BlazeFund is an equity crowdfunding portal that connects crowd investors, entrepreneurs, and institutional investors. It uses a patent-pending two-step process to reduce investor risk by having both the crowd and institutions vet entrepreneurs simultaneously. Key benefits include built-in dividends for crowd investors in the form of rewards redeemable on a connected product listing portal. The presentation provides an overview of crowdfunding and BlazeFund's solution, business model, and portal design.

1. Presentation
on
EQUITY
CROWD
FUNDING
PORTAL
Contact:
Aaron Sanders
781-953-9530
BlazeFund, Inc.
75 Arlington Street, Suite 500
Boston, MA 02116
aaron@blazefund.com
CONFIDENTIAL
Connecting crowd investors with entrepreneurs and
institutions simultaneously via a two-step patent-
pending process that reduces investor risk

2. Background and Overview of Market / Opportunity
1) MIT recently named “crowdfunding” as one of the 10 emerging technologies -
http://www.technologyreview.com/tr10/
2) Crowdfunding is growing at 100% annually and was a $3B industry last year (2012) –
without any “equity crowd funding”. It is expected to take off in 2013 at an even faster
rate once the SEC releases guidelines for equity crowd funding
3) The average contribution on donation-based crowdfunding sites is $74 in the US. The
average equity crowd funding participation is expected to be much higher
4) Equity crowdfunding is expected to be disruptive in that it will drastically change how
early stage financing of small companies is done - and presents a huge opportunity
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3. Current State - Inefficiencies
Roughly 1 million businesses are formed in the US every year. Only a thousand deals are funded by venture capital
firms. Angel groups have grown significantly over the past decade and fund 50,000 start-ups. However, there is still a
large market gap. Existing processes that connect entrepreneurs with ideas to potential investors is highly inefficient
Only accredited investors can invest in start-ups today. Legislation has been recently passed to soon allow unaccredited investors
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4. The BlazeFund Solution – Efficient & Unique
BlazeFund connects crowd investors with entrepreneurs and institutional investors simultaneously via a patent-
pending two-step process that reduces investor risk. The methodology and portal solution is more efficient
Each group vets the entrepreneur/venture from their own perspective and the combination provides a built-in due-diligence mechanism
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5. Equity Crowd Funding
BlazeFund enables crowd investors and corporate development departments to participate with entrepreneurs in
their companies earlier in the equity investment chain, thus increasing the upside potential of their investment
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6. Key Differentiators
Connecting the crowd and institutions simultaneously with entrepreneurs, reducing investor risk via a two-step
investment mechanism that splits the investment exposure of the crowd, connectivity to a product listing portal for
purchase of products & services produced by funded companies at discounted pricing, are among the differentiators
Many of these unique patent-pending features and functionality are incorporated in the portal design
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7. Who We Work With – Our Market & Customers
BlazeFund delivers value to each of the three groups connected. Tens of thousands of entrepreneurs wish to connect
with millions of potential crowd investors and thousands of corporate development departments and institutions
The crowd provides a gauge on market acceptance, whereas strategic institutional investors validate the technology and/or feasibility
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8. Why Work with Us – Our Value Proposition
BlazeFund crowd investors have some unique benefits such as built-in dividends in the form of rewards that can be
redeemed on the connected product listing portal to access products & services produced by funded companies
Initial focus on technology and business services ventures for a minimum raise of $100K where the offer is for at least 5% of the equity
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9. Marketing & Sales
BlazeFund works directly with entrepreneurs, angel groups and early stage venture firms for deal flow, as well as with
corporate development departments and economic development agencies who have an interest in sourcing deals,
listing deals, or participating in deals with the crowd
Partnerships in developing economies are being formed to establish a physical presence so local versions of the portal can be launched
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10. Revenue Model
The revenue drivers are (i) service fees for crowd funding via the system paid by entrepreneurs, (ii) institutional
subscription fees for portal access, and (iii) fees for joint venture facilitation of funded companies looking to expand
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11. How It Works
BlazeFund equity crowd funding portal workflow for crowd investors
One strategy for maintaining deal flow is to partner with select seed & early stage venture firms and economic development agencies
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12. Technology – Our Unique Equity Crowd Funding Methodology
BlazeFund utilizes a patent-pending architecture connecting multiple user groups simultaneously
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13. Crowd shareholder resale transactions subject to SEC approval and will most likely be done on a separate approved exchange
*
Process Flow
BlazeFund’s proprietary system allows crowd investors to work the complete investment lifecycle
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14. Business Model
Highlights
 BlazeFund focuses on technology and business services ventures
 Connecting (a) entrepreneurs with (b) unaccredited individual crowd investors who
have capital, expertise and/or consumption potential, and (c) nonprofit/strategic
investing institutions – all in a single ‘economic ecosystem’
 Minimum raise - $100K in 2 rounds (with at least $50K per round) – and where the offer is for
at least 5% of the equity of the company (minimum/maximum company valuation of $500K/$10M)
 Potential for one participating institution to invest up to 100% of the crowd on the
same terms at the same time – or in Round 2 at a pre-set premium
 Minimum crowd investment - $150/person/round (max. subject to SEC limitations on caps) or
$300/individual invested in 2 rounds per offering
 Funding only if fully subscribed (payments held in escrow with custodian/bank; ACH payments accepted)
 Convertible debentures (subject to SEC guidelines) allowed with conversion within two years
based on votes by crowd investors
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15. BlazeFund Portal Design
1) Comprehensive single system connecting the crowd and institutions simultaneously*
delivering value through the complete investment cycle, from initial investment to exit
2) Presentation of quality investment opportunities, based on preferences and access to
detailed documentation such as financial projections, valuations, etc.
3) On the path towards providing private equity / venture capital style due diligence by the
crowd/analysts*, allowing the crowd to view reviews by prior investors/domain experts,
thus helping to reduce investor risk
4) Two-step investment mechanism* splitting investment exposure of the crowd to half now
and half later, making the full commitment dependent on milestone accomplishment
5) Round 2 investment triggered automatically* upon reaching milestones after notification
by company and voting on by Round 1 investors, thereby increasing issuer accountability
6) Connectivity to a Product Listing Portal* for purchasing products and services produced
by funded companies at preferential discounted pricing (planned for near future)
7) Built-in dividend policy* for crowd investors with rewards, credits and allowances
redeemable against purchases from the Product Listing Portal
8) Ability for institutions to review funded companies with complete history
* Patent-pending feature / functionality
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