Cofundit - Basics Investors Jan 2011 (Crowdfunding)

Enabling broad access to private investments

Loan-based Investiments in non-quoted Growth Companies

Funding. Crowd. Trust. SME. Loan.Transparent. Reputation. Invest.Entrepreneur. Expertise. Cofundit.

Cofundit Sarl

Funding Growth Together

Legal Disclaimer

Cofundit is a Swiss company which offers an online networking platform on www.cofundit.com andalso organizes investment events, where small and medium sized businesses can seek opportunitiesto finance their growth, consultants can showcase their expertise and individuals can optimize theirportfolio of investments by participating in possible new investments alongside an indeterminatenumber of non-related co-investors ("Crowd Funding").

Cofundit acts as financial consultant to facilitate the financing of companies registered in Switzerlandthrough investors from Switzerland and abroad. Cofundit has been confirmed by the Swiss FinancialMarket Supervisory Authority (FINMA) to be a non-regulated company.

Copyright Cofundit SarlFunding Growth Together

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The Borrower undertakes to provide all items of information and documentation on its business, theInvestment Opportunity and the Borrower itself, to its best knowledge, in complete, correct and finalform, giving a true and fair view thereof in all relevant aspects. The Borrower guarantees, that suchinformation and documentation does not and will not contain any untrue, incomplete or misleadingstatement of any relevant fact at the time such information or documentation was provided.

With the exception of claims for gross negligence or unlawful intent, Cofundit and Cofundit’scontracting parties are released and discharged (all as direct beneficiaries hereof with a right to claimof their own) from any and all claims the Borrower may have against any and all of them in connectionwith the promotion of the Investment Opportunity on www.cofundit.com or at special InvestmentEvents of Cofundit or the assessment of the Investment Opportunity by independent, third partyconsultants, including, with no limitation, any claims for losses of profits or consequential damagesunder or in connection therewith.

The triple effect of the Credit Crunch on SMEs:��-Banks have tightened their lending policies�-Venture Capital have reduced their investment �-Some SMEs are lacking funds to finance their growth��Consequence: A funding gap appeared around 750,000€ and 1,5 million €��That gap is CoFundit’s market opportunity

Agenda

• SME financing• Investing in non-quoted companies• What is Crowd Funding?• The Cofundit Process

Copyright Cofundit Sarl3Funding Growth Together

• Bridge Financing instrument: Debt• Successful Funding, Faction Skis• Engaging with the Cofundit Community• Wrap-up / Questions / contact

The triple effect of the Credit Crunch on SMEs:��-Banks have tightened their lending policies�-Venture Capital have reduced their investment �-Some SMEs are lacking funds to finance their growth��Consequence: A funding gap appeared around 750,000€ and 1,5 million €��That gap is CoFundit’s market opportunity

SME face challenges to fund growth

• Established SME rely on own cash flow to support• Growth SME’s do not fit traditional credit approval concepts• Insufficient funding puts limits on business development pace• SME under pressure to obtain financing from other sources


SMEs are in need of Bridge Financing alternative

Limited access to direct investments in companies

• Bonds• Equities / commodities• Structured products• Investment funds

Pension funds


• Pension funds• Real estate

Access to direct investments in non-quoted companies is usually reserved to High Net Worth Individuals

Cofundit enables direct private investments

Enterprise

Banks / financial intermediariesTraditionally

Individual


Enterprise seeking growth

capital

Direct Investments

Cofundit

IndividualInvestor(s)

Disintermediation

What is Crowdfunding ?

Ø Funding need of one party

Ø Sourced from many

Ø Usually through the internet


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Ø Mostly to support social / creative / political / startup projects

Cofundit‘s aim is to broaden the reach of Crowdfunding, to support established SME‘s growth

How does the Screening and review work?

ü Investment policy fitü Detailed Business reviewü Management Meeting / Face-to-faceü Basic background check

ü Understand business modelCrowd

1 week


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ü Understand business modelü Like / Qualitative assessmentü Want to know more

ü Quantitative Assessmentü Financial viabilityü Key Performance Indicatorsü Industry trend / environment

Experts

2-4 weeks

3-4 weeks

How does the funding phase work?

Pays5%

success fee

Pays CHF 600 sign-up


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• Private loan• CHF 200k to 1mio• Term of 6 to 36 months• Unsecured debt• All terms excl. Interest rate set by

Cofundit debt financing instrument

• Swiss Based company• Small Medium Entreprise• Successful Proof Of Concept• No Technology risk• Growth stage

Borrower Profile Bridge Financing Debt facility


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• All terms excl. Interest rate set by Entrepreneur

• Interest rate defined by investors

OptionalConvertible option can be agreed

• Growth stage• Revenue Generating

Cofundit Funding Case - Working Capital Bridge Loan

Company Faction Skis, VerbierIndustry Branded SkisFounded 2006

Track Record1‘200 pair of skis sold in 2009/2010Sold in 13 countriesDoubling revenues every year

Fund raising outcome

Funded amount CHF 170‘000Term 6 monthsRepayment Bullet loan

Interest rate 10 to 15%Funding tranches CHF 10‘000 to 50‘000


„Cofundit helped us raising a bridge loan in 4 weeks - tosecure product shipments for the 2010/2011 season.We will continue to work with Cofundit in the future“

Alex Hoye, Chairman, Faction Skis

Cofundit in 2010 and beyond

Cofundit.comLaunched

First Cofundit Live Event

Moves to PSE

First Fund Raising Closed

New Business

Swiss Regulatory Clearance


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2010

Moves to PSE Lausanne Office

OctMayMar

New Business Developer

NovJune July

Cofundit in the Press

• Funding request overview• Discussion forum• Automated dealflow notifications• Investor dashboard tracking

Join the Cofundit Community

Cofundit Internet Platform

• 3 Events each month • Meet fundraising entrepreneurs• Meet other Cofundit members, fellow

investors

Cofundit Live Events


• Quarterly Issue• Review transactions• Crowd funding Topics• Investor Knowledge• Investor Views• Cofundit Partners

Cofundit Magazine

• Weekly• 1-2 Companies pitching• Q&A

Cofundit Investor Webcast

Cofundit Member Benefits

Non-Member Member Entrepreneur Investor Expert

Public data access

Posting funding request

Voting / Forum

Private Messaging


Free Magazine subscription

Newsletter

Confidential data access

Invest

Expert review

Free Free EUR 100 / year Free

Questions?


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Questions?

Gerrit Sindermann Business Development Manager

M: +41 76 5161637T: +41 21 6938730 [email protected] Skype: gerritskype1313

Cofundit Contact


Cofundit S.A.R.L Parc Scientifique EPFL PSE-C 1015 Lausanne Switzerland

www.cofundit.com

Appendix


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Appendix

01 Pre-Screening / Voting

§ Cofundit (company stage, business model, revenue -generating, background check)

§ Cofundit members (Appeal / attractiveness of funding proposal)

02 Review & Discussion

Cofundit – A 3-phased approach to fund business

2-4 weeks

Free

3-4 weeks

Share


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§ Experts: Additional confidential information§ Webcast: company presentation / Q&A§ Meet the Entrepreneur – Live events

.

3-4 weeks

CHF 600 sign-up

03 Funding§ Investors commit share of total funding amount @ self-chosen interest rate§ Entrepreneur selects best financing offers§ Standardized loan contract signing / money wired

Review

2-4 weeks

5% success fee

Review

Cofundit in the Press


Economy & Finance

Cofundit - Basics Investors Jan 2011 (Crowdfunding)