EQUITY CROWDFUNDING

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Universiti Malaya Start-Up Conference & Exhibition

January 21st, 2015

crowdonomic.vc @Crowdonomic Facebook.com/Crowdonomic

Introduction: Crowdonomic Media

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Taking Control of Your FR Destiny

•  Mission: Empower Innovators in Asia using the power of Finance 2.0

•  Fin-tech, Full portfolio

•  Asia-play

Largest CF in SE. Asia

•  F13 period •  Larger than other SEA CFPs•  (SG) ~<10x than int’l CFPs

Innovation is our DNA

•  World’s first Telecom-backed CF platform (Crowdtivate)

•  World’s first global CF platform for projects positively impacting the earth (WWF/ EarthHour)

Active Regulatory Partner

•  Engaging multiple Regulators / Gov’t agencies across Asia

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A class team with >30 years fin/tech experience

Senior Consultant

Asia Strategy Lead

MBA BA. Law

Senior Consultant

Interest rate Trader MBA Engineering

Reona ShimadaCo-founder & CEO

Nicola CastelnuovoCo-founder & CCO

S.E. Asia

Innovation

S. Korea

Finance

China

M&A

South Asia

Tech

Japan

Strategy

UKS.E. Asia India

Tech

W.EuropeNorth Asia

Finance Operations InnovationInvestment

Experience and expertise

Agenda

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Why is this important for you? …because efficient access to Capital is #1 obstacle to growth

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of Micro-SMEs (Start-ups+SMEs) in Asia say access to finance is their largest obstacle to growth

Source: IFC/ Worldbank Enterprise Survey 2006-10; World Bank GDP 2008 - 2010

40% #1

Crowdfunding… This is Finance 2.0 What it is: Crowdsourcing for venture capital

How it Works: Fundraising accelerated by the power of social media and harnessing the wisdom of the crowds

Fill standard offer templates

Publish Online

Advertise via social media

Access virtual investor community

Reach $ targetGrow your business

Smaller amounts of money from many people to reach higher targets

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Publish Offer PageAccess virtual

investor community

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Acceleration Validation Traction

#1: Use the full power of web, social media and technology to accelerate the Fundraising process

#2: It is a Game Changer for both Start-ups and Investors

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Efficient outreach to multiple investors via internet

Startups

Low – mid digit FRsRecord millions

8 -12 weeksAverage online fundraise period

Centralized deal sourcing platform

Investors

Crowdsourced due diligence community

$1 to 5KBite-sized investments to

diversify investment portfolio

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Technology Consumer/Retail Real Estate Fund

• MedTech robotics firm • Raised S$4.2 M

on OurCrowd•  IPO’d receiving

S$46.2 M in net proceeds

• F&B Chain in UK• Raised S$4.3M

on CrowdCube• Pool of 749

investors – accredited and retail

• Crowdfunding for a hotel in Palm Springs• Raised S$1.9M

on RealtyMogul• Pool of 85

accredited investors

• Prolific early-stage venture fund• Crowdfunding

$100M fund with SeedInvest

#3: Emerging Crowdfunding Verticals

Agenda

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Equity Crowdfunding: Modernizing Fundraising

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Conventional Fundraising: Extremely

Difficult and Restricted Activity (Expensive, Time

Consuming)

Equity Crowdfunding: Still Really Difficult

Fundraising Activity but Equipped with Modern,

Online Tools (Faster & Standardized

Process, Web/Social Tools for Effective

Outreach)

No reported cases of Fraud

Shareholders can be bundled up into a

vehicle

Investors are also chosen; Use lead investors to

inform market

You can control the level of information disclosure

“I’ll be stuck with managing Thousands of Shareholders (and

forced to IPO)!” “High Risk of Fraud”

“Competitors will steal all of my information”

The Market will be over-flooded with NVA Capital creating a

bubble

We are tackling Common Equity Crowdfunding Concerns

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Agenda

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Equity CF Offer Page – A dedicated fundraising page

Content: Building Up Credibility on Your Offer page

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Board & Team with relevant credentials

Endorsement from fans and industry

experts

Strategic Partnerships

IP (early stage onwards)

Attractive valuation and desirable exit

Demonstrate ability to achieve

milestones

Additional Items:•  Business Plan•  Investor Pitch

Deck•  P&L•  Cash Flow•  Balance Sheet

• Sell the vision / dream

• Ground the business plan

• Nail the delivery

• Form as important as Content

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Visual: Supporting Your Offer Page with Video

Do • Be vague

• Be boring

• Be awkward

• Show only the product

Don’t

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Video Case Study: Twenty Something London

Watch this video at https://www.youtube.com/watch?v=f2SqVkGmRX4

Team: Assembling a Capable Fundraising Team

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Charismatic Front Person

Graphic Design/ Video Person

Social Media Person

Document and numbers person

•  Media spokesperson

•  Investor Meetings

•  Brand Ambassador

•  Social media updates

•  Site updates•  Answering

enquiries

•  Putting together the offer page

•  Putting together the financial documents

•  Designing visuals

•  Creating video and other creative assets

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Recap

•  Secret sauce… Social Media (Distribution) + Democratic Participation

•  Difficult and Inefficient = > To: New efficient way to do fundraising

•  Malaysia – a pioneer market, power to Start-ups

•  Combine with Lead Investors + Conventional best practice

•  Promote, Market and Execute…make full use of this New Freedom

Sign up at www.crowdonomic.vc

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…and we’re hiring too! E-mail CVs to

recruitment@crowdonomic.com for Business Development, Developer and

Internships at our KL & SG offices

crowdonomic.vc @Crowdonomic Facebook.com/Crowdonomic

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ECF Regulatory Framework – Highlights*

(*) Note: Contents in this page are based on SC ECF Public Response Paper and they are still pending parliament final approval. Source: http://www.sc.com.my/wp-content/uploads/eng/html/consultation/140925_PublicResponse_2.pdf

DISCLAIMER: This does not constitute any legal or financial advice

Who: All Malaysia incorporated private companies  

How much: Private Companies (RM 3 mn / RM 5 mn)

Offer: Primary (new share sale); Secondary (existing shares; 2 wks per 6 months)

Advertisements: May advertise to the public but ONLY via the ECF platform

Investors: Retail (RM 50k) + Angel (500k)+ Sophisticated Investors (Uncapped)