Post on 16-Apr-2017
transcript
www.seedrs.com
Equity Crowdfunding – An avenue for growth
• Tom Hörbye – Campaign Development Associate
3rd November 2016
• @t_horbye
Great ideas are everywhere
Investors aren’t… because it’s hard
Finance has changed
What are the different types of
crowdfunding?
Types of crowdfunding
Rewards
Money in exchange for perks
Backers
Altruistic
Best for creative products and to pre-sell products
Types of crowdfunding
Rewards
Money in exchange for perks
Debt
Money in exchange for interest yielding returns
Best for businesses with a track record of revenues
Backers Lenders
Altruistic Lower Risk
Best for creative products and to pre-sell products
Types of crowdfunding
Rewards
Money in exchange for perks
Debt
Money in exchange for interest yielding returns
Equity
Money in exchange for shares
Best for businesses with a track record of revenues
Best for growth-focused companies in areas where there’s potential for return
Backers Lenders Investors
Altruistic Lower Risk High Risk
Best for creative products and to pre-sell products
Is my business ready for equity crowdfunding?
Pre-seed Seed Early-Stage Growth Expansion MaturityS
ME
Rev
enue
SME Development Stage
Friends and Family
Rewards-Based Crowdfunding
SM
E R
even
ue Pre-seed Seed Early-Stage Growth Expansion Maturity
SME Development Stage
Friends and Family
Rewards-Based Crowdfunding
Business Angels
SM
E R
even
ue Pre-seed Seed Early-Stage Growth Expansion Maturity
SME Development Stage
Friends and Family
Rewards-Based Crowdfunding
Business Angels
SM
E R
even
ue
Venture Capital
Pre-seed Seed Early-Stage Growth Expansion Maturity
SME Development Stage
Friends and Family
Rewards-Based Crowdfunding
Business Angels
Venture Capital
Debt (P2P and Banks)
SM
E R
even
ue Pre-seed Seed Early-Stage Growth Expansion Maturity
SME Development Stage
Friends and Family
Rewards-Based Crowdfunding
Business Angels
Venture Capital
Private Equity
IPO
Debt (P2P and Banks)
SM
E R
even
ue Pre-seed Seed Early-Stage Growth Expansion Maturity
SME Development Stage
Friends and Family
Rewards-Based Crowdfunding
Equity Crowdfunding
Business Angels
Venture Capital
Private Equity
IPO
Debt (P2P and Banks)
SM
E R
even
ue Pre-seed Seed Early-Stage Growth Expansion Maturity
SME Development Stage
The Equity Crowdfunding Market Today
Tens of thousands of people have now had the chance to invest in businesses they believe in
5%Thousands of businesses have been given a new and efficient way to raise capital
Early-stage investment
Seedrs
Over 400 funded deals
Over £160 million invested
Pan-Europeanplatform
Most active investor in private companies in the
UK*
* Beauhurst report – The Deal H1/16
Why should your business consider raising finance through equity crowdfunding?
But first, let’s dispel one misconception…
But first, let’s dispel one misconception…
…a business doesn’t have to crowdfund OR raise from Angels/VCs
E.g. Seedrs £10m Series A
+£7.5m £2.5m
from hundreds of crowd investors
6 reasons why your business should raise financing through equity crowdfunding
#1 Money
#2 Validation
#3 Efficiency
#4 Speed
#5 Engagement and added value
#6 Marketing
Things to get sorted before you start equity
crowdfunding
1) Do you have your team in place?
2) Have you done everything that you can do without money?
3) Do you have a marketing strategy in place to promote your campaign to investors?
4) Have you talked to your own network to assess their willingness to invest?
5) Will you be able to create an awesome video to support your campaign?
Crowdfunding myths
“ “Businesses crowdfund because they can’t raise capital from VCs
or angels
“ “VCs don’t invest in crowdfunded businesses
“ “The crowd is ‘dumb money’
“ “Businesses looking to raise from the crowd are
overvalued
“ “Crowdfunding is an easy way to get investment
Businesses that have grown through equity crowdfunding
Curious Brew raised over £1,750,000
from 900 investors
Oppo has raised £650,011
from 666 investors
Landbay has raised over
£2,600,000 from 970 investors
www.seedrs.com
Thank youtom.horbye@seedrs.com@t_horbye