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FundedCity.com pitch deck
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Disrupting commercial mortgage lending
Tony Sinclair07707 410 248tony.sinclair@gmail.com
20/97 Curtain RdLondon EC2A 3BS
Problem
Lending ● Reduced bank lending since 2008● 40% lending gap in the commercial mortgage market● Pain: Property developers need to find new ways to finance deals
Investment● Secure investments are earning all-time low interest ~ 2%
Solution
A vehicle for property developers to access 40% mortgage gap
BUSINESS OWNERS
Raise expansion
capital
INVESTORS
Average 8% interest p.a.,paid monthly
Market SizeUK commercial property market ● £647 billion in 2013● Growing 11% per year
Global peer to peer lending market● £5.4 billion projected in 2014● £14 billion projected in 2020● £500 billion projected in 2025
Property market figures from ipf.org.uk (March 2014): The Size and Structure of the UK Property Market.
Crowdfunding figures from Forbes and crowdsourcing.org
Business Model● Platform connecting property developers and investors● Enables the general public to invest in commercial mortgages
Revenue streams● 10% of funds raised per property● 1% per month loan interest
● Users paid average 0.75% interest per month● Free to signup - No fees from users
TechnologyProprietary high volume trading platform
Proprietary deal status and investment performance funnel
Automatic user credit risk profile
Automatic distributions and repeatable sales
Bank grade security with full audit log
Dev co-founders built hedge fund platform with $20B AUM
http://preview.fundedcity.com/username: previewpassword: gamechanger
http://preview.fundedcity.com/username: previewpassword: gamechanger
http://preview.fundedcity.com/username: previewpassword: gamechanger
Marketing and Sales
Email & Direct Mail
350,000+ broadcast
Finance and property investor networks
PR
Local and national
Tech and finance
Press and digital
Digital Branding
Remarketing banners
PPC brand keywords
Organic content distributed through LinkedIn, Twitter and
Competition
Lend Invest● £10,000 minimum investment● Mixed commercial and residential● £70M raised from the crowd
Low buy-in
High buy-in
Weak asset class
Strong asset class
Funding CircleSeedrs
● No security● Investing in high risk startups● Investing in personal loans
● £500 minimum investment● Central London commercial
Property CrowdProperty MooseHouse Crowd
● £100K residential property● Low profile locations
Solid Founding TeamLaurence Bilton, Godfrey Bilton
● Family of UK commercial property developers● £300M IPO on housebuilding business in 1972
John Young● Built tech backend for hedge fund with $20B AUM
Lee Benson, Pete Craig, Anthony Sinclair● Entrepreneurial marketers built and exited 25 online businesses● Former COO built sales team with £5M revenue● Generated $2M revenue in 24 hour crowdfunding campaign
Wayne Miller● Multiple eight-figure exits in ICT / telecoms● Ernst & Young Entrepreneur of the Year Award Winner
Bob Kidby● Former Head of Property at Lovells Commercial Property Law (£750M turnover)
Four Year Financial Projection
2015 2016 2017 2018
Gross revenue 476,000 3,409,700 4,557,000 7,651,000
Net revenue (56,988) 1,542,654 2,730,016 5,060,217
OPEX 486,416 1,481,383 1,144,481 1,325,728
EBITDA (10,416) 1,928,317 3,412,519 6,325,272
For simplicity, OPEX and COGS are fungible in this projection.
All figures GBP
Offer£300,000 seed
● For 30% equity● £600,000 repaid from revenue in Years 2 and 3● Ratchet to 5% equity on repayment
● FCA compliance and legals (£94,000)● Sales and marketing (£163,000)● Operations (£43,000)● Provides a ten month runway to reach profit
£250,000 loan stock ● Ensure early deals are fully funded● We can pay 10% interest p.a. on this capital
Tony Sinclair07707 410 248tony.sinclair@gmail.com
http://preview.fundedcity.com/username: previewpassword: gamechanger
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