the emerging infrastructure of the modern private capital markets
TRANSCRIPT
November, 2016
The Emerging Infrastructure of the Modern Private Capital [email protected][email protected]
THE PRIVATE CAPITAL MARKETS ARE MOVING ONLINE…
The public markets moved online in the late 1990’s and early 2000’s to achieve greater speed, lower costs and increase investor participation.
With the passage of The JOBS Act in 2012, the private capital markets are moving online. This global shift presents massive early stage investment opportunities in this new ecosystem.
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AND THIS MOVEMENT DRIVES OUR MISSION
Our mission: Brilliant people exist everywhere in the world. Based on our work in 40 countries, the main obstacle they face in creating innovation, jobs and entrepreneurship is no access to capital.
The technology ecosystem that enables equity and debt crowdfunding is the first wave of innovation in the radical reshaping of the private capital market. This will drive global innovation, economic development and job creation.
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WHAT FORMS OUR VIEW OF THIS GLOBAL INFRASTRUCTURE OPPORTUNITY• We led the fight to change 77 year old laws by
creating the crowdfunding language in the JOBS Act
• Their 460-day campaign to legalize equity and debt crowdfunding:
• Testified in front of the US House and Senate 5 times
• Gained the support of President Obama and the White House
• Worked closely with both Democrats and Republicans to pass crowdfunding as part of the JOBS Act
• On April 5, 2012 they attended the White House Rose Garden Ceremony for President Obama to sign it into law
NOW IS THE TIME FOR A FUND TO BUILD NEW PRIVATE
CAPITAL MARKET INFRASTRUCTURE
52014 2015 20160
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ket s
ize (U
S $B
illion
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GLOBAL CROWDFUNDING MARKET GROWING OVER 150% PER YEAR1
1 Cambridge University
THE MEDIA HAS NOT YET CONNECTED THE DOTS…We are often called upon for industry analysis, but the real story has yet to be covered…
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• Featured in May 2013 Annual 100 Brilliant Companies issue
• 6-page feature article on CCV Co-founders and their leadership role in crowdfunding
• Selected for “The Innovators” series
WE ARE BUIDLING THE NEW PRIVATE CAPITAL MARKET INFRASTRUCTURE
72 The Future of Finance, Volume 3. March 13, 2015, Goldman Sachs Global Investment Research
Goldman Sachs stated that the “Socialization of
Finance” creates a $4.7T market disruption opportunity
in the private capital markets, via the development of equity crowdfunding , debt crowdfunding, real estate crowdfunding and
robo-advising2
World Bank/CCA estimates nearly $100B market opportunity
in developing economies alone
WHAT IS THE STATUS OF THE NEW PRIVATE CAPITAL MARKET INFRASTRUCTURE
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EVOLVING MARKETSHIGHEST MARKET ENGAGEMENT
United KingdomEuropean Union United StatesAsia-PacificLatin AmericaCanadaMENAAfrica
BUILDING MARKET AWARENESS Huge impact potential in every market Our World Bank research demonstrated the “leapfrogging effect” that crowdfunding tech may deliver in developing economies – empowering, job creation, innovation and entrepreneurs
CCV is utilizing its proprietary 5 sector model for investment in the crowdfunding ecosystem that will be built over the next 10 years
5 SECTORS OF INFRASTRUCTURE OPPORTUNITIES
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GLOBAL MARKET
INFRASTRCTURE FOR
CROWDFUNDING
Crowdfunding platforms and
secondary markets
TRUST AND TRANSPARANCY
TOOLS TO ENBALE
MARKETS TO SCALE
e.g. Escrow, title, transfer, investor
relations, compliance,
diligence services
DATA / ANALYTICS /
METRICS SERVICES
Turning data into actionable
information for investors, govts
and entrepreneurs
MONEY TRANSFER:
BLOCKCHAIN, CAPITAL FLOWS
addressing cost, scale, friction &
liquidity
WHITE SPACE OPPORTUNITIES
As technology, customer needs, best practice and
competitive landscapes shift, new technologies
will emerge
INVESTORS NEED A UNIQUE VANTAGE POINT
4 YEARS IN 40 COUNTRIES BUILDING KNOWLEDGE AND RELATIONSHIPS
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#1 Advise governments and regulators to shape crowdfunding policy and regulation
Example Activities Include:• Created the World Bank’s frameworks for
crowdfunding in developing economies
• Created the CCA Balanced Stakeholder Framework™ to help governments create effective policy and regulation
• Created the CCA Crowdfunomics Equation™ • Created Private Capital Market Roadmap for
Development
INVESTORS NEED A UNIQUE VALUE PROPOSITION
4 YEARS IN 40 COUNTRIES BUILDING KNOWLEDGE AND RELATIONSHIPS
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HOW DO YOU ADD VALUE IN AN ECOSYSTEM? • Enabled crowdfunding associations in various
markets to build Industry collaboration PLUS regulator-to-industry relationships
• Advocating data standards and documentation standards
• Advise Individual Debt/Equity/Real Estate Platforms • Investors need to move efficiently
#2 Advise global crowdfunding platforms and related FinTech companies in the space
INVESTORS NEED GUTS AND CONVICTION
4 YEARS IN 40 COUNTRIES BUILDING KNOWLEDGE AND RELATIONSHIPS
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• “Early Stage Investing” means ”EARLY STAGE INVESTING”
• Creating new financial products/services in mature markets
• Transplanting successful products/services to developing markets
• Understand the market environments, regulatory stability, and the ability to maintain IP, and to exit the investments AND REPATRIATE CAPITAL
#3 We are already investing in the space to demonstrate the investment thesis
CROWDFUNDING INFRASTRUCTRE IS PHASE 1 OF THE DEVELOPMENT OF THE MODERN
PRIVATE CAPITAL MARKET
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NEW GLOBAL REGULATION + TECHNOLOGY INNOVATION IS CREATING INVESTMENT OPPORTUNITIES
Governments must create new access to capital for SMEs and start-ups because they need new jobs, entrepreneurship and innovation that will create economic growth and political stability.
DO THE EXITS OFF OF THE AIRPLANE WORK BOTH ON WATER AND LAND?
We believe exits will occur primarily via acquisitions by global technology and finance players
Buying new financial services and business models may be highly desirable by established firms
DIFFERENT LEVELS OF EXISTING INFRASTRUCTURE WILL DEMAND DIFFERENT APPROACHES
Developed economies: making existing markets flatter/lower costDeveloping economies: creating new markets/services/products via mobile/social Ability to transplant successful models to other similar markets
Crowdfunding technology is reshaping the private capital markets we are on page 87 of a 1000 page novel
AVOID THE RUSH AND PRICES OF INVESTING IN PAYMENTS…
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CROWDFUNDING IS POTENTIALLY A
$4.7 TRILLION DOLLAR GLOBAL
MARKET DISRUPTION IN
PRIVATE CAPITAL MARKETS
WE ARE ALWAYS LOOKING TO MEET
NEW TECHNOLOGY COMPANIES IN
THE CROWDFUNDING /
NEW PRIVATE CAPITAL MARKET
ECOSYSTEM
INVESTORS NEED TO LEVERAGE
GLOBAL RELATIONSHIPS +
MARKET EXPERTISE TO
GENERAGE EARLY DEAL FLOW
ACCESS
WHILE CROWDFUNDING WILL FUNCTION
PRIMARILY WITHIN EACH COUNTRY – INVESTORS WILL NEED A GLOBAL
VIEW TO SUCCEED
November, 2016
The Emerging Infrastructure of the Modern Private Capital [email protected][email protected]