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Finego is an online platform where investors meet entrepreneurs and the former invest in the projects of the latter, without intermediary and with minimal transaction costs.

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  • Follow-up interface:- Accounts- Agenda- Strategic info
  • Finego

    1. 1. The ProjectFinego is an online platformwhere investors meetentrepreneurs and the formerinvest in the projects of thelatter, without intermediary andwith minimal transaction costs.Finego anticipates the next movein banking and offers to thecommunity a system combiningsimplicity, rapidity and moraledge.
    2. 2. Tail Banking Risk Because of high fixed costs 3F (offices, employees), small Biz angels Equity projects are neglected, VC gap independently of profitability IPO Amounts Banks involved BASIC IDEA SMEs: 99% of cies inInstead of having VCs financing the Europe Micro-enterprises: 91%entirety of the needs of a very small of ciesnumber of candidate companies, why nothave them finance a small part of a largernumber of start-ups and offering thecommunity to crowdfund the rest? TAIL BANKING
    3. 3. Venture capital investment in Europe
    4. 4. Enabling Tail Banking INHIBITOR SOLUTION Disintermediate andHigh fixed costs and transac- dematerialize the investor-tion costs entrepreneur relationship Primary screening followedInformation asymmetry by “crowd screening”Red tape No-formality legal strategy
    5. 5. Demand of funds Bank Supply of funds A E+L Credits Deposits Securitization S S E Stock E C C exchange U U R R I I T OTC T I I E E S S Finego
    6. 6. From screening to monitoring Investors follow the life of the company through an online “monitoring board” Develop ment Screened projects are posted online Follow-up and suggested to platform investors Crowd Start-up screening Online and launch fundingScreen Online users& seed vote, provide information Primary and/or expertise, and screening invest Auditors/incubators and VCs identify promising projects and seed-fund them
    7. 7. One click, no formality• Online platform where investors meet entrepreneurs without intermediary• Entrepreneur has a Finego page for presenting his project and attracting investors• Investor browses through projects and makes one-click investments• No formalities  zeroed economic and non- economic transaction costs• Intelligent suggestions based on browsing patterns
    8. 8. How to reduce the information asymmetryPrior to online launch After online launch After funded • Primary screening: • Compulsory public • Follow-up platform VCs and auditors do information: • Information on the their due diligence business plan company’s business job • Confidential continuously fed-in • VCs may give a little information available • Frequency of kickstart by putting after confidentiality accounting reporting in some money agreement • Entrepreneur can • Pay-for information buy expert audit and • Multilateral vote: subsequently sell it every user can give to interested evaluation of any investors project • “Experts market”: people, according to their disclosed credentials, can offer their expertise to Besides “content information”, evaluate projects entrepreneur can leverage • “Style information” “style information” to signal quality and seriousness by customizing and theming the design of his Finego page as if it were a blog
    9. 9. Once the investor has made up her mind Share • Investor enters his bank account number Commitment • Will be debited at the end of to fund Convertible the fund-raising and only if the During the fundraising bond fund-raising is complete process, investors • Legal minimim K already commit investment provided by VC (seed-fund) amounts Bond45% of 50.000 (1 share = 5€) Capital increase operation 10 x 5€ = 50€ • Standardized contracts • Electronically signed
    10. 10. Legal strategy Entrepreneur has to constitute his company according to the legal outfits we propose Societas Country-specificEuropaea law “Mailbox strategy”: Every project All projects launched according to according to best country- local law specific law, independently of entrepreneur’s country
    11. 11. Some examples of legal outfitsSociété SA/SPRL/SPRL-Coopér Shares only S Limited (UK) ative negotiable Negotiable Minimum capital between securities very low associates Capital can vary without General Meeting necessary when Statutorily requesting variation of flexible statutory capital changes Follow-up interface: No need for General Meeting - Financial Statements when capital varies - Agenda Underwritte Liberated - Strategic info n capital capital Fund /  Virtual Shareholders’ General withdrawal Meeting: Share   - Vote withdrawal - Tweet Mandate service
    12. 12. Alternative capitalism• Not just another way to diversify away risk and run after return• Investment opportunities whose main motive is affinity• Satisfaction of intimacy with project one values and likes, instead of dropping one’s money off on the account at the bank and not knowing what happens with it• Human-scale projects, with a name and a face• Satisfaction of helping someone realizing one’s dream: good-feeling• Something to tell your friends about• Click here to watch a video discussing the morality of Finego
    13. 13. Social networking• Leverage as much as possible users’ online social networks to generate activity on Finego• Technologies to carry one’s social network from website to website, to enable one’s friends and acquaintances to follow one’s activites on other websites (Facebook Connect)• Social networks as virtual webs of people importable on many different platforms• Finego as a new kind of social networking: bring one’s network to invest in one’s project
    14. 14. Business Model KEY PARTNERS KEY ACTIVITIES VALUE CUSTOMER - Screening PROPOSITION SEGMENTS entrepreneurial CUSTOMER - Give entrepreneur projects - Underser- access to RELATIONSHIP - Seed fund served en-- Venture capital massive - Follow-up platform for investors - Organize crowd- audience - Consulting + advice to entrepreneurs funding through trepreneurs- Online investment social networkbanks - Undercol- - Very limited lateralized en-- Auditors transaction costs KEY trepreneurs- Public funding agencies RESOURCES - Feel-good investors - IT resources - Social network- Social network sites - IT platform CHANNELS - Friend in- - HR for screening & - Moral vestors capitalism - Web platform web design - Networks to find projects - Funds - Legal strategy - Local capitalism - Peppercorn investors COST STRUCTURE REVENUE STREAM- Finders of projects - Human resources - Auditing services- Screeners - Legal - Transaction fee (brokerage)- IT development - Seed-funding shareholding - Subscription fee
    15. 15. Back-of-the-envelope business plan• In 2008-2009, average number of newly-created companies in France = 400 000 (although many bad and very small)• In 2007-2009, average number of VC-funded new companies in Europe = 5 000• Hypothesis 1: funding need of average Finego project = 100 000€• Hypothesis 2: transaction fee = 3%• Hypothesis 3: 1 project out of 10 is screened To make 10^6 of revenue/yr we need to collect 4 000 projects (of course the transaction fee can be changed) and launch online 400 of them