This document provides an overview of social-based funding and crowdfunding trends. It discusses various crowdfunding models like crowdlending, crowdfactoring, and crowdinvesting. It also tracks the development of crowdfunding platforms and regulations over time. Additionally, it examines how traditional banks are reacting to crowdfunding and considers future trends in peer-to-peer lending and crowdfunding.
1. Social-based 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. 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
3. 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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4. 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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5. Tracking the development of Crowdfunding
UK band Marillion is
funded by US fans to
tour ($60 000)
Spring Street
Brewery launches
the first Internet IPO
US intensifies
lobbying of congress
to pass CrowdFundin
bill
Australian Small
Scale Offerings
Board (ASSOB)
allows general public
to invest
2003
SEC issues a
ArtistShare is the first
release allowing
successful platform
companies to post
for fans to pre-fund
their public offerings
albums of popular
online
bands
Regulation
Funding circle
launches in the UK
The Term
“Crowdfunding” is
coined
Direct IPO platform
lets the general
public invest directly
in small public
offerings
1996
Pledgie and
Sellaband Start
2006
IndiGoGo is
launched for films
2007
Grameen Bank
founder Muhammad
Yunus awarded
Nobel Prize
2008
Congress passes
JOBS ACT
RocketHub is
launched
2009
Kickstarter is
launched
Regulation
exemption for people
investing within a
200 mile radius of
the company
2010
2011
2012
Patrick McHenry
authors
Crowdfunding Bill in
the House of
Representatives
Platforms
Event
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2013
6. The development of various Crowdfunding platforms
Est.
Total Funding Size
in ($ Million)
2003: First
Donation based
platforms
(Artistshare)
2004:
Crowdinvesting
platforms are
launched
(Secondmarket)
2005: First P2P
Microlender
(Zopa; Kiva.org)
2006:
Crowdinvesting
platform (ASSOB)
2008: Rewards
based platforms
(indiegogo)
2003
2004
2005
2006
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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Radical Ideas | Practical Implementation
2013
7. 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
8. 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
Radical Ideas | Practical Implementation
9. 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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10. 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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11. 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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12. 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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13. What are the future trends in Crowdfunding?
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15. 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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16. World wide funding figures 2012
Image courtesy of statista.com
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17. Sources of financing for startups
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18. 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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19. 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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20. Period and funding
Average campaign timeframes
Paid-out funds: reward & donations based
Weeks
Revenue by industry recipients, 2011
Page 20
Source: Crowdfunding Industry Report – May 2012
Crowdsourcing LLC
Paid-out funds: equity based
Radical Ideas | Practical Implementation
22. 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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Radical Ideas | Practical Implementation
23. 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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Radical Ideas | Practical Implementation
24. 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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25. Key thoughts
• Headquarters: San
Francisco, California
• Re-launched: 2009
• Rate model: Pre-set
interest rate based on credit
scoring
• Revenue: Loan origination
Prosper
Overview
• One of the most well-known P2P lenders in the market
• Leverages the power of the community to facilitates lending transactions between
lenders and borrowers through their web platform
• Prosper administers the lending process including payments, collection and interest
back to investors
fee & investors annual
service fee
• Changed its business model in December 2010 from auction-style model to pre-set
• Loan type: Unsecured &
• Also provides a second market offering for Note Trading, in cooperation with CoFolio
secured personal loan
• Funding volume to date:
rates on loans based on borrowers credit-risk
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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Radical Ideas | Practical Implementation
26. 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
27. 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
28. Key thoughts
• Headquarters: London,
England, UK
• Launched: 2005
• 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:
Zopa
Overview
• 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
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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Radical Ideas | Practical Implementation
29. 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%
• Loan types:
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
– Consolidate debt
– For general purchases
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Radical Ideas | Practical Implementation
31. 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
35. 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
36. Level of Community Interaction
Relative positions of key players
Level of Business Support
Radical Ideas | Practical Implementation
37. 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
38. South African funding platform user experience comparison
Registration process
The registration process failed when the
site failed to send me a confirmation email
but the process is very detailed with
questions around previous investment
activity.
Long registration process with multiple
setting around who can view which
information on your investment profile. No
investment screen questions.
An “Error Loading Feed Data” messages
keeps appearing. No communication on
confirmation email being sent and once I
followed the confirmation email I still
couldn't log in.
No Registration process, simply log in with
a social network account, either Google
plus or facebook. Very easy but with no
investment screening.
1
3
5
After initial registration we have reviewed the
site again which is now “Under review”.
The site is setup to mimic that of facebook with
a very similar profile management concept and
you can ‘friend’ other investors. 8 out of 27
projects have been fully funded with others
showing little or no funding.
1
6
1
No real logical flow to the website and
investment opportunities can only be viewed
once someone is registered. Investments were
listed but no detail is provided without clicking
through.
1
6
8 Projects in total on the platform with no view
as to any success stories. Very limited funding
activity is visible on the platform.
5
10
Bad
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Site experience
Good
Radical Ideas | Practical Implementation
39. South African funding platform user experience comparison
Registration process
Registration is only available to
entrepreneurs and not at all for investors.
AngelHub makes use of various other
funding platforms such as gust to identify
opportunities.
There is no registration process, cant really
be considered a Crowdfunding option but
has a variety of services that are aimed at
providing investment opportunities
Corculture already has a defined list of
investors which doesn’t really make it a
crowd based platform but entrepreneurs
can register and apply for funding.
1
2
1
2
Only informational site, and even the
information is very high level with no real depth
as to what the opportunities are.
Informational site, complex, difficult to
navigate and no clear direction.
Informational site that has no investment
opportunities listed. Merely used as a way to
make people aware of their offering.
10
Bad
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Site experience
Good
Radical Ideas | Practical Implementation
3
2
2
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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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
Page 44
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
Page 45
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
Page 46
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
Page 47
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
Page 48
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
• Notable: Companies can
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.
upload a comprehensive
pitch with supporting
documents
• Various regulatory concerns
have seen little activity on
the platform
Page 49
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
Page 50
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
Page 51
Radical Ideas | Practical Implementation
52. Key thoughts
• Headquarters: United
Kingdom, Exeter
• Launched: January, 2010
• Classification: Equity/
Crowdinvesting
• Target: Startups/ SMMEs
• Field of expertise: Equity
based financing and capital
access
• Notable: ₤8,708,000 total
CrowdCube
Differentiator
Business owners often relish the help and support of an extended community of
stakeholders and investors can offer their services to new businesses
Overview
• 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
• Field of expertise: Active
Overview
Francisco, California
Crowdinvesting
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
Page 53
Radical Ideas | Practical Implementation
54. Key thoughts
• Headquarters:
Stellenbosch, South Africa
• Launched: November,
2012
Crowdinvest
Differentiator
Potential investors can view, share, LIKE, or invest
Overview
• Classification: Equity/
• People come together and invest modest amounts in a specific high value investment
• Target: Startups/ SMMEs
• Field of expertise: They
• The crowdinvest business model is similar to the successful “stokvels” or cooperatives
Crowdinvesting
will validate the various
opportunities and allow
individuals to invest from as
little as R1 across various
fields
opportunity
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
Page 54
Radical Ideas | Practical Implementation
55. Key thoughts
EquityNet
• Headquarters: United
Differentiator
• Launched: December,
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
States of America,
Fayetteville, Arkansas
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
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
• Notable: 12,000 individual
investors with
$207,460,600 in funds
raised
Page 55
Radical Ideas | Practical Implementation
56. Key thoughts
• Headquarters: London,
United Kingdom
• Launched: January, 2010
• Classification: Equity/
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.
Seedrs
Differentiator
The Seed Enterprise Investment Scheme (SEIS) provides massive tax reliefs to individual
investors who purchase new shares in very early-stage companies.
Borrowers have access to mentors
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
Page 56
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
Page 57
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
Page 59
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 offers the services of a traditional exchange, for private
companies
• 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
•
•
•
•
•
•
•
•
•
•
Page 61
Radical Ideas | Practical Implementation
62. Key thoughts
• Headquarters:
Netherlands, Utrecht
• Launched: 2011
• Classification: Equity/
Crowdinvesting
• Target: Startups/ SMMEs
• Incentive: The equity the
borrower stands off will
come with advice from the
investors
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
Overview
• Symbid enables entrepreneurs to receive equity financing from large groups of people
• Symbid will offer a collaborative online environment where believers and entrepreneurs
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
• Incentive: The equity the
Invsestment opportunities can only be viewed once the investor has been approved
Africa
Crowdinvesting
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
Page 63
Radical Ideas | Practical Implementation
65. Key thoughts
• Headquarters: United
States of America
• Launched: January, 2008
• Classification: Debt/
Crowdlending
• Target: Startups/ Projects
• Field of expertise: Social
media and analytics. Stats
show our system generates
over 300% more social
media exposure compared
with regular Facebook
sharing
FundRazr
Differentiator
• advanced social media technology helps our customers’ campaigns rise above the noise
on Facebook and Twitter.
Overview
• 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
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
Page 67
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
Page 68
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
Page 72
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
Page 73
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
Page 74
Radical Ideas | Practical Implementation
75. Key thoughts
Funding Circle
• Headquarters: United
Differentiator
• Launched: August 2010
• Classification:
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
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
Page 75
Radical Ideas | Practical Implementation
76. Key thoughts
• Headquarters: Leeds,
England, UK
• Launched: 2011
• 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
Rebuilding Society
Differentiator
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
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
Page 76
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
Page 77
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
Page 78
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
Page 80
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
Page 81
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
Page 82
Radical Ideas | Practical Implementation
84. Key thoughts
• Headquarters: Nairobi,
Kenya
• Launched: 2011
• Classification: Recievable/
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
M-Changa
Differentiator
The entire model is SMS driven and all traditional activities can be performed using
simple basic command key words vie SMS
Overview
• 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.
Page 84
Radical Ideas | Practical Implementation
85. Key thoughts
RocketHub
• Headquarters: United
Differentiator
• Launched: 2010
• Classification: Recievable/
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
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
Page 85
Radical Ideas | Practical Implementation
86. Key thoughts
• Headquarters: San
Francisco, California
• Launched: 2008
• Classification: Recievable/
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
Differentiator
IndieGoGo is available internationally, while Kickstarter requires a U.S.bank account. Non
Profit companies can register for reduced fees
Overview
• 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
Page 86
Radical Ideas | Practical Implementation
87. Key thoughts
CrowdFunder
• Headquarters: United
Differentiator
• Launched: January, 2010
• Classification: Recievable/
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
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
Page 87
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
Page 88
Radical Ideas | Practical Implementation
89. Key thoughts
• Headquarters: United
States of America
• Launched: January 2010
• Classification: Recievable/
Crowdfactoring
• Target: Startups
• Field of expertise:
Investment and startup
recruiting
• Notable: Donald trump is
FundAnything
Differentiator
There is no cost involved in setting up a project and there are no restrictions as to what
you can raise funds for
Overview
• FundAnything is a fast, easy way to raise money online
• Individuals or groups can create campaigns that highlight their personal stories or
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
Page 89
Radical Ideas | Practical Implementation
90. Key thoughts
• Headquarters: Manhattan,
New York, United States
• Launched: 2008
• Classification: Recievable/
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
Differentiator
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
Overview
• 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
• Classification: Recievable/
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
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
• Headquarters: Cambridge,
United States
• Launched: 2010
• Employees: 50 – 100
• Registered users: 180
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
Quirky
Differentiator
The world influences their business in real-time, and they share their revenue directly
with the people who helped them make successful decisions
Overview
• 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
• Classification: Recievable/
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
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
• Headquarters: France
• Launched: 2011
• Classification: Recievable/
Crowdfactoring
• Target: Startups/ Projects
• Incentive: Various rewards
are promised to investors
based on the amount they
are willing to provide
Kiss Kiss Bank Bank
Differentiator
Dedicated to creativity and innovation projects only
Overview
• Projects are run on the All or Nothing model
• If clients reach or outreach their objectives, they will receive the amount they’ve
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
• Headquarters: Louisiana,
United States
• Launched: 2010
• Classification: Recievable/
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
Rebirth Financial
Differentiator
Dedicated to providing loans and services to small businesses based on different level
packages/ options
Overview
• 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