Online Funding and Investment in the Private Markets March 16, 2016
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Online Funding and Investmentin the Private Markets
March 16, 2016
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Disclaimer
This presentation has been prepared by FrontFundr, a registered trade name of Silver Maple Ventures Inc. (SMV), an Exempt Market Dealer, and is for general information only. It is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice.
The material in this presentation includes general background information about private placement capital raising and investments. This information is given in summary form and does not purport to be complete.
Please consult an appropriate professional regarding your particular circumstances.
Our Story
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Limited capital for companies.
Limited access for investors.
The Challenge in Canada
What are we doing
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COMPANIES
Engage a broader audience of investors
Access to a greater variety of deals
INVESTORS
MissionWe give investors access to screened companies that we guide
and support through the funding cycle
- growing the open capital market for all.
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Equity Crowdfunding
Donations
Equity
Rewards
Debt
Securities
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Non-financial
FrontFundr
FundRazrKickstarterIndiegogo
Our Focus
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EARLY STAGE EXPANSION ACQUISITION/
BUY OUT
$20M+$25K
Bootstrap Friends &
Family
SeedCapital
Start-upCapital
Expansion Capital
3rd-4th Rounds/Mezzanine
Angels/Private
Investors
Angel/Venture Capital, Junior
Public Companies
Private Equity & Public Financing
$500K
Approximate Capital Raise Range
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Democratizing Investing
CompanyAccess to
funds
Brand Champions
Efficient Financing
Investor Focus
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Virtual Relationships
PersonalRelationships
ProfessionalInvestors
AccreditedInvestors
RetailInvestors
FrontFundrAccount
Team
FinancialIntermediaries /
Dealer Representatives
Platform/Customer Service
Investor Benefits
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Fully accessible market
Fully supported online process
Screened investment opportunities
Online account information
Diverse portfolio
How We ALL Win!
Seasoned Investors
Retail Investors+ = More companies funded
Reviewed by seasoned investors
Retail investors join
Risk diversification
More funded deals
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Company Benefits
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Better access to capital
Simply share
Brand champions
Corporate structuring
Post-deal communication
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Key Criteria
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Prospect Lounge Pitch Place
Company should be:
Incorporated
Building an online presence
In beta stage, close to, or post commercialization
Preparing to raise a minimum of $75,000 to $2M
Ready to start generating investor interest
Company should:
Show market validation
Pass due diligence process
Have 30% committed
Status Today
• 2 completed deals
• 1 live overfunding deal
• 5 live offerings in Pitch Place
• 27 companies in Prospect Lounge
• 1,250+ users
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% of Dollars Raised
AI FFBA CF
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# of Investors
AI FFBA CF
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FrontFundr in the News
New crowdfunding rules open doors for companies and investors
Cash-strapped B.C. startups begin tapping equity crowdfunding
Vancouver equity crowdfunding platform closes first successful deal
FrontFundr, Guusto Succeed with Equity Crowdfunding in Canada
A new type of investment for investors: Equity crowdfunding, Interview with CEO FrontFundr
FrontFundr Launches to Provide Investors and Companies Access to a New Capital Market
IPO vs. investors: Vancouver tech startups debate raising capital
Regulatory Diversity in Canada
Sasketchewan
Six provincial regulators adopted the ‘Startup Crowdfunding Exemption’:
Contemplating ‘Start-up Crowdfunding Exemption’:
January 2016‘Crowdfunding Exemption’
and Offering Memorandum:
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Crowdfunding Rules Today
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Crowdfunding: Global Market Growth
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0
2
4
6
8
10
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2012 2013 2014
USD bn
Debt
Equity
Non-Financial
Annual Growth Rate 2014:
Debt : 222%Equity : 181%
Source: Massolution, 2015 CF The Crowdfunding Industry Report, 2015
The Canadian Private Market
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0
25
50
75
100
125
150
2010 2011 2012
CAD bnAccredited Investors
Family, Friends & BusinessAssociates
Offering Memorandum
Other
Total Existing Private Market:~ CAD 140 bn
Source: University of Calgary, The School of Public Policy, ‘The Exempt Market in Canada: Empirics, Observations and Recommendations’, March 2015
Empowering Growth of Private Companies
Household Net Worth
CANADA U.S.
$6.4 trillion $64.8 trillion
$13 bn $130 bn
$32 bn $325 bn
$64 bn $648 bn
0.2%
0.5%
1.0%
Shift to investment
crowdfunding
Sources: Bank of Canada 2014, US Federal Reserve, Venture Capital & Private Equity Association (CVCA) 2014, FrontFundr 2015
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FAQ
WHY FRONTFUNDR?
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The FutureLong term impact of advancing private capital markets
Commoditizing private capital
Investment crowdfunding has one key purpose:To enable efficient access to private capital
Accelerating economic growth
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The New Capital Market
Scaling the model for all exemptions
To enable efficient access to private capital
Accelerating economic growth
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FrontFundr is a trade name of Silver Maple Ventures Inc.(SMV). SMV is a registered Exempt Market
Dealer in Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario, Quebec,
Saskatchewan.
Sign up at FrontFundr.com
Sean Burke - COO
778-772-2908 (direct)
604-563-5990 (office)
Jill Earthy - CGO
604-290-4236 (direct)
604-563-5990 (office)
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