Athens, June 2016
Louka T. Katseli, Chair of the BoD
An Innovative Program
for Social Entrepreneurship
Athens, June 2016
Louka T. Katseli, Chair of the BoD
An Innovative Program
for Social Entrepreneurship
act4Greece
National Bank of Greece 2
Presentation Structure
• act4Greece crowdfunding platform: why NBG?
• act4Greece: a platform to support society 2
1
3 act4Greece: a platform to support entrepreneurship
part of the program
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National Bank of Greece 3
1. Crowdfunding: A Growing Market
Crowdfunding types
Donation 1
Reward-based
Lending-based
Equity-based
Hybrid-based
Royalty-based
2
3
4
5
6
Crowdfunding is a simple, widely
known fundraising activity, by which
any natural or legal person – whether
an individual, business or any other
body or NGO – can support financially,
in line with their means, in kind or cash,
various social and business initiatives
that benefit the community and the
environment
16.2
34.4
2014 2015
3.2
7.4
2014 2015
Global (bn €)
Europe (bn €)
The International Experience
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1. Crowdfunding: A Growing Market
The International Experience: The Brexit Effect on crowdfunding
The UK’s referendum result has been announced and the decision to leave the EU has shocked many. Particularly in Cambridge,
where Crowdsurfer is headquartered, which was very pro-‘Remain’.
With the banks and currency markets in disarray, UK funding shortages will likely continue and could get worse as uncertainty and
doubt fuel further caution. This increases the fundraiser push to crowd finance that has enabled the industry’s growth over the last
8 years.
1.To contain the market fallout, the Bank of England could add billions into circulation and seek to keep interest rates low. This will
result in savers/investors continuing to find few opportunities from traditional finance to make a return on their money. In turn
increasing the investor push to crowd finance, where better returns are available.
2.Doubt and uncertainty abound in just about everything financial and economic, so money will seek out new avenues. Crowd
finance has evolved to offer a diverse range of different investment opportunities, whether it be by sector, funding type or
geography. This diversity will prove attractive.
3.An increased perception of risk will lead to a renewed focus on the due diligence applied to those seeking finance through the
crowd. Whilst, this may slow the growth of the industry a little, it will quicken the transparency and subsequent understanding of the
investment opportunities offered.
Watch this space.
Emily Mackay
CROWDSURFER
act4Greece
National Bank of Greece 5
1. Crowdfunding: a growing market
Partnership with SPEAR; businesses or charities to successfully implement a responsible project and to
obtain a more advantageous loan thanks to solidarity savers. In 2014 4 projects were financed with
social and environmental value added for a total of 750,000 euros..
Launched in 2014 a crowdfunding website (Bolero) connecting entrepreneurs with investors. KBC sees
crowdfinance as a valuable way for innovative startups & SMEs to obtain financing.
ABN AMRO was the first bank to run a crowdfunding pilot platform in 2012.
Partnership with Assetz Capital and Funding Circle to finance SMEs (P2B lending)
Partnership with Funding Circle to finance SMEs and start-ups (P2P lending).
The first Swiss bank to enter the crowdlending business. It has joined forces with Swisscom to add
crowdlending to its range of services with the miteinander-erfolgreich.ch crowdfunding marketplace. .
27-04-2016 The first Bank in Finland to offer its clients equity-crowdfunding
The Banks’ Experience
Strategic partner of the wissed platform in France
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Advantages Risks
1. Crowdfunding: Advantages and Risks
• counterparty (or credit) risk
• risk of fraud
• operational risk
• liquidity risk
• legal risk
• money laundering
• alternative method of financing combined
with other financing sources.
• broadening of sponsoring options for CSR
• risk reduction for the investor who can invest
relatively small amounts compared to classic
investment options; investors can track
projects’ progress.
• access to more and bigger investment
networks.
• easy and quick procedures to raise funds.
• synergies across multiple stakeholders
(foundations, donors, NGOs etc.)
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2. National Bank of Greece: 175 years of history
National Bank of Greece, established in1841, is known and trusted for its substantive
contributions to the country’s economic and social life.
Reputation and Trust
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3. National Bank of Greece: CSR Mission
Responsibility
NBG a “Responsible Citizen”
NBG aims for high standards of corporate citizenship by preserving and promoting
universal human values, including the welfare of the community as well as social,
environmental, intellectual and cultural values.
Resp
ect
Hu
man
Rig
hts
Resp
ect
ing
th
e
En
vir
on
men
t
Co
ntr
ibu
tin
g t
o
the e
con
om
y
Su
pp
ort
to
th
e
art
s, c
ult
ure
an
d
Ed
uca
tio
n
Ind
ep
en
den
ce
Vision
Responsibility
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National Bank of Greece 9
3. National Bank of Greece: CSR
Humankind
Environment
Culture
highlight and preserve the
Greek cultural heritage.
Support activates related to
history, the arts, customs and
traditions in Greece.
support vulnerable social groups;
enhance services related to health,
education and social welfare;
contribute to the overall
improvement of the life of the
society
implementation of a well-aimed
environmental policy; sustainable
finance; environmental awareness of
shareholders, customers and staff
Pioneering
Three core lines of CSR action
2
3
1
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National Bank of Greece 10
Presentation Structure
• act4Greece Crowdfunding Platform: why NBG?
• act4Greece: a platform to support society
3 act4Greece: a platform to support entrepreneurship
part of the program
1
2
act4Greece
National Bank of Greece 11
act4Greece: social goals and areas of interest
1. welfare, health & solidarity
2. social economy & entrepreneurship
3. culture & cultural entrepreneurship
4. research, education & training
5. youth & innovative entrepreneurship
6. environment & sustainability
7. sports activities
areas of interest
goals
• to support a broad spectrum of
initiatives and projects in the area of
social and developmental banking.
• to facilitate and manage funds offered
by individuals and legal entities.
• the areas of activity are chosen based on current
conditions in the Greek society and economy.
• chosen areas and activities aim at enhancing awareness
and broadening public participation in order to support
collective social and developmental initiatives and to
highlight the value-added of solidarity and social
engagement in facing common challenges.
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National Bank of Greece 13
act4Greece : governance structure
Management Committee
Operational support
Projects Donors
Strategy Committee
Social economy
&
entrepreneurship
Culture &
cultural
entrepreneurship
Youth &
innovative
entrepreneurship
Research,
education &
training
Environment &
sustainability
. Social protection,
health &
solidarity
Thematic Areas
Sports
activities
NGO’s
Universities
Research Centers
Foundations
Local authorities
State authorities
Implementing entities
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National Bank of Greece 14
act4Greece: accountability, disclosure and supervision
• each action in the context of the Program shall be
described with full clarity and transparency so that each
participant shall fully understand the relevant
procedures before deciding to participate therein.
• through the platform, each interested party shall be able
to pose relevant questions/requests that will be
answered by a special subcommittee in line with a
specific procedure.
• all activities are monitored and checked before the
commencement of their implementation in order to
ascertain their compliance with the existing regulatory
and legislative framework and are then approved by
the competent body of the Program.
• by the end of each fiscal year, the Management
Committee shall submit a fundraising accountability
report to the competent bodies of the Bank and the
Minister of Labor, Social Insurance and Social Solidarity,
as provided for by law.
• the implementation of projects similar to those launched
by public bodies shall also require the approval of the
Minister of Labor, Social Insurance and Social Solidarity.
• all cooperating bodies adhere to the requirements of
the Program and the special terms of operation of the
Program.
• all related documents and data are kept in a relevant file
for a least five (5) years following termination of the
cooperation and are available to the competent judicial
and supervisory authorities, in the event of fraud or
other suspicious activities.
• all who participate as donors declare that the funds
they offer within the framework of the Program are of
lawful origin and are not the proceeds of illegal
activities as defined by the provisions of Law
2331/1995, as amended.
• required checks shall be carried out and the relevant
information will be requested for the documentation
of the participant’s financial profile, in accordance with
the respective provisions in force.
• EU legislation on payment services (the Payment
Services Directive) shall apply in full.
transparency compliance
accountability supervision of the use of funds
1 2
3 4
act4Greece
National Bank of Greece 16
Lunch meals for schoolchildren at the West Attica region
«give €2.5 and offer a meal»
• 134,541 hot meals were offered to
2,808 children
• at 17 schools in the West Attica
region
• total amount collected: €340.175
• NBG contribution : €200.000
• Phase B: to start with the opening of the
new school year 2016-2017
Phase A : 15.02.2016 - 15.06.2016
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National Bank of Greece 17
Medical care at frontier islands of Eastern Aegean
«support vulnerable people»
Phase A 29.01- 31.07 Samos Island:
provision of medical care, humanitarian
aid and psycho-social support to vulnerable groups; mobile medical unit
Total budget: €136,736
Doctors of the World contribution: €.7.000
Phase B: Kos and neighboring islands
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National Bank of Greece 18
Digital educational platform on Greek Revolution of 1821
«be part of history»
Creation of a digital historical archive
on the Greek Revolution of 1821 to
facilitate research and develop
educational tools to support young
scholars
Total budget: €125,000
RCH contribution: €10,000
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National Bank of Greece 19
Modernization of infrastructures in Karolos Koun Art Theatre
• support the Art Theatre, in order to
secure its smooth and effective
operation in the forthcoming years
• modernization of infrastructures and
equipment in both auditoriums with
respect to critical gaps in the technical
framework
«Togetherness is needed»
Total budget/amount collected: €108,176
Onassis Foundation contribution: €54,100
completed
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National Bank of Greece 20
Act4Greece benefits : Transparency & Tax Benefits
completed
donators who requested to be named
donation receipt
Transparency Tax benefits
act4Greece
National Bank of Greece 21
• Establishment of “crowdfunding” practice
• Dissemination through social networks
• Exploiting synergies across multiple stakeholders (foundations, donors, NGOs etc.)
• Using innovative development finance instruments to tap CSR policies of multiple
stakeholders,eg.
levy on hotel bookings
levy on insurance contracts
company matching employees contributions, etc.
• Accessing diaspora networks (international campaign, etc.)
act4greece: lessons learned
act4Greece
National Bank of Greece 22
act4greece: Awards won
2016 Silver Bite Award
(Business Information Technology Excellence)
for
“CSR Strategy Support”
Athens 23-06-2016
“Crowdfunding is a FinTech solution. It must be implemented as a banking product
and it needs to fit our digital roadmap”
“The 1st Crowdfunding Conference in Cyprus : Paving new ways to finance” KPMG, Cyprus 16-06-2016
act4Greece
National Bank of Greece 23
Presentation Structure
• act4Greece Crowdfunding Platform: why NBG?
• act4Greece: a platform to support society
act4Greece: a platform to support entrepreneurship
part of the program
1
3
2
act4Greece
National Bank of Greece
Part of the NBG Business Seeds program for scale-up
24
business
development implementation
business idea
formation
business plan
development
ideas - prize money angel - pre-seed seed - series A lending - scale up
• > 2.000 Business Plans
• 60 prizes (10 per year)
• 40 Business Plans • 7 companies: equity participation 1,6 mio • 5 companies : lending 2,5 mio • 10 companies : other (mentoring, networking)
act4Greece
National Bank of Greece
NBG Business Seeds: a growing partnership
25
act4Greece
National Bank of Greece 26
… Loans
… Equity
… Other
PD
Plus
NBG Business Seeds: new companies supported by…
act4Greece
National Bank of Greece
27
NBG Business Seeds success story :
€140,000 in pre seed funding by NBG
accepted in Endeavor’s Global Network
€1.2mn in series A funding by a Greek Venture Capital
€1mn in commitments from investors
more than doubled turnover in a year
expansion to Instanbul and Dubai
Blueground was set up in 2013 with a mission to market, manage and develop residential properties, backed by its
technology focus. Blueground converts apartments and houses into fully serviced, first-class guest accommodation.
The company serves two client categories: the owners of the properties and the guests. The owners increase their net
income by 30-50% and save time as Blueground undertakes all the work involved in marketing and managing their
property. The guests, on the other hand, are able to enjoy top class accommodation and guaranteed quality. The guests
staying at the accommodation – whether for leisure or for work – can enjoy the same kind of services they expect from a
hotel, but have the added advantages of more space, privacy, and a fully equipped kitchen – and all at a lower cost.
Blueground has already forged a significant presence in Greece and is currently in the process
of expanding its business in neighboring Turkey and UAE.
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National Bank of Greece 28
A new legal framework on the make
1 transferable equity with a total value of less than €500,000 per company per
annum
2 participation of each private investor cannot be less than €5,000 and more
than 10% of the last 3 years average income
3 Investments are carried out exclusively via electronic system
5 potential system administrators (Commercial Banks or Brokers) notify the
Hellenic Capital markets Committee (HCMC) or the Bank of Greece (BoG) for
their intention to operate platforms
4 exemption of fact sheet publication obligations provided that info exists on
electronic system
Key principles:
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NBG investment crowdfunding platform: A fin-tech scale-up
1
Quality co-investors 2
Remarkable track record 3
Bonded partnerships
5
4
Scale up traditional lending and VC approach (diligence, investor’s rights &
protection)
Key Characteristics :
Unique crowdfunding experience in Greece
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NBG investment crowdfunding platform targets
significant presence in Greece and export orientation 1
Companies with:
continuous track record of innovation, investing in R&D 2
consistent and steadily growing revenue stream 3
significant employment impact 4
act4Greece
National Bank of Greece 31
Selection and Valuation process
NBG
customers
Pool of
eligible
customers
• NBG Group Treasury
• NBG Investment Banking
• NBG Credit divisions
(Small Business, SME,
Large Corporate)
private placement 1
2 public placement
NBG may or may
not participate
valuation and credit
underwriting
definition of note
parameters
NBG
non-customers
NBG may or may
not guarantee
act4Greece
National Bank of Greece 32
A prototype for the future …
Investment facts
country: Greece
collateral: EUR
data room description
The company's main product is SourceLair, a Software as a
Service (SaaS) solution that provides users with the ability to
easily develop code online through a web browser. It comes
equipped with all the tools needed for professional software
development, while simultaneously integrating services such
as GitHub, smoothly, thus enabling programmers to make
use of some of their favourite tools. SourceLair is a software
development company in Athens, dedicated to creating an
enhanced software development experience by removing
hassle from the coding process.
SourceLair first took off as a project in 2011, and the
company was set up in 2013. SourceLair is free for one
coding project, while premium packages are available for
users who want to work on multiple projects.
SourceLair is a global application, since both free and paying
users are from all around the world.
current investment details
current investment details
investments
indicative offers
risk type: software
organization: …
amount: …
NBG participation: …
evaluation
…
rate
…
term
…
amortization
…
rating
…
mature date
…
submission deadline:…
The act4Greece investment platform