q42016HighlightsDraft_V2

AICCFDLOROOMTOWUEHMNDSEInvestment Highlights Q4 2016

DFJ GROWTH10 Years of Hyper GrowthDFJ Growth Celebrates a Decade of Investing in Companies that ScaleDFJ Growth celebrates 10 years of partnering with entrepreneurs whose compa- Two metrics that arenies have achieved market validation and are scaling rapidly. The Fund focuses critically importanton opportunities that transform large markets through unique and disruptive tech- to us are the uniquenologies. “We started DFJ Growth based on a long-term, structured shift we were product and tech-seeing in the public markets, specifically that companies were staying private lon- nology advantagesger in response to public markets looking for more scale, maturity, and predict- of the businessably than in the past,” said DFJ Growth Co-Founder and Partner Randy Glein. and demonstrating rapid growth into“DFJ Growth focuses on the timing of the market as well as the efficacy of busi- large marketness models, markets, growth rates, and then, ultimately, assessing the people opportunities,we are partnering with - these visionary entrepreneurs who are leading the way, either in emergingthinking about the future, trying to change the world,” said Glein. market categories where it is paving“As venture capitalists, we also have to think within the boundaries of how to the way, or disruptingbuild a business and how to grow a business that is healthy and building value, an existing market.while at the same time is pursuing the passions and dreams of the entrepreneurs,wrapping that all up into a package that can be sustainable over long periods of Randy Glein, DFJ Partner, on whattime and addresses real needs in the market.” DFJ Growth looks for when evaluating investmentsDFJ Growth’s portfolio includes:Detailed financial information for the highlighted investments is included in the DFJ quarterly reports

DFJ GROWTH IIIDFJ Growth – Three of a KindWe are pleased to announce the closing of ourthird DFJ Growth fund with total capital com-mitments of $535 million. This fund, which isoversubscribed and somewhat larger than ourprevious Growth fund, represents a natural pro-gression for our team and investment strategy.We are grateful to our longtime investors whocontinue to support us and we welcome sever-al new investors who have joined our missionof partnering with exceptional entrepreneurswho are transforming markets and the worldthrough technological innovation.Over a Decade of VisioneeringWe formed DFJ Growth more than a decadeago to help entrepreneurs scale their companies. DFJ Growth Partners (left to right - Sam Fort, Barry Schuler, John Fisher, Randy Glein, Mark Bailey) closed aWe formed this strategy in response to changes $535 million fund to continue investing in innovative entrepreneurs who are transforming markets and the world.we saw emerging in the public stock markets,which had begun seeking more scale and predictability in companies than in the past. This shift meant companieswould stay private longer and need more capital and scaling expertise as they move through the hypergrowth phaseof their development on the path to IPO. So, we pulled together our Growth team, with collective experience as entre-preneurs, operators, and investors who have helped scale numerous tech companies during their careers, and who giveour portfolio companies everything we have in our arsenal to help them achieve their greatest aspirations. Our thesishas since proven out as the public markets now typically require companies in the tech sector to reach $100 to $200 mil-lion or more in revenue scale prior to IPO. This situation has created a vibrant market for financing the growth of thesecompanies while they remain private, with DFJ Growth being one of the earliest entrants and leading participants overthe past decade. With our third fund, we continue our strategy of helping the next generation of emerging industryleaders navigate the inevitable challenges that come with hypergrowth and rapidly evolving markets by leveraging thecollective backgrounds and network of relationships of our team.Backing Game-Changing Companies and Big ThinkersDuring the past decade, we have seen remarkable value creation in the private markets as technology companies havegrown and scaled. We have been fortunate to invest and partner with some of the most iconic companies built duringthis period, including AdMob, Box, SolarCity, SpaceX, Tesla Motors, Twitter, Tumblr, and Yammer. Furthermore, weare excited about our next wave of rapidly growing game changers, which include Anaplan, Cylance, Formlabs, Giphy,Katerra, Mapbox, Ring, Unity, and others. We are passionate about participating in the innovation economy, and ournew DFJ Growth fund will enable us to continue our constant and vigorous pursuit to find the next big thing. Techno-logical innovation holds the promise of opening new windows to the future. We will continue to climb through thesewindows, using our new fund to play a role in envisioning and helping to create a brighter future. We believe passion-ately that technology companies will continue to improve society by creating jobs, contributing to productivity increas-es in the world economy, and increasing the accessibility and efficient use of resources. We look forward to partneringwith the extraordinary entrepreneurs and their teams who are bringing the future forward.The Partners of DFJ GrowthDetailed financial information for the highlighted investments is included in the DFJ quarterly reports

EXITSSimpliVity Convergeswith Hewlett Packard SimpliVity, a hyperconvergence in- “HPE’s broad sales reach, extensive frastructure developer, announced it partner channel, complementary will be acquired by Hewlett Packard technology, and commitment to innovation Enterprise (HPE) for $650 million. will accelerate SimpliVity’s journey and“This transaction expands HPE’s significantly strengthen our ability to software-defined capability and fits deliver the best-­in-­class hybrid IT solutions squarely within our strategy to make Hybrid IT simple for customers,” our customers are looking for.”SimpliVity CEO Doron Kempel on why joining HPE was the company’s next logical step said Meg Whitman, HPE CEO. Founder and CEO Doron Kempel started SimpliVity in 2009 to im- prove data storage and virtualization.“SimpliVity’s data architecture glob- ally deduplicates, compresses, and optimizes data at inception across all storage tiers. This creates an unparal- leled and game-changing level of ef- ficiency since it not only reduces the footprint of the data stored but also accelerates application performance,” said Kempel. Fund: Growth | DFJ Rep: Mark Bailey www.simplivity.com Fund: X | DFJ Rep: Josh Stein Spiral Genetics Acquired by Genomic Data Company www.spiralgenetics.com DNA sequencing company Spiral Genetics has been acquired by Omicia, a provider of clinical genomic data analysis and reporting software. Spiral’s graph-based technol- ogy enables accurate detection of structural variants and provides population-scale data mining capabilities for clinical laboratories, life science companies, and country sequencing programs. Spiral CEO Adina Mangubat said the acquisition was built around vertically integrat- ing Spiral and Omicia’s complementary services. “Together, we offer a complete end- to-end solution,” Mangubat said. Spiral offers analysis of genomic data that comes directly from a DNA sequencer. Its software processes that raw information and identifies genetic variations in the DNA. Omicia’s software uses that genetic variation data to create reports for doctors and researchers, highlighting important variations in the sample. “We now can handle basically everything as soon as it comes off a sequencer all the way down to doctors’ reports,” said Mangubat. “That is a powerful thing because you get to control the quality of the data analysis from the very beginning to the very end.” Detailed financial information for the highlighted investments is included in the DFJ quarterly reports

NEW INVESTMENTDisconntecting DevicesMythic, an artificial intellicence (AI)platform provider, announced a $9 mil-lion Series A, led by DFJ, with partici-pation from Lux Capital, Data Collec-tive, and AME Cloud Ventures. DFJ’sSteve Jurvetson has joined the board.Mythic is launching a chip and soft-ware that will put voice control, com-puter vision, and other kinds of AI CEO Mike Henry said the new funding will help grow the Mythic team from 10 employees to 20 within a year, hiring moreinto devices locally, no cloud required. “top-flight engineers from companies like Oracle and IT — engineers with decades of production experience.”“The way local AI is being engineered I like to invest in companies that are unlike today is equivalent to trying to make anything I have seen before. Mythic is taking a a propeller plane fly faster by strip- radically novel approach to building low-power, ping down cargo, or adding 18 pro- low-cost neural nets that can make any product pellers — working with technology more intelligent. Mythic is pushing the perfor- that stalled just doesn’t make sense. mance boundaries of local AI so any device can Just as jet design put flight on a new become a true universal assistant. With this trajectory, Mythic is doing the same technology, you could put machine intelligence for local AI,” said Jurvetson. into a toaster, or a Roomba, a security camera, or all kinds of devices where it wouldn’t make Mythic’s hardware and software plat- sense before because you’d need a persistent form turns devices into “intelligent internet connection to make it useful. assistants,” unconnected to the cloud, making the devices on which it will DFJ’s Steve Jurvetson on Mythic’s AI platform run “inherently more secure,” said Mythic CEO Mike Henry. Fund: XII | DFJ Rep: Steve Jurvetson www.mythic-ai.com MOVING LOCAL AI INTO NEW TERRITORY: Mythic accelerates local AI past the borders of conventional technology, says CEO Mike Henry.“Our platform delivers massive parallel computing – and no limit to where local AI can be deployed. If it can be imagined, Mythic takes AI there.” Henry sees a future where “a device like Alexa becomes truly conversational, an assistant that learns by speaking with users, acts ac- cordingly, and keeps personal details private. A fitness band that acts as a life coach, responding to spoken questions about the calories in a meal. An autonomous drone that monitors a forest fire, alerting crews to new dangers and breakouts, all while processing 4K video on board.” Detailed financial information for the highlighted investments is included in the DFJ quarterly reports

NEW INVESTMENT Ringing in a New Era of $109M Series D to Improve Home Security Home Security Connected doorbell company Ring recently announced a By Randy Glein, Partner $109 million Series D, led by DFJ Growth with participa- tion from Goldman Sachs Investment Partners, Qualcomm At DFJ, we cherish opportunities to partner Ventures, Richard Branson, and True Ventures. with visionary entrepreneurs who are mak- ing the world better through technological Ring’s flagship product is a video doorbell that connects to innovation. We also welcome opportunities a users’ cellphone, letting them see and speak with whom- to invest in new technologies that transform ever is at their door, whether or not they are at home. markets where legacy incumbents are strug- gling to adapt and embrace change. And DFJ Growth Partner Randy Glein said Ring’s doorbell and sometimes we get the privilege to do both floodlight video cameras have become “the digital neigh-these things at once, which is what we are doing through borhood watch of the future.”our investment in Ring and our partnership with Jamie Simi-noff, the extraordinary founder, leader, and chief inventor “We are thrilled to partner with Ring Founder and CEOof Ring. Jamie Siminoff and the team at Ring to help make homes and neighborhoods safer,” said Glein, who has joinedRing is on a mission to make our homes and neighbor- Ring’s board. “Ring has quickly emerged as the markethoods safer. The company has developed a suite of con- leader with its new generation of connected home prod-nected products that incorporate advanced video process- ucts that incorporate elegant design and advanced videoing technologies to create “rings” of security around our processing technologies to enable simple and affordablelives — at our front doors, around our homes, and across our home monitoring. You don’t get their level of retail pres-communities. From the moment we met Jamie, we knew ence without having dramatic sell-through. The companywe wanted to team up and be part of his journey with Ring. is experiencing explosive growth as communities embrace Ring as their digital neighborhood watch. We are proud toWe recently led a $109 million financing for Ring that in- be part of this mission.”cludes new investors Goldman Sachs Investment Partnersand Qualcomm Ventures, with participation from existing Santa Monica-based Ring started in 2011 with a videoinvestors Sir Richard Branson, American Family Insurance, doorbell designed to strengthen home security. Now,Shea Ventures, and True Ventures, among others. Ring’s video products focus on capturing motions, send- ing alerts to users, allowing users to monitor events at theOver the past three years, Ring has experienced explosive front door, and conducting two-way audio talk.growth and has emerged as the new generation leaderin the home security market. Its innovative products, like Last year, Ring partnered with the Los Angeles Police De-the Ring Video Doorbell and Stick-up Cam, have been em- partment to install Ring Video Doorbells on 10% of homesbraced by consumers eager to leverage technological inno- in the Los Angeles neighborhood of Wilshire Park. In justvation to bring improved safety and security to their homes. six months, home burglaries were reduced by 55% in theThe Ring mobile app and cloud-based video archiving neighborhood and no burglaries occurred at any of theservice allow consumers to answer their door remotely, homes with Ring Video Doorbells installed.monitor the perimeter of their home from anywhere, andshare videos of suspicious visitors with neighbors and local Fund: Growth | DFJ Representative: Randy Gleinauthorities to create a virtual neighborhood watch service. www.ring.comThe constant drumbeat of innovation at the company givesus confidence that Ring will continue to grow and expandits market share as consumers realize the benefits ofsafer homes and neighborhoods equipped with Ring’sconnected products and services.We are grateful for the chance to team up with Jamieand his team at Ring. Their vision for making our livessafer is quickly becoming a reality — a mission that “rings”so true to us and we are proud to support.We welcome Ring to the DFJ family with open arms!Detailed financial information for the highlighted investments is included in the DFJ quarterly reports

NEW INVESTMENT Turning GIFS into Mainstream Media Giphy Raises a $72 Million Series D RoundOn October 31, 2016, Giphy announced a $72 millionfinancing round, led by DFJ Growth, with participation by Barry Schuler, Partnerfrom Institutional Venture Partners, China Media Capitaland existing investors. DFJ’s Barry Schuler now serves on Back in 1987, before the Internet was aGiphy’s board. gleam in Al Gore’s eye, a software engi- neer at the online service Compuserve Giphy Co-Founder and invented the GIF (Graphics Interchange CEO Alex Chung said the Format) as a way of delivering compressed company plans on using images over the bandwidth-challenged di- the round to launch a me- al-up services of that era. When asked how dia studio and expand its to pronounce it, he replied “Jif,” as in the editorial team. peanut butter. Giphy is a GIF repository That was practically prehistoric times in WWW years. Today the Internet sizzles with GIFs, creative video morsels that and search engine where add expression to everything from content to messages. The epicenter of the GIF explosion is Giphy, the company that users can search for small has put the hard G into GIFs (now pronounced GIF not JIF). That’s right, the original peanut buttery file format has evolved funny videos and reaction into short-form looping videos that Giphy has helped make ubiquitous. DFJ Growth is proud to have led a $72 million memes. These GIFs can be growth round and welcome CEO Alex Chung and the entire Giphy team to the DFJ family. shared at social media or Giphy began by building a GIF search engine to make it easy to messaging apps like Face- discover GIFs from across the Web. For the first time you could easily find a perfect tidbit to add zing to your instant message. book, Twitter, Messenger, Then it went on to build a full stack of creation tools, making it easy to author and customize GIFs. Giphy then developed and WhatsApp. content partnerships throughout the media industry in or- der to “Giphy” everything from the latest episode of GameGiphy COO Adam Leibsohn (left) and CEO Alex Chung (right) Giphy has also developed of Thrones to The Simpsons. The company also launched are turning GIF images into a full-fledged media company. Giphy Studios in LA where it cranks out the loops. If you’ve ever been on Twitter while watching a live event like the Acad- a suite of GIF-based prod- emy Awards or Saturday Night Live, you’ll see the sassy GIF memes flying fast and furious as Giphy Studios produces themucts, including software to turn a video into a GIF (and tag in realtime.it to make it easily searchable), and enterprise tools which Today’s Internet is chockfull of video content of all types, but attention-challenged consumers just don’t have the personalmedia companies can use to turn their content into GIFs. bandwidth for many long form videos. This is where the GIF shines with its ability to provide maximum expression inAccording to Chung, Giphy serves over one billion GIFs a microburst. And if you were momentarily distracted by aevery day that are seen by 100 million people. Giphy has Snapchat alert — no worries — that GIF loop will just keep goingalso partnered with “everyone from the Grammy Awards and going. No wonder people want to add GIF expressionsand Major League Baseball to CNN and Paramount Stu- to all of their content, and Giphy has made it really easy bydios,” said Chung, and instantly generates GIFs of key mo- working closely with the major message apps — from Slack toments that are perfect for sharing. Facebook Messenger to Apple’s iMessage. This places access to Giphy directly into the message box, putting the latest clever“We believe GIFs are emerging as a format that consumers Simpson’s riff right at your fingertips. love and will be really important to advertisers as well,” said DFJ’s Barry Schuler. Giphy’s audience is exploding, now clocking in over 100 mil- lion daily active users, serving up more than one billion GIFs forFund: Growth | DFJ Reps: Barry Schuler, Randy Glein a total of two million hours viewed every day. The Giphy team www.giphy.com believes they are well on their way to creating a major new media company (think GiphyTV). We at DFJ agree and look forward to being a part of the journey.Detailed financial information for the highlighted investments is included in the DFJ quarterly reports

NEW INVESTMENTBetterUp Platform Raises $12.9 Million to Bring Executive Coaching to Everyone On November 16, 2016, BetterUp announced a $12.9 mil- ly people, so we are investing in people, and that is lion Series A, led by DFJ. DFJ’s Emily Melton has joined true if you are a startup, but also if you are a Facebook the board. or a Google or a Netflix. Companies spend enormous resources attracting top talent, the next step is to give“BetterUp is a performance coaching platform for emerg- emerging managers the tools needed to achieve their ing leaders,” said Melton. “It’s a technology platform that full potential. BetterUp helps employees thrive as sells into some of the largest enterprises and smaller en- individuals and grow as leaders, providing compa- terprises to the help their emerging leaders and managers nies with a more engaged, confident, and productive learn to be better at managing.” workforce. ”“The primary reason I made the investment is the num- “With BetterUp, companies can bring coaching outside ber one reason we always make investments, because of of the C-suite in a way that’s affordable, scalable, and the people,” explained Melton. “I met with the team and data rich, so that they can invest in bottoms-up be- walked away enthusiastic about how the team is really havior change across their organization,” said Alexi thinking about solving a very complicated problem. I say Robichaux, BetterUp’s co-founder and CEO. “ we invest in companies, but companies are fundamental-Fund: XII “What attracted us to BetterUp is theDFJ Representative: Emily Melton passion of its founders, paired with an enormous market potential to bring the www.betterup.com power of coaching and scalability of ”mobile software to today’s leading companies. Emily Melton, DFJ PartnerDetailed financial information for the highlighted investments is included in the DFJ quarterly reports

NEW INVESTMENTTaking Off with LaunchDarkly CEO SPOTLIGHT: EDITH HARBAUGH, LAUNCHDARKLY On December 22, 2016, LaunchDarkly Edith Harbaugh founded LaunchDarkly in 2014 with a vision to revolutionize con- announced a $8.7 million Series A, led tinuous delivery by allowing product managers and developers to take full control by DFJ, with Partner Josh Stein taking of their deployments. “We help customers launch, measure, and control function- a board seat. ality to their own users, significantly shortening their feedback loops and allowing them to get features to market quicker,” said Harbaugh. LaunchDarkly provides a feature flag management platform for software Harbaugh started LaunchDarkly after working in several startup companies de- development teams to separate fea- veloping products for consumers. “I have a BS in engineering from Harvey Mudd ture roll-out from code deployment, College and an economics degree from Pomona. My first job was in engineering and control of feature releases with at an enterprise startup, and I have a couple of patents on portal deployment as percentage roll-outs. In addition, a result. I decided consumers have more fun so I went to work at a consumer LaunchDarkly offers a suite of feature startup. It quickly became clear that the only thing a customer cares about is if flag management tools. your product solves a problem. If it’s new and cool and desirable that’s kind of gravy, but they don’t care about that. They care whether it saves time, makes their“Just two years into its journey, life easier, or gets them a promotion.” LaunchDarkly has emerged as a core part of the continuous integration and Harbaugh can often be seen biking around San Francisco, which she says helps delivery stack, and one of the most in- her develop ideas. “I also run ultra marathons – I did a hundred-mile race in novative solutions for teams looking November 2016 – and I do a lot of my best thinking when I’m outside running to develop and deploy software faster. because I don’t have as many distractions: email, phone calls, etc. I find running The LaunchDarkly team is just getting and biking outside clears my mind and allows me to make connections that I started, yet they’re already serving wouldn’t otherwise. billions of flags per day via Launch- Darkly’s platform for some very large “ With Josh Stein of DFJ leading customers,” said Stein. “As a former the investment and joining our product manager, I’ve lived the pain board, I am thrilled about the next of the inefficiencies between how mar- keting and engineering interact and chapter for LaunchDarkly.”Edith Harbaugh, Co-Founder and CEO of LaunchDarkly LaunchDarkly is the most helpful, el- egant solution I’ve seen by a long shot to solve that problem.” Co-Founder and CEO Edith Har- baugh says the real value of Launch- Darkly is “doing things at scale. We serve four billion features a day. No other solution can currently handle that load. That’s the real business val- ue no other company can bring.” Fund: XII | DFJ Representative: Josh Stein www.launchdarkly.comDetailed financial information for the highlighted investments is included in the DFJ quarterly reports

NEWS MAKERS WORDS TO THE WISE DFJ Senior Associates Recognized by Forbes DFJ’s Josh Stein has worked with DFJ Senior Associates Jocelyn Kinsey and Mo Islam have been named hundreds of first times founders to Forbes magazine’s 30 under 30 list of venture capitalists who are and recently shared his top five “investing in the next great tech companies.” Forbes recognized Kinsey and tips for entrepreneurs during an Islam as part of “the most definitive gathering of today’s leading young interview with Product Hunt. change-makers and innovators in the US.” Surround yourself with advisors and men- Eight DFJ-backed companies were listed on Deloitte’s “Technology Fast 500,” which highlights the tors, and then use them liberally for advice. fastest growing companies in the US and Canada that are releasing new, emerging technologies.Few problems or challenges are“new” and talking to someone who has seen what did and didn’t work before is in- valuable. Have a co-founder that you trust complete- ly, be equal partners in economics but also be clear in decision making (two in a box for CEO doesn’t work). Having someone in the struggle, locking arms to- gether with you day to day is critical. Find an experienced and committed inves- tor to partner with. I think one negative con- sequence of less concentrated seed rounds has been that investors aren’t as close to the company. Some of my best investments were Series A orSeeds where DFJ did the whole round and was the only outside board member for the first year (Box, SugarCRM). Pick a vision which inspires people beyond making money. Startups are hard and it helps if you, your employees, and their family/friends care about what you’re doingon a personal level. Elon Musk is the master of this - Tesla is aboutsaving the world from fossil fu- els, SpaceX is about going toMars. That mission inspires people to put in their best, day after day, and also inspires investors. DFJ’s motto is Think Big. Listen to everyone, but after you’ve heard lots of input, trust your gut and don’t be afraid to think different. It’s the only way to upend and disrupt an industry. And it’swhy younger founders often do better - they don’t know all the reasons why something can’t be done.Detailed financial information for the highlighted investments is included in the DFJ quarterly reports

NEWS MAKERS Box Earnings Reach “Inflection Point” “We don’t need to raise any more capital in the market — Box (NASDAQ: BOX) recently announced earnings, beat- we are self-sufficient. ing analyst expectations and reporting revenue that was ”We got here through growth above estimates. of the business.“Box hit free cash flow positive this past Q4 and we guid- Aaron Levie, Box Co-Founder and CEO on the company’s most recent ed to $500 million+ in revenue this year. Go cloud!” said earnings report Box Co-Founder and CEO Aaron Levie. “We are driving towards a $1 billion long-term revenue target, and this year we plan to invest for scale while continuing to drive operating leverage.”An all new Box Notes, a note-taking and productivity plat- form, was unveiled in the quarter. In addition, the compa- ny also announced new integrations with Microsoft Office, and has been partnering with major telecommunications providers like AT&T. Fund: VIII, IX, Growth | DFJ Reps: Josh Stein, Randy Glein www.box.com “Disneyland on the Streets” On November 7, 2016, automous vechicle company Zoox announced a new round of financing. “At Zoox what we’re creating...is not a self-driving car any more than the automobile is a horseless carriage. We’re not building a robo-taxi service, we’re actual- ly creating an advanced mobility service,” said Zoox CEO Tim Kentley-Klay. “You can really think of it as Disneyland on the streets of perhaps San Francisco, and that means a vehicle which is smart enough to understand its environment but it’s also importantly smart enough to understand you, where you need to be, what you want to do in the vehicle, and how you want to move around the city.” Zoox aims to deploy its fully autonomous cars by 2020. Fund: XI | DFJ Reps: Steve Jurvetson, Heidi Roizen www.zoox.comDetailed financial information for the highlighted investments is included in the DFJ quarterly reports

NEWS MAKERSHISTORIC LAUNCH: SpaceX’s “previously flown” “This is goingFalcon 9 rocket successfully took off from Launch to be a hugePad 39A at the Kennedy Space Center in Florida revolution inon March 30, 2017. spaceflight. ”- Elon Musk, SpaceX founder and CEO, on the company’s successful relaunch and recoveryThe Falcon 9’s first-stage orbital booster was of an orbital class rocket boosteroriginally used on a rocket that SpaceX launchedand recovered in April 2016. This relaunch marks On March 30, 2017, SpaceX became thethe first time an orbital rocket has been sent to first, and only, space company to reusespace for a second time. a rocket, launching an orbital rocket that has already flown once before.The most expensive part of the mission, accordingto SpaceX Founder and CEO Elon Musk, is the Fal- SpaceX placed an SES-10 commu-con 9 first stage — the 14-story core of the rocket nications satellite into orbit using athat SpaceX tries to land after each launch. This “flight-proven” Falcon 9 rocket boosterstage, which contains the main engine and most that first went to space last year. Thisof the fuel needed for launch, represents up to booster could conceivably launch70% of the cost of the mission. Musk notes that again, since it returned again in onepropellant for the rocket is only about 0.3% of piece, to SpaceX’s floating platform inthe cost, which means saving these vehicles and the Atlantic Ocean.flying them again could lead to a cost decrease bya factor of 100. “It did this mission perfectly,” said Elon Musk, founder and CEO ofThe rocket used for relaunch was the second SpaceX. “It dropped off the secondFalcon 9 that SpaceX ever recovered. It was the stage, came back, and landed on thevehicle used for CRS-8, the company’s eighth drone ship. Right in the bullseye.”cargo resupply mission to the International SpaceStation. On April 8, 2016, the rocket was sent Reusing a rocket that has already beento the station for NASA. After launch, the rocket to space is a potential game changerthen landed on SpaceX’s drone ship named “Of for the future of space travel. RocketsCourse I Still Love You.” SpaceX decided to launch are typically too damaged after reach-this particular Falcon 9 again since the company ing orbit to be used again, and build-wanted to save the first rocket it ever landed. That ing a new rocket can cost hundreds ofrocket is now on display at SpaceX’s headquarters millions of dollars.in Hawthorne, CA. Musk also foresees a time when allPhoto by Steve Jurvetson the major components of a Falcon 9 rocket can be flown again, including the nose cone and the rocket’s upper stage. “We’ve proven it’s possible to do that,” Musk said. Fund: IX, Growth DFJ Reps: Steve Jurvetson, Randy Glein www.spacex.comDetailed financial information for the highlighted investments is included in the DFJ quarterly reports

NEWS MAKERS CubeSats Deliver Bird’s Eye View 88 Planet February 2017 was big for Planet. The CubeSat compa- Flock-3p ny launched 88 more “Dove” satellites into orbit, and it CubeSats were released acquired Google’s satellite imaging division, Terra Bella. on February 14, 2017. The small 10.3-pound CubeSats, nicknamed“Planet successfully launched 88 Dove satellites to orbit— “Doves,” carry a sharp-eyed camera, extendable the largest satellite constellation ever to reach orbit. This solar panels, and high-speed data transmitters to beam is not just a launch (or a world record, for that matter!); for images to antennas around the world. Each “flock” of our team this is a major milestone. With these satellites in Planet satellites debuts upgraded technology. orbit, Planet will reach its Mission 1: the ability to image all of Earth’s landmass every day,” said Planet Co-Found- Five years in the making, er and CEO Will Marshall. and with a record 149 satellites in orbit now,“In 2011 we set ourselves the audacious mission of imaging Planet can do something the entire Earth land area every day. We were convinced unprecedented…capture that armed with such data, humanity would be able to a 50-trillion-pixel image have a significant positive impact on many of the world’s of the entire Earth, every greatest challenges. We calculated that it would take be- day. With this data set, tween 100-150 satellites to achieve this, and we started developers can do change building them.” With 149 satellites now in orbit, Planet detection, automated has the largest private satellite constellation in history. analysis, and similarity search. It’s exciting to think Planet also announced it acquired the Terra Bella business. about what’s to come.“It’s a big deal,” said Marshall. “What this enables us to do is tap into new markets, like certain aspects of the finan- DFJ’s Steve Jurvetson on Planet’s CubeSat success cial markets, insurance, and disaster relief.” Fund: IX | DFJ Representative: Steve Jurvetson www.planet.comBang, Zoom…Straight to the Moon! “ ”I think this will be a very exciting mission.On February 27, 2017, Elon Musk announced the first “spacetourist” trip will take place next year. Musk said he is planning SpaceX Founder and CEO Elon Musk on flyinga private space mission, using a SpaceX rocket to transport two private citizens to the Moonpaying passengers to the moon. According to Musk, the flightwould be on an autonomous spacecraft that needs no speciallytrained astronauts onboard, although the two paying civilianswould undergo “extensive training” before going on the mission.Musk said the weeklong mission has a 300,000-mile flight paththat takes “a long loop around the moon,” and getting close tothe lunar surface, but not landing, before returning to Earth.Detailed financial information for the highlighted investments is included in the DFJ quarterly reports

NEWS MAKERS We have to empower kids very early on Mother of Invention“ to feel that they are change-makers. Electronic component company littleBits ”- littleBits founder and CEO Ayah Bdeir in the December 2016 issue of Popular Mechanics was founded by Ayah Bdeir to “put the pow- er of electronics in the hands of everyone, so that anyone can build, prototype, and invent.” littleBit’s modular electronics kits were re- cently named “Best Toy” by Good House- keeping and Parents magazines, and got the Parents’ Choice Gold Award. But, ac- cording to Bdeir, littleBits are more than toys. They are teaching tools essential for the next generation of entrepreneurs. “When I was growing up, there wasn’t data mining or user-experience design or front- end engineering—and now they’re some of the most coveted careers in the world,” said Bdeir. “Today, we can’t just prepare students for certain types of careers—we have to enable them to adapt to whatever new careers emerge.” littleBits and Disney are currently producing an online video series about invention. The series will celebrate inventors of all ages, inspiring kids to create Disney-themed inventions using littleBits as their founda- tion, and the company will soon announce a new project in collaboration with one of Disney’s most popular franchises (hint: think Star Wars). Fund: Growth | DFJ Rep: Barry Schuler www.littlebits.comFund: Growth Foursquare Unleashes Pilgrim, its “Amazing Superpower”DFJ Representative: Barry Schuler Foursquare recently released Pilgrim SDK. Foursquare Founder Dennis Crow- www.foursquare.com ley describes Pilgrim as “an amazing superpower that knows exactly where you are, where you’ve been, and predicts where you are going.” Pilgrim runs in the background of an app and records every time a phone with the app installed stops moving. Then, it tries to figure out where the phone is, if it’s ever been there before, and suggests things the phone user might like to do in the area based on past experiences. “This is a really big deal,” said DFJ’s Barry Schuler. “This is the culmination of Dennis’ vision across a decade and two consumer applications (Foursquare and Swarm).” Foursquare believes this could be the “Holy Grail” advertisers have been looking for to communicate directly to consumers, in realtime, over their mobile or connected device.Detailed financial information for the highlighted investments is included in the DFJ quarterly reports

NEWS MAKERSMobile Game Platform Plays with AI and Machine Learning Mobile game engine platform Unity including Pokemon GO, Super Ma- Nintendo used Unity’s game Technologies recently hired Danny rio Run, and Angry Birds. engine to create Super Mario Run, Lange as vice president of artificial its top-rated mobile game. intelligence (AI) and machine learn- According to Riccitiello, Unity-based ing. Unity is looking at opportunities games were installed more than 16 to incorporate AI into virtual reality billion times in 2016, up 31% from (VR) and augmented reality (AR). 2015, and 59% of virtual reality de- velopers are using Unity.“Danny’s deep, technical background and expertise in machine learning “We’re picking up four or five market align perfectly with the needs of our share points a year,” Riccitiello said. developers in the rapidly changing “Our growth last year was three world of games and AR/VR,” said times the business of the next-largest John Riccitiello, CEO of Unity. game engine in the West.”A third of the top mobile games were Fund: Growth | DFJ Rep: Barry Schulercreated using the Unity game engine, www.unity3d.com“We’re creating a world where anyone can be their own movie studio.” - Mindshow CEO Gil BaronMindshow, a technology and content development COO. “But people are coming out of Mindshow withstudio, recently debuted it’s VR platform. something activated in their imaginations. AndMindshow gives VR users the that’s really what we wanted to see.”ability to dive into the VR worldand create a narrative from the With Mindshow, Baron and Ross areperspective of the characters pioneering the VR space. “It’s likethemselves. we’re designing the race car, driv-“Think of it this way,” said Mind- ing the race car, and fixing theshow Co-Founder and CEO Gil Baron, race car all at the same time,”“we’re making animated movies that you can walk said Baron.around inside of. We’re creating a world whereanyone can be their own movie studio.” The company sees applications for Mindshow in the entertainment, medical, science, and educa-“Storytelling in VR is incredibly difficult,” added tion industries.Jonnie Ross, Mindshow’s other co-founder and Fund: XI | DFJ Rep: Emily Melton www.mindshow.comDetailed financial information for the highlighted investments is included in the DFJ quarterly reports

NEWS MAKERS Stayin’ AliveIf the Vietnam War hadn’t happened,J. Craig Venter could have been MarkSpitz; instead, he’s working on waysto “cure” aging and postpone death.Venter was a competitive swimmeruntil he was drafted to serve in thewar. He joined the Navy and workedin the intensive care ward of a fieldhospital. Surrounded by death, hewas inspired to go into biomedicalresearch in the hopes of figuring outhow life works.He mapped the human genome 17years ago and, in 2013, founded Hu-man Longevity, Inc. (HLI). HLI usesdata from human genomics and ma-chine learning technology in an attemptto extend life by decades, or longer.Analyzing more than one billion datapoints, HLI has found DNA stringsthat “are essential for life or health.”“We are making discoveries every day that surprise us because nobody has“had these data sets before,” said Venter. Fund: XI | DFJ Rep: Steve Jurvetson ”www.humanlongevity.com Had things been different, I would have been competing for the Olympics. But Lyndon Johnson changed that for me with the draft. - Human Longevity Founder J. Craig Venter on his unexpected entry into genomics researchFund: XI Chronic Disease Control: There’s an App for ThatDFJ Representative: Emily Melton Livongo, a diabetes management provider that combines the latest technology with www.livongo.com medial coaching, recently launched an insulin delivery system and app for people with type 2 diabetes. The app is designed for people treated with basal insulin and is classified as a prescription-only medical device. But, said Glen Tullman, CEO of Livongo, “no one cares about the technology. They simply want to live their life, which is why they use Livongo. With this app we can give members with type 2 diabetes additional insight and tips for medication optimization – making managing diabetes easier.” More than 29 million people are estimated to have diabetes, or around 9% of the US population. The verified benefits of using Livongo’s program include reduced diabetes-related doctor visits and decreased diabetes-related medical costs.Detailed financial information for the highlighted investments is included in the DFJ quarterly reports

SELECT FOLLOW -ONS Rethinking Robots These robots will change more than manufacturing.On December 23, 2016, Rethink Ro- They will change the very botics announced $18 million in new nature of work. That’s funding as part of its Series E financ- the kind of change that ing round. DFJ and existing investors excites me and fuels my participated in the financing. optimism.“We’re seeing increasing global de- DFJ’s Steve Jurvetson on Rethink Robotics mand for our smart, collaborative robots as manufacturers build more this funding will help our team not onlyconnected factories in response to continue to develop our products to thechanging consumer needs,” said Scott fullest but also make them available forEckert, president and CEO at Rethink manufacturers everywhere.”Robotics. “Our investors believe in the enormous market potential for Rethink Robotics “continually sets the simple-to-deploy, flexible robots, and standard for what smart, collaborative ro- bots can and should do in manufacturing environments,” said Eckert. Sawyer (pho- to right), developed for global distribution in 2015, expands the market pioneered by Baxter, Rethink’s flagship robot. Fund: X | DFJ Rep: Steve Jurvetson www.rethinkrobotics.com Innovator of the Year Finalist The “Amazon” of Home Services LendKey, a lending-as-a -service provider for banks and In December 2016, ezhome closed a financing round, credit unions, has been selected as a finalist in the LendIt with participation from DFJ. Industry Awards, which celebrates outstanding achieve- ment in lending and fintech, for Innovator of the Year ezhome is a tech-enabled home services company that and Top Service Provider. is currently targeting the millions of consumers that use lawn care services. The company aims to improve home“We are honored to be recognized by LendIt as both an service experiences by using data science and software Innovator of the Year and Top Service Provider finalist,” technology to enable service personnel to be more effec- said Vince Passione, founder and CEO of LendKey. “We tive and efficient. built LendKey to help banks and credit unions operate their online loan businesses, and we continue to inno- “We are building the ‘Amazon of Home Services,’” said vate how traditional lenders can become online lenders.“ Spiros Xanthos, ezhome co-founder and CEO. “With our personalized service, ezhome customers simply choose Since 2009, LendKey has underwritten more than $1 bil- the services they need and they’re delivered by our staff lion in lender capital to borrowers. of trusted, full-time service professionals.” Fund: IX | DFJ Representative: Josh Stein Fund: XI | DFJ Representative: Andreas Stavropoulos www.lendkey.com www.ezhome.comDetailed financial information for the highlighted investments is included in the DFJ quarterly reports

SELECT FOLLOW -ONS $18 Million Series B for Contained Apps Data Visualization Platform Raises Series B Diamanti, maker of the first hyper-converged infrastruc- ture appliance built for containerized applications, raised On November 7, 2016, Periscope Data an $18 million Series B, with participation from DFJ. announced a $25 million Series B, led by Bessemer Venture Partners, with par- In addition, Jeff Chou, Diamanti co-founder and CEO, an- ticipation from DFJ (Series A leader). nounced general availability of the Diamanti D10, which enables enterprise IT organizations across media, finan- Periscope Data produces software that cial services, and Web infrastructure industries to deploy allows data scientists to quickly build Docker containers (open-source software that automates customized, highly detailed visualiza- the deployment of applications inside software contain- tions of their data. Periscope Data takes ers) in seconds. The appliance, which ships pre-inte-Harry Glaser, Periscope Co-Founder and CEO raw data from various sources — the grated with all of the container software, compute, net- most popular are MySQL, PostgreSQL, Amazon Redshift, working, and storage resources necessary to deploy and Salesforce, and Microsoft SQL Server — and very quickly (150 operate containerized applications at production scale, times faster than other data visualization tools) turns that plugs into existing environments and accelerates time- data into graphics to help make better sense of the numbers. to-market, guaranteeing real-time service levels.“Data science has become a core facet of doing business Fund: XI | DFJ Representative: Andreas Stavropoulos in the Digital Age, and our offering exponentially increases www.diamanti.com the speed and impact of data analysis,” said Harry Glaser,co-founder and CEO of Periscope Data. “With Periscope Da- $130M to Speed Up Microbe Engineering ta’s platform, data scientists no longer have to wait hours forcomplex analyses to complete, and they are able to quickly Zymergen recently announced a $130 million Series B, investigate critical business issues and recommend strategic led by SoftBank Group, with participation from DFJ.changes with unmatched speed and performance.” Zymergen farms and genetically engineers microbes us- ing data science, robotics, and machine learning, which,Glaser says his company has seen revenue grow 5x and its the company says, is 10 times better than conventionalcustomer base grow 3x in the past year, with over 85% of methods of making these chemicals.customers using the product every day, a percentage that is “Zymergen approaches biology with an engineering andclimbing over time. mathematical mindset. This enables us to put all the pieces together in a repeatable and trustworthy way,”“But our work isn’t done,” said Glaser. “The coming years said the company’s Co-Founder and CEO Josh Hoffman. promise to be even more exciting, challenging, and inspiring “As a result, we have achieved a level of scale and quality than the last. Reaching and empowering all the data scien- control previously unseen in industrial biology.” tists in the world is a unique challenge, and it will take many The data science and machine learning help Zymergenyears and a deep commitment to achieve. We’ll be using this identify preferential microbe traits that would suit dif- funding to scale our product development and our sales and ferent applications for different customers. marketing efforts. We’re also planning on investing more timeand resources, helping data scientists at larger companies, a Fund: XI | DFJ Representative: Andreas Stavropoulosgroup we’ve gotten to know better in the last year.” www.zymergen.com Fund: XI | DFJ Representative: Josh Stein www.periscopedata.comDetailed financial information for the highlighted investments is included in the DFJ quarterly reports

QUARTER END photo by DFJ’s Steve Jurvetson #MissionCasual SpaceX’s Falcon 9 Flight Crew Adopts Relaxed Dress Code for Mission Control SpaceX proved that collared shirts and ties are not necessary to fly rockets. On February 19, 2017, SpaceX became the only private space company to lift off from historic Launch Pad 39A at the Kennedy Space Center in Florida, which was first used in 1967 for the Apollo flights. DFJ Partner’s Steve Jurvetson, Randy Glein, and Barry Schuler attended SpaceX’s Falcon 9 launch and found the atmosphere in Mission Control decidedly less formal than in the Apollo’s days. #NoTieRequired SpaceX flight crew in Mission Control, 2017 Apollo 11 flight crew in Mission Control, 1969 Detailed financial information for the highlighted investments is included in the DFJ quarterly reports

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