PWA Milano

660 views
533 views

Published on

This keynote was presented at a workshop of PWA Professional Women Association in Milano. It is about reward based and equity based crowdfunding. Compared to other presentations of mine, this is shorter.

Published in: Business, Economy & Finance
3 Comments
4 Likes
Statistics
Notes
No Downloads
Views
Total views
660
On SlideShare
0
From Embeds
0
Number of Embeds
8
Actions
Shares
0
Downloads
0
Comments
3
Likes
4
Embeds 0
No embeds

No notes for slide

PWA Milano

  1. 1. Avv. Alessandro M. Lerro January M. LERRO Alessandro29, 2014 Roma, November 15, 2013 LUISS – Scuola di Management – MBA ALUMNI CROWD FUNDING FINANCING START-UPs EQUITY CROWDFUNDING
  2. 2. CROWD - SOCIAL INNOVATION
  3. 3. FROM DO IT YOURSELF TO DO IT WITH OTHERS
  4. 4. FROM SOCIAL LENDING
  5. 5. 2013 LENDING CLUB TURNOVER: $ 2 BILLION !!! TO INVESTMENT LENDING
  6. 6. TO INVESTMENT CROWD FUNDING
  7. 7. Joseph Pulitzer ©2013 A.M. Lerro
  8. 8. ©2013 A.M. Lerro REWARD LENDING EQUITY DONATION SOURCE: ©2013 A.M. Lerro
  9. 9. 1000 ©2013 A.M. Lerro FINANZIAMENTI 1200 800 600 400 200 0 REWARD LENDING EQUITY DONATION SOURCE: ©2013 A.M. Lerro
  10. 10. By 2025 the volume of INVESTMENT CROWDFUNDING will be: > $92 billions = 1,6% of household savings ≈ 2 x total Venture Capital volume ©2013 A.M. Lerro
  11. 11. ©2013 A.M. Lerro
  12. 12. DOES IT WORK ?
  13. 13. Research: June 2012 –June 2013 SALES INCREASE REWARD-BASED: EQUITY-BASED: +24% +351%
  14. 14. Research: June 2012 –June 2013 JOBS CREATION SUCCESFUL COMPANIES HIRING: NEW JOBS: 2,2 PER PROJECT 87%
  15. 15. Research: June 2012 –June 2013 INVESTING LEADS GENERATION Angel o VC INVESTMENTS within 3 months: Investments negotiations 28% 43%
  16. 16. ©2013 A.M. Lerro REWARD - BASED CROWDFUNDING ©2013 A.M. Lerro
  17. 17. ©2013 A.M. Lerro 400 350 300 250 200 150 100 50 0 REWARD-… 2010 2011 2012 SOURCE: ©2013 A.M. Lerro
  18. 18. PLEDGES CATEGORY $ 10,266,845 High Tech OUYA: videogame consòle $ 8,596,474 Games Veronica Mars $ 5,702,153 Movie Torment: Tides of Numenera $ 4,188,927 Games Reaper Miniatures Bones $ 3,429,235 Games Double Fine Adventure $ 3,336,371 Games Form 1: 3D professional printer $ 2,945,885 High Tech Wasteland 2 $ 2,933,252 Games Homestuck Adventure Game $ 2,485,506 Games Oculus Rift $ 2,437,429 High Tech 3Doodler: 3D pen $ 2,344,134 ©2013 A.M. Lerro PROJECT High Tech PEBBLE – watch for iPhone / Android ©2013 A.M. Lerro
  19. 19. ©2013 A.M. Lerro PREORDER DONATION with PERKS ROYALTY BASED REWARD ©2013 A.M. Lerro
  20. 20. Rotterdam Bridge • Pedestrian Bridge, 350 m., 17.000 boards by Y2042 • Y2012: ca. 100.000€, 1300 boards • Civic Crowdfunding ©2013 A.M. Lerro DONATION with PERKS ©2013 A.M. Lerro
  21. 21. • Y2005 – no platform • LP: 300.000R = 27.000€ • 20.161 PLEDGES • Preorder LP: 150R • Purchase LP: 116R ©2013 A.M. Lerro PRE-ORDER Verity Price ©2013 A.M. Lerro
  22. 22. SELLABAND • Y2006  • Min. invest. 10$ • Target: 50,000$ • “Believers” • 10% reward ©2013 A.M. Lerro ROYALTY BASED ©2013 A.M. Lerro
  23. 23. ©2013 A.M. Lerro EQUITY - BASED CROWDFUNDING
  24. 24. JOBS Act was the first law in the world to regulate equity crowdfunding (apr. 2012) TIT. 2: accredited investors Implemented Tit. 3: retail investors Waiting for SEC regulation ©2013 A.M. Lerro
  25. 25. LAW: LAW n. 221, Dec. 17, 2012 “2.0 Growth Decree” REGULATION: CONSOB Reg. n. 18592 June 26, 2013 ©2013 A.M. Lerro
  26. 26. LEGAL FRAMEWORK: CONSOB has the supervision and is entitled to impose penalties Platforms ought to be registered with CONSOB Platfoms ought to meet reputation and competence requirements Investment is subject to MIFID and operated through BROKER-DEALERS ©2013 A.M. Lerro
  27. 27. TARGET CO.: ONLY INNOVATIVE START UPs ARE ALLOWED TO RAISE EQUITY FROM THE CROWD (…for now) ©2013 A.M. Lerro
  28. 28. You can raise € 5.000.000,00 per company, per year ©2013 A.M. Lerro
  29. 29. CROWDFUNDING PLATFORMS: ONLINE PLATFORMS, WHOSE EXCLUSIVE PURPOSE IS TO HELP COMPANIES TO RAISE EQUITY FROM THE CROWD (art.1.5.9 TUF) ©2013 A.M. Lerro
  30. 30. SMALL INVESTMENTS • Directly managed • MIFID exempted BIG INVESTMENTS • Partner with a BROKER-DEALER • Investment profile to match with proclivity to risk investment ©2013 A.M. Lerro
  31. 31. SMALL INVESTMENTS: INDIVIDUAL: < 500€ per investment < 1000€ per year COMPANY: < 5.000€ per investment < 10.000€ per year ©2013 A.M. Lerro
  32. 32. BROKER-DEALERS: BANKS and INVESTMENT Co.s Take in charge the PAYMENT, the execution of the investment MANAGE A CROWDFUNDING PLATFORM THEMSELEVES PARTNER WITH A CROWDFUNDING PLATFORM ©2013 A.M. Lerro
  33. 33. MIFID PROCEDURE: IDENTIFICATION OF THE CLIENT ANTI-LAUNDERING RULES INVESTMENT PROFILE TO MATCH WITH PROCLIVITY TO RISK INVESTMENTS MIFID = European Union Directive, Markets in Financial Instruments and investment services ©2013 A.M. Lerro
  34. 34. ADVISING: Broker-Dealers may advise and give suggestions, within their general rules. Platforms may not provide recommendations suitable to influence pledges. PLATFORMS BROKER-DEALERS   ©2013 A.M. Lerro
  35. 35. INVESTORS: ITALIAN LAW PROVIDES A ROBUST LEGAL FRAMEWORK OFFERING PROTECTION TO INVESTORS ©2013 A.M. Lerro
  36. 36. There is NO PERSONAL INVESTMENT LIMIT MIFID regulates any NON SMALL investment ©2013 A.M. Lerro
  37. 37. INVESTORS EDUCATION: Companies must invest on education and offer it to potential investors. It helps with the asymmetric information problem. ©2013 A.M. Lerro
  38. 38. INVESTORS confirm • that they understood the risks of equity investment INVESTORS confirm • that their personal estate will be not compromised It is NOT an Entrepreneur’s onus; NO particular formality required; NO third parties databases ©2013 A.M. Lerro
  39. 39. SET OF WITHDRAWAL RIGHTS: WHO WHEN WHY RULE Retail Investors Bank Foundations Registered Incubators 7 days from the investment No reason or explanation: they just changed their mind §13.5 Reg. Consumers* 14 days from the investment No reason or explanation: they just changed their mind Consumer Code Retail Investors Bank Foundations Registered Incubators 7 days from the news, but before the campaign closed Material mistake or §25.2 Reg. something new happened, suitable to influence the investment decision * The only case where platform are allowed to withold costs ©2013 A.M. Lerro
  40. 40. SHAREHOLDERS AGREEMENTS: INFORMATION RIGHT Any Shareholders Agreement must be notified to Investors TAG ALONG or WITHDRAWAL RIGHT* If the Founding Shareholders sell the business or anyhow wave control * Only for RETAIL INVESTOR As long as the Company enjoys Innovative Start Up status ©2013 A.M. Lerro
  41. 41. - 5M€ max per year - Any nationality (platform, target, investors, …) - Registered Platforms - No investment limit per person - Investment concluded through Broker-Dealers - Free sale of the shares (incentives to keep them) - STRONG consumers’ protection - 5% equity: Professional Investors ©2013 A.M. Lerro TAKE AWAY:
  42. 42. LAWS AND MATERIALS: www.CrowdfundingInItaly.com ©2013 A.M. Lerro ©2013 A.M. Lerro
  43. 43. WWW.LERRO.IT ROME Alessandro M. Lerro alessandrolerro alessandro@lerro.it Available on:

×