Fintech in 2017: What Will be the Most Interesting Areas to Invest? - Workshop by Alexander Frolov, General Partner of Target Global at the NOAH Conference London 2016, Old Billingsgate on the 10th of November 2016.

1. FINTECH IN 2017:
What will be the most interesting areas to invest?

2. GET YOUR TICKET TODAY!
www.noah-conference.com
2-3
Tempodrom, Berlin Old Billingsgate, London
NOV201722-23 JUN2017
SAVE THE DATE

3. About Target Global
#2 P2P platforms in USA, largest
after Lending Club (which went
public in Dec 2014 at $5.4bn
market cap). Over $3.5 bn
originations in 2015.
One of the leading real estate
lending platforms in USA for
commercial and residential non-
owned property. Over $100 mln
originations in 2015.
A unique solution for merchants
to optimize costs with smart-
routing – a mechanism of
sending transactions to
preferred acquirers
The only online marketplace that
unlocks the value of securities
lending to high net worth
individual investors and family
offices
Online lending:
Insurance:
Technological and transparent
online-insurance platform that
simplifies the process of obtaining
insurance significantly.
A unique technology platform
that provides Marketplace
Lending as a Service (MPLaaS)
for balance sheet lenders
A unique platform for consumers
that offers insurance brokerage
processes online to manage
existing insurance and save
money.
A unique platform that offers a
cloud-based HR SaaS software,
payroll and insurance software
and benefits management portal.
Payments: Securities lending:MPLaaS:
TARGET PORTFOLIO COMPANIES IN FINTECHFACTS:
AUM 300 m$
Locations Berlin, Moscow, Tel Aviv,
San Francisco
Target geography Europe, Israel, USA
Average check 0.25-30 m$
Stages Seed & Late
Portfolio companies 31
Exits 3
ALEXANDER FROLOV
General partner at Target
Global
2

4. What do we mean by «FINTECH»?
FINTECH
Payments/BillingAsset Mgmt Remit & Exchange TradingInsurance LendingBlockchain
3

5. Online lending — how it looked a couple of years ago
Consumer Small Business Student Real Estate
(2005)
4

6. Online lending — how it looks now
5
What is next?

7. Originations are growing exponentially
6
Actual Forecast
400+
0
50
100
150
200
250
300
350
400
450
2012 2013 2014 2015 2016 2017 2018 2019 2020
Marketplace lending 2012-2020, origination volumes, $bn

8. Asset management in alternative credit
7
2011 2012 2013 2014 2015
What is next?

9. There is a need for a marketplace again
ASSET MANAGERSLENDERS
8

10. Niche plays in lending: Securities Lending (1/3)
0
2
4
6
8
10
12
14
16
Securities lendable vs on loan, OUTSTANDING BALANCES in $tn
Total on loan Lendable
Securities lending is a 8.5bn$
niche that no private
individuals or family offices
have access to.
9

11. Niche plays in lending: Securities Lending (2/3)
How securities lending
fees are generated?
10

12. Niche plays in lending: Securities Lending (3/3)
US taxi
and limo
market
~$16bn
US taxi and limo market
increased ~5x to $80bn
with the development of on-
demand taxi apps
Total
lending
fees
~$8.5bn
Securities lending fees
can increase to $50bn in 10
years with the development of
fintech startups
11

13. Insurance
Digital broker model Full carrier model B2B2C Approach
12

14. Remit & Exchange
13
Remittance Currency Exchange
1.0-1.4% fee ~0.4% fee
NO fee
2-4% fee
0.5-1% fee
0.5-1% fee
0.5% fee

15. Blockchain&Cryptocurrencies
14
0
50000
100000
150000
200000
250000
300000
350000
0
200
400
600
800
1000
1200
Jul-10 Dec-10 May-11 Oct-11 Mar-12 Aug-12 Jan-13 Jun-13 Nov-13 Apr-14 Sep-14 Feb-15 Jul-15 Dec-15 May-16 Oct-16
Transactions
BitcoinPrice
Bitcoin Price and Number of Transactions

16. New blockchains and cryptocurrencies emerging: ETH
15
0
2
4
6
8
10
12
14
16
18
20
Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16
Ether Price (USD$)

17. Cryptocurrencies exchanges are already profitable
16
Geeks & sophisticated
crypto traders
640 Currencies / Market Cap: $13.9 bn
MAJOR EXCHANGES

18. How to buy a bitcoin?
17
STEP 1: Open an account on an exchange. Pass KYC process (2-3 days)
STEP 2: Download bitcoin wallet and figure our how it works (1-2 days)
STEP 3: Deposit money into your exchange account via bank transfer (2-3 days)
STEP 4: Figure out a trading platform interface
STEP 5: Want to buy Ether as well? Then you need to download another wallet!

19. Availability to mass investor is key
18
Mass Market UserCrypto Asset
Management

20. Contacts
ALEXANDER FROLOV
General partner at Target Global
afrolov@targetglobal.vc
c/o Mindspace, Friedrichstrasse 68,
10117 Berlin, Germany
19

21. Selected Completed NOAH Transactions
Focus on Leading European Internet companies
Covering over 400 companies across 25 online
verticals, a broad range of over 500 investors as
well as 100+ online-focused corporates
Deep understanding of industry dynamics
Ability to add value beyond banking advice
Facilitates overall process and minimizes
management distraction
NOAH Advisors is globally well connected
and has direct access to virtually all key
players in the industry
Knowledge of and strong relationships with
potential buyers’ key decision makers
Proactively finds and unlocks attractive
investment opportunities for leading investors
Annual NOAH Conference in its 8th year
Over 40 years of combined relevant M&A experience
Routine execution of M&A and financing transactions
with sizes of several billion euros
24 successfully completed NOAH Advisors transactions
underline successful transfer of M&A competencies to
the Internet sector
Entrepreneurial mind-set, focused on growing the
business and establishing a reputation for excellence
Ability to deliver top results in short time frames
Highly success-based compensation structures align
interests of clients and NOAH Advisors, and demonstrate
conviction to deliver top results
Creative deal solutions
September 2015
December 2014
September 2014
October 2014
May 2014
Sale of a 70% stake in
to
Exclusive Financial Advisor to
Drushim and its Shareholders
Sale of 100% of
for $800m to
Exclusive Financial Advisor to
Fotolia and the Selling Shareholders
Sale of 100% of
for €80m to
Exclusive Financial Advisor to
Trovit and its Shareholders
Sale of controlling stake in
to
Exclusive Financial Advisor to
Facile.it and its Shareholders
sold 100% of
for $228m to a joint venture between
Exclusive Financial Advisor to Yad2
and its Shareholders
Unique Industry Know-How
Unmatched Network and Relationships
Strong Investment Banking Competence
Full Commitment - We Are Entrepreneurs!
EUROPE’S LEADING INTERNET
CORPORATE FINANCE BOUTIQUE
September 2016October 2016
May 2016
Investment in
by
Financial Advisor to Oakley Capital
Exclusive Financial Advisor to
10Bis and its Shareholders
®
Marco Rodzynek
Managing Director & Founder
marco.rodzynek@noah-advisors.com
Jan Brandes
Managing Director
jan.brandes@noah-advisors.com
Justus Lumpe
Managing Director
justus.lumpe@noah-advisors.com
The NOAH Advisors Core Banking Team
Nikhil Parmar
Director
nikhil.parmar@noah-advisors.com
10Bis Drushim
Acquisition of a Majority Stake in
by
from
at a valuation of €300m
Investment in
Exclusive Financial Advisor to KäuferPortal
and its Shareholders
by
84% Ownership