fundedbyme - equity & reward international crowdfunding

Europe's fastest growing crowd investment platform connecting investors and entrepreneurs

www.fundedbyme.com @fundedbyme www.facebook.com/fundedbyme

Miguel Ángel L. Trujillo. Country Manager Spain miguel@fundedbyme.com - (+34) 626 007 140

October 2013

© 2013 The information of this presentation is for commercial purposes and it is intended to be purely informative.

+€3million raised for 14 entrepreneurs since November 2012

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

2 €17,500 raised from 8 investors for 3.83% of the company

WHAT IS CROWDFUNDING?

WHY CROWDFUNDING?

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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WHY CROWDFUNDING?

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WHY CROWDFUNDING?

• World Market (2013e): $5,100million • US Equity CF (2013e): $166million ($116million 2012)

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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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WHY FUNDEDBYME?

The Unique Paneuropean, English-language, International Crowdfunding Platform

+€3 million raised since November 2012 for 14 campaigns

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Europe’s fastest-growing crowd investment platform connecting investors

and entrepreneurs.

FUNDEDBYME TAGLINE

• +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

FUNDEDBYME – HIGHLIGHTS EQUITY CROWDFUNDING

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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• 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…

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

FUNDEDBYME - HIGHLIGHTS

USER PROFILE: INVESTORS

Investments like these allow me to take a peek at how different companies work and think. – Javier Latorre

…There is no marketplace for external funding. This makes crowdfunding a good form of financing. – Matti Vanhanen

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

USER PROFILE: ENTREPRENEURS

…Find investors who share the same values and interests in the environment & technology. – Sakke Arffman, Lastu

a global crowdfunding round seems very appropriate for us. – Nina Ignatius, Beibamboo

Yes, the money was key, but the bigger motivator was getting this captive audience. – Claes Stenmark, Virtuous Vodka

SUCCESS STORY: FLIPPIN’ BURGERS

Money raised: Sek36,502 / €4,000 Number of Investors: 186 Date Funded: September 2011 Sector: Food

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

SUCCESS STORY: BEIBAMBOO

Money raised: €48,209 Number of Investors: 105 Date Funded: August 2013 Sector: Baby Goods

Do you want to support? Visit FBM.SAMASTAH.COM

1ST CAMPAIGN IN SPAIN WITH FAMOUS ENTREPRENEUR ÁNGEL MARÍA HERRERA

• Bully Awards Winner (Sweden). October 2013

• Among the 100 Europe’s Hottest StartUps (Wired UK, October 2013)

RECENT ACCOLADES

Sources: http://whitebull.com/latest/2013-bully-award-winners http://www.wired.co.uk/magazine/archive/2013/11/european-startups/stockholm

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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• 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

EASY TO START

COST

6% commission on total financing raised

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EQUITY CROWDFUNDING PROCESS

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 27

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. 28

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)

29 *Source: KickStarter, FundedByMe

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ONLY 50% CAMPAIGNS ARE SUCCESSFUL!

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

31 Sources: KickStarter, FundedByMe

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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• Organize live crowdfunding launch-parties 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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COMMUNICATION RECOMMENDATIONS

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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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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THANKS! GOOD LUCK WITH YOUR FUNDING!

Contact: Miguel Ángel L. Trujillo. Country Manager Spain miguel@fundedbyme.com - (+34) 626 007 140