YOUNG PROFESSIONALS’ 2016“Somewhere in the crowd: Exploring alternative sources of funding”

Thomas Schneider, CIO and Co-founder, BrickVest

June 2016

Are You Personally Invested in Real Estate?

a. Yes

b. No

Pole

Please answer the following question on your dedicated device

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Real Estate Investment Market: How It Currently Works?

Gated Industry leading to unequal access, conflict of interests, lower returns and no transparency

Before Fees

Investable

€100

After Fees

Investable

€80

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Real Estate Crowdfunding

Connecting Investors with Worldwide Investment Opportunities

Retail Investors

Family Offices

Institutional Investors

HNW Individuals

Real Estate

Investments

Worldwide

£Browse Investments

through the platform1Invest in minutes

through a simple and

secure online process2

Track performance

online from the platform

dashboard3

Easy, simple, transparent

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Value Proposition

RE Crowdfunding Platforms benefit both the Investors and the Sponsors

LOWER FEESreduced middlemen generating higher returns

ENHANCED USER EXPERIENCE24/7 access to investments and earnings from the

platform online dashboard

INVESTOR BENEFITS

DIRECT ACCESS to a curated selection of real estate investment

opportunities

DIVERSIFICATION100% customised portfolio diversified by risk,

geography and strategy

SPONSOR BENEFITS

ACCESS TO INNOVATIONBe at the forefront of technological advancements in

Real Estate

DIVERSIFIED SOURCES OF CAPITALless depended on a few main capital providers

REPORTING SERVICESongoing investor reporting

INVESTOR NETWORK EXPANSIONaccess to a large network of investors

BETTER TERMSlower sourcing and administrative costs

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The Real Estate Crowdfunding Scene

Currently there are three main business models for Real Estate Crowdfunding

1. Brokerage Model (connecting people and deals)

2. Investment Management Model (lightly regulated)

3. Investment Management Model (fully-regulated)

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History of Real Estate Crowdfunding

Key events in Real Estate Crowdfunding over time

2010 2014

Apr

2012

Oct

2015

US SEC votes to adopt

Title III of JOBS act (non-

accredited investors)

Real Estate crowdfunding

broke $1bn mark

FundRise / US

(2010)

JOBS act signed in the

US

Sep

2013

JOBS act Title II signed in

the US enabling startups

public fundraising

Apr

2014

FCA PS14/4 on the

regulatory approach to

crowdfunding came into

effect

1 Deal Index 2015 and Preqin 2015

230 Real Estate crowdfunding

Platforms with an estimated

$2.6bn market worlwide1

20152013

Realty Mogul / US

(2012)

IFunding / US

(2012)

RealtyShares / US

(2013)

Property Partner / UK

(2014)

BrickVest / EU

(2014) Property Moose / UK

(2013) Property Crowd / UK

(2013)

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UK Crowdfunding Trading Volume Breakdown

Real Estate is the last to arrive at the party

Source: University of Cambridge, Judge Business School and Nesta, 2015

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Overview of Real Estate Crowdfunding Worldwide

Real Estate Crowdfunding gains momentum

NORTH AMERICA

2015

$1.39bn(54% Global Share)

2014

$566M

EUROPE

2015

$1bn(39% Global Share)

2014

$424M ASIA2015: $180m

(7% Global Share)

2014: $20m

(2% Global Share)

$0m

$500m

$1,000m

$1,500m

$2,000m

$2,500m

$3,000m

$3,500m

$4,000m

20122013

20142015

2016

US Europe Rest of the World

Growth of Global Real Estate Crowdfunding

Exponential growth over the last four years from $19.1m (2012) to

an estimated $2.6bn funding volume of real estate crowdfunding

platforms in 2015.

$19.1m

$396.4m

$1.0bn

$2.57bn

$3.4bn

Source: Massolution 2015CF Real Estate Crowdfunding Industry Report /

Deal Index 2015 and Preqin 2015

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The Real Estate Crowdfunding Trends

What next developments will affect Real Estate Crowdfunding globally

1. Increased focus on Regulation

2. Technology Disruption: Blockchain

3. Getting the attention of well established

Institutional Real Estate players

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Pole

Please answer the following question on your dedicated device

After this presentation, would you consider investing in Real

Estate via a Crowdfunding platform?

a. Yes

a. No

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Pole

Please answer the following question on your dedicated device

If yes, what would be the main driver for your decision?

a. Liquidity

a. Low minimum amount

b. Transparency

c. Diversification

a. Lower fees

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