Data, insights and lessons from equity crowdfunding in the USA. Lessons learned from Regulation D Accredited Investor Rounds, Regulation A Testing The Waters campaigns and the emerging Title III Equity Crowdfunding process.

1. EQUITY CROWDFUNDING
BY THE NUMBERS
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a solicitation of an offer to buy, any financial product. Investments are offered only via definitive transaction documents and any potential investor should read such documents carefully, including all of the
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2. STARTUPS
CREATE NEW
JOBS IN THE
UNITED STATES
Small businesses are America’s driving
economic force. Access to capital remains
one of an entrepreneur’s greatest challenges
in getting a new business off the ground.
of the nation’s
private sector
employment.
2/3OF GDP IS PRODUCED
BY STARTUPS AND
SMALL BUSINESSES
50%
Sources: Small Business & Entrepreneurship Council 2

3. CURRENT
FUNDING
SOURCES
0.91%
ANGEL INVESTING
57%
PERSONAL SAVINGS
& CREDIT CARDS
38%
FRIENDS
AND FAMILY
0.05%
VENTURE CAPITAL
1.43%
BANKS
95% of startups and small businesses are
funded by personal savings, credit cards, and
friends and family. Streamlining this process
can help founders spend less time raising
capital and more time growing their business.
Source: US Small Business Administration 3

4. Kickstarter, the top US rewards based
crowdfunding portal by volume, has by
itself facilitated more than $1.5 billion in
fundraising since its launch in 2009.
Equity crowdfunding enables
companies to raise larger amounts of
capital by allowing investors to own a
piece of each company.
$500,000$7,825
Average Company RaiseAverage Company Raise
CROWDFUNDING
MARKETPLACE
Sources: Kickstarter and SeedInvest 4

5. AMERICANS ARE
READY TO INVEST
SeedInvest polled 18,000 non-accredited
investors about the upcoming changes to 80 year
old US securities laws and found that there is
significant pent-up demand to invest in startups
and small businesses.
Said they are likely to
invest in a startup when
the laws change.
Said they have
invested in stocks and
bonds before.
Said they expect to
invest in multiple
companies per year.
Said they expect to
invest at least $1,000
per company.
75%89%89%68%
Source: SeedInvest 5

6. OUR FIRST TESTING THE
WATERS CAMPAIGN
1 hour 24 hours 48 hours
in indications of interest.
$9,300,000
48HOURSin 3,171
PEOPLE
Source: SeedInvest 6

7. INTERESTING
DATA ACROSS
THREE DEALS
8,000
Total People
$34MM
Investment Interest
$4,000
Average Interest
Our first Testing the Waters campaigns
confirmed our hypothesis that loyal
customers would have significant
interest in owning a small piece of their
favorite companies.
Source: SeedInvest 7

8. $11,000,000
$9,000,000
$7,000,000
$5,000,000
$3,000,000
$1,000,000
$0
DSTLD Snapwire WayBetter
THE FIRST 48 HOURS
ARE VITAL
3/4 OF INDICATIONS CAME
FROM SMALL INVESTORS
6,000
5,000
4,000
3,000
2,000
1,000
0
$1,000 $5,000 $10,000 $25,000 $100,000
ANTICIPATED INVESTMENT VOLUME IS EVENLY DISTRIBUTED
$10,000,000
$1,000,000
$10,000
$0
$1,000 $5,000 $10,000 $25,000 $100,000
Source: SeedInvest 8

9. COMPARING
REGULATION MODELS
Average
Check Size $40,000
Regulation D Regulation A+
~20
$5,000
$1,000,000
$4,000
1,000+
$500
$100,000
Average
Number of
Participants
Smallest
Check
Largest
Check
Equity crowdfunding has been
legal in the UK for 4 years.
LESSONS
FROM THE UK
2,000 + COMPANIES
RAISED OVER £175
MILLION / ZERO FRAUD
9Regulation A+ numbers are anticipated based on TTW campaigns. Source: Crowdfund Insider

10. 2.6
1.1
0.4
A RAPIDLY GROWING MARKET
Global Equity Crowdfunding Amount ($ in Billions)
Source: Massolution
2013 2014 2015E
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11. THE NEXT MAJOR FINTECH FRONTIER
$1,170
$400
$258
$211$186
$30
Immediately Addressable FinTech Market Opportunity ($ in Billions)
Payments Small Business
Loans
Student Loans Personal
Lending
Wealth
Management
Crowdfunding
ACCORDING TO GOLDMAN SACHS
Source: Goldman Sachs 11

12. “Crowdfunding, sourcing funding across a
network of supporters, is potentially the most
disruptive of all of the new models in finance.”
- Goldman Sachs, March 2015
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13. Ryan Feit
CEO & CO-FOUNDER
contactus@seedinvest.com | www.seedinvest.com
Startup Investing, Simplified.
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