The is an extract of the report, for the full report go to: https://dealindex.co/research.html. DealIndex Launches the Industry’s First Collaborative Report on Alternative Finance with Unique Insights from 18 Partners Spanning Across 3 Continents. The flagship report, first to come in the company’s Alternative Finance Quarterly Series, sheds light on various areas of the alternative finance sector, with particular focus on equity crowdfunding. These are the 18 different platforms highlighted in the report: AgFunder, Bankless24, Crowdfundraiser, Crowd Valley, DealGlobe, Equidam, EquityNet, Grow Advisors, HealthiosXchange, iAngels, KoreConX, MyMicroInvest, OneVest, Raizers, Snowball Effect, SyndicateRoom, TradeUp, VentureFounders.

1.
DEMOCRATISING FINANCE
AGGREGATING DIGITAL INVESTING MARKETS
Alternative Finance Demystified
July 2015
Volume 1 (Digital Equity Investing): An Overview of the Key Players, Investors andTrends that
are Shaping the New Model of Online Collaborative Funding
Prepared in Collaboration with Leading Alternative Finance Players Globally

2.
Table of Contents
Infrastructure: The Importance of a Comprehensive Support
System
Investors: A Mix of Both Retail and Institutional
Platforms: The Evolution and Emergence of New Platform
Models and Asset Classes
Data and Marketplaces: Shifting Towards a More Data Driven
Approach To Investing
Executive Summary: Summary Observations, Key Findings and
A Message from the Founders
Issuers: Investment Activity Moving Upstream
09
20
24
31
51
58
65
Introducing the Alternative Finance Ecosystem: Who Are The
Key Players and How Do They Interrelate With One Another
Conclusion: Looking Forward
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PREFACE:A PARADIGM SHIFT IN FINANCIAL SERVICES
Alternative Finance is a new phenomenon, and it is taking the world by storm. With over 1,250 crowdfunding
platforms worldwide, this new model of collaborative funding is breaking boundaries and defying the status quo
as to how issuers source capital. In light of this paradigm shift and plethora of platforms, we perceived the need to
develop an alternative finance aggregator that would instantaneously display quality private investment
opportunities from curated platforms, all in one centralised marketplace.
We embarked on this mission to pioneer an innovative dashboard to address the ‘pain points’ often faced by
sophisticated investors who are keen to invest in private companies across all corners of the globe. It is throughout
the course of this 12-month journey and vigorous research-driven process that we discovered the relative dearth
of information on this burgeoning sector. This industry report thus aims to offer a comprehensive overview of this
emerging sector, as well as to provide valuable insights on the complexity of the wider alternative finance
ecosystem from various perspectives.
As we set out to develop DealIndex as an alternative finance aggregator, our first port of call was to define the
term “alternative finance” and to research the key players underpinning this rapidly evolving sector. While
alternative finance is primarily known for crowdfunding and P2P lending, we discovered entire asset classes,
important functions of investment banking, including a supporting ecosystem of due diligence, risk management,
and infrastructure that had transversed the offline and online world of financial services. We started to see how
these seemingly disparate players in alternative finance - involved in different aspects of fundraising, and from all
over the world - are interrelated. Assets including alternatives and M&A, represent significantly bigger (albeit
challenging) asset classes and have started moving online. More importantly, we learned how these players mirror
traditional investment banking services and had already started collaborating with the financial services industry.
Some of the themes underpinning alternative finance include:
1. Increased transparency and access to otherwise closed off asset classes;
2. Redefinition of the term “investor” across the entire spectrum of private and public asset classes. The crowd
gets access to privileged deals and the world’s largest financial institutions have started investing in companies
much earlier in the life-cycle of a company;
3. Collaboration is a cornerstone of the industry as the syndication model takes hold with mobile, social media
and millennials all generating network effects;
4. Increased volume of funding activity in private companies & assets, and increased amounts of companies
getting funded with customers getting involved in product development / playing a role in innovation as
investors; and
5. How technology, speed, and data have come together to reduce the inefficiencies in searching and accessing
private investment opportunities, thereby saving issuers and investors time in the procurement process.
Alternative finance has already demonstrated its potential to change the way fundraising is carried out by private
companies by implementing a much more democratic, transparent and efficient process for both entrepreneurs
and investors. Issuers get increased access to diverse funding options, while online platforms alleviate the time,
effort and costs associated with fundraising, in addition to generating increased marketing and product
awareness.
Democratising Finance Executive Summary
Neha Manaktala
CEO and Co-Founder, DealIndex

4.
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Having been on both sides of fundraising, it is exciting for me to be
part of the potential to improve the way different aspects of
financial services are performed; all the while deepening
collaboration, not just between alternative finance players, but with
the financial services industry in general
Democratising Finance Executive Summary
“
The definition of investors itself has evolved since the advent of alternative finance and the surge of online
platforms. Increasingly, we are witnessing changes to investment behaviour since the start of syndication of
investment online. Furthermore, access to global investment opportunities has led to a more data-driven
approach to investing.
Despite growing into a $16.4Bn industry in 2014, it is still a drop in the ocean compared to the $3.3Tn
addressable market opportunity. Although crowdfunding is still often dismissed as a niche activity associated with
rewards or donations, the industry has developed into an entire ecosystem that is constantly evolving. Growth has
been exponential with players across the entire funding lifecycle offering diverse and alternative fundraising
options. Most of these alternative finance players already have a significant amount of collaboration with the
financial services world.
Finance is a singular industry with its ramifications permeating every single part of the economy. As an ex-Lehman
Brothers investment banker who witnessed the Great Financial Crisis first hand in 2008, I am constantly reminded
of these important principals. With rapid growth in the alternative finance space, comes the need for increased
maturity in the industry and systems to contend with the unknown and untested impact of changing credit and
interest rate cycles, liquidity squeezes, fluctuating asset pricing and valuations and the impact of the macro
economic environment. Moreover, with increased funding rounds, shorter capital raising cycles, diversified and
changing investor bases in private companies, structured offerings and more sophistication being applied so
early on in the life of a company, comes the need for best practices to be applied from financial services. Due
diligence, risk and portfolio management, research, liquidity channels / secondary market - these are all vital parts
of finance and are now beginning to permeate alternative finance.
Alternative finance is removing information barriers and information inefficiencies that exist in the private market,
opening funding conduits and channeling global liquidity. At DealIndex we take a global, curated approach to the
alternative finance ecosystem. We give you a pulse of the market through the provision of data, research, analytics
and context on the wider ecosystem. The availability of private company data is a game changer and everyday we
are fascinated by the volume of data and patterns that emerge as we observe dealflow going live from different
corners of the world across platforms, asset classes and sectors, all in real-time.
Having been on both sides of fundraising including at Morgan Stanley Investment Banking, Actis Private Equity
and as an entrepreneur, it is exciting for me to be part of the potential to improve the way different aspects of
financial services are performed; all the while deepening collaboration, not just between alternative finance
players, but with the financial services industry in general.
I would also like to extend my grateful acknowledgement and appreciation for all our partners and to those who
have contributed to this report. It would not have reached you in its present form without them.

5.
Democratising Finance Executive Summary
While alternative finance started off as a seed stage endeavour, more recently platforms
have begun to emerge at different stages in the funding cycle, disrupting traditional
institutions. Drawn by the increased access to investors that operating online affords,
platforms now make it possible for companies to raise capital at every stage of the
funding cycle online.
As the market grows in size, so too are more institutions investing in the sector. As
much as 66% of the loans originated at Prosper were snapped up by large institutions
in the 3rd quarter last year. Similar figures across other P2P platforms highlight an
increasingly institutional marketplace. While equity investment remains someway
behind the P2P market in this respect, things are beginning to change with more VC’s
participating in crowdfunding campaigns. This is expected to only strengthen as more
tools for sophisticated investors emerge.
Originally seen as a solution to the long-standing funding gap for early stage
companies that appeared in the wake of the 2008 financial crisis, the ability for
issuers to raise capital more quickly and at a lower cost than would otherwise be
possible at traditional institutions coupled with a host of other benefits such as the
increased marketing awareness and customer loyalty has meant that
crowdfunding is now seen as an attractive option by many issuers.
ALTERNATIVE FINANCE IS DRAWING MORE
ESTABLISHED ISSUERS
As the private investment market moves online, the ability to harvest large
quantities of data surrounding investment decisions becomes easier. Furthermore,
tools that allow investors to then analyse the data, uncovering trends, are enabling
more informed decisions. This is a radical change for the private investment
market given its historically closed-off nature.
AVAILABILITY OF DATA IS CHANGING
KEY FINDINGS
Many have wondered if the alternative finance space is set to upend the traditional early
stage investing business model. While this angle is hyped, in reality it is emerging that
venture capital and alternative finance will work side by side. Rather than disrupting,
alternative finance is developing a collaborative and synergistic model. Evidence of this
can be seen in the growth of investor-led platforms, as well as the adoption of digital
finance by major businesses like Goldman Sachs and Metro Bank.
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PRIVATE INVESTMENT IS MOVING ONLINE
INCREASING INSTITUTIONAL INVOLVEMENT
COLLABORATION RATHER THAN DISRUPTION

6.
Democratising Finance Executive Summary
INTERESTING FACTS
Value of the Early
Stage Investment
Market2
$300Bn
Number of
Crowdfunding
Platforms Worldwide4
1,250
Estimated Revenue
Crowdfunding Added to the
Global Economy in 20143
$65Bn
Alternative Finance
Immediately Addressable
Market Opportunity1
$3.3Tn
Equity crowdfunding
average growth rate
2012-20145
410%
Number of jobs
crowdfunding
created in 20143
270,000
VC Industry annual
average6
$30Bn
Estimated Crowdfunding
Market 20156
$34Bn
Angel capital
annual average6
$20Bn
> >
100M+
Unaccredited
investors in the U.S.
351%
Increase in quarterly
revenue post equity
crowdfunding
13

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1
2
3 4
Democratising Finance Executive Summary
MARKET DRIVERS
ALTERNATIVE FINANCE IMMEDIATELY ADDRESSABLE MARKET
OPPORTUNITY1
DATA AND TECHNOLOGY DRIVES DECREASE IN COSTS AND
INCREASE IN USAGE1
ADVISORY FEES (2014); DECREASE IN
COSTS
INCREASE IN USAGE
CHANGING DEMOGRAPHICS1 MACRO ENVIRONMENT14
Millennials 10X more
likely to use P2P
Lending than Boomers
Millennials already
using alternative non-
bank financing Avg.Yield P2P Lending Average Interest Rate for
Total Marketable Debt
April 2015
Low interest rate environment drives yield
hungry investors to alternative finance
16

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5
6
7
Democratising Finance Executive Summary
MARKET DRIVERS
GLOBAL CROWDFUNDING MARKET4,5
Worldwide Crowdfunding in 2014: $16.2Bn YoY Growth 2013/2014
DEMAND FOR DIGITAL INVESTMENT OPERATIONS Q420147
NETWORK EFFECTSYIELD EXPONENTIAL GROWTH1
50% Of all Lending Tree/Prosper loans originated
in Q4 2014
17

9.
Global easing of regulations around the world is opening up the
private investment market to larger numbers of investors. In the US,
changes to legislation allowing for companies to state publicly that
they are raising funds meant that the market was opened up to
accredited investors in 2013. Regulators recently went a step further
and now non-accredited investors have access to the asset class for
the first time under Title IV.
REGULATION
Millennials desire for fast, seamless user experience coupled with
their preference for online, mobile-first solutions is changing
consumer investment behaviour. Furthermore, they are drawn by
the greater transparency and increased involvement in the
investment process that online funding platforms afford.
CHANGING INVESTMENT BEHAVIOUR
With crowdfunding’s roots in the donation/rewards based category,
it did not take long for the sector to evolve and incorporate P2P
lending and equity platforms. Furthermore, there are now platforms
at every sector of the funding cycle while other online tools such as
data providers are evolving to compliment the fast moving sector.
INNOVATION
Investors are incentivised to share campaigns across their network in
order that the funding target is reached and as such, alternative
finance is an increasingly social market. Furthermore, strong network
effects mean that as platforms draw more investors they will draw
more issuers and vice versa. All this makes it easier for online
platforms to recruit customers than their traditional bricks and mortar
counterparts.
CUSTOMER ACQUISITION
Democratising Finance Executive Summary
GROWTH DRIVERS
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10. DI Sphere: Mapping the Digital Investment Ecosystem
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11.
DealIndex is an intelligent data and deal aggregator of private companies raising capital in real-time
across leading crowdfunding platforms globally. Our offerings include:
Dashboard
Global Crowdfunding Aggregator: the DealIndex dashboard provides single sign-on access to thousands
of private companies raising capital. Our global crowdfunding aggregator allows investors to navigate
and track deals in real-time, manage their portfolio of private company investments, make informed
investment decisions backed by extensive analysis, data and research.
Research & Insights
Original content and research on the Alternative Finance Ecosystem including market trends and updates,
fundamentals impacting the sector, and valuable insights.
Indices
Tracking the global crowdfunding / alternative finance market through proprietary indices.
Sign-up for our dashboard here: https://dashboard.dealindex.co/
DealIndex is headquartered in London with offices in New York and Hong Kong. DealIndex is part of the
Grow VC Group, a worldwide pioneer and leader in the crowd investing, peer to peer and online
investment market. Together, the DealIndex team brings a wealth of finance, investment, technology, and
startup experience.
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12.
CONTACT
77
DealIndex Research and Sales Team
Michael Cameron Edward Flach
Research and Investment Associate Research and Investment Associate
michael@dealindex.co edward@dealindex.co
Duncan MacDonald-Korth Neha Manaktala
Director, Research and Sales CEO & Founder
duncan@dealindex.co neha@dealindex.co
Tom Walker Timothy Yang
Director, Product and Business Development Director, Business Development
tom@dealindex.co timothy@dealindex.co
Media and Press Contacts
Michelle Tang
Director, Marketing and Media Relations
michelle@dealindex.co
+852 6767 0663
General Contacts
General Enquiries: info@dealindex.co
Partnership Enquiries: partner@dealindex.co
Sales and Dashboard Users: sales@dealindex.co
Research Enquiries: research@dealindex.co
www.dealindex.co

13. The is an extract of the report, for the full report
go to: https://dealindex.co/research.html