Ftf pitch deck june 2014

Consumers drive the earnings of most companies

Analysts at banks get sales reports after the event

Consumers can be leading indictors of stock performance

Collectively we can outperform the market

Conclusion There has to be a better way, where investors get a fairer deal and the fund managers are compensated on

creating real returns. We have had the banking fallout, the fund industry is next

Problem

Billions paid into Pension, Mutual & Investment Funds monthly. The majority underperform the market

99% of individuals can’t name their fund, its manager and performance last month

Through inertia, investors lose billions in lost returns

Investors are charged regardless of performance

The traditional industry is boring and unengaged

This is the crowd that drive the underlying companies earnings

Rationale

Explosion of available information and technology, consumers can be leading indicators of stock performance

Who knows better or first, how or is performing?

A shopper who visits the store each week, who can see any change in footfall or product offering in real time

A student changing from one brand of mobile phone to another, along with their friends

Or

An Analyst at a traditional fund who receives a sales report at the end of each quarter or year

Thousands of passionate stock

pickers compete to create the

best portfolio and win cash prizes

Top performers stock selections

are used to construct our

Investment / Mutual fund (s)

We share revenue, with the top

performers to retain talent

Solution

Stock pickers on our site are proven to outperform the market

Crowd Sourced Stock Mutual & Investment Funds

Retail investors invest in the funds

We make the process

1. Secure & Transparent

2. Easy

3. Social

4. Engaging

Online Wealth Management

$1 billion under management,

60% growth in last quarter

Peer to Peer Trading

3 million users, 128 million copied

trades, $400 billion in nominal

value traded

Market Validation

We combine two successful products into one great product

Individuals trust the stock trading ideas of their peers?

YES

Individuals make investments into funds using online portals?

YES

The Mutual Fund Market inflows each year

USA – 45% of households own a

mutual fund – $13 trillion market

India – Market expected to double

in size in next 5 years to $300 bn

Europe – European governments

are actively encouraging long term

savings

USA

$184

billion

India

$41 billio Europe

€87

billion

Product

Beat The Nifty

The Indian portal is live and branded

to local preferences

The same trading architecture will be used to launch

the USA and European portals, with a western

branding

Follow That Fund

TOP PERFORMERS

COMPENSATED with

a % of the fees we

earn, invested into the

fund to retain their

talent. We will also

launch the USA and

European Funds

WITH A 2 MONTH

SOFT LAUNCH we

have over 2,000

users. We have

signed a joint

venture with a large

Indian broker and

media group, and are

in discussions with

fund administrators

WITH 12 to 15

MONTHS OF TRACK

RECORD we will

launch a regulated

fund that individuals will

be able to invest in,

and track online.

Along with a social

framework for investors

to interact with the top

performers

TECHNOLOGIES

BUILT to track traders

performance within a

framework that is

simple to use and

hard to manipulate

Traction & Business Model

WITH 9 MONTHS

OF TRACK RECORD

we will launch the

fund concept, both to

stock pickers and to

investors

Revenue

202 Target of $4 Billion Under

Management First Full Year with $25 Million

Under Management 2016

Target $5 billion+ AUM by 2020

1% Management Fee

Performance Fee for returns above the market

$50 million reoccurring management fees

$25 - $50 million in performance fees

$75 - $100 million in NET revenue annually

Cost of sales circa 15 - 20% of gross

Conservative forecast Target $1 billion+

$15 - $20 million Conservative forecast

Justification – Etoro is executing over 50 million trades pa, with a nominal value

in excess of $100 billion. Wealthfront’s AUM, grew in 2013 from $100m to

$500m, and in 2014 from $500m – $1 billion. Its target is $100 billion by 2025

Direct Indirect

Focused on a brokerage business model, and their

current platform would not allow them to replicate our

fund

Competitors

No direct competitors & no other virtual portfolio portals use the same logic

All of our indirect competitors have accelerating traction and show huge opportunity for growth

Legacy portal, badly executed

Focused on sector and niche trading ideas.

Does not track individual traders performance.

Acts as an intermediary / fund manger for other

fund providers and does not manage its own

funds. Would be an ideal distribution partner

Sagar Vadher

CTO

10 years working for some of Europe's leading

technology companies (SITEL & Lastminute)

Msc Electronic and Electrical Engineering

Mehul Patel

CEO

7 years equities portfolio manager

FCA & IMC Registered

Bsc Investment & Financial Risk Management

Finance Contacts

Fund Managers

BOE Approved

FCA Approved

Team

Investing

Money raised will be used

to launch USA and

European portals

£250k @ 10% Post Valuation

10% Reserve

25% Production

50% Salaries

15% Advert & PR




Company

Description

Started

Users

Traction

Funding

Etoro

Social Trading

Users Copy Others Users Trades

2007

3 million Registered Users

250k Active Copy Traders

125 million Copied Trades

$400 billion In Trades

$34 million

Spark Capital

BRM

Guy Gamzu

Social Leverage

Jonathan Kolber

Lending Club

USA Peer to Peer Lending

Individuals Lending to Other Individuals

2007

150k Lenders

150k Borrowers

$4 billion In P2P Loans

Growing Quick $250m PM

$250 million +

Google Ventures $125 million

DST Global

Foundation Capital

Kleiner Perkins Caufield * Byers

Union Square Ventures

Norwest Venture Partners

Canaan Capital

Wealthfront

USA Online Investment Manager

Directs Users to Investment Funds & ETFS

2011 15k Live Portfolios

$1 billion + AUM

Average Account 80k

User base Growing 20% PM

$70+ million

Index Ventures

Social+Capital Partnership

Reid Hoffman (LinkedIn)

Greylock Partners

DAG Ventures

Prosper

USA Peer to Peer Lending


2006

2.2 million Users

$1 billion In P2P Loans

$100+ million

Blackrock

Sequoia Capital

Draper Fisher Jurvetson

Crosslink Capital

Accel Partners

CompuCredit

TomorrowVentures

Tim Draper

ZOPA

UK Peer to Peer Lending


2005 50k Lenders

80k Borrowers

£550 million in P2P Loans

£20+ million

Arrowgrass Capital

RIT Capital Partners

Benchmark Capital

Wellington Partners

Covestor

Online Investment Manager

Discovers Smaller Emerging Money Managers

2006

15k Registered Users

$20+ million AUM

$28 million

Spark Capital

Amadeus Capital

Bay Partners


Nutmeg

Online Investment Manager

Directs Users to Investment Funds & ETFS

2011

10k Live Portfolios

25k Registered Users

£100+ million AUM

£10+ million

Pentech

Armada Investment

Tim Draper

Funding circle

Peer to Business Lending

Individuals Lending to Existing Businesses to Expand

2010

73k Registered Lenders

£300 million Lent to Businesses

$58 million


Ribbit Capital

Motif Investing

USA Innovative Stock Broker

2010

100k Registered Investors

Investment Advisors

Executing Client Funds

$86 million

Goldman Sachs

JP Morgan Foundation Capital

Balderton

Contact

+ 44 (0)794 168 1195 Mehul Patel | CEO

[email protected]

twitter.com/FollowThatFund

FollowThatFund

FollowThatFund

facebook.com/FollowThatFund

Ftf pitch deck june 2014

Business

Transcript of Ftf pitch deck june 2014