What We Are Doing

Lighthouse One, Inc. is a creating an investment platform to bring investors in opportunity zones together with investable projects – both real estate and operating businesses. The platform enables investors to match their exact investment needs in terms of geographies, risk profile, expected return, and investment thesis with projects available; it also supports syndication of deals and creation of diversified portfolios.

The Tax Reform Act of 2018 created 8,700 Opportunity Zones throughout the country and established pathways for investors to reduce, defer, and eliminate their capital gains while investing in their communities. The legislation has widespread bi-partisan support, as it enables money to flow into communities that traditionally are either very low- income -or- otherwise do not get their fair share of investment dollars. Some of the communities are downtrodden with great potential e.g. Birmingham AL; others are high performing e.g. all of Portland OR is an Opportunity Zone.

Key Finding

While the tax benefits to potential investors is significant, many high potential investors are sitting on the sidelines. The root cause here is program architecture coupled with a mismatch between what investors want to invest in and the early investment projects available.

To get investors off the sidelines and making OZ investments, we will target the technology and crypto elite who live and work in San Francisco, New York, and Puerto Rico. The real momentum in the OZ market will come by reducing friction for these investors and making high-quality investments available to them that match their investment needs. While the OZ program has been interpreted as supporting investment in real estate, the most compelling benefits to investors come from investing in operating businesses.

Reducing Friction

The OZ program was architected in two parts. A relatively shallow incentive that defers and forgives up to 15% of capital gains achieved today; the more compelling benefits happens on the back end with a 100% elimination of capital gains on the investment in an Opportunity Zone so long as you invest for 10 years.

The only way to unlock these tax benefits is to invest through a Qualified Opportunity Zone fund.

Many family offices and high-net worth individuals do not want to put their money to work through a traditional OZ fund, preferring to trust their own judgment (¡°Do it Yourself¡±) as to what to invest in versus relying on the judgment a first-time fund manager (¡°Do it For Me¡±). When they invest, tech and crypto investors want to syndicate deals to reduce their exposure to any one deal. Also, they want someone else to handle the very real compliance headache needed to unlock the tax benefits. (Lighthouse One will handle all of this plus the creation of diversified portfolios on its platform.)

Technology and crypto investors often seek to invest for transformative change in industries and communities and therefore invest for a higher risk/return profile. Most OZ Funds target low-risk investments with steady returns – primarily real estate - which is a mismatch with the technology-and crypto investors we intend to target.

We will exploit this mismatch by creating an investment platform that will enable do-it-yourself accredited investors to invest $50,000 or more in a set of highly-curated projects – both real estate and operating businesses -- that qualify for OZ tax treatment.

Lighthouse One intends to reduce barriers and enable investors to put their money into OZ projects while developing a community of conscious, active investors, and projects that can take the lead in the OZ ecosystem, complimenting existing mechanism and reducing friction across the OZ landscape.

We also believe our offering will have great appeal to family offices and private capital across the country that seeks to make systematic change in communities but so far are not being offered projects with an underlying theory of change or achieving scale.

Angel List as a Model

Lighthouse One, Inc. is modeling its business model on the success of Angel List. Like Angel List, we will take a syndication fee from project owners to list and market the project on the Lighthouse One, Inc. In addition, we charge investors a compliance fee and take 5% carry on deals financed through our platform. Larger deals will be handled as 2/20% funds where we act as principals in raising money.

The types of deals we are interested are those that can lift up a community based on an investment thesis that real estate ALONE is not sufficient to lift up the type of lower-income communities that have been declared as Opportunity Zones. In addition to real estate, communities need investment in infrastructure and in the types of companies that can create jobs and build up its talent base:

¡¤         businesses with fixed-place capital investments such as solar/distributed energy, data centers/broadband, urban agriculture

¡¤         advanced factories serving regional markets including those that disrupt the cost equation of housing and construction

¡¤businesses with scalable operational expertise fundamental to all community development such as workforce development/training

Ultimately, our goal is to build value for investors in Lighthouse One by creating primary demand for these types of investments while encouraging experimentation with new methods of financial innovation and community wealth building.

COMPANY OPERATIONS

Lighthouse One, Inc. operates as a Qualified Opportunity Zone business with offices in San Francisco (Excelsior District), Portland, and Los Angeles (West Hollywood).

We are seeking $1.0 - $1.5M in angel financing plus $6.0 - $7.0M in a Series A. Proceeds will be used to build out a team of professionals to vet deals, create a network that will refer both investable projects and investors to us, and to support both customer acquisition and compliance. Spending on technology will be light initially as we will rely on an outsourcing model. This – by the way – is the exact way Angel List got its start, outsourcing much of its technology to Assure.

Initial financing comes from Unicorn.vc, an angel investment fund based in Puerto Rico; Puerto Rico has become home to some 1,500 crypto billionaires and millionaires due to its favorable tax treatment. Also, Puerto Rico is offering an additional 15% shelter on capital gain – over and above that offered by the federal program.

Executive Team:

▪                   Peter Hirshberg – CEO* - ex Apple Computer, respected Urbanist, enterprise software guru

▪                   Marcia Kadanoff – President/COO* - ex Apple Computer, respected technology executive, former agency

principal

▪                   Christopher Petzel – Chief Investment Officer* - ex Houlihan Lokey investment banker, expert in structured

finance

▪                   Stephen Brooks – SVP/Chief Compliance Officer – director of Portland OZ initiative, expert in community

development

▪                   Nick Burnett – VP Business Development

▪                   Barry Watkins – VP Business Operations*

Advisors:

▪                   Brock Pierce – Founder, Unicorn.vc; access to the crypto elite

▪                   Steve Glickman - Coauthor of the Opportunity Zone legislation, respected consultant

▪                   Novogradac – Leading accounting firm in the OZ ecosystem

▪                   Chris Flannery - Security Law

*Company founders.

For More Information

Peter Hirshberg CEO & Co-Founder (917) 678-3446

peter@lighthouse.one

Marcia Kadanoff President/COO & Co-Founder (650) 270-4309

marcia@lighthouse.one

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