-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
1/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
!"# %#&! '()!)*" )%+,*)-% )*
*#./()!)#* .(-012/%1)%34 "-0)**/)%3 %-%5(#3)*!#(#1 *#./()!)#*!"(-/3" !"# .(-01 .,% */..##1 )%
!"# /%)!#1 *!,!#*
:';#:" &&./,*89
$%":'.=>"$'%
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
2/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
041 =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
B9 !"#$%&'&"( ;%*+,-$.,&./ F"-&.",
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
3/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 043
>'%>+=!$'%
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
4/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
045 =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
HDGKHZKHDHUKFCP OFDCDRHI \UG KCGSHK QFPP NOOHK LGCKGUZL CDENGSHK LYCPP \ULFDHLLHL GSH C\FPFGM GN OFDCDRH GSH OUDEFDX XCZbetween owners’ equity and followhND RCZFGCPKFGFRL FD GSH =DFGHE !GCGHL LSNUPE\H CLLUCXHE \M GSH ULH NO RKNQEOUDEFDX GN KCFLH \NGS EH\G CDEHbUFGM OFDCDRH FD GSH =DFGHE ]FDXENY UDEHK C LFYFPCK OFDCDRFCPYCKVHG LGKURGUKH CDE KHXUPCGNKM OKCYHQNKV< "SH ;KFGFLSLHRUKFGFHL RKNQEOUDEFDX YCKVHG FL XKNQFDX HgZNDHDGFCPPM UDEHKKUPHL LFYFPCK GN GSNLH PHXFLPCGHE \M >NDXKHLLI \UG PCKXHPMEHJHPNZHE GSKNUXS ZKFJCGH NKEHKFDX< "SH =DFGHE ]FDXENYLGCDEL NUG XPN\CPPM CL GSH RNUDGKM YNLG LURRHLLOUP FD GSH
EHJHPNZYHDG NO GSFL DCLRHDG FDEULGKMI CDE QFGS PNQ FDRFEHDRHLNO OKCUE'+=9:'?.(=%.$%@ %#"?':] I :#^$#? '(
>:'?.(=%.$%@ :#@=+*"$'% -'PFJHK @CoECI "CDoC *LRSHD\HRVh(PNKCDXHI m
"SNYCL %CXHP HEL
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
5/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 04T
Comment examines the development of the United Kingdom’sOUDRGFNDFDX \UG LGFPP FYYCGUKH LHRUKFGFHL RKNQEOUDEFDX YCKVHG<#YZFKFRCP HJFEHDRH ZKNJFEHE SHKH LUXXHLGL GSCG C EMDCYFR
LHRUKFGFHL RKNQEOUDEFDX YCKVHG YFXSG MHG HYHKXH FD GSH=DFGHE !GCGHL \M LSNQFDX SNQ ;KFGFLS RKNQEOUDEFDX HJNPJHEQFGSFD CD HJHKhRSCDXFDX KHXUPCGNKM HDJFKNDYHDG< "SFL LSNUPEDNG FYZPM GSCG GSFL >NYYHDG CEJNRCGHL ONK C QSNPHLCPHCENZGFND NO ;KFGFLShstyle crowdfunding or for that nation’sZNPFRFHL< :CGSHKI GSH HJFEHDRH ZKHLHDGHE SHKH LUZZNKGL GSHCKXUYHDG GSCG RKFGFRL LSNUPE DNG QKFGH NOO GSH HYHKXHDRH NO CLHRUKFGFHL RKNQEOUDEFDX YCKVHG FD GSH =DFGHE !GCGHL<
"SH LURRHLL NO LHRUKFGFHL RKNQEOUDEFDX FD GSH =DFGHE!GCGHL QFPP DNG RNYH HCLM< *L HgZPCFDHE FD 8CKG $$I PFYFGCGFNDLND GSH CYNUDG NO RCZFGCP C \ULFDHLL RCD KCFLH GSKNUXS
RKNQEOUDEFDX CDE NGSHK KHXUPCGNKM SUKEPHL QFPP PFVHPM EHGHKYCDM ZNGHDGFCP FDJHLGNKL CDE HDGKHZKHDHUKL< 8NKGCP NZHKCGNKLYCM LGKUXXPH GN NOOHK C RKFGFRCP YCLL NO RNYZCDFHL GSCGFDJHLGNKL QFPP \H QFPPFDX GN LUZZNKG&*:. !?*:" m ;:_*% p&*%@I " :$!# '(
(="=:# ($%*%>#7 " =&9*:]$%@ :#8':" A
-1403/ `SHKHFDCOGHK >'++$%!I !?*:" m p&*%@I * +"#:%*"$^# ($%*%>#
;#%>&9*:]$%@ :#8':"d -ZKNJFEFDX OFDCDRFCP CDCPMLFL NO GSH ;KFGFLS LHRUKFGFHLRKNQEOUDEFDX YCKVHG/<
99 !"" &.-%5 8CKG $$$ -HgZPCFDFDX LHRUKFGFHL RKNQEOUDEFDX FD GSH =DFGHE]FDXENY/< ;M LGCVHSNPEHKLI GSFL >NYYHDG KHOHKL ZKFYCKFPM GN FDJHLGNKLI
\ULFDHLLHL LHHVFDX RCZFGCPI OFDCDRFCP FDGHKYHEFCKFHL PFDVFDX GSHLH ZCKGFHLI CDEKHXUPCGNKL< 'GSHK LGCVHSNPEHKL FDRPUEH PHXCP ZKCRGFGFNDHKLI CRCEHYFRLI CDE GSH
*YHKFRCD ZU\PFR FD XHDHKCP QSNLH \HDHOFGL CKH PHLL HCLFPM YHCLUKHE FD GHKYL NO oN\
RKHCGFND CDE HRNDNYFR XKNQGS
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
6/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
04a =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
ONRULHE ND GSH LURRHLL NO RKNQEOUDEFDX ZNKGCP NZHKCGNKL CDELHRUKFGFHL \KNVHKLI10 GSHLH GQN GMZHL NO OFDCDRFCPFDGHKYHEFCKFHL — QSNLH ZKFYCKM OUDRGFND FL GN PFDV \ULFDHLLHL
GN RCZFGCP11 — QFPP PFVHPM EHJHPNZ LRCPC\PH YNEHPL GN YCgFYFWHGSHFK ZKNOFGC\FPFGM FD LFYFPCK QCML GN GSHFK ;KFGFLSRNUDGHKZCKGL
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
7/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 046
SHFXSGHDHE \M GSH DHQ HgHYZGFNDL OKNY PNDXhLGCDEFDXLHRUKFGFHL PCQL FD GSH =DFGHE !GCGHL CDE GSH =DFGHE ]FDXENY<(NKYHK !#> >SCFKQNYCD 9CKM !RSCZFKN JNFRHE GSHLH RNDRHKDLwhen stating, “[t]oo often, investors are the target of fraudulentschemes disguised as investment opportunities.”16 *L GSFL>NYYHDG HgZPCFDLI YCDM RKNQEOUDEFDX LGCVHSNPEHKL CXKHHQFGS 9L< !RSCZFKN< $D KHLZNDLH GN GSH ZNGHDGFCP OKCUEI GSHMHgZHRG GSHFK XNJHKDYHDG GN ZKNJFEH C QHPPhEHOFDHE KHXUPCGNKMHDJFKNDYHDGI QSFPH LFYUPGCDHNULPM ONLGHKFDX EHJHPNZYHDG NO CLHRUKFGFHL RKNQEOUDEFDX YCKVHG< ]CKHD ]HKKFXCDI PHXCP EFKHRGNKNO ;KFGFLS HbUFGM RKNQEOUDEFDX ZNKGCP !HHEKL ZKHLHDGHE SHKcompany’s view that “the average retail investor should have
GSH OKHHENY GN ZCKGFRFZCGH FD `LHRUKFGFHLd RKNQEOUDEFDXIprovided they are appropriately protected.”17
8CKG $ NO GSFL >NYYHDG \HXFDL QFGS C ZKFYHK ND SNQRKNQEOUDEFDX NZHKCGHLI CDE SNQ FG LHKJHL GN \KFEXH GSH OUDEFDXgap between owners’ equity and traditional means of capitalONKYCGFND< 8CKG $$ LUKJHML GSH RUKKHDG LGCGH NO LHRUKFGFHL
RKNQEOUDEFDX FD GSH =DFGHE !GCGHL CG GSFL HCKPM oUDRGUKHIQFGSFD GSH RNDGHgG NO NGSHK KHRHDG RSCDXHL GN OHEHKCP LHRUKFGFHLPCQL< 8CKG $$$ HgCYFDHL LHRUKFGFHL RKNQEOUDEFDX FD GSH =DFGHE]FDXENY QSHKH C EMDCYFR YCKVHG RNDGFDUHL GN EHJHPNZ QFGSFDCD HJNPJFDX KHXUPCGNKM KHXFYH< *EEFGFNDCPPMI 8CKG $$$ NOOHKL CJFLFND NO QSCG GSFL DHQ YHCDL NO OFDCDRH YFXSG PNNV PFVH GN
*YHKFRCD HDGKHZKHDHUKL CDE FDJHLGNKL< 8CKG $^ HgGKCZNPCGHLOKNY GSH ;KFGFLS LHRUKFGFHL RKNQEOUDEFDX HgZHKFHDRH GSCG C
LFYFPCKPM KFLVhZKNDH MHG JFC\PH YCKVHG FL ZNLLF\PH FD GSH =DFGHE!GCGHLI CDE FD ZCKGFRUPCKI ONK EH\G RKNQEOUDEFDX< "SFL>NYYHDG RNDRPUEHL QFGS LHJHKCP ZKHEFRGFNDL ONK GSH LHRUKFGFHLRKNQEOUDEFDX YCKVHG FD GSH =DFGHE !GCGHL \CLHE ND GSH QNKV
ZKHLHDGHE SHKH<
16< .CJFE !< &FPWHDKCGSI A@B! C#' ;*$2, J"8*1" 4.1"('*% P%*'"#'&*.(D !?;
;05&% !#053&%* L5%.(I ? *!&
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
8/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
04A =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
$< >:'?.(=%.$%@ ; *!$>!
8KFNK GN LUKJHMFDX LHRUKFGFHL RKNQEOUDEFDX FD GSH =DFGHE
!GCGHL CDE =DFGHE ]FDXENY FD 8CKGL $$ CDE $$$I GSFL >NYYHDG\HXFDL FD LHRGFND * QFGS C ONUDECGFNDCP LUYYCKM NORKNQEOUDEFDX GN ZKNJFEH RNDGHgG ONK GSFL DHQ CDE EMDCYFRYHCDL NO RCZFGCP ONKYCGFND RNDRPUEHL QFGS SNQ GSHRKNQEOUDEFDX YNEHP ZKNZNLHL GN \KFEXH GSH HgFLGFDX OUDEFDXgap between an entrepreneur’s personal sources of capital andGKCEFGFNDCP ONKYL NO OFDCDRFDX<
C9 F"-&.&./ ;%*+,-$.,&./
8KNOHLLNK !GHJHD ;KCEONKE EHOFDHL RKNQEOUDEFDX CL KCFLFDXmoney “through relatively small contributions from a largenumber of people,” usually through the Internet by way of an
NDPFDH FDGHKYHEFCKM
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
9/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 04c
“platforms” or “portals” CDE NDPFDH LNRFCP YHEFC:'?.(=%.$%@ cI 05 -1401/I 515&2562" 5' SGGZ722QQQKNQEOUDEFDX)(KCYHQNKV)'RG)1401
24< .# ;=_!#:# #" *+
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
10/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
004 =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
DNYFDCP XNNE LFYFPCK NK PNQHK FD JCPUH GSCD GSH CYNUDGENDCGHEE('5%'"% \*%" !"%&*$(27[ ];( !0*$2,D :**I 8#&=; -!HZ< aI 1401/ISGGZ722QQQ'%'9_ -%NJ< 1TI 1403/I SGGZ722QQQ:'?.(=%.$%@ #f=$"_ $%^#!"9#%" $%"'
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
11/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 000
provides a useful definition of securities crowdfunding as “theLCPH NO UDKHXFLGHKHE LHRUKFGFHL NJHK GSH $DGHKDHG GN PCKXHDUY\HKL NO KHGCFP FDJHLGNKLI HCRS NO QSNY NDPM FDJHLGL C LYCPPdollar amount.”33 !HRUKFGFHL RKNQEOUDEFDX FL OUKGSHK LU\EFJFEHEFDGN HbUFGM RKNQEOUDEFDX CDE EH\G RKNQEOUDEFDX'++$%! m 8$#::*]$!I ^#%"=:# >:'?.dI515&2562" 5' SGGZ722QQQ:'?.I ($3%5 DNGH 31I CG 06 – 0c
-HgZPCFDFDX GSH CGGKF\UGHL NO HbUFGM RKNQEOUDEFDX/
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
12/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
001 =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
LHRNDECKM YCKVHG ONK GSH QFEHPMhEFLGKF\UGHEI LYCPP HbUFGMLGCVHL LNPE GSKNUXS RKNQEOUDEFDX$:>+# 00 – 01 -*ZKFP 1403/ `SHKHFDCOGHK 8$#::*]$! m
>'++$%!I ; *%]$%@dI 515&2562" 5' SGGZ722QQQNYYHDG CXXKHXCGHL GSH GHKYL FDGN EH\G RKNQEOUDEFDX<
41< >'++$%! m 8$#::*]$!I ^#%"=:# >:'?.I ($3%5 DNGH 31I CG 3 – 5<429 !"" & *:'+. !
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
13/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 003
RKNQEOUDEFDX YNEHP GN GKCEFGFNDCP YHCDL NO LYCPP \ULFDHLLRCZFGCP ONKYCGFND< $G ZNGHDGFCPPM \KFEXHL GSH OUDEFDX XCZbetween an owner’s equity and traditional financing while
HDLUKFDX GSH YCDCXHYHDG GHCY KHGCFDL RNDGKNP NO GSH\ULFDHLL:'?.I ($3%5 DNGH 31I CG 5 -CKGFRUPCGFDX GSH
RNDRHKD ONK HDGKHZKHDHUKL FD YCDCXFDX C PCKXH EFOOULH XKNUZ NO LSCKHSNPEHKL/<47< 8$#::*]$! m >'++$%!I ; *%]$%@I ($3%5 DNGH 54I CG 36 -EHLRKF\FDX LUKJHM
OFDEFDX GSCG LHJHDGMhLHJHD ZHKRHDG NO \ULFDHLLHL GSCG ULHE ;KFGFLS EH\GRKNQEOUDEFDX ZNKGCP (UDEFDX >FKRPH QNUPE RNDLFEHK EH\G RKNQEOUDEFDX CXCFD
\HONKH LHHVFDX C \CDV PNCD/<48< !RSQCKGWI ($3%5 DNGH 0cI CG 05AA<
499 4,9 8KNOHLLNK !RSQCKGWI SNQHJHKI LUXXHLGL GSCG CKGOUP EKCOGFDX NO EH\G
CXKHHYHDGL YCM LHKJH GN YFGFXCGH GSH HDGKHZKHDHUK’L KFLV NO EHOCUPG< 4,9 CG 05Ac
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
14/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
005 =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
EHYCDE C SFLGNKM NO RCLS OPNQL NK RNPPCGHKCP OKNY GSH RNYZCDMprior to lending, and funding portals may use a company’sSFLGNKM CL ZCKG NO FGL LRKHHDFDX RKFGHKFC$:>+#I SGGZL722QQQ
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
15/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 00T
YHCDL NO HDGKHZKHDHUKFCP OFDCDRHI LURS CL \CDV PHDEFDX CDEJHDGUKH RCZFGCP
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
16/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
00a =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
angels” in an eff NKG GN N\GCFD OUDEFDX ZKFNK GN CRbUFKFDX JHDGUKHRCZFGCP *8:'?.I ($3%5 DNGH 31, at 17−18 (citing angel and venture capitalKHLHCKRS FD GSH =DFGHE ]FDXENY/<
629 !"" &.-%5 8CKG $$ CDE 8CKG $$$ -EHLRKF\FDX PFYFGCGFNDL ND LHRUKFGFHLRKNQEOUDEFDX \M KHXUPCGNKL FD GSH =DFGHE !GCGHL CDE =DFGHE ]FDXENYI
KHLZHRGFJHPM/[ ("" 52(* &.-%5 8CKG $$$ -ZKNJFEFDX HJFEHDRH NO SNQ ;KFGFLS LHRUKFGFHL
RKNQEOUDEFDX \KFEXHL GSH OUDEFDX XCZ/
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
17/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 006
G&/$%" ^R ?5%27 !'5/" G&.5.#&./ — !"#$%&'&"( ;%*+,-$.,&./G&22&./ '0" G$.,&./ H5363
:HRHDG ECGC LUXXHLGL GSCGI UDPHLL LGCKGUZL CDE LYCPP\ULFDHLLHL OFG C QHPPhEHOFDHE ZKNOFPHI JHDGUKH RCZFGCP OFKYL YCMDNG FDJHLG FD GSHY:'?.I ($3%5 DNGH 31, at 17−18.64< 8:$>#?*"#:&'=!#>''8#:! m % *"’+ ^#%"=:# > *8$"*+ * !!’%I
9'%#_ ":## :#8':" — f5 14032 (=++h _#*: 1403 -1405/I 515&2562" 5'SGGZ722QQQ'%@& !#:^
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
18/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
00A =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
EFOOFRUPG ONK LYCPP \ULFDHLLHL GN N\GCFDI OUKGSHK HgCRHK\CGFDXsmall businesses’ struggle to access capital beyond their friendsCDE OCYFPM<
(NK GHRSDNPNXM CDE NGSHK LGCKGUZL QFGS GSH ZNGHDGFCP ONKSFXS FDFGFCP KHJHDUH XKNQGS \UG PFGGPH FDFGFCP RCLS OPNQILHRUKFGFHL RKNQEOUDEFDX SCL XKCJFGCGHE GNQCKEL HbUFGMFDJHLGYHDGL \M \UFPEFDX ND GSH HLGC\PFLSHE KHQCKE YNEHP FDLHJHKCP QCML:#*"$'% 3−12 (2014), 515&2562" 5'
SGGZ722OCL:'?.I ($3%5 DNGH 31I CG 0c -“#bUFGM
RKNQEOUDEFDX YCM SCJH GSH ZNGHDGFCP GN NOOHK CD CPGHKDCGFJH NKI FD LNYH RCLHLI
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
19/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 00c
>NDJHKLHPMI YCDM LYCPP \ULFDHLLHL CKH GNN LYCPP CDE PCRVGSH XKNQGS GKCoHRGNKM GN QCKKCDG FDJHLGYHDG \M CDXHP FDJHLGNKLNK JHDGUKH RCZFGCP OFKYL] #" *+:'?.$%@ $%7 &'? " =] ’! ;=!$%#!!#!I
>&*:$"$#!I @'^#:%9#%"I *%. ($%*%>$*+ ! _!"#9 > *% 9 *]# " 9'!" '(
>:'?.(=%.$%@ 00 -1401/ `SHKHFDCOGHK ; *#>] #" *+:'?.$%@ $%dI 515&2562" 5'SGGZ722QQQNPPFDLD ($3%5 DNGH 6aNPPFDL CKH %HLGC KHLHCKRSHKL CDE
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
20/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
014 =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
$$< !#>=:$"$#! >:'?.(=%.$%@ $% " =%$"#. !"*"#!
"SFL 8CKG \KFHOPM EFLRULLHL GSH ZNLGhB';! *RG KHXUPCGNKM
HDJFKNDYHDG ONK LHRUKFGFHL RKNQEOUDEFDX FD GSH =DFGHE !GCGHLCDE FGL CPGHKDCGFJHL LGCGHL GSCG GSH ZKFYCKM XNCP NO LHRUKFGFHL KHXUPCGFND FD GSHUnited States is to protect investors by “prohibit[ing] deceit,YFLKHZKHLHDGCGFNDLI and other fraud in the sale of securities.”79 $D CD HOONKG GN CRSFHJH GSFL XNCPI GSH !#>I CL EFKHRGHE \M GSH!HRUKFGFHL *RG NO 0c33 -!HRUKFGFHL *RG/I80 KHbUFKHL RNYZCDFHL GN
RNYZPM QFGS CD HgZHDLFJH CDE GFYHhRNDLUYFDX KHXFLGKCGFNDZKNRHLL ZKFNK GN LHPPFDX LHRUKFGFHL GN GSH ZU\PFR
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
21/63
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
22/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
011 =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
:562" SR P%&85%7 J"/&('%5'&*. ?
QQQ
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
23/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 013
Exemption Aggregate
Offering
Limitations
Number of
Investors
Investor
Qualifications
Limits on
Manner of
Offering
Crowdfunding Exemption (to be implemented)
Section
4(a)(6)
$1 million
over 12
month
period
preceding
date of
transaction
Unlimited Aggregate
amount sold
under any
exemption
limited to:
Investor
income / net
worth <
$100,000, then
limited to thegreater of
$2,000 or 5%
of income or
net worth;
Investor
income / net
worth >
$100,000, then
limited to 10%
of annual
income or net
worth
General
solicitation to
all potential
investors
permitted;
preempts state
regulation
:UPH T4a ZKNJFEHL LFXDFOFRCDG CEJCDGCXHL NJHK NGSHKHgFLGFDX KHXFLGKCGFND HgHYZGFNDLI YCVFDX FG GSH RPHCK OCJNKFGHCYNDX FLLUHKL CDE FDGHKYHEFCKFHL ONK ZKFJCGH ZPCRHYHDGL
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
24/63
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
25/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 01T
GN ZNGHDGFCPPM SFXS FDGHKHLG KCGHL EHZHDEFDX ND GSH ONKY NORNPPCGHKCP ZKNJFEHE \M GSH \ULFDHLLNDXKHLL KHCRGHE FD 1401 GN GSH EFOOFRUPGM LYCPP \ULFDHLLHLOCRHE FD CRRHLLFDX RCZFGCP \M ZCLLFDX GSH B';! *RG
SFLGNKM NO GSH LHRGFND 5-C/-a/ RKNQEOUDEFDX HgHYZGFND/< "SH B';! *RG KHbUFKHLGSCG GSH !#> FYZPHYHDG DHQ KUPHL HLGC\PFLSFDX C KHXUPCGNKM OKCYHQNKV \HONKHGSH RKNQEOUDEFDX HgHYZGFND RCD XN FDGN HOOHRG< "SH !#> NOOHKHE FGL ZKNZNLHE KUPHL
FD %NJHY\HK 1403 CDE HgZHRGL GN FLLUH OFDCP KUPHL FD 'RGN\HK 1405< >KNQEOUDEFDXI6A (HE< :HX< aaI516 -ZKNZNLHE %NJ< TI 1403/ -GN \H RNEFOFHE CG 06 >
\PUHLVM
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
26/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
01a =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
!HRUKFGFHL *RG SCJH LZHRFOFR PFYFGCGFNDL CDE FYZNLH LFXDFOFRCDGKHbUFKHYHDGL ND RKNQEOUDEFDX FDGHKYHEFCKFHLI CL LUYYCKFWHEFD "C\PH 0 C\NJH
102< ;KCEONKEI P%*8&(" =.-$2-&22",I ($3%5 DNGH 6AI CG 10A -CKXUFDX GSCG ZCKGL NOGSH HgHYZGFND CKH GNN LGKFRG NK GNN PHDFHDG/[ "SNYZLND m +CDXHJNNKGI ($3%5 DNGH aI CG 0a4T -HgZPCFDFDX GSCG FLLUHKL QFPP DNG RSNNLH GSFL YHCDL NO OFDCDRH \HRCULH GSH
HgHYZGFND’L YCDM KHLGKFRGFNDL YCVH FG ZKNSF\FGFJHPM HgZHDLFJH/< * GSNKNUXSRKFGFbUH NO GSH RKNQEOUDEFDX HgHYZGFND CDE GSH B';! *RG FL \HMNDE GSH LRNZH NOGSFL >NYYHDG<
103< 0T =< l 66K-\/-5/->/[ 0T =< l 66E-C/-a/-;/-F/<1049 Table 690: Money Income of Households−Percent Distribution by Income
I"1"2D J5#"D 5., a&(35. @%&/&.D &. ;*.('5.' V^NNTX F*225%(R STTN '* 144cI =
>#%!=! ;=:#*=I SGGZ722QQQ
;KCEONKEI P%*8&(" =.-$2-&22",I ($3%5 DNGH 6A, at 197−98 (providing a concise
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
27/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 016
RKNQEOUDEFDX RNUPE \H UDEHKYFDHE \M GSH LZHHE CG QSFRS CXKNQFDX LGCKGUZ YFXSG \UKD GSKNUXS n0 YFPPFND CDE GSH RNLGLCLLNRFCGHE QFGS FLLUFDX LHRUKFGFHL UDEHK GSH RKNQEOUDEFDX
HgHYZGFND
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
28/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
01A =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
"SH FLLUHKI CEEFGFNDCPPMI RCDDNG CEJHKGFLH FGL NOOHK ONKRKNQEOUDEHE LHRUKFGFHLOUDEFDX ZNKGCP/<1209 4,9 l 6AR-C/-5/ – -T/< *D HgCYFDCGFND NO GSH C\FPFGM NO LHRUKFGFHL \KNVHKh
EHCPHKL GN ULH GSH LHRGFND 5-C/-a/ LHRUKFGFHL RKNQEOUDEFDX HgHYZGFND FL \HMNDE GSH
LRNZH NO GSFL >NYYHDG CL GSH ONRUL SHKH FL ND SNQ LYCPP \ULFDHLLHL QFPP ULH GSHHgHYZGFND GN CRbUFKH RCZFGCPI CDE DNG ND GSH GMZH NO FDGHKYHEFCKM GSHM ULH< !"" >NSDI ($3%5 DNGH 04AI CG 053c – 50 -RKFGFbUFDX B';! *RG KHbUFKHYHDGL ND \KNVHKh
EHCPHKL CDE LZHRUPCGFDX GSCG OHQ NO GSHLH FDGHKYHEFCKFHL QFPP ULH GSHRKNQEOUDEFDX ZKNJFLFNDL \HRCULH NO ZNGHDGFCP PFC\FPFGM/< B$' ("" ;KCEONKEI P%*8&("
=.-$2-&22",I ($3%5 DNGH 6AI CG 14T -CKXUFDX GSCG GSH B';! *RG ZKNJFEHL \KNVHKh
EHCPHKL C RNYZHGFGFJH CEJCDGCXH NJHK OUDEFDX ZNKGCPL/<121< 0T =< l 6AR-C/-A4/[ ("" 52(* A$83('5%' @$% B$(&."(( !'5%'$3( C#'
G%"K$".'27 C(E", _$"('&*.( C6*$' ;%*+,-$.,&./ 4.'"%8",&5%&"(I !#>&'99’% -9CM 6I 1401/I SGGZ722QQQ
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
29/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 01c
YCGRSYCVHK \HGQHHD GSH FLLUFDX RNYZCDM CDE FDJHLGNKLNDXKHLL QCL ZKFYCKFPM YNGFJCGHE CL C OKCUE EHGHKKHDG/<
124< 0T =< l 6AR-C/-A4/ -KHXUPCGFDX ZNKGCP NZHKCGNKL/[ ("" /"."%5227;KCEONKEI P%*8&(" =.-$2-&22",I ($3%5 DNGH 6AI CG 14T – 4A -EHLRKF\FDX KHXUPCGFNDL>NDXKHLL FYZNLHE ND ZNKGCPL UDEHK GSH B';! *RG RKNQEOUDEFDX HgHYZGFND[ GSHLH
FDRPUEH KHbUFKHYHDGL GN HDONKRH GSH FLLUHK ’L YCDECGNKM KHZNKGFDXI RNDEURG EUHEFPFXHDRHI CDE ZKNSF\FG GSH FDGHKYHEFCKM’L ZKFDRFZCPL OKNY FDJHLGFDX FD GSH FLLUHKI
oULG GN PFLG C OHQ/<125< 0T =< l 6AR-C/-A4/-*/ – -;/ -ZKNSF\FGFDX FDJHLGYHDG CEJFRH CDE
LNPFRFGCGFND KHLZHRGOUPPM/<
1269 4,9 l 66Eh0-C/-3/ – -5/< "SH !#> SCL MHG GN HLGC\PFLS C LGCDECKE ONKHEURCGFND CDE CZZHCKL QFPPFDX GN CPPNQ ZNKGCPL GN EHJHPNZ GSFL CLZHRG ND GSHFK NQD<
1279 4,9 l 6AR-C/-A4/ -EHOFDFDX C “OUDEFDX ZNKGCP” ONK ZUKZNLHL NO GSH !HRUKFGFHL *RG/<
1289 4,9 l 66Eh0-C/-T/ -KHbUFKFDX RKNQEOUDEFDX FDGHKYHEFCKFHL GN GCVH OKCUEh
ZKHJHDGFJH YHCLUKHL CL ZKNYUPXCGHE \M GSH !#>/
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
30/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
034 =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
>NYYHDG DHgG HgCYFDHL LHRUKFGFHL RKNQEOUDEFDX FD GSH =DFGHE]FDXENY GSKNUXS GSH PHDL NO KHXUPCGFND FD GSH =DFGHE !GCGHL<8CKG $^ GSHD YCVHL GSH RCLH GSCG LHRUKFGFHL RKNQEOUDEFDX FD
GSH =DFGHE !GCGHL YCM MHG LURRHHEI EHLZFGH GSH KHXUPCGNKMSUKEPHL OCRFDX GSH FDEULGKM EFLRULLHE SHKH=:$"$#! >:'?.(=%.$%@ $% * >"$'%7 &'? " =%$"#.] $%@.'9 $! +#^#:*@$%@ !#>=:$"$#! >:'?.(=%.$%@ "'!8=: ;=!$%#!! .#^#+'89#%"
*YHKFRCD HDGKHZKHDHUKLI GSHFK PHXCP CDE OFDCDRFCP CEJFLNKLICDE NGSHK LGCVHSNPEHKL LSNUPE RPNLHPM HgCYFDH GSH =DFGHEKingdom’s securities crowdfunding market as the SEC’sFYZPHYHDGCGFND NO GSH RKNQEOUDEFDX HgHYZGFND EKCQL DHCK GSHD ZKNJFEH EHGCFPHEHgCYFDCGFNDL NO HbUFGM CDE EH\G RKNQEOUDEFDXI KHLZHRGFJHPMI CL
GSHM NZHKCGH FD GSH =DFGHE ]FDXENY< ?FGS GSH LGCXH LHGI 8CKG$^ GSHD NOOHKL *YHKFRCD RKNQEOUDEFDX LGCVHSNPEHKLRNDRPULFNDL C\NUG SNQ C LHRUKFGFHL RKNQEOUDEFDX FDEULGKMYFXSG LURRHHE FD GSH =DFGHE !GCGHL \CLHE ND GSH ;KFGFLS
HgZHKFHDRH<
C9 :0" !"#$%&'&"( ;%*+,-$.,&./ ?.1&%*.8".' &. '0"=.&'", >&./,*8
0< :HXUPCGFNDL *OOHRGFDX !HRUKFGFHL >KNQEOUDEFDX
"SH =DFGHE ]FDXENY ZKHLHDGL C UDFbUH KHXUPCGNKM
HDJFKNDYHDGI CPGSNUXS FG KHYCFDL LFYFPCK HDNUXS GN GSH =DFGHE!GCGHL GN EKCQ RNDRPULFNDL C\NUG QSCG LHRUKFGFHL RKNQEOUDEFDX
1299 !"" ($3%5 8CKG $$
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
31/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 030
RNUPE PNNV PFVH FD GSH *YHKFRCD YCKVHG< *L QFGS LHRUKFGFHLRKNQEOUDEFDX FD GSH =DFGHE !GCGHLI KHXUPCGFND NO GSFL DHQOFDCDRFDX YNEHP FL bUFRVPM HJNPJFDX FD GSH =DFGHE ]FDXENY<
"SFL LHRGFND CEEFGFNDCPPM ZNFDGL GN CD HYHKXFDX RNDJHKXHDRH\HGQHHD ;KFGFLS CDE *YHKFRCD KHXUPCGFND NO LHRUKFGFHLRKNQEOUDEFDX ONRULHE ND FDJHLGNK ZKNGHRGFND< "SH =DFGHEKingdom’s securities regulator, the Financial Conduct
*UGSNKFGM -(>*/I ZU\PFLSHE DHQ KUPHL FD 9CKRS 1405 GSCGZKNJFEH LGKURGUKHE KHXUPCGFND NO LHRUKFGFHL RKNQEOUDEFDX FD GSHONKY NO 8NPFRM !GCGHYHDG 8! 0525*FL CD FDEHZHDEHDG NKXCDFWCGFND OUDEHE HgRPULFJHPM \M GSH OHHL FGRSCKXHL KHXUPCGHE OFKYL* QFGS LFXDFOFRCDGPM YNKH KHLZNDLF\FPFGMGSCD FGL ZKHEHRHLLNK CXHDRFHL" * ="&" * ="&* FL GSH CXHDRM YNLG RPNLHPM KHLHY\PFDX GSH =
!#> QFGS KHXCKE GN NJHKLFXSG KHLZNDLF\FPFGM CDE HDONKRHYHDG ZNQHKI CL HgZPCFDHE
FD ($3%5 DNGH 6c CDE CRRNYZCDMFDX GHgG
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
32/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
031 =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
CDE RNDLUYHK ZKNGHRGFND PCQL GSCG ZHKYFGGHE GSFL DHQ YHCDLNO \ULFDHLL RCZFGCP ONKYCGFNDI \UG QFGS FDHOOFRFHDG KHXUPCGNKMNJHKLFXSG*I GSKNUXS FGL 8NPFRM!GCGHYHDGI KHbUFKHL GSCGI ZKFNK GN NOOHKFDXI LHRUKFGFHLRKNQEOUDEFDX FDGHKYHEFCKFHL RNYZPM QFGS FGL ZKHhHgFLGFDX KUPHLKHXCKEFDX KFLV QCKDFDXLI EFLRPNLUKHLI CDE EUH EFPFXHDRHrequirements for “nonhreadily realizable investments.”136
"SH 8NPFRM !GCGHYHDG CEEFGFNDCPPM ZPCRHL DHQ PFYFGL NDFDJHLGNKL FD RKNQEOUDEHE LHRUKFGFHL* ’L 8NPFRM !GCGHYHDG CYHDEHEFGL NDPFDH SCDE\NNVI FDRPUEFDX GSFL XPNLLCKM GHKY< G&.5.#&52 ;*.,$#' C$'0*%&'7
a5.,6**EI ($%'%.=>" * ="'']
-1405/I 515&2562" 5' SGGZ722YHEFC';!';! ENRUYHDG RNEFOFHL GSH (>* ’L 8NPFRM
!GCGHYHDG CDE FL ZCKG NO GSH “;ULFDHLL !GCDECKEL” LHRGFND NO GSH (>* ’L NDPFDHa5.,6**E< a5.,6**EI ($3%5 DNGH 03a';!I ($3%5 DNGH 03AI ll 04
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
33/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 033
CYNUDG GSCG KHLGKFRGHE FDJHLGNKL YCM FDJHLGI GSH CXHDRM ENHLDNG PFYFG GSH CYNUDG GSCG \NGS SFXS DHG QNKGS CDELNZSFLGFRCGHE FDJHLGNKL YCM FDJHLG FD RKNQEOUDEHE
LHRUKFGFHL:'?.>=;#I SGGZL722QQQ* EHOFDHL C SFXS DHG QNKGS FDJHLGNK CL
LNYHNDH QFGS CDDUCP FDRNYH NO CG PHCLG u044I444 -n0aAI444/ NK DHG CLLHGL NO CG
PHCLG u1T4I444 -n50cI444/< 4,9 l 5
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
34/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
035 =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
"SH DHQ KUPHL UDFbUHPM COOHRG EH\G RKNQEOUDEFDX FD LHJHKCPQCML< "SH 8NPFRM !GCGHYHDG GKCDLOHKL EH\G RKNQEOUDEFDX OKNYKHXUPCGFND UDEHK C LHZCKCGH CXHDRMI CDE XFJHL GSH (>*
KHXUPCGNKM CUGSNKFGM NJHK CPP LHRUKFGFHL RKNQEOUDEFDX* KUPHL FYZNLH YFDFYUY RCZFGCPKHbUFKHYHDGL ONK ZNKGCP NZHKCGNKL CDE KHbUFKH CPGHKDCGFJHLHKJFRFDX CKKCDXHYHDGL LSNUPE GSH ZNKGCP OCFP* CLLUYHE EUGFHL CL KHXUPCGNK NJHK EH\G
RKNQEOUDEFDX CL FG CZZPFHL GN \ULFDHLLHL OKNY GSH 'OOFRH NO (CFK "KCEFDXI HOOHRGFJH *ZKFP 0I 1405< :0" G;C !"'( @$' &. F"'5&2 a*+ &' L&22 J"/$25'" ;*.($8"% ;%",&'D
4.#2$,&./ P57,57 I".,&./D L0". &' :5E"( @1"% J"(3*.(&6&2&'7 &. C3%&2 ^NS` I ($%'%.=>" * ="&< -'RG< 3I 1403/I SGGZ722QQQ';!I ($3%5 DNGH 03AI l 05 KHXFLGKCGFND GN #= ZKNLZHRGUL KHbUFKHYHDGLI LHH :N\HKGC !< ]CKYHPI :0" ?=;0522"./" '* '0" !?; I 30 (':.&*9 $%"’+ +
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
35/63
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
36/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
03a =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
%NG GN \H NUGENDHI HbUFGM RKNQEOUDEHKL KHRHFJH LFXDFOFRCDGGCg FDRHDGFJHL ONK FDJHLGFDX FD LYCPP \ULFDHLLHL=!"'9!I SGGZ722QQQ=;#I SGGZ722QQQ
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
37/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 036
!#$! LSCKHL ZKNJFEHL HbUFGM FLLUHKL CD FYZNKGCDG YCKVHGFDXGNNP FD NOOHKFDX GSHFK LSCKHLKNQEOUDEFDX 8NKGCP 'ZHKCGFNDL7 "SH8NKGCP CL @CGHVHHZHK
.HLZFGH GSH YNKH SCDELhNOO KHXUPCGNKM CZZKNCRS GCVHD \MGSH (>* CL RNYZCKHE GN >NDXKHLL CDE GSH !#>I ZNKGCPNZHKCGNKL FD GSH =DFGHE ]FDXENY SCJH EHJHPNZHE LHJHKCPYHCLUKHL GN ZNPFRH GSHYLHPJHL ONK GSH LCVH NO PHXCP ZKNGHRGFNDCDE GN ZKNGHRG GSHFK \KCDE FYCXHLKNQERU\H GN PFLG GSH FLLUHK/<
1629 ?9/9I 4.1"('8".' @33*%'$.&'&"(I >:'?.>=;#I SGGZ722QQQ:'?.I ($3%5 DNGH 31I CG 15< "SHLHYHCLUKHL CKH LFYFPCK GN GSNLH ZKHLRKF\HE \M GSH B';! *RG FD GSH =DFGHE !GCGHL<!"" ($3%5 8CKG $$:'?.I ($3%5 DNGH 31I CG 15< >NPPFDL CDE
8FHKKCVFL CLLHKG OUDEFDX LFGHL QFPP GCFPNK GSFL LRKHHDFDX OUDRGFND CL C YHCDL NO
RNYZHGFDX ONK GSH \HLG FDJHLGNKL CDE RNYZCDFHL< 4,9 (NK LRSNPCKLSFZ ND GSH KNPH NOOFDCDRFCP FDGHKYHEFCKFHL -QSFRS FDRPUEHL LHRUKFGFHL RKNQEOUDEFDX ZNKGCPL/ CL
XCGHVHHZHKLI LHH BUEXHI ($3%5 DNGH 00I CG 0T0c<1659 P*2 !'5'"8".'I ($3%5 DNGH 034I CG 0T<
1669 4,9 "SH (>* PHOG NZHD GSH ZNLLF\FPFGM GSCG FG QNUPE RNDLFEHK HYZPCRFDX EUH
EFPFXHDRH KHbUFKHYHDGL “EHZHDEFDX ND SNQ GSH YCKVHG HJNPJHL
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
38/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
03A =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
ZNGHDGFCP NOOHKNKL<"SH LRKHHDFDX ZKNRHLL \HXFDL QFGS CD CZZPFRCGFND
LU\YFGGHE \M GSH RNYZCDM LHHVFDX OUDEFDX OKNY GSH ZNKGCP'++$%! m 8$#::*]$!I ^#%"=:# >:'?.I ($3%5 DNGH 31I CG 5[ ("" 52(*
8$#::*]$! m >'++$%!I ; *%]$%@I ($3%5 DNGH 54I CG c -EHLRKF\FDX CZZPFRCGFNDZKNRHLL ONK EH\G RKNQEOUDEFDX ZNKGCP (UDEFDX >FKRPH/<
1689 !"" >:'?.$%@ $%I ($3%5 DNGH 63I CG T -ZKNJFEFDX C XKCZSFRCP
KHZKHLHDGCGFND NO GSH RKNQEOUDEFDX ZKNRHLL/[ ("" 52(* .# ;=_!#:# #" *+=;#I
SGGZ722QQQ -ZKNJFEFDX CD HgCYZPH NO C =DFGHE !GCGHLh\CLHE RKNQEOUDEFDX LFGH’s
EHLRKFZGFND NO SNQ GN LHG UZ C KHQCKE NK ENDCGFND RCYZCFXD FD GHKYL LFYFPCK GN;KFGFLS LHRUKFGFHL RKNQEOUDEFDX YNEHPL/<
1699 !"" >'++$%! m 8$#::*]$!I ^#%"=:# >:'?.I ($3%5 DNGH 31I CG 5I 00
-PFLGFDX KHPHJCDG OCRGNKL NOGHD RNDLFEHKHE FD GSH JHGGFDX ZKNRHLL/< ;*835%" H"''&./Q*$% P&'#0 *. ;%*+,#$6"I ($3%5 DNGH 0aA -HgZPCFDFDX SNQ COGHK RNYZCDMLU\YFGGFDX ONK OUDEFDX YHHGL FDFGFCP GSKHLSNPE RKFGHKFCI C EHRFLFND GN PCUDRS
RCYZCFXD FL ZKHYFLHE SHCJFPM ND LU\oHRGFJH CLLHLLYHDG NO FGL ZFGRS/I +&'0 a*+ B*%%*+&./ L*%E(I (=%.$%@ >$:>+#ISGGZL722QQQ:'?.I ($3%5 DNGH 31I CG 15
-EHLRKF\FDX GSH “CPPhNKhDNGSFDX” YNEHP/[ (""D "9/9I ;$('*8"% !$33*%'I (=%.$%@
>$:>+#I SGGZL722LUZZNKG
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
39/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 03c
GSKNUXSNUG GSH RKNQE NO ZNGHDGFCP FDJHLGNKLI HDLUKFDX GSCG NDPMPHXFGFYCGH CDE OFDCDRFCPPM JFC\PH JHDGUKHL KHRHFJH OUDEFDX&./,*8
* 1403 LGUEM HLGFYCGHL GSH JCPUH NO GSH ;KFGFLS HbUFGMRKNQEOUDEFDX YCKVHG CG u1cKNQEOUDEFDX” CDE “:HJHDUH28KNOFG !SCKFDX
>KNQEOUDEFDX”/<1739 4,9[ ("" 52(* =
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
40/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
054 =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
EFOOHKHDGFCGFND CYNDX ZNKGCPL CKFLHL CG GSH LHPHRGFND LGCXH< *LLGCGHE FD 8CKG $$$* RSNLH DNG GN FYZPHYHDG UDFJHKLCPEUH EFPFXHDRH LGCDECKEL< "SFL PHCJHL GSH ZNKGCPL GN LHPHRG
RNYZCDFHL \CLHE ND C QFEH CKKCM NO RKFGHKFC GSCG KCDXHL OKNYGSHFK OFDCDRFCP EFLRPNLUKHL GN GSH YCKVHGC\FPFGM NO GSHFKZKNZNLHE RCYZCFXD] #" *+:'?.$%@ $%I ($3%5 DNGH 63I CG T<1789 !""D "9/9I L05' G""( F* ;%*+,#$6" ;05%/"cI >:'?.>=;#I
SGGZ722QQQ
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
41/63
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
42/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
051 =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
CDE EHGHKYFDFDX GSH GMZH NO FDJHLGNK:'?.>=;#I ($3%5 DNGH 0a1
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
43/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 053
CDE GSH RKNQE'++$%! m 8$#::*]$!I ^#%"=:# >:'?.I ($3%5 DNGH 31I CG 06<1979 !"" ; *#>] #" *+:'?.$%@ $%I ($3%5 DNGH 63I CG c -oUgGCZNLFDX “GSH
RUKKHDG LGCGH NO ZPCM” NO GKCEFGFNDCP RCZFGCP NZZNKGUDFGFHL QFGS “SNQ RKNQEOUDEFDXRCD CEE JCPUH” GSKNUXS FDJHLGNKL CRGFDX CL “C ZPCGONKYI DNG CL C ZKFDRFZCP”/<
1989 !"" >'++$%! m 8$#::*]$!I ^#%"=:# >:'?.I ($3%5 DNGH 31I CG c< "SFLKHLHCKRS FDEFRCGHL C LGKNDX YCKVHG ONK QSCG FGL CUGSNKL EHLRKF\H CL “LNRFCPPM
ONRULHE JHDGUKHLI” QSHKH ZKNOFGC\FPFGM NO GSH HDGHKZKFLH YCM \H LHRNDECKM GN LNYHNGSHK LNRFCP XNCP< !"" &,9 CG 14 -ZKNJFEFDX RCLH LGUEM NO GSH ?CVC?CVC PFXSG/[ (""
52(* &.-%5 8CKG $^ -EFLRULLFDX C LFYFPCK NZZNKGUDFGM ONK HbUFGM RKNQEOUDEFDX FD GSH
=DFGHE !GCGHL/
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
44/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
055 =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
CG PHCLG LNYH NO GSHFK HgRHLL RCZFGCP FD \ULFDHLLHL QFGSFD GSHFKRNYYUDFGMI CDE ZCKGFRUPCKPM FD GSNLH GSCG ZKNJFEH LNRFCP\HDHOFGLKNQERU\H RCLH LGUEM/< ?HPP NJHK SCPO NO >KNQERU\H ’L
LURRHLLOUPPM OUDEHE RNYZCDFHL SCJH \HHD RNDLUYHKhNKFHDGHE< !"" ;%*+,#$6" 4.-*/%530I >:'?.>=;#I SGGZ722QQQ:'?.I ($3%5 DNGH 31I CG 0c<2039 4,9 >KNQERU\HI ONK HgCYZPHI CEYFGL GSCG NDPM ONUK “$" CDE
"HPHRNYYUDFRCGFNDL” OFKYL SCJH LURRHLLOUPPM KCFLHE RCZFGCP GSKNUXS FGL LFGH< !"";%*+,#$6" 4.-*/%530I >:'?.>=;#I ($3%5 DNGH 144
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
45/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 05T
a great deal of disclosure to the public of the firm’s businessYNEHP LN GSCG ZNGHDGFCP FDJHLGNKL YCM EHGHKYFDH FO GSHfounders’ valuation is accurate.205 "SFL YCM HgZPCFD QSM
GHRSDNPNXM LGCKGUZLI QFGS RNYZPHg CDE ZNGHDGFCPPM JCPUC\PHFDGHPPHRGUCP ZKNZHKGMI SCJH DNG KULSHE FDGN RKNQEOUDEFDX=;#I
SGGZ722QQQ
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
46/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
05a =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
HgZHKGFLH:'?.I ($3%5 DNGH 31I CG 13[ (""D "9/9I
G%"K$".'27 C(E", _$"('&*.(I >:'?.>=;#I ($3%5 DNGH 64'++$%! m 8$#::*]$!I ^#%"=:# >:'?.I ($3%5 DNGH 31I CG 13< $D GSHNKM
GSFL RNUPE CZZPM FD GSH NZZNLFGH EFKHRGFNDI CDE GSH CYNUDG NO HbUFGM NOOHKHE RNUPE\H KHEURHE FO GSH RNYZCDM QCL UDEHKJCPUHE< !"" &,9
2159 4,9 2169 4,9 CG 16
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
47/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 056
FDJHLGNKL RKHCGHL ZNGHDGFCPPM GFYHhRNDLUYFDX ZKN\PHYL ONK Ccompany’s management team, due to the large num\HK NO DHQLSCKHSNPEHKL GSHM YULG DNQ VHHZ SCZZM:'?.>=;#I
SGGZ722QQQ
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
48/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
05A =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
RKNQEOUDEFDX YCKVHG LGNNE CG DHCKPM u144 YFPPFND -n336YFPPFND/ CG GSH HDE NO 1403NYYHDG NOOHKL GSHCEEFGFNDCP N\LHKJCGFND GSCG EH\G RKNQEOUDEFDX ENHL DNGRNYZHGH EFKHRGPM QFGS HbUFGM RKNQEOUDEFDX ONK ZNGHDGFCPFLLUHKLI CL FG CEEKHLLHL GSH RCZFGCP DHHEL ONK C EFOOHKHDGLHXYHDG NO LYCPP \ULFDHLLHL< "SFL LHRGFND FEHDGFOFHL EH\G
RKNQEOUDEHKL CL HLGC\PFLSHE LYCPP \ULFDHLLHL QFGS C SFLGNKM NORCLS OPNQ \HMNDE GSH LGCXH NO EHJHPNZYHDG QSHKH YNLG NQDHKLQNUPE LHHV DHQ HbUFGM FDJHLGNKL<
0< * !UKJHM NO .H\G >KNQEOUDEFDX FD GSH =DFGHE]FDXENY
"SH ;KFGFLS EH\G RKNQEOUDEFDX ZNKGCPL HgCYFDHE ONK GSFL>NYYHDG HgSF\FG RNDLFEHKC\PH EFJHKXHDRH FD GSH NZHKCGFDXYNEHPL NO GSHFK HbUFGM RNULFDL< *L QFGS HbUFGM RKNQEOUDEFDXI
GSH FLLUHK OFKLG CZZPFHL GN NOOHK LHRUKFGFHL QFGS GSH ZNKGCP# ;#%>&9*:]$%@
:#8':"I ($3%5 DNGH AI CG A -CL RNYZCKHE GN HbUFGM RKNQEOUDEFDX FD GSH =DFGHE]FDXENYI CG u1c$:>+#I SGGZL722LUZZNKG<
OUDEFDXRFKRPH
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
49/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 05c
RNYZCDM CDE ZNKGCP GSHD CXKHH GN GHKYL NO SNQ YURS YNDHM GNKCFLH QFGSFD C LZHRFOFR GFYH UDEHK GSH CPPhNKhDNGSFDX YNEHP'++$%!I ; *%]$%@I ($3%5 DNGH 54, at 10−11 (HgZPCFDFDX GSCG
DHFGSHK GSH EH\GNK RNYZCDM DNK GSH ZNKGCP KHZCML HCRS FDEFJFEUCP PHDEHKI \UGFDLGHCE KHPFHL ND GSH OFDCDRFCP FDLGFGUGFND GN CRRNYZPFLS GSFL OUDRGFND/<
2339 4,9 CG 5I A – c [ ("" ($3%5 8CKG $FKRPH/<234< 8$#::*]$! m >'++$%!I ; *%]$%@I ($3%5 DNGH 54I CG 35<
2359 4,9 CG 3T<2369 4,9 CG 36
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
50/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
0T4 =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
1< .H\G >KNQEOUDEFDX FD *RGFND7 &NQ >NYZCDFHL +FVH
(UDEFDX >FKRPH *KH >SCDXFDX !YCPP ;ULFDHLL+HDEFDX FD GSH =DFGHE ]FDXENY
(UDEFDX >FKRPHI GSH PCKXHLG ;KFGFLS EH\G ZNKGCPI NOOHKL *YHKFRCD RKNQEOUDEFDX LGCVHSNPEHKL C ZNQHKOUP HgCYZPH NOSNQ EH\G RKNQEOUDEFDX FD GSH =DFGHE !GCGHL YFXSG OUDRGFND$:>+#I
SGGZL722QQQ+# 1I
SGGZL722QQQFKRPH RNDLFEHKL YNKH GSCD 0IT44 OCRGNKL QSHD
CLLFXDFDX C KFLV \CDE/
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
51/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 0T0
assigns a risk band, the portal posts the company’s offering onFGL QH\LFGHFKRPH KHZNKGL CDCJHKCXH FDGHKHLG KCGH NO A$:>+#I SGGZL722QQQ# '( !9*++ ;=!$%#!! $%.#eI (#.’%
!9*++ ;=!< 0T -0LG fUCKGHK 1405/I 515&2562" 5'SGGZ722QQQ
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
52/63
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
53/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 0T3
ONKRH ONK LYCPP \ULFDHLL RCZFGCP ONKYCGFND< "SH ONPPNQFDXLHRGFNDL GCVH GSHLH N\LHKJCGFNDL C LGHZ OUKGSHK CDE NOOHKLHJHKCP RNDRPULFNDL NO SNQ C LURRHLLOUP LHRUKFGFHL RKNQEOUDEFDX
FDEULGKM LSNUPE EHJHPNZ FD GSH =DFGHE !GCGHLI EHLZFGH FGL YCDMRKFGFRL FD GSFL RNUDGKM< !HRGFNDL * CDE ; CEEKHLL LNYH NO GSHYCoNK RNDRHKDL NO NGSHK RNYYHDGCGNKLI FDRPUEFDX GSH FYZCRG NOB';! *RG KHXUPCGFND ND FLLUHKL CDE ZNKGCPLI CDE GSH KNPH NO GSHRKNQEOUDEFDX HgHYZGFND UDEHK LHRGFND 5-C/-a/ FD KHPCGFND GN GSH:UPH T4a HgHYZGFNDNSDI ($3%5 DNGH 04AI CG 0555 -CLLHKGFDX GSCG “`FdG FL EFOOFRUPG GNFYCXFDH GSCG ONK NOOHKFDXL UDEHK n1T4I444 HFGSHK FLLUHKL NK FDGHKYHEFCKFHL QNUPE
\H QFPPFDX GN UDEHKGCVH GSH GFYHI RNLG CDE KFLV NO ZNGHDGFCP PFC\FPFGFHL$:>+#I SGGZL722QQQ
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
54/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
0T5 =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
HgZCDLFND FDGN GSH =DFGHE !GCGHL GNNV ZPCRH GSKNUXS C YHKXHKQFGS #DEUKCDRH +HDEFDX %HGQNKV CDE RNKKHLZNDEHE QFGS CDCEEFGFNDCP n36 YFPPFND FD JHDGUKH RCZFGCP OFDCDRFDXI GSUL ZCJFDX
GSH QCM ONK ZNGHDGFCP EHJHPNZYHDG NO FGL EH\G RKNQEOUDEFDXYNEHP FD GSFL RNUDGKMKNQERU\HRUKKHDGPM NZHKCGHL FD HFXSG RNUDGKFHL ULFDX C oNFDG JHDGUKHCZZKNCRS CL C YHCDL NO CECZGFDX GN DCGFNDCP LHRUKFGFHL PCQLKNQERU\H GN EHJHPNZ RNLGhHOOHRGFJHLHPHRGFND YHGSNEL FD GSHFK XCGHVHHZFDX KNPHNYZCDFHL LURSCL >KNQERU\H CDE !HHEKL YCM RNY\FDH GSHFK HgFLGFDXHgZHKFHDRH QFGS DHQ CDCPMGFRCP GNNPL FD CD HOONKG GN HgZCDE FDGN
GSH =DFGHE !GCGHL< >NDJHKLHPMI GSFL >NYYHDG CJHKL GSCG *YHKFRCD OFKYLI LURS CL $DEFXNXN CDE ]FRVLGCKGHKI QFPPPHJHKCXH GSHFK NQD LFYFPCK RCZC\FPFGFHL GN HDGHK GSH OUDEFDXZNKGCP YCKVHG CL C PNXFRCP HgZCDLFND NO GSHFK RUKKHDG \ULFDHLL
YNEHPL !'5%'Z=3 4.1"('8".' L"6(&'" P25.( H2*652
?CDCEC CL QHPP/<2609 !"" !RSUYZHGHKI B$&2,&./ +&'0 B&/ F5'5I #>'%'9$!" -9CM 1aI 1400/I
515&2562" 5' SGGZ722QQQ
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
55/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 0TT
#YZFKFRCP HJFEHDRH ZKNJFEHE FD GSFL >NYYHDG LUXXHLGLGSCG GSH LHRNDE OCRGNK GSCG RNDGKF\UGHL GN GSH LURRHLLOUPCZZPFRCGFND NO LHRUKFGFHL RKNQEOUDEFDX FD GSH =DFGHE !GCGHL FL
GSH EHYNDLGKCGFND NO C DHHE ONK OFDCDRFDX QHPP UDEHK GSH n0YFPPFND B';! *RG PFYFG< *L EHZFRGHE FD "C\PH 3 \HPNQI ;KFGFLSRNYZCDFHL ULFDX HbUFGM ZNKGCP >KNQERU\H SCE CD CJHKCXHNOOHKFDX NO u063Ic0c -n1c0IA41/ QSFPH GSNLH \NKKNQFDX GSKNUXSEH\G ZNKGCP (UDEFDX >FKRPH KCFLHE CD CJHKCXH NO ua0I60c-n043ITT3/< "SH "C\PH GSHD EHYNDLGKCGHL GSH EFLRPNLUKHKHbUFKHYHDGL ONK GSHLH FLLUFDX CYNUDGL FO GSHM SCE GCVHD ZPCRHFD GSH =DFGHE !GCGHL UDEHK GSH LHRGFND 5-C/-a/ HgHYZGFND<
:562" UR B%&'&(0 !"#$%&'&"( ;%*+,-$.,&./ P*%'52 F5'5 C332&",'* A@B! C#' F&(#2*($%"(
Portal Example Average Amount
Offered
JOBS Act Disclosure
Implications (assuming
similar issuing amounts in the
U.S.)
Crowdcube —
Equity
£173,919
($291,802)262
Independent public accountant
must review financial
statements.
Funding
Circle — Debt
£61,719
($103,553)263
Independent public accountant
must review financial
statements.
(If under $100,000, then only
previous year income taxreturns and unaudited financial
statements required.)
RKNQEOUDEFDX ZNKGCPL/<
262< "SFL OFXUKH KHZKHLHDGL GSH CJHKCXH NO GQHDGMhLFg LGCKGUZ CDE HCKPMhLGCXHCRGFJH NOOHKFDXL ZNLGHE ND >KNQERU\H’L QH\LFGH ND %NJHY\HK AI 1405< 4.1"('8".'
@33*%'$.&'&"(D >:'?.>=;#I ($3%5 DNGH 0a1
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
56/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
0Ta =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
9NLG FLLUHKLI FO FDOHKKFDX LFYFPCK KHLUPGL OKNY "C\PH 3 FDGSH =DFGHE !GCGHLI QNUPE bUCPFOM ONK GSH PHLL NDHKNULFDEHZHDEHDG ZU\PFR CRRNUDGCDG KHJFHQ KHbUFKHYHDG KCGSHK GSCD
GSH CUEFGHE OFDCDRFCP LGCGHYHDGL KHbUFKHE ONK FLLUCDRHL NJHKnT44I444
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
57/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 0T6
EFLZPCMHE ND GSHFK QH\LFGHLI268 ;KFGFLS RKNQEOUDEHKLEHYNDLGKCGH GSH HOOHRGFJHDHLL NO LURS CRGFJFGM FD GSH ONKY NO GSH“pitch.”269 Additionally, securities crowdfunding’s critics
CZZCKHDGPM OCFP GN DNGH GSH ZNQHK NO LNRFCP YHEFC FD GSHRKNQEOUDEFDX RNDGHgG=;#I ($3%5 DNGH 0A4-ZKNJFEFDX LGHZL ND ZFGRS RKHCGFND CDE NOOHKFDX GHRSDFRCP CLLFLGCDRH FD ZFGRSZKNEURGFND/<
2709 !"" >NSDI ($3%5 DNGH 04AI CG 0533 -ZNFDGFDX GN GSH CEJHKGFLFDX KHLGKFRGFNDCL CDNGSHK YHCDL NO EFLRNUKCXFDX FLLUHKL OKNY ULFDX LHRUKFGFHL RKNQEOUDEFDX/[ ("" 52(* "SNYZLND m +CDXHJNNKGI ($3%5 DNGH aI CG 0a4T -“`$dG FL EFOOFRUPG ONK UL GN LHH
QSM C KCGFNDCP LGCKGhUZ HDGKHZKHDHUK QNUPE OFDE FG CZZHCPFDX GN ULH GSH DHQ5-C/-a/ HgHYZGFND CG CPP
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
58/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
0TA =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
HYZFKFRCP HJFEHDRH GN LUZZNKG GSH GSHNKM GSCG EH\GRKNQEOUDEFDX UDEHK LHRGFND 5-C/-a/ LSNUPE HJNPJH FDGN C KN\ULGYHCDL NO RCZFGCP ONKYCGFND ONK *YHKFRCD LYCPP \ULFDHLLHL CDE
RNUPE \HRNYH GSH ZKFYCKM CZZPFRCGFND ONK GSH RKNQEOUDEFDXHgHYZGFND< .H\G RKNQEOUDEFDX FD GSH =DFGHE ]FDXENYI CLEFLRULLHE FD 8CKG $$$I LURRHHEHE GSKNUXS C RNY\FDCGFND NOZKNGHRGFNDL ONK \NGS FDJHLGNKL CDE EH\G FLLUHKL[ C LRCPC\PHICDCPMGFRLhEKFJHD KFLV CPPNRCGFND YNEHP[ CDE RNYZHGFGFJH FDGHKHLGKCGHL< "SFL >NYYHDG CLLHKGL GSCG GSHLH OCRGNKL CKH KHZPFRC\PH FDGSH =DFGHE !GCGHL NDRH GSH !#> FYZPHYHDGL KUPHL ZHKYFGGFDXdebt crowdfunding. Actions such as Funding Circle’sHLGC\PFLSYHDG NO CD *YHKFRCD LU\LFEFCKM CEE OUKGSHK LUZZNKGGN GSFL GSHNKM<
>'%>+=!$'%
?SFPH YCDM HgZHKGL FD GSH =DFGHE !GCGHL OHCK LHRUKFGFHLRKNQEOUDEFDX QFPP HYHKXH CL HFGSHK C OPNZ NK C ZPCGONKY ONK
\FPVFDX UDHEURCGHE FDJHLGNKL NUG NO GSHFK YNDHMI277 GSH ;KFGFLSHgZHKFHDRH LUZZNKGL CD NZZNLFGH RNDRPULFND< "SH HgZHKGLFDGHKJFHQHE ONK GSFL >NYYHDG CDE KHRHDG KHLHCKRS ZNFDG GNDHXPFXF\PH FDLGCDRHL NO OKCUE:'?.I ($3%5 DNGH 31I CG 15[ ("" 52(*
P*2 !'5'"8".'I ($3%5 DNGH 034I CG 0T -\CLFDX (>* EHRFLFND DNG GN FYZNLH YNKHKHXUPCGFND ND GSH YCKVHGI \CLHE ND GSH PCRV NO \CE RNDEURG GN ECGH/<
2799 !"" &.-%5 8CKG $$$[ ("" 52(* 0T =< l 66Eh0-C/-6/<280< >'++$%! m 8$#::*]$!I ^#%"=:# >:'?.I ($3%5 DNGH 31I CG 15
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
59/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 0Tc
ZNQHKOUP CDGFhOKCUE YHCLUKH FD GSH RKNQEOUDEFDX YCKVHG\HRCULH FG KHbUFKHL RNYZCDFHL GN RNYYFG GN \KNCE EFLRPNLUKH FDNKEHK GN CGGKCRG LUOOFRFHDG OFDCDRFDX< "SFL CZZKNCRS HDC\PHL
ZNGHDGFCP FDJHLGNKL GN ULH LNRFCP YHEFC CL C RNDEUFG ONKRNDEURGFDX EUH EFPFXHDRH CDE LZKHCEFDX GSH QNKE NO ZNLLF\PHOKCUELGHKL<
!HRUKFGFHL RKNQEOUDEFDX FD GSH =DFGHE ]FDXENYEHYNDLGKCGHL GSH ZNGHDGFCP ONK C JF\KCDG CPGHKDCGFJH LNUKRH NOHDGKHZKHDHUKFCP OFDCDRH GSCGI XFJHD GSH CZZKNZKFCGHNZZNKGUDFGMI LSNUPE LFYFPCKPM LURRHHE FD GSH =DFGHE !GCGHL<"SFL OUDEFDX YNEHP HgSF\FGL FDSHKHDG OKCUEhZKHJHDGCGFJHmeasures. It is scalable and designed to work within today’s
LNRFCPhYHEFChCEEFRGHE HRNDNYM< (FDCPPMI LHRUKFGFHLRKNQEOUDEFDX SCL LURRHLLOUPPM CECZGHE GN C RSCDXFDX
regulatory landscape, as evidenced by British stakeholders’XHDHKCP CRRHZGCDRH NO KUPHL LFYFPCK GN GSNLH PHXFLPCGHE FD GSH=DFGHE !GCGHL< (NK GSHLH KHCLNDLI GSFL >NYYHDG RNDRPUEHL GSCGLHRUKFGFHL RKNQEOUDEFDX -CDE ZCKGFRUPCKPM EH\G RKNQEOUDEFDX/
QFPP PFVHPM EHJHPNZ FDGN C KN\ULG YCKVHG ONK HDGKHZKHDHUKFCPfinance despite the American government’s best efforts toYCKXFDCPFWH FG
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
60/63
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
61/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 0a0
LFDXPH FDJHLGYHDG QCL u1T4I444 -n50cI444/I HJHD GSNUXS GSHLFGH KHbUFKHL C YFDFYUY FDJHLGYHDG NO NDPM u04 -n06/:'?.>=;#I SGGZ722QQQ:'?.>=;#I SGGZ722QQQ
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
62/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
0a1 =%$^#:!$"_ '( >'+':*.' +*? :#^$#? `^NP< Aa
GN GSFL ZNFDG:'?.>=;#I SGGZ722QQQ:'?.>=;#I SGGZ722QQQ<
RKNQERU\H
-
8/9/2019 The Next British Invasion is Securities Crowdfunding Steinhoff_final
63/63
!"#$%&'(( )($%*+ -.' %'" .#+#"#/ 0123421405 6715 89
140Td %#e" ;:$"$!& $%^*!$'% 0a3
LSCKHSNPEHKLKNQERU\H PFDVL HbUFGM QFGSKHQCKE RKNQEOUDEFDX