apstartup crowdfunding ver3

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www.crowdround.bz

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Page 1: Apstartup crowdfunding ver3

www.crowdround.bz

Page 2: Apstartup crowdfunding ver3

Advice and Mentorship, network introductions

We currently have APStartup, a portal based in HK, China that collates Asian startup funding deals

We aim to rollout a similar software platform on private label to connect major players within the different local communities of the Startup Ecosystem

We are developing crowdfunding capabilities with offshore model and onshore models, where selected projects can be migrated for crowdfunding.

Mission and Objectives

HOW IT WORKS

Page 3: Apstartup crowdfunding ver3

Our technology developed so far

Entrepreneurs, Investors, Mentors and & Advisors, Service Providers

Any type of business, company or organization

Private Groups, clubs and associations, local angel groups, VC firms

Page 4: Apstartup crowdfunding ver3

Serial Entrepreneur

TIE MentorTEN memberCocoonian

StartupsE-Finet.com (8317.hk)Fortitude SecuritiesNew Media Research

CareerThomson FinancialSBC WarburgOffshore BankingFamily Office mgmt.

About the Founder

download Tony Cha’s career bio

Page 5: Apstartup crowdfunding ver3

What we need

• WHAT WE NEED• We need to raise seed round

of USD200,000 Setup our offshore

crowdfuning operations in Belize

Recruit a team of marketing people

Recruit a full time team of developers to enhance our technology

• WHAT WE OFFER Pre-money valuation of

USD1.0m Tranches of USD50,000 for

5% equity Seeking 2 seed angel -

strategic investors. CrowdRound our own

investment, 10% for 100K

• WHAT IS THE POTENTIAL Anticipated 2nd round funding

of USD2-3m at valuations of USD5-8m within 18 months.

Page 6: Apstartup crowdfunding ver3

Use of Funds

• Operating Capital Setup our offshore crowd

funding operations in Belize Recruit a team of marketing

people Recruit a full time team of

developers to enhance our technology

• Deposit for Belize Securities Trading License USD100,00 deposit in Belize

Bank License issued by Belize

Financial Intl. Financial Services Commission (regulator)

Allows us to handle securities and funds on be-half of clients

Further info here

Page 7: Apstartup crowdfunding ver3

Our Own CrowdRound

• Company AP CrowdRound Capital is a

Belize IBC company beneficially owned by founder Tony Chan

Director is Carlo Mason, a qualified attorney based in Belize

Authorized shared capital of 100,000 shares

Currently issued shares is 1 share to See Profit Ltd

See Profit Ltd, a BVI is beneficially owned by founder

• Terms Issue of 100,000 class A

shares in a SPV SPV is seeking max 50

crowdfund investors. USD1 per share. Minimum share tranche is

5000 shares – USD5,000

Page 8: Apstartup crowdfunding ver3

Our ObjectivesPrivate Label software for startup communities Apps for Startups

DealFlow for Investors Crowdfunding for Companies

Page 9: Apstartup crowdfunding ver3

APStartup.com Create, Build, Promote and Fund

WE ARE CURRENTLY…

•A social network platform for Entrepreneurs

•Apps For Startups

•DealFlow for Investors

Page 10: Apstartup crowdfunding ver3

Our Products

Crowdfunding capabilities PRIVATE PORTAL SOFTWARE

Developing offshore crowdfunding capabilities to enable any early stage company to

crowdfund.

We license our software to customers (investors, startup clubs, associations)

www.tiprojects.hk www.tenprojects.hk

Page 11: Apstartup crowdfunding ver3

Our positioning

• Rewards based Portals– many in the market

• Lending based Portals– Many in the market

equity based crowdfunding

Lending based crowdfunding

software platforms for collating projects

rewards based crowdfunding

Deg

ree

of d

ifficu

lty

Degree of competition in market

The market for APStartup

• Equity Based portals– NONE

• Collating projects software– Few players in market

Page 12: Apstartup crowdfunding ver3

Management Team

Tony ChanCEO

Bharat KoryiaCTO

Iain ReedAdvisor

Page 13: Apstartup crowdfunding ver3

The Crowd Round

The Crowd Round is an early round of funding taken by means of international crowdfunding

We take up to 10% of any startup’s shares and transfer them into an offshore SPV holding company for international crowdfunding.

We sell shares in the Belize company to crowdfunding investors , upto 50 investors are allowed

CrowdRound.bz

website in development, est launch early Oct

Page 14: Apstartup crowdfunding ver3

Why offshore

• Hedge funds use offshore Resolves the complex

regulatory rules of different jurisdictions

Tax efficient Cost efficient High scalability

• Regulation Lighter regulation on

marketing and compliance Increase benefit of

• Why Belize Recognized offshore

jurisdiction for companies and funds

Former UK territory with common law

• Partners on Belize Belize Bank Belize Lawyers Belize licensed service

providers

Page 15: Apstartup crowdfunding ver3

Crowd Round - How it works

Investors buys shares directly in the SPV

Target co issues 10-20% of shares to SPV for crowd round

Shares Registrar, share issued

Articles, Certificate of Incorporation

Shareholders agreement of SPV

Belize Protected Cell company

Page 16: Apstartup crowdfunding ver3

Belize Securities Trading Licence

Regulation• Regulated by Belize International Financial

Services Commission• The License shall at all times comply with

the provisions of the Act, the Amended Act and the Regulations made there under, as amended from time to time, as well as the IFS Practitioners (Code of Conduct) Regulations, 2001, as amended from time to time

• The Licensee is required to fully disclose to customers the charges for services performed by registered firms in connection with securities transactions and shall not be discriminatory between customers.

List of approved Services• Money brokering. • Money lending and pawning.• Money exchange.• Safe custody services.• Accounting services• Brokerage, consultancy or advisory.

Formation or management of international business companies or other offshore entities.

• asset protection and management.• International collective investment

schemes (such as mutual funds, unit trusts, etc).

• Money transmission services• Payment processing services

Page 17: Apstartup crowdfunding ver3

Summary of CrowdRound

• Benefits to Company Cost effective way to pursue

Crowdfunding Less compliance issues with

developing onshore regulations Raise a global profile and not just

investors in your own backyard Benefits to Investors Can look at truly global projects Can build a portfolio of

investments Convenience and anonymity of

investing offshore

• Benefits of CrowdRound Faster process than doing

Angel rounds Good way of building enough

investorbase for an IPO Building a userbase for your

products also Efficient and high impact way

of fund-raising Allows accesss to world-class

startups and early stage businesses

Page 18: Apstartup crowdfunding ver3

Revenue and Costs

1 2 3 4 5 6 70

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Deal income

1 2 3 4 5 6 7 8 9 10 11 12 -

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Other costs

Estimated CostsEstimated Revenues

No revenue generated in Y1 due to technical issues

Estimated investment so far is USD120,000

Page 19: Apstartup crowdfunding ver3

Forecasts

• Income is based on Deals income and Apps subscription income

• Apps income is more secure and reliable than deal income

•Deal income has higher risks of closure

• Low cost (mostly online) business

12 Q1

12 Q2

12 Q3

12 Q3

Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8

-100,000

-50,000

-

50,000

100,000

150,000

200,000

In-come

USD Y1 Actual Y2 Y3 Y4Apps income - 43,221 230,149 575,371 Deal income - 137,500 355,000 887,500

Income - 180,721 585,149 1,462,871 total

salaries -46,500 -175,500 -210,000 -525,000 Other costs -18,000 -49,950 -102,000 150,000

total costs -64,500 -225,450 -312,000 -375,000 Net profit -64,500 -44,730 273,149 1,087,871

Page 20: Apstartup crowdfunding ver3

Deal Brokerage(revenue forecast)

• Deal brokerage will be done via crowdround.bz

• Expect to close 2-3 deals per Quarter

• Expected commission rate is 5% on funds raised.

• Each deal needs careful due diligence and selection for crowdfunding.

• No of deals to accelerate as experience and credibility is gained. 0

20000

40000

60000

80000

100000

120000

0

1

2

3

4

5

6

7

Expected No of Deals

Page 21: Apstartup crowdfunding ver3

Risks and pivots

Risk Factors Pivots

IT issues (as we choose to outsource our IT instead of develop in-house)

Went through this is Y1, bad IT meant poor implementation. Had to completely re-write the system and re-launch in y2

Security hacks Because we are using open source software we need to be vigilant of security holes

Deal Quality of startups Only 30% of startups meet investment quality. We use the platform as a dealflow system to filter out good deals

Risk of deal closing Deal closing is a low probability business. We mitigate this by focusing on quality deals and also a wider investor network attracted onto the platform

Risk of deal circumvention This is not easy to protect as deals are not exclusive. We protect only the leads we introduce to investors. All deals we take on has a non-circumvention and finders fee agreement signed. We use legal escrow for completion of transactions.

Page 22: Apstartup crowdfunding ver3

Competition analysis

equity based crowdfunding

Lending based crowdfunding

Deg

ree

of d

ifficu

lty

Degree of competition in market

APSTARTUP AND CROWD-ROUND

software platforms for collating projects rewards based crowdfunding

Note - We have only added dominant players in each category for reference only

Page 23: Apstartup crowdfunding ver3

Case Studies : CrowdCube UK

Page 24: Apstartup crowdfunding ver3

CrowdCube : How it works

Page 25: Apstartup crowdfunding ver3

Thank You !

AP CrowdRound Capital Ltd

Registered address :Hutson Street & Marine Parade Boulevard, Belize City, Belize Tel +825 2570 1161 Fax +825 3020 [email protected]