Crowdfunding for SMEEFMA Retail Credit Conference20-21 june 2013Nicolas Guillaume – Financial Breakthroughnicolas.guillaum...
Agenda• Key points• Global Market• SME Focus• FriendsClear’s case• Feedback• Marketing• Regulation• US Crowdfunding Act• C...
Key Points• Free and extended access to projects to befunded by investors (funders)• Direct choice of funding by investors...
Key Points (detailed)• Free and extended access to projects to be funded by investors (funders)– Projects individualy iden...
Key Points (continued)• Each point very differenciating from traditionalfinance product• Social Media (info disclosure, vi...
Global MarketSource : Massolution, May 20126780 M$ loans originated(2012)EFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - ...
SME Focus7Kickstarter Babyloan FriendsClear FundingCircleCréditAgricoleSmartangelsFunding Type Reward Loan withoutinterest...
Kickstarter888$ / funderhttp://www.kickstarter.com/projects/1351910088/3doodler-the-worlds-first-3d-printing-penRewardEFMA...
Babyloan968€ / funder (82 funders)Loan without interest (cf Kiva)Nicolas Guillaume – FriendsClear / FinthruEFMA CONFERENCE...
FriendsClearEFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam 10Requested : 8.000€307€ / funder(26 funders)Loan w...
Funding Circle112.083£ / funder (24 funders)Loan with interestEFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
Smartangels1215.000 € / funder33 fundersEquityEFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
FriendsClear’s case• Professional Projects funded by loan (3K€-25K€, 3years, 8,5% fixed rate + 4% flat fees)• Selected & f...
FriendsClear Regulation frictions• Regulator remarks (Quiet period)– No discretionary refusal for loan– Direct selection– ...
FriendsClear Feedback• Projects are the product• Very attractive product (for funders, project owners,media)• 2 levels of ...
Clients profiles16FundersProject owners• Emerging phase projects• Non standard profiles (young, withoutexperience, profess...
Crowdfunding Regulation• Collecting money : eMoney, KYC, AML• Client qualification & protection : MIFID /PRIPS, Prospectus...
US Crowdfunding Act• Exemption 2000$/year / funder• Funding Portal(Middleman)18Source : Forbes,Sept 2012EFMA CONFERENCE – ...
Competition vs Complementarity• High involvement product for special needsand segments• Small amount• Can be « packaged » ...
Thanks for your attention20EFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
Questions21EFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
Nicolas GuillaumeFinancial Breakthroughnicolas.guillaume@finthru.comBlog : http://nicolasguillaume.fr/Twitter : http://twi...
Upcoming SlideShare
Loading in …5
×

Crowdfunding for SME by FriendsClear

1,194 views

Published on

Crowdfunding for SME by FriendsClear
EFMA Retail Credit Conference 20-21 june 2013 Amsterdam
Complementarity or Competition with Banks

Published in: Economy & Finance, Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,194
On SlideShare
0
From Embeds
0
Number of Embeds
160
Actions
Shares
0
Downloads
8
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Crowdfunding for SME by FriendsClear

  1. 1. Crowdfunding for SMEEFMA Retail Credit Conference20-21 june 2013Nicolas Guillaume – Financial Breakthroughnicolas.guillaume@finthru.comBlog : http://nicolasguillaume.fr/Twitter : http://twitter.com/NicolasMaxMobile : +33 6 19 98 57 65Financial BreakthroughBlog : http://finthru.com/Twitter : http://twitter.com/finthru1EFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
  2. 2. Agenda• Key points• Global Market• SME Focus• FriendsClear’s case• Feedback• Marketing• Regulation• US Crowdfunding Act• Competition vs Complementarity2EFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
  3. 3. Key Points• Free and extended access to projects to befunded by investors (funders)• Direct choice of funding by investors• Full Transparency3EFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
  4. 4. Key Points (detailed)• Free and extended access to projects to be funded by investors (funders)– Projects individualy identified and described (information disclosure)– Defined amount requested with predefined use of funds– Projects reviewed by platforms– Usually through Internet• Direct choice of funding by investors– Limited amount by investor– Directly assigned to a project– Assessment carried by each investor– Large number of investors requiring a collective approval (collective intelligence)• Full Transparency– Amounts funded– Amounts collected and fundings granted– Returns4EFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
  5. 5. Key Points (continued)• Each point very differenciating from traditionalfinance product• Social Media (info disclosure, virality, interactivity,internet accessibility)• Funding is not the point– Multiple funding models : reward, no returnallocation, loan without interest, loan with interest,equity, bond– Third party (direct funding) or own account (mirroringfunding)– Funding, Refunding, Additional funding5EFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
  6. 6. Global MarketSource : Massolution, May 20126780 M$ loans originated(2012)EFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
  7. 7. SME Focus7Kickstarter Babyloan FriendsClear FundingCircleCréditAgricoleSmartangelsFunding Type Reward Loan withoutinterestLoan withinterestLoan withinterestLoan withinterestEquityProject sample 3Doodler3D Plasticmelted pencil2,3M$ (30K$requested)Tilagavady &DjeasridarIndianrestaurant5K€MatérielForestierWoodcutter8K€Score a Hole inOneEventsOrganization50K£Eolienne LouéWindmill1,2M€ (on atotal of 17M€)SentineloMobileapplication500K€Funders Nb 26.457 82 26 24 250 33Av. funderamount88 $ 68 € 307 € 2.084 £ 4.800 € 15.000 €FundercounterpartDeliveryPromiseFundingAccount(mirroring)Term BankAccount (withsecurities)Loan part Term BankAccount(mirroring)Ad hoc OfferEquityRisk DeliverydefaultMicroFinanceInstituteDefaultLoan default Loan default No risk •Operation•Valorization•LiquidityEFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
  8. 8. Kickstarter888$ / funderhttp://www.kickstarter.com/projects/1351910088/3doodler-the-worlds-first-3d-printing-penRewardEFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
  9. 9. Babyloan968€ / funder (82 funders)Loan without interest (cf Kiva)Nicolas Guillaume – FriendsClear / FinthruEFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
  10. 10. FriendsClearEFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam 10Requested : 8.000€307€ / funder(26 funders)Loan with interestNicolas Guillaume – FriendsClear / Finthru
  11. 11. Funding Circle112.083£ / funder (24 funders)Loan with interestEFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
  12. 12. Smartangels1215.000 € / funder33 fundersEquityEFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
  13. 13. FriendsClear’s case• Professional Projects funded by loan (3K€-25K€, 3years, 8,5% fixed rate + 4% flat fees)• Selected & funded by internauts through adedicated crowdfunding account with TermDeposit (interest rate 4,5%) mirroring projects(and guarantee)• Money collecting, account management and loanorigination performed by a banking partnerCredit Agricole• Projects reviewed (FriendsClear) and bankingcontrols (Credit Agricole)13EFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
  14. 14. FriendsClear Regulation frictions• Regulator remarks (Quiet period)– No discretionary refusal for loan– Direct selection– Risk fully supported by funders• Modified model– Discretionary refusal for loan– « Projects Basket » : choice of a project into a « basket » ofprojects– Capital guarantee by Credit Agricole• Risk on interest not capital (4,5% default rate OK)• Double selection process not convergent (timing cycle, criterias,segment addressed) => not scalable14EFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
  15. 15. FriendsClear Feedback• Projects are the product• Very attractive product (for funders, project owners,media)• 2 levels of client involvement– (Non financial) « contribution » (vote, recommend, virality,comment)– Funding• 2 models of virality– Ad hoc communities (Social Media)– Recurrent funding communities• High impact of funding tools and regulation (clientcommunication, legal, risk management,…)15EFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
  16. 16. Clients profiles16FundersProject owners• Emerging phase projects• Non standard profiles (young, withoutexperience, professional change,…)• Small size projects (commerce ambulant,service à la personne, internet)• Assessment problem projects (innovation,unknown indutry)• Scoring flag projects (excluded industries,unfilled ratios)• Risky projects (startup, retournement,...)• No accounting or bank relationship history• Equity « Funding gap » (100K€ to 2 M€)• Bank reluctance• Internet based quick and packaged (lesspaper) process => not in FriendsClear’scase• Wide client profiles diversity• Motivation• Project support• Active selection• High yield• Transparency / Traceability• « Power users »• Favored segment : experiencedexecutives or managers closed toretirement• Time• Money• ExpertiseEFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
  17. 17. Crowdfunding Regulation• Collecting money : eMoney, KYC, AML• Client qualification & protection : MIFID /PRIPS, Prospectus• Middle-man : eMoney, Broker, ?• Funding tools : Prospectus (equity), Loan,…• Regulation is an issue but not a problem(except if you are a bank)17EFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
  18. 18. US Crowdfunding Act• Exemption 2000$/year / funder• Funding Portal(Middleman)18Source : Forbes,Sept 2012EFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
  19. 19. Competition vs Complementarity• High involvement product for special needsand segments• Small amount• Can be « packaged » to be retailed bytraditional banks• Much more complementarity thancompetition19EFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
  20. 20. Thanks for your attention20EFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
  21. 21. Questions21EFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam
  22. 22. Nicolas GuillaumeFinancial Breakthroughnicolas.guillaume@finthru.comBlog : http://nicolasguillaume.fr/Twitter : http://twitter.com/NicolasMaxMobile : +33 6 19 98 57 65Financial BreakthroughBlog : http://finthru.com/Twitter : http://twitter.com/finthruRessources :Blog : http://nicolasguillaume.fr/Twitter : http://twitter.com/NicolasMaxCours Social banking & Fin Part : http://fr.slideshare.net/NicolasMax/2012-cours-social-banking-prt-participatif2222Paternité-Pas dUtilisationCommerciale-Pas de Modification2.0 Francehttp://creativecommons.org/licenses/by-nc-nd/2.0/fr/EFMA CONFERENCE – RETAIL CREDIT 20-21June 2013 - Amsterdam

×