CROWDONOMIC MEDIA

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Panel: Building a Conducive Environment for Equity-Based Financing & Innovative Financing Platforms

May 21st, 2015

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Crowdonomic Overview: Largest and Fastest Growing Crowdfunding Platform in SE. Asia

Business Summary• Launched in Jan. 2013

• Fin-Tech business

• Asia play

• Portfolio – ECF / P2P

Performance• Largest and one of the longest running

locally originated CF platform

• Dbl-digit membership growth rate

• >1,500 financing requests; Zero cases of fraud

Platforms and Collaborations• Proprietary Technology

• First-to-world Collaborations• Telecom: Starhub; Indosat• Media: Channel News Asia• Global: WWF / EarthHour

Organization• Fin-Tech experts

• SG, MY, Indonesia (WIP)

Highlights: Asia Equity Crowdfunding (ECF) Trends and Trajectory

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• CF Journey: From Novelty to Financing

• Potential: Disrupting “Fundraising” to “Financial Services”

• Asia = CF Power House; China = Scale; SE. Asia = Growth

• Market-Driven Evolution: Business Model; Partnerships; Regulations

• Policy: Competitive Policy vs Inertia / Over Regulation

• Investment CF on Accelerated Trajectory; Outpace Reward/ Donation

Crowdfunding… This is Finance 2.0What it is: Crowdsourcing for venture capital

How it Works: Fundraising accelerated by the power of social media and harnessing the wisdom of the crowds

Fill standard offer templates

Publish Online

Advertise via social media

Access virtual investor community

Reach $ targetGrow your business

Smaller amounts of money from many people to reach higher targets

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Technology and Social Media as a

Key Enabler

It will be a Game Changer for both Start-ups and Investors

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Efficient outreach to multiple investors via internet

Issuers

Low – mid digit FRsRecord millions

8 -12 weeksAverage online fundraise period

Centralized deal sourcing platform

Investors

Crowdsourced due diligence community

$1 to 5KBite-sized investments to

diversify investment portfolio

Highly Curated; Listing rates mid-low single digits

Shareholders can be bundled up into a

vehicle

More efficient and informed allocation of

increased capital

Professional Investors can lead syndications

“I’ll be stuck with managing Thousands of Shareholders!”“High Risk of Fraud”

Businesses will be stuck with Dumb Capital Will fuel a Bubble

Key Challenges are being Addressed

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Post-crowdfunding Issuer Performance Above or Consistent with Industry Benchmarks

Business Survival Rate

Follow-on Investment Rate

Exit Multiple for Crowd Investors

86% 71% x10+

*1 *2 *3

*1: 86% of all sampled Equity Crowdfunded businesses still operational on ASSOB since 2005 vs 59 % of companies still in business 3 year after establishment according to US Bureau labor of statistics

*2: % of sampled Equity Crowdfunded businesses by Crowdfund Capital Advisors who have already secured follow on investments (28%) or were in discussions (43%)

*3: Rewalk estimate: Rewalk raised $1.3 mn via ECF platform in 2013. IPO valuation was $191M in September ’14. At its maximum, its market valuation was $428 mn

Source: Various; Crowdonomic Team analysis

On the Way - Asia CF Power House; China Dominates in Scale; SE. Asia the Breakout Region in Growth

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ChinaEast Asia & PacficS.AsiaEurope & Central AsiaLatin AM / CRBNMENAAfrica

Low High

114122

58 (51%)64 (52%)

9 (8%) 10 (8%)6 (5%) 6 (5%)

17 (15%) 17 (14%)

14 (12%) 14 (11%)

7 (6%) 7 (6%)3 (2%) 3 (3%)

Crowdfunding annual transaction value –Intermediate term Billion; Singapore Dollars

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Business Models of ECF Operators are Evolving Driven by Market Needs

Source: Crowdonomic Team analysis

Initial Focus

Sophisticated/ Angel/

Institutional Investors

Investors

Curation; Membership

Management; Matchmaking

Operator Role

Tech; Consumer/ Retail; F&B; RE

SectorsIssuers

Evolution

Private / Priority / Premium

Banking Partners

Foreign Venture Capital Funds Retail Investors

Expand access to regional / global smart capital

Post Investment Performance Monitoring

Shareholding Vehicle

Management by ECF/P

Direct Investments by

ECF/P

Extend value-add services

Regional Issuers

Fund Start-ups and Professional Funds Targeting Start-ups

Investment Funds Secondary Sales

ECF Operators Maximize Impact when Embedded within Ecosystem

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ECF Platform

Sourcing partnersVCs

Accelerators

Incubators

Agencies

Institutions

> Qualified deal flow

< Value add to clients

Investment partners

v Lead Investors/ capital

^ Deal flow / ‘Top-up’ capital

VCs Angel Investor Groups

Private Wealth Clients / BrokeragesOther Funds / AMCs

Enabling partnersEscrow

Shareholding Vehicles

Legal / Accounting / Other SPs

Trust Accounts

Risk / Credit/ Compliance / DD

> Know how + Process efficiencies

< Clientele

Incubating partners

Boot camps

Accelerators

Incubators

Mentor groups> Client access

< Runway support

Marketing partners

PR Firms

Digital / Social Medial Marketers

Influencers

^ OutreachContent v

Key players in Wallstreet, Highstreet, Mainstreet, SV quick to embrace CF thru Partnerships

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Referral

Sourcing / Distribution

Direct Investments

Equity Investments into CFPs

Not Exhaustive

Co-Investments

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Regulation will Play a Key Part - All major markets now at various stages of implementing CF legislation

Countries in Asia debating Equity CF regulatory frameworks

New Zealand Live Apr. 2014 – Equity / Debt CF

Malaysia Target Q2/Q3 2015 – Equity CF

Japan Target end of May – Equity CF

India Proposal review – PCP* ended

Australia Proposal review – CAMAC

Singapore Public Consultation Paper shared

China Public Consultation Paper shared

Hong Kong Committee set up

Thailand Target May. 2015 – Equity CF

Source: Crowdonomic Analysis; Competitive Intelligence; Literature search* PCP: Public Consultation Process

Philippines White Paper Development

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What Can Governments and Regulators Do To Accelerate ECF Adoption and Impact

Perception• Here to stay• Alignment w/ Industry Leader

Interests

Policy Setting Approach• Lessen dependency on

benchmarking• Bottleneck – not technical /

leadership issue

CF Competitiveness• Inclusiveness + Fit for purpose

Offer rules + Regional• Protection etc is a must .. Cost

of capital

Industry CF Operators• Policy Partners

Promotion• Broad far-reaching impact

(operator budget is limited)• National level adoption and

incentives

Enabling support policies• Advertisements• Tax Incentives• Company Act (Shareholder

Cap)

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Thank You + Questions