Collective Equity Ownership Pitch SlidesShare 2018

Collective Equity
Ownership
Exchange Value
Exchange Value
Collective Equity Ownership

2
Elia’s flock of sheep
was stolen one
night
Sheep from all flocks
donated to rebuild
Elia’s herd
The shepherd
community was
alerted
Shepherds use the Sa Paradura to earn from resources they don’t own.
Sa Paradura
CONFIDENTIAL – Not for Redistribution

3
About Us
A London-based collective equity fund led by entrepreneurs
Dedicated to those with all of their eggs in one basket
Enabling diversification of shares without giving up ownership

4
Entrepreneurs have all of their eggs in one basket
Illiquid wealth
Unable to unlock
potential value
Concentrated
Position
Limited options
for diversification
No Safety Net
If your company fails,
you’re back to square
one
The Problem

5
Liquidity
Increase exit exposure
Across Industries
Today’s and tomorrow’s
Enhancing Synergies
Fostering collaboration
While Mitigating Risk
Hedge against the unknown
Unlocking the potential of illiquid shares
Diversification

6
The start-up market has an annual value of £61 billion
950 start-ups raised more than £5M
Target Markets
• London
• Manchester
• Cambridge
• Oxford
The Opportunity

7
Participate in the exit events
and dividends of the shares of
other members
YOU OWN WE DIVERSIFY YOU EARN
Contribute the economic rights
on a number of your shares
without giving up ownership.
Receive a quota of the pool
equal to shares contributed at
time of entry
How it Works

8
£1000
Sell for £1000
Capital Gains Tax – 20%
Investable Capital without CEO £800
Investable Capital with CEO £1000
CEO is disrupting the way people invest in funds, calling up equity instead of only cash,
allowing shareholders to diversify their assets while maintaining ownership.
The Innovation

9
£ £ £
Sales & Dividends
Pool
7.5% commission
Aligned with our Partners

Online Marketplaces
Secondary markets
Eg. EquityZen and Sharespost
Venture Capital
Company buy back or
VC buy-out
10
• Small number of annual
transactions
• Expensive for the VC
• Founder gives up ownership
• Slow process with high
commissions
• Low success rate with start-ups
• High devaluation and few buyers
CEO offers an alternative to founders and entrepreneurs seeking
liquidity, diversification, and risk mitigation
Competition

11
2019 2020 2022
£50M equity
Sell fund: £1.3 - 3.8M
2021
£2.5M cash
£200K commission
£100M equity
Sell fund: £2.6 - 7.7M
£5.0 M cash
£400K commission
£150M equity
Revenues from exits
£250M equity
Revenues from exits
£7.5M cash
£600K commission
£12.5M cash
£900K commission
Fund I Fund II Fund III Fund IV
Fund Roadmap

£-
£100
£200
£300
£400
£500
£600
£700
2019 2020 2021 2022 2023
Fund 1 Fund 2 Fund 3 Fund 4
12
Assets Under Management - AUM
AUM – £ million
49
160
338
623
672
Model using residual value to paid-in investment (RVPI) data of average performing VC funds

13
Go To Market
Leverage
Existing
Network
TechStars
Network
Community
Builder
Strategic
Partnerships
Angel
Network
Catalogue &
Interviews
• Strategic partnerships with VC firms
and wealth managers.
• Engage previous interview and
catalogue participants.
• TechStars accelerator and
partnership opportunity.
• Solicit angel investors, more rational
than founders.
• Create intra-UK network outside
London.
Go to Market Plan

14
Process Activities Timeframe
1
2
3
2018 Q3-4
1H2019
2019 Q3-4
• Launch Fund 1
• Market Fund 1 in Manchester and Leeds.
• Solicit Angel Network.
• Partner with financial advisers.
• Market Fund 1 in London.
• Engage Tech Stars
• Close Fund 1 and launch Fund 2.
• Connect Venture Capital portfolios
• Apply for full FCA regulation
Go to Market Roadmap

15
2018Q4 – Apply to FCA
Regulatory Sandbox cohort 5.
The regulatory sandbox will
allow CEO to grow within the
FCA’s legal framework
2018 Q3 - Appointed
representative status in
2018Q3 to ensure fastest
route to market
2019 – Become an
FCA regulated entity
following completion
of the sandbox
program
Regulatory Timeline

16
1st Client
On-boarded in
Switzerland to
test the market
Offline
Platform 1.0
Appt Rep
Agreement with
Principal firm to
become
Appointed
Representatives
Contract
1.0
London
Network
Roadshow
in London
to gauge
interest
Content
Push
Create content
featuring SMEs
and
Entrepreneurs
Legal
Counsel
Current Achievement

17
Interviews
• Interactions with
founders.
• Concept validation
among entrepreneurs.
News
• Highlighting industry
insights
• Educational articles
on aspects of financial
services industry.
Catalogue
• Build mature
company community.
• Successfully pitched
to 10 companies.
As CEO prepares to launch, we have been creating content and marketing ourselves
We are Live

18
Hybrid
Start Up
£5M Raised
Reputable investor
Fair term sheet
Mature
£10M turnover
2 years of profitability
£2.5M net assets
CEO is aligned with its members. The standards CEO sets are to ensure the pool’s success
Due Diligence

19
ARCHIMEDE MULAS
Founder, CEO
BRIAN PALLAS
Founder, Chairman
GIULIA MAGNANI
External Relations
GRAY MCCRICKARD
Product Strategy
LOOKING FOR TALENT !
Who We Are

20
A POOL HAS 3 CLIENTS, A NEW ONE JOINS, AND ONE DEPOSITS £5
MILLION DUE TO A LIQUIDITY EVENT
1st client contributes shares of
2nd client contributes shares of
3rd client contributes shares of
NEW CLIENT contributes shares of
Total value of pool
VALUE OLD QUOTA
£ 10 million
£ 20 million
£ 30 million
£ 40 million
16.7%
NEW QUOTA
33.3%
50.0%
10%
20%
30%
40%
£ 100 million
EARNINGS
£ 5 million
£ 0.5 million
£ 1 million
£ 1.5 million
£ 2 million
PARTICIPANTS
Example

Collective Equity Ownership Pitch SlidesShare 2018

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