Investor PDF Welcome pack

“Answer all your questions aboutinvesting on FundedByMe”

www.fundedbyme.com

€19,000,000 invested into SME’sFrequently asked questions

Nearly 1,000 jobs createdFundedByMe 5 years on

Contents

Contents

Foreword

Who we are

Market leader Nordics

Investor insight

Tax reliefs

FundedByMe 5 years on

Meet the team

#FundedByYou

Investor FAQ’s

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5

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12

15

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Welcome to FundedByMe!

A vibrant community of like-minded investors who aim at changing the way companies get funding.

When Daniel Daboczy and Arno Smit launched FundedByMe 5 years ago, they didn’t think that they would be where they are today.

They’ve met thousands of entrepreneurs that in-spires FundedByMe to keep doing what we do.

Often entrepreneurs lack the tools and financing mechanisms to grow their business. We thrive on other people’s success and hope you do to.

This is a little something that we’ve created for you - hope you enjoy it!

Foreword

Arno SmitCo-founder & Investorrelations

Arno is a Namibian born de-veloper and entrepreneur at heart, having being involved in a few startups he has worked in various industries ranging from aviation to hunting to commodi-ties and social networks.

Currently Arno oversees all things related to investors on the platform.

Before this he was the lead architect and CTO of FundedByMe.

Author of this document

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Who we are

Since 2011, thanks to investors just like you, over €19,000,000 has been invested into SME’s but how did it all start?

In 2010 Daniel and Arno worked on a project called IdeasForChange. The idea was to crowdsource information and distribute it to individuals that needed it most.

“For instance: a person in the US might know how to desalinate water using household items. Someone in Kenya could benefit from this information.

IdeasForChange would bring these parties together through technology.

It didn’t take long for the project to generate traction. The world bank opened its video archive and allowed them to tap into that knowledge.”

As they were getting ready to scale, they saw a need for further funding. Their searches for alternative financing resulted in them getting in contact with Kickstarter.

“During the application process we got turned down. We weren’t US citizens or had US bank accounts plus Kickstarter thought that our project didn’t align well with their community.”

This got them thinking - “If we’re two people that got turned down imagine the amount of people that have been disappointed!”

In September 2010 FundedByMe was born!

“To see how difficult it was to crowdfund we ate our own dog food. We put up a web-page, reached out to our network and asked them to funds us. In return we offered hugs, t-shirts, mention on the website or an infor-mation session on crowdfunding.”

They raised €11,000 in 60 days from their networks, which they reinvested into build-ing the actual platform and launched with-in 30 days.

“During the first year and a half we saw this as a hobby project whilst still working with our web agency (Dabber) attending to clients like Stockholm Stad, Toyota, Berns Salonger and many more.”

Part of their success has been that they are able to channel our customers feedback into new or improved features. The most recurring feedback they received was - “It’s great that you can pre-sell the next watch, but imag-ine the power of being able to own part of the next Daniel Wellington company!”

In September 2013 they addedequity crowdfunding to their offering. They raised their first seed round from Angels.

And as they say - “The rest is history!”

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2012 2013 2014 2015

An overview of the crowdfund-ing market in Europe and market

growth.

€30.25bn

€14.21bn

€5.35bn

€2.28bn

MARKET LEADER NORDICS

Copyright © Free Vector Maps.com

In 2015 the overall European crowdfunding market grew by 98.6%. A total of €30.25bn

was invested across all mediums.

98.6%Growth in 2015

€5.69bn Equity crowdfunding

7Source: Massolution Crowdfunding Report 2015

MARKETRESEARCH

FundedByMe in the Nordics

84%

A recent study by the Stockholm School of Economics shows that FundedByMe

has 84% market share of the nordic equity crowdfunding market.

€19,000,000invested

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66Successful

rounds

65,000Registeredmembers

€19,000,000Successfully

raised

For every €100,000 invested 5 new jobs are created.

That’s a 1,000 new jobsthanks to FundedByMe!

Since March 2013

Statistics

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Biggest roundSMSGrupp raised

€1,272,000 to help accelerate their

business.

Biggest investmentNOA potions received €110,000 from a single

investor during their firstfinancing round in

January 2015.

Fastest roundFundedByMe raised

€740,000 in 3 days back in May 2014 from 383

investors.

The average deal size was €250,818 in 2015which is an increase by 229% from 2014

Additional statistics

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INVESTORINSIGHT

How did you first get familiar with crowdfunding and why does being a crowd investor appeal to you?

For me it really started two years ago, when I some-how ran into a very compelling campaign for Jascha on FundedByMe. I had earlier bought into some tech gadget Kickstarter rewards-based campaigns. I find it appealing to, by investing, actually supporting some-one else’s dream and passion coming true and also the fact that it feels more personal to invest in smaller companies, with the possibility of creating a mutual “relationship”.

“I have made 21 investment so far on FundedByMe”

Joining in early also gives the opportunity to take part of the potential growth generated by good ideas, con-cepts and products – something earlier in most cases only possible for larger investors, business angels and family members or friends of the entrepreneurs.

Which campaigns on FundedByMe have you invest-ed in? What made you want to get involved?

I have made 21 investments so far on FundedByMe – they are Jascha, InstrumentChamp, FundedByMe, Goodio Cools, MowJow, Mobitrotter, Lovetagged, Åre Natural Mineral Water, Virtuous Vodka, Isbjörn of Sweden, Give, Commons, NOA Potions, Mormor Magdas Glass, Eggs Inc, Zeifie, Fikabox, Marita Huurinainen, Fast Track, Someone.io and BrewDog.

I must admit that some of my investments have been made based on an interest in supporting the founder or an idea rather than believing fully it will become the next big thing, but the major part of the campaigns I have entered I think had great potential.

Magnus Collin - Serial crowd investor

Magnus CollinIT & Process professional

I’m a 40 year old IT and pro-cess improvement professional currently working for a software company focusing on secure product data collaboration solutions.

Husband and a father of two wonderful children who make sure I am fully occupied most of the time. I have a thing for alter-native investments and I am also a serial crowd investor.

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Some of the ventures have not followed through as expected, ran into technical or product positioning issues and more or less paused their activities – so you have to consider the risk. The companies I did invest more in was Jascha, InstrumentChamp, Isbjörn of Sweden, NOA Potions and Mormor Magdas Glass.

What differed was that I had a stronger belief in the product and the team behind, but it was also dependent on current availability of capital to invest.

What do you expect to get out of these investments on the long run?

Dreaming of one or two of the investments turning out to be the next unicorn, but to be more realistic about it – hoping to be able to spread risk and still overall ex-ceed at least the Nordic stock exchange indexes.

What is the most important tip you’d give other investors considering crowd-funding?

All early stage ventures are high-risk and often very dependent on the founders’ combined drive and endurance. Also be aware that pre-valuation of some of the companies can be “questionable” short-term and are often based on a prognosis with rather aggressive expansion plans. Examine the figures, ask questions and add also your believe in the product, concept and most important the people in-volved to the equation, even more important of course if investing more.

Finally, what is your favourite thing about FundedByMe?

Magnus Collin

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* This applies to Swedish investors only

Both individuals and companies can invest through FundedByMe.

For Swedish individuals tax reliefs and initiatives are available and is referred to “Investeraravdrag” The official rules can be found on Skatteverket.se

Example: * If the business Less AB does a new share issue, the offer is means that you can sign up for 1 share at a price of 100 kr per share.

The business is ready to be accepted for “Investeravdraget”. Karl signs up for 500 new shares and pays 50 000 kr for them.

Investeraravdragets size is 25 000 kr (half the amount) which gives a tax relief of 7 500 kr (25 000 kr * 30%)

Tax reliefs - “Investeraravdrag”

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5 YEARS ON

“Never in a million years did we think building a website for funding your project would lead

us here.

3,5 years ago we didn’t have any investors, now we have an army

of 544 people.

We’re humbled but proud at the same time, together with them

we’re changing the finance industry!”

- Daniel Daboczy

Happy Birthday

2011January 2011 FundedByMe starts developing its own crowdfunding platform.

March 2011 FundedByMe launches version 1 with reward-based crowdfund-ing

FundedByMe registers as a company and both Daniel and Arno pursue this 100%

2012March 2012 FundedByMe reaches €100,000 pledged through the platform

September 2012 Funded-ByMe reaches €200,000 pledged through the platform.

What took one year to raise €100,000 started to accel-erate and was achieved in 4 months.

2013March 2013 FundedByMe adds equity crowdfunding to its product offering

April 2013 Daniel raies first Angel round of €400,000 to build a board of directors and staff up.

In September 2013 FundedByMe merges the 2 products and launches a new look website.

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FundedByMe history / timeline

2014May 2014 FundedByMe launches its own equity crowdfunding round to the public in order to develop new products and increase staff count.

Over 380 investors from 74 different countries invest and become part of FundedByMe.

2015January 2015 FundedByMe adds loans to its product offering.

Now Swedish AB companies can seek up to €150,000 in growth capital.

With 0% interest from banks it allows investors to diversify their portfolio whilst guaranteeing healthy returns.

December 2015 FundedByMe reaches €15,000,000 invested through the platform!

A massive achievement for a small team and real proof that investors look towards equity and loans as a way of creating a healthy diversified portfolio.

2016May 2016 FundedByMe applies to be a public company (Publ AB)

May 2016 FundedByMe open another equity crowdfunding round for the public.

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MEET THE TEAM

Pontus FrohdeCOO

Pontus Frohde is the Chief Operating Officer and in charge of running all daily business at FundedByMe.

Prior to FundedByMe, Pontus spent 11 years with Microsoft in various inter-national sales and market-ing roles and 6 years with PAN Vision as the COO

HC TollCFO

HC Toll is the compa-ny’s CFO, bringing his experience from various industries such as retail, manufacturing and new economy.

Daniel DaboczyCEO & Co-founder

Previously, Daniel was CEO and founder of the web agency Dabber and curator at the Stockholm kunsthalle Färgfabriken.

As the CEO of Funded-ByMe, Daniel is its primus motor and can hardly be caught sitting down doing nothing.

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Niclas AhlströmHead of Finland

Niclas Ahlström is a Lon-don-born Finnish and Brit-ish citizen. Niclas holds an MSc in International Man-agement from Svenska Handelshögskolan in Helsinki, Finland. Niclas has a strong interest in design, arts and architecture.

Susan SjölundHead of Marketing

Having gained fifteen years of communications and PR experience across many of the leading markets, in-cluding New York, London, Cape Town and, since June 2012, Stockholm, Susan is the other Namibian in the FundedByMe office.

Susan is perfectly posi-tioned to assist Funded-ByMe in educating the world about crowdfunding and the magic that hap-pens at FundedByMe.

When she’s not devouring information or firing out emails at high speed she is an expert knitter, twin mom, a bookworm and a globetrotter with a passion for chocolate, South Afri-can wines and stimulating conversation.

Henrik Von StockenströmHead of Sweden

Henrik has a background at corporate finance bou-tiques as Erik Penser and Lage Jonason, specialized in raising capital to small companies. He has also been involved in and invest-ing in early stage, entrepre-neurial companies. Earlier experience involves busi-ness and market develop-ment at Spray and Lycos.

Henrik holds a Master from Stockholm School of Eco-nomics, specialising in Finance and Marketing.

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Tem AguerreProduct designer

Tem worked with commu-nication, internet and creat-ing user experiences online for almost 15 years.

He worked at an adver-tising agency for a while, spent a few years in southern California

Daniel WahlqvistCTO

Daniel Wahlqvist is the Chief Technology Officer, responsible for the product delivery and leading the development team.

Prior to FundedByMe Dan-iel spent two years leading development in startups, four years working for Mic-rosoft as a product special-ist and three years as an entrepreneur in the music industry.

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Cecilia LundborgAccount manager

Cecilia is an Account Manager at FundedByMe, working as a gate keeper for entrepreneurs. Cecilia helps entrepreneurs turning ideas into successful fund-ing.

She has a Bachelor in Eco-nomics from Lund Univer-sity and UCLA. Cecilia has international experience from working within crowd-funding companies in the US.

Alina LundqvistBusiness developer

Alina works as a Business Developer and converts the requests of the entrepre-neurs into real crowdfund-ing campaigns. She has also produced a business intelligence report on the success factors in equity crowdfunding and took an active part in developing the equity product, while working with external part-ners and financial author-ities. She holds a Master degree from The Royal Institute of Technology with specialisation in Economics and Entrepreneurship

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SCREENINGPROCESSWe pride ourselves in quality over quantity. FundedByMe puts every business through a rigid application process where we look at many different aspects from business intelligence to market validation and most importantly the team to make sure we meet investors expectations.

Application process

Each entrepreneur is requested to go through an application process where they have to tell us a bit more about their business, recent traction, any previous investments and most important how much they think their business is worth.

Campaign creation and feedback round

If we feel that a business meets our requirements and they’re clear on their expectations we take it to the next step.

1 2

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3 4Detailed inspection

Our team looks through every piece of documentation and if the team is based near one of our offices we’ll meet them to get to know the people behind the busi-ness even better.

Live

If we’re happy the business will have the chance to schedule a going live date which makes them open for investment. Only about 8% of all applications get through this process.

This is an iterative process that is improved all the time to make sure we can get as many qualitative companies on as possible.

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#FundedByYou

A sneak peek into oursuccess stories.

WOBYBI - Spain

Their tagline - Custom bicycles at affordable prices.

They assemble and ship unique bikes de-signed online by unique customers. Bikes transform cities and improve people’s daily lives.

Their market-proven approach is trans-forming the mature bike market by offer-ing more options at a lower cost and with fewer clicks than anyone else.

They recently closed their funding round on FundedByMe.

Initially seeking €109,000 they raised €133,000 from 41 investors including AnimaVentures from Spain.

Caliente - Sweden

The World Beverage Innovation Awards 2015 winner reached 100% of their fund-ing goal in just 3 days!

Their elevator pitch - Finally a really good non-alcoholic alternative! After a suc-cessful launch in Sweden and several in-ternational awards and recognitions, the “World’s Best Premium Beverage” starts its international rollout, with the objective to exit in five years at 8-12 times the cur-rent evaluation.

One of the most successful campaigns during Winter 2016 on FundedByMe.

Initially seeking €374,000 they raised €523,000 from 142 investors.

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Betolio - Malta

Picture yourself in a pub watching football with friends. Someone puts €10 on the table and announces “I bet Barcelona scores next!”. So you accept the offer, making the match even more exciting. Betolio is like that – but even better – it’s an app.

Initially seeking €300,000 they raised €393,000 from 163 investors.

Möbler - Sweden

Scandinavian Vintage Furniture - Online Auctions in Asia

MÖBLER is entering the completely un-tapped market of vintage furniture in Asia Pacific.

Möbler sells unique Scandinavian an-tiques and vintage furniture through online auctions, through our own auction platform and own application.

Initially seeking €100,000 they raised €128,000 from 72 investors.

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INVESTOR FAQ’s

How do I become a member at FundedByMe?Registering to become an investor on FundedByMe is a quick and easy, if you have an existing social network you can make use of a one-click signup.

Do I pay to become a member?Signing up for FundedByMe is free and there are no registration fees involved.

How does Equity-based Crowdfunding work on FundedByMe?Equity crowdfunding is funding a company by selling shares to crowd investors in exchange for partial ownership.

How do I know if the value of a company is correct?Estimating the valuation of a private company can be hard, and there are no simple ways to do this. Things to keep in mind is what you think about the future potential of a company and judge if the current valuation of the company lives up to that potential. FundedByMe does not judge or advise on valuations of companies on the platform.

How does the payment process work?The payment of the shares happen outside FundedByMe.com, where you will be contacted by the entrepreneur or their legal representatives with the share agree-ment as well as payment details in order to complete the transaction.

How can I sell my shares at a later date?Once you own the shares you can sell them on any secondary market that the company is listed on, or when the company enters a stock market. You can also sell your shares as part of the company being acquired by a third party. For details about how you can sell your shares, please consult the entrepreneur.

What happens if a campaign is oversubscribed?When a campaign is overfunded, there are several ways that the funding round can be completed. Depending on how the entrepreneur wishes to continue, an overfunding can involve them choosing which investors to complete the round with, or offering a lower amount of shares for the investments made.

Who can invest in companies?Anyone living outside the US can invest in companies on FundedByMe.Due to legislation in the US we are not currently allowing US investors to partici-pate in Equity Crowdfunding on FundedByMe.

We offer entrepreneurs the option of approving or declining potential investors giving them the right to choose who they want - and do not want - to become part-owners in their businesses.

If funding does not succeed do investors pay anything?No, if the funding is not successful, then the investor does not pay anything.

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Are there risks involved in investing in Equity Crowdfunding campaigns?Investing in any business can be rewarding, particularly if you can identify and in-vest in an early-stage startup before it’s well known and profits start to grow. That said, as with all other types of equity investments, companies can fail or not deliv-er an investor return. The high risk nature and limited liquidity of investing equity in private companies needs to be carefully considered before making a decision as there is a very real possibility that you might lose your money invested. We try to ensure that all campaigns have a business plan and financial projections to enable you to make an informed choice about your investment.

What can I do to maximise my investment?Get involved beyond your transfer of funds to the entrepreneur! Perhaps you have a network that could help the idea succeed? Make some introductions. Offer your input as a member of the board, an advisor or pitch in if you see they need help with marketing or other aspects of the business. Crowdfunding is about more than just raising funds...it is about making connections and helping entrepreneurs grow.

Will I be notified when a campaign closes?Yes. You will be contacted by the Entrepreneur once the campaign successfully closes and will receive a notification email from FundedByMe.

Should I diversify?Absolutely! 8 out of 10 businesses could fail so, it’s important to maintain a diver-sified portfolio and invest in at least 10-12 businesses a year.

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Become part of the next big

thing today!

FundedByMe is a Swedish registered company based in Stockholm, SwedenFundedByMe Crowdfunding Sweden AB (Publ), Organisation number 556871-1823