10x Founders GmbH

Brienner Str. 21

D-80333 München

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Managing Directors: Dr. Claudius Jablonka and Jan Reichelt

Contact: info@10xfounders.com

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Register Entry: Amtsgericht München - HRB 259670

VAT identification number in accordance with § 27a of the German Value Added Tax Act

(Umsatzsteuergesetz): DE340823788

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Competent Supervisory Authority:

‍Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) with offices in

Graurheindorfer Straße 108, 53117 Bonn

as well as Marie-Curie-Str. 24-28, 60439 Frankfurt am Main

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Internet: https://www.bafin.de

Email: poststelle@bafin.de

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Please note that this website does not address consumers or retail investors.

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Key information Document / Basisblatt in accordance with EU regulation no 1286/2014

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Processing of data

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Due to our statutory obligation under § 5 para. 3 of the German Telemedia act (Telemediengesetz) 10x Founders’ website contains information which makes it possible to contact our company quickly in electronic form and to directly communicate with us. If you decide to contact us, for example via e-mail, the personal data you transmitted is automatically stored in order to process your request. The legal basis for such processing and storage is art. 6 para. 1, lit. c) of the EU General Data Protection Regulation. Under the EU General Data Protection Regulation, you are entitled to request which communication we process and have stored, or to request to delete any communication you sent us, or to restrict processing and storing of such communication.

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Disclaimer

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1. Accountability for content
   The contents of our pages have been created with the utmost care. however, we cannot guarantee the contents’ accuracy, completeness or topicality. according to statutory provisions, we are furthermore responsible for our own.
2. Accountability for links
   Responsibility for the content of external links (to web pages of third parties) lies solely with the operators of the linked pages. No violations were evident to us at the time of linking. Should any legal infringement become known to us, we will remove the respective link immediately.
3. Copyright
   Our web pages and their contents are subject to German copyright law. Unless expressly permitted by law (§ 44a et seq. of the copyright law), every form of utilizing, reproducing or processing works subject to copyright protection on our web pages requires the prior consent of the respective owner of the rights. Individual reproductions of a work are allowed only for private use, so must not serve either directly or indirectly for earnings. Unauthorized utilization of copyrighted works is punishable (§ 106 of the copyright law).
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SFDR Disclosures

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Disclosures pursuant to the Sustainable Finance Disclosure Regulation (EU) 2019/2088 (“SFDR”)

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1. Art. 3 – Sustainability Risks
   Sustainability risks are environmental, social or governance events or conditions, the occurrence of which could have an actual or potential material adverse effect on the value of the investment. 10x Founders GmbH (“10x”) considers sustainability risks as part of the due diligence process prior to any investment. This also includes an assessment of sustainability risks. The results of such assessment are considered on a non-binding basis when the investment decision is taken. However, 10x remains free in its decision to refrain from investing or to invest despite sustainability risks in which case 10x can also apply measures to reduce or mitigate any sustainability risks. At all times, 10x will apply the principle of proportionality taking due account of the strategic relevance of an investment as well as its transactional context.
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2. Art. 4 – No consideration of sustainability adverse impacts
   Art. 4 SFDR provides for a framework aimed at achieving transparency with regard to any adverse impacts of investment decisions on sustainability factors as defined in the SFDR. For this purpose, financial market participants such as 10x must disclose certain information (in the future, taking into account the Regulatory Technical Standards (RTS)). Currently, at 10x we believe that the information provided to us by our portfolio companies in relation to the investments is not yet sufficient (in particular with a view to the future RTS) to meet those reporting requirements. Accordingly, as of now 10x does not yet take into account any adverse impact of investment decisions on sustainability factors as specified in the SFDR. However, 10x will monitor developments with regard to available information and evolving market practice, if any, and reasonably consider disclosing the information required by the Art. 4 SFDR-framework (including the future RTS) once sufficient information flow can be ensured and a reasonable market practice has been established.
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3. Art. 5 – Renumeration Policy
   As a registered alternative investment fund manager within the meaning of section 2 (4) of the KAGB and a manager of a qualifying venture capital fund as defined in article 3 (b) of the EuVECA Regulation, 10x does not have, and does not need to have, a remuneration guideline or policy in accordance with the requirements of the KAGB or the EuVECA Regulation. Sustainability risks are not considered with respect to the determination of the remuneration.
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4. Art. 10, 8 SFDR – Product Disclosures

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Summary

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10x considers certain environmental and social characteristics as part of its investment decisions but does not seek to make sustainable investments as defined in the SFDR. The consideration of environmental and social characteristics is carried out both before and after the investments. For this purpose, information is regularly obtained from the portfolio companies by means of qualitative queries. 10x incorporates investment exclusions (negative screening) during its decision-making process.

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No sustainable investment objective

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This financial product promotes environmental or social characteristics, but does not have as its objective a sustainable investment.

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Environmental or social characteristics of the financial product

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This financial product promotes environmental and / or social characteristics by implementing certain investment exclusions. The Fund does not invest in portfolio companies whose business include:
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• Performing research and innovation activities considered as illegal in Germany;
• Any economic activity considered as illegal in Germany;
• The production of, and trade in, tobacco, distilled alcoholic beverages and related products;
• The financing and production of, and trade in, weapons and ammunition of any kind;
• Casinos and equivalent enterprises (with, for the avoidance of doubt, the exception of gaming and e-sports);
• The research, development or technical applications relating to electronic data programs or solutions, which aim specifically at: (i) supporting any activity considered as prohibited sectors; (ii) pornography; or (iii) are intended to enable to illegally (A) enter into electronic data networks; or (B) download electronic data.
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Investment strategy

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10x Founders Fund GmbH & Co. KG (hereinafter the “Fund”) will conduct investments in Portfolio Companies in the digital tech sector with innovation capacity and growth potential, including, but not limited to, software, AI, data, robotics, platforms, marketplaces, consumer and hardware with software components. As such, investments are expected to be spread across a wide range of economic activities. The Fund intends to make its initial investments in the early stage, i.e., pre-seed, seed and series A rounds. The Fund’s ESG approach comprises part of its investment strategy, which is consistently applied for every portfolio company investment.

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Proportion of investments

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The Fund will invest fully in line with its investment strategy and investment restrictions. The Fund will not invest a portion of its capital in any other asset class.

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Monitoring of environmental or social characteristics

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10x has an increased awareness of the impact of sustainability risks on risk management and thus on the value potential of investments. 10x consults with the companies on an ad-hoc basis and will carry out further checks if there are indications of potential issues with the Fund’s exclusion criteria. External monitoring mechanisms are not provided.

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Methodologies

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Currently 10x applies qualitative assessments with regard to environmental or social characteristics. We conduct our initial assessment in the course of our due diligence. An initial assessment is conducted in the course of the due diligence. Such assessment takes the form of a questionnaire which we ask our portfolio companies to complete.

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Data sources and processing

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The checklist is completed by the portfolio companies. An external review or verification of the information obtained will only be carried out if misrepresentations are suspected.

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Limitations to methodologies and data

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The information collected via the due diligence for the Fund is externally verified only if and to the extent misrepresentations are suspected. Thus, it cannot be ruled out completely that false information may remain undetected in certain cases. As the Fund’s investment is made for several years, 10x considers it a priority to establish and maintain a trustful working relationship with the Fund’s portfolio companies in order to ensure compliance with the restrictions described in this section.

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Due diligence

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An initial assessment of how an investment relates to these requirements is carried out as part of the due diligence process. As a rule, purely qualitative statements of an ecological or social nature or relating to corporate governance are requested from the portfolio companies and then taken into account in the investment decision-making process.

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Engagement policies

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10x decides at its sole discretion whether or not to make an investment based on principal adverse impacts on sustainability factors and may include risk mitigation measures where appropriate.