Online Investing in the Private Markets - frontfundr.com€¦ · The Company's KYP due diligence process and KYC suitability obligations are described ... $3,100 Median: $600 Repeat

February2018

OnlineInvestinginthePrivateMarkets

MATERIALCONFLICTOFINTEREST:In accordance with National Instrument 31-103 Registration Requirements, Exemptions andOngoingRegistrantObligations (“NI31-103”)and itsCompanionPolicy (“NI31-103CompanionPolicy”),theCompanyisdisclosingthefollowingmaterialconflictofinterest:TheCompanyisofferingsecuritiesthroughitsownonlineplatform,whichpursuanttoNI31-103impliestheCompanyisaConnectedIssuerofitself.ThismeansthattheCompanyhasperformeddue diligence (‘Know-Your-Product’), as described in NI 31-103, on itself. Furthermore, theCompany is trading in its own securities with respect to its ‘Know-Your-Client’ and Suitabilityobligations. The Company's KYP due diligence process and KYC suitability obligations aredescribed in Section 2.2 - Our Business, within this Offering Memorandum. The Companyresponds to this material conflict of interest by disclosure on its online platform and in thisofferingmemorandum.

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FORWARDLOOKINGSTATEMENTS:Thispresentationandcertainstatementsmayconstituteforward-lookingstatements.Termssuchas“expect”,“believe”,“continue”,“goingforward”,“expand”,and“grow”,aswellassimilarcomments,areforward-lookinginnature.Theseforward-lookingstatementsinclude,butarenotlimitedto,referencestofuturecapitalinvestment,financialguidanceofanykind,businessstrategiesandmeasurestoimplementstrategies,competitivestrengths,goals,expansionandgrowthofthebusinessandoperations,plansandreferencestothefuturesuccessortheriskprofileofthecompany.Theseforward-lookingstatementsarebasedoncertainassumptionsandanalysesmadebymanagementinlightofitsexperienceanditsperceptionofhistoricaltrends,currentconditionsandexpectedfuturedevelopmentsaswellasotherfactorsitbelievesareappropriateinthecircumstances.However,whetheractualresultsanddevelopmentswillconformwiththeexpectationsandpredictionsaresubjecttoanumberofrisksanduncertaintiesincludingavailabilityandcostofcapital,generalbusinessandeconomicconditions,andotherfactors,manyofwhicharebeyondthecontrolofthecompany.Shouldoneormoreoftheserisksmaterialize,orshouldassumptionsunderlyingtheforward-lookingstatementsproveincorrect,actualresultsmayvarymateriallyfromthoseasdescribedherein.Consequently,alloftheforward-lookingstatementsmadeinthispresentationarequalifiedbythesecautionarystatements,andtherecanbenoassurancethatactualresultsordevelopmentsanticipatedbymanagementwillberealizedor,evenifsubstantiallyrealized,thattheywillhavetheexpectedconsequencesto,oreffectson,thecompany.

DISCLAIMER:TheinformationcontainedintheSilverMapleVenturesInc.(registeredtradename“FrontFundr”)marketingmaterials(the“MarketingInformation”)isnotpartofanofferingmemorandum,subscriptionagreementorothersuchofferingdocument.TheMarketingInformationmaycontainreferencesandinformationaboutFrontFundr.TheMarketingMaterialsareforinformationalpurposesonly.FrontFundrusesreasonableeffortstoprovideuptodateandaccurateinformationinitsMarketingMaterials,however,errorsandomissionsmayoccur.Further,anyperformancedatathatmaybeexpressedintheMarketingMaterialsisanindicationofpastperformanceonlyanddoesnotindicateorguaranteefutureresults.NoinformationintheMarketingMaterialsshouldbeconstruedasasolicitation,offer,recommendation,representationofsuitabilityorendorsementofanysecurityorinvestment.OfferingsofsecuritiesinFrontFundraremadeonlybyaprivateplacementmemorandum,offeringmemorandumorsubscriptionagreementdistributedbypersonsauthorizedbyFrontFundr.

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DemocratizingThePrivateMarkets

Changinghowcompaniesraisecapital

Providingaccessforallinvestors

OperatingasonlineExemptMarketDealer

4

TheProblem

ThepubliclockedoutfrominvestinginprivatecompaniesNoefficientonlinechannelsintheprivatecapitalmarkets

5

OurSolution

6

Simple

Transparent

Accessible

MarketOpportunityinCanada

7

GoldmanSachspredicts1.2trillionglobalmarket

PublicMarkets $41bn

PrivateMarkets$100bn

RepeatPublicOfferings

InitialPublicOfferings $1bn

$40bn

VentureCapital

AngelInvesting $0.2bn

$3.2bn

PrivateEquity $13.7bn

FixedIncome/Other $82.9bn

Sources:CVCA(2017),TMX(2017),OSC(2017),GoldmanSachs(2017)

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EARLYSTAGE EXPANSION ACQUISITION/BUYOUT

$20M+$25K

Ownmoney,Friends&Family

SeedCapital

Start-upCapital

GrowthandSuccessionCapital

3rd-4thRounds/Mezzanine

Angels/PrivateInvestors

Angel/VentureCapital,Debt,Junior

PubCo’s

PrivateEquity&PublicFinancing

$500KApproximateCapitalRaiseRange

OurFocus

CuratedDeals

FrontFundrDueDiligence

Team

Pre-screen

DueDiligence

InvestmentReviewCommittee

LeadInvestors

and

Partners

Listing

9

RevenueModel

$3,500–15,000ListingFees

10

RecurringFeesOnboardingFees TradeFees

Post-DealShareholder

CommunicationServices

(comingsoon)

6-8%Cash

6-8%Warrants

PortalCustomization

CorporateAdvisoryServices

Competition

AllInvestors

Accreditedinvestors

OfflineTransactions

OnlineTransactions

Traditionalbrokers

11

0

50

100

150

200

2011 2012 2013 2014 2015

VC&PE

EquityCrowdfunding

Source:BeauhurstResearch,2016

WhereWeAreGoing

Numberofseedstagedeals

OnlineInvestinginPrivateCompaniesalreadymainstreamintheU.K.12

TrackRecord

13

14

R

Largestsingle-dayamountforequitycrowdfundingcampaign:C$508,500

KeyMetrics

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Totalusers:16,000Activeusers:8,000Investors:2,500

Averageinvestment:$3,100Median:$600RepeatInvestors:10%

DealsClosed:16

TotalRaises:$8mThroughFF:$3m

Pipeline:20Seeking:$12million

Revenuesperinvestor:$40–$6KTotalRevenues2017:$340K

BuildingtheonlinePrivateMarketplace

16

Platform

ReferralPartners

Incubators/Accelerators

Angels/VCs

DigitalMarketing

InvestorNetworks

Intermediaries&Advisors

Two-sidedmarketplaceaccessibleformulti-channelusers

Companies

Investors

PlatformDevelopmentStrategy

•  Raise$3–20million•  Equity,debt,units•  Exemptions:OM,AI,FF&BA•  DealSyndication•  Pre-IPO•  InitialCoinOfferings(ICOs)

•  Access/DashboardforInvestmentAdvisors,DealerReps,WealthManagers•  Accesstoalldeals(FrontFundr+PrivateMarkets)

•  Startup/SeedCapitala•  Raise$250Kto$3million•  TypicallyEquity•  Exemptions:CrowdfundingRules,OM,AI,FF&BA

ProprietaryTechnologyPlatform

Startupinvesting PrivateMarkets AdvisorPlatformPortal

FrontFundrPortal

17

ExecutiveLeadershipTeam

18

MovingForward

19

BestPlatformDemocratizingthePrivateMarkets

BuildOutInvestorCommunity

PlatformDevelopment

Sales&Marketing

DealProjections

20

-

1.0

2.0

3.0

4.0

2017 2018 2019 2020

AverageCapitalRaise($million)

-

25

50

75

100

2017 2018 2019 2020

Deals

AgencyAgreementsSignedDealsClosed

FinancialProjections

21

0

2,000

4,000

6,000

8,000

2016 2017F 2018F 2019F 2020F

P&LProjections($1,000s)

NetRevenues OperatingExpenses

0%

25%

50%

75%

100%

2016 2017F 2018F 2019F 2020F

RevenueComposition

TradeFees DueDiligence&ListingFees

TheAsk

22

$1.5millioncapitalraise($350Kcommitted)

$6millionpre-moneyvaluation

23

UseofProceeds

TeamRetention

Sales&Marketing

Screening&Compliance

PlatformDevelopment

20%

30%

30%

10%

BusinessDevelopment 10%

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Peter-PaulVanHoekenFounder&CEO604-787-2345(direct)604-563-5990(office)[email protected]

FrontFundr is a trade name of Silver Maple Ventures Inc.(SMV).SMVisaregisteredExemptMarketDealerinAlberta, British Columbia,Manitoba, New Brunswick, NovaScotia,Ontario,Quebec,Saskatchewan.

FrontFundrisamemberof:

ThankYou

SeanBurkeCOO778-772-2908(direct)604-563-5990(office)[email protected]

JillEarthyCGO604-290-4236(direct)604-563-5990(office)[email protected]

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FrontFundrinTheNews

FighttheMan’SkiResortLeadsCrowdfundingtoSnubVailhttps://www.bloomberg.com/news/articles/2017-11-01/-fight-the-man-ski-resort-leads-crowdfunding-to-snub-vail