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Asia Pacific

Three Key Trends that Will Change Crowdfunding in 2015

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Asia Pacific

Asia Pacific

Good Afternoon

Asia Pacific

Adrian KohGeneral Manager (APAC)

Asia Pacific

Business-Building

Crowdfunding

Asia Pacific

Stages of funding

Private Investors PE FirmsAngels VCs

Pre-seed Seed A B, C, etc Pre-exit Exit

Business Building Crowd Investment

Crowd Investors

Business Owner

Business Building Crowd Investment

Private Investors

PE Firms

Angels

VCs

Stages of fu

nd

ing

• Campaigns raised over US$16 million over four years;

almost US$10 million in 2014 alone

• Median investment of US$600 per investor, but mean

investment of more than US$4,000 (for reward based

campaigns S$80); investors have been known to invest as

much as US$100,000 per investment

• FundedByMe experienced growth of 600% from Q4 2013 to

Q4 2014

Cool Insights from Our (Short) Four-Year History

What’s Starting in

Asia

Trends Driving the

Asia Revolution • Online marketplace

popularity (explosion of

retail e-commerce)

• Social media penetration

and savvy

• Success and popularity

of crowdfunding

• APAC to outspend North

America by $40bn, 45%

of all buyers worldwide

• 52% of social media

users and 47.6% of

mobile users.

• Singapore top ten

worldwide for

crowdfunding Source: Asia Briefing 2014, Wearesocial 2014.

Asia = Growth

2/3s of global middle class will live in Asia by 2030,

with 3.5bn coming from emerging economies

The Emerging Aspirations

Credit: Eden Strategy Institute 2013

Asia Pacific

• The Social, Mobile, Chat-Obsessed Citizen

• Economics of E-Commerce and E-Finance

• Innovation: From the 99% to the 70%

Important Trends

in 2015 and beyond

Asia Pacific

The Social, Mobile,

Digital Citizen

• Crowdfunding will gravitate to accommodate the mobile user

(shorter, more concise offerings, building credible, long term

relationships)

• Low resistance, high-speed payments

• The rise of the instant micro-investor

What does this mean for us?

Asia Pacific

Economics of

Ecommerce

The New Wallet

Alipay: Now Serving 1T

P2P Lending

P2P Lending

• Prevalence and growth of ecommerce usually predicts

strong growth in online-powered P2P financing services

• Developing world is quickly adopting these new forms, leap-

frogging developed economies

• Governments are just starting to realise this; Asia Pacific

markets are warming to securities-based crowdfunding

What does this mean for us?

Asia Pacific

From the 99% to the

70%

• Trends: Fintech innovations like M-PESA, a Mobile Phone Payment System by Safaricom in Kenya (12.2M active customers compared to 5.4M with bank accounts, 122k agents, 67% has access Oct 2014 compared to 41% in 2009)

• Cryptocurrency Innovations on phones to enable unbanked to hold money

• Social innovations to perform a form of KYC / background checks on people who have no formal credit history

Reaching the Unbanked - 70% of APAC

• Impact crowdfunding will become a powerful empowerment

tool for businesses in developing nations

• As crowdfunding and digital financing services continue to

innovate, it will start to open new opportunities among

unreached / unbanked, e.g. cryptocurrency

• Fintech will trickle back to developed nations from

developing nations

What does this mean for us?

Thank You“How can the crowd

investment industry

overcome the challenges of

breaking into traditional

Asian markets?”