BASICS OF AN EQUITY CROWDFUNDING

CAMPAIGN

ALESSANDRO M. LERRO

WWW.LERRO.ITVENICE 2015

©2014 A

.M. Lerr

o

INNOVATION IS DRIVEN

BY BREAKTHROUGH AND

DISRUPTIVE NEW IDEAS

SKILL

PASSION

LOVE

©2014 A.M. Lerro

©2014 A.M. Lerro

SLICED BREAD

15 YEARS

TO HAVE SUCCESS

Otto Rohwedder

1928

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.M. Lerr

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BU

SIN

ESS

PLA

NN

ING

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CASH NEED

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.M. Lerr

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ANGEL INVESTORS

©2014 A.M. Lerro

VENTURE CAPITAL

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ANGELS & VENTURE CAPITAL :

2012: $ 51,7 BL 58% IN USAAVERAGE $3ML

©2013 A.M. Lerro

©2013 A.M. Lerro

By 2025 the volume of INVESTMENT CROWDFUNDING will be:

> $92 billions= 1,6% of household savings≈ 2 x total Venture Capital volume

©2013 A.M. Lerro

CROWDFUNDING REWARD ?

©2014 A.M. Lerro

TARGET: $250,000

FUNDING: $2,400.000

9.588 BACKERSIN 30 DAYS ON KICKSTARTER

SOLD TO FACEBOOK FOR:

$ 2,000,000,000

©2014 A

.M. Lerr

o

EQUITY CROWDFUNDING

©2014 A.M. Lerro

THE AMERICAN

POINT OF VIEW

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POINTS OF VIEWTHE EUROPEAN

POINT OF VIEW

©2014 A.M. Lerro

1 MONTH

INVESTORS: ≈ 525 IN EQUITY

MINIMUM TICKET: 5,000$

AVERAGE INVESTM.: 12,000$

MAXIMUM INVESTIM. : 1,200.000$

> $ 7,3 MILLIONS

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.M. Lerr

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©2014 A.M. Lerro

2 MONTHS

INVESTORS: 12 IN EQUITY

MINIMUM TICKET: 5.000 €

AVERAGE INVESTM.: 40.000 €

MAXIMUM INVESTM.: 140.000 €

€ 520.000

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.M. Lerr

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©2014 A.M. Lerro

A DEAL FOR ANGELS ?

ANGEL INVESTING

REVOLUTION

SAVE TIME

SAVE MONEY

SYNDICATE & LEVERAGE

EXTEND NETWORKS

REDUCE RISKS

©2014 A.M. Lerro

TARGET

COMPANIESEMITTENTI

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INNOVATIVE COMPANIES

©2014 A.M. Lerro

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.M. Lerr

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STATUTES

INNOVATIVE COMPANIES

©2014 A.M. Lerro

INNOVATIVE COMPANIESDifferent Levels

For

Start-Up / SME

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TAX

ADVANTAGES

INNOVATIVE COMPANIES

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.M. Lerr

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STRATEGIC

MARKET POSITION

COMPETITIVE POSITION

OPPORTUNITIES AND THREATS

FINANCIAL

FINANCIAL STATEMENTS

ASSETS & LIABILITIES

TAXES

LEGAL

LEASES

INTELLECTUAL PROPERTY

LAW SUITS

EMPLOYEES

CONTRACTS

QUALITY

COMPENSATION

RETENTION

SUPPLIERS

CONTRACTS

LIABILITIES

OTHER

SYSTEMS & TECHNOLOGY

ENVIRONMENT

CORPORATE SOCIAL

RESPONSABILITY

DUE DILIGENCE

©2014 A.M. Lerro

WHY INVESTING:- CAPITAL GAINS

- DIVIDENDS

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CLASS A/BSHARES

DIR

ECT

OR

S -

SU

PER

VIS

OR

S

CO

NS

ULT

ING

BO

AR

DS

ANTI-DILUTION

AGREEMENTS

EXIT STRATEGY CORPORATE

GOVERNANCE

TAG ALONG

SALARIES

DRAG

ALONG

©2014 A.M. Lerro©2014 A.M. Lerro

CA

PIT

AL

INC

REA

SE

©2014 A.M. Lerro

CAPITAL INCREASEEXAMPLE

CASH NEED 100.000

COMPANY VALUE 500.000

CAPITAL INCREASE 20%

(NOMINAL CAPITAL) 2.000

(PREMIUM) 98.000

100.000 EURO BUY 20% OF THE COMPANY

CA

PIT

AL

INC

REA

SE

©2014 A.M. Lerro

COMMUNICATION

MARKETING

ADVERTISING©2014 A.M. Lerro

©2014 A.M. Lerro

REWARD-BASED FEATURES

AS INCENTIVE

DISCOUNTS

OPTIONS

REWARDS

VIP STATUS©2014 A.M. Lerro

PICK UP

THE RIGHT

CROWDFUNDING

PLATFORM

©2014 A.M. Lerro

INVESTMENT

EXECUTION

©2014 A.M. Lerro

SMALL INVESTMENTS

• Directly managed

• NO MIFID

LARGE INVESTMENTS

• Through BANKS or INVESTMENT COMPANIES

• MIFID profiling

©2013 A.M. Lerro

SMALL INVESTMENTS:

INDIVIDUALS:< 500€ per investment< 1000€ per year

COMPANIES:< 5.000€ per investment< 10.000€ per year

©2013 A.M. Lerro

INVESTOR’S

IDENTIFICATION

ANTI-LAUNDERING

RULES

TEST INVESTOR’S PROCLIVITY TO

RISKY INVESTMENTS

MIFID:

©2013 A.M. Lerro

TRANS-NATIONAL INVESTMENTS©2014 A.M. Lerro

ASIA IS JUST STARTING TO DEAL WITH

CROWD -INVESTMENT

©2014 A.M. Lerro

U.S.A. REGULATIONS ARE VERY RESTRICTIVE.

WHAT HAPPENS WITH NON U.S. INVESTORS IN U.S.A.? ARE

AMERICAN INDIVIDUALS ALLOWED TO INVEST ABROAD ?

©2014 A.M. Lerro

E.U. BROKER DEALERS HAVING E.U. PASSPORT MAY

OPERATE THROUGHOUT THE E.U..

WHAT HAPPEN WITH NON E.U. INVESTORS ?

©2014 A.M. Lerro

INVESTORS©2014 A.M. Lerro

IT’S NOT GAMBLING

ITALY:SCRATCH CARDS: € 10,2B

LOTTO: € 6,8 B

©2014 A

.M. Lerr

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©2014 A

.M. Lerr

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©2013 A

.M. Lerr

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EDUCATION

WIT

H D

RA

WA

L

NO RECKLESS INVESTMENTS

TAG ALONGM

IFID

INFORMATION

NO INVESTMENTLIMIT

CURATE THE CROWD

RESPECT THE CROWD

BE LOYAL

GET FEEDBACK

PROVIDE INFORMATION

©2014 A.M. Lerro

alessandrolerro