Crowdfunding overview and categories “Crowdfunding” or “Peer to Peer Lending” can be define as an approach to raising capital required for a new project or enterprise by appealing to large numbers of ordinary people for small transactions. The web-based Crowd Phenomenon has been gaining tremendous momentum over past 24 months.
CROWFUNDING
Since 2005
Market share
Concept born in the United States where the transaction volume was about 1.16 billion US$ in 2009. Gartner(1) forecasts Crowdfunding volume to read 3.3 billion US$ outstanding loan volume in 2013..
Since 2010
Since 2008
Since 2005
Charities
Consumer lending
Creative suport
Business Growth
Social cause
Financial cause
Common interest
Socio Economic cause
Donation
Loan with fixed interest
Alternative return
Variable return / Equity
15%
80%
4%
Kiva.org
Zopa.com
kickstarter.com
<1% Mymicroinvest.com
(1) Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company
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The Crowdfunding concept is emerging in Europe The ÂŤ Crowdfunding Âť keyword has become a common name on Google database and is related to more than 1.500.000 results. Google trends (chart on the left) shows how researched is the Crowdfunding keywords related to the Google average = Maximum index. . 45% of researches on that keyword are made from Europe. Each month 36.000 researches are made on Google including the keyword Crowdfunding
The 10 biggest European Crowdfunding platforms raised 100 million Euros during the last 9 months
+58% in 9 months
On average each platform raises approx. 1 million euro per month This Crowdfunding presentation has been made by http://www.mymicroinvest.com If you have question visit our website or contact us at contact@mymicroinvest.com2
A young and innovative crowdfunding market that offers different kinds of investment target FRENCH AND BELGIAN CROWDFUNDING PLATFORMS
Financing target
Financeutile.com Startups / SME
Mymicroinvest.com
Akamusic.com Music Band
Sandawe.com Comics
Localization
France
Belgium
Belgiun
Launch date
nov-09
March-08
Jan-10
Minimum invest:
500 €
5€
10€
800 000 €
1 700 000€
146 000€
Number of investors registred
4 800
7 000
1 600
Average transaction
2 900€
75 €
200 €
4
87
6
7 years
5 years
3 years
Investment volume
Project being financed Years before exit
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Volume raised and launch date for players in the consumer lending and business growth category Consumer lending platforms
Business Growth platforms
Kâ&#x201A;Ź
Kâ&#x201A;Ź
13.000
140.000
1.500
1.250 50.000 1.000
750
750
500
500
250
250
2005
2006
2007
2009
2010
2009
Q1 10
Q2 10
Q3 10
Q4 10
Q1 11
This Crowdfunding presentation has been made by http://www.mymicroinvest.com If you have question visit our website or contact us at contact@mymicroinvest.com4
Kiva.org Key figures analysis Kiva's key figures Total value of all loans made through Kiva: Total capital available: Number of Kiva Users: Number of Kiva Users who have funded a loan: Number of loans that have been funded through Kiva: Average loan size Average total amount loaned per Kiva Lender (includes reloaned funds): Average number of loans per Kiva Lender: Amount invested per lender
$204 799 675 $19 153 837 907 213 571 731 274 564 $381,81 $225,80 6,74 $33,5
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How medias impact the Kivaâ&#x20AC;&#x2122;s growth
Kick off
1 year flat
This Crowdfunding presentation has been made by http://www.mymicroinvest.com If you have question visit our website or contact us at contact@mymicroinvest.com6
Overview of the consumer lending or Peer to Peer lenging players Launched: Members Money Matched Default rate:
ZOPA March 2005 400 000 EUR 141 m 0.7pc
Fee paid by lenders:
1pc of the amount lent
Fee paid by borrowers:
Profile of borrowers: How checked:
Average return for lenders: Fund to cover bad debts:
SMAVA March 2007 21 000 EUR 47m 0.6pc
1.35pc of the amount lent & 0.5€ / Month Flat fee of £124.50 once 2.5pc of loan once it's loan is approved agreed (min of 60€)
YES-SECURE.COM June 2010 5 145 EUR 295.000 None. Expected default rate of up to 12pc for higher-risk borrowers
0.9pc £80 flat
Only lower-risk borrowers accepted, generally A* to C credit record through Equifax , Experian or CallCredit.
From A to H (according to From A* to E SCHUFA criterias)
8.1pc over past year, after charges No
from 6,2pc 15,2pc
Grade dependent on credit reports from SCHUFA
?
RATESETTER October 2010 21 278 EUR 827,000 None so far, expected rate lower than 1.4pc
QUAKLE October 2010
EUR 18,000 None. For A and B-rated borrowers it is anticipating a default rate below 1pc; for C and D-rated borrowers less than 3pc 10pc of the interest they N/A receive £115 flat fee for a three- 1.5pc of loan once it's year loan; £5 monthly agreed charge in the rolling market Prime risk, primarily A Lower end – 70pc of and A* borrowers are C-rated
Rating based on Credit reports from CallCredit report. YesEquifax and CallCredit, Secure asks for a copy of plus manual assessment. their payslip and a recent bank statement Rates advertised from 7pc for three-year loans; 15pc to 30pc 3.3pc in monthly market No, but plans to launch Yes one soon (people rated by their community)
Grade dependent on credit reports from Equifax 23.5pc No
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Overview of the main Crowdfunding platform for startups Launched:
COFUNDIT June 2010 (SWLD]
FUNDING CIRCLE August 2010 (UK)
Model
Debt
Debt
Amount lent/invested to date:
250K€
Nb of investors
15 (48 members)
Average invest
5.200€
Nb of startups financed
1
13m€ (bid on loan requests) 1600 (3.500 members) 730€ (Account £3.000) 107
Minimum invest
2 000 €
£20
Description
Business Loans, Expert Analysis and Private Investments using Crowd Funding and Open Innovation
Peer to Peer Social connect developers Raise money for your Lending to Businesses with funders to business. Let your - People lend to lots realize innovative community help. of creditworthy mobile apps for Apple businesses to spread iOS and Android. their risk
Terms
The loan lasts no more than 3 years Existing and proved businesses with short term repayement capacity 100 €
Loans last for 1 or 3 years Existing and secured App Builders businesses
Loans last for 1 to 3 years Entrepreneurs and small businesses
No fee
No fee
Type of Startup
Registration Fee
BELIEVERSFUNDS PROFOUNDER October 2010 (BEL) November 2010 (USA) Preorder / revenue Revenue share share 20K€ 237K€
crowdcube.com Feb 2011 (UK)
1080
262
108
250€
900€
255 €
13
11
0
10USD
NA
10£
No fee
Equity 2,8K€
Crowdcube (U.K. only), which will allow funders to purchase equity in startups, although they need to be friends and family N/A Entrepreneurs and small businesses £250
From EUR 100k up to up to £50.000 No range From 30K£ to 200K£ EUR 2.0 Moi 5% of funding upfront fee of 2 per 21% (VAT) and 4% ProFounder makes 5% of funding This Crowdfunding presentation has been made by http://www.mymicroinvest.com If you have question charged visit our on website or contact us by at contact@mymicroinvest.com 8 cent the premoney charging a Financing ranging Fee paid by investor
Traffic Analysis for the main crowdfunding platforms Traffic per month Traffic per day % local Total Local Total Global Months online
Believrsfund 30 000 1 000 10% 3 000 27 000 3
crowdcube 57 960 1 932 43% 24 923 33 037 4
Profunder 116 100 3 870 50% 58 050 58 050 6
Fundingcircle 64 140 2 138 71% 45 539 18 601 7
Cofundit 17 430 581 31% 5 403 12 027 11
Wiseed 33 000 1 100 86% 28 380 4 620 16
Growvc 88 410 2 947 20% 17 682 70 728 30
Volume du trafic mensuel (Nombre de visiteurs locaux et globaux)
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How are the Crowdfunding users?
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Mymicroinvest.com micro Ce qui motive les gens d’investir via le crowdfunding
Drivers…
Réalisation de soi +
Charity Creative Support
I am part of a community
What/Why? What/Why?
Contribution/Community
Donation/Social I do something good ROI -
Dilemme du Crowdfunding dans le cadre de l’investissement dans les start-ups.
Business Growth
I am an Investor
ROI +
What/Why
Investment/Recognition & ROI
What/Why
Investment/ROI Consumer Lending
I am making money
This Crowdfunding presentation has been made by http://www.mymicroinvest.com If you de have visit our website or contact us at contact@mymicroinvest.com11 Réalisation soiquestion -
Mymicroinvest.com micro Le financement collectif de startups Le dilèmme du crowdfunding pour le financement d’une start-ups Emotional motivations I am great
“I am exceptional”
I am a Business Angel!
I help entrepreneurship!
I am investing in the real economy!
Rational barriers Yes, but I am not dump
“But… Am I going to earn money?
Quality of startups and ROI? My role and Freedom as Investor?
How serious/credible is the structure?
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