Canapi Ventures

Highly Confidential & TradeHighly SecretConfidential & Trade Secret

Funding the future of financial services

Highly Confidential & Trade Secret

Canapi is a financial technology venture fund investing in early to growth-stage companies offering disruptive alternatives to outdated business models and technologies Our mission is to retool the infrastructure of the financial services industry with banks as our investors & partners.

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Highly Confidential & Trade Secret

EXPERIENCED TEAM 120+ years of financial services, fintech and VC experience

Gene Ludwig

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40+ Years of Financial Services Experience

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27th Comptroller of the Currency

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Founder & CEO, Promontory Financial Group

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Founder & Chairman, Promontory Interfinancial Network

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Vice Chairman Bankers Trust

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General Partner, CapGen Financial

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J.D., Yale University | M.A., Oxford University | B.A., Haverford College

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40+ Years of Financial Services Experience

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Founder and CEO, Live Oak Bancshares

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Co-founder of nCino

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Founder and Chairman of S1 Corporation

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Founder, Security First Network Bank

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Chairman and CEO, Cardinal Bancshares

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Wachovia Bank and Trust

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B.A, Washington & Lee University

Managing Partner, CenterHarbor Investment Advisor and Investment Committee Member

Chip Mahan Managing Partner, LiveOak Investment Advisor and Investment Committee Member

Dan Beldy Partner

Walker Forehand Partner

Neil Underwood Partner

Jeffrey Reitman Partner

Greg Thome Sr Associate

Jeffrey Goldstein Senior Advisor

Jim Hale Senior Advisor

Sandy Weill Strategic Advisor

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Highly Confidential & Trade Secret

PROVEN TRACK RECORD Founding and building successful fintech and banking companies

FOUNDED/OPERATED

ADVISED

▪ Six financial services businesses

▪ More than 100 innovative financial technology companies

▪ 27th Comptroller of the Currency

▪ CapGen Financial, $500M bank private equity fund

▪ 20 of the 20 largest banks in the United States by assets

▪ Founder/CEO of Promontory Financial Group

▪ Nyca Partners, early-stage fintech fund

▪ 1,000+ financial institutions across the world

▪ Director of Corporate Strategy for Promontory Financial Group

▪ Propel Venture Partners, earlystage fintech fund

▪ Former Under Secretary of the Treasury for Domestic Finance

▪ Live Oak Ventures, corporate venture subsidiary of Live Oak Bancshares

▪ Leading cloud-based bank operating platform ▪ Most profitable publicly traded bank in the United States in 2017 ▪ Leading regulatory consulting firm, acquired by IBM in 2016 ▪ Largest bank deposit network in the United States, serving over 2,900 banks acquired by Blackstone in 2019 ▪ The first internet-only bank

REGULATED

▪ Former CFO of the World Bank

INVESTED

▪ Hellman & Friedman ▪ Steamboat Ventures, Disney’s venture arm ▪ Hummer Winblad ▪ FTV Capital, $2.7B AUM ▪ Hovde Private Equity Advisors

Highly Confidential & Trade Secret

Our Thesis

Challenges faced by financial institutions create a massive opportunity for fintech

Infrastructure

Customer Experience

Emerging Technology

Bank infrastructure is 38 years old on average

Bank branches projected to decline 33% by 2025

AI, Blockchain each offer operational cost reductions of 30%-80%

Only 10% of surveyed banks happy with core tech vendors

High customer expectations, low loyalty to existing bank offerings

Servicing costs can be lowered by 40%+ by automating core functions

Access

Regulation

Partnerships

Mobile, open banking and advanced data analytics

Expected 300M pages of regulation by 2020

82% of financial institutions will increase partnerships with fintech companies over the next 3-5 years

Underbanked consumers spent $173B on financial products in 2017

Leverage technology to enhance efficiency and effectiveness

Sources: CB Insights, BankDirector AOBA Survey, Citi, McKinsey, PwC, PwC, CFSI, JWG

Banks need to enhance agility and foster culture of innovation

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Highly Confidential & Trade Secret

Financial institutions need to leverage technology to amplify strengths & bridge gaps

More efficient distribution

Create new business models Streamline Manual processes

Cloud & open platform mentality

Expand beyond banking

Re-define user experience

Understand and reach the customer

Support digital migration through new products

Promote competitive & stable infrastructure

Run an efficient & secure compliance risk operation

Highly Confidential & Trade Secret

We built an LP network of leading financial institutions who agree… and seek greater access to the fintech ecosystem Associations

37 institutions 45 states 6,500+ branches 20M+ customers

Source: SNL Financial. Data represents banks who have given written and verbal commitments, including Live Oak Bank.

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Highly Confidential & Trade Secret

Team players

Canapi offers a different kind of capital

Drive Revenue Growth for Portfolio Companies Pilot opportunities and commercial agreements with Fintech Alliance / strategic bank LPs

De-Risk Early Stage Companies

Playbook of best practices for setting up a pilots and contracts with financial institutions

Deep Domain Expertise in Banking and Regulations Our term sheet is an application for employment, we will help navigate operational challenges

1. Hiring full-time Fintech Alliance Director by Q2 2020, Canapi partners and team managing this role in the interim

Strong Network in the Venture Capital Ecosystem Hands-on support in all aspects of capital raising

Dedicated Director to Facilitate Bank Comms1 Resource dedicated to opening the right doors and helping you navigate the process

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Highly Confidential & Trade Secret

For further information please contact a Canapi team member: Gene Ludwig eludwig@canapi.com

Dan Beldy dan.beldy@canapi.com

Chip Mahan cm@canapi.com

Walker Forehand walker@canapi.com

Neil Underwood nu@canapi.com

Jeffrey Reitman jeffrey.reitman@canapi.com

Greg Thome gregory@canapi.com

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