three key trends that will change crowdfunding in 2015
TRANSCRIPT
Stages of funding
Private Investors PE FirmsAngels VCs
Pre-seed Seed A B, C, etc Pre-exit Exit
Business Building Crowd Investment
Crowd Investors
Business Owner
Business Building Crowd Investment
Private Investors
PE Firms
Angels
VCs
Stages of fu
nd
ing
• Campaigns raised over US$16 million over four years;
almost US$10 million in 2014 alone
• Median investment of US$600 per investor, but mean
investment of more than US$4,000 (for reward based
campaigns S$80); investors have been known to invest as
much as US$100,000 per investment
• FundedByMe experienced growth of 600% from Q4 2013 to
Q4 2014
Cool Insights from Our (Short) Four-Year History
Trends Driving the
Asia Revolution • Online marketplace
popularity (explosion of
retail e-commerce)
• Social media penetration
and savvy
• Success and popularity
of crowdfunding
• APAC to outspend North
America by $40bn, 45%
of all buyers worldwide
• 52% of social media
users and 47.6% of
mobile users.
• Singapore top ten
worldwide for
crowdfunding Source: Asia Briefing 2014, Wearesocial 2014.
Asia = Growth
2/3s of global middle class will live in Asia by 2030,
with 3.5bn coming from emerging economies
Asia Pacific
• The Social, Mobile, Chat-Obsessed Citizen
• Economics of E-Commerce and E-Finance
• Innovation: From the 99% to the 70%
Important Trends
in 2015 and beyond
• Crowdfunding will gravitate to accommodate the mobile user
(shorter, more concise offerings, building credible, long term
relationships)
• Low resistance, high-speed payments
• The rise of the instant micro-investor
What does this mean for us?
• Prevalence and growth of ecommerce usually predicts
strong growth in online-powered P2P financing services
• Developing world is quickly adopting these new forms, leap-
frogging developed economies
• Governments are just starting to realise this; Asia Pacific
markets are warming to securities-based crowdfunding
What does this mean for us?
• Trends: Fintech innovations like M-PESA, a Mobile Phone Payment System by Safaricom in Kenya (12.2M active customers compared to 5.4M with bank accounts, 122k agents, 67% has access Oct 2014 compared to 41% in 2009)
• Cryptocurrency Innovations on phones to enable unbanked to hold money
• Social innovations to perform a form of KYC / background checks on people who have no formal credit history
Reaching the Unbanked - 70% of APAC
• Impact crowdfunding will become a powerful empowerment
tool for businesses in developing nations
• As crowdfunding and digital financing services continue to
innovate, it will start to open new opportunities among
unreached / unbanked, e.g. cryptocurrency
• Fintech will trickle back to developed nations from
developing nations
What does this mean for us?