thecrowdcafe | investment crowdfunding presentation
DESCRIPTION
Check out thecrowdcafe.com for research and data on the investment crowdfunding industry. Presentation delivered at the Silicon Valley Crowdfund Conference on April 5, 2013 Twitter: @jsandlund LinkedIn: www.linkedin.com/in/jsandlundTRANSCRIPT
![Page 1: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/1.jpg)
1
The Global Investment Crowdfunding IndustryData, Insight & Trends
April 5th, 2013
Jonathan Sandlund [email protected]
Jonathan Sandlund | @jsandlund
![Page 2: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/2.jpg)
2
thecrowdcafe.com leading provider of research, data and analysis on the global investment crowdfunding industry
localinvestors.org live local. think local. invest local.
about me
Jonathan [email protected]@jsandlund
![Page 3: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/3.jpg)
3
Our sponsor: Thank you!
Leading law firm serving the security crowdfunding industry: Portals.
Crowdpreneurs; The Crowd
![Page 4: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/4.jpg)
4
Intro to Investment CrowdfundingThe Mechanism
Jonathan Sandlund | @jsandlund
![Page 5: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/5.jpg)
5
reward vs. investment-based Reward-Based Investment-Based
‣ Receive no financial return
‣ Legal today
‣ Perks or rewards in return for pledges
‣ Securities offered in return for crowds’ investment
‣ Equity
‣ Debt
‣ Revenue share
‣ Blend
‣ The JOBS Act
‣ Title II vs Title III
![Page 6: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/6.jpg)
6
Funded$
$
$$
$
the mechanism
FAMILY FRIENDSCUSTOMERS
INVESTORSAFFINITIES X =
Jonathan Sandlund | @jsandlund
![Page 7: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/7.jpg)
7
Funded$$
$$
$
the mechanism
FAMILY FRIENDSCUSTOMERS
INVESTORSAFFINITIES X =
Jonathan Sandlund | @jsandlund
![Page 8: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/8.jpg)
8
Funded$$
$ $
$
the mechanism
FAMILY FRIENDSCUSTOMERS
INVESTORSAFFINITIES X =
Jonathan Sandlund | @jsandlund
![Page 9: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/9.jpg)
9
Funded$ $
$ $
$
the mechanism
FAMILY FRIENDSCUSTOMERS
INVESTORSAFFINITIES X =
Jonathan Sandlund | @jsandlund
![Page 10: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/10.jpg)
10
Funded$
$
$
$
$
the mechanism
FAMILY FRIENDSCUSTOMERS
INVESTORSAFFINITIES X =
Jonathan Sandlund | @jsandlund
![Page 11: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/11.jpg)
11
Not Funded
$
$
$ $
$
the mechanism
FAMILY FRIENDSCUSTOMERS
INVESTORSAFFINITIES X =
Jonathan Sandlund | @jsandlund
![Page 12: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/12.jpg)
12Jonathan Sandlund | @jsandlund
The Legalities of CrowdfundingTitle II & Title III of the JOBS Act
![Page 13: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/13.jpg)
13
The JOBS Act
‣ Signed into law by President Obama on April 5th, 2012
‣ Passed the House 390-23; Passed the Senate 73-26
‣ 270 day rule-making period given to the SEC & FINRA (Dec. 31, 2012)
‣ SEC missed Dec. 31st deadline
‣ Title II & Title III delayed
Jonathan Sandlund | @jsandlund
![Page 14: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/14.jpg)
The JOBS Act
14
Title II Title III
‣ Lifts ban on general solicitation and advertising on security offerings to accredited investors
‣ Broker-Dealer License/Affiliation
‣ Provided issuer takes reasonable steps to verify accreditation
‣ Businesses Raise up to $1mm in 12-month period from both accredited and non-accredited investors
‣ Investors tiered limits on investment amount
‣ Rule-making includes SEC and FINRA
Crowdfunding for Accredited Investors
Crowdfunding for Everyone
![Page 15: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/15.jpg)
Accredited Crowdfunding IMPACT
15
‣ Will bring dramatic efficiencies to our private capital markets • Efficiencies = (Internet) * (Private Sector Innovation)
‣ Geographically, socially indiscriminate
‣ Stands to motivate accredited capital off the sidelines and into private companies in an enormous way
Jonathan Sandlund | @jsandlund
![Page 16: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/16.jpg)
Democratized Crowdfunding IMPACT
16
‣ Businesses • Conversion of Social to Financial Capital • New Era of Marketing
‣ Investors • Financial Empowerment• Trust • Meaningful Investment
‣ Society • Equal Opportunity
![Page 17: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/17.jpg)
17
The U.S. Market
Jonathan Sandlund | @jsandlund
![Page 18: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/18.jpg)
platforms: market segmentation
18
Investment Crowdfunding Platforms
Niche/Affinity"Local" (SMBs)Startups
![Page 19: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/19.jpg)
19
Global CrowdfundingWhat can we learn?
Jonathan Sandlund | @jsandlund
![Page 20: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/20.jpg)
Macro-Data: Selected Data
20
Equity180 Deals
$132 Million
Equity34 Deals
~$7 Million
Debt1,751 Deals$144 Million
Equity17 Deals
$1.3 Million
Equity9 Deals
$784,000
Equity11 Deals
$9.7 Million* Selected sample of platforms; data is a selected sample
![Page 21: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/21.jpg)
21
251 Equity
Placements
1,751 Loans
$290+ Million in Crowdfunding Transactions...
![Page 22: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/22.jpg)
22
Crowdfunding ModelsInnovation, Diversity
Jonathan Sandlund | @jsandlund
![Page 23: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/23.jpg)
23
‣ A+ to C Risk Bands Applied
‣ Offer 1, 3, 5 year loans
‣ £5,000 - £500,000
‣ Auction model: investors bid
‣ Secondary market
‣ Crowdfunded two $80,000 small business loans in under 29 minutes
Debt1,751 Deals$144 Million
Jonathan Sandlund | @jsandlund
![Page 24: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/24.jpg)
24
Discovery
Jonathan Sandlund | @jsandlund
![Page 25: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/25.jpg)
25
Splash Bathroom Accessories Limited
Jonathan Sandlund | @jsandlund
![Page 26: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/26.jpg)
26
Credit Score History
Jonathan Sandlund | @jsandlund
![Page 27: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/27.jpg)
27
Key Financials
Jonathan Sandlund | @jsandlund
![Page 28: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/28.jpg)
28
Questions & Answers
Jonathan Sandlund | @jsandlund
![Page 29: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/29.jpg)
29
‣ Launched 2010
‣ Sector Focus General (concentration: internet, food & drink)
‣ Lowest Raise $19,000 Highest Raise $1.6 million
‣ Averages (median, n= 34)
‣ Raise $97,000
‣ Equity Offered 15%
‣ Post-Money Valuation $633,000
‣ Number of Investors 51
‣ Investment Size $2,468 (low: $331; high: $11k)
Equity34 Deals
~$7 Million
Jonathan Sandlund | @jsandlund
![Page 30: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/30.jpg)
30
‣ Launched July 2012
‣ Sector Focus Internet
‣ Lowest Raise $15,200 Highest Raise 240,000
‣ Averages (median, n=17)
‣ Raise $64,000
‣ Equity Offered 10%
‣ Post-Money Valuation $560,000
‣ Number of Investors 69
‣ Investment Size $1,127
Equity17 Deals
$1.3 Million
Jonathan Sandlund | @jsandlund
Minimum Investment $16
![Page 31: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/31.jpg)
31
‣ Launched Mid-2012
‣ Sector Focus Consumer Products/Retail
‣ Lowest Raise $500,000 Highest Raise $2.4 Million
‣ Averages (median, n=4)
‣ Number of Investors 20
‣ Investment Size $39,667
Equity11 Deals
$9.7 Million
Jonathan Sandlund | @jsandlund
![Page 32: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/32.jpg)
32
‣ Domain Expertise Founding team has deep experience investing in consumer product and retail industries
‣ Curated Deal-Flow To date, less than 2% of applications have been approved
‣ 3 Weeks Time it took Melt to raise $1,000,000
Jonathan Sandlund | @jsandlund
Equity11 Deals
$9.7 Million
![Page 33: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/33.jpg)
33
To Summarize
Jonathan Sandlund | @jsandlund
![Page 34: TheCrowdCafe | Investment Crowdfunding Presentation](https://reader034.vdocuments.site/reader034/viewer/2022042714/54c9433c4a795979718b4575/html5/thumbnails/34.jpg)
Summary
34
‣ Data • Zero Fraud
• Young Market, Traditional S-Curve
‣ Crowdfunding Platforms • Colorfully Diverse
- Debt, Equity, Rev-Share, Blend
• Empowering Businesses & Investors
‣ Value • Businesses, Investors, Communities
Jonathan Sandlund | @jsandlund