crowdsourcing week 2015 - equity crowdfunding: how to design and execute your campaign
TRANSCRIPT
EQUITY CROWDFUNDING
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CROWDSOURCING WEEK GLOBAL 2015
April 24th, 2015
crowdonomic.vc@nicolasinga
@Crowdonomic
Facebook.com/C
rowdonomic
Fund raising process and regulation has not changed
in the last 80 years… but the World did
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Efficient Access to Capital is still #1 obstacle to growth
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of Micro-SMEs (Start-ups+SMEs) in Asia say access
to finance is their largest obstacle to growth
Source: IFC/ Worldbank Enterprise Survey 2006-10; World Bank GDP 2008 - 2010
40%#1
Crowdfunding: Fundraising accelerated by the full
power of web, social media and technology
Publish Offer Page
Access virtual
investor community
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Real Time Distribution
Acceleration Validation
#1: it is a Game Changer for both Start-ups and
Investors
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Efficient outreach to
multiple investors via internet
Startups
Low – mid digit FRsRecord millions
8 -12 weeksAverage online fundraise period
Centralized deal
sourcing platform
Investors
Crowdsourced due
diligence community
$1 to 5KBite-sized investments to
diversify investment portfolio
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#2: More than just funding, improved issuer post-
crowdfunding performance
Business Survival
Rate
Follow-on Investment
Rate
Exit Multiple for
Crowd Investors
86% 71% x10+
*1 *2 *3
*1: 86% of all sampled Equity Crowdfunded businesses still operational on ASSOB since 2005 vs 59 % of companies still
in business 3 year after establishment according to US Bureau labor of statistics
*2: % of sampled Equity Crowdfunded businesses by Crowdfund Capital Advisors who have already secured follow on
investments (28%) or were in discussions (43%)
*3: Rewalk estimate: Rewalk raised $1.3 mn via ECF platform in 2013. IPO valuation was $191M in September ’14. At its
maximum, its market valuation was $428 mn
Source: Various; Crowdonomic Team analysis
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Technology Consumer/Retail Real Estate Fund
• MedTech
robotics firm
• Raised S$4.2 M
on OurCrowd
• IPO’d receiving
S$46.2 M in net
proceeds
• F&B Chain in
UK
• Raised S$4.3M
on CrowdCube
• Pool of 749
investors –
accredited and
retail
• Crowdfunding
for a hotel in
Palm Springs
• Raised S$1.9M
on RealtyMogul
• Pool of 85
accredited
investors
• Prolific early-
stage venture
fund
• Crowdfunding
$100M fund
with SeedInvest
#3: Emerging Crowdfunding Verticals
No reported cases of
Fraud
Shareholders can be
bundled up into a
vehicle
Investors are also chosen;
Use lead investors to
inform market
You can control the level of
information disclosure
“I’ll be stuck with managing
Thousands of Shareholders (and
forced to IPO)!”“High Risk of Fraud”
“Competitors will steal all of my
information”
The Market will be over-flooded
with NVA Capital creating a
bubble
We are tackling Common Equity Crowdfunding
Concerns
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The Team: Assembling a Capable Fundraising Team
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Charismatic Front
Person
Graphic Design/
Video Person
Social Media
Person
Document and
numbers person
• Media
spokesperson
• Investor
Meetings
• Brand
Ambassador
• Social media
updates
• Site updates
• Answering
enquiries
• Putting
together the
offer page
• Putting
together the
financial
documents
• Designing
visuals
• Creating video
and other
creative assets
Content: Building Up Credibility on Your Offer page.
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Team & Board
with relevant
credentials
Endorsement from
fans, experts, client
testimonialsTractions
IP or
Strategic
Partnerships
Attractive
valuation and
desirable exit
USP, Market,
Competitive
Advantages
Additional Items:
• Business Plan
• Investor Pitch
Deck
• P&L
• Cash Flow
• Balance Sheet
The more robust and informative your story is, the more likely you
will close investors.
• Sell the vision / dream
• Ground the business plan
• Nail the delivery
• Form as important as Content
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Visual: Supporting Your Offer Page with Video
Do
• Be vague
• Be boring
• Be awkward
• Show only the product
Don’t
Create a Marketing Plan. Fundraising is an Online
and Offline Effort
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BEFORE
CAMPAIGN
CAMPAIGN
LAUNCH
CAMPAIGN
END
POST
CAMPAIGN
• Investor Meeting/ Road show
•Campaign Launch event
•Social Media and blog contents
•Event Participation
•PR meetings
•Product Demos
Are you Ready?
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YOU’RE DOING IT WRONG
Understand Crowd Behavior and Create Momentum
•Find a Lead Investor
•Secure early supporters
•Create Traction
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Execution is the key: Marketing and activation support
a Crowdfunding Platform will provide but…
Expected
reach via
platformPlatform Social
Media Updates
Platform Blog
Platform
Newsletters
Membership
Access
Templates
Platform
Marketing
It’s a dual effort
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Extend your reach with your own marketing plan
Expected
reach via
platform
Reach via own
initiatives
Public Relations
Personal Mail
Outs
Media Interviews
Blogger Outreach
Product Demos
Social MediaAwards
Competitions
Site Visit/ Factory
Tour
Awards
Competitions
Company Blog
Updates
Investor Meetings
Offline Events
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Campaign Execution: Best Practices
Prepare follow
up videos,
creative assets
and regular
campaign
updates
Be quick to
respond to queries
and comments
Show your
appreciation and
thank all your
investors
Contact press only
once you have
obtained some
funding to have a
newsworthy angle
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READY?
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