1

Opportunity Overview

May 2012

2

The Problem: America’s Investment System is Broken…

•Although half of our jobs and output comes from startups and small businesses,

essentially all of our savings go into Fortune 500 companies.

U.S. Investor Breakdown

2%98%

Accredited Non-accredited

50%

50%

Large Businesses Small Businesses

U.S. Jobs/GDP by Business Size

3

$258

$134

0

50

100

150

200

250

300

2010 2011

$ i

n m

illi

on

s…so Entrepreneurs Have Inadequate Access to Capital

•Entrepreneurs are currently facing one of the greatest capital crunches since the

Great Depression.

Seed Stage Capital Invested

4

The Game-Changer: The JOBS Act

•Everything is about to change: for the first time since 1934, anyone (includes other

98%) will soon be allowed to invest in a private entrepreneurial company.

•The JOBS Act will fundamentally change seed capital funding:

Overview of the Crowdfunding Act

Max Offering $1,000,000

General Solicitation Removes general solicitation restriction

Unaccredited Investors Allows unaccredited investors to participate

SEC and State Filings Simple one-touch filing

Broker / Dealer Not required to register as a broker dealer

Types of Offerings Common Stock or Revenue Based Financings

Shareholder Cap Removed for crowdfunding

Registration Costs Significantly reduces costs of state registration

5

The Result: Equity Crowdfunding

•Leverages the Internet and social media, to empower entrepreneurs to raise seed

capital from friends, family, customers and the crowd.

•Gives entrepreneurs the ability to tap into a new pool of capital.

The Essence of Crowdfunding

x =$$

$

$

$

$

$

6

Crowdfunding: Already A Proven Business Model

Kickstarter: New Backers / Month (in thousands)

50 55 60 65 70 75 81 87 93 100 107 117 127 142 157 177202

232267

307352

402

457

522

597

682

772

862

952

1042

0

200

400

600

800

1,000

LINEAR GROWTH EXPONENTIAL GROWTH

Helped companies raise $120

million in the past year (3x the

prior 2 years combined)

Incredible given Kickstarter is a “donation-only” platform.

7

Marketplace: A Sizeable Opportunity in the U.S.

$30 Trillion$100 Billion

$6.2

Billion

$60

Billion

Friends

& Family

Total U.S. Savings 2013 EstimateEarly Stage Financing

Initial Target

Market

Friends and

Family will Shift

to Crowdfunding

Redirecting Just

1% > 10x

Venture Capital

8

SeedInvest: Taking Crowdfunding to the Next Level

9

Why Us: Ahead of the Crowd and Positioned to Win

Industry Involvement Partnership Discussions

Point person for all contact with the

White House, Senate and Congress

Not Just About Tech

• People are missing the

bigger picture.

• Retail businesses and

brands can advertise to

existing customers.

o Higher success and

lower failure rates.

• Have already launched a

student ambassador

program at seven schools.

Founder and Member of the

Executive Committee

Advisor

Crowdfunding

Professional

Association

10

Why Us: Top Management Team

Ryan M. Feit

Prior to SeedInvest, Ryan worked at Wellspring Capital Management and Lehman Brothers where he invested in,

financed and managed dozens of private and public businesses. Ryan received an MBA in Entrepreneurial

Management from The Wharton School of the University of Pennsylvania and a BBA in Finance and Accounting

from the University of Wisconsin-Madison.

James Han

Prior to SeedInvest, James was a technology investor at Francisco Partners. James also held various technology –

related roles at Morgan Stanley, Riot Games, and Cisco. James received an MBA in Marketing and Entrepreneurial

Management at The Wharton School of the University of Pennsylvania, and holds a BS in Economics from the

Wharton Undergraduate Program and a BAS in Computer Science from the University of Pennsylvania.

11

Now is the Time: Things Are Just Starting to Heat Up

Searches for “Crowdfunding” have been growing exponentially during 2012.

-5

0

5

10

15

20

25

Nov 7

2010

Dec 19

2010

Jan 30

2011

Jan 9

2011

Feb 20

2011

Apr 3

2011

May 15

2011

Jun 26

2011

Aug 7

2011

Sep 18

2011

Oct 30

2011

Dec 11

2011

Jan 22

2012

Mar 4

2012

Google Search Volume Index for “Crowdfunding”