collaboration schemes between crowdfunding and business angels

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Europe's fastest growing crowd investment platform connecting investors and entrepreneurs www.fundedbyme.com @fundedbyme www.facebook.com/fundedbyme Miguel Ángel L. Trujillo. Country Manager Spain [email protected] - (+34) 626 007 140

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Conference given at Eban winter university 2013, Moscow, Russia.

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Page 1: Collaboration Schemes Between Crowdfunding and Business Angels

Europe's fastest growing crowd investment platform connecting investors and

entrepreneurs

www.fundedbyme.com @fundedbyme www.facebook.com/fundedbyme

Miguel Ángel L. Trujillo. Country Manager [email protected] - (+34) 626 007 140

Page 2: Collaboration Schemes Between Crowdfunding and Business Angels

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WHY CROWDFUNDING?

VC is now what private equity was before. Angels are now what VC was before. And crowdfunding is now what angels were before.”

Hall T. MartinDirector. Texas Entrepreneur Networks, USA“

Page 3: Collaboration Schemes Between Crowdfunding and Business Angels

• Unique Paneuropean, English-language, International Crowdfunding Platform

• Equity & Reward CF• Offices in Sweden, Finland, Denmark,

Norway, Spain and Germany. 4 more offices in Europe and Asia opening soon.

FUNDEDBYME - HIGHLIGHTS

Page 4: Collaboration Schemes Between Crowdfunding and Business Angels

• +€3M raised Since November 2012 for 14 closed deals

• +30,000 investors registered. +100 join every day. ~ 700 active

• Average investment: 1,500€• Average deal: 100-150k€

FUNDEDBYME - HIGHLIGHTS

Page 5: Collaboration Schemes Between Crowdfunding and Business Angels

• VIP Investors (eg Matti Vanhanen, Finland's former Prime Minister, CEO of Finnish Family Firms Association)

• MOUs with Top Business Schools (eg. IE), Incubators…

FUNDEDBYME - HIGHLIGHTS

Page 6: Collaboration Schemes Between Crowdfunding and Business Angels

SUCCESS STORY: VIRTUOUS VODKA

Money raised: Sek1,000,140 / €115,000

Number of Investors: 103

Date Funded: January 2013

Sector: Organic

Page 7: Collaboration Schemes Between Crowdfunding and Business Angels

SUCCESS STORY: BEIBAMBOO

Money raised: €48,209

Number of Investors: 105

Date Funded: August2013

Sector: Baby Goods

Page 8: Collaboration Schemes Between Crowdfunding and Business Angels

• Market validation tool• Intermediary for large funds and a

complement to traditional funding• Filters deals• Creates brand awareness• Equity CF is like a regular business angel

deal… with more investors and with lower tickets (but same quality requested in business case & documentation pack)

WHAT WE CLAIM ABOUT CF

Page 9: Collaboration Schemes Between Crowdfunding and Business Angels

• Expectations! Everybody wants to sign MOUs with us

• Big angels involved. Eg. Johan Jörgensen – Sweden VC of the year 2011

• VC funds offer us their discarded deals, in exchange of preferred option to invest after successful CF

• Crossborder investment happens naturally. Eg. Javier Latorre (Spain) invested 500€ in Eggs Inc. (Sweden)

• Banks are approaching: a large database of investors is an asset

WHAT IS HAPPENING TO US

Page 10: Collaboration Schemes Between Crowdfunding and Business Angels

• Angels should start getting used to having a large number of individuals with equity in their companies.

• Angels should legitimate CF: there is no randomness or desperation in entrepreneurs seeking crowdfunding

• Angels should impulse shareholders agreements designed to come to consensus on big decisions with lots of small private shareholders. Drag and Tag along clauses is a must!

• Crowdfunding could be a guarantee for a bank loan• ROI should be frequently based on a revenue

based investment model (25-30% / yr)

WHAT IT COULD BE

Page 11: Collaboration Schemes Between Crowdfunding and Business Angels

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THANKS!