Peer to peer finance platforms for small businesses can become the equivalent of a small business bond market, giving them access to highly liquid markets ad providing a much needed alternative to bank lending

1. 1 EmpoweringSMEs to betteraccess to finance : the example of online peer-to-peer finance “Benefits of the Digital Agenda for SMEs” ACCA and UEAPME EuropeanParliament 6 October 2011 Jean-Christophe Capelli, CEO, FriendsClear.com

2. A supportive environment for a new system of financing businesses : online peer-to-peer finance Banking system in crisis : risk-aversion among “plain old’” providers of finance A general resurgence of entrepreneurs and entrepreneurship Low interest rates offered by saving accounts + lack of attractive financial products for personal investors Rise of “social” or “peer to peer” (p2p) finance, where individuals rather than financial institutions lend to or invest in small businesses 2

3. 3 Equityinvestmentplatforms(P2PVenture)

4. 4 Crowdcube (UK)

5. 5 Wiseed (France)

6. Small Business loansplatforms (P2PLending) 6

7. 7 Lending Club (US)

8. Funding Circle (UK) 8

11. Entrepreneur profile « Be Bio »

12. Experiencefrom the field : whatisworking ? Benefits traditionally associated with online disintermediation Banking costs are cut Due diligence are performed by a collaborative work between investors Social networks allow to leverage an unprecedented volume and depth of information on entrepreneurs and their projects No middleman : better return for investors / cheaper access to finance for entrepreneurs Loans default rates kept low (peer pressure) 12

13. Experiencefrom the field : whatneeds to beimproved ? Lack of standardisation (believe it or not) among european countries Banking regulations are VERY different among europeanscountries Consumer regulations are different (as far as banking services are concerned) The importance of financial transparency in an online world. Need for better (positive) credit scoring / rating in some european countries (both for entrepreneurs themselves and SMEs) Hi-quality financial reports and forecasts are required (even for SME’s) 13

14. 14 Q&A Jean-Christophe Capelli CEO FriendsClear jeanchristophe@friendsclear.com Web : http://www.friendsclear.com