CROWDFUNDING IN THAILAND
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A Billion THB Virtual Fund
@Crowdonomic / @ Leo_Shimada
www.crowdonomic.com
Introduction: Crowdonomic Media
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Taking Control of Your FR Destiny
• Mission: Empower Innovators in Asia using the power of Financial 2.0
• Fin-tech, Full portfolio
• SG based; Asia-play
Largest CF in SE. Asia
• L12M: • Larger than other SEA CFPs in terms of
cumulative funds raised• (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
Agenda
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Game Changer
Thailand
Context: Equity Crowdfunding
Impact
CF Genesis…The world has changed a lot in the last 80 years… Fundraising Regulations have not
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No General Solicitation (Advertisement restrictions)
Prospectus Exemptions: Limitations on Advertisement; Investor Types; #
Public Offerings = Costly Disclosures / Prospectuses
That’s an Issue: 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
CF Engine… Ability to Harness the full power of web, social media and technology
Publish Offer Page
Access virtual investor community
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Real Time Distribution
Acceleration Validation
Utilize an Online Platform to Drive Fundraising Efficiency
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Standardized offer templates
‘1 click’ investment participation
All or nothing crowdfunding process
Crowdsource to Enhance Investor Transparency
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Transparent online DD process
Issuers use to efficiently manage multiple tracks
Investors access diverse expertise of crowd
Game Changer for Start-ups and Investors
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Efficient outreach to multiple investors via internet
Startups
$ 1.95 M in 16 minUnlimited potential – record
8 weeksAverage online fundraise period
Centralized deal sourcing platform
Investors
Crowdsourced due diligence community
$1 to 5KBite-sized investments to
diversify investment portfolio
A-Class Investors are joining the movement
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Dave McClure (500 Startups)
Alexis Ohanian (Reddit.com)
Jawed Karim (Youtube)
Dustin Moskovitz(Facebook)
Reid Hoffman(Linkedin)
Jeremy Stoppelman(Yelp)
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Business Survival rate Follow-on Investments
86% vs 59%** 71%* % of all sampled Equity Crowdfunded businesses still operational on ASSOB since 2005** % of companies still in business 3 year after establishment according to US Bureau labor of statistics
*** % of sampled Equity Crowdfunded businesses who have already secured follow on investments (28%) or were in discussions (43%)
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Quality Deal Flow – Greater Scrutiny, Badge of Honor
Tackling Equity Crowdfunding Challenges
No reported cases of Fraud
Shareholders can be bundled up into a vehicle
Low(er) ticket sizes allows for portfolio
diversification
Investors are also chosen; Use lead investors to
inform market
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“I’ll be stuck with managing Thousands of Shareholders (and
forced to IPO)!”
“High Risk of Fraud” “People will lose all of their savings”
The Market will be over-flooded with NVA Capital creating a
bubble
Thailand – The Fundamental Drivers are both Prevalent and Strong
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Social Media Spirit of Giving Natural Base Line growth
Bangkok is the #1 Facebook Capital of
the world with 8.7 million users
Thailand is #1 in South East Asia and #4 globally
for donating money
Year on year growth rate for money raised by
Thai crowdfunding campaigns is 87.1%
Crowdfunding Market Drivers
80%Failure rate
Market Activation Depends a lot on CF Platform Operators
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Typical Operator Business Model
• An abundance of good will• Internet Biz• Variable Fee + Inflection Point• Facebook Lobbying• Part-time teams• Modular technology approach
Winning Success Formula
• Fin-tech business• Professional team• Fully dedicated / Service oriented• Innovative in monetization• Localized tech solutions
Thailand – Smart Industry Development. Leapfrogging other market trends
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CF PlatformFin-tech professional
Firm
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Angel InvestorsLead syndicates
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Venture CapitalCrowdsource LPs; Find Co-Investors
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Retail InvestorsFollow the lead
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CorporatesUse CF as an early prediction market
Thailand – Size of the Prize… 5 to 10 Billion USD
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Angel Investors
HNWI Individuals >
355 BInvestable assets
2-5%Portfolio allocation
$10 BSupply of Capital
1%Adult Population >
$5K-$10KAdult Population
$5 BSupply of Capital
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All major markets considering Equity CF… Need your power to lobby for change in ThailandCountries in Asia debating Equity CF
regulatory frameworksNew Zealand Live Apr. 2014 – Equity / Debt CF
Malaysia Target EoY 2014 – Equity CF
Japan Target mid-2015 – Equity CF
India Proposal review – PCP ended
Australia Proposal review – CAMAC
Singapore Under review - TBD
China Under review - TBD
Hong Kong N/A
Wrap up
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• No. 1 issue – Access to capital
• CF is about taking control of your FR destiny
• Using Technology, Social Media and an Efficient Online Market Place
• Thailand – Super CF fundamentals. CF operator key to unlocking potential
• Equity CF…All ready in Asia. Bring it to Thailand.
• Unlock Billions to build the Next Big Thing from Thailand
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