market crowdfunding
DESCRIPTION
All information you need to know about crowdfundingTRANSCRIPT
1This Crowdfunding presentation has been made by http://www.mymicroinvest.com If you have question visit our website or contact us at [email protected]
Crowdfunding overview and categories
CROWFUNDING
Charities Consumer lending Creative suport Business Growth
Social cause Financial cause Common interest Socio Economic cause
Donation Loan with fixed interest Alternative return Variable return / Equity
Since 2005 Since 2005 Since 2008 Since 2010
80%15% 4% <1%
Concept born in the United States where the transaction volume was about 1.16 billion US$ in 2009. Gartner(1) forecasts Crowdfunding volume to read 3.3
billion US$ outstanding loan volume in 2013..
“Crowdfunding” or “Peer to Peer Lending” can be define as an approach to raising capital required for a new project or enterprise by appealing to large numbers of ordinary people for small transactions. The web-based Crowd Phenomenon has been gaining tremendous momentum over past 24 months.
(1) Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company
Kiva.org Zopa.com kickstarter.com Mymicroinvest.com
Market share
2This Crowdfunding presentation has been made by http://www.mymicroinvest.com If you have question visit our website or contact us at [email protected]
The Crowdfunding concept is emerging in Europe
+58% in 9 months
The « Crowdfunding » keyword has become a common name on Google database and is related to more than 1.500.000 results.
Each month 36.000 researches are made on Google including the keyword Crowdfunding
Google trends (chart on the left) shows how researched is the Crowdfunding keywords related to the Google average = Maximum index. .
The 10 biggest European Crowdfunding platforms raised 100 million Euros during the last 9 months
On average each platform raises approx. 1 million euro per month
45% of researches on that keyword are made from Europe.
3This Crowdfunding presentation has been made by http://www.mymicroinvest.com If you have question visit our website or contact us at [email protected]
A young and innovative crowdfunding market that offers different kinds of investment target
Financeutile.com Mymicroinvest.com Akamusic.com Sandawe.comFinancing target Startups / SME Music Band Comics
Localization France Belgium Belgiun
Launch date nov-09 March-08 Jan-10
Minimum invest: 500 € 5€ 10€
Investment volume 800 000 € 1 700 000€ 146 000€
Number of investors registred 4 800 7 000 1 600
Average transaction 2 900€ 75 € 200 €
Project being financed 4 87 6
Years before exit 7 years 5 years 3 years
FRENCH AND BELGIAN
CROWDFUNDING PLATFORMS
4This Crowdfunding presentation has been made by http://www.mymicroinvest.com If you have question visit our website or contact us at [email protected]
Volume raised and launch date for players in the consumer lending and business growth category
2005 2006 2007 2009 Q1 10 Q2 10 Q3 10 Q4 10 Q1 112010 2009
250
500
750
1.000
1.250
1.500
250
500
750
50.000
140.000
K€
K€Consumer lending platforms Business Growth platforms13.000
5This Crowdfunding presentation has been made by http://www.mymicroinvest.com If you have question visit our website or contact us at [email protected]
Kiva.org Key figures analysis
Kiva's key figuresTotal value of all loans made through Kiva: $204 799 675Total capital available: $19 153 837Number of Kiva Users: 907 213Number of Kiva Users who have funded a loan: 571 731Number of loans that have been funded through Kiva: 274 564Average loan size $381,81Average total amount loaned per Kiva Lender (includes reloaned funds): $225,80Average number of loans per Kiva Lender: 6,74Amount invested per lender $33,5
6This Crowdfunding presentation has been made by http://www.mymicroinvest.com If you have question visit our website or contact us at [email protected]
How medias impact the Kiva’s growth
1 year flat
Kick off
7This Crowdfunding presentation has been made by http://www.mymicroinvest.com If you have question visit our website or contact us at [email protected]
Overview of the consumer lending or Peer to Peer lenging players
ZOPA SMAVA YES-SECURE.COM RATESETTER QUAKLELaunched: March 2005 March 2007 June 2010 October 2010 October 2010Members 400 000 21 000 5 145 21 278 Money Matched EUR 141 m EUR 47m EUR 295.000 EUR 827,000 EUR 18,000Default rate: 0.7pc 0.6pc None. Expected default
rate of up to 12pc for higher-risk borrowers
None so far, expected rate lower than 1.4pc
None. For A and B-rated borrowers it is anticipating a default rate below 1pc; for C and D-rated borrowers less than 3pc
Fee paid by lenders: 1pc of the amount lent 1.35pc of the amount lent & 0.5€ / Month
0.9pc 10pc of the interest they receive
N/A
Fee paid by borrowers: Flat fee of £124.50 once loan is approved
2.5pc of loan once it's agreed (min of 60€)
£80 flat £115 flat fee for a three-year loan; £5 monthly charge in the rolling market
1.5pc of loan once it's agreed
Profile of borrowers: Only lower-risk borrowers accepted, generally A* to C
From A to H (according to SCHUFA criterias)
From A* to E Prime risk, primarily A and A*
Lower end – 70pc of borrowers are C-rated
How checked: credit record through Equifax , Experian or CallCredit.
Grade dependent on credit reports from SCHUFA
Rating based on CallCredit report. Yes-Secure asks for a copy of their payslip and a recent bank statement
Credit reports from Equifax and CallCredit, plus manual assessment.
Grade dependent on credit reports from Equifax
Average return for lenders: 8.1pc over past year, after charges
from 6,2pc 15,2pc Rates advertised from 15pc to 30pc
7pc for three-year loans; 3.3pc in monthly market
23.5pc
Fund to cover bad debts: No ? No, but plans to launch one soon (people rated by their community)
Yes No
8This Crowdfunding presentation has been made by http://www.mymicroinvest.com If you have question visit our website or contact us at [email protected]
Overview of the main Crowdfunding platform for startups
COFUNDIT FUNDING CIRCLE BELIEVERSFUNDS PROFOUNDER crowdcube.comLaunched: June 2010 (SWLD] August 2010 (UK) October 2010 (BEL) November 2010
(USA)Feb 2011 (UK)
Model Debt Debt Preorder / revenue share
Revenue share Equity
Amount lent/invested to date: 250K€ 13m€ (bid on loan requests)
20K€ 237K€ 2,8K€
Nb of investors 15 (48 members) 1600 (3.500 members)
1080 262 108
Average invest 5.200€ 730€ (Account £3.000)
250€ 900€ 255 €
Nb of startups financed 1 107 13 11 0
Minimum invest 2 000 € £20 10USD NA 10£
Description Business Loans, Expert Analysis and Private Investments using Crowd Funding and Open Innovation
Peer to Peer Social Lending to Businesses - People lend to lots of creditworthy businesses to spread their risk
connect developers with funders to realize innovative mobile apps for Apple iOS and Android.
Raise money for your business. Let your community help.
Crowdcube (U.K. only), which will allow funders to purchase equity in startups, although they need to be friends and family
Terms The loan lasts no more than 3 years
Loans last for 1 or 3 years
Loans last for 1 to 3 years
N/A
Type of Startup Existing and proved businesses with short term repayement capacity
Existing and secured businesses
App Builders Entrepreneurs and small businesses
Entrepreneurs and small businesses
Registration Fee 100 € No fee No fee No fee £250
Financing rangingFrom EUR 100k up to EUR 2.0 Moi up to £50.000 No range From 30K£ to 200K£
Fee paid by investor 5% of funding upfront fee of 2 per cent
21% (VAT) and 4% charged on the pre-orders made by believers
ProFounder makes money by charging a 5 percent fee (of a public raise)
5% of funding
Fee paid by Startup 10% of amount raised 10% of amount raised Interest rate from 6% to 9%
49€/69 USD to get your project published
lat $1,000 fee for any private raises
5% fee (+legal fees of £1750)
9This Crowdfunding presentation has been made by http://www.mymicroinvest.com If you have question visit our website or contact us at [email protected]
Traffic Analysis for the main crowdfunding platforms
Believrsfund crowdcube Profunder Fundingcircle Cofundit Wiseed GrowvcTraffic per month 30 000 57 960 116 100 64 140 17 430 33 000 88 410Traffic per day 1 000 1 932 3 870 2 138 581 1 100 2 947% local 10% 43% 50% 71% 31% 86% 20%Total Local 3 000 24 923 58 050 45 539 5 403 28 380 17 682Total Global 27 000 33 037 58 050 18 601 12 027 4 620 70 728Months online 3 4 6 7 11 16 30
Volume du trafic mensuel (Nombre de visiteurs locaux et globaux)
10This Crowdfunding presentation has been made by http://www.mymicroinvest.com If you have question visit our website or contact us at [email protected]
How are the Crowdfunding users?
11This Crowdfunding presentation has been made by http://www.mymicroinvest.com If you have question visit our website or contact us at [email protected]
CharityCreative Support
Business Growth
Consumer Lending
Réalisation de soi +
Réalisation de soi -
ROI -
ROI +
What/Why?
Donation/Social
What/Why?
Contribution/Community
What/Why
Investment/Recognition & ROI
What/Why
Investment/ROI
I do something good
I am part of a community
I am making money
I am an Investor
Drivers…
Mymicromicroinvest.com
Ce qui motive les gens d’investir via le crowdfunding
Dilemme du Crowdfunding dans le cadre de l’investissement dans les start-ups.
12This Crowdfunding presentation has been made by http://www.mymicroinvest.com If you have question visit our website or contact us at [email protected]
I am investing in the real economy!
I help entrepreneurship!
“I am exceptional”
Emotional motivationsI am great
Rational barriersYes, but I am not dump
I am a Business Angel!
“But… Am I going to earn money?
Quality of startups and
ROI?
My role and Freedom as
Investor?
How serious/credible is the structure?
Mymicromicroinvest.com Le financement collectif de startups
Le dilèmme du crowdfunding pour le financement d’une start-ups