1
U.S. Crowdinvesting Industry
Jonathan Sandlund
Jonathan Sandlund | @jsandlund |
@jsandlund
2
thecrowdcafe.com 

leading provider of research, data and analysis on the
global crowdinvesting industry
Jonathan Sandlu...
3
Rewards v. Investment
Why it matters.
4
~$5,000
~$160,000
Median Fundraise
~$775,000
5
Loyalzoo Raised ~$300,000 from 157
investors.
6
Very large investors Very small investors
7
Title II (Accredited Crowdfunding)
vs.
Title III (Retail Crowdfunding)
Title IV (Reg A+)
vs.
Intrastate Crowdfunding
vs.
8
Title II (Accredited) Crowdinvesting
Jonathan Sandlund | @jsandlund
9
General Solicitation
What does it look like?
10
11
12
13
How much general solicitation (506c
offerings) is happening?
14
Shhhh…..
Quiet 506c Deals
15
Marketplace Structures &
Considerations
Jonathan Sandlund | @jsandlund
16
Market Segmentation.
17
Platforms
VerticalizedSMBsStartups
By Addressable Markets
18
‣ Sector-Focus
‣ Generalists v. Specialists

‣ Stage-Focus
‣ Seed v. Early v. Emerging Growth v. Later-Stage
‣ Project-...
19
Curated vs. Non-Curated Platforms
5% 25% 100%
Very High
Curation High
No
CurationModerate
50%
<5% 100%
acceptance rate
The Curation Spectrum
Carry 20% Carry
SaaS $19 - $69 / month
* selected samples
Blended 10% Success Fee +
10% Carry
Curation drives business mod...
22
Are investors a commodity?
Where is the Enterprise Value being built?
23
24
Market Optimizers
vs.
Market Makers
25
The Value of a Distributed Cap Table
Pre & Post-Funding
26
Biggest unfair advantage of all.
Access to capital.
27
What’s Next?
From 2000 to 2010 the cost of building a
startup declined by a factor of 10X
Fundraising is next.
Centrali...
28
What’s Next?
Twitter et al. liberated control over information
Crowdinvesting will liberate control over capital.
29
The Disruption — Not If, But When
Jonathan Sandlund | @jsandlund
30
Crowd
funding
Technical
Disruption
Entrance of the internet
into private capital formation
process.
Cultural
Disruption...
31
Music
Travel
Retailing
Before After
Internet-driven Disruption Technical
A fundamentally more efficient
capital formation process
32
Technical
A Big UK Bank
Source: http://www-core.nesta.org.uk/lib...
A fundamentally more efficient
capital formation process
33
Technical
Summed up...
✓ The first major change
in security law in 70+
years; 

✓ Invites the internet into
the capital formation
pro...
But it’s not just structural change
driving the disruption.
35
Cultural
It’s also cultural.
A cultural shift
36
‣ Web 1.0 The Information Web



‣ Web 2.0 The Connected Web



‣ Web 3.0 The Meaningful Web
Cultural
37
Chicago Booth: 13% of Americans trust the stock
market
Distrust is pervasive
Chicago Booth Financial Trust Index
Cultur...
Today
little alternative to public markets
38
Tomorrow 

individuals empowered to invest in the the companies,
people and ...
Where are we?
39
Time
Penetration
Market Adoption: S-Curve
Equity
Debt
40
Jonathan Sandlund
@jsandlund
Thank You!
Jonathan Sandlund j@thecrowdcafe.com
Upcoming SlideShare
Loading in …5
×

US Crowdinvesting Industry

473 views
341 views

Published on

Presentation given by Jonathan Sandlund, TheCrowdCafe.com @Silicon Valley Crowdfunding Conference April 3, 2014.

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

  • Be the first to like this

No Downloads
Views
Total views
473
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
8
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

US Crowdinvesting Industry

  1. 1. 1 U.S. Crowdinvesting Industry Jonathan Sandlund Jonathan Sandlund | @jsandlund | @jsandlund
  2. 2. 2 thecrowdcafe.com 
 leading provider of research, data and analysis on the global crowdinvesting industry Jonathan Sandlund
 j@thecrowdcafe.com
 @jsandlund About Me
  3. 3. 3 Rewards v. Investment Why it matters.
  4. 4. 4 ~$5,000 ~$160,000 Median Fundraise ~$775,000
  5. 5. 5 Loyalzoo Raised ~$300,000 from 157 investors.
  6. 6. 6 Very large investors Very small investors
  7. 7. 7 Title II (Accredited Crowdfunding) vs. Title III (Retail Crowdfunding) Title IV (Reg A+) vs. Intrastate Crowdfunding vs.
  8. 8. 8 Title II (Accredited) Crowdinvesting Jonathan Sandlund | @jsandlund
  9. 9. 9 General Solicitation What does it look like?
  10. 10. 10
  11. 11. 11
  12. 12. 12
  13. 13. 13 How much general solicitation (506c offerings) is happening?
  14. 14. 14 Shhhh….. Quiet 506c Deals
  15. 15. 15 Marketplace Structures & Considerations Jonathan Sandlund | @jsandlund
  16. 16. 16 Market Segmentation.
  17. 17. 17 Platforms VerticalizedSMBsStartups By Addressable Markets
  18. 18. 18 ‣ Sector-Focus ‣ Generalists v. Specialists
 ‣ Stage-Focus ‣ Seed v. Early v. Emerging Growth v. Later-Stage ‣ Project-Based (Real Estate / Film / Music / Etc.)
 ‣ Affinity ‣ By Race / Geography / Sex / Interests & Ideals Additional Considerations
  19. 19. 19 Curated vs. Non-Curated Platforms
  20. 20. 5% 25% 100% Very High Curation High No CurationModerate 50% <5% 100% acceptance rate The Curation Spectrum
  21. 21. Carry 20% Carry SaaS $19 - $69 / month * selected samples Blended 10% Success Fee + 10% Carry Curation drives business models.
  22. 22. 22 Are investors a commodity? Where is the Enterprise Value being built?
  23. 23. 23
  24. 24. 24 Market Optimizers vs. Market Makers
  25. 25. 25 The Value of a Distributed Cap Table Pre & Post-Funding
  26. 26. 26 Biggest unfair advantage of all. Access to capital.
  27. 27. 27 What’s Next? From 2000 to 2010 the cost of building a startup declined by a factor of 10X Fundraising is next. Centrality will drive fundraising costs into the ground, making capital formation accessible to all.
  28. 28. 28 What’s Next? Twitter et al. liberated control over information Crowdinvesting will liberate control over capital.
  29. 29. 29 The Disruption — Not If, But When Jonathan Sandlund | @jsandlund
  30. 30. 30 Crowd funding Technical Disruption Entrance of the internet into private capital formation process. Cultural Disruption A desire to connect more meaningfully with the things we buy, the things we do, and the things we invest in. Two mega-trends colliding Investment Crowdfunding
  31. 31. 31 Music Travel Retailing Before After Internet-driven Disruption Technical
  32. 32. A fundamentally more efficient capital formation process 32 Technical A Big UK Bank Source: http://www-core.nesta.org.uk/library/images/NestaBanks.jpg
  33. 33. A fundamentally more efficient capital formation process 33 Technical
  34. 34. Summed up... ✓ The first major change in security law in 70+ years; ✓ Invites the internet into the capital formation process. TechnicalTechnical Disruption What it means... ✓ Processes moved online ✓ Efficiencies realized ✓ Incumbents with traditional cost structures obseleted ✓ New markets served
  35. 35. But it’s not just structural change driving the disruption. 35 Cultural It’s also cultural.
  36. 36. A cultural shift 36 ‣ Web 1.0 The Information Web
 
 ‣ Web 2.0 The Connected Web
 
 ‣ Web 3.0 The Meaningful Web Cultural
  37. 37. 37 Chicago Booth: 13% of Americans trust the stock market Distrust is pervasive Chicago Booth Financial Trust Index Cultural
  38. 38. Today little alternative to public markets 38 Tomorrow 
 individuals empowered to invest in the the companies, people and causes they believe in Cultural
  39. 39. Where are we? 39 Time Penetration Market Adoption: S-Curve Equity Debt
  40. 40. 40 Jonathan Sandlund @jsandlund Thank You! Jonathan Sandlund j@thecrowdcafe.com

×