Crowdfunding for Technology Companies 27 March 2014

Crowdfunding for technology companies

Jude Cook, Founder ShareIn.com

© ShareIn Limited 2014. Contact: Team@sharein.com. ShareIn Limited is authorised and regulated by the Financial Conduct Authority, as an Appointed Representative (607486) of Kession Capital Limited (582160). ShareIn is a founding member of the UK Crowdfunding Association.

1. Introduction & overview of

crowdfunding

2. Is crowdfunding an option for your

business?

3. A focus on equity crowdfunding

4. What you’ll need to do for your

best chance at success

© ShareIn Limited 2014. Contact: Team@sharein.com. ShareIn Limited is authorised and regulated by the Financial Conduct Authority, as an Appointed Representative (607486) of Kession Capital Limited (582160). ShareIn is a founding member of the UK Crowdfunding Association.

• Jude Cook

• Engineering Graduate

• Chartered Accountant

• BT plc Corporate Finance

• Business Plan

• Founded ShareIn 2 years ago

• Launched the beta in Dec 2013

• First success Feb 2014

Co-Founder ShareIn.com

© ShareIn Limited 2014. Contact: Team@sharein.com. ShareIn Limited is authorised and regulated by the Financial Conduct Authority, as an Appointed Representative (607486) of Kession Capital Limited (582160). ShareIn is a founding member of the UK Crowdfunding Association.

• Not a new idea - but internet enables it

• Democratic finance - businesses and

projects of all forms and sizes access to

money while bypassing traditional

banking institutions.

• But it isn’t all about the money –

crowdfunding can be about building a

community.

Overview of crowdfunding

© ShareIn Limited 2014. Contact: Team@sharein.com. ShareIn Limited is authorised and regulated by the Financial Conduct Authority, as an Appointed Representative (607486) of Kession Capital Limited (582160). ShareIn is a founding member of the UK Crowdfunding Association.

• Rewards/Donations – Kickstarter,

Indiegogo, BloomVC

• Debt – P2P – Zopa , P2B – Funding

Circle, ThinCats, Invoice finance –

Market Invoice, Platform Black

• Equity – CrowdCube, Seedrs, ShareIn

3 Main types of crowdfunding

© ShareIn Limited 2014. Contact: Team@sharein.com. ShareIn Limited is authorised and regulated by the Financial Conduct Authority, as an Appointed Representative (607486) of Kession Capital Limited (582160). ShareIn is a founding member of the UK Crowdfunding Association.

Why now? 3 Forces E

co

no

mic

• UK Banks reduced role in SME funding

• Very few companies listing on FTSE or AIM

• Angels Investors are tied into investments unable to exit and that require further rounds

• Low interest rates obtained on savings

• The UK introduced the most amazing tax break ever - SEIS

So

cia

l

• Individuals savings increase in a recession (UK saves >£50bn pa)

• Anti-bank sentiment

• Investors more flexible attitude to investment

• Increasing demand by investors to take control of their own finances

• Need for diversification

Te

ch

no

log

y

• Internet an enabler

• Rise of social networks

• Online financial transaction technology developed

© ShareIn Limited 2014. Contact: Team@sharein.com. ShareIn Limited is authorised and regulated by the Financial Conduct Authority, as an Appointed Representative (607486) of Kession Capital Limited (582160). ShareIn is a founding member of the UK Crowdfunding Association.

1. Introduction & overview of

crowdfunding

2. Is crowdfunding an option for

your business?

3. A focus on equity crowdfunding

4. What you’ll need to do for your

best chance at success

© ShareIn Limited 2014. Contact: Team@sharein.com. ShareIn Limited is authorised and regulated by the Financial Conduct Authority, as an Appointed Representative (607486) of Kession Capital Limited (582160). ShareIn is a founding member of the UK Crowdfunding Association.

• Rewards/Donations – Creative Industries,

Social Enterprise, Consumer Products <£100

• Debt – same criteria as banks e.g.

serviceability of debt, security, min 2 year

trading history, positive monthly cash flows etc

• Equity – Scalable start-ups/early stage, growth

companies

Is crowdfunding an option for

your tech business?

© ShareIn Limited 2014. Contact: Team@sharein.com. ShareIn Limited is authorised and regulated by the Financial Conduct Authority, as an Appointed Representative (607486) of Kession Capital Limited (582160). ShareIn is a founding member of the UK Crowdfunding Association.

1. Introduction & overview of

crowdfunding

2. Is crowdfunding an option for your

business?

3. A focus on equity

crowdfunding

4. What you’ll need to do for your

best chance at success

© ShareIn Limited 2014. Contact: Team@sharein.com. ShareIn Limited is authorised and regulated by the Financial Conduct Authority, as an Appointed Representative (607486) of Kession Capital Limited (582160). ShareIn is a founding member of the UK Crowdfunding Association.

• How does all the legal side of things work?

• Will crowdfunding deter later stage funding?

• My company is cutting edge technology –

the crowd won’t understand - what can I

do?

• Protecting my IP

• Angels or the Crowd or a mix of the two?

• Where to start

A focus on equity crowdfunding

© ShareIn Limited 2014. Contact: Team@sharein.com. ShareIn Limited is authorised and regulated by the Financial Conduct Authority, as an Appointed Representative (607486) of Kession Capital Limited (582160). ShareIn is a founding member of the UK Crowdfunding Association.

Yes No Technology & Health Companies who want to raise >£50k in equity

finance

Non Technology or Health

Companies or companies who want

to raise <£50k

+ OR

Companies that offer an exciting proposition

Companies that lack ambition

+ OR

Up to date business plan and

financial projections

Don’t have a business plan yet

+ OR

Will get fully behind promoting their

pitch

People who think they can just sit

back and the money will roll in

Who can ShareIn help?

© ShareIn Limited 2014. Contact: Team@sharein.com. ShareIn Limited is authorised and regulated by the Financial Conduct Authority, as an Appointed Representative (607486) of Kession Capital Limited (582160). ShareIn is a founding member of the UK Crowdfunding Association.

1. Introduction & overview of

crowdfunding

2. Is crowdfunding an option for your

business?

3. A focus on equity crowdfunding

4. What you’ll need to do for your

best chance at success

© ShareIn Limited 2014. Contact: Team@sharein.com. ShareIn Limited is authorised and regulated by the Financial Conduct Authority, as an Appointed Representative (607486) of Kession Capital Limited (582160). ShareIn is a founding member of the UK Crowdfunding Association.

- Start gathering people/contacts who will be interested in

your pitch NOW

- Identify which type of crowdfunding suits your needs

- Prepare your pitch and test it on people (video/business

plan/strategy)

- Prepare a marketing plan with key influencers primed and

ready.

- Deliver your plan – business contacts, social media,

press contacts, friends, family, blog posts prepared,

updates prepared, press releases, photos ready.

What you’ll need to do for your

best chance at success?

© ShareIn Limited 2014. Contact: Team@sharein.com. ShareIn Limited is authorised and regulated by the Financial Conduct Authority, as an Appointed Representative (607486) of Kession Capital Limited (582160). ShareIn is a founding member of the UK Crowdfunding Association.

• Visit UK Crowdfunding Association

(UKCFA.org.uk)

• Visit NESTA “Crowdingin.com”

Finding out more:

© ShareIn Limited 2014. Contact: Team@sharein.com. ShareIn Limited is authorised and regulated by the Financial Conduct Authority, as an Appointed Representative (607486) of Kession Capital Limited (582160). ShareIn is a founding member of the UK Crowdfunding Association.

Questions

© ShareIn Limited 2014. Contact: Team@sharein.com. ShareIn Limited is authorised and regulated by the Financial Conduct Authority, as an Appointed Representative (607486) of Kession Capital Limited (582160). ShareIn is a founding member of the UK Crowdfunding Association.