Crowdonomic presenting at the Malaysian Institute of Accountants Crowdfunding Seminar on 28th January 2015 in Kuala Lumpur

1. EQUITY CROWDFUNDING
1
MIA Crowdfunding Seminar
January 28th, 2015
crowdonomic.vc @Crowdonomic
Facebook.com/
Crowdonomic

2. 2
Crowdonomic Overview: Largest Crowdfunding
Platform in SE. Asia
Business Summary
• Launched in Jan. 2013
• Fin-Tech business
• Full Crowdfunding (CF) portfolio
• Asia-play
Performance
• Quarterly growth rate: > +40%
• Internationally competitive
• Industry pioneers / Thought Leaders
Platforms and Collaborations
• Own platforms
• Crowdtivate – Starhub collaboration
• EarthHourBlue – WWF Global platform
• Strategic Advisory + Ops know-how
Organization
• Fin-Tech experts
• SG, MY – building in Indonesia
• Respected Shareholder and Advisory
group

3. 3
A class team with >30 years fin/tech experience
Senior
Consultant
Asia Strategy
Lead
MBA BA. Law
Senior
Consultant
Interest rate
Trader MBA Engineering
Reona Shimada
Co-founder & CEO
Nicola Castelnuovo
Co-founder & CCO
S.E. Asia
Innovation
S. Korea
Finance
China
M&A
South Asia
Tech
Japan
Strategy
UKS.E. Asia India
Tech
W.EuropeNorth Asia
Finance Operations InnovationInvestment
Experience and expertise

4. Agenda
4

5. Your Issue: Efficient Access to Capital is #1 Obstacle to
Growth
5
of Micro-SMEs (Start-ups+SMEs) in Asia say access
to finance is their largest obstacle to growth
Source: IFC/ Worldbank Enterprise Survey 2006-10; World Bank GDP 2008 - 2010
40%#1

6. Crowdfunding… This is Finance 2.0
What it is: Crowdsourcing for
venture capital
How it Works: Fundraising accelerated by the power of social
media and harnessing the wisdom of the crowds
Fill standard
offer templates
Publish Online
Advertise via
social media
Access virtual
investor community
Reach $ target
Grow your
business
Smaller amounts of money from
many people to reach higher targets
6

7. Publish Offer Page
Access virtual
investor community
7
Acceleration Validation Traction
ECF: Fundraising accelerated by the full power of
web, social media and technology

8. It will change how Start-ups raise Venture Financing
8
Efficient outreach to
multiple investors via internet
Startups
Low – mid digit FRs
Record millions
8 -12 weeks
Average online fundraise period

9. 9
Technology Consumer/Retail Real Estate Fund
• MedTech
robotics firm
• Raised S$4.2 M
on OurCrowd
• IPO’d receiving
S$46.2 M in net
proceeds
• F&B Chain in
UK
• Raised S$4.3M
on CrowdCube
• Pool of 749
investors –
accredited and
retail
• Crowdfunding
for a hotel in
Palm Springs
• Raised S$1.9M
on RealtyMogul
• Pool of 85
accredited
investors
• Prolific early-
stage venture
fund
• Crowdfunding
$100M fund
with SeedInvest
Emerging Crowdfunding Verticals

10. No reported cases of
Fraud
Shareholders can be
bundled up into a
vehicle
Investors are also chosen;
Use lead investors to
inform market
You can control the level of
information disclosure
“I’ll be stuck with managing
Thousands of Shareholders (and
forced to IPO)!”
“High Risk of Fraud”
“Competitors will steal all of my
information”
The Market will be over-flooded
with NVA Capital creating a
bubble
Many concerns and challenges are being addressed
as the industry evolves
10

11. Agenda
11

12. What if you invested today in a startup…
12

13. …that would one day be worth $200 billion
13

14. Malaysia is home to high growth startups
14
Anthony Tan, Founder and CEO of Grab Taxi
Funding Rounds
• $15M – May 2014
• $65M – Oct 2014
• $250M – Dec 2014
Traction
• Dominating
Southeast Asia’s
taxi app space in 2
years
• 2.5 million
downloads
• 3 taxi bookings
made every second

15. …but startup investing has been limited to
the top 1%
15
1. Access to deal flow of high quality startups is typically
limited to professional investors
2. Regulations prohibit startups from advertising their
fundraising to the greater public
3. Not everyone who has investable capital can invest in
startup due to minimum ticket size required

16. Platforms give investors a new
way to build a startup portfolio
Without an online platform,
building a portfolio is time
consuming
ECF will be a game changer for investors
16
Easily make bite sized
investments in high quality
startups to diversify portfolio
Centralized sourcing platform
with transparent due diligence
process
Access to industry experts and
follow experienced co-investors
Need to build up reputation to
access competitive investments
Time consuming to find and
assess startups to invest in
Need extensive knowledge in
industry you are investing in

17. What’s the upside to startup investing?
Case Study: Rewalk
Equity Crowdfunding:
investors put in $3.39 M
for 5.4% ownership
Return: 300%-500% in
14 months*
17
• Invest in the next big thing before it becomes big
• Potential to get disproportionate returns
Source:
h4p://www.crowdability.com/arAcle/detail/912/116-­‐returns-­‐in-­‐only-­‐5-­‐hours-­‐peanuts

18. 18
Invest in scalable
companies that
have potential to
achieve returns
of 20x in 5-8
years
Look for founders that
can sell and build,
and have these
qualities:
intelligence, energy,
integrity
If you don’t have
the expertise, invest
with experienced
angels who do
Invest in an industry
you know and
understand well
How to choose which startups to invest in?
INDUSTRY
CROWD
WISDOM
SCALE
TEAM

19. How much should you invest?
19
No more than 10% of your investable assets. Balance
with conservative, lower risk investments.
Don’t invest more than you would be comfortable losing
Non-Professional Investors can invest up to RM 5,000 per
company*
(*) Proposed regulations pending parliamentary approval

20. Agenda
20

21. 21
All major markets in Asia are now at various stages of
implementing CF targeted legislation
Countries in Asia debating Equity CF
regulatory frameworks New Zealand Live Apr. 2014 – Equity / Debt CF
Malaysia Target Q2/Q3 2015 – Equity CF
Japan Target mid-2015 – Equity CF
India Proposal review – PCP* ended
Australia Proposal review – CAMAC
Singapore Under review - TBD
China Under review - TBD
Hong Kong N/A
Thailand SEC Public Consultation Paper
released in December 2014
Source: Crowdonomic Analysis; Competitive Intelligence; Literature search
* PCP: Public Consultation Process

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What to expect: ECF Regulatory Framework
(*) Note: Contents in this page are based on SC ECF Public Response Paper and they are still pending parliament final
approval. Source: http://www.sc.com.my/wp-content/uploads/eng/html/consultation/140925_PublicResponse_2.pdf
Who: All Malaysia incorporated private companies + SC Registered Micro Funds
How much: Private Companies (RM 3 mn / RM 5 mn) + Micro Funds (uncapped)
Offer: Primary (new share sale); Secondary (existing shares; 2 wks per 6 months)
Advertisements: May advertise to the public but ONLY via the ECF platform
Investors: Retail (RM 50k) + Angel (500k)+ Sophisticated Investors (Uncapped)

23. 23
Recap
• Secret sauce… Social Media (Distribution) + Democratic Participation
• Fundraising: Difficult and inefficient = > ECF: New way to do a difficult
thing
• Malaysia – a pioneer market, power to Start-ups
• Combine with Lead Investors + Conventional best practice
• Promote, Market and Execute…make full use of this New Freedom
www.crowdonomic.vc

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Contact Us
www.crowdonomic.com!
!
@crowdonomic!
!
www.facebook.com/crowdonomic!
Leo Shimada (Co-Founder / CEO) –
leo.shimada@crowdonomic.com /
(65)82236018!
Nicola Castelnuovo (Co-Founder / CCO)–
nicola.castelnuovo@crowdonomic.com /
(65)90056541!