Turning  APStartup  into  Impact  Crowdfunding  with  Social  Credits  

Asia  Pacific  DealFlow  Ltd  1703  Infinitus  Plaza,    188  Des  Voeux  Rd  Central  Hong  Kong  

IntroducDon  

•  What  is  a  Social  Credit  

•  Social  Impact  

•  The  technology  

•  The  business  model  

•  Next  steps  ?  

Serial  Entrepreneur  

TIE  Mentor  TEN  member  Cocoonian  

Startups    E-­‐Finet.com  (8317.hk)    ForDtude  SecuriDes    New  Media  Research  

Career    Thomson  Financial    SBC  Warburg    Offshore  Banking    Family  Office  mgmt.  

About  the  Founder  

download  Tony  Cha’s  career  bio    

APStartup.com    Create,  Build,  Promote  and  Fund  

WE  ARE…  

•  A  social  network    plaBorm  for    Entrepreneurs  

•  Apps  For  Startups  

•  DealFlow  for    Investors  

Impact  InvesDng  Problems  

Unlocking  Capital  

•  Lack  of  DealFlow  pipeline  of  social  enterprise  projects    

•  Lack  of  investor  incenDves  on  funding  a  project  

Structure  weakness  

• No  mapping  out  of  social  enterprise  ecosystem  

• No  marketplace  for  social  products  and  soluDons  

Campaign  awareness  

•  Lack  of  public  awareness  and  interest  in  social  enterprise  projects  

• Ge`ng  Corporate  involved  via  CSR  campaigns  

The  Value  of  a  good  deed?  

What  is  a  Social  Credit  ?  

•  An  intangible  unit  out  of  social  good    

•  Western  philosophy  –  A  good  deeds  brings  BLESSINGS  

•  PosiDve  acDons  bring  KARMA  

•  Islam    -­‐  NIYYAH  means  that  a  good  deed  is  rewarded  with  untapped  treasure  and  reward  

•  Chinese  philosophy    -­‐  Good  deeds  contribuDons  bring  FU  QHI  (福气)  which  brings  good  prosperity  for  yourself  and  family  doing  good  (,祝福  )    

•  Investors  -­‐  An  investment  value  of  USD1  per  credit  

•  Consumers  –  A  discount  value  of  up  to  50  Cents  credit  on  purchases  

•  Social  Enterprises  –  Can    resale  value  of  USD  0.25  per  credit  

TRADITIONAL  DEFINITION   OUR  DEFINITION  

Social  Credits  –  influence  of  4  concepts  

Bitcoin  

• A  virtual  currency  

• A  storage  of  wealth  

Consumer  Loyalty  programs  

• Reward  good  customers  

•  e.g.  Air  Miles  and  rewards    

GamificaDon  

• Reflect  social  goodwill  of  invesDng  and  giving  

•  e.g.  • Badgeville  and  Alpha  user  Points    

Crowdfunding  

•  Influence  Crowd  to  invest  in  social  enterprises  

•  e.g.  impactrader.com  

Social  Credit  Ecosystem  

Social  Credits  

CROWDFUNDING  

E-­‐COMMERCE  

SOCIAL  CREDIT  ISSUANCE  

GAMIFICATION  OF  SOCIAL  CREDITS  

CAMPAIGN  MANAGEMENT  

SOCIAL  CREDIT  ISSUANCE–  A  central  issuer  and  redempDon  of  social  credits  –  a  kind  of  central  bank.    CROWDFUNDING  –  A  rewards  based  crowdfunding  for  Social  Enterprises.  Social  Credits  for  funding.  E-­‐COMMERCE  –  A  portal  to  buy  and  sell  products  of  Social  Enterprises.  Social  Credits  can  be  used  to  parDally  seilement.  GAMIFICATION  –  ways  to  promote  Social  Credits  as  a  storage  of  wealth  and  status  CAMPAIGN  MGMT,  -­‐  a  system  to  allow  acDvists  to  raise  awareness  of  social  enterprises  on  social  media  

Eco-­‐system  parts  

Growth  of  alternaDve  currencies  

The  Value  of  Bitcoin  has  gone  through  the  roof  since  the  escalaDon  of  the  Cyprus  monetary  crisis  

Social  Credit  Ecosystem  

Social  Credits  

PCROWDFUNDING  

(part  1)  

E-­‐COMMERCE  

(part  2)  

SOCIAL  CREDIT  SYSTEM  

(part3)  

GAMIFICATION  OF  SOCIAL  CREDITS  

(part5)  

CAMPAIGN  MANAGEMENT  

(part4)  

SOCIAL  CREDIT  ISSUANCE–  A  central  issuer  and  redempDon  of  social  credits  –  a  kind  of  central  bank.    CROWDFUNDING  –  A  rewards  based  crowdfunding  for  Social  Enterprises.  Social  Credits  for  funding.  E-­‐COMMERCE  –  A  portal  to  buy  and  sell  products  of  Social  Enterprises.  Social  Credits  can  be  used  to  parDally  seilement.  GAMIFICATION  –  ways  to  promote  Social  Credits  as  a  storage  of  wealth  and  status  CAMPAIGN  MGMT,  -­‐  a  system  to  allow  acDvists  to  raise  awareness  of  social  enterprises  on  social  media  

Eco-­‐system  parts  

SE  Credits    -­‐  Issuance  and  redempDon  

• Can  use  excess  social  credits  for  discounts  Consumer  

• Offers  price  discounts  to  consumers  with  social  credits    

Social  Enterprise  

• Buys  excess  social  credits  from  Social  Enterprise  for  5c  per  SC  

SC  Fund  

• Gets  1SC  per  USD  invested,  can  choose  to  display  SC  or  use  it  for  consumpDon  

Investor  

• Buys  SC  from  SC  Fund  at10c  per  SC  and  rewards  invest  1SC  per  USD  invested  

Social  Enterprise  

•  Issues  at  10cents  per  SC  

SC  Fund  

Funding   AcDvist  campaigning  

• Receives  credits  from  Social  Enterprise  for  acDve  campaigning  via  Social  media  

AcDvist  

•  Is  issued  Social  Credits  on  credits  for  purposes  of  markeDng  

Social  Enterprise  

•  Issues  Social  Credits  to  SE  on  a  credit  basis  for  markeDng  campaign.  

SC  Fund  

ConsumpDon  

Part1  -­‐  Crowdfunding  

We  Crowd-­‐  fund  for  rewards  in  Social  Credits  

Cannot  legally  crowd-­‐fund  for  equity  

Social  Enterprises  can  upload  their  profiles  and  stories  

We  already  have  the  80%  of  the  system  

Requires  payment  gateways  –  Paypal,  Credit  Card  and  TT  transfer  

Entrepreneurs  Investors,  AcDvists  

Social  Enterprise   Groups  

Crowdfunding  :  (system  already  in  place)  

 Entrepreneurs,  Investors,  Mentors  and  &  Advisors,  Service  Providers    

Any  type  of  business,  company  or  organizaDon  

Private  Groups,  clubs  and  associaDons,  local  angel  groups,  VC  firms    

Crowdfunding  for  social  credits  (how  it  works)  

Funder/  Consumer  

SE1  

Consumer  

SE  2  

Funder  funds  USD1000  into  SE1  through  as  a  impact  investment    

SE1  pays  10%  of  USD1000  (USD100)  to  SE  Fund  for  issuing  1000  Social  Credits  to  Investor  

Funder  can  display  their  1000  SoCredits  online  as  a  badge  of  honor  

SE2  can  offer  200  SC  as  bonus  on  order  of  $200  to  consumer  

SE1  issues  1000  credits  for  $1000  investment  to  Funder  at  1$  per  Social  Credit  (SC)  

Consumer  buys  a  $200  order  from  SE2.  Pays  $100  and    200  credits  (50c  per  SC)  

SEF  

SEF  Sell  1ooo  credits  to  SE1  for  USD100  (10  cents  per  credit)  

Part  2  -­‐  E-­‐commerce  

e-­‐commerce  cart  

Owners  of  Social  Credits  can  buy  goods  from  Social  Enterprises  

A  new  e-­‐commerce  system  needs  to  be  built  into  the  plaporm  

Social  Enterprises  can  offer  upto  50%  social  credits  and  50%  cash  

Issues  of  logisDcs  and  fulfillment  

Creates  a  demand  for  their  goods  and  services  

E-­‐commerce  and  Social  Credits  –  how  it  works  

Consumer1  

SE1  

Consumer2  

SE  2  

Consumer1  has  1000  credits.  

SE2  has  a  product  for  sale  at  UDS200,  they  will  accept  50%  cash  and  200  credits.  Valuing  credits  at  50c  per  credit.  

PRICE  DISCOUNT  with  SC          Consumer  can  purchase  SE2  product  for  cash  USD100  and  200SCs  @  50c  per  SC.  

PURCHASE  with  BONUS    SE2  can  now  offer  their  product  for  sale  at  full  price  USD200  to  consumer2  with  bonus  of  100SCs  (  value  50c  per  SC)  

Some  Consumers  choose  to  hoard  SC  for  display  of  social  wealth  

SEF  promises  to  redeem  SC  at  5c  per  SC    

SE2  can  offer  consumer2  SC  as  bonus  on  order  of  $200  to  consumer  

Consumer  buys  a  $200  order  from  SE2.  Pays  $100  and    200  credits  (50c  per  SC)  

SEF  

Part  3  –  Social  Credit  system  

Social  Credit  Bank  

SE1  

Consumers   Investors   AcDvists  and  Evanglists  

Social  Credit  Bank  issues  and  redeems  social  credits  

It  issues  only  to  accredited  Social  Enterprises  at  USD10c  per  social  Credit  

It  redeems  from  Social  Enterprises  at  USD5c  per  social  Credit  

Social  Credits  are  used  by  Social  Enterprises  to  incenDve    FUNDING,  CONSUMPTION  and  ACTIVISIM  

Social  Credit  Bank  offers  to  redeem  social  credits  at    50c  per  social  credit  

We  prefer  owners  to  hoard  social  credits  for  wealth  and  presDge  

SEF  

A  social  credit  based  economy  

Part  5  Campaigning  

•  Few  will  fund,  but  many  people  will  get  involved  in  other  capacity.  

•  BLOGGING    

•  SHARING  

•  VOLUNTARY  WORK  

Part  4  –  Campaign  management  

Social  Enterprise  

Campaign  

AcDvists  

Evangelists  

Volunteers  

Community  

AcNvists  create  news  by  wriDng  blog  to  promote  Social  Enterprise  campaigns  

Evangelists  will  spread  the  news  by  reposDng  or  sharing  Blogs  and  arDcles  over  the  internet.  

Volunteers  contribute  their  Dme  to  helping  a  Social  Enterprise.    

Social  Enterprise  can  issue  social  credits  

AcDvists    10  SCs  per  arDcle  Evangelists  1SC  per  repost  or  share  Volunteers  –  100  SCs  per  hour  

AcDvist  rewards  1SC  per  FB  post  

Evangelist  rewards  10  SC  per  arDcle  

Volunteer  rewards  100  SC  per  hour  

Social  Credits  to  sDmulate    Impact  InvesDng  eco-­‐system  

Social  Enterprise  

Funders  

Consumers  

AcDvists  

Volunteers  

A  CURRENCY  SYSTEM  FOR  SOCIALCREDITS  

FUNDERS  Fund  SE  projects  for  social  credits.  1SC  per  USD  

Consumers  Consume  SE  products  using  SC  as  a  discount.  

Volunteers  Earn  Social  Credits  by  offer  their  Dme  and  service  to  contribute  to  the  building  of  a  SE  project    

AcNvists  Are  rewarded  Social  Credits  for  creaDng  and  spreading  campaigns  to  raise  awareness  on  the  Social  Enterprise  project.  

Volunteers  can  earn  SC  from  Enterprise    

Funders  receive  SCs  for  funding  1SC  per  USD  

SEF  

SE  purchases  and  redeems  SC  from  SEF  exclusively  AcDvists  earn  SC  

for  parDcipaDng  in  SE  campaigns    

Part  5  –  GamificaDon  (why  people  will  play)  

Badges  on  your  Profile  

Leader  Boards  

Badge  of  Achievements  

GamificaDon  of  Social  Credits  

•  Investors  get  1  SC  per  USD1  funded  • SE  purchase  SCs  at  10%  of  value  from  SE  Fund  • SE  redeem  SCs  at  5%  of  face  value  to  SE  Fund  

Game  Mechanics  

•  Leaderboards    -­‐  top  10  •  Quarterly  awards  and  recogniDon  •  Social  plaporm  connecDng      

ReputaDon  Mechanics  

•  Use  of  web  based  plaporm  based  on  APStartup  •  Online  social  network  connecDng  SEs  and  Investors  •  Funding  plaporm  for  SE  projects  •  Consumer  “Ebay”  type    portal  for  buying  SE  goods  

Social  Mechanics  

Technical  

•  APStartup  already  has  a  directory  lisDng  of  Social  Enterprise  projects  

•  Adding  in  crowdfunding  to  this  is  easy  

•  Add  in  a  user  points  based  system  for  administraDon  of  Social  Credits  

•  IT  implementaDon  will  take  1  month  and  less  than  USD10,000    

Technology  –  applicaDons  used  

Campaigning  

•  Jomsocial  •  Facebook  connect  

Funding  

•  Jgive  •  Paypal  gateway  

ConsumpDon  

•  Virtuemart  

•  SC    

AcDvist   Funder   Consumer  

Technology  

•  Facebook  Open  Graph  

mobile  

Jomsocial    -­‐  social  network  

Crowdfunding  

Crowdfunding  component  

Pledge  

•  Funder  pledges  to  fund  the  startup  

• We  issue  a  note  for  payment  

Payment  

•  Use  paypal,  credit  card  or  wire  transfer  

Social  Credit    

•  Issue  of  social  credits  to  Company  

Release  funds  

•  Funds  TT  to  company  

•  Less  10%  for  SC  issuance  

Funders   Social  Credits  Ltd   Social  Credits  Issuer  

Summary  

Social  Credits  

INVESTORS  

SOCIAL  ENTERPRISES  

COMMUNITY  

CONSUMERS  

IntroducNon  of  a  Social  Credits  as  a  value  of  doing  good  

IMPACTS  

Funding  into  Social  Enterprises  

ConsumpGon  of  of  social  enterprise  goods  and  services  

Awareness  of  social  enterprises  projects  through  social  acGvism  and  evangelism  

Links  volunteers  to  social  enterprise  projects  

Thank  You  !  

Asia  Pacific  DealFlow  Ltd  

Registered  address  :  Suite  1703  Infinitus  Plaza  199  Des  Voeux  Road  Central  Hong  Kong  Tel  +825  2570  1161      Fax  +825  3020    1086  info@apstartup.cm  

References  

•  Equity  crowdfunding  in  Europe  hip://www.crowdsourcing.org/editorial/a-­‐cloudy-­‐forecast-­‐equity-­‐crowdfunding-­‐in-­‐europe-­‐part-­‐1/20692  

•  Building  a  Virtual  Economy  •  hip://www.slideshare.net/maimcallister/building-­‐a-­‐virtual-­‐economy  

•  Social  Gold  •  hip://www.slideshare.net/socialgold/social-­‐gold-­‐how-­‐to-­‐launch-­‐your-­‐own-­‐currency