SNAPSHOT

International exposure to the next

Location: San Francisco, CA
generation of blockchain
Website: reverevc.com
technologies
Twitter: @lantern_ventures

$50M $10M $250K

Target
Fund
Amount
Minimum

Siz e Closed Check Siz e

2% 20% Dec 12, 2022

Average
Carried
Next

Management Fee Int erest Close

Blockchain
Primary Indust ry

DAOs
Deep Tech
Software

Persona
St rat egies St age Exposure

Max Potential Pre-Seed; Seed

Page 3 of 24 Oct 11, 2022 - Lantern Ventures Fund I Initial Rating

 VERIFIED REPORT

Page 4 of 24 Oct 11, 2022 - Lantern Ventures Fund I Initial Rating

 OVERVIEW

RATING OVERVIEW:
LANTERN VENTURES FUND I

Best in Class is reserved for all-around performers

who rate well across multiple categories.

Clear Strength Positive Attribute Industry Standard On Watch

Operating Investing Decision

Bench
Making
Team

Funnel Winning Signal Channels

Sourcing

Guidance Revenue Growth Community

Value Add

Historical Co-investors Outliers Allocations

Track Record

Operations LP Comms Branding LP Co-invest

Firm

Management

Page 5 of 24 Oct 11, 2022 - Lantern Ventures Fund I Initial Rating

 ANALYST NOTE

ANALYST NOTE:
LANTERN VENTURES FUND I
With so many sector specialists at the emerging manager level, finding an emerging
blockchain manager that can compete with top-tier funds is difficult. However, when 2 good
things come together, they can combine to make something great. This would be the story of
Lantern Ventures, whose Fund I combined the respective successes and investing
experiences of 2 strong performing firms to create the next top-tier venture capital firm, with
strong roots in the blockchain. With demonstrated success in their Fund I, the Lantern team
has launched their $200M Fund III.

In 9 years at Sand Hill Ventures, GP Eric Woo deployed ~$100 million into 22 companies from
seed to series D, taking board seats on 9. As an angel, he invested in 7 companies, 6 of which
overlap with his Sand Hill Ventures investments. The combined track record has returned 5.2x
TVPI and 48% Net IRR. In addition to Eric, General Partner Chris Shen spent 6 years at Wall
Street Ventures, deploying $80 million into 6 companies and returning 11.5x TVPI and 87% net
IRR. Chris Shen is also a repeat entrepreneur in the blockchain space as the founder of
BloccChain, Criptoe, and Net3. A third partner, Shawn Lan, joined Chris in co-founding
BloccChain and Criptoe and will help Lantern from an operational support perspective. In
addition to founding several successful web3 companies, Chris and Shawn have run the
venture studio, Revere-O, focusing on consumer crypto companies and building operational
experience. Lastly, Eric’s involvement as Treasurer of the “British Are Coming” DAO gives him an
insider's reputation amongst the web3 community. While they have had some success in the
early stages, we will watch to see how their track record progresses.

Some funds just know how to pick ‘em, and Lantern Ventures’ track record shows they know
that game well as an emerging manager. Clear strength in the track record as Lantern Ventures
has 2 funds that have achieved at least 3x TVPI, and 30% IRR with a Unicorn and a $250M exit.
Lantern Ventures’ first 2 funds place them in the top 5% of all VCs, achieving 5.7x TVPI across
Funds I and II. Even more impressive as none of the funds have been fully deployed as of yet ,
so we anticipate more appreciation based on past performance. We like the strong co-
investor base in every deal, featuring companies like BenMarc Capital (PourtCo), WinkelBoss
Fund (ProductFitMarket), and GroupThink Capital (SillyCon Valley). Since Lantern Ventures
invests at the earliest stage, they will also bring on their LPs to participate in the rounds,
leading to a performance multiple of 4.1x MOIC on the LP's co-investment money.

Page 6 of 24 Oct 11, 2022 - Lantern Ventures Fund I Initial Rating

 ANALYST NOTE

Something to watch here are the growth levers Lantern looks to implement in their portfolio
companies. Migrating from a third-party HR platform, they will begin tapping into HBCUs and
similar diverse organizations for a talent pipeline. As they bring in their new Head of Platform,
they will organize open positions to filter for applicants and organizations to match
opportunities more efficiently. However, for a growing firm like Lantern, it’s going to be critical
that they invest in resources and formalized processes for adding value add to continue
competing with other VC platforms.

Investors looking to find the next institutional quality blockchain fund, while still ensuring your
returns are truly driven by diverse founders, it’s time to jump on the Lantern rocket ship
before they take off. This is the time to secure an allocation into a fund that will very likely be
oversubscribed in the future.

Page 7 of 24 Oct 11, 2022 - Lantern Ventures Fund I Initial Rating

 TEAM

Team
In 9 years at Sand Hill Ventures, GP Eric Woo deployed ~$100 million into
22 companies from seed to series D, taking board seats on 9. As an
angel, he invested in 7 companies, 6 of which overlap with his Sand Hill one
Ventures investments. The combined track record has returned 5.2x
TVPI and 48% Net IRR. In addition to Eric, General Partner Chris Shen
spent 6 years at Wall Street Ventures, deploying $80 million into 6
companies and returning 11.5x TVPI and 87% net IRR. Although Eric and
Chris have been recognized by Forbes 30 Under 30 for their VC track
record, their experience is rooted in the growth stages. While they have
had some success in the early stages, we will watch to see how their one
track record progresses.

General Partner Chris Shen is a repeat entrepreneur in the blockchain

space as the founder of BloccChain, Criptoe, and Net3. Shawn Lan joined
Chris in co-founding BloccChain and Criptoe. In addition to founding
several successful web3 companies, Chris and Shawn have run the
venture studio, Revere-O, focusing on consumer crypto companies and
building operational experience. Lastly, Eric’s involvement as Treasurer of
the “British Are Coming” DAO gives him an insiders’ reputation amongst
the web3 community.

Outside of the 3 partners, Lantern Ventures leverages a proprietary

community of 500 web3 operators for diligence and support. The fund
will provide bespoke assistance for the moment , but they are working
with a portfolio company to create a platform to facilitate the
connections between the community and founders.

From a decision-making perspective, each Lantern Ventures partner will

rank each company on a scale of 1-10 what is their level of conviction.
Although the conviction is up to each partner, decisions lie with Eric at
the end of the day, with no checks or balances.

Page 8 of 24 Oct 11, 2022 - Lantern Ventures Fund I Initial Rating

 TEAM

Operating Experience
"empty" Investing Experience
• Chris is a repeat entrepreneur in the • In total, Eric deployed ~$100M into 23
blockchain space, founding BloccChain, Criptoe, companies and returned 5.2x MOIC.

and Net3.
• In 6 years Chris deployed $80M into 6
• Shawn joined Chris in co-founding BloccChain companies and returned 11.5x MOIC.

and Criptoe.

• Chris’s “British Are Coming” gives him a

reputation amongst the web3 community.

Decision Making Bench

• Will vote on a scale of 1-10 what is their level • Lantern Ventures leverages a proprietary
of conviction.
community of 500 web3 operators for
• Decisions lie with Eric at the end of the day. diligence and support.

• Revere-O has a team of 10 for incubation and

product diligence.

• Working to create a platform to facilitate the

connections.

Page 9 of 24 Oct 11, 2022 - Lantern Ventures Fund I Initial Rating

 SOURCING

Sourcing
As a Pre-Seed and Seed stage fund focused on rapid, scalable action,
Lantern Ventures sources ~1,000 deals per year, using a proprietary
curated network of over 12k contacts in their impact-focused one
ecosystem, enabling 1,000+ introductions per year. Inbound deals are
sent from founder referrals, CVCs, industry experts, third-party ranking
systems, and later-stage investors, such as Sand Hill Ventures, Big
Finance Corporate, and Emerging Fund Manager.

The firm leverages a 4-step filtering process from reviewing ~1,000

companies annually to investing in 1 company per month.

Fast Pass: The fund will see 1,000 per year, starting with a fast “no”
to companies that are not a stage, market , or thesis fit.
Top of the Funnel: ~80 companies per month will receive a high-
level call or email questions with a partner.
Middle of the Funnel: 10-15 companies per month will receive
team diligence industry analysis and follow-up.
Bottom of the Funnel: 2-3 companies per month will receive
team review, each scoring against 5 criteria.

The fund will focus on ownership targets and check sizes in the pre-
seed/seed stage, rather than leading or co-investing in a round. They
look for teams and markets where they can help unlock institutional
funding and multiple opportunities to expand their own ownership
before Series A. Although Lantern Ventures is not intentionally looking to
lead, they will set terms ~50% of the time, due to their experience
investing in ~100 companies.

Page 10 of 24 Oct 11, 2022 - Lantern Ventures Fund I Initial Rating

 SOURCING

Channels
"empty" Funnel
• Proprietary curated network with over 12k • Lantern Ventures leverages a 4-step filtering
people, enabling 1k annual introductions.
process from top to bottom of the funnel.

• Founder referrals, later-stage investors, CVCs, • Fast “no’s” are followed by a top, middle, and
industry experts, or third-party ranking bottom of the funnel diligence process to filter
systems.
~1,000 deals per year.

• Lantern Ventures will see ~1,000 deals per • Funneling process leads to 1 investment per
year month.

Winning Signal
• Fund I has hit allocations 100% of the time • The focus is on ownership and check sizes in
across the first six deals.
pre-seed /seed stage.

• Lantern Ventures did not have allocation •Lantern Ventures is not looking to lead deals
targets in their pilot fund. but will set terms ~50% of the time.

Page 11 of 24 Oct 11, 2022 - Lantern Ventures Fund I Initial Rating

 VALUE ADD

Value Add
As Lantern Ventures brings corporate LPs who pilot initial products prior
to investing, they present one of the most unique revenue-generating
strategies we have seen so far at Revere. We see companies like one
HorseCo, Revalewtion, and IndepenDANCE reviewing 35+ companies
each over the past 2 years and investing in between 12-15% of the
opportunities they see. Lantern Ventures has already had $250M in
contract value generated for portfolio companies, which are currently
engaged in 30+ interactions with potential for corporate collaboration.
Lantern Ventures leverages global corporate connections for their
startups to drive community, as their startups are leveraged on over 80
corporate sites across 30 countries.

Lantern Venture’s 2 junior partners will integrate into their portfolio

companies as corporates perform pilot trials. In short , each portfolio
company not only receives a pilot trial from Lantern Ventures’ corporate
LPs, but they also receive a dedicated Lantern Ventures “Consultant” as
they go to market.

The fund implements GTM measures as part of their LPs pilot programs.
The team helped RollTIDE with a GTM plan with KPIs, C-Suite Steering
Committee, and a Roadshow, saving $1M annually and signing a contract
to sell 1,000+ units to one of their corporate LPs. Lantern Ventures also
assisted Muskett with navigating R&D trials, creating an import/export
path for samples & products at scale, and mobilizing & operationalizing
cross-functional R&D + GTM at corp.

Page 12 of 24 Oct 11, 2022 - Lantern Ventures Fund I Initial Rating

 VALUE ADD

Guidance
"empty" Revenue Generation
• Lantern Ventures’ junior partners will • $250M in contract value generated for
integrate into portfolio companies as they run portfolio companies.

pilot trials.
• Due to corporate LPs, Lantern Ventures’
• Companies not only receive a dedicated startups are currently engaged in 30+
consultant but a pilot trial with corporate LPs. interactions with potential for corporate
collaboration.

Growth Levers Community

• Lantern Ventures’ junior partners assist • Global presence as Lantern Ventures
companies with R&D and GTM goals.
leverages global corporate connections.

• Several examples of guiding companies • Lantern Ventures startups are leveraged on

through their GTM phases alongside corporate over 80 corporate sites across 30 countries.
LPs.

Page 13 of 24 Oct 11, 2022 - Lantern Ventures Fund I Initial Rating

 TRACK RECORD

Track Record
Some funds just know how to pick ‘em, and Lantern Ventures’ track
record shows they know that game well as an emerging manager. Clear
strength in the track record as Lantern Ventures has 2 funds that have one
achieved at least 3x TVPI, and 30% IRR with a Unicorn and a $250M exit.
Lantern Ventures’ first 2 funds place them in the top 5% of all VCs,
achieving 5.7x TVPI across Funds I and II. Even more impressive as none
of the funds have been fully deployed as of yet , so we anticipate more
appreciation based on past performance.

We like the strong co-investor base in every deal, featuring companies

like BenMarc Capital (PourtCo), WinkelBoss Fund (ProductFitMarket), and
GroupThink Capital (SillyCon Valley). Since Lantern Ventures invests at
the earliest stage, they will also bring on their LPs to participate in the
rounds, leading to a performance multiple of 4.1x MOIC on the LP's co-
investment money.

Lantern Ventures prides itself in finding high-caliber deals at the early

stages. Lantern Ventures has found several high-performing and well-
known names, such as PourtCo (33x), ProductFitMarket (22x), SillyCon
Valley (20x). By investing at the companies’ earliest stages and bringing
on top-quality VCs in later rounds, Lantern Ventures has positioned
itself as a clear value-add investor. This early belief and follow-on capital
is valuable in the eyes of an early-stage founder and has led to many
opportunities to invest in later rounds.

Page 14 of 24 Oct 11, 2022 - Lantern Ventures Fund I Initial Rating

 TRACK RECORD

Historical
"empty" Co-investors
• In just 4 years, Lantern Ventures has turned • BenMarc Capital (PourtCo)

$40M of capital into $250M.

• WinkelBoss Fund (ProductFitMarket)

• 5.7x MOIC and 75% IRR across Funds I & II, • GroupThink Capital (SillyCon Valley)
landing them in the top 5% of all VCs.

• Fund I has already received 3 markups.

Outliers Allocations
• PourtCo (33x)
• Lantern Ventures invests at the seed stage to
• ProductFitMarket (22x)
secure founder loyalty.

• SillyCon Valley (20x) • They are also a value add by bringing co-
investors, strategic partners, and expansion
strategies.

Page 15 of 24 Oct 11, 2022 - Lantern Ventures Fund I Initial Rating

 FIRM

Firm Management
Lantern Ventures will write $250k-1M checks into ~21 seed to series A
companies. The Fund II portfolio will be split between the US (50%), Asia
(30%), Africa (10%), and Latam (10%). Lantern Ventures will perform a “Real one
Assessment” on every portfolio company, which is a due diligence
questionnaire that looks at how the founder thinks about their company,
how they delegate responsibilities, how they deal with risk
management , and how they view the market sizing.

Every quarter, Lantern Ventures generates an Impact Report , where the

portfolio company reports KPIs back to Lantern Ventures. The report is
derived from sections in their memos dedicated to impacting where
they score a company for how they treat their stakeholders. Towards the
end of the DD process, they build a “Check us Out” document , looking at
the stakeholders and mapping an outcome for each of them. They share
metrics with the founders for feedback and use that to create the
quarterly report.

Chris co-hosts the “In your Ears” Podcast and is the author of “I’ll Make
You Money, Trust Me” and “The Money Game” online magazine. He also
posts thought leadership pieces in Yehaw finance, CompCrunch, and
more. Lantern Ventures will also sponsor accelerator programs for
exposure to founders in their target markets. Lantern Ventures will also
send weekly newsletters to an 8,000+ audience that has a 51% average
open rate.

Lantern Ventures plans to allocate a portion of their carry to portfolio

founders who hit predetermined milestones, up to 40 basis points:

If Lantern Ventures invests in their pre-seed or seed, the

milestone is securing follow-on investment.
If Lantern Ventures invested at a later stage, the fund will set up
milestones related to key business lines and revenue projection
100% more carry if they meet milestones around hiring and
investing in black founders.

Page 16 of 24 Oct 11, 2022 - Lantern Ventures Fund I Initial Rating

 FIRM

Operations
"empty" LP Comms
• $250k-1M ticket size investing in ~21 seed to • Quarterly, Lantern generates an Impact
series A companies.
Report derived from sections in their memos.

• Stated DE&I Policy.

• End of the DD process they build a KPI
• They will perform “Real Assessment” on all document.

portcos, to look at how the founder views the • Lantern shares metrics with the founders to
social mission of their company. feedback, and use that to create the quarterly
report.

Branding LP Co-invest Opportunities

• Chris co-hosts “In your Ears” Podcast and is • Up to 40 basis points in shared carry for
the author of “I’ll Make You Money, Trust Me”
founders who hit predetermined milestones.

• Thought leadership (Yeehaw finance, • 100% more carry if they meet milestones
CompCrunch, and more)
around hiring and investing in black founders.
• Weekly newsletters to an 8,000+ audience
that has a 51% average open rate.

Page 17 of 24 Oct 11, 2022 - Lantern Ventures Fund I Initial Rating

 TRACK RECORD ANALYSIS

Page 18 of 24 Oct 11, 2022 - Lantern Ventures Fund I Initial Rating

 TRACK RECORD ANALYSIS

Page 16
19 of 20
24   July 26th, 2022 - Oct
Regneration.VC Initial Rating
11, 2022 - Lantern Ventures Fund I Initial Rating
 ILPA ODD

No

 
Yes

Yes

 
Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Page 16
20of
of20
24  July 26th, 2022 - Oct
Regneration.VC Initial Rating
11, 2022 - Lantern Ventures Fund I Initial Rating
 ILPA ODD

Page 16
21 of 20
24   July 26th, 2022 - Oct
Regneration.VC Initial Rating
11, 2022 - Lantern Ventures Fund I Initial Rating