indian government has put In an increasingly uncertain and Those who are willing to take
billion people, even niche innovative solutions, particularly digital transformation at the fast-moving business risks are the ones who can put
products can have significant those that alleviate poverty and center of its plans. environment, large companies ideas into practice and seize
market potential. As the Indian benefit many people. Given the face pressures to innovate ever opportunities. Most startup
economy continues to grow, scale of India and its resource more rapidly. founders in India have intrinsic
incomes and purchasing power constraints, low-cost, high- solid motivations and a desire to
are increasing steadily. impact solutions are required. make a difference in society.

The ease of doing business has improved in India in the last five years ⁽²⁾

India’s Ease of Doing Business ranking, World Bank India’s Ease of Doing Business score across key dimensions,

140 100
134 131 130
81 82 80 80
80 74
100 68
65 65

77 60
47
63 41 41
40 35

20

0
2014 2015 2016 2017 2018 2019 2020 Starting a business Getting credit Paying taxes Enforcing contracts

(1) Source: Observer Research Foundation, The Indian startup ecosystem: Drivers, challenges and pillars of support report
(2) Source: Bain & Company, India Venture Capital Report 2021
37
Geographies - India

The Strength Of India’s VC Ecosystem Has Driven Real Economic Value

Investment momentum continued in 2020 despite the pandemic

Maturing and Renewed Covid

Growth Stage
moderation optimism impact
12.5 987 1000
854 $11.1
$10.0 900
10 684 756 800
571
589 809 700
593
7.5 $6.3 $6.6 600
458 500
$4.6 $4.8 $4.7
5 400
$3.1 $2.9 Second highest deal value in the 300
decade: Edtech, Foodtech, and
2.5 200
enterprise SaaS have attracted the
most investments 100
0 0
2012 2013 2014 2015 2016 2017 2018 2019 2020

Impact of COVID-19 on VC Investments – Trends that continued

Strong Deal Flow Continued momentum in tech & SaaS

Growth in deal volume continue with a 7% increase in 2020 VC investment value in consumer tech and SaaS grew by 25%
over 2019 810 deals in 2020 vs. 750 in 2019 and 550 in 2018. and 10% respectively, in 2020 vs 2019

Fund raising at an all-time high Strong growth in start-ups

$3B raised by Indian focused VC funds in 2020 (40% growth India among top five start up ecosystems, globally number of
over 2019) 520 active VC funds in India in 2020 vs 480 in 2019 startups grew by 7K in 2020, number of seed stage deals grew
(and 400 on average over 2017 -18) at 13% in 2020. Largest ever increase in unicorns in single year;
twelve unicorns were added in 2020 for total of 37 unicorns in
India .

(1) Source: Bain & Company, India Venture Capital Report 2021

38
Geographies - India

The Largest Three Sectors Received ~75% Of VC Investments

In 2020, consumer tech, SaaS, and fintech— accounted for nearly 75% of all VC investments by value, with consumer tech attracting the maximum funding

Split of VC Investments by sector ($B) Growth in deal size and deal volume (2018-20)

12.0 $11.1B

$10.0B
10.0
Other SaaS
Healthcare
BFSI Consumer
8.0 B2B
Tech
$6.6B Fintech

6.0 SaaS Fintech

Healthcare
4.0

Consumer
2.0 Tech BFSI

0.0
2018 2019 2020
No. of
756 756 809
deals

(1) Source: Bain & Company, India Venture Capital Report 2021

39
 Derayah Global Venture Capital Fund
Section 5:
Investment Strategy & Exit

Summary Thesis Sectors Geographies Strategy Governance Appendix

Investment Strategy

An Opportunity Of Tapping Into Diversified Portfolios Across Sectors & Regions

Derayah Global VC Fund's strategy aims to generate an expected high returns to investors and achieve broad diversification and appropriate allocation in
venture capital stages and sectors by investing in various venture capital funds that are all wrapped into one portfolio

Investment Strategy Target Geography

Mainly invest in venture capital North America, Europe and Asia
funds and directly in venture
capital companies

Fund Term Area of Focus

8 years (with an option to extend Cloud & big data, AI, digital
by two one-year periods) mobility, e-commerce, security

Investment Period Target IRR

Three years Expected 20% net IRR upon exit

41
Investment Strategy

Manager selection and access are pivotal to long-term success

We adhere to a robust Fund Manager selection process that includes an analysis of each manager that covers quantitative, qualitative and operational
factors. We also consider the expertise of the management team, reputation and stability of each Fund Manager.

Quantitative Factors Qualitative Factors Operational Factors Monitor

Focus on performance, risks Focus on each manager's Focus on operational Once selected, we monitor
and reward as measured investment strategy, efficiency and infrastructure, each Fund Manager on an on
against appropriate philosophy, process and the business continuity, incentive going basis to make sure their
benchmark and their peer history of the fund they alignments and controls. performance meets our
group. manage. Derayah appoints third party expectations.
to conduct a due diligence

42
Investment Strategy

Fund’s Term & Exit Strategy

Derayah Global VC Fund Term will extend for eight years, three of which will be the investment period.

Fund Term, 8 Years

Investment Period, 3 Years Fund Term might be

extended for two
additional years

Capital Call
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

In case of any exits, Investment amount, will be transferred to clients.

Derayah Global Venture Capital Fund will realize the returns from investments upon exit from investee funds, and from direct VC companies

The Fund will use a variety of exit strategies as follows:

Exit from Investee Funds

Exit from VC Companies

Private Sale of Units Sale to strategic buyer

Listing Investment Merger with an industrial

Companies IPO entity

Private sale of investment

Initial Public Offering IPO
companies

43
 Derayah Global Venture Capital Fund
Section 5:
Fund Governance, Risks & Fees

Summary Thesis Sectors Geographies Strategy Governance Appendix

Fund Governance, Risks, and Fees

Fund Governance

Derayah Financial is licensed by CMA to carry out securities business including dealing,
Fund Manager custody, advisory and assets management.

The Fund Manager appoints chairman and board members with experience to oversee
Fund Board the management and operations of the Fund.

Derayah mandates PKF as Fund Auditor. The Auditor will carry out an audit of the Fund’s
Fund Auditor financials annually.

Derayah mandate Alinma as Fund Custodian. The Custodian will safeguard the assets of
Fund Custodian the Fund and will also be responsible for setting up the SPV.

The Sharia Advisor monitors the Fund's business, operations, and investments, to ensure
Sharia’h Advisor compliance with Islamic Sharia Law

Tax & Structure Derayah Financial will mandate King & Spalding to carry out any tasks related to taxes with
Advisor respect to Fund’s operations

45
Fund Governance, Risks, and Fees

Board Members
Three board members will oversee the operations and management of the Fund

Mohamed Bin Saeed Al-Shammasi Bassam Abdulaziz Noor Bilal Khaled Bushnaq
CEO - Derayah Financial CIO - Alternative Investments CFO – Derayah Financial
Chairman Board Member Board Member

Six years in Derayah Financial, eight years in Fifteen years of experience in Alternative Eighteen years of experience in financial
Asset Management at Al-Ahli Capital, four Investments locally and globally with Alrajhi management, risk management, and financial
years in Asset Management at Riyadh Bank United and Arcapita Bank control in Royal Jordanian Airlines & Al-
Faysaliah Healthcare Systems.

BS in Finance from King Fahad University of BS in Finance & MIS from the University of BS in Accounting from the Jordanian
Petroleum & Minerals in 2002 (Honors South Florida in 2002 (Honor Degree) University in 1996, CPA certified since 1998,
Degree) CFA charterholder since 2006 CMA certified since 2002

46
Fund Governance, Risks, and Fees

Risks

There are major risks associated with investing in the Fund, investors must read and understand “Potential Risks” in Fund’s Terms and Conditions & consult
an independent financial advisor

Fluctuation In Value Illiquid Securities

The price of units in the Fund can increase as well as decrease. Investment in the Fund requires a long-term commitment with
The value of invested funds can change because the value of no assurances of return of invested capital. Most of the
the assets in which they invest in can be affected by changes in companies in which the Fund will invest will be highly illiquid
01 market conditions, the economy, the decisions of government 04 and there can be no assurance that the Fund will be able to
regulators and the performance of respective fund managers. realize positive returns in its investments in a timely manner, if
The Fund is only suitable for investment by sophisticated at all.
investors who understand the risks involved and who are able
and willing to withstand the total loss of their investment.

Suitability Foreign Currency

An investment in the Fund involves significant risks and is The Fund intends to invest a substantial portion of its capital in
suitable only for prospective investors who fully understand funds located or operating principally outside of the Saudi
and have the financial ability and willingness to accept the Arabia, including the United States. Investments in foreign
02 risks and potential lack of liquidity of such investment. 05 securities involve currency exchange risks, such as fluctuations
in the rate of exchange between currencies, costs associated
with conversion of investment principal and income from one
currency into another.

Volatile Securities Performance and More Info

The Fund intends to diversify its risks by investing in a There is no guarantee for unitholders that the performance of
balanced portfolio of venture capital funds which allocates the the Fund is similar to expected performance.
risk across multiple regions, market sectors and company
03 stages. These investments can be illiquid, volatile, and 06 Investing in the Fund is not a deposit with any bank.
susceptible to numerous risks.
Redemptions are not allowed, and the Fund Manager may
charge Performance fees upon exit as per the Terms and
Conditions of the Fund.

47
Fund Governance, Risks, and Fees

Fee Structure

2% 20% Actual

Subscription Fee Incentive to FM Structuring Fees

One-time fee of 2% of the 20% of profit to the Fund Manager The Fund will bear all expenses
capital commitment made by after the return of capital and related to establishing and
each unitholder payment of a ROI of 8% launching the Fund.

2% 0.2% Actual

Management Fee Custody Fee Operational Expenses

2% of committed capital during 2 bps of the NAV, with a The Fund will be responsible for
investment period, then 2% of minimum of $21,000 annually, operational and administrative
invested capital. capped at $48,000 expenses

$8K $5K $2.6K

Audit Fee Sharia Advisor Fee Independent Board

$8,000 is paid annually to the $5,000 is paid annually to the $1,333 for each independent board
appointed auditor. appointed Shariah review member per meeting capped at
board $2,6666 annually.

48
 Derayah Global Venture Capital Fund
Section 6:
Appendix – Potential Investee Funds

Summary Thesis Sectors Geographies Strategy Governance Appendix

Appendix – Potential Investee Funds

Investee Fund

Fund Summary Fund Manager

Fund Name G Squared V G SQUARED Equity Management

Target Fund Size $1 billion A leading mid-to-late-stage venture capital fund manager
with a unique investment strategy and track record of top-
Target IRR 30% quartile returns. Leveraging market inefficiencies, to build
About portfolios through secondary direct transactions and
Cloud & big data, e-commerce, primary investment rounds/employee tender offerings and
Target Sectors seek to offer investors unparalleled access to value creation
marketplaces, mobility, AI, among others
occurring in the private technology market.
North America with opportunistic
Target Geographies
investments in other markets. AUM $2B+ Historical Firm AUM

Target Stage Growth stage venture-backed companies Offices SF – NM – CHI - CT, USA & Zurich

Investment Strategy Examples of Companies in Current Fund

Focused on equity investing in leading private growth-stage venture-
backed companies.

Team Examples of Exited Companies from Previous Funds

5 Partners with an average of 17 years of investment experience in
venture investments, technology, public and private finance, M&A and
Investment banking.

Large research team, deal origination team, senior associate, associates

and analysts.

50
Appendix – Potential Investee Funds

Investee Fund

Fund Summary Fund Manager

Chiratae Ventures International Fund IV Chiratae Ventures

Fund Name
LLC
Chiratae Ventures (formerly, IDG Ventures India), is a
Target Fund Size $300M leading venture capital fund focusing on early-stage Indian
start-ups. Founded in 2006, Our investment strategy is to
As per India's regulations, the fund
Target IRR About invest primarily in technology companies doing business in
manager cannot put a target IRR
the software, consumer media and technology, health-tech,
Consumer-tech, Fin-tech, Health-tech, fin-tech sector and deep -tech sectors that are incorporated
Target Sectors in India and outside India
SaaS, Deeptech

Target Geographies India AUM As of end of May ’21, Total AUM is $875M

Target Stage Seed, Series A and limited growth stage Offices Bangalore and Delhi

Investment Strategy Examples of Companies in Current Fund

Early Stage:
- Main focus of the fund
- First cheque up to $7m
- Opportunistic seed investments

Team Experience Examples of Exited Companies from Previous Funds

• Sudhir Sethi – 18 years in VC, 37 years of Industry experience across

Wipro, Walden, Cyient, HCL.
• TCM Sundaram– 17 years in VC, 36 years of industry experience across
Wipro, Walden, Venture Infotek

51
Appendix – Potential Investee Funds

Investee Fund: Cottonwood Technology Fund

Fund Summary Fund Manager

Fund Name Cottonwood Technology Fund Cottonwood Technology Fund

Target Fund Size €100M Cottonwood Technology Fund is a top-decile performing

early stage venture capital fund. Cottonwood focuses on
Target IRR > 30% Impact Investments in Key Enabling Technologies (IP-driven
About
companies with strong patents).
robotics, photonics, nanotechnology, Track record:
Target Sectors
clean energy, medtech, advanced materials Fund I: 46% IRR, 6.3x multiple (cash-on-cash return)

Northern Europe (Netherlands, Belgium, AUM €210M

Target Geographies
Germany, Nordics) & Southwest USA
Offices The Netherlands (Enschede) & USA (Santa Fe, NM)
Target Stage Early stage / Seed investments

Investment Strategy Examples of Companies in Current Fund

From the beginning, Cottonwood provides the resources, direction and
global network to B2B high-tech startups to enable them to enter,
compete and succeed on a global stage. Typical investment is 1 – 2 Million
in a first round (against 30-40% of the shares) and then the team are real
venture builders trying to raise next rounds. Hands-on investments in
patent-based and disruptive B2B high-tech / hardware-related Key
Enabling Technologies.
Team Experience Examples of Exited Companies from Previous Funds
The two general partners have together 44 years experience in technology
startups and 31 years VC experience. Former funds of Dave Blivin average
3.7x return. Alain le Loux is a well-known business angel in technology
startups and coached before the Cottonwood period over 200 European
technology startups. Both have an MBA (cum laude graduated). A third
partner with 7 years VC experience, analysts with technical,
entrepreneurial and finance backgrounds.

52
 Derayah Global Venture Capital Fund
Section 6:
Appendix – Derayah Track Record

Summary Thesis Sectors Geographies Strategy Governance Appendix

Appendix – Derayah Track Record

Gojek & Venture Capital Fund

Derayah Financial has established two venture capital Funds over the last two years.

Derayah Asia Venture Capital Fund Derayah Venture Capital Fund

Fund Size USD39,000,000 Fund Size SAR115,000,000

Start Date Oct, 2019 Start Date Mar, 2019

Target Sectors Tech (SuperApp) Target Sectors E-commerce, AI, IoT, Apps, Tech, healthcare

Geography Indonesia Geography MENA

Number of Investments 1 Number of Investments 8

Portfolio Portfolio

Gojek (the Indonesian on-demand multi-service

platform and digital payment technology group) and
Tokopedia (an Indonesian technology company
specializing in e-commerce) were combined to form
GoTo.
GoTo combines e-commerce, on-demand, and financial services, creating
the first platform to host these three essential use cases in one ecosystem.

They have a large selection of goods and services with over 11 million
merchant partners and Indonesia’s leading payments and financial
services offering. With a total GTV of over $22 billion in FY2020, GoTo is in
a strong position to capture a majority of consumer expenditures within
Southeast Asia’s internet market while unlocking new growth
opportunities for millions of entrepreneurs across the region.

54
Disclaimer
“This document is non-distributable and does not represent an offer to buy, sell or invest in any type of securities.
Derayah Financial or its director, staff or affiliates makes no warranty, representation or undertaking whether
expressed or implied, nor does it assume any legal liability, whether direct or indirect, or responsibility for the
accuracy, completeness or usefulness of any information that is contained in this material. It is not the intention of
this material to be used or deemed as advice, option or for any action that may take place in the future. Unless
otherwise stated, all information contained in this material shall not be reproduced, in whole or in part, without the
specific written permission of Derayah Financial. The content of this document is for information purposes only.
Derayah Financial does not hold itself out as providing legal, financial or other advice via this document. To ensure
a proper understanding of the Fund and its suitability for you according to your risk appetite, we recommend that
you seek specialist investment advice. Investments in Derayah Products are governed by their Terms and
Conditions. While reading the product’s Terms and Conditions, please refer to the principal risks of investing in the
product. Some products are exposed to risks that may not receive the full amount that is originally invested. The
information provided in this document can be changed at anytime without prior notice. Past performance is not
indicative of future returns.”

Derayah Financial
Derayah Financial is a joint stock company, registered in Riyadh with Commercial
Register No. 1010266977 dated 04/05/1430H, Derayah was licensed in 23/06/2008 by the
Capital Market Authority “CMA” in Saudi Arabia to conduct securities business (dealing as
principle and agent, managing, advising and custody) under license number 08109-27 as
per Capital Market Institutions Regulations. Head Office: Second Floor, Olaya Centre,
Olaya Main Street, P.O Box 286546, Riyadh 11323, Kingdom of Saudi Arabia. Phone
+966112998000, FAX +9662998071, Email: [email protected]

55