Impact and Yearly Report

2017 was a remarkable year for CNote.
We set out to create the country's
first high-yield, high-impact savings
product available to everyone--and
we succeeded. After receiving SEC
qualification, CNote has seen
double-digit growth and maintains
the same strong commitment: to
invest 100% of those funds in
high-performing, high-impact
Community Development Financial
Institutions (CDFI) to create greater
financial opportunity for our most
underserved communities.

This past year was one of learning. Learning from our inspiring CDFI partners
about the innovative products they are developing to help close our country's
wealth gap. Learning from borrowers, inspiring women and men, who with the
financial support of our CNote Members were able to pursue their goal of
entrepreneurship. And learning from our incredible Members, the CNote
customers who understand that smart finance is where competitive returns
meet community progress.

Our plans for this year are no less exciting or ambitious. 2018 is our year of
inclusion--where the conventional zero-sum game of finance is challenged.
Where financial products are delivered to make your life easier and to create the
world we all want to live in. Where financial services....serves us all.

Together, we are investing in an equitable future for all. Whatever you have as a
goal or intention this year, I’d like to leave you with one thought: Let’s. Not.
Settle.

Join us as we build a more inclusive financial system for everyone.

CATHERINE BERMAN, CEO CNOTE

2017 Impact

CNote is focused on creating a more inclusive and equal
financial system. We do this by deploying your dollars
with community lenders focused on increasing
economic opportunity in financially underserved
communities. These lenders spur development and fund
loans for female and minority entrepreneurs, affordable
housing, and other community-focused projects.

Despite this only being our first full year in operation, we’re
extremely proud of the impact we’ve had on communities
across America.

More
than 800
jobs created or maintained

Over 120
small businesses and
entrepreneurs funded

1/3 of dollars invested in
low or middle-income
communities

Impact: Connecting dollars to dreams

That was one of the best days getting approved for the loan Your heart just sings, because you know it’s gonna happen.

In 2017, we had the
opportunity to sit down
and interview some
amazing entrepreneurs. All
of them received funding
from investors like you.

https://blog.mycnote.com/category/borrower-story/ and interview some

One of our favorites was Julie Cox. Her company, Traveler Surf, is a
testament to the power of community lending. What once was only a
dream is now a thriving business that has a handful of employees and
gives back to its local community in Pacifica, CA. Julie hosts community
events in her space and donates to local charities. Not only that, but
Traveler Surf has a list of customers that spans the globe, proving,
community investing can truly have a global reach.

In our first full year of operation, we've shown that impact investing can
meet or exceed market returns. The overwhelming response from our
customers and industry experts has been extremely motivating and an
affirmation that the market has a strong interest in values-aligned
investment products.

In March, CNote won the Fintech category at SXSW and was the only
women-led company in the top five. Sharing the CNote story and vision
with innovators around the world was a humbling and thrilling
experience. The recognition CNote has received is a testament to our
community and the impact we are having together.

CNote's largest accomplishment in 2017 was receiving qualification from
the Securities and Exchange Commission to offer our product to all
investors. Our mission since inception was to make impact investing
accessible to the masses, so being limited to only accredited investors
was not an option. Since launch we’ve seen tremendous user growth and
are excited to introduce impact investing to everyone.

Since receiving SEC qualification and launching
to non-accredited investors, CNote doubled its
assets under management in a single quarter.

Along the way, CNote was honored to be covered by Forbes, Nasdaq, Fast
Company, and other publications. To cap off the year, CNote was
recognized as one of “the most groundbreaking early-stage startups” out
of a pool of more than 2,000 companies, by research firm CB Insights.

Performance 2017 Review

We're on a mission to prove that you can generate a competitive return
while increasing financial opportunity for others. We executed on that
promise in 2017 by delivering the positive impact highlighted above,
along with providing all CNote members a stable 2.5% return that far
exceeded the return offered by traditional savings accounts. Moreover,
CNote kept our users’ principal safeguarded.

CNote customer accounts
earned 2.5% on their
invested dollars, more than
40x the national average*
savings rate.

Looking at risk on the industry level, CDFIs continue to show that
community lending can increase economic opportunity while
maintaining a risk profile similar to FDIC-insured institutions. The
Opportunity Finance Network (OFN), which is the leading national
network of CDFIs (of which all CNote CDFIs are included), found that in the
last year the Network’s annual net charge-off rate outperformed
FDIC-insured institutions. 1 Net charge-off rate is an indicator of
potential losses for financial institutions. The lower the number this is,
the better. What this statistic tells you is that the CDFIs CNote invests in
are good stewards of your capital.

Conclusion

We look forward to another year of serving our customers,

improving our platform and helping to fund the dreams of
more small business owners across America.

Cheers to a prosperous 2017! We are excited for what 2018
has in store as we continue to push towards building a
more inclusive economy for everyone.

TEAM CNOTE

Learn more at www.mycnote.com

DISCLAIMERS:

CNote is not an investment adviser. This information is for educational purposes only, and is
not tailored for any individual investor. It should not be relied upon as financial or
investment advice. We encourage you to consult a financial adviser or investment
professional to determine whether or not an investment in CNote makes sense for you.

CNote is not a bank, and investments in CNote are not bank deposits. They are not insured
by the FDIC or by any other governmental agency. Investing in CNote Notes involves risk of
loss. You should always carefully consider investments in any security and you should be
comfortable with your understanding of the investment and its risks. For more information
on risks related to investments in our securities, please see our latest filings with the
Securities and Exchange Commission, which can be found here: Offering Circular.

Past performance is not indicative of future results. The projected returns are based on
historical returns from the CDFIs. Future returns may vary. The return is not guaranteed and
is subject to change. The information in this page is for information only. It is impersonal
and not individualized for any specific investor’s financial situation and is not investment
advice. This projection is not intended to be, nor should you interpret it to be, a prediction of
how a particular investment will actually perform.

*Expected annual earnings via traditional banks are calculated based on a national average
projected 2.5% yield. Expected annual earnings are presented for comparison purposes only and are not a promise of future results.