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AIJA HYC - Crowdfunding & Alternative Finance
Girona, 15-18 November 2017
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AIJA Oslo, 29 Sept – 1 Oct 2016
Introduction to
Into the Bright Blue Yonder Current Challenges in Ship and Aviation Financing
Equity CrowdFunding (" ECF ") in Italy
• In 2012 Italy was the first EU MS to set up an ad hoc regulation for ECF (Law Decree no. 179/2012 and Consob Regulation no. 18592/2013)
• In 2017 ECF recorded a +123% increase in funds raised compared to 2016 • As of June 2017, ECF raised €12.5M financing 53 different companies • As of October 2017, there are 19 ECF web portals authorized by Consob to
manage fundraising campaigns in Italian market*
*Source: 2° Italian Report on CrowdInvesting – CrowdFunding Monitoring of Politecnico Milano
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Funds raised as of June 2017 in ECF web portals (value in €M)* Total
Last 12 months Failed campaigns No-satisfied overfunding
* Source: 2° Italian Report on CrowdInvesting
– CrowdFunding Monitoring of Politecnico Milano
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Average of collection-goals for companies in all fundraising campaigns (109) managed by ECF web portals*
Total Last 12 months Failed campaigns Not satisfied overfunding
* Source: 2° Italian Report on CrowdInvesting
– CrowdFunding Monitoring of Politecnico Milano
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Type of companies launching fundraising campaigns on ECF web portals as of June 2017 *
Total Last 12 months Failed campaigns Not satisfied overfunding
* Source: 2° Italian Report on CrowdInvesting
– CrowdFunding Monitoring of Politecnico Milano
Innovative Startup
Innovative SME
Investment Vehicle
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Business of companies launching fundraising campaigns on ECF web portals as of June 2017 *
Total Last 12 months Failed campaigns Not satisfied overfunding
* Source: 2° Italian Report on CrowdInvesting
– CrowdFunding Monitoring of Politecnico Milano
Innovative Startup
Innovative PMI
Investment Vehicle
Total
Last 12 months
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Pre-money valuation of companies launching fundraising campaigns on ECF web portals as of June 2017 *
Total Last 12 months Failed campaigns Not satisfied overfunding
* Source: 2° Italian Report on CrowdInvesting
– CrowdFunding Monitoring of Politecnico Milano
Innovative Startup
Innovative PMI
Investment Vehicle
Total
Last 12 months
< € 100k
€ 100k - € 500k
€ 500k - € 1M
€ 1M - € 5M
€ 5M - € 10M
> € 10M
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Success rate of all fundraising campaigns (109) managed by ECF web portals*
Total Last 12 months Failed campaigns Not satisfied overfunding
* Source: 2° Italian Report on CrowdInvesting
– CrowdFunding Monitoring of Politecnico Milano
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Overview on main ECF regulatory requirements
• Portal operators must be authorized and enrolled in a public register by Consob;
• Target companies cannot collect more than € 5M in a sole fundraising campaign;
• Professional investors must subscribe at least 5% of instruments offered by target companies
• Target companies shall publish on web portal any shareholders’ agreements in force and provide the portal operator with any information required by law
• Non-professional investors shall give to the portal operator evidence of their "investment education" and creditworthiness
• Non-professional investors may freely withdraw the offer within 7 days; then, they must be granted with a withdrawal right OR a tag-along right in case of change of control over the target company
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PROS & CONS of ECF for investors
Access to a wide range of investments
Participation in innovative projects
Right to withdrawal the offer (only non-professional ones)
PROS CONS
Loss of equity interests
Exit and illiquidity
"Emotional investment"
No dividends’ distribution
Fraud risk
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MARCO BELLEZZA counsel Mail [email protected] Mobile +39 346 8508887 Office +39 06 696661