2020/21

IMPACTREPORT

Message from Artesian’s Founders
LINKING03

Impact Forward

05

Portfolio Impact

09

Advancing Gender Equity

33

Creating a Sustainable Future

45

Diversity, Equity and Inclusion at Artesian

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CONTENTSARTESIAN IMPACT REPORT 2020/21

Message From Artesian’sFounders

PlanetWhen the long-term health of the planet is prioritised,
everyone benefits. Artesian believes that innovation andtechnology have a deflationary effect on the cost of
infrastructure required to address critical global issues
like climate change. Innovation and technology can also
ensure a rapid and scalable delivery of solutions, given
the existing time constraints, to mitigate climate crisis.

Artesian was founded on the belief that innovation in
finance and technology can help solve the planet’s major
challenges. Over time, by collaborating with like-minded
employees, investors, partners and communities, we canestablish a virtuous cycle of positive outcomes for all
stakeholders, help to drive sustainable change and makethe world a better place.

Product

Artesian’s products are developed through building a
deep understanding of market failures and the investors
motivated to address them. As financial market experts,
we design products that address the challenges andopportunities presented by these market failures,
generating impact and optimising financial returns.

ProfitHH

Profit is a downstream result of successfully addressing
critical global challenges. While profit alone is a hollow
outcome, when combined with renewability, equality andscalability, it ensures sustainability. Artesian believes thatsustainable outcomes deliver profits that can be reinvested to ensure the continuation of virtuous cycles.

At Artesian, the 5Ps that drive our actions are:PurposePeople03

By investing for purpose, we are accountable for boththe financial and impact outcomes of our investment
decisions. It is critical that both the financial and impact
outcomes are measurable and that we report themtransparently.

Our inaugural impact report is looking to provide a baseline from which to build. It is
produced to provide our stakeholders with transparency and accountability forwhat and who we are investing in and how we are trying to move capital for
purpose.

Artesian is only as good as its people, and our successdepends on an ability to attract and retain a diverse
team that aligns their unique talents to a shared vision.
Externally, our approach is reflected in the selection offounders, teams and companies in which we invest.
Diversity, social equality, governance and economic
empowerment are our key areas of focus.

John McCartney

Jeremy Colless

Matthew Clunies-Ross

Founding Partner

Founding Partner

Founding Partner
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impactforward05

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07 Impact Forward

The COVID-19 virus brought about unprecedented disruption acrossall business sectors causing an ongoing period of global uncertainty
and displacement. This cast a harsh light on how many of our systems
failed to support those who were made most vulnerable by this virus.
The asymmetrical impact of this crisis means the next few years will
be very challenging for those most impacted, and we must ensurethat we are investing in a sustainable and resilient recovery for all. The
COVID-19 crisis accelerated global digitisation and is forcing
businesses to reconsider what the future looks like as previous cycles
are irrelevant to the new paradigm. The short and medium term is
now set for a sustained period of disruption and innovative responses
to recurring long term challenges such as climate change and social
justice issues.
Harnessing imagination and innovation, the global economy is looking
to create new meaning and define better ways of doing business. The
scope for creativity is endless – from business models that are morecollaborative to experiences that are more immersive, to technology
we can utilise for change, and policies we can adapt for the benefit ofall.
2021 has been about creating new maps to help us uncover what’s
yet to come, and planning a route to the world we want to live in.
We’re all exploring, which is creating a safe space for experimentation,
prototyping, and learning.
Together, we need to think outside the box and be more collaborative
when it comes to dealing with global challenges. It is from this spiritthat we send this impact report out into the world - we aim to betransparent, not perfect. As business calibrates to the postpandemic world, we will update our stakeholders on our internal
metrics in our next annual impact report.
At Artesian, we hold our portfolio companies, issuers and supply chain
partners to high standards. As such, we endeavor to use a similaryardstick when we measure our own progress. Last year was aturning point for us as a firm, as we started to rethink the way wework, communicate and think about industry disruption.

OUR COMMITMENT

Stewardship in a Post-Pandemic World
Artesian
aims toachieve
net zerocarbonemissions
across ouroperations
by 2030¹

Themes for ourinaugural impact
reportCreating a sustainable future

We also committed to leaning deeper into our role as responsible
investors, questioning investee companies at the earliest stages of acompany's life cycle (VC) right through to investment grade
corporations on their role in the environment, their influence on supply
chains as well as their diversity, equity and inclusion commitments.
Through our dialogue with management teams, we seek to impress
on our investee companies that focus on sustainability and inclusivity
is a business imperative. By weaving environmental, social andgovernance concerns into everyday conversations, we hope to seedchange in mindsets - and budgets.
While we take great pride in the platform we're building at Artesian becoming more inclusive, equitable, sustainable in how we recruit,contribute to the wider community, and build products - there is still along way to go. We believe it's important to hold ourselves
accountable, to be bold in our commitments, and to share our impact
journey with a spirit of transparency.

Vicky Lay

Mei LeePartner, Head of
Impact Investing

Partner, Head ofOperations

Advancing gender equity
Active engagement¹ Supply chain disruptions of the pandemic have realigned general operatingprocedures which may not be the normal course of business once the pandemic
has passed. We will update stakeholders on our internal environmental footprint
once we are confident the business has re-calibrated to the new normal.
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portfolio
impact09

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11 Portfolio ImpactNH

Our contribution to the global sustainable development goals.
Our work directly contributes to filling the funding
gap for 15 out of the 17 Global Sustainable
Development Goals.

We connect capital to innovative
solutions for improved outcomes forpeople and the planet.
Artesian leverages our extensive global markets investment
experience across the capital structure (from early-stage VC topublic debt markets) to deliver impact at scale.
We build collaborative partnerships with complementary, like-minded organisations to deliver
sustainable outcomes. We believe that innovation, with technology as a key facilitator, canhave a sustainable deflationary effect on the cost of infrastructure required to address criticalglobal social and environmental issues.

VENTURE CAPITAL

108 Female
Founded Startups

FIXED INCOME

funded across our VC funds
since inception (companies
with at least 1 female
founder as at 31 Dec 2020)

In 2020, our investments in green, social &sustainable issues increased by 231%.

The graph below represents the venture capital
investments held across Artesian’s thematic funds,
notionally weighted versus their targeted Sustainable
Development Goals (SDGs), as at 31st December 2020.

The graph below represents the combined green, sustainable and social bonds held within theArtesian Green & Sustainable Bond Fund and the Artesian Corporate Bond Fund, notionallyweighted versus their targeted Sustainable Development Goals (SDGs), as at 31st December 2020.

3,730
TCO2E
or metric tonnes ofcarbon abated byArtesian green &sustainable fixed income
investments

1749

Equivalent number of cars
off the road for a year

CLIMATEIMPACT
BY THENUMBERSIn 2020, our investments in
SDG-linked startups, scaleupsand solutions grew by 91.90%.

1,607.5
TCO2E
or metric tonnes ofcarbon abated by Artesianclean energy VC portfolio
companies

753
Equivalent number of cars
off the road for a year*all figures as at 31 Dec 2020
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2.1
Fixed
IncomeFixed Income“Our fixed income exposures are designed to fund those companies thatare the best corporate citizens – ones that generate wealth and create
positive benefits to society. By selecting a portfolio of bonds from thosefirms that are striving to invest in their people, reduce their impact on theenvironment and confront inequality – investors can pursue impact at
scale.”- John McCartney, Founding Partner & Head of ESG

Artesian is a boutique credit specialist that understands impact can be achieved at scale withoutcompromising on returns or liquidity. We see Environmental, Social and Governance (ESG) issues as
an integral part of credit risk – and that investing in impact reduces income volatility and provides
greater risk-adjusted returns.
Artesian believes that analysing ESG characteristics enhances traditional credit analysis by providing
a fuller understanding of the risk profile of each issuer.
In spite of the logistical challenges caused by Covid-19, we saw increased investor interest in ESG
strategies.

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Australian Corporate Bond Fund
The Artesian Corporate Bond Fundcontinues to enhance and incorporate ESG
analysis into the investment decision
making of securities held within the Fund.
With a bias towards green, sustainable
and social bonds, the Fund was
encouraged by the AUD labelled bondissuance in Q3 and Q4 2020.

High Impact Green Debt Fund
In 2020, we also secured seed investor
commitments for our USD High Impact
Green Debt Fund (HIGDF), which is a world
first in combining liquid, publicly tradedgreen bonds with private market venture
debt of clean tech companies. We
anticipate the launch of the HIGDF in H2
2021.
The Fund’s mission is to displace the maximum amount of carbon (current andfuture) while ensuring capital protection and the highest rate of return possible.
The dark green bond allocation addresses the resilience of existing
infrastructure; while the venture debt allocation addresses innovation that will
circumvent obstacles to the roll out of the green economy.

Launch of the Green & Sustainable Bond FundIn Q3 2020, we successfully launched the Artesian Green & Sustainable Bond Fundwhich is Australia’s first corporate focused, green and sustainable bond fund open towholesale and retail investors.

Women's Economic Empowerment Bond FundIn May 2020, Artesian launched an impact
partnership with the United Nations Capital
Development Fund (UNCDF) to create the
Women’s Economic Empowerment Bond
Fund (WE Fund) that invests in liquid debt
securities of best-in-class corporates with
progressive gender policies and governance.

While the Fund addresses women’s equality in public markets, one-third of
the management fee will be donated to support Impact Partnerships in orderto further the Fund’s mission to bridge global economic gender gaps andtackle women’s empowerment in private markets.

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Artesian’s ESG Investing
Approach
Environmental, Social and Governance(ESG) investing incorporates a broad
range of information regarding impact, risk
and opportunities into investment analysis
and investment stewardship processes.
For credit fixed income investing –especially in the investment grade space,
where yields are low and spreads are tight– understanding ESG factors is a criticalpart of the process to maximise
investment performance and avoid “fattail risks” associated with large one-off
losses. Through applying ESG frameworks
in a determination of the materiality on acompany’s future performance andimpact, Artesian is reducing the risk andimproving risk-adjusted returns.

At Artesian, we strive toovercome the shortcomings oflack of universal ESG impact
standards and frameworks
through a well-defined andcomprehensible impact
assessment process. Not only
do we combine independent
publications with data scrutiny,
we endeavor to engage issuers
through dialogues when possible(and when in doubt) to ensurethat we provide an unbiased
impact assessment of ourinvestments.”- Dylan Er
Senior Investment
Analyst"From a credit perspective, innovation alone doesn’t translate to longterm corporate success. It must be married to a strong set of ESG
principles in order to extend or maintain a firm’s competitive moat.
Identifying companies that successfully embrace both is part ofArtesian’s investment risk discipline.”- Kurt Tan
Managing Direct or, US Fixed Income

What is unique
to Artesian?
Artesian sees the rise of
responsible investing as afurther catalyst for increased
interaction between
traditional public credit andemergent venture capital
markets. As large
corporations track and reporton industry specific ESG
issues, they are generating
increasing amounts of
information and data
regarding key challenges andmarket failures.
This data can be utilised bystartups to inform
development of technologies
to meet ESG goals andsocietal expectations.
Corporations may work withnimble startups to adopt
these new approaches tocritical challenges or ignore
progress and face existential
risk from industry disruption.
Traditionally, investment
grade credit risk has been
asymmetrically skewed, with ahigh probability of receiving
coupons and a small
probability of capital loss. In
contrast, venture capital ischaracterised by a power law
distribution of outcomes,

15with a handful of portfolio
companies providing the
majority of positive outcomes,
and a large number of startups
failing.
More recently, the sheer speed
at which startups are able toscale and disrupt incumbent
companies has introduced new
dimensions of opportunity andrisk that are ignored atinvestors’ peril.
Artesian believes that theunique advantage of investingin both developed debt andearly-stage venture capital
markets is a multi-dimensional
understanding of risks andopportunities. By calibrating
insights from both markets,
through an ESG lens, Artesian iscreating new, forward-looking
products for responsible
investing.

“Artesian employs a “barbelled” approach to investing
through a combination ofventure capital and fixedincome. The firm’s expertisein venture capital and fixedincome along with its global
footprint, provides Artesianwith a differentiatedperspective on global
markets and the influence of
one asset class on theassessment of risk inanother."- Mark Bytheway
Director, ESG Research

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Impact Case Study“The UN’s Sustainable Development Goals offer a pathway to a better,more sustainable future for everyone. They are our blueprint to tackle
planetary challenges, such as climate change, poverty, global health,inequality, justice and peace.”

Artesian’s Australian Green & Sustainable Bond Fund
Artesian’s Australian Green & Sustainable Bond Fund invests in a diversified portfolio of
liquid, investment-grade fixed and floating rate green, sustainable and social corporate
bonds. It is the first Australian “true to label” green and sustainable bond fund available toretail investors.

- Matthew Clunies-Ross, Founding Partner &Australian Green & Sustainable Bond Fund CIO

Examples of securities targeted for investment for the Artesian Australian Green &Sustainable Bond Fund include:
The graph below represents the combined green, sustainable and social
bonds held within the Artesian Green & Sustainable Bond Fund and theArtesian Corporate Bond Fund, notionally weighted versus their targeted
Sustainable Development Goals (SDGs), as at 31st December 2020.
Through these two funds, we currently support 13 of the 17 SDGs, withthe goal of supporting all 17 as the funds grow.

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Venture Capital

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Agriculture Tech & Food Innovation - Sustainable Food Security

Portfolio Impact"A key differentiator of our investment strategy is the ability to deploy capitalfrom early (seed to Series A) through to late-stage (Series B to exit). As one of
the region’s most active early-stage investors, our platform allows us broad
access to those new, disruptive ideas that are taking on some of society’s biggest
challenges."

As at 31 Dec 2020, we have made investments in 67 agriculture technology andfood innovation companies since inception, with 16 new portfolio companies
added during 2020.

"Agrifood technology investment represents a mechanism totransform our global food production system by delivering
greater outputs with fewer inputs, helping to address key
environmental and social challenges associated with feedinga growing global population."- Robert Williams, AgTech Director- Luke Fay, Partner & Head of Venture Capital

MedTech & HealthTech - Global Health
As at 31 Dec 2020, we have made investments in 84 in MedTech and
HealthTech companies since inception, with 15 new portfolio companies
added during 2020.
Artesian has focused on 4 key areas of venture capital investment that capitaliseon the global megatrends of climate change, food security, aging demographics andethical & inclusive frontier technologies, in Asia-Pacific, the fastest growing economic
region:• CleanTech"Artesian has prioritised MedTech and HealthTech as a vertical of
focus, as we believe these sectors will experience significant macro
tailwinds over the coming years and presents the firm with theopportunities to achieve compelling returns both from a financial
and impact perspective."• Agriculture Tech & FoodTech- Rohan Gray, Portfolio Manager, MedTech• MedTech & HealthTech• Artificial Intelligence (AI) & Robotics

AI & Robotics - Ethical & Inclusive Frontier Technologies
CleanTech - Climate Change
As at 31 Dec 2020, we have made investments in 63 ClimateTech andclean energy companies since inception, with 18 new portfolio companies
added during 2020.

"Artesian's ClimateTech fund is filling a gap in funding at the early stages ofclean technology development. This funding is crucial in ensuring Australia
commercialises the technologies that enables our economy to move to net
zero emissions. Without such investment we potentially lose ourcompetitive advantage to other countries, or this technology is lostaltogether."

As at 31 Dec 2020, we have made investments in 33 artificial intelligenceand robotics companies since inception, with 10 new portfolio companies
added during 2020.

"Artificial intelligence is the revolutionary technology of ourlifetimes and we are only at the very beginning of AI
applications. AI is already a large growing industry at$38bn per year in spending, forecast to be worth $22tn
to the world economy by 2030. The Boab AI Scaleup
Program, set up by Artesian and LaunchVic, has invested
in 5 scaleup AI companies since launching in 2020."- Andrew Lai, Director, BoaB AI- Ali Clunies-Ross, Portfolio Manager, CleanTech

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Shaping the Future of
Venture Capital

Building the impact innovation ecosystem
across the Asia-Pacific.
By Jeremy Colless

Artesian believes that the future of VC will:• be driven by investors looking for strategic as well as financial returns, withmore funding to disruptors who can generate positive outcomes for societythat are also commercially attractive• have an increased focus on technology that can have a sustainabledeflationary effect on the cost of infrastructure required to address criticalsocial and environmental issues• require collaborative partnerships and increased connectivity between
innovation ecosystem participants including government organisations,
corporations and industry groups, universities & research institutes,
accelerators, and incubators to achieve sustainable outcomes at scale• identify market opportunities where Environmental, Social and Governance(ESG) analysis indicates a market failure and/or industry or incumbent
vulnerabilities

Artesian is building for the future of VC by:• developing funds that deliver impact without sacrificing financial returns.
Funds developed with these dual drivers include the Artesian Clean Energy
Seed Fund & Female Leaders VC Fund
• investing in innovative, high-growth software and hardware startups working
to develop technologies that help solve the world’s critical environmental
and social challenges• building early-stage innovation ecosystems via collaborative partnerships
with organisations including; GRDC (GrainInnovate Fund), South AustralianGovernment (SAVC Fund), LaunchVIC (Boab AI), CEFC and ARENA (Clean
Energy Seed Fund), Coca Cola Amatil (AmatilX Fund)• developing funds that address market failure e.g., Female Leaders VC Fund
(FLF VC), which tackles gender inequality by investing in female-foundedstartups across Asia-Pacific• benchmarking and reporting on diversity in startup founders, management
and boards e.g., Artesian Gender Diversity Criteria Assessment Score(GDCAS) is an ecosystem reporting tool
• developing Venture Capital as a Service (VCaaS) to assist corporates to
outsource their early-stage VC investment activities and allow them to build
broad ecosystem participation.

• favour entrepreneurs who create more inclusive business models as acompetitive edge against incumbents and use technology to bring down
barriers to catalyse positive change

Jeremy is a Founding Partner and CEO of
Artesian. In 2009, Jeremy established Artesian's
VC business which has grown into Australia's
largest and most active seed-stage VC firm.

• see greater activation of corporate venturing strategies investing in
ventures that generate positive externalities for stakeholders and society.
Jeremy Colless

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Responsible Venture Capital: ESG Practice in
Early-Stage Tech Investing
By Luke Fay and Vicky Lay

The Venture Capital (VC) industry has
trailed other asset classes in the adoptionof Environmental, Social and Governance(ESG) practices, despite a growing bodyof evidence pointing to the materiality of
ESG factors in assessing risk andopportunity at the early stage.

The Materiality of ESG Factors
in the Tech Sector
One only need look at the significant loss
in valuation for WeWork due togovernance problems, or the reputational
damage suffered by delivery and ridesharing apps such as Uber and Lyft over
the rights of workers in the gig economy,
to see that ESG issues can be material torisk/return considerations.
Theranos, a late-stage venture that wasforced to file for bankruptcy due tounderlying technological integrity issues, isan example of the significant impact onfinancial returns to investors, highlighting
the need to develop new mechanisms to
uncover and mitigate ESG risks earlier.
Deliveroo's poor stock market debut lastyear was also given the cold shoulder bysome of the U.K.'s largest fund managers
due to ESG concerns. Dual-class sharestructures that undermine shareholder
rights and the poor working conditions ofdrivers were cited as reasons for avoiding
its initial public offering.
The coronavirus pandemic has also put
more companies under scrutiny fordecisions and practices that impact
employees, customers, and society. As aresult, ESG factors have become
established as a key layer of diligence inevaluating investments.

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1 "Sustainability Signals: The Individual Investor Perspective," Morgan Stanley
Institute for Sustainable Investing, 2017(https://www.morganstanley.com/pub/content/dam/msdotcom/
ideas/sustainable-signals/pdf/Sustainable_Signals_Whitepaper.pdf;
accessed on 1 Dec 2020) 2 "Responsible Investing in Tech and Venture
Capital," Harvard Kenedy School Belfer Center for Science and International
Affairs, 2020 (https://www.belfercenter.org/sites/default/ files/202009/ResponsibleInvesting.pdf; accessed on 29 November 2020)

Consumers too are becoming increasingly
discerning about company decisions andpractices, especially millennials. This ‘ESG
Effect’ on consumer preferences is real. A
study by Morgan Stanley’s Institute for
Sustainable Investing found thatmillennials are twice as likely as the overall
population to buy products fromsustainable businesses.¹ In a 2017 study
by Optimy, 60% of customers said they
were willing to pay more for products
from companies with reputable brands
and good values. This is a significant
consideration for any startup, given the$30 trillion wealth shift from baby
boomers to millennials expected over the
next 30 years.

Furthermore, early-stage investors must beaware of the possible public purpose
challenges posed to society throughsupporting associated frontier technologies,
such as brain-computer interfaces, AI, or
gene editing – all with broad-ranging
potential for disruption.
In 2018, hundreds of organisations signed“The Paris Call for Trust and Security in
Cyberspace”. In 2019, the biggest social
media companies signed the “Christchurch
Call” to help “eliminate terrorist and violentHextremist content online.” And in Nov
2020, dozens of companies signed the“Tech for Good” call, including Sundar
Pichai from Alphabet (Google), Mark
Zuckerberg from Facebook, Brad Smith
from Microsoft, Evan Spiegel from Snap
and Jack Dorsey, the CEO of Twitter andSquare as well as Cisco, Doctolib, IBM,
OpenClassrooms and Uber.

ESG Integration & Active
Ownership in VC
At Artesian, we seek to adopt an active not passive - approach to ESG and arecommitted as signatories of the UN
Principles of Responsible Investment.
While we have high conviction that you can"achieve transformational impact without
sacrifice compelling risk/return metrics",
we realise the need for ongoing research,
analysis and education when it comes to
ESG in practice, particularly in private
markets.

In addition, employees who are moresatisfied are more engaged, which has amaterial impact on company
performance and the broader culture ofan organisation. In a 2019 Gallup study,
workers in the top quartile for employee
engagement outperformed those in thebottom quartile across a range of metrics,
including customer ratings, productivity,and profitability. In the Optimy study, 71%
of millennials said they would choose towork for a company that has
demonstrated a strong commitment to
its community.

Despite the lack of ESG frameworks for VC
investments and the additional complexity
for early-stage companies, we see theguiding principles are the same in any
asset class. Leveraging our experience inthe public fixed income markets, we have
implemented impact data collection and
ESG engagement protocols with ourinvestee companies and we look forward
to reporting on our progress. Stay tuned
as we share our journey.

The Need for Responsible
Investing at the Early Stage
Although venture capital is consideredamong the highest risk forms ofinvestment, the industry does not yet
have a widely accepted, systematic
approach to ESG or societal risk
management embedded in theinvestment process.
In its “Responsible Investing in Tech andVenture Capital” paper, the Harvard
Kennedy School’s Belfer Center for
Science and International Affairs assertsthat there is a new level of urgency forearly-stage investors to evaluate andmanage the impact of frontier (or new)technologies on society.2

N

Luke Fay

Luke is a Partner andHead of Venture Capital
at Artesian. He runs theAustralian Venture
Capital Business withprincipal portfolio
management
responsibility for each ofArtesian’s VC funds.

Vicky Lay

Vicky is a Partner andHead of Impact Investingat Artesian. She isfocused on directing
capital, innovation &human endeavour
towards positive socialand environmental
outcomes.

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Soil Carbon Co.

5B

Using the world's smallest organisms tosolve the world's biggest problem. Soil
Carbon Co. is developing new microbial
technologies to unlock the potential ofsoils to pull down atmospheric carbon.

5B is reinventing solar energy from theground up. They are a team ofrenewable energy experts who careabout making solar projects lower cost,faster and smarter.

Portfolio Impact

Impact Case Studies

Soil Carbon Co.
soilcarbon.co

TurtleTree LabsRegrow

A biotechnology company pioneering thetechnology to produce human milk for all
humans through cells to do so. Their
purpose: to nourish our people andprotect our planet in the mostsustainable way possible.

Unlocking the profit potential of resilient
agriculture. Agriculture has the power toreverse climate change. Regrow
combines the industry-leading expertiseof FluroSat and Dagan to drive resilient
agriculture adoption across the supply
chain.

1 Billion
TonnesN

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Business Challenge
Soil Carbon Co. is a group of
farmers, scientists andentrepreneurs with adedicated mission to
improve soils and mitigate
climate change.
They are tacking two
prevailing sustainability
challenges: 1) too much CO2
in our atmosphere, and 2)
too little carbon in our soils.

Solution Delivered
Soil Carbon Co. isdeveloping products tocapture carbon from theatmosphere on a gigatonne
scale and return it to thesoil.

Impact CreatedThis solution improves soil
health and allows farmers
to trade a new commodity- carbon offsets.

of CO2 potentiallysequestered over the
next 5 years
Strong Room
AI-driven controlled drugs
management platform aimed at
reducing adverse drug events.
Powering a secure digital gateway toquickly and safely access specialised
treatment plans for patients.

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Clarity Pharmaceuticals
Clarity is a personalised medicine
company focused on the treatment ofserious diseases, with a focus ontargeted therapies for the treatment ofcancer in adults and children.

Tegan Nock, Soil Carbon Co.'s
Co-Founder & Chief Product
Officer

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Business Challenge

Solution Delivered
5B has created a modular
pre-fabricated, plug and playsolution to allow low cost,
rapid deployment of solar
farms. 5B's solution enables
solar farms to be deployed
3x faster with twice theenergy output from the sameland compared toconventional projects.

Impact CreatedSince inception, 5B has
generated ~25,500MWh ofsolar energy, as at 31 Dec
2020. The company is
growing and continues todeploy its product globally.

Portfolio Impact

5B's MAVERICK can be
deployed in remote areas andsubpar terrain, where it isdifficult and expensive totransport labour.

Portfolio Impact

As more renewable energy
sources are connected to thegrid, there is a consistent
downward pressure onelectricity prices. Therefore,
there is a need for a low-cost,
rapidly deployable solar panels
to compete in lower electricity
price scenarios.

5B

Turtle Tree

25,500MWh

2 Billion
Tonnesof solar energy generated

Tackling the 2 Billion
tonnes of CO2 produced
every year from dairy
farming5b.com.au

Turtletree.co

Business Challenge
Bridging the gap between
infant formula and the
goodness of natural
human milk.

Solution Delivered
Turtletree Lab produces
real bovine and human milk
from cultivating mammary
cells of both cows andhumans.
TurtleTree is recreating thefull composition,functionality and taste ofmilk using the latest cuttingedge innovation in biotech.

Impact Created
Provide access to greater
quality dairy and its
byproducts in a crueltyfree and sustainable
manner. Reduced dairy
farming to diminish CO2 in
the world.

TurtleTree Founders,
Max Rye & Fengru Lin

5B Founders,
Chris McGrath & Eden Tehan

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Business Challenge
Neuroblastoma is the mostcommon extracranial solid tumorof childhood. It commonly
presents in children younger than
2 years of age, with 90% being
younger than 5 years of age.

If Clarity's pipeline of cancer
treatments clear regulatory approval,
they stand the chance to savethousands of cancer patients’ lives.

Clarity Pharma
claritypharmaceuticals.com

Portfolio Impact

Portfolio Impact

Impact Created

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Business Challenge

Solution Delivered
Clarity is a clinical stage
radiopharmaceutical company
developing next-generation
theranostic (therapy and imaging)products, based on its platform SAR
Technology. The SAR Technology isideally suited for use with copper
isotopes, enabling superior imaging
and therapeutic characteristics ofradiopharmaceutical products andaddressing the current manufacturing
and logistical limitations in the growthof the radiopharmaceutical sector inoncology.
Clarity’s lead product SARTATETM, an
oncology theranostic (diagnostic andtherapy), is in clinical trials forneuroblastoma and neuroendocrine
tumours. Clarity’s next product, SARBombesin (SAR-BBN), is a pancancer theranostic
radiopharmaceutical withincreased specificity and in-vivo
stability. It is being developed forbreast, prostate as well as a range ofdifferent cancers.

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Strong Roomstrongroom.ai

New cancer
treatments

600+ AI
solutions

Clinical-stage
radiopharmaceuticalcompany developing newtreatments for liver,breast and rare childhood
cancers

deployed in Australian
pharmacies to reduceincorrect dosages &medical non-adherenceby patients

Between 33% and 69% of
hospital admissions are due toincorrect dosages and medical
non-adherence by patients.
This includes pharmaceutical
drug events such as medication
errors, inappropriate use, nonadherence to instructions,misadventure and interactions
between different medicines. In
Australia the issue impacts over
650,000 Australians a year
costing the health system up to$1.4bn.

Solution Delivered
Strong Room’s medication
management software forpharmacies uses artificial
intelligence, including the world’s
most powerful AI facial recognitionengine, to improve patient care byautomatically verifying patientsand providing correct
dosages.

Impact Created
Strong Room is active inover 600 pharmacies
around Australia, growing
at over 100% per quarter.
The company seeks tocontinue expanding both
locally and internationally.

Strong Room’s Founding Team
Clarity Pharma FounderMatt Harris
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Portfolio Impact

Regrow

PHD, CEO & Co-Founder of Regrow

regrow.ag

150 MMAcresof land analysed a year

Business Challenge

Solution Delivered

Impact CreatedRegrow is a solutions
provider for resilient
agriculture that aims tosolve the challenge that
estimating soil organiccarbon on the field is atime-consuming andexpensive process.

Regrow is developing
products that allow
participants to estimate soilorganic carbon on a field
without taking soil samples,delivering 90% accuracy
and provide results thatcomply with carbon market
requirements.

Regrow recognises that
agriculture has the power
to reverse climate change,
and combines industryleading expertise to drive
resilient agriculture
adoption across the supply
chain.

Its digital platform,
FluroSense, is a cloudbased crop management
and analytics platform thatdrives planting and growing
decisions that boost
sustainability and yield.
Decades of records create
crop and soil-specificreports that make it easierfor farmers to put aregenerative approach into
practice.

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advancinggenderequity33

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35 Advancing Gender Equity
Closing the Global
Gender Gap
None of us will live to see
gender parity, economic orotherwise, nor likely will any of
our children. In their 2021
Global Gender Gap Report, theWorld Economic Forumasserts it will take 267.6 years
for women and girls to achieveequal economic participationand opportunity (a decade
longer than last year). Leadersof women’s economic
empowerment interventions,
who are often informationsiloed and under-resourced,
must up-skill to produce
measurable outcomes,
influence decision-makers,
inspire action, and achieve
scale and sustainability.
Artesian launched a dedicatedwomen's economic
empowerment non-profit andimpact innovation lab
dedicated to SDG 5: Gender
Equality for the purpose ofincreasing the efficacy of
impact interventions for the
beneficiaries they serve.

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Artesian Partner speaking on the “All Things Being Equal” panel at theWorld Capital Markets Symposium, Kuala Lumpur

Backing Female
Founders & FundManagers
Venture capital funding overall
has surged in recent years, but
the numbers haven't leapt
forward for female founders at
the same pace. Venture capitalas an industry is also historicallymale-dominated. Researchshows that backing female
founders does not only address
gender equality - it also
optimises returns on startup
investments. Research also
shows that including more
women in VC is the smart thing
to do financially. Not only does
increasing gender diversity
improve financial performancefor VC firms; homogeneity inventure capital, including ininvestments made and among
portfolio companies, also harms
financial performance. Artesian
believes that while talent isevenly distributed, opportunity
is not. By investing in women, we
can help to contribute to abetter world, create betterbusinesses and generate better
investment returns.

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Amplifying theWork of Women
Impact Leaders
A recent study of 1 million
inventors found that, at thecurrent rate of increase infemale inventors, it would takeover a century to achieve parity
with men. Some of the hardesthit sectors by lockdowns andrapid digitization have gravely
affected women's strives forparity and a lot of the work overthe past decade has been
undone due to the crisis. As welook to rebuild, gender-sensitive
recovery strategies are now
more critical than ever, and wemust build more gender-equal
economies. We believe that
amplifying women's voices andsupporting the work of women
visionaries, we can build
capacity and unlock the impact
potential of under-utilised
human capital and mobilise
resources and collective agency
for accelerated change.

Artesian Portfolio Manager presenting on the “VC & PE: Impact Hidingin Plain Sight” panel at a Responsible Investment Association Australia
event, Sydney

Engaging with
Corporations on
Gender Equality
If women played an identicalrole in working life to that ofmen, global annual GDP could
potentially increase by $28
trillion (26%) by 2025. Several
studies have estimated that atleast 25% of women globally
have experienced sexual
harassment at work. No
industry or occupation isimmune. However, a better
path can be created byincreasing diversity at theleadership and ownership levels.
Boards with diverse viewpoints
can reduce overall risk andexpand opportunities for thebusiness. According to an
analysis of thousands of 360degree reviews, women
outscored men on 17 of 19
capabilities that differentiate
excellent leaders from averageor poor ones. However, there ismaterial inequality between theopportunity available for maleand female business leadersacross society. We seek toengage with corporations andput gender back on the agenda
in capital allocation decisions.

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ARTESIAN IMPACT REPORT 2020/21

UNCDF a n d A r t e s i a n Launch
Impact Partnership t o
S u p p o r t I n ves t men t s in
Gender Equality a n d W o m e n ’ s
Economic E m p o w e r m e n t“This partnership shows the promise of new ways of
doing business,” said Esther Pan Sloane, Head ofPartnerships, Policy and Communications at UNCDF. “It’sgetting more difficult for investors to differentiate
between the many new vehicles aimed at supporting
sustainability or achieving impact.”

UNCDF is a UN agency with specialised expertise in
making finance work for the poor in the world’s LDCs.
Artesian is a global alternative investment
management firm specialising in debt, venture capitaland impact investment strategies.

“We are proud to work with Artesian and SheSyndicate
on an innovative impact partnership,” said UNCDF
Executive Secretary Judith Karl. “Pension funds andsocially-conscious investors globally are seeking ways to
use their investment dollars to support the UN
Sustainable Development Goals.”H

SheSyndicate will use its donation to fund education,
mentoring and programs that benefit female entrepreneurs,
investors, directors, and future leaders. A portion of thefunding will also be used to set up a dedicated foundation to
support non-governmental organisations that help theworld’s most vulnerable and marginalised women and girls,
particularly those affected by COVID-19.

NEW YORK – May 15, 2020 – The United Nations
Capital Development Fund (‘UNCDF’) and Artesian
today launched an impact partnership to support
gender-lens investing, boost female leaders in thecorporate workplace, and support women’s economic
empowerment in the world’s 47 Least Developed
Countries (‘LDCs’).

The Artesian Women’s Economic Empowerment Bond
Fund (WE Fund) will invest in public companies withwomen in management and board positions; faircompensation and work-life balance policies including
parental leave and flexible work options; andcommitment to gender equality. The fund will donate
one- third of the management fee from the WE Fundto a nonprofit, SheSyndicate, and UNCDF to support
women’s economic empowerment around the world.

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Artesian is demonstrating its commitment by putting moneyon the table to support women around the world. Their
donation to UNCDF will help us support a new generation of
female entrepreneurs in developing countries.
The WE Fund offers an innovative mechanism to recognise
and reward companies with accountable business practices
and gender-positive management policies, while also making
a donation to support UNCDF’s work in LDCs.”Through a fixed income strategy using Equileap’s screening
and guidance, the WE Fund will seek to produce market rate
returns tracking the Bloomberg Barclays Global Aggregate
Corporate Index. “With the launch of our Women’s Economic
Empowerment Bond Fund, we are making it easier for
gender lens investors and stakeholders to support global
economic equality,” said Artesian Managing Partner John
McCartney. “UNCDF and SheSyndicate will be the key
nonprofit partners supported by the WE Fund to implementtransformational impact addressing this critical challenge.”“The global economic gender gap has complex causes and is
widening each year,” said SheSyndicate Founder andArtesian Head of Impact Investing, Vicky Lay. “It will requireconcerted effort, ingenuity and resources to solve. Innovative
public private partnerships like the WE Fund are necessary inorder to unlock impact capital at scale and drive real change.”

The WE Fund management fee donation to UNCDF will
support the agency’s work in LDCs, including helping poor
women access savings and credit; lending to small and midsize businesses run by female entrepreneurs in frontiermarkets; and supporting local governments as they build
climate-resilient infrastructure and manage their publicfinances in transparent and accountable ways for the
benefit of women and men.

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ARTESIAN IMPACT REPORT 2020/21

SheSyndicate’s Vision
is a world where all women and girls
everywhere can fulfill their humanpotential.

SheSyndicate’s Mission
is to educate, mentor, and advocate forthe next generation of female
entrepreneurs, investors, directors, andsenior leaders so that they may feel
emboldened and empowered as equal
participants in the economy, as decision
makers in society, as stewards of capital,
and most importantly, as catalysts forchange.

Impact Activities• Women social entrepreneurshipacceleration• New impact venture incubation & MVP
development• Peer power circles & masterminds• Executive & leadership coaching• Women in ITC - skills training &development• Resources & mentorship for financial
literacy & investing• Funding female founders and theirimpact initiatives

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Artesian Establish
Dedicated
Women’s
Empowerment
Non-Profit,
SheSyndicate.org
SheSyndicate is a charitableorganisation dedicated to theeconomic empowerment of
women and girls everywhere.
Through education, mentorship,
outreach, and capitalstewardship, we are striving
towards closing the economic
gender gap in our lifetime.
Our programs work towards
empowering women with thetools, resources, and confidence
they need to act as change
agents within their own
communities around the world.
In 2020, SheSyndicate received
501(c)(3) non-profit status.

Our Platform for
Women Visionaries &their Impact Solutions
We are in the process ofbuilding out our “Impact
Innovation Lab” to help
women deepen and scale
their solutions for women’s
economic empowerment. We
are working to develop
leaders, catalyse their ideas,
and help them access capital;from corporate executives tosocial entrepreneurs.
We are developing our own
unique platform solution
where we provide impact
initiatives full-service
support including leadershipdevelopment, ongoing
research, solution mapping& development, and funding.

Our platform solution
includes: research support
to help deeply understandthe problem; landscapemapping to recognise who is
working in the issue areasand how; individual coaching
to help develop or refine asolution (Human Potential
Program); and help toaccess the resources
needed to bring the project
to life.

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ARTESIAN IMPACT REPORT 2020/21

Advocacy
Activities &ImpactInitiatives
Community,
Events &Campaigns
As part of our advocacy work,
we have begun facilitating
conversations and launching
campaigns to determine
which roles across industry,finance, and technology,
require greater gender
diversity and how to get there.

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Impact Initiatives LaunchedIn our first year, SheSyndicate on-boarded impact initiatives designed to support
women beneficiaries with numerous intersecting identities including race, socioeconomic status, and ability.

5,027

25% of SheSyndicate impact initiatives
launched through our working group model have
Impact Day
attracted corporate sponsorship and/or
grant funding. Two examples include:
participants at
473 events

TechSavvy Program
TechSavvy is amentorship-based
computer literacy program
originally developed for
women who lost work due
to COVID-19. To date, it
has served over 40
beneficiaries, 4 of whom
are newly employed, with
98% of beneficiaries
reporting increased skills
and confidence.
Participants and mentors
meet weekly to learn,
practice skills, discuss
personal and professional
goals, and build theirconfidence in common
applications. The majority ofthe participants were Blackand Latinx women over 40.
One of the emerging trends
from participant feedback isthe difficulty and ageismthat women face whentrying to find employment,
especially when balancing
motherhood or working in
tech.

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TechSavvy is also
deepening its relationships
with domestic violence
shelters to provide women
who have experienced
gender-based violence an
opportunity to build
economic independence.

The lack of Female FundManagers and funding for
Female Founders shows anegregious gap in themarket with incredible
opportunities to support
and better the system. The
core mission for Parity
Capital is to work both fromthe top down and bottom
up to increase capitalaccess.

Capital Parity Project
The goal of the Capital
Parity Project is to raiseawareness and createchange in the venturecommunity for more
equitable investing
practices. This means
whether a woman isfundraising for her next
Fund or her next big idea
to build a company, sheshould not face thechallenges that are in themarket today.
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Launch of the Female
Leaders Fund

Funding Female
Founders
Of Artesian’s existing VC
portfolio of 306 Australianstartups, 108 (36%) have atleast one female founder(as at 31 Dec 2020). In
2020, 27% of our venture
capital investments weremade to female founders.

In 2021, Artesian secured seed
investor commitments for our
Female Leaders Fund, a worldfirst fund for backing the Series
A & B rounds of startups led by
women founders across the
Asia-Pacific. We anticipate thelaunch of the Female LeadersFund in H2 2021.

108 Female
Founded Startups
funded across our VC
funds since inception(includes companies withat least 1 female founder,
as at 31 Dec 2020)18 of Artesian's female founded portfolio companies.

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The Fund offers investors aunique opportunity to gain
broad exposure to a range offemale-led high growthpotential early-stage
investment opportunities.

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creating asustainable
future4521
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47 Creating a Sustainable Future
We would like to highlight four challenge areas that our team is thinking
about. While some of these subjects garnered intense attention lastyear, we aim to work on these critical areas with an eye towards longterm solutions.

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4

Fueling the Renewable
Energy Transition

Agriculture Revolution &Global Food Security

Tackling Global
HealthBusiness Purpose& Accountability

A clean energy revolution is underway
as the carbon-based infrastructurethat powered the modern era now isfueling the climate crisis thatjeopardises our future. Governments
and corporations are committing tocarbon neutrality. As the interests ofpublic and private sectors align, theopportunity to invest in the green
economy is set for long-term secular
growth. Green & Sustainable bonds
have given institutions a new tool totackle these problems at scale, andinvestors the ability to invest theircapital with purpose. Innovation inclean energy solutions is driving down
the cost of green infrastructure anduncovering profitable ways totransition us away from the old carbon
economic framework.

Over the last 50 years, the world has
managed to avoid a Malthusianfamine despite the drop in arable land
and a doubling of the population base.
Global climate change will only intensify
the challenge of achieving global foodsecurity, particularly in the poorest andmost vulnerable countries. Sustained
investment will be needed to alignfood production with the ecosystemon which it is built, and responsibly
scaling it to a level that can feed theentire population will require innovative
thinking. We are encouraged by thegrowth of fixed income securities thatare linked to the United Nations
Sustainable Development Goals thatgive investors the ability to deploy
capital at scale that address issues
surrounding food security.

Last year was devastating for global
health. The rapid spread of Covid-19
laid bare the shortcomings of healthsystems and illustrated that global
health is a communal issue that
requires collaboration and investment.
While the speed of vaccine
development showed what humaningenuity can accomplish, access totesting and vaccines - especially inemerging economies - remain highly
uneven on a global basis. Healthcare is
a complex issue that span changing
unhealthy behaviours at the individuallevel, the effective management andtreatment of disease, to the financial
cost to economies. We need to invest
in resilience of the global health caresystem to make it equitable for all.

The growing acknowledgement that a
one-dimensional focus on businessprofits and shareholder returns at theexpense of other stakeholders is nolonger sustainable. Astute
management teams who makebusiness decisions that create longterm value for their organisations do
so by taking into consideration all
relevant stakeholders. Value creation
for shareholders and stakeholders is
not a zero-sum game. Institutions whoseek to shift away from unsustainable“business as usual” profitability mustmove towards building authenticity,transparency, and ultimately, taking
action.

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Artesian Climate50
Leading Investors
in Sustainable
EnergyBy Ali Clunies-Ross
For Artesian to be named by
Climate50 as one of the mostimpactful global climate
investors is wonderfulrecognition for our innovative
portfolio startups, supportive
investors, and for Artesian's
broader commitment toachieving both impact andfinancial returns, However, as
anyone working to support
Climate Tech knows, there ismuch more to do - we are justat the beginning of atransformational, innovationand technology led, global
energy transition.
When I first started working on
Artesian’s Clean Energy Seed
Fund four years ago, it was the
only dedicated early-stage VC
Fund in a nascent, relatively
immature, Australian clean
energy innovation ecosystem.
There were small clusters ofinnovation emerging, evidenced
through the launch ofaccelerator programs like
EnergyLab and funds such as
the Clean Energy FinanceCorporation’s Innovation Fund.
Clean Energy focused startups,
and committed investors, were
however, few and far between.
Even in much larger
international markets,

49

ClimateTech was not a focus
for traditional Venture Capital
firms, many of whom wereburnt by failures during thefirst wave of Climate Tech
investment in the early 2000s.
It was only as recently as 2015that Bill Gates launched
Breakthrough Energy
Ventures alongside a number
of well-known private
investors, reigniting the pushtowards ClimateTech as bothan impact and financial
investment opportunity. Just
one year later, the Paris
Agreement was signed in an
attempt to keep the increasein global average temperature
to well below 2°C above preindustrial levels and to pursue
efforts to limit thetemperature increase to 1.5 °C
above pre-industrial levels.
The drive towards clean
energy solutions from world
leaders and the scientificcommunity, was compoundedby new commitments fromgovernments, countries, cities,business, industries and bothpublic and private investors.

Today, Google has vowed to
run its operations on carbonfree energy by 2030, Apple tobe carbon neutral by 2030
and Microsoft to be carbon
negative by 2030. Joe Biden’s
Presidential win and the
Democrat’s control of thesenate will put a particular
light on climate issues over the
next four years with theadministration targeting netzero emissions in the US by
2050. In Australia, we are now
seeing announcements fromincumbent mining andresources players like Andrew
Forrest announcing a plan tobuild the country’s first greensteel pilot plant. Climate Techis rapidly moving into themainstream and has matured
enormously in the last five
years, with awarenesscreating a global call to action.

According to PitchBook, there
has been USD 286 billion
invested in Climate Techcompanies since 2011, with USD
7.2 billion invested in 2020
alone. During my time in thisspace, I have seen Australia’s
ClimateTech ecosystem space
grow, with our country now
recognised globally as alaunchpad for startups to pilot
their technology due to our
natural resources, uninhibited
land and export infrastructure.
Overseas investors andcorporates have started looking
to Australia for opportunities inthis space due to our emerging
competitive advantage.

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Artesian launched our first
Clean Energy Seed fund in 2016,
with thought/market leaders
such as CEFC, Australian Ethical,
Future Super and Hostplus
making capital commitments.
Over the past four years, theClean Energy Seed Fund (andother Artesian funds) havemade investments in over 60
companies that are reducing
the cost of renewable energy,
delivering clean energy solutions
to consumers via new businessmodels, converting waste toenergy or finding new ways tosequester carbon.
Artesian portfolio startups (seeillustration below) like rapid solar
deployment company 5B, which
received investment from US
energy corporate AES, and windturbine monitoring system PING
are expanding globally,
underlining the demand forAustralian technology to solve
climate related issues.
Evergen’s software is
supporting the creation ofvirtual power plants, with an aim
to kill coal-fired power stations
in more than 10 countries.
Southern Green Gas is piloting
their technology at an APA gas
hub in Queensland to create
renewable methane (being aneffective hydrogen carrier) andmethanol.
In a short period of time, wehave seen the cost of
renewable energy reduce
drastically, to allow for new
innovations. Over the next five
years, I expect to be talking
about technologies we are yet
to name – the pace ofprogress in this space isbuilding hope.

Ali Clunies-Ross is a memberof the VC investment teamat Artesian. She is thePortfolio Manager for
Artesian's Clean Tech
investments from seed stage
through to Series B.
Ali Clunies-Ross

Ali joined Artesian in 2017 andhas a Bachelor of Commercefrom The University of Sydney
and a Master of Business
Law from The University of
New South Wales.

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Working with Corporates, Governments,
Universities & Institutional Investors

Artesian scales its responsible investment activities by building collaborative
partnerships, with innovation ecosystem participants with particular domain
expertise, including government organisations, corporations and industry groups,
universities & research institutes, accelerators and incubators to achievesustainable outcomes at scale.
Leveraging Artesian's extensive background in venture capital, the Venture
Capital as a Service (VCaaS) unit provides VC services to a range of corporate,
government, investment, and industry groups who are seeking strategic or
financial returns through involvement in the startup innovation landscape.
Undertaking activities such as scouting, due diligence, and investment
management, the VCaaS team is at the forefront of corporate innovation.
Recent corporate trends have seen an increasing level of attention andinvestment towards corporate sustainability activities. Heavily aligned to theUnited Nations Sustainable Development Goals, the strategic impact of these
activities range from corporate operations and profit improvement toaccelerating climate and community friendly activities. Artesian's role in this is tohelp these large companies and groups be more aware of what the innovation
community is creating and forge a pathway for investment and/or integration.

"Artesian's position as an impact investor allows us to truly
understand and match innovative ideas and products with thesustainability strategies of our partners. We are fortunate to haveworked with many partners on such strategic goals as taking action
on the climate, sustained economic growth, and clean energy."- Guy Newton, Director, Venture Capital as a Service (VCaaS)51

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Impact Spotlight
Investing in Australia's Clean Energy Revolution

ARTESIAN CLIENT PARTNER : CLEAN ENERGY FINANCE CORPORATION (CEFC)
The Clean Energy Finance Corporation (CEFC) plays a unique role in increasing investment in Australia’s transition to lower emissions. With the backing of theAustralian Government, they invest to lead the market, operating with commercial rigour to address some of Australia’s toughest emissions challenges – inagriculture, energy generation and storage, infrastructure, property, transport, and waste.
The Clean Energy Seed Fund established by Artesian and the CEFC invests in scalable, high-growth potential startups, encouraging innovation and creating opportunities
in the development of clean technology. In 2020, Artesian’s Clean Energy Seed Fund made 43 investments in Australian startups developing software, hardware or new
business models applicable to the clean energy market (see portfolio below).

To see the updated Clean Energy Seed
Fund portfolio, visit:https://cesf.com.au/projects

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Industry Engagement
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Recent speaking and community eventsDATE

ORGANISER

TYPE

EVENT

DESCRIPTION

LINK

16/06/2021

PropelKeynotePropel Energy Tech Forum
Clean Tech Investing - Lessons in Navigating Global
Change (Keynote Presentation)

Artesian speaking at the Propel Forum online virtual forum with a keynote presentation:“Clean Tech Investing - Lessons in Navigating Global Change” online virtual forum

Link

03/06/2021

AGRI Tech Venture

07/05/2021

Responsible Investment
Association Australia(RIAA)

Panel

PE & VC: Impact hiding in plain sight

21/04/2021

Victorian Cleantech
Cluster

Panel

Victorian Cleantech Expo
Financing Cleantech Innovation

10/04/2021

United Nations

Panel

01/04/2021

University of Sydney

02/12/2020

Startup&Angels

Keynote19/11/2020

Launch Vic

27/10/2020

Keynote Agrifood Tech Investing - An Asia-Pacific Perspective

Keynote presented on key trends in Agrifood innovation and investing

Link

Artesian sharing at the Responsible Investment Association Australia 2021 conference about impact inPrivate Equity and Venture Capital

Link

Artesian sharing insights on a panel about what is an investor looking for with clean tech founders

Link

Unlocking Public and Private Finance for the Poor

Our New York office discussing our joint impact partnership with the UNCDF, synergies to deliver results at
scale, and SDG#17: Partnership for the Goals

N/A

The Genesis of Startups
Podcast Have a Deep Understanding of the Problem You Are
Solving

Artesian sharing insights on a podcast about what venture capital firms look for when assessing startups

Link

Startup Funding: 2020 retro and 2021 forecast

Keynote - 2020 investment landscape retrospective in Australia and worldwide

Link

Panel

The Increasing Role and Impact of AI

Panel on the increasing role artificial intelligence and machine learning has across the startup ecosystem
in driving economic development and growth

Link

Startup Victoria

Panel

Pitch Night: Artificial Intelligence

Artesian presenting at an AI pitch event in Melbourne, Australia

Link

26/10/2020

Cleantech Group

ReportJudging for 50toWatch report

Judging the Cleantech Group's 50toWatch, which lists the top CleanTech startups globallyLink

08/10/2020

Startup&Angels

Panel

Scale-up Investors panel

Startup&Angels first edition in Adelaide. An interactive event connecting startup founders, entrepreneurs,
investors & business angels

Link

12/08/2020

HatchQuarter

Panel

HQ Boardroom Discussion with Artesian: The Future
Innovation in Australia“The Future of Innovation in Australia” - shedding light on the current and future tech industry, theeconomical impact of COVID-19, and how startups and investors will adapt

Link

15/06/2020

The Advertiser

Panel

Entrepreneurship & Startup Questions

Entrepreneurship + startup questions answered by expert panel

Link

07/05/2020

Impact Capital Forum

Panel

Tackling Financial Literacy in the 2020s

Artesian joins panel in New York to discuss how we can tackle the issue of financial illiteracy in the UnitedStates.

Link

07/05/2020

Startup&Angels

Panel

Emerging Technology Trends

Panel discussion on emerging tech trends in Europe and APAC

Link

16/04/2020

Startup&Angels

PanelInternational Investor Panel: Strategies for Startups
to survive and keep growing

This VC Panel is all about supporting startups in these difficult times. Artesian join panel of speakers
presenting practical tips to survive & keep growing!

Link

15/01/2020

Sustainable FinancePodcastEp 67 of the Sustainable Finance Podcast

Artesian Partner John McCartney talks about how we're attacking the $800B Climate Infrastructure
Deficit with green bonds & venture debt.

Link
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diversity
equity& inclusion
at artesian57

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ARTESIAN IMPACT REPORT 2020/21

59 Diversity, Equity & Inclusion at Artesian
Sharing Our Commitments•

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DE&I in Numbers

16.67%

18.75%of minority employees
promoted in 2020of eligible female employees
have taken family leave
benefits in the last 3 yrs

23.53%of female employees
promoted in 2020

We seek to hold ourselves accountable
With the growth that Artesian has experienced, we formalised our DE&I committee andin H2 2021, will be launching our employee surveys and engagement tools that aredesigned to support our staff to enable them to do their best work.

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We are exploring new ways to support our portfolio companies

34%of portfolio companies haveat least 1 founder with anonwestern background27%
of portfolio companies
have at least 1 female
founder

The heightened attention being paid to diversity and ESG by investors and the broader
market means our role in supporting Artesian portfolio companies continues to expand.
Our data platform will allow us to benchmark individual portfolio companies on how they
are doing and work directly with each one to develop their diversity programme.

•

We share knowledge and resources with our partners
The success of our partner institutions is critical to scaling the impact we aim to achieve
over the long-term. We are focused on supporting our partners through sharing lessons
learned from our journey and best practices that surface from the greater Artesian
ecosystem.

"We seek to adopt a transparent and collaborative
approach when it comes to advancing Diversity, Equity, andInclusion in workplaces across the Asia-Pacific and willcontinue to share our policy templates and best practices
with our accelerator and incubator partners and portfolio
companies."- Tim Heasley, Partner &DE&I Committee Member

59"Diversity in the workplace is of critical importance. Homogenous environments
can lead to a performance plateau. I value an inclusive technology culture,reflective of a diverse technology workforce, that fosters engagement,
collaboration, belonging and that delivers value.
Whilst HR typically leads DE&I initiatives, technology leaders play a crucial roleas strategic partners by designing, developing, and executing technology
solutions to address a complex challenge. In Artesian we have recently
implemented a platform to facilitate DE&I focused employee engagement
surveys but while DE&I technology tools can enable awareness and highlightthings that are not working well, we still need to rely on humans to follow
through with meaningful action."- Connor Hughes, Chief Technology Officer &DE&I Committee Member

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Supporting Global Talent & Diverse
Perspectives

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TEAM SPOTLIGHT: WOMEN OF ARTESIANIn 2020, Artesian promoted two women partners and two women portfolio managers.

Mei Lee(Part ner)

Vicky Lay
(Partner)

Ali Clunies-Ross(Portfolio Manager)

Melody Zhang(Portfolio Manager)

The Power of Mentorship
Valuable work comes from people who know how valuable they are, andwhen they commit to bringing their best work, it helps the organisation
move forward, but leadership commitment and employee commitment
go hand in hand. At Artesian we encourage all members of the team togrow and develop personally and professionally.

"Being a French national working in global banking
markets, I have always valued differing
perspectives at the decision-making table andhaving structures in place to support diverse
talent. I am surprised that diversity, equity andinclusion has taken this long to become
mainstream.
Personally, I was lucky enough to have excellent
mentors throughout my own career andtherefore understand the value of mentorshipand how crucial it is early on in someone’s
professional journey.
My mentorship style is more informal and focuses
on developing relationships, providing perspective
and giving feedback that is direct andpersonalised for the individual."- Gilles Planté, Partner & Head of VCaaS

Meet the Team
Alexandra Grigg is the Senior Portfolio Analyst for the South Australian Venture Capital Fund and has been activeat the fund since it was first launched in 2018. In 2021 Alex was recognised as a Forbes 30 under 30 Asia list makerin the Finance and VC category.

"A snowball effect is created when there is a high level of diversity, equity andinclusion in the ecosystem. The culture is more supportive and accepting, whichempowers people to speak up and share ideas. This means more perspectives
are heard and more ideas are generated. Then more collaboration andinnovation occurs. Ultimately, great ideas are more likely to emerge and be
successful because they are inclusive and representative of the needs in theworld outside of the ecosystem. This is why I’m committed to creating global
opportunities and impact through investment that is underpinned by diversity,
equity and inclusion."- Alexandra Grigg, Senior Portfolio Analyst

Hannah Morrow is our in-house lawyer supporting the VC portfolio managers and analysts with transaction
negotiation and documentation. She is passionate about leveling the playing field when it comes to access to legal
advice, particularly for diverse founders.

“There is a lot of talk in the venture capital industry about the importance of getting funding in
the hands of women and minority entrepreneurs, however I think that our inclusion efforts need
to be wider than that. We need to democratise participation in the financial system at the very
beginning by ensuring just and equitable access to fundamental services such as legal advice. I
believe the impact potential of the VC back office in diversity, equity and inclusion efforts islargely overlooked and I’d like to change that.”- Hannah Morrow, Lawyer
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ARTESIAN IMPACT REPORT 2020/21

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Making Frontier Tech Inclusive:
Creating Jobs & Capacity Building inSoutheast Asia

THE IMPACT POTENTIAL OF TECHNOLOGY IN EMERGING MARKETSBy Nayoko Wicaksono

How do new technologies help to build up an economy, improve
productivity, and create jobs?
During Covid-19, the adoption of digital technologies by the population and corporates
increased tremendously. This resulted in a new paradigm where people are forced to learn touse new technologies to survive and corporates are forced to implement digitisation andautomation much faster than before. With remote working as a norm, companies are forced
to digitise their processes, improve their coordination using new communications technologies,
and dig deeper into their data to seek insights. The digital adoption by the consumer made it
possible to generate rich and meaningful data that enabled more advanced automation
technologies to the market such as Machine Learning and AI.

Why is it important to educate/upskill/reskill diverse communities?
The increasing adoption of automation, artificial intelligence (AI), and other technologies
suggest that the role of humans in the economy will shrink drastically, wiping out millions ofjobs in the process. COVID-19 accelerated this effect in 2020 and will likely boost digitisation
across the region, and perhaps establish it permanently in some industries and urban
population. Although these technologies will eliminate many repetitive jobs, they also generate
new jobs such as software developers, data analysts, cybersecurity specialists, and otherdigital specialists. Increased automation will create significant opportunities. Primarily, it will
enable workers to undertake higher-value tasks.
This is why governments, companies, and individuals therefore all need to understand theseshifts when they plan for the future as there may be a need to redeploy, upskill, or reskill
people and perhaps even to redefine any given job itself. They need to take deliberate action
to build a workforce that is ready for the future where workers continue to learn over time as
demand for different skills evolves.

How can technology play a role in supporting employment?
Through recent advancements in connectivity across the region, combined with live
streaming technologies and the proliferation of LMS technologies allowed more and moreeducation institutions are able to reach out to remote locations across the region.

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New education players are also offering more flexible courses, moving beyond degree programs
that require several years to complete to instead focus on shorter courses that are more outcomebased where people obtain skills tailored to industry needs and to upgrade their skills on a regularbasis where people can build their portfolio of projects instead of collecting certificates. We also seethat accessibility to financing becomes easier. Driven by the Education Fintech boom, the education
funding trend is shifting from large, one-time subsidies to smaller, incremental payments spreadover a person’s lifetime. This might mean, for example, shifting towards a “Lifelong Learning” model
to support the trend towards a flexible workforce.

CREATING JOBS BY INVESTING IN HIGH-GROWTH TECHNOLOGYSTARTUPSAt Artesian, we believe that investing in high-growth potential startups is the key to job creation,equalising access and community development in the developing world.
Artesian portfolio company, Kargo Technologies, aims to revolutionise Indonesia’s freight logistics
industry by leveraging technology to drive efficiency, transparency, and accountability. In 2020,
Kargo posted 85,00 jobs to its marketplace.

Supporting Technical Upskilling Programs in Data Science& Machine Learning Across Southeast Asia
I am passionate about …
Improving entrepreneurship talent and the technical talent quality
in the region by equipping them with future-proof skills that are
relevant to the market.

Artesian provides a platform for me to pursue my impact work by ...
Building the ecosystem where my school supplies graduates tostartups in the ecosystem who need data capabilities throughtraining and sourcing technical data talent from our graduates.
At Algoritma, we have helped 1,065 individuals to graduate fromour 4-month Data Science Bootcamp and helped 167 of thoseseeking career changes to obtain a job within 3 months of theirgraduation. We also committed to provide IDR 8 billion over 5 years
since 2020 to help financially challenged students with ourscholarship program in which we took in over 35 students that had
been impacted by Covid-19 to be able to graduate and findemployment. We also see individuals who graduated to eventuallycreate their own startups in the field of AI and Machine Learning.

Nayoko is a VenturePartner and analyst basedin Jakarta responsible for
Artesian’s venture capital
activities in Indonesia.
Nayoko is also the cofounder and Managing
Director of Algoritma, adata science education
startup focused on building
applicational data scienceskills using real world dataand preparing students tobe employable. Nayoko
completed a Bachelor ofArts (Economics &Commerce) at the
University of British
Columbia.

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Artesian has already become
one of the country’s biggest
supporters of early-stage AI
companies, with 40 in its
portfolio already.

Artesian & LaunchVIC's BoaB AI - WorldFirst AI Accelerator with a DE&I Focus

Artesian estimates there are
more than 300 AI startups inAustralia. The $100 million fund,which is yet to be raised, will
support up to 150 AI companies
across the Asia- Pacific.

LaunchVic CEO Kate
Cornick said it was pivotal
for startups to have theright mentorship andinvestment to be
successful.

“We’ve invested heavily inverticals such as AgTech andclean energy. However, AI isinteresting in that it hasapplications across all industries.
If the Australian economy is toremain competitive, we need
the local capability to create
new AI- driven innovations that
help to generate economic
advantage,” Artesian chief
executive Jeremy Colless said.

“We are backing Victoria to
be a world-leading
innovation ecosystem, andthis funding will help us
attract and develop thebest talent, investment andartificial intelligenceexpertise,” Victorianinnovation, medical
research and digital
economy minister Jaala
Pulford said.
Reference: Australian Financial
Review 16 Feb 2021

Boab AI will be run by former
founder of agriculture techaccelerator SproutX and
Deakin University venture
director Andrew Lai, and willoffer companies a tailoredsix-month program that will
supposedly be designed tomeet the needs of eachcompany.
“The Artesian crew havedifferent thematics and they
were quite interested in AI. It
was great for me to re-enter
the program and the VC
space and this time at abigger cheque size,” he said.

“Rather than small inceptionlevel cheque sizes, we’reoffering a minimum of$300,000. The companies wego for are a higher valuation,
generally $5 million and over ...
[so] we’re investing into
companies that have existing
traction, mature products,
have enterprise customers
around the world and we’re
helping create programs
suited to them.”

Boab’s first round ofparticipants include Victoriancompanies Pi.Exchange,
Plaetos and Strongroom AI,
and Australian companies
Daitum and Remi AI.
Boab directors include Dr
Catriona Wallace, founderand CEO of Ethical AI
Advisory, Rosyln Hames COO
of Clear Dynamics as well as
Tim Heasley and Matthew
Clunies-Ross, both managing
partners at Artesian.

Boab Executive Chairman, Dr Catriona Wallace speaking at the Boab AI launch, Melbourne
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Forward Looking, Active Engagement

At Artesian, we are committed to active leadership, learning and improvement throughout the business.
In 2020 we formed our ESG Thought Leadership committee and our Diversity, Equity and Inclusioncommittee, to ensure our ongoing commitment to these causes.
Our committees includes key members of Artesian's executive and board leadership and meet weekly and monthly in order to actively monitor ESG market news, policychanges and opportunities to engage as active owners. With ESG and DE&I factors becoming increasingly important to both businesses and investors, our committees arealso committed to looking forward, identifying new ESG investment opportunities as well as potential improvements to Artesian’s own internal practices and policies.

Recent speaking and community events

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DATE

ORGANISER

TYPE

EVENT

DESCRIPTION

LINK

16/06/2021

UNCDF

PodcastUNCDF Capital Musings Podcast#26 - Breaking Barriers

Discussing gender equality, the financial advantage of investing in women, and why much more thanmentoring is needed to get more women and diverse leaders into top roles

Link

13/03/2021

Scale Investors

KeynoteScale Investors Startup Governance Forum
2021

Scale is Australia's first and only Angel Investor network that invests in female founders. Their monthly
governance forum provides an educational opportunity for their network of investors (and founders) toenhance the quality and understanding of startup governance.

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17/02/2021

SheSyndicate

Panel

A panel discussion and Q&A about the ways employers are already changing, what they will need to do
to follow through on their commitments and maintain momentum, and where technology fits in both as
an industry and an enabler

Link

09/02/2021

Entre

Panel

Women's Entrepreneur Summit 3rd Annual Women's Entrepreneur Summit – sharing insights as women VC’s, Founders, Influencers, and
Women Angel Investor Panel
Angel Investors

Link

25/11/2020

Investment News

KeynoteWomen Advisers Summer 2020 Artesian presenting at the Women Adviser Summit 2020 in New York about the importance of investing
How to Avoid Impact Washing in Portfolios
with a gender-lens as part of ESG integration and optimising for risk/returnLink

15/07/2020 Sustainable FinancePodcastEP 88: Putting Gender on the Agenda throughPublic & Private Market Partnerships

Episode 88 of the Sustainable Finance Podcast. Interview with Artesian about putting gender on theagenda through public & private market partnerships

Link

Challenging Culture Fit: Disrupting Business asusual

22/06/2020

Vinetta Project

Panel

Pitch & Panel

Judging and mentoring startups through the Vinetta Project, a capital platform that sources, supports
and scales high growth female founders

Link

05/03/2020

Startup&Angels

KeynoteWomen's Day Special

Celebrating women angel investors and startup founders

Link

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DISCLAIMER: This publication has been prepared by Artesian CapitalManagement (Delaware) LP (Artesian), to provide you with general
information only. In preparing this publication, we did not take into accountany person’s specific investment objectives, financial situations or needs. It
is not intended to take the place of professional advice and you should nottake action on specific issues in reliance on this information. Neither Artesiannor any of its related parties, associates or affiliates, including Artesian’s
employees, general partners and directors, provide any warranty regarding
accuracy or reliability in respect of such information. To the extent
permitted by law, Artesian disclaims all liability to any person relying on theinformation in respect of any loss or damage (including consequential loss ordamage) however caused, which may be suffered or arise directly or
indirectly in respect of such information. Past performance should not betaken as an indicator of future performance. You should obtain a copy of
the relevant product disclosure statement before making a decision about
whether to invest in any Artesian product. Copies of the product disclosurestatements can be obtained by visiting www.artesianinvest.com.

Artesian believes thata cross-asset classapproach to impact
investment, informed
by a deep
understanding of
cutting-edge
innovation andtechnology, createssuperior andsustainable strategic
and financial returns.