Check out thecrowdcafe.com for research and data on the investment crowdfunding industry. Presentation delivered at the Silicon Valley Crowdfund Conference on April 5, 2013 Twitter: @jsandlund LinkedIn: www.linkedin.com/in/jsandlund

1. The Global Investment Crowdfunding Industry
Data, Insight & Trends
April 5th, 2013
Jonathan Sandlund j@thecrowdcafe.com
Jonathan Sandlund | @jsandlund
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2. about me
thecrowdcafe.com leading provider of research,
data and analysis on the global investment
crowdfunding industry
localinvestors.org live local. think local. invest local.
Jonathan Sandlund
j@thecrowdcafe.com
@jsandlund
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3. Our sponsor: Thank you!
Leading law firm serving the security
crowdfunding industry: Portals.
Crowdpreneurs; The Crowd
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4. Intro to Investment Crowdfunding
The Mechanism
Jonathan Sandlund | @jsandlund
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5. reward vs. investment-based
Reward-Based Investment-Based
‣ Receive no financial return ‣ Securities offered in return
for crowds’ investment
‣ Legal today
‣ Equity
‣ Perks or rewards in return
for pledges ‣ Debt
‣ Revenue share
‣ Blend
‣ The JOBS Act
‣ Title II vs Title III
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6. the mechanism
$
INVESTORS $
CUSTOMERS AFFINITIES
X $
= Funded
FAMILY FRIENDS $
$
Jonathan Sandlund | @jsandlund
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7. the mechanism
INVESTORS $
$
CUSTOMERS AFFINITIES
X $
$
= Funded
FAMILY FRIENDS
$
Jonathan Sandlund | @jsandlund
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8. the mechanism
INVESTORS $ $
CUSTOMERS AFFINITIES
X $
$ = Funded
FAMILY FRIENDS
$
Jonathan Sandlund | @jsandlund
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9. the mechanism
INVESTORS $ $
CUSTOMERS AFFINITIES
X $
$ = Funded
FAMILY FRIENDS $
Jonathan Sandlund | @jsandlund
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10. the mechanism
INVESTORS $
$
CUSTOMERS AFFINITIES
X $ = Funded
FAMILY FRIENDS
$ $
Jonathan Sandlund | @jsandlund
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11. the mechanism
INVESTORS $
$ Not
CUSTOMERS AFFINITIES
X $ =
FAMILY FRIENDS
$ $ Funded
Jonathan Sandlund | @jsandlund
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12. The Legalities of Crowdfunding
Title II & Title III of the JOBS Act
Jonathan Sandlund | @jsandlund
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13. The JOBS Act
‣ Signed into law by President
Obama on April 5th, 2012
‣ Passed the House 390-23; Passed
the Senate 73-26
‣ 270 day rule-making period given
to the SEC & FINRA (Dec. 31,
2012)
‣ SEC missed Dec. 31st deadline
‣ Title II & Title III delayed
Jonathan Sandlund | @jsandlund
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14. The JOBS Act
Title II Title III
‣ Lifts ban on general solicitation ‣ Businesses Raise up to $1mm
and advertising on security in 12-month period from both
offerings to accredited accredited and non-accredited
investors investors
‣ Broker-Dealer License/Affiliation ‣ Investors tiered limits on
investment amount
‣ Provided issuer takes reasonable
steps to verify accreditation ‣ Rule-making includes SEC and
FINRA
Crowdfunding for Crowdfunding for
Accredited Investors Everyone
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15. Accredited Crowdfunding IMPACT
‣ Will bring dramatic efficiencies to our private capital
markets
• Efficiencies = (Internet) * (Private Sector Innovation)
‣ Geographically, socially indiscriminate
‣ Stands to motivate accredited capital off the
sidelines and into private companies in an enormous
way
Jonathan Sandlund | @jsandlund
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16. Democratized Crowdfunding IMPACT
‣ Businesses
• Conversion of Social to Financial Capital
• New Era of Marketing
‣ Investors
• Financial Empowerment
• Trust
• Meaningful Investment
‣ Society
• Equal Opportunity
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17. The U.S. Market
Jonathan Sandlund | @jsandlund
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18. platforms: market segmentation
Investment Crowdfunding Platforms
Startups "Local" (SMBs) Niche/Affinity
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19. Global Crowdfunding
What can we learn?
Jonathan Sandlund | @jsandlund
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20. Macro-Data: Selected Data
Equity Debt Equity
180 Deals 1,751 Deals 34 Deals
$132 Million $144 Million ~$7 Million
Equity Equity Equity
9 Deals 17 Deals 11 Deals
$784,000 $1.3 Million $9.7 Million
* Selected sample of platforms; data is a selected sample 20

21. $290+ Million in Crowdfunding
Transactions...
1 Eq uity
25
cem ents
Pla
1,751
Loans
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22. Crowdfunding Models
Innovation, Diversity
Jonathan Sandlund | @jsandlund
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23. Debt
1,751 Deals
$144 Million
‣ A+ to C Risk Bands
Applied
‣ Offer 1, 3, 5 year loans
‣ £5,000 - £500,000
‣ Auction model: investors
bid
‣ Secondary market
‣ Crowdfunded two
$80,000 small business
loans in under 29 minutes
Jonathan Sandlund | @jsandlund
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24. Discovery
Jonathan Sandlund | @jsandlund
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25. Splash Bathroom Accessories Limited
Jonathan Sandlund | @jsandlund
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26. Credit Score History
Jonathan Sandlund | @jsandlund
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27. Key Financials
Jonathan Sandlund | @jsandlund
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28. Questions & Answers
Jonathan Sandlund | @jsandlund
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29. Equity
34 Deals
~$7 Million
‣ Launched 2010
‣ Sector Focus General (concentration: internet, food & drink)
‣ Lowest Raise $19,000 Highest Raise $1.6 million
‣ Averages (median, n= 34)
‣ Raise $97,000
‣ Equity Offered 15%
‣ Post-Money Valuation $633,000
‣ Number of Investors 51
‣ Investment Size $2,468 (low: $331; high: $11k)
Jonathan Sandlund | @jsandlund
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30. Equity
17 Deals
$1.3 Million
‣ Launched July 2012
‣ Sector Focus Internet
‣ Lowest Raise $15,200 Highest Raise 240,000
‣ Averages (median, n=17)
‣ Raise $64,000
‣ Equity Offered 10%
‣ Post-Money Valuation $560,000
‣ Number of Investors 69 Minimum Investment
‣ Investment Size $1,127
$16
Jonathan Sandlund | @jsandlund
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31. Equity
11 Deals
$9.7 Million
‣ Launched Mid-2012
‣ Sector Focus Consumer Products/Retail
‣ Lowest Raise $500,000 Highest Raise $2.4 Million
‣ Averages (median, n=4)
‣ Number of Investors 20
‣ Investment Size $39,667
Jonathan Sandlund | @jsandlund
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32. Equity
11 Deals
$9.7 Million
‣ Domain Expertise Founding team has deep experience investing in
consumer product and retail industries
‣ Curated Deal-Flow To date, less than 2% of applications have been
approved
‣ 3 Weeks Time it took Melt to raise $1,000,000
Jonathan Sandlund | @jsandlund
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33. To Summarize
Jonathan Sandlund | @jsandlund
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34. Summary
‣ Data
• Zero Fraud
• Young Market, Traditional S-Curve
‣ Crowdfunding Platforms
• Colorfully Diverse
- Debt, Equity, Rev-Share, Blend
• Empowering Businesses & Investors
‣ Value
• Businesses, Investors, Communities
Jonathan Sandlund | @jsandlund
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35. Thank You!
Jonathan Sandlund
j@thecrowdcafe.com
@jsandlund
Jonathan Sandlund
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