Social Approaches to Funding, Crowd Funding: 1. PFM and financial management tools 2. Open innovation models 3. P2P and other models to funding and lending This landscape gives a perspective on the overlapping approaches to funding companies and projects in the social world. Dr. Jay van Zyl

1. Social Approaches to Funding
November 2013
High-level Overview
This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside
Radical Ideas | Practical Implementation
the client organization without prior written approval from SystemicLogic.

2. SystemicLogic Group of companies
In a world where practical answers to problems are in short supply, our focus is to provide business relevant
and implementable solutions.
Our state of the art applied research solutions and consulting offerings are designed to solve complex
business problems.
We live in a socially aware society where involvement across a collective workforce community is used to
drive innovation.
Social Based Innovation paves the way to a more networked and integrated means of managing innovation.
We are driving this evolution forward.
At SystemicLogic Technologies we work with our clients to understand their unique needs and working
methods and how technology can be a tool to make their businesses more efficient.
We design and offer technology solutions that help our clients get and stay ahead of their competitors by
increasing the efficiency of customer, employee or partner related services
Fluid Business Solutions partners with organisations to create an effective change culture focused on
tangible outcomes and business benefit by utilising a proven business discipline that takes the techniques
that make gaming ENGAGING and COMPELLING and applies them to your Project Execution
Environment.
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3. Executive summary
•
The model behind the social-based approach to banking has been gaining momentum since the
2007 financial crisis
•
The model is seen as a disruptor to the current banking model
•
SystemicLogic Research Institute has traced the development of the model since early 1996
•
The model is seen to be risky, partially because of the lack of regulations, however many players
have instituted a levy on borrowers as a means to guard against non payments
•
As a result of the levy, many players have shown significantly lower default rates, than what you’d
typically find from banks
•
Funding volumes have been growing at double digit percentages; from US$1,5 billion in 20011 to US
$2.8 billion in 2012, and expected to grow to US$5,1 billion by end 2013
•
Its appeal has been that the model has been able to meet the requirements of both borrowers and
retail investors
•
The model has gained such wide appeal from potential investors in the US that institutional investors
such as hedge funds and financial firms are become more actively involved and are beginning to look
at the securitisation of the loans
•
Emerging players in the South African market that have begun making waves include RainFin, YIBA,
Startme and ThundaFund
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Radical Ideas | Practical Implementation

4. Categories of social financial activity
Personal Financial
Management
Crowdfunding
Open Innovation
Crowdfactoring
Peer2Peer
Crowdinvesting
Crowdlending
Crowd
Funding
PFM
Open
Innovation
The Crowdfunding market is changing at an exponential rate. Our research aims to capture the key competitors and
models that are enabling this social phenomenon at a particular static point in time. We expect these landscapes to be
constantly changing.
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Radical Ideas | Practical Implementation

5. Thecrowdcafe: Crowdinvesting ecosystems
“Crowdinvesting is not a platform play, but an ecosystem play. The value
of the actual platform—the technology that connects businesses with
investors and facilitates an online transaction between the two—is
becoming more commoditized by the day as Platform-as-a-Service
providers proliferate, enabling anyone to launch a crowdinvesting
platform. And in some instances, one that is fully broker-dealer
compliant out of the box.
It’s not the technology that will differentiate, and ultimately decide the
success of, platforms—it’s their ecosystems. These ecosystems will
consist of value added products and services; delivered to both
businesses and investors; both pre and post-funding. A leading example
of a service is curation. It delivers value to investors by reducing noise in
the marketplace and improving the quality of deals they see.”
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6. Disruptive technology and crowdfunding
“In May 2013, Google announced an investment of $125 million in the
peer-to-peer crowdfunding firm Lending Club. In the same month,
Google Ventures (the venture capital arm of Google), together with
Union Square Ventures and other VCs, invested $7.5 million in Series A
funding for CircleUp, a crowdfunding platform that allows small
businesses to sell equity to accredited investors. Does Google’s
investments in crowdfunding mark the beginning of an era in which tech
giants provide financial services”
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7. Tracking the development of Crowdfunding
UK band Marillion is
funded by US fans to
tour ($60 000)
Spring Street
Brewery launches
the first Internet IPO
Regulation
US intensifies
lobbying of congress
to pass CrowdFundin
bill
Australian Small
Scale Offerings
Board (ASSOB)
allows general public
to invest
2003
SEC issues a release
allowing companies
to post their public
offerings online
Funding circle
launches in the UK
The Term
“Crowdfunding” is
coined
Direct IPO platform
lets the general
public invest directly
in small public
offerings
1996
Pledgie and
Sellaband Start
ArtistShare is the first
successful platform
for fans to pre-fund
albums of popular
bands
2006
IndiGoGo is launched
for films
2007
Grameen Bank
founder Muhammad
Yunus awarded
Nobel Prize
2008
Congress passes
JOBS ACT
RocketHub is
launched
2009
Kickstarter is
launched
Regulation
exemption for people
investing within a 200
mile radius of the
company
2010
2011
2012
Patrick McHenry
authors
Crowdfunding Bill in
the House of
Representatives
Platforms
Event
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2013

8. The development of various Crowdfunding platforms
Est.
Total Funding Size
in ($ Million)
2003: First
Donation based
platforms
(Artistshare)
2004:
Crowdinvesting
platforms are
launched
(Secondmarket)
2003
2004
2005: First P2P
2006:
Microlender (Zopa; Crowdinvesting
Kiva.org)
platform (ASSOB)
2005
2006
2008: Rewards
based platforms
(indiegogo)
2008
2010: B2B
crowdlending
(Funding Circle)
2009
2010
Congress passes
JOBS ACT (USA)
2011
2012
Major Pioneers in the various types of funding
platforms
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2013

9. Crowdfunding and Corporate banking trends
UK band Marillion is
funded by US fans to tour
($60 000)
Funding circle
launches in the UK
The Term
“Crowdfunding” is
coined
Australian Small Scale
Offerings Board
(ASSOB) allows
general public to
invest
Spring Street Brewery
launches the first
Internet IPO
Direct IPO platform
lets the general public
invest directly in small
public offerings
1996
Pledgie and Sellaband
Start
2003
2006
ArtistShare is the first
SEC issues a release
successful platform for
allowing companies to
fans to pre-fund
post their public
albums of popular
offerings online
bands
US intensifies lobbying
of congress to pass
CrowdFunding bill
IndiGoGo is launched
for films
2007
2008
Grameen Bank
founder Muhammad
Yunus awarded Nobel
Prize
Value added service
(Prepaid airtime)
2009
FX Trading
(FIX API, Electronic, FX Trading)
Mobile capability
(mBanking, USSD,)
Treasury solution
(Islamic online treasury (OLT))
Online banking
(Secured, web based portal,
balances, transactions, transfer)
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2009
2010
2011
Patrick McHenry
authors Crowdfunding
Bill in the House of
Representatives
Regulation exemption
for people investing
within a 200 mile
radius of the company
2012
2013
Estimated
Crowdfunding market
of $5.1b
Value added service
(Track, reporting)
Fund hedging
(Global Operating Platform)
Tax services
(Automated workflow, application, collection platform)
2008
Congress passes
JOBS ACT
RocketHub is
launched
Kickstarter is launched
Website look & feel
(Banking 2.0, redesign, calculators)
Remittance service
(Online, money transfer)
Crowdfunding market
of $2.8b
Mobile capability
(Trade Advisor, payment, app)
Payment capability
(Payroll, integrated payment processing, contactless corporate card , commercial cards)
2010
Educational website
(Women, start and grow
businesses)
2011
2012
FX Trading
(Integrated, online, trading, platform)
Treasury solution
(Mobile, treasury management)
2013
FX Trading App
Online banking
(Enhanced, secure, online
platform, FX)
Radical Ideas | Practical Implementation

10. The rapid emergence and growth of Crowdfunding platforms
Platform Market Share & Growth
Year on Year Growth in Funding Volumes (2012)
Estimated African
Share is $0.1m
Grew 85% to
$1.4bn.
Grew 30% to
$116m.
Grew 111%
to $1.2bn.
2013 est. Total $5.1bn
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(Crowdinvesting is
expected to Exceed
$1bn in 2013)
How are banks taking to Crowdfunding?
• FNB Private Clients sponsor Angel Hub
• Santander teams up with Funding Circle in the UK
• BBVA has two crowdfunding platforms, BBVA 'Sum'
and 'BBVA Friends & Family‘
• ABN AMRO launched a crowdfunding pilot, Seeds.nl
• Volksbank Bühl has developed a micro community
based crowdfunding platform in Germany
• Belfius in Belgium has partnered with Angel.me
• Holvi has announced a partnership with new
crowdfunding site Mesenaatti
What are Traditional alternative investors saying?
Angel Investors Will Embrace Equity Crowdfunding,
online platforms provide an improved company and
investor experience. The average angel investor reviews
2,000 business plans annually while choosing to invest
in just 3-5 ventures per year
Venture Capitalist Firms Where VCs will interface with
crowdfunding sites is by investing in the best
crowdfunding platforms on a more focused level
Private Equity Firms Many private equity firms are
already strong advocates of equity crowdfunding sites
and see the platform as an opportunity to diversify
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11. BBVA Research Releases Report, Addresses Crowdfunding
July 2013
“Crowdfunding is a disruptive innovation that commercial banks cannot ignore.
Perhaps, for the first time in history, business and individuals have access to an
unprecedented source of capital created from the small contributions of millions
of individuals around the world.
This is good news for individuals and entrepreneurs, who may never have to
worry about not being able to access traditional lending sources or using more
expensive funding solutions to finance their projects. It is also good news for
small investors seeking a higher return than conventional investment products.
For banks, crowdfunding poses a challenge. From here on, they will face a new
competitor with lower operating costs, a different approach to risk management
and a simpler product offering.
To what extent crowdfunding platforms will displace commercial banks in the
retail and small business segments remains to be seen. However, banks should
be prepared for this trend and make it work to their advantage. “
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12. How are the traditional banks and lenders reacting
• "There are people in SA looking at Crowdfunding," JSE head of strategy and policy Siobhan
Cleary
• “The country desperately needs to get more small businesses up and running, and South African
banks and venture capitalists are slow to dole out the rands. The country’s financial infrastructure
is solid, and by leveraging this technology, massive opportunities could be created” Felicity
Duncan Moneyweb
• The UK government has committed to award £100 million to alternative lenders such as
online peer-to-peer finance companies in a bid to help boost funding to entrepreneurs
• “Lending and equity-based crowdfunding are disruptive technologies for the banking industry with
the potential to displace banks as the primary source of funding for personal and small business
loans.” and “Crowdfunding platforms could naturally evolve to become the primary
source of financial services for young generations.” BBVA Research, US Economic Outlook
2Q-2013
• Peter Renton, founder of Lend Academy: “We know there is also interest in the sector
(Crowdfunding) from Barclays, Citi and Deutsche Bank.”
• James Watt Founder of BrewDog "We never consider a bank or an investment group when
we need funds for more growth plans.“BrewDog is Fastest-growing food and drink company
in the UK for three years
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13. Communities naturally move to crowd based lending and funding
Local Farming Community
• Pool together large amounts of resource
• Loans are provided between farmers
• Three party agreements between Co-Ops and farmers
• Risk is spread across a wider group of individuals
• Banks are largely excluded
Farmer B
Farmer A
Co-op, Agri
Business
Local “social” communities (BrewDog)
• The community can own part of BrewDog
• Investors are entitled to “Epic discounts”
• Membership is grated with an Equity punk card
• They have been able to raise more than ₤1m in less than a month
• Currently running Equity for punks 3
• BrewDog is Fastest-growing food and drink company in the UK for three years
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14. Further the agriculture value chain consists of several key activities
that will benefit from crowdfunding activity
Crowdfund finance to farmers
and facilitate international
development organizations
Allow local communities to provide
additional services around the
primary farming activity
Crowdfund information sharing
and research
Finance
Supplies
R&D
Inputs
Production
Crowdfund various utilities that
are used in the production
process
Facilitate long term lease and
loan agreements
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End users can invest in their local
farmers and receive an income
Collection/
Processing
Distribution
Wholesale/
Traders
Retailing
End User
Crowdfunding provides an
avenue for either intermediation
or disintermediation
Give development institutions the
ability to facility distribution of
produce
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15. What are the future trends in Crowdfunding?
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16. Crowdfunding Platform Figures
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17. World wide growth in Crowdfunding based on…
Number of platforms worldwide
Funding volume
millions
Revenue in US$
Revenue and fees
millions
• Over 40% of surveyed platform charge a transaction
fee based on a percentage commission of funds paidout
• Commission ranges from 2% to 25%
• Additional revenue generated includes a fixed fee per
campaign/ project and registration or listing fees
• 63% surveyed used PayPal services
• Over 45% companies require investors to deposit
monies in escrow accounts
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Source: Crowdfunding Industry Report – May 2012
Crowdsourcing LLC
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18. World wide funding figures 2012
Image courtesy of statista.com
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19. Sources of financing for startups
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20. Funds raised through crowdfunding
Funds Raised through Crowdfunding Platforms in
2012 by Type
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Funds Raised through Crowdfunding Platforms in
2012 by Region
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21. Recipients of the funds
Crowdfunding recipients by size, 2011
Crowd-funding revenue by size of recipient, 2011
Start-ups and small business: Less than $10 million in company annual revenue
Small enterprises: $10 million - $100 million in revenue
Medium enterprises: $100 million - $1 billion in revenue
Large enterprises: More than $1 billion in revenue
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Source: Crowdsourcing LLC
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22. Period and funding
Average campaign timeframes
Paid-out funds: reward & donations based
Weeks
Revenue by industry recipients, 2011
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Source: Crowdfunding Industry Report – May 2012
Crowdsourcing LLC
Paid-out funds: equity based
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23. Peer to Peer (P2P) Lending
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24. Overview of P2P lending
• Also called Social Banking, where the lending transaction is facilitated directly between individual
lender and borrower via a web platform
• The type of loan can be secured or unsecured
• The facilitator’s service provision includes
– Connecting the borrower with potential lender(s)
– Conducting credit checks on both parties, FICA and affordability checks in the case of borrowers
– Providing the platform where borrowers may list the requested loan amount and reasons
thereof
– Matching borrowers with appropriate lenders and facilitating the contract terms
– May also provide second market listing where investors may sell their investment to other
investors
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25. Overview of P2P lending
• There are two rate models that may be used, namely
– Pre-set rate model: where the interest rate is based on borrower’s credit scoring
– Auction model: where investors bid on the listed loan request
• There are different types of lending, including
– Direct lending: transacting parties comprise a lender and a borrower
– Pooled lending: where a single investment of capital is split amongst multiple borrowers; where
the source of investment is multiple lenders; or a combination of multiple lenders and
borrowers
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26. Overview of P2P lending
• The facilitators and service providers do not need a banking license as they are not deposit taking
institutions, nor are they raising capital for lending purposes
• There is minimal risk for the facilitator and service provider because the terms of contract are
negotiated between the lender and borrower, bound by the Credit Regulator
• Facilitators generate revenue by charging borrowers a fixed transaction fee, and lenders a service
fee
• Benefits to this model includes
– Provides an alternative lending source for borrowers and investment mechanism for lenders/
investors from traditional financial institutions
– The return to lenders and rate to borrowers is better because there is no margin charged, only
a fee by the facilitators
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27. Key thoughts
Prosper
• Headquarters: San
Overview
• Re-launched: 2009
• One of the most well-known P2P lenders in the market
• Leverages the power of the community to facilitates lending transactions between
Francisco, California
• Rate model: Pre-set
interest rate based on credit
scoring
• Revenue: Loan origination
fee & investors annual
service fee
• Loan type: Unsecured &
secured personal loan
• Funding volume to date:
lenders and borrowers through their web platform
• Prosper administers the lending process including payments, collection and interest back
to investors
• Changed its business model in December 2010 from auction-style model to pre-set rates
on loans based on borrowers credit-risk
• Also provides a second market offering for Note Trading, in cooperation with CoFolio
Investing
$300 million
• ROI: 10.56% (2012)
• Loan types:
– Debt consolidation
– Home improvement
– Short-term bridge loans
– Auto & vehicle loans
– Baby & adoption loans
– Engagement ring loans
– Wedding loans
– Green loans
– Military loans
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28. Key thoughts
• Headquarters: San
Francisco, California
• Launched: 2007
• Rate model: Pre-set
interest rate based on credit
scoring
• Revenue: Loan origination
fee & investors annual
service fee
• Loan type: Unsecured &
secured personal loan
LendingClub
Overview
• Allows registered members to directly invest in and borrow from each other
• Its primary aim is to offer better rates to borrowers and better returns to investors
• Individuals and institutions may be lenders
• Works with various partners to administer the process, including collection agencies
• Also provides a second market offering for Note Trading to investors through Foliofn,
where investors may sell their loan investment to other investors
• Platform also allows investors to build a portfolio of Notes based on their investment
criteria
• Funding volume to date:
$737,679,250
• Interest paid to
investors to date:
$63,283,021
• Loan types:
– Consolidate debt
– Payoff credit card
– Car and vehicle
– Home improvement
– Business loans
– Special events
– Green loans
– Pool loans
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Radical Ideas | Practical Implementation

29. Key thoughts
• Headquarters:
Johannesburg, South Africa
• Launched: 2012
• Founders: Sean Emery &
Hannes van der Merwe
• Rate model: Auction model
where investors bid on listed
loans
• Revenue: Loan origination
fee & investors annual
service fee
• Loan type: Unsecured &
secured personal loan
RainFin
Overview
• RainFin connects South African individual borrowers with potential lenders through their
online platform
• It aims to offer lower interest rates to borrowers and better interest rates to lenders
• Inspired by stokvel model which is an off-line model of the peer-to-peer lending model
• Individual lender may invest from R100 to R500,000
• RainFin uses the auction business model where investors bid on the listed loan
• Borrowers specify the loan amount, the rate they would be willing to pay and the loan
duration they prefer
• RainFin screens all borrowers through affordability, FICA and credit worthiness checks
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Radical Ideas | Practical Implementation

30. Key thoughts
Zopa
• Headquarters: London,
Overview
• Launched: 2005
• Zopa was founded in the UK and was the first P2P company in the world
• Zopa stands for ‘zone of possible agreements’; a negotiating term identifying the
England, UK
• Number of employees:
28
• Rate model: Interest rate
based on credit scoring
• Revenue: Borrowers fee &
1% annual lenders fee
• Loan type: Unsecured
• Turnover: 2011 – £2.2
million
• Profit: 2011 – £26,143
• Funding volume to date:
bounds within which agreement can be reached between two parties
• Borrowers are charged a borrowing fee on the loan approved, which is added to the
loan amount
• Lenders are charged a 1% annual lender fee on the amount they lend
• Lenders and borrowers are anonymous, unlike crowdfunding platforms such as
Kickstarter
• Only individuals may lend money
• To reduce any risk, lenders only lend small chunks to individual borrowers. The amount
lent to any one borrower is automatically set to £10, meaning a loanbook of £2000 will
be split across 200 borrowers.
Approximately £185 million
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31. Key thoughts
• Headquarters: California,
United States
• Founded: 2012
• Rate model: Pre-set
interest rate based on
borrower’s financial history
• Revenue: Loan origination
fee (including late and
unsuccessful payment fees)
& investors annual service
fee
• Loan type: Unsecured
personal loan
• ROI: 9%-10%
Daric
Overview
• Daric received an investment injection for its operations from Goldcrest Investments in
early 2012
• Will approaches their lending offering from a user experience perspective
• Offers different maximum loan amounts to individuals and businesses where the
company will look at the borrowers’ “positives” such as their income and cash flow
statements as well as their ability to repay the acquired loan-which creates the
borrower’s “good financial history”
• Borrowers are able to load their bank account(s) to their online profiles and upon
receiving the loan- the funds are then automatically deposited in the borrowers account
• Loans are broken down into different parts “grades” to easily place borrowers: their
financial history and the amount borrowing affect their placements and Annual
Percentage Rate (APR) that is to be repaid
• Loan types:
– Consolidate debt
– For general purchases
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32. Crowdfunding
Radical Ideas | Practical Implementation

33. Overview of our Crowdfunding model
• The Crowdfunding market is changing at an exponential rate. Our research aims to capture the
key competitors and models that are enabling this social phenomenon at a particular static point
in time. We expect these landscapes to be constantly changing
• The following model looks only at the various funding options available to individuals looking to
crowdsource funds for business or project purposes, not p2p lending
• This approach is used for raising capital for new projects and businesses by soliciting
contributions from the public, through an online Crowdfunding Platform
• Based on three models
– Receivable/ Crowdfactoring
– Equity/ Crowdinvesting
– Debt/ Crowdlending
• The funding is then further split by the target market that the funds are intended for:
– Startups or projects
– Small Micro and Medium sized organisations (SMMEs)
– Niche industries
Receivable
Startups
SMMEs
Niche industries
Debt
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Equity
Radical Ideas | Practical Implementation

34. Geographic spread of evaluated Crowd Funding Platforms
1
14
14
26
3
12
1
1
8
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1
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35. Geographic spread of African Crowdfunding platforms reviewed
1
8
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6
2
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36. Crowdfunding Platform
Positions
Startups
SMMEs
Niche
Recievable
Crowdfactoring
Debt
Crowdlending
Equity
Crowdinvesting
Radical Ideas | Practical Implementation

37. Crowd funding options in the new economy
Level of Capita Investment Required
Crowdinvesting
Crowdlending
Crowdfactoring
Project / Idea
Development
Business Development
Pre-Listing /
Advanced Support
Post Public
Offering
Radical Ideas | Practical Implementation

38. Level of Community Interaction
Relative positions of key players
Level of Business Support
Radical Ideas | Practical Implementation

39. Crowdfunding options in the new economy
Level of Capita Investment Required
Crowdinvesting
Crowdlending
Crowdfactoring
Project / Idea
Development
Business Development
Pre-Listing /
Post Public
Advanced Support Ideas | Practical Implementation
Offering
Radical

40. Investment / Crowdfunding
Radical Ideas | Practical Implementation

41. Key thoughts
• Headquarters: Venice,
California, US
• Launched: 2011
• Classification: Equity/
Crowdinvesting & Recievable
Crowdfactoring
• Target: SMMEs
• Field of expertise:
Creating multiple networks
of investors and service
providers
• Notable: A nuanced
understanding of the diverse
disciplines within the online
investment market including
Entrepreneur Ecosystem
Development, Early Stage
Finance, Securities Law, and
Online Services
Crowdfunder.com
Differentiator
• Online and offline accelerator for local entrepreneurial ecosystems that connects
businesses to top entrepreneurs and investors in similar areas through online challenges
& live pitch events. The approach looks to get service providers involved in the
“Ecosystem” of services
Overview
• Emphasis is placed on the local community and the relevance of a specific project to
that community
• They are driven by the need to create globally connected local entrepreneurial
ecosystems that serve as the foundation for development and innovation
• There is a concept called CROWDFUNDx which is a powerful online + offline accelerator
for local entrepreneurial ecosystems. Through a proven process, CROWDFUNDx opens
up access to capital for local startups and small businesses through a free and open
online-to-offline community engagement model, powered by Crowdfunder’s global social
network
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42. Key thoughts
• Headquarters:
Johannesburg, South Africa
• Launched: 2011
• Classification: Equity/
Corculture
Differentiator
• Entrepreneurs in search of funding need to complete an online application form that is
available on Corculture’s website. The company will assess the application and if the
idea is compelling enough, it will be approved for listing on their website
Crowdinvesting
• Target: SMMEs
• Field of expertise: A team
of high net work individuals
with business experience
have the opportunity to
advice new companies and
invest in their potential
future
• Notable: They only have
about 20 investors who
range from angel investors
who are willing to invest
R500 000 to individual
investors with deep pockets,
amongst them wealthy SA
businessmen, with the
capacity to invest R50m
Overview
• Corculture charges 5% of the value of the deal (the amount of money that was
successfully raised for the entrepreneur
• Corculture is privileged to have a group of private investment funders who rank
amongst some of the wealthiest individuals in South Africa
• They facilitate entrepreneurs at various business stages to become investor-ready
• The website doesn’t play a role other than an introduction and general information,
opportunities are not listed, NDAs need to be signed by all parties for a deal to
commence
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43. Key thoughts
• Headquarters:
Johannesburg, South Africa
• Launched: 2008
• Classification: Equity/
Crowdinvesting
• Target: SMMEs
• Field of expertise:
Identifting opportunities for
investors who are looking to
‘Buy’ BEE points
• Notable: They have
positioned Enterprise
development as the key
pillar in the BEE scorecard
and assist companies to
make better investment
decisions
Edge Growth
Differentiator
• Enterprise Development is growing small and medium sized businesses by providing
finance and support services that would assist them in becoming more competitive and
overcoming the constraints to growth that they face
Overview
• Edge Growth has worked with clients in a variety of industries and projects; ranging
from ED strategy and programme design, enterprise development opportunity
assessments to training consultants on how to select good businesses to invest in.
Below is a summary of a number of our clients
• The website is used purely as an informational tool with no opportunities explicitly
listed on the website, this is in contradiction to traditional funding platforms
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Radical Ideas | Practical Implementation

44. Key thoughts
• Headquarters: New York,
USA
• Launched: 2004
• Classification: Equity/
Crowdinvesting
• Target: Startups
• Field of expertise:
Leverage the world's most
complete investor database
to find appropriate investors
for your business according
to location, industry interest
and other relevant criteria
Gust
Differentiator
• Gust enables skilled entrepreneurs to collaborate with the smartest investors by virtually
supporting all aspects of the investment relationship, from initial pitch to successful exit
Overview
• Gust is endorsed by the world's leading business angel and venture capital associations,
and powers over 1,000 investment organizations in 65 countries
• Company profile presents all the information investors need to know in a professional
way and facilitates the way in which entrepreneurs can reach many different investors
• Entrepreneurs are guided throughout the process to ensure they manage each aspect of
a successful venture
• Notable: More than
160,000 start-ups have
already used the platform to
connect and collaborate
with over 40,000 individual
accredited investors
• Over 1,800 startups funded
in the last 12 months
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Radical Ideas | Practical Implementation

45. Key thoughts
• Headquarters: Cape Town,
South Africa
• Launched: 2011
• Classification: Equity/
Crowdinvesting
• Target: Startups
• Field of expertise: The
focus is on the investor and
how they can improve their
portfolio through well
qualified opportunities
• Notable: Investment Size:
R1m-R10m
AngelHub
Differentiator
• AngelHub is a Business Angel Investment Group that pools funding, expertise &
networks from a diverse range of early-stage Angel Investors for investment in highgrowth South African ventures to accelerate growth & create value
• AngelHub Use Gust and other platforms to identify opportunities beyond startups
approaching them
Overview
• The website used by AngelHub does not facilitate an online investing experience but
rather facilitates the meeting of investors and “NDA” type, private sharing of investment
opportunities
• Investors can form an angel group, which are individual angels joining with other angels
to invest collectively in entrepreneurial firms
• Investment Length: 3-7
years
• Geography: Johannesburg
and Cape Town (initially)
• Investment Stage: Early-
stage or expansion phases
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Radical Ideas | Practical Implementation

46. Key thoughts
• Headquarters: United
States of America, New York
city
• Launched: July, 2012
• Classification: Equity/
Crowdinvesting
• Target: Startups/ SMMEs
• Field of expertise: First
Line's focus is
implementation of earlystage public strategies for a
diverse range of hi-tech
companies internationally
IPO Village
Differentiator
• IPOvillage.com is dedicated to crowdfunding initial public offerings (IPOs)
Overview
• Given the monumental advances in online social media networking capabilities, lucrative
pre-IPO investment opportunities can now be made directly available to the general
public
• IPO Village's debut IPO will be on behalf of a First Line Capital portfolio company
• First Line's portfolio companies are all publicly traded. Therefore, public offerings
provide shareholders with liquidity and a clear exit strategy
• Notable: Founded in 1995,
First Line Capital is a
boutique investment
banking firm
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Radical Ideas | Practical Implementation

47. Key thoughts
• Headquarters: Australia,
ROBINA
• Launched: March, 2006
• Classification: Equity/
Crowdinvesting
• Target: Startups/ SMMEs
• Field of expertise:
Multiple support models
• Notable: $120,015,443
raised to date. Over 200
companies have been
assisted. Listings have gone
on to worldwide stock
exchanges like the AIMS
London Stock Exchange,
Frankfurt, Toronto and the
Australian ASX
ASSOB
Differentiator
• ASSOB has a large, diverse and committed community of stakeholders who work
together to support Funders in every possible way
• Overview
• ASSOB assists small and medium sized business to sell equity (shares/stocks) in their
business to friends, family, fans and followers of the business in a compliant and proven
manner
• Businesses profiled on the platform usually raise between $600,000 and $1.2 million for
each raising. some companies have achieved several raisings
• ASSOB is an interactive platform that connects quality private, unlisted and pre-IPO
companies with investors and supporters of a company who want to engage financially
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Radical Ideas | Practical Implementation

48. Key thoughts
• Headquarters: United
States of America, Miami, FL
• Launched: November, 2011
• Classification: Equity/
Crowdinvesting
• Target: Startups/ SMMEs
• Field of expertise:
Multiple support models
• Notable: Named
the #1 Equity Based
Crowdfunding Platform
by Worth Magazine
EarlyShares
Differentiator
• EarlyShares has a Crowdfunding support services including access to an ‘expert’ lounge,
resources and ‘university’ which is a free service designed to help investors and
business owners take full advantage of social based funding
Overview
• EarlyShares securely connects high-potential entrepreneurs seeking funding with
investors looking for quality investments in early-stage companies, with minimum
investment amounts as low as $100
• In addition to allowing new ideas to get funded, the EarlyShares platform allows
existing busi
• Businesses can provide investors with ongoing status updates, newsletters and reports;
and businesses can receive investor feedback and support thanks to the EarlyShares
communication portal
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Radical Ideas | Practical Implementation

49. Key thoughts
• Headquarters: United
States of America
• Launched: January 2010
• Classification: Equity/
Crowdinvesting
• Target: Niche
• Field of expertise: mobile
apps, Facebook apps, social
apps, websites, social
networking, social media,
healthcare and medical
technology, high tech
sciences, and energy and
solar technology
Startup Valley
Differentiator
• StartupValley is a crowdfunding portal that allows technology startups and businesses to
register and pitch their company or product to the crowd
• The Platform has a strong portfolio management component with the ability to ‘follow’
companies
Overview
• StartupValley is an equity-based crowdfunding portal that allows tech startups and
business to raise early-stage capital in exchange for equity ownership in their company
• Businesses can post their company, pitch their product, and raise funds for the
development of their next big tech idea
• All investors and non-accredited investors will be given a related equity ownership in the
company for their investment amount, as determined by the owners of the business.
• Notable: Companies can
upload a comprehensive
pitch with supporting
documents
• Various regulatory concerns
have seen little activity on
the platform
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Radical Ideas | Practical Implementation

50. Key thoughts
AngelList
• Headquarters: South
Differentiator
• Launched: January 2010
• Classification: Equity/
Trending is based on indications of interest from candidates, investors and customers. In
other words, when a lot of high-quality candidates, investors or customers say they
want to meet your startup, in a short period of time, you “trend”. This improves your
chance of success on the platform
Beach - San Francisco,
California
Crowdinvesting
• Target: Startups
• Field of expertise:
Investment and startup
recruiting
• Notable: Over 1500
Overview
• AngelList's Invest Online feature lets accredited investors put small amounts of money
into startups
• Startups still cannot publicly announce that they are raising money; only accredited
investors can see which companies are raising money online
startups have used AngelList
to raise money. And startups
that have raised money on
AngelList have gone on to
raise over $1.6 billion in
subsequent rounds
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Radical Ideas | Practical Implementation

51. Key thoughts
• Headquarters:
California, United States of
America
• Launched: August, 2012
• Classification: Equity/
Crowdinvesting
• Target: Niche
• Field of expertise: Highly
specialised in Healthcare
Healthfundr
Differentiator
Healthfundr allows accredited investors to easily get to know and invest in early- to
growth-stage, health and medtech companies
Overview
• The companies listed on Healthfundr have undergone a rigorous screening and due
diligence process
• Healthfundr lets investors easily explore and get to know the most promising
companies. Once an investor knows the business, they do everything else to complete
the investment, including arranging meetings and providing additional information
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Radical Ideas | Practical Implementation

52. Key thoughts
CrowdCube
• Headquarters: United
Differentiator
• Launched: January, 2010
Business owners often relish the help and support of an extended community of
stakeholders and investors can offer their services to new businesses
• Classification: Equity/
Overview
Kingdom, Exeter
Crowdinvesting
• Target: Startups/ SMMEs
• Field of expertise: Equity
based financing and capital
access
• Notable: ₤8,708,000 total
• CrowdCube aims to give entrepreneurs the opportunity to take control of raising funding
from their own network of friends, family, customers and strangers
• It is a new way to fund start-ups and business expansion by crowdfunding for equity,
giving entrepreneurs a platform to connect with ordinary people and raise venture
capital
amount successfully funded
36,157 Registered investors
Page 52
Radical Ideas | Practical Implementation

53. Key thoughts
FundersClub
• Headquarters: San
Differentiator
• Classification: Equity/
FundersClub startups benefit from the experience, advice, and connections of a vast army
of high-net-worth, highly-connected, and highly-experienced professionals with a vested
financial and personal interest in helping the companies succeed
• Target: Startups
Overview
Francisco, California
Crowdinvesting
• Field of expertise: Active
members of FundersClub
include top employees at
corporations such as
Amazon, Apple, AT&T, Bank
of America, CNN, Dell, eBay,
Electronic Arts, Facebook,
Goldman Sachs, Google,
Groupon, Intel, Intuit,
LinkedIn, Logitech,
McKinsey & Company,
Microsoft, Pixar
• FundersClub is a new type of venture capital platform, built around a unique online
marketplace that allows accredited investors to become equity holders in FundersClub
• The platform combines industry-standard venture funds, with an easy-to-use webplatform that allows members to browse and screen fund investment opportunities,
view investment profiles and sign legal documents
• Notable: Over $5,011,221
invested by FundersClub.
• Over $41,090,213 invested
in FundersClub companies
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Radical Ideas | Practical Implementation

54. Key thoughts
• Headquarters:
Stellenbosch, South Africa
• Launched: November, 2012
• Classification: Equity/
Crowdinvesting
• Target: Startups/ SMMEs
• Field of expertise: They
will validate the various
opportunities and allow
individuals to invest from as
little as R1 across various
fields
Crowdinvest
Differentiator
Potential investors can view, share, LIKE, or invest
Overview
• People come together and invest modest amounts in a specific high value investment
opportunity
• The crowdinvest business model is similar to the successful “stokvels” or cooperatives
that have been around for decades
• We are the first crowd sourced investment platform in the world offering investment
opportunities in a range of different sectors: Business, Property, Fixed assets and
Creative & Media
• Businesses, such as a new
e-commerce start-up
• Creative projects like the
new clothing range of an
upcoming clothing designer
• Property for example a
tenanted office building or
• Fixed assets like a 1965
Aston Martin DB5
• Notable: Crowdinvest is the
first crowd sourced investing
platform in South Africa
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Radical Ideas | Practical Implementation

55. Key thoughts
• Headquarters: United
States of America,
Fayetteville, Arkansas
• Launched: December, 2005
• Classification: Equity/
Crowdinvesting
• Target: Startups/ SMMEs
• Field of expertise: Various
partnership with key service
providers alows equitynet to
offer a variety of additional
services
• Notable: 12,000 individual
EquityNet
Differentiator
EquityNet's patented business plan software and Enterprise Analyzer™ technology
enables entrepreneurs to analyse and optimise their business plan before they engage
investors via the EquityNet funding network
EquityNet is the only patented crowdfunding platform in the world
Overview
• Angel investors and business supporters use EquityNet's advanced technology to
efficiently screen and analyse businesses to fund and support entrepreneurs
• Investors get a standardised view of analysing opportunities with free access
• Entrepreneurs select from 3 paid models with varying levels of assistance in developing
the business plan from EquityNet, Basic, Plus and Premium
investors with
$207,460,600 in funds
raised
Page 55
Radical Ideas | Practical Implementation

56. Key thoughts
Seedrs
• Headquarters: London,
Differentiator
• Launched: January, 2010
The Seed Enterprise Investment Scheme (SEIS) provides massive tax reliefs to individual
investors who purchase new shares in very early-stage companies.
• Classification: Equity/
Borrowers have access to mentors
United Kingdom
Crowdinvesting
• Target: Startups
• Field of expertise: Equity
based financing and capital
access
• Notable: Access capital
from a wide range of
investors.
• Benefit from a seamless
fundraising process.
Overview
• Seedrs is an online platform for investing seed capital
• Investors invest money in startups in exchange for a portion of their equity, meaning
that you buy shares in the business
• If a business you've invested in succeeds, the shares you own will become worth more
than you paid for
• If you like a startup you see, you can invest between £10 and the full amount the
business is seeking
• Connect with a strong
network
• Access to Mentors
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Radical Ideas | Practical Implementation

57. Key thoughts
• Headquarters:
California, United States of
America
RealtyMogul
Differentiator
Crowdfunding for real estate
• Launched: August, 2012
• Classification: Equity/
Overview
• Target: Niche
• Field of expertise: Real
• Insider access to pre-vetted real estate investments
• Pool money with like-minded investors to make investments that are otherwise difficult
Crowdinvesting
estate and property
investing
• Notable: Each real estate
• Realty Mogul is a marketplace for accredited investors to pool money online and make
direct investments into local real estate
to access
• Real estate companies are provided with vetted investors
investment is tied to a real
estate company that deals
with the hassles
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Radical Ideas | Practical Implementation

58. Key thoughts
• Headquarters: United
States of America,
Columbus, Ohio
• Launched: 2012/05/22
• Employees: 20
• Classification: Recievable/
Crowdfactoring & Equity/
Crowdinvesting
• Target: Startups
• Field of expertise:
– Entrepreneurs
– Start-up businesses
• Notable: Fundable is an
excellent option for
businesses of all sizes - from
a successful goal of $3000
for an organic skincare line
to a successful goal of
$900,000 for a mobile app,
this is a crowdfunding site
created by entrepreneurs for
entrepreneurs
Fundable
Differentiator
The company will also enable startups to offer either rewards of equity in return for
investments
Overview
• Fundable makes use of a Crowdfunding platform that connects entrepreneurs and
commercial start-up businesses with potential funders
• The business owner must reach or exceed its funding target set in order to receive
funds pledged by funders
• Aims to assist business owner raise money to build products or reach business goals
• Funders may also provide personal assistance to the business instead of cash
Page 58
Radical Ideas | Practical Implementation

59. Key thoughts
• Headquarters: USA
• Launched: 2009
• Employee composition:
Management team, and
advisory members
• Fees: US$50 per month to
list on CoFolio platform
Cofolio
Differentiator
• Cofolio aims to connect small business owners looking for expansion capital with local
investors, allowing anyone to build their own community portfolio
Overview
• Business owner creates a Cofolio profile including reason for funding, amount
requested, and other general information
• Classification: Equity/
• Business opportunity is marketed to local community investors and once requested
• Target: SMMEs
• Field of expertise:
• Makes use of a equity or debt model for investors
Crowdinvesting
funds have been raised, Cofolio approved lawyers finalise the prospectus terms
– Small to medium sized
enterprises
– Start-up businesses
• Notable: Cofolio allows
your business to raise any
amount of capital, although
our recommended funding
range is from $250,000 –
$1,000,000
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Radical Ideas | Practical Implementation

60. Key thoughts
• Headquarters: San Bruno,
CA
• Launched: 2009
• Classification: Equity/
Crowdinvesting
• Target: Startups/ SMMEs
• Registered users: Total of
77 000 buyers, bulletin
boards and brokers
• Fees: US$34 pm for
Sharespost
Overview
• Sharespost is an online platform that connects investors; from buyers, sellers and
brokers with late-stage venture-backed companies and their shareholders
• Sharespost provides the information, tools and assistance investors need to close
transactions
• To a degree, Sharespost
companies
offers the services of a traditional exchange, for private
• The online platform also facilitates transactions between shareholders and potential
investors, i.e. secondary transactions
investors and companies
listing on the platform
• Investor type: Must be
“Accredited or
sophisticated“ investor
under US SEC Regulations
• Field of expertise:
– Companies with a
valuation of more than
US$100 million
– Companies with US$10
million or more
– In business for 5 years or
more
– Only vested shares with
pre-public companies can
be traded
– To trade, shares must be
Page
held for at60
least a year
Radical Ideas | Practical Implementation

61. Key thoughts
• Headquarters: New York,
United States
• Launched: 2004
• Classification: Equity/
Crowdinvesting
• Target: Startups/ SMMEs
• Number of projects:
Secondmarket has bought
together more than 100 000
individuals and institutions
and completed billions of
dollars in alternative
investment transactions
Secondmarket
Overview
• Similarly to Sharespost, Secondmarket works with companies, buyer and sellers to
create markets for alternative assets
• Users can create investment identities and build their own investor network
• Secondmarket also offers bank stock, fixed income and bankruptcy claims services
• Secondmarket is a registered broker-dealer and member of FINRA, MSRB and SIPC and
a registered alternative trading system (ATS) for private company stock
• Field of expertise:
Marketplace
Illiquid Assets
Financial Services
Hedge Fund
Venture Capital
Private Equity
Auction-Rate Securities
Bankruptcy Claims
Private Company Stock
Private Community Bank
Stock
• Restricted Securities
• Block Trades. CDO
•
•
•
•
•
•
•
•
•
•
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Radical Ideas | Practical Implementation

62. Key thoughts
• Headquarters:
Netherlands, Utrecht
• Launched: 2011
SymBid
Differentiator
• Profit from the knowledge of the crowd, use all the tools you need to create and
present ideas, interact with all social networks to also activate your own crowd
• Classification: Equity/
Overview
• Target: Startups/ SMMEs
• Symbid enables entrepreneurs to receive equity financing from large groups of people
• Symbid will offer a collaborative online environment where believers and entrepreneurs
Crowdinvesting
• Incentive: The equity the
borrower stands off will
come with advice from the
investors
can interact with each other. This crowdsourcing element will enable participating
companies to connect with members and tap their knowledge
• Symbid offers a Affiliate Program for partners who send users to the Symbid system
• Field of expertise:
Symbid looks to shape ideas
with the help of crowd input
and develop sustainable
businesses
• Notable:
First equity-based
crowdfunding platform
Page 62
Radical Ideas | Practical Implementation

63. Key thoughts
Investors Network
• Headquarters: South
Differentiator
• Classification: Equity/
Access to free advice and Legal agreements, a toolbox of key entrepreneurial resources.,
a 'Help Section' where members can ask for advice, sections to search for entrepreneurial
opportunities and strategic alliances
• Target: Startups/ SMMEs
Invsestment opportunities can only be viewed once the investor has been approved
Africa
Crowdinvesting
• Incentive: The equity the
borrower stands off will
come with advice from the
investors
• Field of expertise:
Created to support and
develop creative and
uniquely South African Ideas
Overview
• The business provides both face-to-face networking meetings in Johannesburg, Cape
Town, Durban, Bloemfontein and Port Elizabeth as well as on-line networking
• Entrepreneurs seeking funding and growth, Investors seeking opportunities and
Business Professionals seeking visibility facilities
• Registration is free for investors but is subject to approval
• Notable: Priority invites to
Networking events
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Radical Ideas | Practical Implementation

64. Debt / Crowdlending
Radical Ideas | Practical Implementation

65. Key thoughts
• Headquarters: United
States of America
• Launched: January, 2008
FundRazr
Differentiator
• advanced social media technology helps our customers’ campaigns rise above the noise
on Facebook and Twitter.
• Classification: Debt/
Overview
• Target: Startups/ Projects
• Campaigns are seen by more potential contributors and, as a result, raise more money
• FundRazr can be used to fund just about any type of project or cause, examples include
Crowdlending
• Field of expertise: Social
media and analytics. Stats
show our system generates
over 300% more social
media exposure compared
with regular Facebook
sharing
funding medical expenses, memorials, accident recovery, pet care, natural disaster
relief, charitable causes or entrepreneurial projects
• Anyone can use FundRazr to Crowdfund Anything. Anywhere.
• Notable: raised over
$21,000,000 for over 36,000
campaigns in 18 different
countries
Page 65
Radical Ideas | Practical Implementation

66. Key thoughts
• Headquarters: United
States of America, Denver,
Colorado
• Launched: November, 2012
• Classification: Debt/
Crowdlending
• Target: SMMEs
• Field of expertise:
Quantifying and qualifying
investment opportunities
P2Bi
Differentiator
Reimagining business lending to give companies better cash flow and access to cash for
day to day operational requirements
Overview
• The business (our client) sells its invoices to P2Binvestor
• P2Binvestor (P2Bi) purchases the invoices, puts them up on our website and manages
underwriting and collections
• The debtor receives goods and services from our client and is responsible to pay
P2Binvestor
• The investor buys into a portfolio of client invoices
Page 66
Radical Ideas | Practical Implementation

67. Key thoughts
• Headquarters: London,
United Kingdom
• Launched: February 2011
• Classification: Debt/
Crowdlending
• Target: SMMEs
• Field of expertise:
MarketInvoice is a
revolutionary new way for
SMEs to access the capital
locked in their long-dated
invoices
MarketInvoice
Differentiator
The advance will be paid into your bank account within 24 hours
Overview
• Apply to MarketInvoice to raise finance against the invoices of one or more of your large
end customers
• Professional investors advance you cash. A wide range of funders means sellers always
get a good deal, and that invoices are sold quickly
• When your customer pays your invoice, you refund the advance plus fees, with any
remainder forwarded to you
• Notable: £50,981,500
advances so far
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Radical Ideas | Practical Implementation

68. Key thoughts
• Headquarters: Cincinnati,
Ohio, United States of
America
• Launched: August, 2011
• Classification: Debt/
Crowdlending
• Target: Niche
• Field of expertise:
SoMoLend automates,
speeds and simplifies the
steps for loan application,
review, funding progress
reporting, communications
between borrower and
lenders, and payments. We
utilize best practices to help
our borrowers develop and
market their campaigns
SoMoLend
Differentiator
SoMoLends technology platform uses a GPS location tracking system (think foursquare)
so that investors can view a map of business borrowers in their community
Overview
• SoMoLend is a Web-based lending platform that uses patent-pending technology to
connect small business borrowers with individual and organizational investors (lenders),
executed within a hyper-localizedgeographic scope
• SoMoLend's user-friendly technology allows small business borrowers to obtain loans
from friends, family, customers, community supporters and interested organizations as
well as from Facebook, Twitter, and LinkedIn connections
• Notable: Typically with 15
or fewer employees who
need commercial loans
ranging from $100 to $1
million
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Radical Ideas | Practical Implementation

69. Key thoughts
• Headquarters: US
• Launched: September
2012
• Classification:
Crowdfunding/ Debt &
Recievable/ Crowdfactoring
• Target: SMMEs
• Incentive: Investors
receive a return on their
investment for a set period
of time
Bolstr
Differentiator
Attorneys can sign up as service providers on bolstr
Overview
• Bolstr was founded to provide Small Businesses with a simple fundraising tool that
enables them to transform their network and community into a team of investors, and
supporters
• Bolstr democratizes, and simplifies the process of raising money through a private
offering
• Field of expertise: Small
Businesses can effectively
leverage their network and
community to raise the
money needed to operate
and expand
Page 69
Radical Ideas | Practical Implementation

70. Key thoughts
• Headquarters:
California, United States of
America
Mosaic
Differentiator
Mosaic connects investors to solar projects in need of financing
• Launched: April, 2011
• Classification:
Overview
• Target: Niche
• Field of expertise:
• As the project earns revenue, investors are paid back with interest
• The fundamentals of solar makes it an attractive component of a diversified investment
Crowdfunding/ Debt
Investing in renewable
energy, specifically solar
energy
• Each investment you make is represented by a Mosaic Note. The note is a written
promise to pay a specific sum of money over a fixed term
portfolio: reliable technology, predictable energy output, and stable cash flows
• Notable: Over $2.1 million
has been invested through
Mosaic and investors have
received 100% on-time
repayments
Page 70
Radical Ideas | Practical Implementation

71. Key thoughts
SunFunder
• Headquarters: San
Differentiator
• Employee composition:
Investors earn back their principal investment plus intrest-based "Impact Points" to
reinvest in another project of their choice
Francisco, CA
Management team, and
advisory members
Overview
• Revenue: A percentage of
• SunFunder uses its platform to connect investors who want to invest in solar energy
• Classification: Debt/
• Relies on a partnership model with solar energy business around the world that provide
funds raised
Crowdlending
• Target: Niche
• Incentive: Capital
repayments and
ImpactPoints the equivalent
of US$1
projects with companies that require affordable capital
solar energy solutions to communities
• Funding target set has to be reached before the company can receive the funding
• The funding is in the form of a loan and investors receive capital repayments over the
lifespan of the finance period
• Field of expertise:
– Solar energy companies
Page 71
Radical Ideas | Practical Implementation

72. Key thoughts
• Headquarters: Serling,
Virginia, USA
• Launched: 2009/10/01
• Classification:
Crowdfunding/ Debt
products
• Target: Startups & SMMEs
• Incentive:The average
Zidisha borrower pays less
than 10% in annual interest
and fees
• Field of expertise:
Zidisha's lending model
breaks new ground by using
person-to-person lending to
dramatically lower the costs
of microfinance for lowincome entrepreneurs in
developing countries
Zidisha
Differentiator
• It is the world's first direct peer-to-peer microlending service to link borrowers and
lenders without intermediaries
Overview
• Zidisha is a non-profit peer-to-peer microfinance internet platform that allows people to
lend
• Members can fund loans for as little as a dollar, which the borrowers then use to
develop business activities
• Lender participants have the opportunity to bid to finance all or a portion of the loan at
a proposed interest rate
• Zidisha facilitates for the direct communication between its members (innovative in this
space)
• Loans Raised: $1,080,414
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Radical Ideas | Practical Implementation

73. Key thoughts
• Headquarters: England,
UK
• Launched: January 2011
• Classification:
Crowdfunding/ Debt
products
• Target: SMMEs
• Incentive: The Average
interest rate earned by
Lenders: 10.79%
• Field of expertise:
Intended to meet the needs
of anyone managing an
investment portfolio
(including individuals,
pension fund managers and
companies with cash
deposits), ThinCats provides
direct access to the low risk
market sector traditionally
occupied by high street
banks
ThinCats
Differentiator
• Unique in the way that they always require security and carefully select a small number
of relatively large deals. They have a list of Sponsors who work for the borrower in
helping to prepare the loan case
Overview
• Lending members take part in an on-line auction to join a lending syndicate for each
loan. At the end of the auction those lenders offering the best interest rates are selected
to make up the lending syndicate and get the interest rate they have asked for
• The Borrower is then offered a loan at the weighted average of the accepted bids plus
1.5% to cover operating, deal management and monitoring costs
• The minimum loan is £1,000 and the maximum is the whole loan. So far the most
common bid has been £5,000 but bids of £50,000 are not uncommon
• Loans Raised: 126 loans
totalling £25.085m
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Radical Ideas | Practical Implementation

74. Key thoughts
• Headquarters: London
• Employee composition:
Management team, and
advisory members
• Classification: Debt/
Crowdlending & Equity/
Crowdinvesting
• Target: Niche
• Incentive: Cash based on
project revenue; receive
early investor bonus
• Field of expertise:
– Renewable energy
companies/ projects
• Notable: Its first project,
launched in July 2012,
raised £1.4m to fund a
community-scale wind
turbine
Abundance Generation
Differentiator
provides retail investors with the opportunity to invest their money directly into renewable
energy projects in the UK and get a regular cash return based on the energy produced
Overview
• Abundance aims to link communities with individuals with Renewable Energy projects
• Companies or project owners offer debentures to potential investors
• Abundance then assists in structuring the debentures and to market and distribute them
to registered interested investors
• The debentures, structured over a 20-25 year term, offer investors long-term, low risk and
predictable investment opportunity
• Abundance platform also offers debenture holders the opportunity to sell their debentures
to other interested investors
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Radical Ideas | Practical Implementation

75. Key thoughts
Funding Circle
• Headquarters: United
Differentiator
• Launched: August 2010
Directly connects people who want to invest money with vetted, established businesses
who want to borrow money. Accessing you money back is as simple as selling your loans
onto other investors. On average it takes just 30 mins to sell a loan
Kingdom, London
• Classification:
Crowdfunding/ Debt
products
• Target: SMMEs
• Incentive: Funding Circle
investors are earning 6.2%*
average net return (after
fees and bad debt)
Overview
• Funding Circle is an online marketplace where people can lend directly to small
businesses in the UK, eliminating the high cost and complexity of banks
• At Funding Circle, people get higher, more stable returns for the long term, and
businesses get lower cost finance to expand and develop. It is a simple idea and an
easy to use website, whose creators hope will make a big impact
• Field of expertise:
Funding Circle is backed by
Index Ventures, Union
Square Ventures and a
series of prominent Angel
investors including Alan
Morgan
• 2012 Business Moneyfacts
awards for Best Alternative
Funding Provider
• Loans funded to date:
£107,629,660
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Radical Ideas | Practical Implementation

76. Key thoughts
Rebuilding Society
• Headquarters: Leeds,
Differentiator
• Launched: 2011
They have opportunities for “Introducers” for individuals who refer a business to them
and they complete a loan, Introducers receive an introducer fee of 1.5% of the loan
England, UK
• Classification:
Crowdfunding/ Debt
products
• Target: SMMEs
• Incentive: Offer to lend at
an average return of
between 7 and 15.5 per
cent gross
• Field of expertise: They
offer a Crowdfunding –
Adviser Survey
Users earn Trust Points for positive behaviour in the community. The higher the score, the
more valuable the user is to the community.
Overview
• One of the first 6 platforms globally that has gained market traction for Peer to business
lending
• Investors can subscribe to parts of the loan after assessing the business's information,
committing an amount of their choice, with an interest rate of their choice
• The platform also operates a 'second hand' loan market, where lenders buy and sell
active loans
• First Loan: Feb 2013
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Radical Ideas | Practical Implementation

77. Key thoughts
• Headquarters: Shanghai,
China
• Launched: 2012
• Classification:
Crowdfunding/ Debt
products
• Target: SMMEs
• Incentive: rates varying
SinoLending
Differentiator
• Lenders have the option to use an automated tool to lend to a pool of borrowers to
achieve diversification very easily
Overview
• SinoLending enables borrowers to create loan listings on its website by supplying details
about themselves and the loans that they would like to request
• SinoLending focuses on small-and-medium enterprises (SMEs)
from 9.49% to 23.99%
• Field of expertise:
SinoLending understands
east Asian people's unique
preference for savings and
against consumptio
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Radical Ideas | Practical Implementation

78. Key thoughts
• Headquarters: Stockport,
United Kingdom
• Launched: 1999
• Rate model: Pre-set
interest rate based on credit
scoring
• Revenue: Loan origination
fee & investors annual
service fee, charges on
assets
assetz CAPITAL
Overview
• Has two divisions namely assetz SME Capital and assetz Development Capital that offers
loans strictly to SME businesses and property development projects respectively
• Both divisions share the same systems, however assetz Development Capital has
different lending structures causing the two divisions to be separated
• The assetz group consists of popular UK property and financial services companies that
together have 55 000 (2013) registered private investors
• Both lenders and investors are independently reviewed by Grant Thornton where also
the lenders monies are managed by Grant Thornton LLP as they are trustees
• Loan type: Unsecured and
secured personal loan
• Funding volume to date:
£ 8 978 585
• ROI: 11.8% (2013)
• Loan types:
– Debt consolidation
– Home improvement
– Short-term bridge loans
– Auto & vehicle loans
– Baby & adoption loans
– Engagement ring loans
– Wedding loans
– Green loans
– Military loans
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Radical Ideas | Practical Implementation

79. Key thoughts
• Headquarters: Tallinn,
Estonia
• Re-launched: 2008
• Rate model: Pre-set
interest rate based on credit
scoring
• Revenue: Loan origination
fee, service based fees i.e.
on Ise Pankur account ,
borrowing, debt collection
and resale fees
Ise Pankur
Overview
• Offers lending opportunities for individuals and business to borrow from each other
where they are able facilitate the transactions between the users in stable economies
i.e. Central, Western and Eastern Europe
• In 2010 the company introduced stricter risk management policies to enable their
borrowers to earn higher annual returns on their investments
• A larger portion of the company’s investors are male with a fairly equal number of
female and male borrowers
• Loan type: Unsecured
personal loan
• Funding volume to date:
£ 13855404.01
• ROI: 19% (2013)
• Loan types:
– Debt consolidation
– Home improvements and
mortgage loans
– Start up capital and
business expansion
– Student loans
– Travel loans
– Car and vehicle
– Other Page 79
consumer loans
Radical Ideas | Practical Implementation

80. Key thoughts
• Headquarters: London, UK
• Re-launched: Unknown
• Rate model: Interest rate
based on the lowest auction
offered
• Revenue: Loan origination
fee i.e. application, listing
and completion fees with no
additional fees charged
• Loan type: Unsecured
personal loan but sometime
carrying personal
guarantees
YouAngel.com
Overview
• YouAngel.com offers loans to established and credit-worthy businesses such as limited
companies, limited liability partnerships, sole traders or other partnerships
• They are able to distinguish themselves with their discussion board/forum offering titled
Angel Talk discussion forums where businesses with successful loan applications are
given the opportunity to submit various reports to potential lenders
• Casual users of the Angel Talk discussion forums are not permitted to contribute to
these discussions however there are few limitations on the subject matters the lenders
can talk about creating a “dragon” atmosphere
• In cases where the borrower defaults on payment due, the lender is able to subscribe
to a discretionary compensation fund: were the contributions are made by the borrower
to compensate the lender
• Funding volume to date:
Unknown
• ROI: ranging from
6%-10.5%
• Loan types:
– Business loans
– Business credits
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Radical Ideas | Practical Implementation

81. Key thoughts
• Headquarters: Lincoln,
UK
• Re-launched: Unknown
• Rate model: Pre-set
interest rate based on credit
scoring
• Revenue: Loan origination
fee
• Loan type: Secured
business loans
• Funding volume to date:
Unknown
Squirrl.com
Overview
• Is an online marketplace that brings together lenders called savers to lend to
established suppliers, they are called savers-because the saver has direct say on where
their funds will go to which supplier and for the fact that they don’t pay any investor
service fees
• Has a management administration division that looks after Squirrl.com’s business
administration, development and security trust work as well as an advisory board
division that advises on internal developments and “liaises with the lender community to
act in their best interests when conflict of any description arises between lenders and
Squirrl.com”
• They offer loans to unspecified business borrowers across the UK, were they require the
loans to be secured by offering a portfolio contracts as security
• ROI: Not specified
• Loan types:
– Business loans
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Radical Ideas | Practical Implementation

82. Key thoughts
• Headquarters:
Sittingbourne, UK
• Re-launched: Unknown
• Rate model: Pre-set
interest rate based on credit
scoring
• Revenue: Loan origination
fee
• Loan type: Secured
Funding Secured
Overview
• Offers only large secured loan amounts that are to be more or equal to £25,000 to
businesses where the interested borrower (the business) will be given direct access to a
Funding Secured member to obtain advisory support
• The loan amounts are secured by fixed assets with equalling values: collecting collateral
in the same way as the banks will do
• Borrowers are able to pitch for loans with the desired interest rate, payment length and
level of security
business loans
• Funding volume to date:
Unknown
• ROI: x < 6%
• Loan types:
– Business loans
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Radical Ideas | Practical Implementation

83. Receivable / Crowdfactoring
Radical Ideas | Practical Implementation

84. Key thoughts
M-Changa
• Headquarters: Nairobi,
Differentiator
• Launched: 2011
The entire model is SMS driven and all traditional activities can be performed using simple
basic command key words vie SMS
• Classification: Recievable/
Overview
Kenya
Crowdfactoring
• Target: Startups/ Projects
• Notable: powers donationbased funding for a wide
variety of creative projects
• Field of expertise:
– Funds can be raised for
any type of initiative with
emphasis on social
development and
opportunity creation
• Once the five minute set-up is completed, M-Changa will invite everyone on your list to
contribute to your fundraiser; it tracks their responses and, of course, their
contributions. You can withdraw the funds any time
• Your fundraiser can run indefinitely so long as a payment or withdrawal is completed
once every 14 days. After 14 days your fundraiser will be suspended and you will stop
receiving updates.
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Radical Ideas | Practical Implementation

85. Key thoughts
RocketHub
• Headquarters: United
Differentiator
• Launched: 2010
RocketHub have concepts called FuelPad and LaunchPad programs that help campaign
owners and potential promotion and marketing partners connect and collaborate for the
success of a campaign.
States of America, New York
• Classification: Recievable/
Crowdfactoring
• Target: Startups/ Projects
• Notable: powers donationbased funding for a wide
variety of creative projects
• Field of expertise:
– International access
– Unique, simple
crowdfunding education curriculum and tools
– Most diverse community
art, science, business,
and social good
Overview
• Fuelers and creatives have the chance to unlock badges whenever they complete a
task. These badges are designed in such a way that one's deeds and accomplishments
for the community are highly recognized. These badges serve as their motivation to do
more and create better projects
• The site has been designed to work on an open community based concept
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Radical Ideas | Practical Implementation

86. Key thoughts
Indiegogo
• Headquarters: San
Differentiator
• Launched: 2008
IndieGoGo is available internationally, while Kickstarter requires a U.S.bank account. Non
Profit companies can register for reduced fees
• Classification: Recievable/
Overview
Francisco, California
Crowdfactoring
• Target: Startups/ Projects
• Notable: IndieGoGo
campaigns receive all the
money they have been
pledged, whether the initial
funding goal was reached or
not
• Field of expertise:
– Assist projects and
startups to gain exposure
and provide additional
support based on the
amount of effort the
individual puts in
• Indiegogo helps you spread the word about your campaign with their unique algorithm
called the gogofactor
• You keep 100% ownership of your campaign and you don't owe us a cent until you
raise money
• Manage contributions with a dashboard and stay on top of sending off your perks with
our dashboard. Track who has claimed perks and how to get in touch with contributors
to ensure they receive perks on time
• merit-based algorithm that tracks the level of activity of each campaign based on how
much you share, update, and attract funding
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Radical Ideas | Practical Implementation

87. Key thoughts
CrowdFunder
• Headquarters: United
Differentiator
• Launched: January, 2010
They are able to create specific campaigns around a pre defined communities. An
example is CrowdfundCornwall Campaign which highlights opportunities from cornwall
only
Kingdom, Exeter
• Classification: Recievable/
Crowdfactoring
• Target: Startups/ Projects
• Notable: Various tips and
guidelines are provided from
both an idea, reward and PR
perspective.
• Extra effort is provided to
Overview
• In return for funding a project you’ll get a reward from the project owner. This could be
anything from a ‘big thank you’ to a one off tailored reward just for you, both the
project owner and backer win
• The ‘crowd’ decides what’s good, what’s not, what they want to fund and what they
don’t. If the crowd doesn’t back the project it won’t happen.
the various initiatives
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Radical Ideas | Practical Implementation

88. Key thoughts
• Headquarters: South
Africa
• Launched: 2013
• Classification: Recievable/
Crowdfactoring
• Target: Startups
• Notable: There has not
been much activity on the
platform and the concept
has not been well supported
by the community
FundFind
Differentiator
It is required by borrowers to engage the people who need your product or solution
Overview
• FundFind is a new way to fund projects, startups, and innovations in South Africa using
the proven method of rewards-based crowdfunding
• Define who the project will target most and what they will get for funding the initiative
• For each group the borrower will identify, briefly describe how they can help them and
offer their product tailored to the funders needs as an incentive
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Radical Ideas | Practical Implementation

89. Key thoughts
FundAnything
• Headquarters: United
Differentiator
• Launched: January 2010
There is no cost involved in setting up a project and there are no restrictions as to what
you can raise funds for
• Classification: Recievable/
Overview
• Target: Startups
• FundAnything is a fast, easy way to raise money online
• Individuals or groups can create campaigns that highlight their personal stories or
States of America
Crowdfactoring
• Field of expertise:
Investment and startup
recruiting
• Notable: Donald trump is
causes and explain in detail what they are trying to achieve by raising money
• You can use FundAnything to raise money for a business idea, tuition, medical
emergency, volunteer project, or a celebration
involved and gives advice/
makes recommendations on
specific projects
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Radical Ideas | Practical Implementation

90. Key thoughts
Kickstarter
• Headquarters: Manhattan,
Differentiator
• Launched: 2008
It works on the belief that a good idea, communicated well, can spread fast and wide and
a large group of people can be a tremendous source of funding and support
• Classification: Recievable/
Overview
New York, United States
Crowdfactoring
• Target: Startups
• Notable: Kickstater has
had more than 20 000
projects that were
successfully funded
• Field of expertise:
–
–
–
–
–
–
–
–
–
–
–
–
–
Art
Comics
Dance
Design
Fashion
Film & Video
Food
Games
Music
Photography
Publishing
Technology
Theatre
• Kickstarter is a funding platform for creative projects including everything from
traditional forms of art to contemporary forms
• Kickstarter aims to let creative people of all kinds raise money for their projects by
connecting directly with fans, who receive exclusive access and rewards in exchange for
their patronage
• Kickstarter also works as a publishing platform where projects creators can
communicate with the people that are supporting them
Page 90
Radical Ideas | Practical Implementation

91. Key thoughts
AppsFunder
• Headquarters:
Differentiator
• Launched: 2010
Backers make money from the sales on Android Market and iTunes when the app is
published. You are also offered the opportunity to pitch your app idea at the expert
pannel
Netherlands, Ghent
• Classification: Recievable/
Crowdfactoring
• Target: Startups/ Projects
• Incentive: Rewards, cash
incentive
• Number of projects:
– AppsFunder funded 20
projects with a total
amount of US$21 925
– Has funders who funded
a total of US$24 945
Overview
• AppsFunder is an online platform for technology start-ups to raise funding through
collecting pre-orders for products or services they want to developed
• AppsFunder is dedicated to realizing mobile applications for developers
• Application developers keep 100% ownership of their apps
• AppsFunder is a crowdfunding-site 100% focused on the mobile app - business.
Developers can receive pledges for developing new apps for Android, Apple iOS
• Field of expertise:
– Apple-based mobile
applications
– Andriod-based mobile
applications
Page 91
Radical Ideas | Practical Implementation

92. Key thoughts
Quirky
• Headquarters: Cambridge,
Differentiator
• Launched: 2010
The world influences their business in real-time, and they share their revenue directly
with the people who helped them make successful decisions
• Employees: 50 – 100
• Registered users: 180
Overview
United States
000+
• Classification: Recievable/
Crowdfactoring
• Target: Niche/ SMMEs
• Incentive: 30% of the
total revenue generated by
direct sales of the product
on Quirky.com, as well as
10% of revenue from
indirect sales
• An industrial design company that uses a crowdsourcing platform to solicit ideas for new
products
• Ideas are voted, and commented on by participants and company employees, and
chosen ideas are designed, manufactured and marketed by Quirky
• The ideator/ inventor are charged an upfront fee for submitting an idea, and
implemented ideas share up 30% of profits made
• Funders: Ben Kaufman
• Fees: US$10 per idea
submission
• Field of expertise:
– Industrial designs and
products
Page 92
Radical Ideas | Practical Implementation

93. Key thoughts
Start Me
• Headquarters: South
Differentiator
• Launched: 2011
Investors buy an online currency called “Investment Credit” R1 = 1 Investment credit.
These credits can then be distributed amongst projects the investor is interested in
supporting
Africa
• Classification: Recievable/
Crowdfactoring or Equity
• Target: Startups/ Projects
• Incentive: Various rewards
are promised to investors
based on the amount they
are willing to provide
• Field of expertise:
Overview
• By attracting lots of investors who invest smaller amounts of money into a person,
company, product or idea you can bypass the traditional ways of raising venture finance
• It is a new way to fund entrepreneurs, artists, schools and community projects in South
Africa by crowdfunding for equity or other incentives, giving those looking for funding a
platform to connect with ordinary people and raise start-up finance
Created to support and
develop creative and
uniquely South African Ideas
• Notable: Created by the
same group of South African
Entrepreneurs behind the
South African Investors
Network
www.investorsnetwork.co.za
Page 93
Radical Ideas | Practical Implementation

94. Key thoughts
Kiss Kiss Bank Bank
• Headquarters: France
• Launched: 2011
Differentiator
• Classification: Recievable/
Overview
• Target: Startups/ Projects
• Projects are run on the All or Nothing model
• If clients reach or outreach their objectives, they will receive the amount they’ve
Crowdfactoring
• Incentive: Various rewards
are promised to investors
based on the amount they
are willing to provide
Dedicated to creativity and innovation projects only
collected. However if the goal is not reached by the end of the campaign, the contributors
will be automatically refunded
• Strong emphasis is placed on mobilizing a community of followers around the initiative
• Field of expertise: The
initiative looks to identify
creative and alternative
projects to fund
• Notable: Kisskissbankbank
is the European leader of
this kind of platform
(Crowdsourcing.org)
Page 94
Radical Ideas | Practical Implementation

95. Key thoughts
Rebirth Financial
• Headquarters: Louisiana,
Differentiator
• Launched: 2010
Dedicated to providing loans and services to small businesses based on different level
packages/ options
• Classification: Recievable/
Overview
United States
Crowdfactoring
• Target: Startups and small
businesses/ Projects
• Notable: One of the first
companies to provide an
online peer-to-business
lending platform
• Revenue: Loan origination
fee
• Loan type: Unsecured and
• One of the first companies in America to introduce social lending between individuals
and institutions peer-to-business lending
• Offers solutions i.e. lending opportunities, tools and support strictly for small businesses:
borrowers can choose their level of engagement for example a seasoned borrower with
less engagement requirements will opt for a silver option, whereas those with increased
engagement requirements then they would be better suited for the gold or platinum
options
• With regards to receivables factoring: the account receivables should be greater then
the requested loan
secured personal loans
• ROI: 8%-10%
• Loan types:
– Small Business
Administration
(SBA)loans
– Merchant cash advance
– Receivables factoring
– Fixed Asset Loan
– Crowdfunding
Page 95
Radical Ideas | Practical Implementation

96. About Us
SystemicLogic is a global consulting and research business that
operates from a number of centres around the world. Our
purpose is to solve complex business problems through skilled
and talented people that implement state-of-the-art globally
developed intellectual property. Our clients rely on us to provide
relevant and practical solutions to their problems.
United Kingdom, London
South Africa, Johannesburg
The Old Church
48 Verulam Road
St Albans
HertsAL3 4DH
London
Tel: +44 207 8144 7160
Fax: +44 207 903 5333
Email: info@systemiclogic.net
222 Grosvenor Road
Bryanston
Tel: +27 10 590 3033
Fax: +27 11 706 3161
Email: info@systemiclogic.net
Australia, Melbourne
Level 9
440 Collins Street
Melbourne
Tel: +61 3 9607 1326
Fax: +61 3 9607 1327
E-mail: info@systemiclogic.com.au
Uganda, Kampala
254 Albert Cook Road
Rubaga
Kampala
Tel: +256 705 707
Email: jeff.smukasa@systemiclogic.net
China, Beijing
Tel: +86 136 7132 2954
Email: info@systemiclogic.net
United States, New York
590 Madison Avenue
18th Floor Suite 1800
New York
Tel: +1 212 753 0503
Email: ryan@systemiclogic.net
Radical Ideas | Practical Implementation