Leading Equity-based

Crowdfunding service from the

North

Invesdor Ltd@Invesdor

What is Crowdfunding?

“The practice of funding a project or venture by raising many small

amounts of money from a large number of people, typically via the

Internet”. (Oxford Dictionary)

What is it good for?

• Alternative source of early seed funding for entrepreneurial

ventures.

• Conceptual fine-tuning through real-time interaction with

stakeholders.

• Opportunity to recruit initial customer base and brand promoters. Democratiza

tion

• Alowing more entrepreneurial ventures to launch.

• Allowing more investors to contribute to venture growth.

The US

$3.67B

Europe

$1.33BRest

of the

World

$0.1B

Source: Massolution crowdfunding industry report 2013

Source: Nibletz on richard Schwartz – World Bank report (http://nibletz.com/2013/12/19/5-

predictions-equity-crowdfunding-2014/)

Industry geographical

breakdown 2013

Crowdfunding categories

Equity-based

Lending-based

Reward-based

Donation-based

Funders receive an interest in the form of equity in

the venture they fund or, alternatively, revenue or

profit-share arrangements.

Funders often receive fixed periodic income and

expect repayment of the original principal

investment.

Funders receive non-monetary rewards often take

the form of a token of appreciation or the pre-

purchasing of products or services.

Funders donate to causes that they want to support,

with no expected compensation.

116 MUSD

204 MUSD

1 000 MUSD

-

 200

 400

 600

 800

1 000

1 200

2012 2013 2014

Global Equity-based Market Size (MUSD)

Source: Massolution crowdfunding industry report 2013 and World

Bank report

Equity crowdfunding: the fastest

growing segment

Invesdor• Building the leading equity-

based crowdfunding market place in Europe

• Team of industry professionals

• Open, transparent and scalable service model

• Impressive list of global firsts

60% market share in equity

crowdfunding in Finland 2013

Invesdor

60%

Others40%

Report: 13th March 2014 by Ministry of Finance and Ministry of Employment and the

Economy of Finland

Lasse Mäkelä16 years in finance, banking, capital raising, M&A and business development

Merrill Lynch, IcecapitalSecurities, KONE

Timo Lappi15 years of legal work with growth companies, business angels and private equity

Fondia, Castren & Snellman,

Tero

Weckroth11 years in investment banking, 5 years in biotech industry

Alfred Berg/ABN AMRO, Dresdner

Petteri Poutiainen16 years of international sales and marketing in IT industry

Inspirational sales leader and Senior Sales Director at Oracle

Mikko Bergman17 years in banking & corporate finance, entrepreneur

Alfred Berg/ABN AMRO, Managing partner of

Senior board with international financial and

legal expertise

Core operational team

Lasse MäkeläCEO, sales and marketing and partnerships

Andrea Di PietranonioOperations and

customer deal

flow

Nora LindqvistOperations and

marketing

Mikko SavolainenCommunications and community manager

Petteri KääpäCTO

Invesdor so

farcompany pitches receivedcampaigns accepted

21 successful rounds

35

0 7

1

2,

7

Milj.€raised

2,000+Investme

nts

• First secondary market for

crowdfunded equities

• First real co-operation with

established wealth

management companies

• First live equity crowdfunding

event

Impressive list of global firsts

Proud members of the Nordic

Crowdfunding Alliance

FØND

Some of our media coverage

The process: Before the Round

Ready to

go

hidden

Compa

ny

Invesdo

r

Formal checks and feedback on material

submitted on the platform

Preparation of BP, required documents

and the shares’ marketing plan

Ready

to go

hidden

Applicati

on

The process: During the Round –

Hidden Phase

Compa

ny

Invesdo

r

Notification of the pitch to Invesdor’s lead

investors

Activation of target company’s own

network and potential initial customers

Ready

to go

live

Ready

to go

hidden

Compa

ny

Invesdo

r

Promotion on the platform, newsletter,

events and social media

Active marketing, newsletter and both

online and offline channels

Round

closed

Ready

to go

public

The process: During the Round –

Public Phase

The process: After the RoundE

nd

of th

e

rou

nd

Shareholders

check

approval

Payment check and

notification to investors

Notification to

investors

Successf

ul

round

Unsucces

sful

round

Fee

payment

Money transfer

Refunds

Report to

shareholde

rs

Compa

ny

Invesdo

r

Requirements for the

crowdfunding process• Company is registered in the trade register and the business is legal and

ethic

• Committed team and clear execution plan put in place

• Amount possible to raise (Finnish Securities Market Act (SMA)):

– Up to 1,500,000 Euro without investor memorandum (prospectus)

– Up to 5,000,000 Euro without investor memorandum (prospectus) if

offered to a limited number of investors

• The following formal documents must be provided:

– Extract from the Trade Register

– Articles of Association

– List of shareholders

– Shareholder decisions of issuing the share offering

– Latest available accounts

Shareholders’ decisions and

share classes

Various options for companies in different industries:

• A shares: same rights of the entrepreneur

• B shares: less rights than A class, always recommended to keep some

rights

• Combination with a minority shareholder agreement (we have a template)

Which rights should I give to the shareholders? Will

the company still be «fundable»?

Main campaign success factors

Based on our experience we have summarized the

most relevant success factors:

Networking

Attractive

presentation

Good

preparation

• Dedication and persistence in social media

interactions

• Active networking throughout campaign

process

• Capitalize on existing fan and follower base• Attractive, good and clear project

description

• Use of images and videos

• Highlighting unique aspects of concept

• Good business and marketing plans

• Reasonable valuations and target/goal

sums

• Engagement and commitment of the

team

1

2

3