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Investment Management ICOs Fund the Development of New Currencies Dikisten 2. Total Funds Raised by Month (US$ Millions): Angel and Seed Stage 1. Approximate Funds Raised by ICOs by Calendar Year (US$ Milllions) intamet VC versus ICO $4,000 - 900 5 mu Angel & Seed VC Funding (Internet) = ICO Fundraising 839 $3,500 - $3,461 800 | 700 | $3,000 - fo2] Oo [a $2,500 - $2,000 - $1,500 - Total Funds Raised ($Mn) $1,000 - 200 - $500 - Approximate Annual Funds Raised ThroughICOs ($mil) $222 100; 5 $26 $14 $0 - 2014 2015 2016 2017 YTD TMG 8/16 9/16 10/16 11/16 12/16 1/17 2/17 3/17 4/17 S17 6/17 TAIT 8/7 9/17 " New blockchain-related projects are funded via an Initial Coin Offering (ICO). This process raises capital through token sales. " In an ICO, the object offered is either a new digital coin or a yet-undeveloped concept in search of funding. ICO investors purchase an ownership percentage of a future money supply or functionality. " While many ICOs support legitimate use cases, Autonomous Research asserts, “unfortunately, many ICOs are fraudulent. ””! = Rather than raising fiat currency, ICOs primarily raise capital in the form of Bitcoin and Ether, driving additional demand for the cryptocurrencies. (1) #Token Mania, Autonomous Research, July 2017. Source: Investment Strategy Group, Bloomberg, Goldman Sachs Global Investment Research, Cryptocompare.com. 9 HOUSE_OVERSIGHT_025672