crowdfunding market analysis - mymicroinvest.com

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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


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.


A young and innovative crowdfunding market that offers different kinds of investment target

Financeutile.com Mymicroinvest.com Akamusic.com Sandawe.comFinancing target Startups / SME Startups Music Band ComicsLocalization France Belgium Belgium BelgiunLaunch date nov-09 Jan-12 March-08 Jan-10Minimum invest: 500 € 100 € 5€ 10€Investment volume 800 000 € NA 1 700 000€ 146 000€Number of investors registred 4 800 NA 7 000 1 600Average transaction 2 900€ NA 75 € 200 €Project being financed 4 6 87 6Years before exit 7 years from 3 to 7 years 5 years 3 years

FRENCH AND BELGIAN

CROWDFUNDING PLATFORMS


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 platforms

13.000


Kiva.org Key figures analysis

Kiva's key figures

Total value of all loans made through Kiva: $204 799 675

Total capital available: $19 153 837

Number of Kiva Users: 907 213

Number of Kiva Users who have funded a loan: 571 731

Number of loans that have been funded through Kiva: 274 564

Average loan size $381,81

Average total amount loaned per Kiva Lender (includes reloaned funds): $225,80

Average number of loans per Kiva Lender: 6,74

Amount invested per lender $33,5


How medias impact the Kiva’s growth

1 year flat

Kick off


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


Overview of the main Crowdfunding platform for startups

Mymicroinvest.com COFUNDIT FUNDING CIRCLE BELIEVERSFUNDS PROFOUNDER crowdcube.comLaunched: January 2012 (BEL) June 2010 (SWLD] August 2010 (UK) October 2010 (BEL) November 2010 (USA) Feb 2011 (UK)Model Equity Debt Debt Preorder / revenue

shareRevenue share Equity

Amount lent/invested to date: NA 250K€ 13m€ (bid on loan requests)

20K€ 237K€ 2,8K€

Nb of investors NA 15 (48 members) 1600 (3.500 members) 1080 262 108Average invest NA 5.200€ 730€ (Account £3.000) 250€ 900€ 255 €Nb of startups financed NA 1 107 13 11 0Minimum invest 100 € 2 000 € £20 10USD NA 10£Description Investment in startups

from 100€ (Equity)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 3 to 7 years before exit 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 Youg innovative startups

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 No fee 100 € No fee No fee No fee £250

Financing ranging 100K€From 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 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)


How are the Crowdfunding users?


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)

crowdfunding market analysis - mymicroinvest.com

Economy & Finance