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What is a good project? - How do you promote your project? - What is a good network? - How do I succeed in my goals?

This explanation offers the project provider with a guide to the successful

crowdfunding on CroFun.

I. INTRODUCTION TO CROWD FUNDING THROUGH CROFUN A. What is CroFun? CroFun is a web-based crowdfunding platform that you as a project provider offer a commercial and legal framework for business, social, creative and innovative projects. As the only crowdfunding platform for European projects, CroFun offers the possibility to create an ideal mix to finance your project. Due to the close collaboration with numerous specialists, Crofun is able to assist you, the project provider, with the development and marketing of your project.

B. What is crowdfunding? Crowdfunding is a concept where many small investors and/or stakeholders are willing to invest small amounts in projects where they feel an involvement. Crowdfunding means therefore literally means 'funding' by the 'crowd'.

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C. Motivation to take part in crowdfunding 1) Motivation for investors Because of the social involvement Because of the original reward Because of the financial return Because of the tax benefit

2) Motivation for project providers You can turn to a wide international audience. You can attract considerable capital as you build a brand identity. You receive valuable feedback on the project for which you are collecting money. You can create prospective customers from your investors. You are no longer dependent on major investments. Investors are therefore less able to

exercise influence over your project. You can increase public awareness of your project by using social media to promote it. You go from mass production to customized production. You can involve your potential customers as you build a brand identity through co-creation.

D. Forms of crowdfunding: Through the platform, Crofun offers the possibility to participate in crowdfunding based on:

1) Donations & Rewards Investors donate an amount without receiving a fee or other form of reward. Investors receive a small reward for their contribution, this could be a book, tickets,

downloads, ...

2) Loans Investors receive a periodic fee for their contribution and must ultimately be fully

reimbursed their original investment.

3) Profit Participation based on Sales (Revenue Sharing) Investors receive a fee that is dependent on the achieved turnover.

4) Shareholding (Equity crowdfunding)

Investors take a stake in the capital of the company through share participation. They are paid via a possible dividend.

CroFun operates on a 90% realization model. In other words, if your project was funded for 90%, they will actually be paid that. At Crofun, we are convinced that when a project provider can get his project funded for 90% through crowdfunding the remaining capital can be acquired through other channels if needed.

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E. What projects can you launch?

1) Creative projects: Architecture - Visual Arts - Visual Arts - Books & Comics - Cultural Heritage - Design - Film - Gaming - Fashion - Music - New Media - Performing Arts

2) NGOs/charities: Health - Environment - Development - Study

3) Associations/Non-profit organizations: Youth - Sports - Social - Cultural

4) Business projects: Investments - SME - Environment - Start-up programs - Technology –

Real Estate It you have a project that you are convinced belongs on CroFun, but you cannot place it within one of the predefined categories, please e-mail us and we will check whether your project can be launched on CroFun.

F. For each project supplier, the right crowdfunding solution!

Donations & Rewards Loans Revenue Sharing Equity Funding

Creative projects Associations/Non-profit's

Associations/Non-profit's

SMEs

Associations/Non-profit's

Freelance Freelance

NGOs/Charities SMEs SMEs Freelance SMEs

G. Guidelines Do you want to place your project on CroFun? Then, it must first be approved. For this, it must comply with a number of conditions. We ask you to carefully read and respect the following guidelines as well as the terms and conditions.

1) As a project provider uses the Belgian platform, you must - be resident in Belgium (domiciled); - older than eighteen, - have a Belgian bank account.

2) Loans and investments

As an individual you may not apply for a loan or an investment. This right is reserved for start-ups, professionals, associations and SMEs. Are you a start-up? Then you have to be registered before the end of the project offer at the entrepreneurs' counter.

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3) CroFun includes different categories of projects. Make sure that you put your project in the right category. Some categories have indeed specific features that are not found in other categories.

4) If we consider that a project does not belong to the platform, we have at all times the right to

remove it. Therefore we have no accountability.

H. Costs Start-up Cost € 150 Success fee 5% Payment Service PayPal/Ogone

I. How do you start? Examine other crowdfunding projects; compare projects that have succeeded with projects that have not succeeded. Try to get the right insights to make your project a success. Step 1: Develop your project Are you looking for support for your project? Have you thought about crowdfunding? Then, it is primarily important to develop your project to perfection. Be realistic and formulate achievable objectives. The better you can describe and illustrate your project, the more potential investors will show interest. Step 2: Determine your goals At CroFun, you must reach at least 90% of your assumed goals. If not, the capital raised is not paid but returned to the investors. Be realistic. What budget do you need? How much capital are you investing yourself? What value can you offer? It is important to know how to handle others. See what works for them and write your own success story! Step 3: Create added value People support a project for different reasons. Some invest in a project because they feel closely involved. Others are interested in the rewards they receive for it. Still other investors hope to achieve a potentially higher return on their investment. Decide what type of investor you want to attract and what you want to give them in return for their investment. Again, be realistic here. Don't just think about what they want to give, but also what you can give them. Step 4: Marketing and PR CroFun helps you to find for the best financial solution for your project. But be careful! It is no magic formula to accumulate capital. We offer you a legal and business framework, but you have to attract the investors yourself. These come primarily from your own network. Have you been able to warm your family, friends and acquaintances to your project? Well done! Then, you're ready to attract other investors. Promote your project and keep your network up to date

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with the latest developments. Show that you are passionate! The difference between boring and inspiring people often relates to the passion that you bring your story. Step 5: Reap the fruits of your work Collect capital from all over the world. Reap the fruits of your work and grab the dream you deserve! Step 6: Ensure the promised return Make sure that everyone who funds your project gets his reward, return or refund as promised and agreed.

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II. READY TO GO? Ready to launch your project? Be aware that the largest amount of the basic funding will come directly from your network; this is to do with only one issue "TRUST". Trust will be the key word when raising funds for your project.

A. Analyse & Activate your network WIDE NETWORK & THE CROWD 3rd DEGREE FRIENDS of FRIENDS 2nd DEGREE and ACQUAINTANCES 1st DEGREE FAMILY - FRIENDS LOYAL FANS

YOURSELF AND YOUR TEAM CORE

1st degree network: They invest based on a pre-existing relationship and an existing trust.

Before starting, you are better off yourself to a number of these relationships so that they can fulfil their role as ambassadors.

Make everyone in this circle enthusiastic about your project, before you go online with your project. In order to achieve this, use your social media (Facebook, twitter, LinkedIn, Google+, YouTube, Instagram, Pinterest...).

2nd degree network: They will invest as soon as sufficient confidence signals have been generated from your 1st degree network.

Confidence signals can relate to the initial investment, but also comments, likes or discussions that are taking place on your project.

Ensure that there is action within your 1st degree network in order to generate interest and support from your 2nd degree network. (Groups to which you are connected via social media, specific community sites, and association websites...)

3rd degree network: They will finally invest in your project. These investors have to be convinced.

Without adequate support from your 1st and 2nd degree network, the spark won't catch fire.

Now pull out all the stops, promotion, publicity, put your project in the spotlight, create the right momentum and see how your crowdfunding project reaches higher degrees.

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B. What is your net worth? Know your network and know what it's worth! What form (s) of crowdfunding speaks to your network the most? __________________ How much capital do you think you can get through your network? __________________ How many people are there in your network? __________________ (Look at your social media contacts, groups, but also go further...) What is the average amount you could get per person? __________________ (Depending on the crowdfunding form and your audience, this can rise to 25 € to 1000 €) What is the amount that you want to collect? __________________

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C. How much time will I spend talking to my network? Through CroFun, you have the opportunity to connect with the main social media; in addition, CroFun is also present and the CroFun community is growing every day...

Project Amount € 2,500 to € 10,000

Project Amount €10,000 to €100,000

Project Amount + € 100 000

INVESTORS (Number)

50 to 200

200 or more

+ 2000

CAMPAIGN PERIOD (in days)

30 to 45

30 to 60

60 to 90

TIME/DAY

15min. - 2hr.

1hr. to 2hrs.

2hrs. to 4hrs.

CAMPAIGN

E-mails

Social Media Social conversation

Community

E-mails

Social Media Social conversation Larger community

Blog

E-mails

Social Media Social conversation Large community

Blog Offline marketing

Press support

NETWORK

Support and trust

from your 1st and 2nd

degree network

Support and trust from

your 1st - 2nd and partially 3rd degree network

Support and trust from

your entire network

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D. Be critical of yourself and your team Do you have all the in-house capabilities to ensure a successful implementation of your project from A to Z? Be critical and see if you have thought about everything; maybe there are certain areas where you could still use some support. Remember that professional support also costs money, keep this in mind when preparing your financial plan. 0= not applicable 1 = full control 2 = partial control 3 = not adequately controlled

Current organization Future project Remarks

0 1 2 3 0 1 2 3

1) Strategic

Develop a strategy: create a vision, determine the focus and the timetable for the organization in the long term, ...

Identify your market, customer and product segments and where your company sits in relation to them

Deal and negotiate with your stakeholders: shareholders, customers, suppliers, employees, competitors, ...

2) Tactical

Develop the legal and fiscal framework to support the (inter)national activities: contracts and clauses, risk-hedging, tax optimization, ...

Manage working capital and future cash flows: inventory, management of accounts receivable and accounts payable, ...

Implement and supervise changes in the organization: operational, commercial, personnel, financial, ...

Define the responsibilities and powers between shareholders, directors and management

3) Operational

Recurrent reporting of financial and operational data to support policy

Implement operational systems to support reporting: cost accounting, operational database, scheduling software

Financial communication with stakeholders: shareholders, investors, banks, ...

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E. Project in the spotlight Meanwhile, you already know how your network is put together, you know your own (and your team's) abilities and you know how much time you will need to spend. High time to put your project into the limelight!

1) Project title Keep the title of your project short and concise. Show your visitors what your project is about with just one word or slogan.

2) Project Image The project image is the first image that a visitor will see of your project. It is also important to choose this carefully.

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3) Project description: Describe your project as completely as possible. Explain step by step what it is about and how you will bring it to a successful conclusion. Convince your network and the general public that they should choose you! Do not limit yourself to a description of your project. Explain what your goal is and how it will succeed. Emphasize your personal assets (knowledge, experience...) and your project (original, gap in the market...) and convince potential investors of your future success!

Also, discuss briefly the market in which your project is located. What changes has it undergone? What are the current trends?

What is your target audience? Who are your main competitors? Are there partners with whom you can collaborate?

Indicate how the money will be used and make a good plan for your project. Provide sufficient information about the potential returns that potential investors can get.

Work with milestones. Consequently, you always have something to work towards and potential investors see how your project is evolving. Finally be authentic and confident. Show your passion!

4) Video Each project should make a short video presentation. A video presentation gives your project the face of a real person, someone with a real story. Potential investors will therefore feel connected an immediate connection with your project. When making your video, it is important to be creative. Don't just to go to your desk and read a piece of text. Be creative; make a product demo, using animations, voiceover techniques, 3D plans. The sky is the limit. Keep the video message focused on your project. Don't be too technical, don't make it too complicated. Ensure that you can convince the crowd to invest in your project. Making videos does not always have to be done with high-tech materials. Videos with a smartphone or webcam that are then uploaded work perfectly. Make sure that you have a good quality video; you need to be able to film with at least in 720p HD. Before you start filming make sure you have worked out a script for the action you are doing and have a text that fits with it. A good video draws attention and keeps it until the end. Keep it simple, but fascinating; take your audience into your world and convince them of your project. Focus on your message; keep it simple and stupid. Short videos varying in length between 90 seconds and 2 to 3 minutes are ideal. Realise that the first 15 seconds of your video are crucial; the viewer decides in this time whether he'll carry on looking or zap to the next. Are you unable to attract attention and to convince the visitor? Start again, try a different angle ... Videos are a powerful medium to create a snowball effect in promoting and publicizing your project. Make sure that your network can share your video, can post likes on their own blogs or community. Create a YouTube or Vimeo account and show the world your creation.

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Finally, don't forget to link to CroFun and your project name to get the necessary funding.

5) Photos/images Images can give your message extra power. As an old Chinese proverb says, "a picture is worth a thousand words". Use images to propose your rewards or your product, but also to map for example e.g. your target group, express turnovers, promote your brand identity, etc. Images are often used to show the development of your project through updates. With updates, you keep your project running and make sure that your network continues to expand. When making photos or illustrations, you should always take into account the digital format; ensure that the different images are easily uploadable via CroFun, but also through your other social media. Use apps like Instagram or Pinterest, Flickr or Tumblr to send your images around the world.

6) Financial plan/Swot analysis At the CroFun platform, you are required to have a financial plan and a SWOT analysis. This is not mandatory for crowdfunding projects, which only take part in crowdfunding through donations and rewards. This does not mean that they don't need to create these.

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The financial plan and swot analysis are important for two reasons. Initially, it allows you to think about the financial image and the market conditions; secondly, it allows you to show a potential investor that you've thought about it. Do you have little or no experience? Let a professional such as an accountant help you.

F. Create rewards/return Think carefully about the rewards and the return you want to offer; a large part of your success will depend upon this. Rewards can either be products, services, a certain recognition, or experience (we will discuss this later in greater detail). Again be creative and ensure the right connection with your project. A return however revolves around a financial yield on the investment itself. Please be realistic in your forecast or the interest that you can afford.

1) Rewards: Offer a wide range of rewards, each with a different value. For example, values of: €5 to €100 for small and simple things, €100 to €500 for larger, original matters and for the truly unique rewards you can go to €1000. Always ensure that small rewards are easy to distribute, mp3, video, eBook, recognitions on websites, etc. The larger rewards are often more physical and you will need to send them. Don't forget to always take the shipping costs into account. Good rewards are always special, unique or limited, but they can also be socially engaging which in return other projects are supported. Create rewards that relate to your project, organize a kind of presale and save yourself a potential financial hangover if your product does not catch on or if you increase your circulation because of the huge demand.

2) Types of rewards: Rewards can come in all shapes and sizes; below is a small list to help you with creating your own unique rewards. - Acknowledgments (website, acknowledgments in book, CD or movie, logo entries...) - Tickets (free tickets, VIP tickets, attendance at events as a funder...) - Finished goods (luxury models, gadgets, discounts...) - Experiences (day at work, a role in a project, a unique experience...) - Merchandising and souvenirs - Assistance on other projects (support charities, Fund it Forward...) - Combine rewards

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3) Return: Work with different degrees of return. For example, you can allow the return to increase as the investment increases in size. Be more realistic in the goals that you set, but also make it sufficiently attractive for investors to invest. Make sure that the reimbursement or payment of the yield occurs on time. Nothing is more annoying than late payers; it means additional work and frustration. The way to measure a good return is the return on new distribution of shares. With crowdfunding, we are ultimately talking about a form of risk just like a bond. It is therefore also important to give an investor more return than traditional savings products.

4) Types of Returns: There are two types of return, a form of interest that is paid to obtain a loan and a profit participation based on a predetermined increase in sales. Interest on a loan, CroFun offers the possibility to agree various forms of loans between

the parties. Think carefully about which type of loan repayment suits the project best: - loan with fixed monthly repayment - loan with annual interest payment, where the capital is repaid at maturity. - loan where both capital and interest are repaid at maturity.

Profit Participation based on a predetermined increase in sales via CroFun. It is also

possible to participate in crowdfunding using Revenue Sharing. This means that you award an investor a predetermined profit-share with the realization of a predetermined

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increase in sales. Investments are always in multiples of €10. €10 are equal to 1 profit participation. Profit sharing is limited in time, min 5 years with a maximum of 10 years. You decide what fits you best! E.g. In the event of a sales increase of + €100,000 I will give 1€/per profit participation In the event of a sales increase of + €150,000 I will give €2/per profit participation In the event of a sales increase of + €200,000 I will give €4/per profit participation Offer issued for a period of 6 years. An investor has invested €1,000 or has 100 profit participations Year 1, there is no increase in turnover Year 2, there is a turnover increase of + €100,000 Year 3 and 4, there a turnover increase of €150,000 Year 5 and 6 there is an increase in turnover of €200,000 TOTAL: €1,300 or a return of 30% over 6 years.

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5) Combination reward and return With CroFun, you don't just have the possibility of combining various forms of crowdfunding, but you are also able to get a loan with interest payment linked to a reward. Try combining loans and investments with interesting rewards; it gives potential investors an extra push to choose your project.

E.g. You issue a loan ticket to finance your restaurant. For each loan of €1000 that is issued, the investor also receives interest of 6% as well as once more 15% discount at a restaurant visit.

You get this and a loan; and in addition, you immediately have a solid customer...

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III. FINAL CHECK Before the pushing launch button, it is always advisable to look at everything you've entered again. Watch your video again, read your project description, check whether your rewards/return are interesting enough ... Ask for advice from friends or family, let them see and judge your work. Do not be afraid of criticism; it ensures that you can improve your project. Seek professional advice; it is often an important investment to guide your project to success. Is your social media enabled? Did you have at least a Facebook, LinkedIn, twitter and YouTube account? Is your network ready to provide feedback? Is it ready to share support and promote your project? Are you ready to address your entire network? Is your marketing and PR plan ready to be executed? Are there already articles on your project in the press? Think about the end date of your project. Are there certain actions that you want to do during the last week of your project, then it might be useful to finish your project on a Friday night? Make sure your project complies with the guidelines and general conditions of CroFun, so your project is published faster.

A. Checklist o Project Description o Activation Network o Define project goals o Email lists o Competencies o Social Media pages o Risk o 1st degree network standby o Quality o Conversation Management o Suppliers o Traditional Press o Partnerships o Event o SWOT analysis o Financial Plan o Schedule o Business Plan o Milestones o References o Organisation Plan

o Project o Presentations o Video Equipment o Images o Audio content o Prototype

o Form of crowdfunding o Other forms of financing o Own resources

o Rewards o Return o Milestones

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IV. STARTED, WHAT NOW? Started? Congratulations, now there is no turning back! From the time that your project is online, the clock starts ticking (this may possibly take several days). If you are properly organized, your first friends will already be ready to invest in your project.

A. Campaigning Creating your project on CroFun was the first big step. Now, it comes down to letting all your preparations come to their full potential and attract investors to your project. Crowdfunding is no magic formula; you have to create the magic yourself.

1) Activate your network Make sure you have 20-50 people within your 1st degree network who are ready to assist in the investment of your project. Thank your investors and start communicating with them about your project through CroFun, but also through your social media. This will give you a first form of credibility and trust is created.

2) Promote your project through social media

Let everyone know that your project is on CroFun and communicate this through your email contacts, Facebook, twitter, LinkedIn, Google+, YouTube, Pinterest, Tumblr, and other social media channels that apply to your project. Make topics related to your project through community groups or sites where you are active. Provide some kind of teaser, that makes them look at your project, make it interesting for your network.

3) Tell your story Get regular updates within your project and communicate these with the same passion. By uploading new videos or images, you will ensure that your followers remain interested and start sharing your passion.

4) Create momentum As soon as you see that your project is starting to get support from your 2nd and 3rd degree network, it is time that you focus on bloggers, new groups, community sites where you are not active as well as the traditional press.

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5) Final Provide a dynamic final sprint for your project. As your project progresses towards its end date, it is important to increase the frequency of updates. Possibly create another event to thank investors, which in turn will give a boost to new investors.

B. Maintain Contact Even after the successful or unsuccessful funding of your project, stay in touch with your new network. Whether your project was or wasn't successful on this occasion, they supported you, believed in your project and will do this again with a new attempt.

1) Rewards/Return If your project was successfully financed, it is important to keep your funders up to date of any further developments to your project. Always ensure that you deliver the promised rewards or respect repayment dates.

2) Expand your network Make your funders your first and loyal customers, expand your network with everyone who has supported your project or who has taken part in any way.

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V. FAQ What is CroFun.be? CroFun.be is a crowdfunding platform where you can support projects by donating, borrowing or investing money. There is no intervention from banks. How can I change my personal information? At My CroFun, you can always change your personal information. Can anyone lend money? For your project to be financed through a loan or an investment, you must meet the following conditions:

- You are at least eighteen years; - You have a verifiable Belgian identity; - You have a Belgian bank account; - You are self-employed or actively represent an association.

Can anyone find investors for his project? Anyone meeting the following conditions may offer a project:

- You are at least eighteen years; - You have a verifiable Belgian identity. - You have a Belgian bank account.

Are you looking for people who want to support your project by borrowing or investing money? Then, you must be an association or a corporation or have an independent status. Can repay my loan early? Yes, you can repay your loan early without any cancellation compensation. Of course you must pay the interest for the expired period. Can someone repay his or her loan early? Yes, project providers can repay their loan early without any cancellation compensation. Of course they must pay the interest for the expired period. Where do I declare the acquired interest? When you invest in a project, you receive interest. You must indicate this in the personal tax under BOX XIII.A2 point d. The return is 25%. How long will my project be active? A project is a minimum of one week and a maximum of three months. You decide exactly how long your project will remain active. What if my project is not full after three months? The project is closed. The capital raised is not calculated. You can place your project back online at any time. What if the project I supported is not 90% funded? The project is closed and is cancelled. Your account will not be debited. Can I offer numerous projects simultaneously via CroFun? Yes, you can offer different projects at the same time. Can I support multiple projects simultaneously? Yes, you may support several projects at the same time. The more, the better? How do I send my reward? As project provider, you are obliged to send your rewards yourself. Mention in the description of your project exactly how and when you will deliver them. How do I pay back the borrowed capital? Depending on the type of loan, there will be a monthly, annual or one-time refund. You are required to carry out the payments on the due dates specified in the amortization table. Can I still get the capital raised if the application has not been paid up in full? No, a project must always be 90% funded before you can receive the capital. Can I collect money on behalf of my company?

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Yes, as your company you offer to which project. Do I need a license to raise money for my project? No. Anyone respecting the general conditions can raise money for his project. Is there any monitoring of the figures communicated by an investment? For investments, the turnover figures of the project provider are checked annually. What happens to the funds raised? The capital raised may only be used to implement the project for which it was collected. What is a reward? When you donate money, you usually receive a reward. This may be a book, an album or a download for an app. What is a donation? For a donation you give a certain amount to a project provider. In the majority of cases, you get a reward in return. What is a loan? A loan means that an investor makes money available for a certain period to a project provider. Interest must be repaid on this capital. CroFun works with three types of loans:

- Loan with monthly repayment - Loan with annual interest payment + repayment of principal sum at maturity - Loan where both principal sum and interest are repaid at maturity

All loans are deferred. What is an investment? With an investment, the investor gives a predetermined capital to a project provider. In exchange, he receives a certain return. This amount is calculated on the basis of the company's results. The duration of an investment is between five and ten years. More information can be found at the project offers. Can I amend the collected amount during the course of my project? No. Once you have an amount entered and confirmed, you can no longer change it. This is to prevent the project providers setting it too high and then changing it afterwards. Is CroFun monitored by FSMA or the NBB? CroFun is not a credit institution or financial intermediary. It therefore does not fall under the supervision of the FSMA and the NBB. Is CroFun a financial institution? No. CroFun is not a financial institution or financial intermediary, but a digital marketplace for crowdfunding. Is a project provider required to meet these agreements? Yes, a project provider is required to accept the terms and conditions. These emphasize that he has to meet his commitments. How much does CroFun cost? In order to post your project online at CroFun.be, you pay an advertising fee of € 150. Additionally, you need to pay a success fee of 5% of the capital raised. What's Fund-It-Forward? Fund-it-forward is a concept whereby successful project providers support other projects with FFWD label. It is based on the so-called Pay-It-Forward principle of the movie: work together for a better and more social world! What is the FFWD label? FFWD stands for Fund-It-Forward. Can I download the CroFun logo? The CroFun logo is free to use for project providers and investors. You will find it in the section "Who is CroFun".