2. THE FIRST CLOSED EQUITY CASE
Thank you for your support – it’s happening now!
When I first posted our project on FundedByMe - as one of the first - I
didn’t know what to expect. But what I did know was what I wanted to do
with the investment. I wanted to create an opportunity for all of our talented
designers to reach outside of Sweden and to be able to make a living by
doing what they do best – designing beautiful products.
And now we’re there! In just a few weeks we are going live with our
international version of the site. This is all thanks to the support of our
investors and the FundedByMe crowd. By expressing their interest for
our project we got what we needed to take the next step!
Maria Richardsson, CEO and proud founder of Nordic Design Collective,
maria@nordicdesigncollective.se
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€17,500 raised from 8 investors for 3.83% of the company
5. WHY CROWDFUNDING?
VC is now what private equity was
before. Angels are now what VC
was before. And crowdfunding is
now what angels were before.”
Hall T. Martin
Director. Texas Entrepreneur Networks, USA
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8. WHY CROWDFUNDING?
• World Market (2013e): $5,100million
• US Equity CF (2013e): $166million
($116million 2012)
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9. WHY CROWDFUNDING?
• Extra benefits to entrepreneurs
1. Test the market (early clients!)
2. Attract skills and experience
3. Create brand awareness
• Extra benefits to investors
1. Coinvestment complement to business
angels, VC funds, and loans
2. Only 1 fraud case reported so far in the world
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10. WHY FUNDEDBYME?
The Unique Paneuropean, English-language,
International Crowdfunding Platform
+€3 million raised since November 2012
for 14 campaigns
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12. FUNDEDBYME – HIGHLIGHTS
EQUITY CROWDFUNDING
• +27,000 investors registered. +100 join every
day. ~ 700 active
• Average investment: 1,500€
• Average deal: 100-150k€
• English-speaking platform – cross-border
investors!
• Thousands of unique online visitors per week
• Large social media presence – and following
13. FUNDEDBYME - HIGHLIGHTS
REWARD-BASED CROWDFUNDING
•
•
•
•
+1400 companies in the system.
+750 completed projects
+13,000 reward-campaign backers
Average investment: €53 per person
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14. FUNDEDBYME - HIGHLIGHTS
• Leader in Sweden and Nordic countries –
rapidly expanding into Europe
• Offices in Sweden, Finland, Denmark,
Norway, Spain and Germany. 4 more
international offices opening soon.
• Committed to listing only quality projects
• MOUs with Top Business Schools,
Incubators, Lawyers, Service Providers…
15. FUNDEDBYME - HIGHLIGHTS
• VIP Investors (eg Matti
Vanhanen, Finland's former
Prime Minister, CEO of Finnish
Family Firms Association)
• VIP Entrepreneurs
Eg. Beibamboo (Founder Nina
Ignatius named by Forbes one
of Forty to Watch Over 40)
http://youtu.be/6YW1sbVoCnY
16. USER PROFILE: INVESTORS
I loved that a project with
such an amazing story…
that we could buy into the
change rather than just
hope that it’d succeed.
- Alf Rehn
…There is no marketplace
for external funding. This
makes crowdfunding a
good form of financing.
– Matti Vanhanen
Investments like these
allow me to take a peek at
how different companies
work and think.
– Javier Latorre
17. USER PROFILE: ENTREPRENEURS
Yes, the money was key,
but the bigger motivator
was getting this captive
audience.
– Claes Stenmark,
Virtuous Vodka
a global crowdfunding
round seems very
appropriate for us.
– Nina Ignatius,
Beibamboo
…Find investors who
share the same values
and interests in the
environment & technology.
– Sakke Arffman,
Lastu
18. SUCCESS STORY: FLIPPIN’ BURGERS
Money raised:
Sek36,502 / €4,000
Number of
Investors: 186
Date Funded:
September 2011
Sector: Food
19. SUCCESS STORY: VIRTUOUS VODKA
Money raised:
Sek1,000,140 /
€115,000
Number of Investors:
103 (10% equity)
Raised in less than 8
weeks
Date Funded:
January 2013
Sector: Organic
21. 1ST CAMPAIGN IN SPAIN WITH FAMOUS
ENTREPRENEUR ÁNGEL MARÍA HERRERA
Do you want to support?
Visit FBM.SAMASTAH.COM
22. RECENT ACCOLADES
• Bully Awards Winner
(Sweden). October
2013
• Among the 100
Europe’s Hottest
StartUps (Wired UK,
October 2013)
Sources:
http://whitebull.com/latest/2013-bully-awardwinners
http://www.wired.co.uk/magazine/archive/2013/1
1/european-startups/stockholm
23. OUR OFFER
•
•
•
•
Money
– Europe’s fastest growing crowdfunding community
Traffic
– To attract both investors and customers
Non-exclusive Platform
PR
– E-mails:
• Newsletter
• Weekly digest for investors
– Dedicated blog coverage before and after funding
– Social media coverage (FB, Twitter, G+, LinkedIn)
– Participation in seminars, investor meetings
– Presence in local press releases
– Presence in live startup events (Spain and Int’l)
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24. EASY TO START
• Register in the platfrom
• Upload presentation + business info +
financials + investment proposal
• Critical! Prepare and execute an intensive
marketing and communication plan
3-step Camapign Process:
Pre Round / Open Round / Closing
27. EQUITY CROWDFUNDING PROCESS:
STEP 1. PRE-ROUND
Investors can reserve shares. Entrepreneurs
receive feedback from the crowd.
– Test FundedByMe´s system – and your idea - by
getting the crowd to reserve shares in your
company
• These investments will be 100% effective when the
open round starts
– During this stage the presentation, valuation and
documentation can be refined.
– No board decision needed for pre-round
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28. EQUITY CROWDFUNDING PROCESS:
STEP 2. OPEN ROUND
• At this stage you have evaluated your idea,
added all the necessary documentation and
enough people have reserved shares.
• Going into an open round is a big step and
requires your full attention to turn the interested
crowd members into actual investors.
• Make sure you make it worth all the hard work that
you put into the pre-round.
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29. CRITICAL: COMMUNICATION PLAN
• Campaign’s sucess is critically linked
to an aggressive communication plan:
– Social and personal networks
– Live events
– Media
– Day to day communication (eg. email)
*Source: KickStarter, FundedByMe
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31. CRITICAL: COMMUNICATION PLAN
• 85% investors come from the
entrepreneur’s efforts!
– Funding Campaign’s Internet Traffic:
15% Platform – 85% External sources
• 90-95% of success rate if 1/3 of the
funding goal is reached in the first third
time period of the campaign
Sources: KickStarter, FundedByMe
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32. COMMUNICATION RECOMMENDATIONS
• Produce a short intro video
• Keep close contact with investors, either
via FundedByMe´s Message centre or
directly
• Organize events to promote on site impulse
investments
• Provide as much financial information
about your business as possible
• Be active! Talk, tweet, call and write about
your campaign.
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33. COMMUNICATION RECOMMENDATIONS
• Organize live
crowdfunding launchparties at initiation of
campaigns (latest US
trend!)
– By invitation only
• Create an aura of exclusivity for
access to the investment, which
can be a triggering factor
– Attract media attention
– Promote impulse onsite
investments
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34. FUNDED! WHAT’S NEXT?
• Use one of the recommended FundedByMe
suppliers to help you draw up the legal
documents needed.
• Standard investment process in progress
– Document packs + tax break strategy +
recommended service providers
– Specific Shareholder’s Agreement
• To structure crowdfunders´ relationship in the company
• To facilitate new investors’ entrances, and
crowdfunders’ exits
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35. SUMMARY
Entrepreneurs
Get capital in 6 European countries from
thousands of investors
Investors
Invest in quality projects small or large amounts of
money with dozens of other investors
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36. THANKS! GOOD LUCK WITH YOUR FUNDING!
Contact:
Miguel Ángel L. Trujillo. Country Manager Spain
miguel@fundedbyme.com - (+34) 626 007 140
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