The document discusses equity crowdfunding and provides tips for running a successful crowdfunding campaign. It notes that access to capital is the top obstacle for startups and SMEs in Asia. Equity crowdfunding allows companies to raise funds from many small investors through online platforms. The document outlines Malaysia's new regulatory framework for equity crowdfunding and provides advice on creating an effective crowdfunding page, marketing the campaign through social media, and executing a plan to build momentum and attract early investors.

1. crowdonomic.vc @Crowdonomic Facebook.com/C
EQUITY CROWDFUNDING
1
Winning formulas to a great equity crowdfunding campaign
October 30th, 2014
rowdonomic

2. Introduction: Crowdonomic Media
2
Taking Control of Your FR Destiny
• Mission: Empower Innovators in Asia
using the power of Financial 2.0
• Fin-tech, Full portfolio
• Asia-play
Largest CF in SE. Asia
• Larger than other SEA CFPs
• (SG) ~<10x than int’l CFPs
Innovation is our DNA
• World’s first Telecom-backed CF
platform (Crowdtivate)
• World’s first global CF platform for
projects positively impacting the earth
(WWF/ EarthHour)
Active Regulatory Partner
• Engaging multiple Regulators / Gov’t
agencies across Asia

3. Agenda
3

4. It is a great time to be an Entrepreneur in Malaysia
Malaysia is one of the first countries
to modernize Fundraising Activities
4
A New Regulatory Framework for
Equity Crowdfunding is on its way

5. Why is this important for you? …because efficient
access to Capital is #1 obstacle to growth
5
#1 40%
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

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. Modernization of Fundraising Regulations and
Activities
7
No General Solicitation
Public Offerings = Costly
Disclosures / Prospectuses
Prospectus Exemptions: Limitations
on Advertisement; Investor Types; #
Fundraising: Extremely Difficult and
Restricted Activity
Advertisement Flexibilities
Full use of Web / Social Tools
Template and Standardized FR
Process for Efficiencies
Fundraising: Still Really Difficult Activity
but Equipped with Modernized Tools

8. 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)
Investors: Retail (RM 50k) + Angel (500k)+ Sophisticated Investors (Uncapped)
8
ECF Regulatory Framework – Highlights*
Advertisements: May advertise to the public but ONLY via the ECF platform
DISCLAIMER: This does not constitute any legal or financial advice
(*) 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

9. Agenda
9

10. #1: Use the full power of web, social media and
technology to accelerate the Fundraising process
Publish Offer Page
Access virtual
investor community
10
Acceleration Validation Traction

11. #2: it is a Game Changer for both Start-ups and
Investors
11
Startups
Efficient outreach to
multiple investors via internet
Low – mid digit FRs
Record millions
8 -12 weeks
Average online fundraise period
Investors
Centralized deal
sourcing platform
$1 to 5K
Bite-sized investments to
diversify investment portfolio
Crowdsourced due
diligence community

12. 12
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
#4: Emerging Crowdfunding Verticals

13. We are tackling Common Equity Crowdfunding
Concerns
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
13

14. Agenda
14

15. Equity CF Offer Page – A dedicated fundraising page

16. Content: Building Up Credibility on Your Offer page
16
Board & Team
with relevant
credentials
Endorsement from
fans and industry
experts
Strategic
Partnerships
Attractive
valuation and
desirable exit
IP
Demonstrate
ability to achieve
milestones
Additional Items:
• Business Plan
• Investor Pitch
Deck
• P&L
• Cash Flow
• Balance Sheet

17. • Sell the vision / dream
• Ground the business plan
• Nail the delivery
• Form as important as Content
17
Visual: Supporting Your Offer Page with Video
Do
Don’t
• Be vague
• Be boring
• Be awkward
• Show only the product

18. Team: Assembling a Capable Fundraising Team
18
Charismatic Front
Person
Graphic Design/
Video Person
Social Media
Person
Document and
numbers person
• Media
spokesperson
• Investor
Meetings
• Brand
Ambassador
• Social media
updates
• Site updates
• Answering
enquiries
• Putting
together the
offer page
• Putting
together the
financial
documents
• Designing
visuals
• Creating video
and other
creative assets

19. Are you Ready?
19

20. 20
YOU’RE DOING IT WRONG

21. Create Momentum: Dance Floor Theory
How can you get a crowded dance floor?

22. Create Momentum: Dance Floor Theory
How can you get a crowded dance floor?
You need a proper execution plan to draw in
early supporters.

23. 23
Marketing and activation support a Crowdfunding
Platform will provide
Expected
reach via
platform
Platform
Marketing
Platform Social
Media Updates
Platform Blog
Platform
Newsletters
Membership
Access
Templates
It’s a dual effort

24. 24
Extend your reach with your own execution plan
Expected
reach via
platform
Reach via own
initiatives
Public Relations
Personal Mail
Outs
Media Interviews
Blogger Outreach
Product Demos
Social Media
Investor Meetings
Company Blog
Updates
Awards
Competitions
Site Visit/ Factory
Tour
Awards
Competitions
Offline Events

25. 25
Campaign Execution: Best Practices
Prepare follow
up videos,
creative assets
and regular
campaign
updates
Be quick to
respond to queries
and comments
Show your
appreciation and
thank all your
investors
Contact press only
once you have
obtained some
funding to have a
newsworthy angle

26. www.crowdonomic.vc
• Difficult and Inefficient = > To: New efficient way to do a difficult thing
26
Recap
• Combine with Lead Investors + Conventional best practice
• Secret sauce… Social Media (Distribution) + Democratic Participation
• Promote, Market and Execute…make full use of this New Freedom
• Malaysia – a pioneer market, power to Start-ups

27. 27
READY?
www.crowdonomic.vc

28. Finance Investment Operations Innovation
28
Who We Are
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
North Asia W.Europe
S.E. Asia India UK
Tech
Experience and expertise