2. CONFIDENTIALCONFIDENTIAL
• Headquartered in the Energy Capital of the world (Houston, TX)
• Focused on revenue generating companies that emerge out of
exclusively owned SURGE venture program
• Partners with leading energy companies that serve as Investors,
Customers, and Mentors to our portfolio
• Recruits globally and invests locally into Houston based Energy
Service focused entrepreneurs using technology as advantage
• Owns exclusive ecosystem of top industry experts and entrepreneurs
in energy technology
• Develops loyal bench of talent through large alumni base and deep
industry connections
“The premier destination for Energy Entrepreneurs”
2
INTRODUCING SURGE VENTURES
4. CONFIDENTIALCONFIDENTIAL
SURGE FUND V OFFERING
$50M FUND DEDICATED TO EARLY STAGE ENERGY TECHNOLOGY
4
§ Located in the Energy Capital
(Houston); vertically focused on
Energy technology.
§ Leveraging SURGE, top energy
investment program and proprietary
global deal flow.
§ Partnering w/ leading energy
companies that serve as advisers and
co-investors.
§ Targeting revenue producing energy
entrepreneurs using capital efficient
technologies (software and ‘smart’
hardware) for market advantage.
§ Becoming the first institutional investor
(Pre-Seed, Seed, and Series A) with
follow-on investments to maintain
ownership position.
INVESTMENT FOCUS AND MODEL OVERVIEW OF FUND STRUCTURE
Fund Size $50M
First Close $15M (Fall 2015)
Fund Life 10 years
Commitment
period
4 years
Management Fee 2.5% (life of fund avg.)
Carried Interest 20% to GP
GP Commitment Minimum of 1%
Minimum LP
Commitment
$250,000 individual;
$1M institutional
Executive Summary
5. CONFIDENTIALCONFIDENTIAL
FUND THESIS
SURGE FUND V ADDRESSES A GAP IN THE ENERGY TECH VC SPACE
SURGE IS A
NATURAL OWNER
§ COMPETITIVE ADVANTAGE: SURGE has created a hard to replicate network of corporate
partners/sponsors/investors/ mentors to help its portfolio companies; CVCs actively look to
us as a pipeline for later stage investments
§ TRACK RECORD: SURGE has raised four funds in Houston with continued early success
(even in low oil prices) of portfolio tracking to venture returns.
§ UNCAPTURED VALUE: Fund V is a natural extension of previous funds as it monetizes the
value created by the Accelerator. The fund will only co-invest to maintain the ecosystem
with broader access to exit options within and outside the energy industry
GREAT MARKET
§ ENERGY DISRUPTION: The Oil & Gas industry is experiencing dramatic changes driven by a
broad shift to unconventional resources (e.g. shale, deepwater). Legacy utility businesses
also appear poised for large changes, as demand stagnates and distributed generation gains
ground.
§ SOFTWARE EATING THE WORLD: VC investment is fueling rapid innovation in digital
technologies, leading to dramatic cost improvements and changes in business models
across industries. There has been limited disruption in energy to date until now.
§ CREW CHANGE AND COST PRESSURE: Generational turnover, coupled with ongoing cost
pressures, are driving faster adoption of low cost digital innovation
WITH A GAP
§ COASTAL VCS AREN’T IN THE GAME: VC powerhouses on the coasts have never invested
in traditional energy, and don’t have the local presence or relationships needed to be
successful
§ MATURATION OF LOCAL ENERGY VC FUNDS: Successful energy VCs in Texas have moved
to bigger check sizes, focusing primarily in Series B/B+ or growth capital investments
§ CORPORATE VC AND ANGELS ARE ONLY A PARTIAL SOLUTION: Angels make very early
stage investments, but lack the supporting ecosystem and process to support (not only
finance) young companies. Corporate VC is active in energy, but only has capacity for later
stage investments (Series B+)
5
Investment Thesis
6. CONFIDENTIALCONFIDENTIAL
IMPACT OF OIL PRICES
LOW OIL PRICES SPURS INVESTMENT INTO ENERGY TECHNOLOGY
Urgency to Reduce Costs
Increased Speed of Acquisitions
Opportunistic Valuations
Acceleration of Crew Change
Through emerging technological
solutions
§ Engineered fracking
§ Drilling automation
§ Predictive maintenance
Large service companies that have
access to cash will acquire
technological capabilities at lower
prices
Early stage investors will be in a better
position to negotiate valuations with
companies
Forced retirements drives the on-
boarding of tech-savvy leadership who
will demand vs. resist technology
adoption
Slow Buying Decisions
Reduced Investment Capital
Customers who are cash constrained
will procrastinate new technology
implementation
Non-O&G investors will become
increasingly cautious to invest in
industry startups during times of
uncertainty
6
Investment Thesis
7. CONFIDENTIALCONFIDENTIAL7
SURGE VALUE PROPOSITION
BRIDGING BOTH SIDES OF THE ENERGY TECHNOLOGY CHASM
History
PROPRIETARY & GLOBAL
DEAL FLOW
1,000+ Companies Annually from
Proprietary Sources:
§ Industry Network (partnerships with
top Super Majors, NOC’s, Service Co’s
and Independents)
§ SURGE Brand + Global Rankings
§ SURGE Alumni Network
§ SURGE Accelerator Applications
Process
§ Oil Country Partnerships (Canada,
Norway, Brazil, Middle East)
§ McKinsey Partnership
§ University Energy Clubs
§ Proprietary Search Methodologies
DEEP INDUSTRY PARTNERSHIPS
Validation of SURGE Value Proposition:
Major Industry players Serve as Advisers,
Investors, and Customers
Right Ideas,
Right teams
Internal
Champions
8. CONFIDENTIALCONFIDENTIAL8
KEY LESSONS LEARNED
TRACKING TO VENTURE RETURNS,BELIEVE CAN SUBSTANTIALLY IMPROVE
History
• Invest into what we know
• Engage industry partners earlier
• Focus on later staged entrepreneurs
• Retain pro-rata rights
• Focus has allowed us to see bigger
patterns
• Develop long-term capital partners
that know energy
• Early stage venture model is best
entry point, but not the only way
• Be exclusive
• Build a great team
KEY LESSONS KEY ACTIONS
S4 portfolio focused on key themes
Send deals, screen, and sit on IAC
S4 portfolio is revenue generating
Investing S5 into portfolio winners
Creating investment strategies that
align for multiple roll-up / PE plays
New fund and corporate partners
help fill gap in funding landscape
Working with capital partners not
required to force early venture exits
Exclusive McKinsey & Energy Industry
corporate partnerships
Team has deep industry expertise,
experience in larger roles, & fit values
10. CONFIDENTIALCONFIDENTIAL
THE SURGE BUSINESS MODEL
BUILD & MAINTAIN
PROPRIETARY
INDUSTRY
ECOSYSTEM
§ Corporate
Partners Serve as
Experts,
Customers,
Investors
§ 200 Exclusive
Industry Experts
MODEL BUILT FROM INSIDE THE INDUSTRY
DEVELOP & FOCUS
ON KEY THEMES
Driven by…
§ Corporate
Partners Use
Cases
§ Library of 3,000
companies
reviewed since
SURGE inception
MAKE GREAT DEALS
§ SURGE only co-
invests in Venture
Program graduates
in order to ensure
market discipline
§ SURGE receives 4%
- 8% equity into all
companies
participating into
Venture Program
(initial deal provides
10x return on
invested capital
from day 1).
§ SURGE receives a
right to invest into
next round to keep
pro-rata and/or $1M,
whichever is
greater.
§ SURGE has largest
benchmark of
priced deals in
Energy Tech to
know best terms
Operating Model
DEVELOP DEEP
BENCH OF LOYAL
ALUMNI
Alumni Provide…
§ Feedback Loop on
What Works and
Lessons Learned
§ Insight into the
Customer
§ Relationships and
Connections
10
Subsurface Operations
PowerIOT &
Hardware
FIND & ASSESS “A”
PLAYER
ENTREPRENEURS
§ Review 1,000
companies
annually from all
over the world
Due Diligence
Includes:
§ Industry Partners
§ 4 – 12 month
intensive program
§ 200 Industry
Experts serve as
Advisors
11. CONFIDENTIALCONFIDENTIAL
FUND V VALUE PROPOSITION
WHY THIS FUND WILL SUCCEED WHILE OTHERS FAILED
11
DEVELOP & FOCUS
ON KEY THEMES
O&G VCs
MAKEGREAT
DEALS
FIND & ASSESS “A”
PLAYER
ENTREPRENEURS
DEVELOP DEEP
BENCH OF LOYAL
ALUMNI
X
BUILD & MAINTAIN
PROPRIETARY
INDUSTRY ECOSYSTEM
X
X
X X
X
X
X
X
X
X
X
X
X
Market Overview
WEST
COAST
VC’s
SURGE
TEXAS VC’s
SCF
PARTNERS
GENERIC PE
12. CONFIDENTIALCONFIDENTIAL
COMPETITIVE LANDSCAPE
HAVING 1ST POSITION GIVES SURGE FLEXIBILITY
12
SEED/SERIES A SERIES B/C GROWTH & LATER STAGE
FINANCIALSSTRATEGICS
ENERGY VCs
CORPORATE
R&D
ENERGY VCs
CORPORATE VCs
TRADITIONAL PEs
OIL FIELD SERVICE AND SOFTWARE
ACQUIRERS
Some opportunistic investmentsin
Seed/Series A by later stage investors
Market Overview
15. CONFIDENTIALCONFIDENTIAL
NEW INDUSTRY DYNAMICS REQUIRE COST CONTROL
OIL PRICE BAND
Price floor
driven by OPEC
countries’ fiscal
requirements.
Price ceiling
driven by
competition
from natural gas,
solar, etc.
COST OF
PRODUCTION
(2014)
SMALLER
DISCOVERY
SIZE
HARSHER
LOCALES
ENVIRONMENT/
SAFETY COSTS
LABOR
COSTS
LEARNING
CURVE/
STANDARDIZATION
TECHNOLOGY COST OF
PRODUCTION
(2030)
CONCEPTUAL
*Statoil’s Helge Lund and Samir Brikho, head of UK-based services company AMEC, at the 21st World Petroleum Congress
“Return on capital for major oil companies has
decreased by a third in the last decade even
though the oil price has tripled in the same
timeframe.”
- Statoil’s Helge Lund and AMEC’s Samir Brikho*
INDUSTRY DEPENDENT ON TECHNOLOGY
15
Market Overview
16. CONFIDENTIALCONFIDENTIAL
CREW CHANGE TO ACCELERATE ADOPTION
RETIREMENT APPROACHING FOR LARGE COHORT OF MGMT
Likely to retire in the
next 5-10 years
• A cohort of very traditional
leaders will retire, putting
decision making power in the
hands of younger employees
demanding technology solutions
• Current leadership will seek to
mitigate talent and knowledge
gaps through the transition with
automation
• Higher prices for scarce talent will
further drive cost efficient
solutions
ROUGHLY 40% OF OIL & GAS EMPLOYEES WILL
BE UP FOR RETIREMENT IN 5-10 YEARS
WE EXPECT THIS TURNOVER ACCELERATE
THE PACE OF INNOVATION
Sources: Schlumberger, McKinsey Insights, Industry press
16
Market Overview
17. CONFIDENTIALCONFIDENTIAL
“SOFTWARE EATING THE WORLD”
OIL & GAS IS STARTING TO CLIMB THE DIGITAL INNOVATION LADDER
DIGITAL INFRASTRUCTURE
DIGITAL TRANSPARENCY
DIGITAL INSIGHT
The oil and gas industry is predicted to spend over $33 billion by 2022 on oilfield
intelligence solutions to address key industry challenges such as managing labor
shortages, maintaining license to operate, reducing capital expenditure, and
increasing efficiency and production.
Current oilfield intelligence solutions are expensive, dependent on communication
technologies that can be antiquated and may soon be retired, and often include a
software interface that can be difficult to use and are limited with regard to
interoperability and scale.*
*SOURCE: WellAware Press Release 2014
Example companies driving adoption of digital
solutions in the energy space...
17
Market Overview
18. CONFIDENTIALCONFIDENTIAL
DATA IS THE FASTEST GROWTH FOR O&G
INCLUDES IT, DATA, AND ANALYTICS
18
Market Overview
EBITDA Margins
<15% 15-25% >25%
>8%5-8%<5%
Market growth
38.3 32.3
36.0
17.6
60.0
46.1
30.0
87.8
8.7
LNG plants &
equipment
Pipe, Fittings
and valves
(PVF)Onshore
construction
services
Rig con-struction
yards
Facility inspection
and maintenance
Land contract
drilling rigs
Onshore
logistics
Other
operational
services
Insulation and
surface
services
1.3
0.1
0.3
0.4
1.5
9.8
14.7
9.7
11.1
38.0
0.5
7.7
Geoscience
software
Well design
software
Production
operations
software
Flow optimization
software
Oil & Gas
data
Completion
equipment
Subsea
equipment SURF
Artificial lift
Offshore
construction
services
Coring
Subsea
intervention
and IMR
16.9
Siesmic data acqui-
stion and processing
0.8 Geoscience
consulting
2.5
Geophysical
equipment
21.2
Drilling
systems
3.7Drilling
tools
4.9Drilling
bits
27.0
Drilling &
completion fluids
17.3Chemicals
21.1
OCTG
6.1
Surface equipment
1.8
Subsea
installation
6.7
Facility
leasing
17.9
Engineering design
5.8
Other construc-
tion services
55.0
Offshore
contract
drilling rigs
16.0
Supply
vessels
3.4 Floating produc-
tion services
6.5
Petroleum
aviation
3.8
Base
logis-
tics
3.5
Casing & tubing
8.0
Fishing &
re-entry
9.5
Cementing
14.3
Wireline
logging
1.2
Surface
data
logging
3.6
Logging while
drilling (LWD)
13.2
Directional
drilling services
4.8
Production
testing
5.7
Coiled
tubing
services
34.7
Hydraulic
fracturing
2.5
Compression
7.0
Well
servicing9.9
Automation/
Electro-
maintenance
SOURCE: Rystad Energy; Spears & Associates; Barclays E&P; IHS Herold; McKinsey; Team analysis
19. CONFIDENTIALCONFIDENTIAL
ENERGY TECHNOLOGY INVESTMENTS
FOCUS ON SOFTWARE AND CAPITAL EFFICIENT HARDWARE
19
Subsurface Operations
Hardware Power/Utilities
* Prospective SURGE IV companies included
Investment Scope & Strategy
AUTHOR ADMINISTER AUT
Terrabotics
20. CONFIDENTIALCONFIDENTIAL
SURGE TEAM
GENERAL PARTNER WITH ENTREPRENEURIAL AND DOMAIN EXPERTISE
KIRK COBURN
20
BACKGROUND:
§ Founder of SURGE Accelerator
§ Lead SURGE Investor
§ 3X Successful Entrepreneur
§ Led Pricing & Supply Chain at Dell
§ MBA and BBA in finance and
accounting from UT Austin.
RELEVANT EXPERIENCE:
§ Houston native with entrepreneurism in his blood.
Kirk’s Grandfather ran West Texas oil fields during
WWII, and Kirk’s father founded/exited an Energy
IT Services Firm sold to Carlyle Group
§ Founded SURGE Accelerator and has led 34
investments during 2012-14
§ Active Angel Investor in Energy Technology with
40+ investments
§ Developed deep relationships with the technology
investment community (Angels, VCs, Corporates)
§ Founder and CEO of Chief Outsiders (acq. 2010),
a Houston-based company with offices in Texas,
Florida, Georgia, and New York
§ Launched The PGA TOUR Network on Sirius XM
(acq. by SIRI) with successful 12X Cash on Cash
return in less than 4 years.
People & Partners
ROBERT REDFORD
BACKGROUND:
§ Actor
§ Entrepreneur
§ Cool Dude
§ Looks Similar to Partner on Left
§ Other Cool Stuff
RELEVANT EXPERIENCE:
§ Does it really matter?
21. CONFIDENTIALCONFIDENTIAL21
SURGE ADVISORS
KEY PARTNERS SERVING TO HELP GUIDE SURGE STRATEGY
People & Partners
LEADERSHIPADVISORS CORPORATEADVISORS
VIP
Director & Board
XXXXXXX
VIP
Board Member
XXXXXX
VIP
CEO
XXXXXX
TBA
Managing Director
Oil & Gas Private Equity
VIP
Largest Energy Operator
VIP
Largest Company
in Energy
VIP
Large Oilfield Services
VIP
Large National Energy Co
VIP
Large Customer
TBA
VIP
VIP
VIP
VIP VIP
VIP VIP
VIP
22. CONFIDENTIALCONFIDENTIAL
EXTENDED NETWORK OF MENTORS
72
57
21
Oil and Gas
Cleantech/Other
Power
• Upstream
• Downstream
• Midstream
• Water
• Generation
• T&D
• Renewable
• Energy Efficiency
• Energy Storage
• Risk Management
• Other
72
108
59
67
Services
Technical
Business
Investment
• HR
• Legal / IP
• IT
• Marketing
• Finance
• Management
• CEO / C level
• Pricing
• Supply Chain
• Private Equity
• Venture Capital
# OF MENTORS BY SECTOR # OF MENTORS BY JOB FUNCTION
• Engineering
• Software
• CTO
• Cyber Security
36 Entrepreneurs, 114 Executives
>200 EXPERTS VOLUNTEER FOR DUE DILIGENCE & BOARD ADVISORY
People & Partners
22
23. CONFIDENTIALCONFIDENTIAL
GOVERNANCE
3 COMMITTEES PROVIDE STRATEGIC INPUT AND FUND GOVERNANCE
Provides strategic direction
on portfolio, partnerships,
and funding
Provides critical input on
individual investment
decisions
Provides fund governance
and resolves potential
conflicts of interest
CORPORATE
ADVISORY BOARD
INVESTMENT
ADVISORY COMMITTEE
LP
ADVISORY COMMITTEE
GENERAL PARTNERS
FAMILY OFFICES
PRIVATE EQUITY
OTHER ADVISORS
VENTURE CAPITAL
CORPORATE PARTNERS
LIMITED PARTNERS
GENERAL PARTERS
23
People & Partners
24. CONFIDENTIALCONFIDENTIAL
VC & PE / SYNDICATE RELATIONSHIPS
EXPANSIVE NETWORK OF FOLLOW-ON CAPITAL PARTNERS
SURGE continues to build out a vast network of capital providers and strategic partners
suitable for Series A-B co-investments and later stage funding.
24
People & Partners
25. CONFIDENTIALCONFIDENTIAL
TRACK RECORD
Vintage Years 2012, 2013, 2014
Actual Performance at 12/31/2014 | On Track for 5x Return by 2020
25
Track Record
$ MILLIONS
Cash on Cash
5.09x
TVPI
9.53x
Program Expenses / Reserved Capital
Cash on Cash
.94x
TVPI
1.76x
Removed Logos to
Protect Alumni
26. CONFIDENTIALCONFIDENTIAL
CASE STUDY – Molecule Software (SURGE 1)
A SaaS Cloud based ETRM (Energy and Trading Risk Management)
solution that replaces the existing inflexible legacy software with
long and costly installation and integration costs
Molecule + SURGE in 2015
Molecule founders had a simple
“idea” that incumbent ETRM
solutions are archaic.
A SURGE mentor referred Molecule
to SURGE as a potential investment
SURGE was impressed by the
depth of founders’ hands-on
knowledge in this space compared
to other startups in this space
ETRM industry is a $1B market. 4
players own 2/3 of the market.
None provide SaaS solutions
Dynamic acquisition market
• PE buys Triple point ($900M)
• Brady buys Viz Risk ($15M)
• Eka buys EnCompass ($20M)
• OpenLink buys SolArc ($150M)
§ PRODUCT DEVELOPMENT: SURGE provided the original
capital to incubate the idea and launch the first product
§ FUNDING: SURGE helped raise $2M led by Mercury Fund
§ TEAM: SURGE helped surround the founders with a board
composed of leaders in BP Trading and Houston Federal
reserve
§ SUCCESS TO DATE:
• Has grown to 10 people
• In less than 3 years, approaching feature parity with
incumbents
• Has participated in competitive bids against incumbents
such as OpenLink and Triple Point and won
• Expecting to reach $250K ARR by Q1, 2015
§ EXIT PROSPECTS: Starting to receive soft offers in the range
equivalent to EnCompass acquisition ($15-$20M)
Molecule in 2011
26
Potential return multiple of 20-30X on initial investment
Keeping this Data Private to Protect the Innocent
27. CONFIDENTIALCONFIDENTIAL
CASE STUDY – Meshify (SURGE 2)
The IOT for Oilfield Services. Integrated hardware and software
company that connects distributed assets (oilfield equipment and
other devices) to key distributed decision makers on any device in
any location.
Meshify + SURGE by 2018
Meshify provided home automation
equipment focused on energy
efficiency.
The SURGE team met the two
founders at a Houston
entrepreneurship networking event.
SURGE was impressed with the team’s
NOV background and technical
knowledge of the hardware & software
stack in IOT.
50 Billion devices are expected to
come online over next 10 years. There
was no clear player focused in Oil &
Gas (largest asset base for IOT).
Acquisition Market very strong:
• Controls Company = 10x Revenue
• M2M Ecosystem = 15x Revenue
• Vertical Market = 8x Revenue
• Strategic Acquisition = 25x Revenue
§ LANDED MARQUEE CUSTOMER: SURGE introduced Meshify
to its first marquee customer which is shaping the revenue
model and competitive advantage.
§ GENERATED RECURRING REVENUE: Company generated
$250k in recurring revenue in 2014 with a run-rate to exit
2015 of over $1.3M based upon SURGE introductions.
§ RAISED ADDITIONAL CAPITAL: Company has run a lean and
a capital efficient business with the support of SURGE
investment. Company has raised a $1M bridge round with the
support of SURGE to extend its runway prior to a capital
raise at a higher valuation.
§ SUCCESS TO DATE:
§ Landed large oil field service company as marquee
customer and other key pilot customers
§ Team has grown to 10 people & recruited star insider
§ Visibility to $30M in revenue by 2018 w/ subset of
industry customers. Other non-energy IOT companies
have exited between 8x – 25x revenue.
Meshify in 2012
27
Current run-rate equates into 6X return for SURGE Investment
Keeping this Data Private to Protect the Innocent
28. CONFIDENTIALCONFIDENTIAL
CASE STUDY – SEE Forge (SURGE 3)
Collect, automate and visualize field-based paperwork
to improve profits. A complete mobile cloud-based
solution to automate all field based paperwork by using
a simple FatFinger™ app.
SEE Forge+ SURGE in 2015
SEE Forge was founded in 2012 in
Perth, Australia.
Won 2nd place for best mobile
technology in Australia judged by
ZAPP Awards in February 2013.
Founder initially moved to California to
meet investors, but customer inquiries
were coming from Houston.
Company was referred to SURGE by
investors and energy entrepreneurs
and arrived with a beta product in
place.
SEE Forge was the poster child for
data capture and crew change
solutions. Company secured $1M
financing round in the first week of the
SURGE Venture program.
§ PRODUCT DEVELOPMENT: SURGE mentor and investor, Raj
Singal, joined as CTO to lead a rebuild of its beta product.
Integration into any system (QuickBooks, ERP, SAP etc.) with
robust real time reporting and dashboard analytics.
§ FUNDING: SURGE helped the company to an immediate $1M
funding round.
§ TEAM: Recently poached Tibco’s Global Energy Director
(champion of its Spotfire Oil & Gas roll out) to lead business
development. Team is now 11 strong.
§ SUCCESS TO DATE:
• $250k recurring revenue in 2014 (6 mo’s) with strong $1M+
pipeline for 2015.
• Landed first enterprise customer
• POC launched with major integrated operator.
§ EXIT PROSPECTS:
• Already recognized by top investment banks as an emerging
player in competitive landscape.
• Partnerships with Microsoft, NOV, Sonim, Box.net and Siemens.
SEE Forge in 2013
28
Comparable SaaS Exits in the 6X-8X LT Revenue
Keeping this Data Private to Protect the Innocent
29. CONFIDENTIALCONFIDENTIAL
CASE STUDY – Guard 1 (SURGE 4)
Turning a security staffing company to a technology provider at the
oilfield gate guard
Guard 1 + SURGE by 2018
Guard 1 provides manned security
services at the gate guards
#2 Player in the market
Recently developed an App that
runs on Guard 1 IPads and enables
digital data capture and remote
and instantaneous access to the
information
The value add from the data opens
a few tangible applications:
• Reduction of billings when
compared with actual delivery of
services at the gate
• Reduction of waiting times/fees
for the trucks at the gate
• Improved safety and security by
recording who is in the field
§ TECHNOLOGY KNOW-HOW: Guard 1 approached SURGE to
leverage our experience in building technology companies.
§ TEAM: SURGE in-house CTO (Raj Singal) acting as interim
CTO to develop a 3 year technology road map
§ STRATEGY: SURGE helping to position Guard 1 as “itunes of
the oilfield apps” due to its physical access to customers
§ ACQUISITIONS/PARTNERSHIPS: In discussions with SURGE
portfolio companies (Greasebook, SEEForge, NeoTreks) to
acts as distributor of others “apps” to the oilfield
§ ACCESS TO CUSTOMERS: SURGE is making introductions to
CFO level customers (partially through partnership with
McKinsey & Company), to land more customers
§ GROWTH
Guard 1 in 2014
29
Implies potential return multiple of 45X on initial investment
$Million
Existing manned
services
Unmanned
Cameras
Platform for
other Apps
Licensing to
non-oilfield Total
Revenues 2014 12 0 0 0 12
Revenues 2018 18 2 4 1 25
Valuation increase 3.5 10 20 5 39
Keeping this Data Private to Protect the Innocent
30. CONFIDENTIALCONFIDENTIAL
This PowerPoint presentation (the “Presentation”) is being provided to certain selected qualified
prospective investors on a confidential basis for informational and discussion purposes only and may not
be relied on in any manner as legal, tax or investment advice or as an offer to sell or a solicitation of an
offer to buy an interest in the investment fund described herein (the “Fund”). A private offering of
interests in the Fund will only be made pursuant to a confidential memorandum or presentation, a Limited
Partnership Agreement and subscription documents related thereto, which will be furnished to qualified
investors on a confidential basis. The interests in the Fund have not been, nor will they be, registered
under the U.S. Securities Act of 1933, as amended, or qualified or registered under any applicable state,
local, provincial or other statutes, rules or regulations.
This Presentation (as amended or supplemented in writing from time to time), is provided on a
confidential basis solely for the information of those persons to whom it is provided and their professional
advisers so that they may consider an investment in the limited partnership interests (the “Interests”) in
the Fund, and is not to be reproduced or used for any other purpose. This Presentation and the
information contained herein may not be reproduced or distributed nor may its contents be disclosed to
persons not directly involved with the prospective Investor’s decision regarding the purchase of the
offered securities without the prior written consent of SURGE Venture Partners.
DISCLAIMER
30