Apstartup crowdfunding ver3


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Apstartup crowdfunding ver3

  1. 1. www.crowdround.bz
  2. 2. Startup Ecosystem Entrepreneurs Investors Mentors & Advisors Service Providers Advice and Mentorship, network introductions We currently have APStartup, a portal based in HK, China that collates Asian startup funding deals We aim to rollout a similar software platform on private label to connect major players within the different local communities of the Startup Ecosystem We are developing crowdfunding capabilities with offshore model and onshore models, where selected projects can be migrated for crowdfunding. Mission and Objectives HOW IT WORKS
  3. 3. Individuals Startups Groups Our technology developed so far Entrepreneurs, Investors, Mentors and & Advisors, Service Providers Any type of business, company or organization Private Groups, clubs and associations, local angel groups, VC firms
  4. 4. Serial Entrepreneur TIE Mentor TEN member Cocoonian Startups E-Finet.com (8317.hk) Fortitude Securities New Media Research Career Thomson Financial SBC Warburg Offshore Banking Family Office mgmt. About the Founder download Tony Cha’scareer bio
  5. 5. What we need • WHAT WE NEED • We need to raise seed round of USD200,000  Setup our offshore crowdfuningoperations in Belize  Recruit a team of marketing people  Recruit a full time team of developers to enhance our technology • WHAT WE OFFER  Pre-money valuation of USD1.0m  Tranches of USD50,000 for 5% equity  Seeking 2 seed angel - strategic investors.  CrowdRound our own investment, 10% for 100K • WHAT IS THE POTENTIAL  Anticipated 2nd round funding of USD2-3m at valuations of USD5-8m within 18 months.
  6. 6. Use of Funds • Operating Capital  Setup our offshore crowd funding operations in Belize  Recruit a team of marketing people  Recruit a full time team of developers to enhance our technology • Deposit for Belize Securities Trading License  USD100,00 deposit in Belize Bank  License issued by Belize Financial Intl. Financial Services Commission (regulator)  Allows us to handle securities and funds on be- half of clients  Further info here
  7. 7. Our Own CrowdRound • Company  APCrowdRound Capital is a Belize IBC company beneficially owned by founder Tony Chan  Director is Carlo Mason, a qualified attorney based in Belize  Authorized shared capital of 100,000 shares  Currently issued shares is 1 share to See Profit Ltd  See Profit Ltd, a BVI is beneficially owned by founder • Terms  Issue of 100,000 class A shares in a SPV  SPV is seeking max 50 crowdfund investors.  USD1 per share.  Minimum share tranche is 5000 shares – USD5,000
  8. 8. Our Objectives Private Label software for startup communities Apps for Startups DealFlow for Investors Crowdfunding for Companies
  9. 9. APStartup.com Create, Build, Promote and Fund WE ARE CURRENTLY… • A social network platform for Entrepreneurs • Apps For Startups • DealFlow for Investors
  10. 10. Our Products Crowdfunding capabilities PRIVATE PORTAL SOFTWARE Developing offshore crowdfunding capabilities to enable any early stage company to crowdfund. We license our software to customers (investors, startup clubs, associations) www.tiprojects.hkwww.tenprojects.hk
  11. 11. Our positioning • Rewards based Portals – many in the market • Lending based Portals – Many in the market equity based crowdfunding Lending based crowdfunding software platforms for collating projects rewards based crowdfunding Degreeofdifficulty Degree of competition in market The market for APStartup • Equity Based portals – NONE • Collating projects software – Few players in market
  12. 12. Tony is founder and CEO of APStartup based in Hk and China. He has worked for 10 years within the finance and IT industry. He is a serial entrepreneur with 2 successful startups in the finance and IT space. Tony is also a TIE mentor and has an MBA from Strathclyde University i Bharat is the project manager for APStartup platform development and business development in India. He is an expert in web based technologies for 5 years. He has an MBA from Gujarat University Iain Reed is an ex- investment banker and successful entrepreneur in financial software. He is president of TIE HK Chapter and a graduate of Cambridge University Management Team Tony Chan CEO Bharat Koryia CTO Iain Reed Advisor
  13. 13. The Crowd Round The Crowd Round is an early round of funding taken by means of international crowdfunding We take up to 10% of any startup’s shares and transfer them into an offshore SPV holding company for international crowdfunding. We sell shares in the Belize company to crowdfunding investors , upto 50 investors are allowed CrowdRound.bz website in development, est launch early Oct
  14. 14. Why offshore • Hedge funds use offshore  Resolves the complex regulatory rules of different jurisdictions  Tax efficient  Cost efficient  High scalability • Regulation  Lighter regulation on marketing and compliance  Increase benefit of • Why Belize  Recognized offshore jurisdiction for companies and funds  Former UK territory with common law • Partners on Belize  Belize Bank  Belize Lawyers  Belize licensed service providers
  15. 15. Crowd Round - How it works Belize SPV owns 10% of target co investor1 Investor 2 Investor 3 Investor 4 Target company seeking fundraising Investors buys shares directly in the SPV Target co issues 10- 20% of shares to SPV for crowd round Shares Registrar, share issued Articles, Certificate of Incorporation Shareholders agreement of SPV Belize Protected Cell company
  16. 16. Belize Securities Trading Licence Regulation • Regulated by Belize International Financial Services Commission • The License shall at all times comply with the provisions of the Act, the Amended Act and the Regulations made there under, as amended from time to time, as well as the IFS Practitioners (Code of Conduct) Regulations, 2001, as amended from time to time • The Licensee is required to fully disclose to customers the charges for services performed by registered firms in connection with securities transactions and shall not be discriminatory between customers. List of approved Services • Money brokering. • Money lending and pawning. • Money exchange. • Safe custody services. • Accounting services • Brokerage, consultancy or advisory. Formation or management of international business companies or other offshore entities. • asset protection and management. • International collective investment schemes (such as mutual funds, unit trusts, etc). • Money transmission services • Payment processing services
  17. 17. Summary of CrowdRound • Benefits to Company  Cost effective way to pursue Crowdfunding  Less compliance issues with developing onshore regulations  Raise a global profile and not just investors in your own backyard  Benefits to Investors  Can look at truly global projects  Can build a portfolio of investments  Convenience and anonymity of investing offshore • Benefits of CrowdRound  Faster process than doing Angel rounds  Good way of building enough investorbase for an IPO  Building a userbase for your products also  Efficient and high impact way of fund-raising  Allows accesss to world-class startups and early stage businesses
  18. 18. Revenue and Costs 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 1 2 3 4 5 6 7 8 9 10 11 12 Deal income - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 1 2 3 4 5 6 7 8 9 10 11 12 Other costs Estimated CostsEstimated Revenues No revenue generated in Y1 due to technical issues Estimated investment so far is USD120,000
  19. 19. Forecasts • Income is based on Deals income and Apps subscription income • Apps income is more secure and reliable than deal income •Deal income has higher risks of closure • Low cost (mostly online) business -100,000 -50,000 - 50,000 100,000 150,000 200,000 12 Q1 12 Q2 12 Q3 12 Q3 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Incom e USD Y1 Actual Y2 Y3 Y4 Apps income - 43,221 230,149 575,371 Deal income - 137,500 355,000 887,500 Income - 180,721 585,149 1,462,871 total salaries -46,500 -175,500 -210,000 -525,000 Other costs -18,000 -49,950 -102,000 150,000 total costs -64,500 -225,450 -312,000 -375,000 Net profit -64,500 -44,730 273,149 1,087,871
  20. 20. Deal Brokerage (revenue forecast) • Deal brokerage will be done via crowdround.bz • Expect to close 2-3 deals per Quarter • Expected commission rate is 5% on funds raised. • Each deal needs careful due diligence and selection for crowdfunding. • No of deals to accelerate as experience and credibility is gained. 0 1 2 3 4 5 6 7 0 20000 40000 60000 80000 100000 120000 5% Q1 Q3 Q5 Q7 Expected No of…
  21. 21. Risks and pivots Risk Factors Pivots IT issues (as we choose to outsource our IT instead of develop in-house) Went through this is Y1, bad IT meant poor implementation. Had to completely re-write the system and re-launch in y2 Security hacks Because we are using open source software we need to be vigilant of security holes Deal Quality of startups Only 30% of startups meet investment quality. We use the platform as a dealflow system to filter out good deals Risk of deal closing Deal closing is a low probability business. We mitigate this by focusing on quality deals and also a wider investor network attracted onto the platform Risk of deal circumvention This is not easy to protect as deals are not exclusive. We protect only the leads we introduce to investors. All deals we take on has a non-circumvention and finders fee agreement signed. We use legal escrow for completion of transactions.
  22. 22. Competition analysis equity based crowdfunding Lending based crowdfunding Degreeofdifficulty Degree of competition in market APSTARTUP AND CROWD-ROUND software platforms for collating projects rewards based crowdfunding Note - We have only added dominant players in each category for reference only
  23. 23. Case Studies : CrowdCube UK
  24. 24. CrowdCube : How it works
  25. 25. Thank You ! AP CrowdRound Capital Ltd Registered address : Hutson Street & Marine Parade Boulevard, Belize City, Belize Tel +825 2570 1161 Fax +825 3020 1086 tonyc@apstartup.cm