Presentation of Jeff Lynn (Seedrs) at Crowdfunding Day (April 15, 2013)

1. Why Europe is the
Best Market in the World
for Equity Crowdfunding
Jeff Lynn
15 April 2013

2. Introduction
• I’m CEO and co-founder of Seedrs
• A bit of background on us:
− UK-based equity crowdfunding platform
− Startups can raise up to £150,000 through us
− Launched July 2012 – first platform of our kind in
the world to get regulatory approval
− Funded over £1 million across 21 startups
− Median investment is £100
@seedrs
www.seedrs.comSeedrs Limited is authorised and regulated by the Financial Conduct Authority

3. Locating Seedrs
• When my co-founder and I began working on
Seedrs, we could have located it anywhere
− I’m American and have strong ties to India
− Carlos is Portuguese and has strong ties to Brazil
− We were living in the UK for our MBAs but were
fully mobile
• We chose to set up in the UK, with a view to
becoming pan-European, because we see
Europe as the best global market for equity
crowdfunding
@seedrs
www.seedrs.comSeedrs Limited is authorised and regulated by the Financial Conduct Authority

4. Regulation
• When we started out, there was no JOBS Act
• U.S. rules-based system was far less welcoming
than European principles-based systems
• Even with the JOBS Act, European systems
are still the better ones for now
− JOBS Act is highly flawed and will take years of
regulation and further legislation to get right
− European systems, while disparate and
imperfect, have proven themselves much more
flexible
@seedrs
www.seedrs.comSeedrs Limited is authorised and regulated by the Financial Conduct Authority

5. Legal Systems
• Europe is not the only region with a flexible
regulatory system
− Exists in some emerging economies too
• But the other key element of equity
crowdfunding is a strong
corporate/commercial legal system
− In the absence of personal relationships, contracts
and corporate law must be robust and enforced
• Very few other countries (bar the U.S.) have
as strong legal systems as we have here
@seedrs
www.seedrs.comSeedrs Limited is authorised and regulated by the Financial Conduct Authority

6. Startup Culture
• Startup activity is accelerating faster in
Europe than anywhere in the world
− Lots of hubs, accelerators emerging
− Talent is flocking to entrepreneurship
• Macroeconomic situation encourages this
− Europe underperformed in the startup stakes when
other parts of the economy were more stable
− Increasingly, bright people see the need to
create their own value
• With increasing startup activity comes
increased demand for funding @seedrs
www.seedrs.comSeedrs Limited is authorised and regulated by the Financial Conduct Authority

7. Lack of Seed Funding
• Seed funding is highly inefficient in Europe
• Very regional, with strong government intervention
• Startups need to be in right place/sector at right
time to get the first funding they need
• Equity crowdfunding is largely about creating
efficiencies in seed funding
− Allows startups and investors to find each other
and do deals much more easily
− The more inefficient the market, the more
potential for equity crowdfunding
@seedrs
www.seedrs.comSeedrs Limited is authorised and regulated by the Financial Conduct Authority

8. Culture of Collaboration
• Equity crowdfunding is about returns
− Investors need to profit if this form of funding is to
gain traction
− Not some sort of 21st century alternative to
capitalism – it is capitalism made better
• But it’s also about collaboration
− Providing support along with capital
− Backing businesses which profit in part from
creating positive effects on the overall ecosystem
− This aligns best with the European approach to
business
@seedrs
www.seedrs.comSeedrs Limited is authorised and regulated by the Financial Conduct Authority

9. Making it a Reality
• Europe has the potential to be the best market
in the world for equity crowdfunding
• However, we need to do a few things if we
want to fulfill that potential
− Harmonised legislation
− Encouraging and incentivising investors
− Optimism and confidence
@seedrs
www.seedrs.comSeedrs Limited is authorised and regulated by the Financial Conduct Authority

10. Questions?
@seedrs
www.seedrs.comSeedrs Limited is authorised and regulated by the Financial Conduct Authority
Jeff Lynn
jeff.lynn@seedrs.com
@jeffseedrs
www.seedrs.com