For answers to all of your pressing questions please consult this document.

1. 1. Value Proposition
What is SproutChange?
SproutChange is a digital platform that gives retail investors access to local socially
responsible investments. Investors of all shapes and sizes from across Canada can invest as
little as $25 in SproutChange. We loan that money out to local social businesses to help them
finance growth, or expansion projects. Investors then get to watch their money sprout in a
way never before possible!
What problem is SproutChange solving?
Investment options for the average investor in Canada are limited. Investors are tired of
paying high fees and earning low returns with traditional mutual funds, GIC’s and ETF’s.
Most of the interesting investments are only available to accredited investors (high net worth
individuals). Additionally, local business often gets forgotten about. They struggle to raise
necessary financing from financial institutions, which leads to slower growth, and fewer
opportunities.
How does SproutChange solve the problem?
Not only does the average retail investor get access to new investments, they also get to
support socially responsible businesses! Investors can contribute small amounts of money
and earn higher returns than with traditional financial products. As a peer-to-peer lender
(P2P), we eliminate the middleman and can therefore lend money to businesses cheaper and
deliver higher returns to consumers. We just made the pie bigger for everyone!
What is the P2P Lending Market Opportunity?
P2P Lending is a proven and established model in many developed nations around the world.
In 2016, over $10B of loans were issued by P2P lenders in the U.S alone. The UK is the
largest market per capita for P2P lenders, issuing over £5B of loans in 2016. The reason for
the absence of this market in Canada is due to the intervention of securities regulators. In

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2016, new legislation was passed allowing P2P lenders to operate across the nation. This
market is ripe for the taking, and SproutChange hopes to gain an early-mover advantage and
be the leader in the P2P social responsible space in Canada.
2. Customers/Beneficiaries
The way people interact with their money is changing dramatically. People are investing
differently, earning differently, and are more and more worried about security.
The ‘Big 5’ banks in Canada have owned the entire banking lifecycle for many years, but that
is changing. FinTech in Canada is revolutionizing the way people invest their money, and
SproutChange hopes to capitalize on that. The reason for this massive FinTech revolution:
Millennials
Millennials no longer care about brick and mortar branches and traditional products.
Millennials want to interact with their money, have a say in its growth, and engage digitally
with the entire process. With Millennials now being the most populous generation in Canada,
there is a need for innovation, growth, and change. SproutChange aims to achieve all three.
Data:
1. According to the Investment Funds Institute of Canada, Canadians have $1.32T
invested in mutual funds in September 2016. Roughly 45% of millennials invest in
mutual funds in Canada.
2. According to Environics Analytics, Millennials (1981-2000) number 9.5M in Canada.
Their share of the income earned in Canada is expected to grow significantly as they
continue to enter the workforce and reach their prime earning years.
3. According to Statistics Canada, there are over 2M Post-Secondary (University and
Colleges) students in Canada.
Those invested in mutual funds, millennials, and students are three extremely viable target
markets for SproutChange.
3. Marketing
How will SproutChange reach our target market?
As a digital platform that predominantly targets millennials, we will advertise via social
media, and YouTube. Our brand team has begun creating a series of videos that explain our
product, and introduce consumers to our brand. Having these videos pushed out via social

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media will be important in educating the consumer on how our product works.
We are also using Hoot Suite to manage our traditional social media pages (Facebook,
Twitter, Snapchat). These pages will feature a mixture of blog posts from the co-founders,
interesting articles about fintech, social business, and youth entrepreneurship, and words of
wisdom regarding investments in Canada. We hope to use these pages to be a “hub” of
interesting information on fintech and entrepreneurship in Canada.
We will also get our hands dirty by pushing out our product on University Campuses across
Canada. We are in the process of partnering with clubs on campus to get in front of students,
and allow them to understand the product, and how it can be useful to them. Most
importantly, we have developed an extensive network of experience professionals in this
space. Our network will be crucial in spreading the word about SproutChange at our time of
launch.
How are we going to acquire our first group of customers?
SproutChange is currently holding ‘workshops’ in the Montreal area for people that are
interested in helping out and learning something about our product. These workshops will
allow our target consumers to create their own investment product and tailor it to their
individual needs. We feels as though this base of consumers will serve as both great
information for us, and early adopters once we launch.
4. Competition
Who are the main competitors?
As P2P lending has just recently hit the Canadian market, there are very few direct
competitors. The first fully regulated P2P lender in Canada is Lending Loop. Our competitive
advantage over them is the fact that we focus on socially responsible businesses and will look
to target consumers accordingly.
Indirect competitors are numerous due to the growth of fintech in Canada in the past two
years. Lending companies such as Borrowell are growing in size and scale. Green Bond
companies such as Co-Power and Impak Finance are also becoming prominent in the fintech
space. These companies so far have minimum investment levels of $5,000 or higher, and

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therefore do not truly capture the needs of the average retail investor.
SproutChange will be “impact investing for everyone”. A platform where the minimums will
be $25 and so everyone can get involved in making the world a better place. Our main
competitive advantage is our access.
What stops others from copying you?
P2P lending is a market opportunity, which, to a certain extent, relies on network effects. As
a marketplace, SproutChange can capture an early mover advantage in this new space and
gather the necessary network to create an active community of socially conscious lenders and
borrowers. The fact that we will be an established company, generating returns for our
investors, makes it more difficult for others to copy, since we will be perceived as more
established, and a less risky investment. Additionally, we believe this market can sustain
many players. In the UK and U.S there are dozens of P2P lenders that have successfully
captured market share. Other entering this attractive market does not overly concern us, as we
believe that this industry can sustain large growth rates over the next 10 years. NASDAQ
research has predicted a 52% compound annual growth rate in the global P2P market from
2016-2025.
5. Business and Financial Model
What is SproutChange’s Business Model?
As a P2P Lender, the business model is to gather money from investors and lend that money
to socially responsible borrowers at a higher rate. We will typically loan our funds at a rate
between 5-13%, depending on the credit worthiness of the borrower. As the borrower pays
monthly interest payments, SproutChange will take a 1.5% fee (our profit), and the rest will
be returned to investors.
How do we Mitigate Risk to Investors?
There are 3 key ways in which risk is mitigated:
1. We are developing a stringent vetting framework that all of our borrowers must adhere to
prior to receiving any financing from SproutChange. This vetting framework comes with
certain financial benchmarks each borrower must meet, as well as monthly reporting
requirements.
2. Each investor’s money is invested in multiple borrowers to diversify the risk of default. No

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more than 25% of an individual’s money will be invested in the same company.
3. A safeguard fund will be set up by SproutChange to service any defaulted loan payments
from borrowers to ensure that our investors are protected. Part of the 1.5% fee taken by
SproutChange will be used to fuel the safeguard fund.
What is the evidence that this product is viable?
SproutChange conducted a survey that received 350 respondents. The results of this survey
speak to millennials’ demand for investment products that support social businesses. Our
results show that investors would;
1. Pay a premium for local goods
2. Accept lower returns on their investments in order to support sustainable companies
3. Prefer to invest in small increments rather than large lump sums.
The fact that P2P lending is an established, multi-billion dollar industry in the U.S and UK
also serve to demonstrate that investors are more than willing to get involved in this type of
FinTech platform.
What does SproutChange need money for?
SproutChange primarily need financing to build a sophisticated technology platform that can
accommodate our product. We are in the process of sourcing high-quality technology
developers that are able to properly build and encrypt our website and database. Information
security is a top priority for SproutChange and we want to make sure that we get it right.
Additionally, we require day-to-day working capital for the business. We need financing to
invest in materials, wages for our contractors, expenses for our advisory board, and legal
representation for our discussions with regulatory bodies.
A business like this requires sizable amounts of money in order to become fully established,
but we are taking things one-step at a time. In order to get a minimum viable product, we
have determined that we required $150,000 by the end of summer 2017. Our plan to raise this
kind of money is to launch an equity Crowdfunding campaign. This will allow our entire
network to invest in SproutChange and become a shareholder in our business. We will be a
company owned by average people that work to improve the lives of average people.
6. Team Composition

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Who are the Co-Founders of SproutChange?
Jean and Alex are driven entrepreneurs with extensive experience in the financial services
and technology sectors. They have always had a passion for social impact, and have a flair for
entrepreneurial pursuits that can make a difference in our world.
SproutChange is a company at the intersection of what they are good at, and what they are
passionate about. They both graduated from McGill with Bcomm’s in Accounting and
Finance, and briefly worked at KPMG and Deloitte as auditors during their studies. After
graduating from McGill, Jean and Alex pursued their Master’s degrees from the London
School of Economics in Finance, Accounting, and Private Equity. Along the way, Jean
gathered experience in a private equity firm, a fintech startup, and at RBC investment
banking. Alex decided to pursue a career in financial services consulting at Accenture.
Who else is working with you?
 Alexandria Mullins-Grant, Operations Manager
 AJ Cordeiro, Brand and Social Media Manager
 Tejas Saggi, Finance and Operations Analyst
 Noah Vallee, Finance and Operations Analyst
 Nigel Hessing, Legal and Compliance Analyst
 Emily Mulhall, Technology and Programming Analyst
SproutChange also has an advisory board of industry experts in each of our key areas of
business. Our advisory board provides informal advice, mentoring, and support where
needed.
7. Other Considerations
What are the major risks facing this business?
(1) One of the major risks with any fintech business in Canada is regulatory. Our
securities regulators are very strict about having appropriate licenses, proper
reporting, and adequate vetting processes. As P2P regulation in Canada is new, there
is bound to be a learning stage for everyone involved. We have been working closely
with regulators in both Ontario and Quebec over the past several months, and
confident that they are moving in the right direction. Should there be any
complications, we feel we have a very knowledgeable and connected network and
advisory board that can support us. We have also devoted countless hours into

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learning about Canadian securities regulation, and are prepared to devote many more
hours in order to create a product that works for everyone.
(2) A major risk in lending money is that borrowers will be unable to pay. We have
clearly articulate above (business model section) how we plan on mitigating this risk.
The largest P2P lender in the world, Zopa, has never lost any money from any
consumer that have invested with them, by properly fueling a safeguard fund, and
developing an appropriate vetting framework for its borrowers.
(3) Running out of money is a serious concern for our business right now. We are putting
all we have in to it, but if we are unable to raise money for operating capital, and
technology development we will have trouble proceeding at the growth we require.
We are trying to alleviate this risk through our equity Crowdfunding campaign in the
spring of 2017. Our vast network will support this campaign.
What is the vision?
We are in this to revolutionize the way people invest their money by creating a marketplace
at the intersection of financial technology and impact investing. We want to change the game
in Canada, and we want social businesses to be able to thrive, and grow in our local
communities. The vision is much larger than just loaning money. As a marketplace,
SproutChange would like to create interaction between our investors and our borrowers on
multiple levels. We want investors to be able to interact with borrowers as consumers of their
products, as investors, and as difference-makers in their businesses. Our investors will feel as
though they are making a real impact in their communities and in the world.