This document discusses equity-based crowd funding (EBCF) opportunities in Australia. It notes that there are over 1,500 tech startups in Australia, with most located in Sydney and Melbourne. The number of high-net-worth individuals and assets under management are also rising. EBCF allows non-traditional investors to participate in startup deals and facilitates global access to investors. The UK experience shows EBCF growing significantly and investors diversifying their investments among multiple companies. The future of early stage financing in Australia is predicted to include more EBCF platforms and variations in models.

1. What would you like to grow?
whatwouldyouliketogrow.com.au
Equity Based Crowd
Funding
February / March 2014
Opportunities for investors &
the early stage finance sector

2. The adviser’s perspective
1 2
StevenMaarbani
Director, Venture Capital & Private Equity
PwC

3. whatwouldyouliketogrow.com.au
What would you like to grow?
Agenda
●Why now?
●Global growth of EBCF
●Current status in Australia
& the future of EBCF

4. whatwouldyouliketogrow.com.au
What would you like to grow?
1,500 tech startups & growing
Sydney ~ 950 startups
Melbourne ~ 350 startups
Other locations ~ 200 startups
Total in Australia ~ 1,500 startups
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
2%
1%
2%
24%
7%
64%
Bubble size = total number of startups active in each year that are still active as at 1 Jan 2013Source: PwC analysis

5. whatwouldyouliketogrow.com.au
What would you like to grow?
Supply of capital
●Global HNW numbers at record high,
rising 9% to 12 million
●Australia HNWs grew 15% since 2011
●207,000 HNWs in Australia
●$625 billion assets
Source:World Weath Report– Capgemini & RBC Wealth Management

6. whatwouldyouliketogrow.com.au
What would you like to grow?
Investor behaviour
●HNWs demanding more control & flexibility
●Steady & significant increase in SMSFs
●Personal relationship with wealth manager less important
●HNWs more comfortable with remote channels
●Allocation into alternatives expected to increase –
education remains a barrier
●Preference for direct investment attributed (in part) to
ease of access to different types of investments

7. whatwouldyouliketogrow.com.au
What would you like to grow?
Global growth of EBCF
● EBCF enables non traditional
venture investors to:
●participate in venture deals &
●facilitates efficient global
access to that investor base
Source: Massolution, Crowdfunding Industry Report 2012
$50 m
$89 m
$116 m
2010 2011 2012 2013
$166 m
$231 m
(UK & US only)

8. whatwouldyouliketogrow.com.au
What would you like to grow?
The UK Experience
●31 EBCF platforms
●Alternative finance sector grew 91% to $US1.565 Billion
●EBCF grew 618%, investing $US47 Million
●90% of investors invested $US1,600+
●Investors elected to diversify their investments,
40% invested in 2-5 companies per quarter &
30% invested in 6+ companies per quarter
●Amounts raised $US250k - $US417k
UK alternative finance sector
predicted to grow to $US2.66
Billion in 2014
Source:CrowdFunding Industry ReportPhase 1,produced by KnowledgePeers,

9. whatwouldyouliketogrow.com.au
What would you like to grow?
The future of early stage
finance in Australia
●An increase in the number of EBCF platforms
●Other digitally facilitated financial services
business offerings
●Model variation, clearer differentiation &
greater specialisation
●EBCF used for traditional MIS fundraising,
property development & infrastructure
●EBCF used for property development
& infrastructure

10. What would you like to grow?
whatwouldyouliketogrow.com.au
Equity Based Crowd
Funding
February / March 2014
Opportunities for investors &
the early stage finance sector