Fundraising as the             Main Entrepreneur’s Problem                                                 Vasily Ryzhonko...
Questions to answer          1. What is the main bottleneck in startups funding?          2. How much venture and angel ca...
Agenda                  Entrepreneurship Statistics                       Main Entrepreneurs’ Problems                    ...
Background         CrowdSynergy is             Virtual Business Incubator and Innovation Ecosystem Platform         Founde...
www.crowdsynergy.com   5
Number of Entrepreneurs in the                 World (2010 -> 2011)                 250 million early-stage entrepreneurs*...
Number of Entrepreneurs in the                 World (2010 -> 2011)      388 million entrepreneurs in 2011 included:      ...
Number of Entrepreneurs in the               World (2011 -> 2012 -> 2013)                           Total entrepreneurs   ...
www.crowdsynergy.com   9
Main Problems of Early-stage*                      Entrepreneurs                   Access to capital**                   A...
Is access to capital one of the most              important problems?              Let’s consider only one problem (percei...
www.crowdsynergy.com   12
Why (Venture) Capital is important? –    WHAT of the “Access to Capital” problem    Venture capital has enabled the United...
Capital Sources         Capital sources vary depending on the venture’s stage of         development, economic and financi...
Company Funding Stages                   (traditional breakdown) –              HOW of the “Access to Capital” problem    ...
Capital Funding Stages (explained) –     HOW of the “Access to Capital” problem       Seed or start-up stage ($0-1M)      ...
Who is funding Entrepreneurial                    Start-up Companies? –            WHO of the “Access to Capital” problemF...
Capital Sources –      WHO of the “Access to capital” problem Source: CrowdSynergy Analysis, 2012       Entrepreneurship  ...
Capital Sources –  3 Main Pillars for Early-stage EntrepreneursSum of $31,27B reaches entrepreneurs (10% of available)    ...
www.crowdsynergy.com   20
Venture Capital Statistics Worldwide,                     2011   Venture Capital raised in 2011- $18.7B   Venture Capital ...
Venture Capital Investments,                           2005-2011                                                          ...
Venture Capital –        Private Equity is a Cyclical Business          US buyout deal value (Bain, 2011)                 ...
Characteristics of Venture Capital                   Funds & Firms - 1              Professional, institutional managers o...
Characteristics of Venture Capital                  Funds & Firms - 2             Venture capital is more than money:     ...
Characteristics of Venture Capital                  Funds & Firms - 3             Yet active engagement (which is business...
What venture capital firm looks for?              Management team (perfect track record?)              Concept and Busines...
www.crowdsynergy.com   28
Angel Capital Statistics Worldwide,                        2011      Angel Capital invested:          $22,5B; 66,230 ventu...
Characteristics of Angel Capital                    Investment                   Characteristics               •    Seek s...
What are Additional Screening Factors to        Get Capital from Angels and VCs?              Bureaucracy              Tim...
Only 1% of entrepreneurs gets funding –        WHY of “Access to capital” problem                                         ...
www.crowdsynergy.com   33
Demand for Capital from                          Entrepreneurs Worldwide      20 million projects have not received fundin...
Supply of Capital from Angels and          VCs Worldwide (just to remind…)      Sum of $31,27B reaches entrepreneurs (10% ...
www.crowdsynergy.com   36
Crowdfunding is…    Small Money, Large Crowd    JOBS act in USA as manifesto for private investors in 2012    No gatekeepe...
Why Crowdfunding?      Faster go-to-market periods (the less time – the better for a project*)      Same access to informa...
Crowdfunding Models              Equity-based (15% of total CFPs*)              Donation-based (28% of total CFPs)        ...
Crowdfunding Models       Entrepreneurship    Main Problems of   Capital Availability in   Fundraising through            ...
CrowdFunding Market and Trends:               Crowdfunding Revenue Growth                                                 ...
CrowdFunding Market and Trends:       Growth in Number of CFPs by Category                                                ...
CrowdFunding Market and Trends       Entrepreneurship   Main Problems of   Capital Availability in   Fundraising through  ...
CrowdFunding Market and Trends       Entrepreneurship   Main Problems of   Capital Availability in   Fundraising through  ...
Householding Savings Ratio in the               World, 1982 - 2012                                                        ...
CrowdFunding for Entrepreneurs                  Statistics 2012      536 Platforms          15% have equity-based model   ...
Is it enough just to have                                crowdfunding?      Simple answer is No, because:          We need...
www.crowdsynergy.com   48
CrowdSynergy as a                          Virtual Business Incubator      We act in a virtual Internet space , not in phy...
CrowdSynergy as a      Platform for Innovation Ecosystems         For entrepreneurs:             Get financing and access ...
CrowdSynergy Services and Solutions       Entrepreneurship   Main Problems of   Capital Availability in   Fundraising thro...
Life Cycle of Typical Startup (with and       without CrowdSynergy services)       Entrepreneurship   Main Problems of   C...
CrowdSynergy Services and Solutions       Entrepreneurship   Main Problems of   Capital Availability in   Fundraising thro...
CrowdSynergy Services and Solutions      While other players try to screen and reduce their risks we build a      system w...
About CrowdSynergy       Entrepreneurship    Main Problems of   Venture Capital in the   Fundraising through              ...
CrowdSynergy                                                      Vasily Ryzhonkov                                        ...
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Fundraising as Main Problem for Entrepreneur 2012

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1. What is the main bottleneck in startups funding?
2. How much venture and angel capital do we have available in the world? What is the demand for it?
3. Do all early-stage entrepreneurs have sufficient access to capital?
4. Could we change situation with financing not 1% of entrepreneurs, but more? If yes, how?

These questions and many others have been answered in current presentation. Careful analysis and research of VC industry have been done to guide audience through the early-stage entrepreneurs' main problem - ACCESS to CAPITAL.

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Fundraising as Main Problem for Entrepreneur 2012

  1. 1. Fundraising as the Main Entrepreneur’s Problem Vasily Ryzhonkov December, 2012 www.CrowdSynergy.com@ Copyright 2012 CrowdSynergy (www.crowdsynergy.com) 1
  2. 2. Questions to answer 1. What is the main bottleneck in startups funding? 2. How much venture and angel capital do we have available in the world? What is the demand for it? 3. Do all early-stage entrepreneurs have sufficient access to capital? 4. Could we change situation with financing not 1% of entrepreneurs, but more? If yes, how?www.crowdsynergy.com 2
  3. 3. Agenda Entrepreneurship Statistics Main Entrepreneurs’ Problems Capital Availability in the World Fundraising through Crowdfunding CrowdSynergy solutionwww.crowdsynergy.com 3
  4. 4. Background CrowdSynergy is Virtual Business Incubator and Innovation Ecosystem Platform Founded in 2012 More than 10 years were devoted for analysis, research and development of the concept “Platform for World Innovation Ecosystem” Our main solutions are: Virtual Business Incubator Solutions for Innovation Ecosystems Management Corporate Innovation and Business Incubation Programs Solutions for Expert Communities and Mentors Crowdsourcing and Crowdfunding Solutions Investments Managementwww.crowdsynergy.com 4
  5. 5. www.crowdsynergy.com 5
  6. 6. Number of Entrepreneurs in the World (2010 -> 2011) 250 million early-stage entrepreneurs* in 59 economies in 2010 388 million entrepreneurs were actively engaged in starting and running new businesses in 54 countries in 2011** *Less than 3,5 years of activity; recovered after recession of 2008-2009 **According to GEM, out of 54 economies in the age between 18 and 64 Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 6
  7. 7. Number of Entrepreneurs in the World (2010 -> 2011) 388 million entrepreneurs in 2011 included: 163 mln women early-stage entrepreneurs 165 mln young early-stage entrepreneurs between the ages of 18 and 35 69 mln early-stage entrepreneurs that offer innovative products and services that are new to customers and have few other competitors 23,5% increase in TOTAL EARLY-STAGE ENTREPRENEURIAL ACTIVITY in 2011 Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 7
  8. 8. Number of Entrepreneurs in the World (2011 -> 2012 -> 2013) Total entrepreneurs Early-stage entrepreneurs = 11,5% (avg unweighted)*2011 388 million 44,6 million 15% t0 25% increase in total and TEA2012 446 to 485 million* 51,3 to 55,8 million* 15% t0 25% increase in total and TEA2013 513 to 606 million ** 59 to 69,7 million** *Strongly pessimistic estimation of CrowdSynergy based on OECD, GEM, WEF data from 2011 – in reality figure is 3-5 times more. This estimation was made considering possible downturns and risks. **Optimistic estimation of CrowdSynergy based on decision tree analysis and data from previous years (growth, increase rate, economic growth ad cycles) Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 8
  9. 9. www.crowdsynergy.com 9
  10. 10. Main Problems of Early-stage* Entrepreneurs Access to capital** Access to networks of mentors, experts, investors, entrepreneurs, etc… Lack of knowledge / business skills / technical skills Team building / selection / organization Business model and strategy etc… *Early-stage–the state of a project after the concept and idea formulation through the seed (formation) stage but before middle stage (generating revenues). **According to Market research by CrowdSynergy and secondary data from BCG, GEM, OPORA, SG 2012 Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 10
  11. 11. Is access to capital one of the most important problems? Let’s consider only one problem (perceived by early- stage entrepreneurs in efficiency-driven economies as the main one): Access to capital or Fundraising as the main problem of early-stage entrepreneurs …we need to understand in detail what, why, how and who of the problem -> Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 11
  12. 12. www.crowdsynergy.com 12
  13. 13. Why (Venture) Capital is important? – WHAT of the “Access to Capital” problem Venture capital has enabled the United States to support its entrepreneurial talent and appetite by turning ideas and basic science into products and services that are the envy of the world. Venture capital funds build companies from the simplest form–perhaps just the entrepreneur and an idea expressed as a business plan – to freestanding, mature organizations Venture Capital Association, the industry’s main lobbyist, claims a study it sponsored shows that venture-backed companies from 1970–2005 accounted for 10 million jobs and $2.1 trillion in revenues by 2005, as well as representing 17 percent of U.S. gross domestic product (GDP)*. Top-tier VC funds dominate in the West as VC consolidation continues Global “dry powder” is US$117.7 billion (capital committed to VC firms but not invested yet) and remains at a level similar to the past few years, as VCs invest at a pace that is reflected by their fund-raising volume**. *Kauffman Foundation, June 10, 2009 **Globalizing venture capital Global venture capital insights and trends report 2011, Ernst & Young Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 13
  14. 14. Capital Sources Capital sources vary depending on the venture’s stage of development, economic and financial situation in the environment, availability and maturity of government policies and institutions in a given economy. We will list main of them with the focus on early-stage entrepreneurs. Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 14
  15. 15. Company Funding Stages (traditional breakdown) – HOW of the “Access to Capital” problem This is where venture creation stops and the Capital to expand venture is launched product to national Bridge IPO markets 2nd stage or Sale 1st stage (Round Completing product Capital to maintain until development and in (Round C,D) pending liquidity event business 1yr or less Start-up A,B) Initial capital is gone and now needIn the most capital for full-scale production, salesdifficult Seed or initial phase of expansionperiod thereis the least Capital for productaccess to development, market research This is where venturecapital for Concept and building management needs to be beforeentrepreneurs infrastructure raising capital Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd funding www.crowdsynergy.com 15
  16. 16. Capital Funding Stages (explained) – HOW of the “Access to Capital” problem Seed or start-up stage ($0-1M) •Complete the team, formalize the plan, complete initial arrangements. •Financial capital from angels, fools, friends and family. Development stage (series A) ($2-5M) •Product development and prototype, ready for launch. Financial capital from venture capital funds. Growth stage (series B or C, and other as required) ($5-20M) •Launch and growth phase. Customer acceptance proven. Financial capital from venture capital firms. Competitive or maturity stage (IPO) ($5 – 30M+) •Mature firm in a competitive context. Financial capital from offerings in the public equity markets. Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 16
  17. 17. Who is funding Entrepreneurial Start-up Companies? – WHO of the “Access to Capital” problemFinancing continuum (as it was before Crowdfunding)The following diagram shows the typical financing for start-up companies IPOs Private Banks and Placements $5M & up Venture Govt Capital Programs $500K & up Seed Angels Capital $2-50M $5K & up Family, $500K-3M Fools & $100K-2M Owner’s Money Friends $10-100K $20-250K Source: “Successful Angel Investing”, Indiana Venture Center, 2008 Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 17
  18. 18. Capital Sources – WHO of the “Access to capital” problem Source: CrowdSynergy Analysis, 2012 Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 18
  19. 19. Capital Sources – 3 Main Pillars for Early-stage EntrepreneursSum of $31,27B reaches entrepreneurs (10% of available) Small Bottleneck but Expanding at Extreme Speed Anti Funnel $8,77B $22,5B $39M* out of out of out of Venture Angel Private $196,B $108,23B $8000+B Capital 10% growth Capital 12,1% growth Capital 114-300% exponential Decades of 20+ years of growth existing existing 2 years of existing Main sources of capital nowadays (Dec, 2012) Future source of capital *Crowdfunding capital via equity-based model (statistics from 2012) Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 19
  20. 20. www.crowdsynergy.com 20
  21. 21. Venture Capital Statistics Worldwide, 2011 Venture Capital raised in 2011- $18.7B Venture Capital available in 2011 (“dry power”) - $196.9B Venture Capital invested in 2011: $48,7B; 3209 deals (Dow Jones VentureSource); $5M – median size of investment Venture Capital Venture Capital available for early-stage entrepreneurs: $4,87-8,77B* VC growth 2010/2011 – 7-10% Angel Number of Venture Capital: Capital No. of VC Professionals - 6,125 (in USA), 8700+ (in the World)** No. of VC Funds in Existence - 1,274 (in USA), 1800+ (in the World)** Sources: PricewaterhouseCoopers/National Venture Capital Association, MoneyTree™ Report based on data from Thomson Private Capital Reuters; Dow Jones VentureOne; * - according to different sources only 10-18% of the total amount of venture capital investment (unchanged from the level in 2010) were seed and first-round financings ; ** - CrowdSynegy Estimation, 2012 Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 21
  22. 22. Venture Capital Investments, 2005-2011 Proportion of Aggregate Value of Venture Capital Global Annual VC Investment (Ernst&Young, 2011) Deals by Region: 2010 - 2012 YTD (10th May 2012) Venture Capital Angel Capital Private Capital Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 22
  23. 23. Venture Capital – Private Equity is a Cyclical Business US buyout deal value (Bain, 2011) Venture Capital Angel Capital Private Capital Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 23
  24. 24. Characteristics of Venture Capital Funds & Firms - 1 Professional, institutional managers of risk capital. Typically require five to eight years to be launched. Venture Investment made is an equity investment in a company Capital whose stock is essentially illiquid and worthless until company maturity. Angel Capital Investment “rounds” typically occur every year or two. Source: NVCA Yearbook, 2012 including statistics from the PricewaterhouseCoopers/National Private Venture Capital Association, MoneyTree™ Report based on data from Thomson Reuters Capital Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 24
  25. 25. Characteristics of Venture Capital Funds & Firms - 2 Venture capital is more than money: venture capital partners become actively engaged with a company, typically taking a board seat; Venture with a startup, daily interaction with the management Capital team is common. This limits the number of startups in which any one fund can Angel Capital invest. Few entrepreneurs approaching venture capital firms for money are aware that they essentially are asking for 1/6 of a Private Capital person! Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 25
  26. 26. Characteristics of Venture Capital Funds & Firms - 3 Yet active engagement (which is business incubation) is critical to the success of the fledgling company*. Venture Any successful company that broke through the gravity Capital evolved from the original business plan concept with the careful input and help of an experienced Angel Capital hand/mentor**. *Many one- and two-person companies have received funding but no one-or two-person company has ever gone public! Private Capital **Source: NVCA Yearbook, 2012 including statistics from the PricewaterhouseCoopers/National Venture Capital Association, MoneyTree™ Report based on data from Thomson Reuters Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 26
  27. 27. What venture capital firm looks for? Management team (perfect track record?) Concept and Business Model (superb scalability? Limited timeframe? Truly innovative?) Marketplace (world and international markets?) Fit to the fund’s objectives (minimum 3-5x ROI?) Venture Capital Value-added potential for the firm Capital needed to build a successful business etc… Angel A busy venture capital professional’s most precious asset is time. Capital If your concept doesn’t fit tough due diligence criteria it’s not likely to get even a close look. Private Source: NVCA Yearbook, 2012; CrowdSynergy’s venture industry analysis and estimation Capital Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 27
  28. 28. www.crowdsynergy.com 28
  29. 29. Angel Capital Statistics Worldwide, 2011 Angel Capital invested: $22,5B; 66,230 venture received angel funding* $340K – median size of investment 42% - invested in seed/start-up stage 55% - invested in post-seed/start-up stage Venture Capital Angel Capital potentially available: $108,23B** Angel Capital available for early-stage entrepreneurs: $21,8B Angel Angel Capital growth – 12,1%* Capital Number of Business Angels: 318,480 (in the World) Private *Center for Venture Research, The Angel Investor Market in 2011, 2012 Capital ** 318K x $340K = $108,23B – theoretically available Angel Capital Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 29
  30. 30. Characteristics of Angel Capital Investment Characteristics • Seek smaller deals • Invest in high-tech firms • Leveraging effect • Invest in all industry sectors Added Bonuses • Give loan guarantees • Prefer start-up and early-stage • No high fees Advantages Venture Capital Angels’ Business Angels Characteristics Disadvantages • Value adding • Geographically dispersed Little follow-on Angel money Capital • More permissive investors Want a say in Could turn out firm No national to be “devils” reputation to Private leverage Capital Source: Pros and Cons of Business Angel Investments, 2000 Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 30
  31. 31. What are Additional Screening Factors to Get Capital from Angels and VCs? Bureaucracy Time to get funds from Angels and VCs Gates: by a country’s or region’s cultural fit, Venture tolerance for failure, Capital services infrastructure that supports developing companies, Intellectual property protection, efficiency of capital markets and innovation ecosystem, Angel Capital the willingness of big business to purchase from small companies world’s and region’s economic and political uncertainty Private Source: NVCA Yearbook, 2012; CrowdSynergy’s venture industry analysis and estimation Capital Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 31
  32. 32. Only 1% of entrepreneurs gets funding – WHY of “Access to capital” problem Only 1 ends up being funded Venture Only 10 usually or so Capital get a serious look Angel 100 business plans come to a Capital venture capital firm for funding Private Source: NVCA Yearbook, 2012; CrowdSynergy’s venture industry analysis and estimation Capital Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 32
  33. 33. www.crowdsynergy.com 33
  34. 34. Demand for Capital from Entrepreneurs Worldwide 20 million projects have not received funding in 2011* Annual global capital demand for early-stage innovation projects is $2565-2790B in 2012** Annual global capital demand for early-stage innovation projects is $2950-3485B in 2013*** World capital demand for early-stage projects by 2030 will be more!!! Source: *CrowdSynergy’s venture industry analysis and estimation; ** 51,3 to 55,8 million x $50K (avg size of preseed/seed capital) in 2012; *** 59 to 69,7 million x $50K (avg size of preseed/seed capital) in 2012 Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 34
  35. 35. Supply of Capital from Angels and VCs Worldwide (just to remind…) Sum of $31,27B reaches entrepreneurs (10% of available capital by Angels and VCs) World’s possibilities don’t fit World’s capital demand Is there any solution or improvement that can be done? Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 35
  36. 36. www.crowdsynergy.com 36
  37. 37. Crowdfunding is… Small Money, Large Crowd JOBS act in USA as manifesto for private investors in 2012 No gatekeepers, anyone can invest (up to the limit - $1M in USA) Connects professional investors from outside network Scales friends & family network Greater transparency and trans nationality Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 37
  38. 38. Why Crowdfunding? Faster go-to-market periods (the less time – the better for a project*) Same access to information Efficient and effective framework/tools/platforms via direct participation New customer audiences Access to new asset classes Source: http://www.kickstarter.com/blog/shortening-the-maximum-project-length; www.crowdsourcing.org Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 38
  39. 39. Crowdfunding Models Equity-based (15% of total CFPs*) Donation-based (28% of total CFPs) Lending-based (14% of total CFPs) Reward-based (43% of total CFPs) Source: www.crowdsourcing.org Report, 2012 * - in number of CFPs Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 39
  40. 40. Crowdfunding Models Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 40
  41. 41. CrowdFunding Market and Trends: Crowdfunding Revenue Growth Venture Capital Angel Capital Private Capital Source: Massolution, 2012 Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 41
  42. 42. CrowdFunding Market and Trends: Growth in Number of CFPs by Category Venture Capital Angel Capital Private Capital Source: www.croudsourcing.com, Report 2012 Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 42
  43. 43. CrowdFunding Market and Trends Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 43
  44. 44. CrowdFunding Market and Trends Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 44
  45. 45. Householding Savings Ratio in the World, 1982 - 2012 Venture Capital Angel Capital Private Capital Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 45
  46. 46. CrowdFunding for Entrepreneurs Statistics 2012 536 Platforms 15% have equity-based model 114% growth $2,81B Industry Revenue, 14% - equity-based model ($39M) 300% growth $8000-57,400B – potential from householding savings Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 46
  47. 47. Is it enough just to have crowdfunding? Simple answer is No, because: We need to provide the system which will allow entrepreneurs to: Find Excellent Team Develop Concept and Business Model with superb scalability, within limited timeframe; truly innovative Reach world and international markets Add Value for Customers Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 47
  48. 48. www.crowdsynergy.com 48
  49. 49. CrowdSynergy as a Virtual Business Incubator We act in a virtual Internet space , not in physical one We give opportunities and business support for everyone, regardless of his/her skills, knowledge level, geographic location and status We add values to existing business incubation and innovation ecosystem overcoming its shortages, not competing with it. Our purpose is to integrate all players of innovation ecosystem in one place (universities, industry, R&D centers, funds, Vcs and Angels, business associations) We use crowdsourcing and crowdfunding as main instruments We provide support for average person, not only brilliant one. We support all pre-seed and seed early-stage entrepreneurs who were rejected (99% of entrepreneurs) by VCs/Physical BIs/Angels/etc. We lay the foundations of the Value Creation Society Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 49
  50. 50. CrowdSynergy as a Platform for Innovation Ecosystems For entrepreneurs: Get financing and access to funds Get personal mentor/advisory board for your project Get expertise and business support for your project (business model, strategy, marketing, PR, legal and accounting services, mergers and acquisitions, etc) Meet and hire team members, services for team building Develop project inside the system using CrowdSynergy and partners’ SaaS services Education services and courses For investors: Reduce risks of investments through professional instruments for managing startups portfolio Find a project/team within your area of interests and expertise Find partners for cofunding; Invest in project and manage your personal portfolio Buy and sell shares/equity For experts: Find and join interesting project/team Get options/shares in the project according to your contribution Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 50
  51. 51. CrowdSynergy Services and Solutions Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 51
  52. 52. Life Cycle of Typical Startup (with and without CrowdSynergy services) Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 52
  53. 53. CrowdSynergy Services and Solutions Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 53
  54. 54. CrowdSynergy Services and Solutions While other players try to screen and reduce their risks we build a system where early-stage entrepreneurs could try their ideas, develop concepts, reach first investors, mentors and experts in 3-5 steps and increase their chances for success without any risk for them: Register in the platform www.crowdsynergy.com Fill in info about you, your idea/project Promote and develop your project through services for free Get expertise and market validation of your ideas/projects from crowd. Successfully? Then … next step Try to reach your first crowd investor/angel/VC investor through our platform or our partners. Entrepreneurship Main Problems of Capital Availability in Fundraising through CrowdSynergy solution Statistics Entrepreneurs the World Crowd fundingwww.crowdsynergy.com 54
  55. 55. About CrowdSynergy Entrepreneurship Main Problems of Venture Capital in the Fundraising through CrowdSynergy solution Statistics Entrepreneurs World Crowd fundingwww.crowdsynergy.com 55
  56. 56. CrowdSynergy Vasily Ryzhonkov R&D Director vasily.ryzhonkov@crowdsynergy.com http://worldbusinessincubation.wordpress.com/ +7 916 652 95 02 (Russia) +46 76 7158679 (Sweden) CrowdSynergy www.crowdsynergy.comwww.crowdsynergy.com 56
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