Investment Gedinan achs C Management ICOs Fund the Development of New Currencies Dikisten ; . FATA 2. Total Funds Raised by Month (US$ Millions): Angel and Seed Stage 1. Approximate Funds Raised by ICOs by Calendar Year (US$ Milllions) intemet VC versus ICO $4,000 900 a Angel & Seed VC Funding (Internet) = ICO Fundraising 839 = $3,500 - $3,461 800 Ria oO 8 700 2 $3,000 a8 2 3 £600 572 = $2,500 FA ao] ae] 2 500 ae $2,000 a z = 400 36 sor f $1,500 e ets Le 2 3 300 228 278 < ir 62 27 256 259 268 2 $1,000 235 _ 35 230) 23 E * 200 190 8 = $500 é $222 100 80 $0 $26 $14 (82 Be ee Bs eo Re es 0 2014 2015 2016 2017 YTD 76 816 916 1016 11/16 1216 117 217 317 47 SAT G7 TMT B87 97 = 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