Basics of an Equity Crowdfunding Campaign

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BASICS OF AN EQUITY CROWDFUNDING CAMPAIGN ALESSANDRO M. LERRO WWW.LERRO.IT VENICE 2015

Transcript of Basics of an Equity Crowdfunding Campaign

BASICS OF AN EQUITY CROWDFUNDING

CAMPAIGN

ALESSANDRO M. LERRO

WWW.LERRO.ITVENICE 2015

©2014 A

.M. Lerr

o

INNOVATION IS DRIVEN

BY BREAKTHROUGH AND

DISRUPTIVE NEW IDEAS

SKILL

PASSION

LOVE

©2014 A.M. Lerro

©2014 A.M. Lerro

SLICED BREAD

15 YEARS

TO HAVE SUCCESS

Otto Rohwedder

1928

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.M. Lerr

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BU

SIN

ESS

PLA

NN

ING

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CASH NEED

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.M. Lerr

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ANGEL INVESTORS

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VENTURE CAPITAL

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ANGELS & VENTURE CAPITAL :

2012: $ 51,7 BL 58% IN USAAVERAGE $3ML

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©2013 A.M. Lerro

By 2025 the volume of INVESTMENT CROWDFUNDING will be:

> $92 billions= 1,6% of household savings≈ 2 x total Venture Capital volume

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CROWDFUNDING REWARD ?

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TARGET: $250,000

FUNDING: $2,400.000

9.588 BACKERSIN 30 DAYS ON KICKSTARTER

SOLD TO FACEBOOK FOR:

$ 2,000,000,000

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.M. Lerr

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EQUITY CROWDFUNDING

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THE AMERICAN

POINT OF VIEW

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POINTS OF VIEWTHE EUROPEAN

POINT OF VIEW

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1 MONTH

INVESTORS: ≈ 525 IN EQUITY

MINIMUM TICKET: 5,000$

AVERAGE INVESTM.: 12,000$

MAXIMUM INVESTIM. : 1,200.000$

> $ 7,3 MILLIONS

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.M. Lerr

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2 MONTHS

INVESTORS: 12 IN EQUITY

MINIMUM TICKET: 5.000 €

AVERAGE INVESTM.: 40.000 €

MAXIMUM INVESTM.: 140.000 €

€ 520.000

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.M. Lerr

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A DEAL FOR ANGELS ?

ANGEL INVESTING

REVOLUTION

SAVE TIME

SAVE MONEY

SYNDICATE & LEVERAGE

EXTEND NETWORKS

REDUCE RISKS

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TARGET

COMPANIESEMITTENTI

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INNOVATIVE COMPANIES

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.M. Lerr

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STATUTES

INNOVATIVE COMPANIES

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INNOVATIVE COMPANIESDifferent Levels

For

Start-Up / SME

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TAX

ADVANTAGES

INNOVATIVE COMPANIES

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.M. Lerr

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STRATEGIC

MARKET POSITION

COMPETITIVE POSITION

OPPORTUNITIES AND THREATS

FINANCIAL

FINANCIAL STATEMENTS

ASSETS & LIABILITIES

TAXES

LEGAL

LEASES

INTELLECTUAL PROPERTY

LAW SUITS

EMPLOYEES

CONTRACTS

QUALITY

COMPENSATION

RETENTION

SUPPLIERS

CONTRACTS

LIABILITIES

OTHER

SYSTEMS & TECHNOLOGY

ENVIRONMENT

CORPORATE SOCIAL

RESPONSABILITY

DUE DILIGENCE

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WHY INVESTING:- CAPITAL GAINS

- DIVIDENDS

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CLASS A/BSHARES

DIR

ECT

OR

S -

SU

PER

VIS

OR

S

CO

NS

ULT

ING

BO

AR

DS

ANTI-DILUTION

AGREEMENTS

EXIT STRATEGY CORPORATE

GOVERNANCE

TAG ALONG

SALARIES

DRAG

ALONG

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CA

PIT

AL

INC

REA

SE

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CAPITAL INCREASEEXAMPLE

CASH NEED 100.000

COMPANY VALUE 500.000

CAPITAL INCREASE 20%

(NOMINAL CAPITAL) 2.000

(PREMIUM) 98.000

100.000 EURO BUY 20% OF THE COMPANY

CA

PIT

AL

INC

REA

SE

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COMMUNICATION

MARKETING

ADVERTISING©2014 A.M. Lerro

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REWARD-BASED FEATURES

AS INCENTIVE

DISCOUNTS

OPTIONS

REWARDS

VIP STATUS©2014 A.M. Lerro

PICK UP

THE RIGHT

CROWDFUNDING

PLATFORM

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INVESTMENT

EXECUTION

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SMALL INVESTMENTS

• Directly managed

• NO MIFID

LARGE INVESTMENTS

• Through BANKS or INVESTMENT COMPANIES

• MIFID profiling

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SMALL INVESTMENTS:

INDIVIDUALS:< 500€ per investment< 1000€ per year

COMPANIES:< 5.000€ per investment< 10.000€ per year

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INVESTOR’S

IDENTIFICATION

ANTI-LAUNDERING

RULES

TEST INVESTOR’S PROCLIVITY TO

RISKY INVESTMENTS

MIFID:

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TRANS-NATIONAL INVESTMENTS©2014 A.M. Lerro

ASIA IS JUST STARTING TO DEAL WITH

CROWD -INVESTMENT

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U.S.A. REGULATIONS ARE VERY RESTRICTIVE.

WHAT HAPPENS WITH NON U.S. INVESTORS IN U.S.A.? ARE

AMERICAN INDIVIDUALS ALLOWED TO INVEST ABROAD ?

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E.U. BROKER DEALERS HAVING E.U. PASSPORT MAY

OPERATE THROUGHOUT THE E.U..

WHAT HAPPEN WITH NON E.U. INVESTORS ?

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INVESTORS©2014 A.M. Lerro

IT’S NOT GAMBLING

ITALY:SCRATCH CARDS: € 10,2B

LOTTO: € 6,8 B

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EDUCATION

WIT

H D

RA

WA

L

NO RECKLESS INVESTMENTS

TAG ALONGM

IFID

INFORMATION

NO INVESTMENTLIMIT

CURATE THE CROWD

RESPECT THE CROWD

BE LOYAL

GET FEEDBACK

PROVIDE INFORMATION

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