Executive Summary

We are pleased to share our mid-year update highlighting extraordinary momentum across our portfolio and the broader market. Our portfolio company Circle's blockbuster IPO validated our 2018 SPV investment (currently in lockup), while Strata Fund captured immediate gains through its IPO participation. Ripple's latest $175/share tender offer marks significant value appreciation for our Ripple SPV (though unrealized), multiple portfolio companies are riding powerful AI tailwinds with Heartflow filing for IPO, and our newly launched Strata Fund is now our primary vehicle for both private and public market opportunities. We are well-positioned for exceptional growth in the second half of 2025.

Market Overview: Nasdaq Bull Run Powers Tech Renaissance

The public markets have roared back to life in 2025, with the Nasdaq delivering its best performance since 2023:

• Nasdaq Composite up 9.7% in May alone, reaching multi-year highs
• 189 IPOs year-to-date - an 87% increase from 2024
• $19.2 billion raised across 142 Nasdaq listings in H1 2025
• Tech sectors leading with 8-10% monthly gains, vastly outpacing defensive sectors

This bullish environment has created optimal conditions for our portfolio companies to access public markets and achieve premium valuations.

Circle's Historic IPO: Portfolio Company Delivers Validation

Circle's public debut on June 5, 2025, marked a triumphant milestone for our portfolio. As early investors through our 2018 SPV, we have witnessed Circle's transformation from startup to critical financial infrastructure provider:

Our Circle Investment Journey:

• 2018: Initial investment via dedicated Circle SPV during early growth phase
• 2025: SPV position currently in lockup period following IPO
• Strata Fund: Participated in IPO allocation and successfully exited with significant gains (no lockup restrictions)
• 7+ year partnership showcasing our long-term investment approach

IPO Highlights:

• Priced at $31 per share (above $27-28 expected range)
• Opened at $69, reached $103.75 intraday
• 168% first-day surge - one of the year's best debuts
• $6.8 billion market cap at pricing, now significantly higher
• $1.1 billion raised after upsizing from initial $624M target

Investment Returns & Strategic Value:

• Our 2018 SPV investors will realize exceptional returns once lockup expires
• Strata Fund captured immediate IPO gains through its allocation (already exited)
• USDC's $61 billion market cap positions it as critical financial infrastructure
• Validates our early thesis on stablecoins and digital payment infrastructure
• Demonstrates our ability to identify category-defining companies early

Ripple Tender Offer: Significant Value Creation for SPV Investors

Ripple's latest tender offer represents substantial value appreciation for our SPV investors:

Ripple Investment Performance:

• $175 per share tender offer price (June 2025)
• 6x appreciation from our initial investment (~$29/share seven years ago)
• 135% premium over recent secondary market pricing ($74-75/share)
• $25 billion implied valuation based on tender price
• Strong financial position: $3.7B cash, zero debt, 41B XRP holdings

Strategic Value:

• Two Ripple SPVs from 2018 showing significant unrealized gains
• Validates our early conviction in blockchain payment infrastructure
• Tender offer provides potential liquidity opportunity for interested investors
• Ripple continues to delay IPO plans, focusing on regulatory clarity

Heartflow IPO: AI-Powered Healthcare Innovation

One of our key portfolio companies, Heartflow, filed for its long-awaited IPO on July 17, 2025, marking another significant milestone for our healthcare AI investments:

Heartflow IPO Details:

• $100 million target raise on Nasdaq under ticker "HTFL"
• $136 million revenue (12 months ending March 31, 2025)
• 39% YoY revenue growth in Q1 2025 ($37.2M)
• 400,000+ patients evaluated using their AI platform
• J.P. Morgan, Morgan Stanley, and Piper Sandler leading the offering

Strategic Value:

Heartflow's AI-powered cardiac imaging creates personalized 3D heart models, helping doctors detect blockages and optimize treatment without invasive procedures. The company previously cancelled a 2022 SPAC merger valued at $2.8 billion, but market conditions have now aligned for a successful public debut. This IPO validates our thesis on AI applications in healthcare diagnostics and positions us for another potential liquidity event.

Portfolio Performance: Riding the AI Wave

Our portfolio continues to deliver exceptional results, with total position values reaching $19.1 million across 441 positions. Recent events demonstrate our ability to identify category leaders early:

Recent Milestones:

• Circle (2018 SPV) - Currently in IPO lockup; Strata Fund captured and exited IPO gains
• Ripple (2018 SPVs) - Significant unrealized value at $175/share tender offer price

AI Portfolio Momentum:

• AI Nexus & AI Prism funds capturing enterprise AI adoption surge
• Domino Data Labs SPV - Leading MLOps platform for enterprise AI deployment
• Portfolio companies benefiting from $1+ trillion AI infrastructure buildout
• Multiple AI unicorns in late-stage funding or IPO preparation
• Strategic positioning ahead of next wave of AI commercialization

Notable Unicorn Holdings:

Based on our track record of 15 unicorns backed to date, our current portfolio includes several category leaders:

• PsiQuantum - Quantum computing platform using photonic computing
• Carbon - Digital manufacturing platform valued at $2.4B
• Dataminr - AI platform for real-time event detection (co-investors: Goldman Sachs, Credit Suisse)
• Lightmatter - Photonic computing platform for AI workloads
• Oxbotica - Autonomous vehicle technology (Series B & C SPVs)
• Zipline - Drone delivery technology with healthcare/logistics applications (co-investors: Sequoia, a16z)
• Paige - AI pathology leader (Sloan Kettering spinoff)
• Privateer - Space sustainability company founded by Steve Wozniak

Sector Highlights:

• Fintech/Crypto - Circle IPO (in lockup) and Ripple tender offer value appreciation
• Healthcare AI - Led by Heartflow's IPO filing and AI Prism fund performance
• Space Technology - VS Space fund capitalizing on commercial space expansion
• Sustainable Food Tech - Strong positions in Eat Just; Evaluating Plenty post restructuring
• Enterprise AI - Domino Data Labs and other MLOps platforms gaining traction
• Deep Tech - Quantum computing, photonics, and advanced manufacturing

Portfolio Challenges & Opportunities:

While most holdings show strong momentum, we are actively monitoring:

• Plenty's Chapter 11 restructuring - Pivoting from leafy greens to premium strawberries with $20.7M DIP financing
• Strategic shift may create more viable unit economics in vertical farming
• Maintaining operations at Virginia farm and Wyoming R&D facility

IPO Pipeline: Well-Positioned for Upcoming Liquidity Events

Following Circle's successful IPO, we are preparing for additional liquidity events. Importantly, we are exceptionally well-prepared for these IPOs given our longtime relationships with Goldman Sachs, Merrill Lynch, JP Morgan, and Morgan Stanley - ensuring strong access to allocations and favorable treatment for our funds:

Near-Term IPO Activity:

• 2 IPOs expected this year from our portfolio
• Potentially 5 more over the next 12 months
• Our investment banking relationships position us for meaningful allocations

Our Strategic Advantages:

• Deep relationships with all major investment banks
• Track record of successful IPO participations
• Strata Fund's flexibility to participate without lockup restrictions
• Ability to support portfolio companies through public transition

Strata Fund: Our Primary Investment Vehicle Going Forward

We are excited about the strong launch of Strata Fund, our flagship vehicle that now serves as our primary platform for all new investments:

Fund Highlights:

• Silicon Valley-based, family office-backed evergreen structure
• Hybrid strategy combining venture and public markets
• Primary vehicle for all new private investments, public positions, and IPO participations
• No more individual SPVs - all opportunities now flow through Strata
• 15 unicorns backed across previous vehicles
• 27.5% IRR historical performance
• Structured liquidity windows while maintaining long-term focus

Strategic Advantages:

• Single vehicle for full investment lifecycle (private to public)
• IPO participations typically without lockup restrictions
• Accumulating both private and public positions in one fund
• Simplified structure for investors vs. multiple SPVs
• Professional management with institutional infrastructure

Early Success - Circle IPO Participation:

Strata Fund demonstrated its hybrid strategy by participating in Circle's IPO and successfully exiting the position with significant gains, unencumbered by the lockup restrictions affecting our SPV position. This showcases the flexibility and liquidity advantages of our new approach.

Investment Strategy Update:

Going forward, all new opportunities - whether private rounds, public market positions, or IPO allocations - will be executed through Strata Fund. This consolidated approach provides:

• Better portfolio management and rebalancing capabilities
• Ability to follow winners from private through public markets
• More efficient capital deployment
• Enhanced liquidity options for investors

Strata Allocations Update:

Strata Fund has successfully completed its initial closing, with strong participation from our existing investor base. The next closing is scheduled for August, and allocations will be given on a first-come, first-served basis, with priority to existing investors.

For those not yet in Strata, this represents a unique window to join our flagship fund before it becomes capacity constrained. With Circle's IPO success already demonstrating Strata's ability to capture immediate gains (while our SPV remains in lockup), and our pipeline of 2 near-term IPOs plus 5 more potential listings over the next 12 months, Strata is positioned to deliver multiple liquidity events that SPV investors might miss.

The fund's hybrid structure - combining our venture expertise with public market capabilities - offers unparalleled flexibility to capture value at every stage of a company's lifecycle. As we've demonstrated with Circle, Strata can participate in IPOs without lockup restrictions, providing liquidity when SPV investors must wait. Don't miss the opportunity to consolidate your venture exposure into a single, professionally managed vehicle with quarterly liquidity options and access to our full deal flow. The August closing may be your last chance to enter at the ground floor of what we believe will be our most successful fund to date.

Looking Ahead: H2 2025 Catalysts

Several factors position us for exceptional performance in the second half:

Market Catalysts:

1. Stablecoin legislation expected by August, legitimizing $248B market
2. Fed policy stability supporting growth valuations
3. AI infrastructure spending accelerating across enterprises
4. IPO momentum building with strong pipeline

Portfolio Catalysts:

1. 2 portfolio company IPOs expected this year
2. Circle lockup expiration providing liquidity for SPV investors
3. AI portfolio companies hitting commercialization milestones
4. Deep tech investments approaching breakthrough moments

Investment Recommendations

Based on current market dynamics and our portfolio positioning:

1. Allocate to Strata Fund - Our primary vehicle for all new opportunities
2. Consider liquidity options - Evaluate participation in tender offers like Ripple
3. Consolidate holdings - Transition from multiple SPVs to single Strata allocation
4. Maintain AI/deep tech focus as sectors enter hypergrowth phase
5. Prepare for liquidity events with tax-efficient strategies

Closing Thoughts

The convergence of favorable market conditions, breakthrough technologies, and our strategic positioning creates an extraordinary opportunity set. Our portfolio company Circle's successful IPO validates our early-stage conviction, with our SPV position awaiting lockup expiration while Strata captured immediate gains. Ripple's tender offer marks significant unrealized value appreciation for our SPV investors. Meanwhile, Heartflow's filing demonstrates the continued strength of our healthcare AI portfolio.

With Strata Fund as our primary investment vehicle going forward, we offer a streamlined approach to capture value across the full investment lifecycle. No longer constrained by individual SPV structures, Strata provides the flexibility to accumulate positions in the best companies at any stage - private, public, or IPO. Our strong relationships with Goldman Sachs, Merrill Lynch, JP Morgan, and Morgan Stanley ensure we are well-positioned to capitalize on the robust IPO pipeline ahead.

As we prepare for 2 IPOs this year and potentially 5 more over the next 12 months, we expect significant value creation and liquidity events. We remain committed to identifying and backing the transformative companies solving humanity's greatest challenges.

Thank you for your continued partnership and trust.

Best regards,

Venture Science Investment Team

---

This update is confidential and proprietary. Past performance does not guarantee future results. Please contact us to discuss investment opportunities or schedule a portfolio review.