Finego is an online platform where investors meet entrepreneurs and the former invest in the projects of the latter, without intermediary and with minimal transaction costs.

2. The Project
Finego is an online platform
where investors meet
entrepreneurs and the former
invest in the projects of the
latter, without intermediary and
with minimal transaction costs.
Finego anticipates the next move
in banking and offers to the
community a system combining
simplicity, rapidity and moral
edge.

3. Tail Banking
Risk
Because of high fixed costs
3F
(offices, employees), small
Biz
angels Equity projects are neglected,
VC
gap independently of profitability
IPO
Amounts
Banks
involved
BASIC IDEA SMEs: 99% of cies in
Instead of having VCs financing the Europe
Micro-enterprises: 91%
entirety of the needs of a very small of cies
number of candidate companies, why not
have them finance a small part of a larger
number of start-ups and offering the
community to crowdfund the rest?
TAIL BANKING

4. Venture capital investment in Europe

5. Enabling Tail Banking
INHIBITOR SOLUTION
Disintermediate and
High fixed costs and transac-
dematerialize the investor-
tion costs
entrepreneur relationship
Primary screening followed
Information asymmetry
by “crowd screening”
Red tape No-formality legal strategy

6. Demand of funds
Bank Supply of funds
A E+L
Credits Deposits
Securitization
S S
E Stock E
C C
exchange U
U
R R
I I
T OTC T
I I
E E
S S
Finego

7. From screening to monitoring
Investors follow the
life of the company
through an online
“monitoring board”
Develop
ment
Screened projects
are posted online Follow-up
and suggested to platform
investors Crowd
Start-up
screening
Online and
launch funding
Screen Online users
& seed vote, provide information
Primary and/or expertise, and
screening invest
Auditors/incubators and VCs
identify promising projects
and seed-fund them

8. One click, no formality
• Online platform where investors meet
entrepreneurs without intermediary
• Entrepreneur has a Finego page for presenting his
project and attracting investors
• Investor browses through projects and makes
one-click investments
• No formalities  zeroed economic and non-
economic transaction costs
• Intelligent suggestions based on browsing
patterns

9. How to reduce the information asymmetry
Prior to online launch After online launch After funded
• Primary screening: • Compulsory public • Follow-up platform
VCs and auditors do information: • Information on the
their due diligence business plan company’s business
job • Confidential continuously fed-in
• VCs may give a little information available • Frequency of
kickstart by putting after confidentiality accounting reporting
in some money agreement
• Entrepreneur can • Pay-for information
buy expert audit and • Multilateral vote:
subsequently sell it every user can give
to interested evaluation of any
investors project
• “Experts market”:
people, according to
their disclosed
credentials, can offer
their expertise to Besides “content information”,
evaluate projects entrepreneur can leverage
• “Style information” “style information” to signal
quality and seriousness by
customizing and theming the
design of his Finego page as if
it were a blog

10. Once the investor has made up her mind
Share • Investor enters his bank
account number
Commitment • Will be debited at the end of
to fund Convertible the fund-raising and only if the
During the fundraising bond fund-raising is complete
process, investors • Legal minimim K already
commit investment provided by VC (seed-fund)
amounts Bond
45% of 50.000 (1 share = 5€)
Capital increase operation
10 x 5€ = 50€
• Standardized contracts
• Electronically signed

11. Legal strategy
Entrepreneur has to constitute his company
according to the legal outfits we propose
Societas Country-specific
Europaea law
“Mailbox strategy”:
Every project
All projects launched
according to
according to best country-
local law
specific law, independently
of entrepreneur’s country

12. Some examples of legal outfits
Société
SA/SPRL/SPRL-
Coopér Shares only S
Limited (UK)
ative negotiable Negotiable Minimum capital
between securities very low
associates
Capital can vary
without General Meeting
necessary when Statutorily
requesting variation of flexible
statutory capital
changes
Follow-up interface:
No need for General Meeting
- Financial Statements
when capital varies
- Agenda
Underwritte Liberated - Strategic info
n capital capital
Fund /  Virtual Shareholders’ General
withdrawal Meeting:
Share   - Vote
withdrawal - Tweet
Mandate service

13. Alternative capitalism
• Not just another way to diversify away risk and run after
return
• Investment opportunities whose main motive is affinity
• Satisfaction of intimacy with project one values and likes,
instead of dropping one’s money off on the account at the
bank and not knowing what happens with it
• Human-scale projects, with a name and a face
• Satisfaction of helping someone realizing one’s dream:
good-feeling
• Something to tell your friends about
• Click here to watch a video discussing the morality of
Finego

14. Social networking
• Leverage as much as possible users’ online social
networks to generate activity on Finego
• Technologies to carry one’s social network from
website to website, to enable one’s friends and
acquaintances to follow one’s activites on other
websites (Facebook Connect)
• Social networks as virtual webs of people
importable on many different platforms
• Finego as a new kind of social networking: bring
one’s network to invest in one’s project

15. Business Model
KEY PARTNERS KEY ACTIVITIES VALUE CUSTOMER
- Screening PROPOSITION SEGMENTS
entrepreneurial CUSTOMER
- Give entrepreneur
projects - Underser-
access to RELATIONSHIP
- Seed fund served en-
- Venture capital massive - Follow-up platform for investors
- Organize crowd-
audience - Consulting + advice to entrepreneurs
funding through trepreneurs
- Online investment
social network
banks
- Undercol-
- Very limited
lateralized en-
- Auditors transaction costs
KEY trepreneurs
- Public funding agencies RESOURCES
- Feel-good investors
- IT resources - Social network
- Social network sites - IT platform CHANNELS - Friend in-
- HR for screening & - Moral
vestors
capitalism - Web platform
web design
- Networks to find projects
- Funds
- Legal strategy - Local capitalism
- Peppercorn
investors
COST STRUCTURE REVENUE STREAM
- Finders of projects - Human resources - Auditing services
- Screeners - Legal - Transaction fee (brokerage)
- IT development - Seed-funding shareholding
- Subscription fee

16. Back-of-the-envelope business plan
• In 2008-2009, average number of newly-created
companies in France = 400 000 (although many
bad and very small)
• In 2007-2009, average number of VC-funded new
companies in Europe = 5 000
• Hypothesis 1: funding need of average Finego
project = 100 000€
• Hypothesis 2: transaction fee = 3%
• Hypothesis 3: 1 project out of 10 is screened
To make 10^6 of revenue/yr we
need to collect 4 000 projects (of course the transaction fee can be changed)
and launch online 400 of them