Your SlideShare is downloading. ×
0
Future of Crowdfunding in Asia
Future of Crowdfunding in Asia
Future of Crowdfunding in Asia
Future of Crowdfunding in Asia
Future of Crowdfunding in Asia
Future of Crowdfunding in Asia
Future of Crowdfunding in Asia
Future of Crowdfunding in Asia
Future of Crowdfunding in Asia
Future of Crowdfunding in Asia
Future of Crowdfunding in Asia
Future of Crowdfunding in Asia
Future of Crowdfunding in Asia
Future of Crowdfunding in Asia
Future of Crowdfunding in Asia
Future of Crowdfunding in Asia
Future of Crowdfunding in Asia
Future of Crowdfunding in Asia
Future of Crowdfunding in Asia
Future of Crowdfunding in Asia
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Future of Crowdfunding in Asia

531

Published on

EPIC | Asia's First Crowdfunding and Property Investment Expo …

EPIC | Asia's First Crowdfunding and Property Investment Expo

Key note 1: “Future of Crowdfunding in Asia” by Dr Jeffrey Chi

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
531
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
20
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • http://www.kpmg.com/CN/en/IssuesAndInsights/ArticlesPublications/Newsletters/Hong-Kong-Capital-Markets-Update/Documents/HK-Capital-Markets-Update-1312-05.pdf
  • http://www.kpmg.com/CN/en/IssuesAndInsights/ArticlesPublications/Newsletters/Hong-Kong-Capital-Markets-Update/Documents/HK-Capital-Markets-Update-1312-05.pdf
  • http://www.kpmg.com/CN/en/IssuesAndInsights/ArticlesPublications/Newsletters/Hong-Kong-Capital-Markets-Update/Documents/HK-Capital-Markets-Update-1312-05.pdf
  • http://www.kpmg.com/CN/en/IssuesAndInsights/ArticlesPublications/Newsletters/Hong-Kong-Capital-Markets-Update/Documents/HK-Capital-Markets-Update-1312-05.pdf
  • http://www.kpmg.com/CN/en/IssuesAndInsights/ArticlesPublications/Newsletters/Hong-Kong-Capital-Markets-Update/Documents/HK-Capital-Markets-Update-1312-05.pdf
  • http://www.kpmg.com/CN/en/IssuesAndInsights/ArticlesPublications/Newsletters/Hong-Kong-Capital-Markets-Update/Documents/HK-Capital-Markets-Update-1312-05.pdf
  • Transcript

    • 1. FUTURE OF CROWDFUNDING IN ASIA 18 JULY, 2014 Jeffrey C Chi, Ph.D., CFA Vice Chairman (Asia Investments) Vickers Venture Partners Chairman, Singapore Venture Capital & Private Equity Association
    • 2. • Successfully raised money for 2 campaigns in 2013 for new businesses • Tested market for 3rd business, decided to pull project CROWDFUNDING – TESTING THE MARKET
    • 3. • Launched in 2012 via a Kickstarter campaign Raised $300,000 • Pre-sold 2500 watches via kickstarter, since sold 130,000 units • Launched 2nd brand in March 2014. CROWDFUNDING – SEED FUNDING
    • 4. CROWDFUNDING – PRE-SALES
    • 5. TOP CROWDFUNDED BUSINESES June 22, 2014 Star Citizen has surpassed $47m in amount raised
    • 6. • Raised $2.4m via Kickstarter (Sep 2012) • Raised the needed $250k within 4 hours • Raised a total of $91million in crowdfunding / venture money • Sold to Facebook for $2 billion (March 2014)
    • 7. WHAT IS CROWDFUNDING? Using small amounts of money from a lot of people to fund something Source: PWC Crowdfunding – an alternative source of capital
    • 8. BENEFITS OF CROWDFUNDING • Securing funding needed • Demonstrates the viability of a business idea or venture (Proof of concept) • More intimate audience engagement creates a deeper sense of participation with potential customers (pre-marketing) • Crowdsourced ideas for improvements / new features Crowdfunding – the new angel investor?
    • 9. IN 2012, OVER 530 CROWDFUNDING PLATFORMS & US$3B RAISED Source: www.crowdsource.org
    • 10. SOCIAL MEDIA A KEY DRIVER OF CROWDFUNDING • Rate of dissemination • Ability to reach out to a lot more people more quickly than ever before. • Richness of communication • Provides the ability demonstrate a product before it is actually produced Fundamentally changing the way consumers make purchase and investment decisions
    • 11. NUMBER OF VENTURE CAPITAL DEALS BY REGION
    • 12. TYPES OF CROWDFUNDING Source: www.streetwise.co • Lending based crowd funding proliferated through the launch of P2P lending sites (e.g. Prosper in 2006) • Equity based crowd funding held back by regulatory constraints • E.g. General solicitation
    • 13. REAL ESTATE BASED CROWDFUNDING • Direct real estate investments is lumpy • High level of control and transparency but large capital amounts required • Transaction costs may be high • REITs (Real Estate Investment Trust) or Real Estate Funds • More accessible and lower risks as investments are spread across multiple properties • Lack of control over what properties are bought and sold and management costs can be high • Crowdfunding • Can take advantage of low entry levels and ease of investment process • Yet maintain high level of control on which assets to put into portfolio as opposed to relying on a REIT manager • “Best of both worlds”
    • 14. PAVING THE WAY FOR EQUITY BASED CROWDFUNDING • April 2012, President Obama and Congress passed the Jumpstart our Business Startups (JOBS) Act • IMPACT: Source: Fundable
    • 15. JOBS ACT - THE CONTROVERSY • FOR • Facilitates capital formation by emerging growth companies thereby stimulating economic growth and job creation • AGAINST • Removing important investor protections in the federal security laws and thereby enabling fraud • Creates a problem for startups. Later stage venture capital investors may be deterred to participate in companies that have accumulated a “crowd” of smal shareholders Source: Fundable “Naivete is the issue, not fraud. Most angel investors do not make” “No matter how much information you give investors, they will sometimes still make poor decisions” “There are a lot of sophisticated investors who are not accredited investors and this law is good for giving those people the opportunity to participate”
    • 16. REGULATORY ENVIRONMENT IN ASIA • Momentum of crowdfunding too strong to be ignored. • Should be embraced, not ignored • Several countries including Singapore & Malaysia have stated intention to promote crowdfunding to kickstart businesses (already recognize the benefits that crowdfunding brings) • Currently no clear regulations across Asia This provides no clarity for operators and restricted in the way they do business • Regulators cannot afford to “wait and see”, urgently requires rules to be established. Players in the industry need to pro-actively drive the agenda. SVCA willing to participate
    • 17. DR. JEFFREY CHI, CFA 季淳钧博士, CFA JEFF.CHI@VICKERSVENTURE.COM
    • 18. Source: Zero2IPO H1 2013 report July 2013 AFTER 2012, IPO ACTIVITY HAD COLLAPSED • Offshore IPOs stalled after a flurry of activities reducing the confidence of investors in Chinese tech stocks • Jack Ma severing the VIE Structure in relation to Alipay • Corporate governance issues in Chinese companies • Onshore IPOs stalled again due to reform of IPOs. No onshore IPOs from Nov 2012.
    • 19. A BRIEF HISTORY • 2008 Indiegogo launched (enables people to donate funds easily by removing middlemen) • 2008 peerbackers launched (gives contributions in exchange for rewards or perks) • 2009 Kickstarter launched (funding platform for creative projects in return for rewards) • 2011 President Obama unveils the Startup America Initiative • 2012 Fundable (first equity crowdfunding platform to launch in conjunction with the JOBS Act • 2012 President Obama signs JOBS Act into law. • 1884, Joseph Pulitzer through his newspaper New York World raised over US$100,000 from 125,000 people in 6 months to build the pedestal for the Statue of Liberty • 1997, fans of the British rock group Marillion raised US$60,000 to underwrite their US tour • 2003 ArtistShare – first documented crowdfunding site for music • 2005 Kiva – provides individuals the chance to provide small loans to entrepreneurs in poor areas around the world • 2006 Propser – First peer-to-peer lending marketplace in the US • 2006 – The term crowdfunding is coined by Michael Sullivan (Founder of FundaVlog)

    ×