CrowdfundX NYC Presentation: Global Investment Crowdfunding

1
The Global Investment Crowdfunding Industry
Data, Insight & Trends
Jonathan Sandlund j@thecrowdcafe.com
Jonathan Sandlund | @jsandlund
Wednesday, July 17, 13

2
thecrowdcafe.com research, data and analysis on
the global investment crowdfunding industry
localinvestors.org live, think, invest local
about me
Jonathan Sandlund
j@thecrowdcafe.com
@jsandlund

3
Intro to Investment Crowdfunding
The Mechanism

4
Funded$
$
$
$
$
the mechanism
FAMILY FRIENDS
CUSTOMERS
INVESTORS
AFFINITIES
X =

5
Funded$
$
$
$
$
the mechanism
FAMILY FRIENDS
CUSTOMERS
INVESTORS
AFFINITIES
X =

6
Funded$
$
$ $
$
the mechanism
FAMILY FRIENDS
CUSTOMERS
INVESTORS
AFFINITIES
X =

7
Funded
$
$
$
$
$
the mechanism
FAMILY FRIENDS
CUSTOMERS
INVESTORS
AFFINITIES
X =

8
Not
Funded
$
$
$ $
$
the mechanism
FAMILY FRIENDS
CUSTOMERS
INVESTORS
AFFINITIES
X =

9
reward vs. investment-based
~ $5,000
~$100,000
Average Fundraise

10
The Legalities of Crowdfunding
Title II & Title III of the JOBS Act

The JOBS Act
11
Title II Title III
‣ Lifts ban on general solicitation
and advertising on security
offerings to accredited
investors
‣ Provided issuer takes reasonable
steps to verify accreditation
‣ Must ﬁle amended Form D
‣ Businesses Raise up to $1mm
in 12-month period
‣ Investors tiered limits on
investment amount
‣ Rule-making includes SEC and
FINRA
Crowdfunding for
Accredited Investors
Crowdfunding for
Everyone

Accredited Crowdfunding IMPACT
12
‣ 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 markets in an enormous
way

Democratized Crowdfunding IMPACT
13
‣ Businesses
• Conversion of Social to Financial Capital
• New Era of Marketing
‣ Investors
• Financial Empowerment
• Trust
• Meaningful Investment
‣ Society
• Equal Opportunity

14
The U.S. Market

platforms: market segmentation
15
Investment Crowdfunding Platforms
Niche/Affinity"Local" (SMBs)Startups

16
Global Crowdfunding
What can we learn?

Macro-Data: Selected Sample
17
Equity
180 Deals
$132 Million
Equity
58 Deals
~$15 Million
Debt
2,248 Deals
$194 Million
Equity
27 Deals
$2.2 Million
Equity
9 Deals
$784,000
Equity
15 Deals
$13 Million
* Selected sample of platforms

18
289 Equity
Placements
2,248 Loans
$300+ Million in Crowdfunding
Transactions...

19
Crowdfunding Models
Innovation, Diversity

20
‣ A+ to C Risk Bands
Applied
‣ Offer 1, 3, 5 year loans
‣ £5,000 - £1,000,000
‣ Secondary market
‣ Crowdfunded two
$80,000 small business
loans in under 29 minutes
Debt
2,248 Deals
$194 Million

21
Discovery

22
Splash Bathroom Accessories Limited

23
Credit Score History

24
Key Financials

25
Questions & Answers

26
$0!
$2,000,000!
$4,000,000!
$6,000,000!
$8,000,000!
$10,000,000!
$12,000,000!
$14,000,000!
Monthly Loan Originations Since Inception!
August 2010 June 2013

27
‣ Launched 2010
‣ Sector Focus General (concentration: internet, food & drink)
‣ Lowest Raise $19,000 Highest Raise $2.3 million
‣ Averages (median, n= 48)
‣ Raise $124,800
‣ Equity Oﬀered 16%
‣ Post-Money Valuation $805,000
‣ Number of Investors 52
‣ Investment Size $2,712 (low: $331; high: $16k)
Equity
58 Deals
~$15 Million

28
‣ Launched July 2012
‣ Sector Focus Internet
‣ Lowest Raise $15,200 Highest Raise 240,000
‣ Averages (median, n=24)
‣ Raise $64,000
‣ Equity Oﬀered 10%
‣ Post-Money Valuation $520,000
‣ Investment Size $1,070
Equity
27 Deals
$2.2 Million
Minimum Investment
$16

29
‣ Launched Mid-2012
‣ Sector Focus Consumer Products/Retail
‣ Lowest Raise $440,000 Highest Raise $2.4 Million
‣ Averages (median, n=15)
‣ Investment Size $59,333
Equity
15 Deals
$13 Million

30
‣ Domain Expertise Founding team has deep experience investing in
consumer product and retail industries
‣ Curated Deal-Flow To date, less than 2% of applications accepted
onto the platform
‣ 3 Weeks Time it took Melt to raise $1,000,000
Equity
15 Deals
$13 Million

31
The Disruption

32
Crowd
funding
Technical
Disruption
Entrance of the internet into
the private capital formation
process.
Cultural
Disruption
A desire to connect more
meaningfully with the things
we buy, the things we do, and
the things we invest in.
Two mega-trends colliding to drive a paradigm shift in early
stage capital markets
Investment Crowdfunding

A fundamentally more eﬃcient
capital formation process
33
Technical
A Big Bank...
Source: http://www-core.nesta.org.uk/library/images/NestaBanks.jpg

But it’s not just structural change
driving the disruption
34
Cultural
It’s cultural.

35
Chicago Booth: Only 13% of Americans trust the
stock market
Distrust is pervasive
Chicago Booth Financial Trust Index
Cultural

Today little alternative to public markets
36
Tomorrow individuals empowered to invest in the
the companies, causes and people they believe in
Cultural

A cultural shift
37
‣ Web 1.0 The Information Web
‣ Web 2.0 The Connected Web
‣ Web 3.0 The Meaningful Web
Cultural

38
Jonathan Sandlund
j@thecrowdcafe.com
@jsandlund
Thank You!

CrowdfundX NYC Presentation: Global Investment Crowdfunding

Recomendados

Recomendados

Mais conteúdo relacionado

Destaque

Destaque (17)

Último

Último (20)

CrowdfundX NYC Presentation: Global Investment Crowdfunding