2014 Crowdfunding & The Future of Venture Finance by Mila Kyriacou

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  • Perth largesty chasm – even if inv raised, burnt would retreat
    so started investing
    Competitors –pivot-> valuable exciting offering


  • Perth largesty chasm – even if inv raised, burnt would retreat
    so started investing
    Competitors –pivot-> valuable exciting offering


  • Perth largesty chasm – even if inv raised, burnt would retreat
    so started investing
    Competitors –pivot-> valuable exciting offering


  • Perth largesty chasm – even if inv raised, burnt would retreat
    so started investing
    Competitors –pivot-> valuable exciting offering


  • Perth largesty chasm – even if inv raised, burnt would retreat
    so started investing
    Competitors –pivot-> valuable exciting offering


  • Perth largesty chasm – even if inv raised, burnt would retreat
    so started investing
    Competitors –pivot-> valuable exciting offering


  • Perth largesty chasm – even if inv raised, burnt would retreat
    so started investing
    Competitors –pivot-> valuable exciting offering


  • Perth largesty chasm – even if inv raised, burnt would retreat
    so started investing
    Competitors –pivot-> valuable exciting offering


  • Perth largesty chasm – even if inv raised, burnt would retreat
    so started investing
    Competitors –pivot-> valuable exciting offering


  • Perth largesty chasm – even if inv raised, burnt would retreat
    so started investing
    Competitors –pivot-> valuable exciting offering


  • Perth largesty chasm – even if inv raised, burnt would retreat
    so started investing
    Competitors –pivot-> valuable exciting offering


  • Perth largesty chasm – even if inv raised, burnt would retreat
    so started investing
    Competitors –pivot-> valuable exciting offering


  • Perth largesty chasm – even if inv raised, burnt would retreat
    so started investing
    Competitors –pivot-> valuable exciting offering


  • Perth largesty chasm – even if inv raised, burnt would retreat
    so started investing
    Competitors –pivot-> valuable exciting offering


  • Perth largesty chasm – even if inv raised, burnt would retreat
    so started investing
    Competitors –pivot-> valuable exciting offering


  • 2014 Crowdfunding & The Future of Venture Finance by Mila Kyriacou

    1. 1. www.StratticaCapital.com Crowdfunding & The Future of Venture Finance Mila Kyriacou CFO, Cofounder Strattica Capital 25TH July 2014
    2. 2. www.StratticaCapital.com Mila Kyriacou Graduate: Economics / Engineering MBA: Finance A little about me… Vice President trattica Capital CFO & Cofounder Previously:
    3. 3. www.StratticaCapital.com Capital Sources Friends, Fools, Family The Banker The CrowdAngels & VC
    4. 4. www.StratticaCapital.com Crowdfunding Worldwide Source: 2013CF The Crowdfunding Industry Report. Massolution Global crowdfunding volumes
    5. 5. www.StratticaCapital.com Crowdfunding Worldwide trattica Capital ? mila@stratticacapital.com
    6. 6. www.StratticaCapital.com The 4 Types of Crowdfunding Type Funders receive… Financial return Donation - No Reward Tangible rewards Special experiences Lending Repayment of a principal with/without interest Yes Equity Company ownership Capital gain
    7. 7. www.StratticaCapital.com The 4 Types of Crowdfunding Source: 2013CF The Crowdfunding Industry Report. Massolution. Growth in funding volume by crowdfunding model
    8. 8. www.StratticaCapital.com Crowdfunding Types Source: 2013CF The Crowdfunding Industry Report. Massolution. Donation-based crowdfunding activity. Donation | Reward | Lending | Equity
    9. 9. www.StratticaCapital.com Crowdfunding Types • 1884 • $100 000 • 120 000 people Donation | Reward | Lending | Equity
    10. 10. www.StratticaCapital.com Crowdfunding Types • 2008 • $750 000 000 • 3 000 000 people Donation | Reward | Lending | Equity
    11. 11. www.StratticaCapital.com Crowdfunding Types • Consumer facing products • Validation of product-market fit • Pre-sale of a product • Shorter path from a prototype to marketplace Donation | Reward | Lending | Equity
    12. 12. www.StratticaCapital.com Crowdfunding Types Donation | Reward | Lending | Equity
    13. 13. www.StratticaCapital.com Crowdfunding Types Donation | Reward | Lending | Equity • Include a video in your pitch • Have money already committed before you go to the crowd • Be active online • Make sure the price is right • Select a right crowdfunding platform Successful Crowdfunding
    14. 14. www.StratticaCapital.com Crowdfunding Types • Personal loans • Business loans • Asset backed loans Do not finance a start up using debt! Donation | Reward | Lending | Equity
    15. 15. www.StratticaCapital.com 15 VC vs. Equity Crowdfunding Comparison of Traditional VC Model to Equity Crowdfunding Model
    16. 16. www.StratticaCapital.com Crowdfunding Types Positioning of Equity Crowdfunding among other Forms of Capital Formation in Companies’ Lifecycles Donation | Reward | Lending | Equity
    17. 17. www.StratticaCapital.com Geographic Limitations Source: 2013CF The Crowdfunding Industry Report. Massolution
    18. 18. www.StratticaCapital.com 18 Reward vs. Equity Criteria Reward-based Equity based Backer Ownership None owns % of co. Backer Involvement Limited May be advisors/ employees Amount No limits Legal limits Ave $raised Smaller Larger Frequency No limits Limited # raisings/yr Reputation Higher risk Lower risk Financial Disclosure No need to disclose Publicize: • financials • business model Product/Service Consumer Various Tax $raised Tax Payable None Regulations Light Heavy Geography Most countries Few countries
    19. 19. www.StratticaCapital.com Success Rates Source: 2013CF The Crowdfunding Industry Report. Massolution. Funding probabilities for crowdfunding campaigns by model.
    20. 20. www.StratticaCapital.com Median campaign sizes Source: 2013CF The Crowdfunding Industry Report. Massolution. Median campaign sizes in USD across crowdfunding models.
    21. 21. www.StratticaCapital.com Benefits • Reputation boost • Customer validation • Audience engagement / Feedback • Possible bridge to other types of financing
    22. 22. www.StratticaCapital.com 22 Risks & Barriers • Reputation risk • IP protection • Donor exhaustion • Financial disclosure
    23. 23. www.StratticaCapital.com Questions! Crowdfunding & The Future of Venture Financing ? mila@stratticacapital.com

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