crowd funding

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AS Equity (P) LTD

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Page 1: Crowd funding

AS Equity (P) LTD

Page 2: Crowd funding

INTRODUCTION

• Crowdfunding gained traction in the United States after the launch of ArtistShare, the first online platform for crowdfunding, in 2003.

• The use of small amounts of capital from a large number of individuals to finance a new business venture.

Page 3: Crowd funding

Types of Crowd Funding

Page 4: Crowd funding

Advantage of Crowd Funding

• It provides access to capital.

• It hedges risk.

• It serves as a marketing tool.

• It gives proof of concept.

Page 5: Crowd funding

Equity Crowd Funding an Journey to Ipo

• Concept of business crowd funding appears to be gaining ground as IPOs continue to be delayed.

• Equity Crowd Fund basically regulated by SEBI.

• Help's in capital accumulation for future IPO.

Page 6: Crowd funding

MSE Sector In India

• A recent IFC study on MSME finance in India indicates there are 29.8 million enterprises.

• Employing 69 million people.• This sector accounts for 45 per cent of Indian

industrial output and 40 per cent of exports.• Issue in financial institutions, especially banks,

averse to lending to this sector.

Page 7: Crowd funding

Start Crowd funding for MSE sector

• Crowdfunding provides a much needed new mode of financing for start-ups and SME sector and increases flows of credit.

• SMEs are able to raise funds at lower cost of capital without undergoing through rigorous procedures in this mode.

• Crowdfunding provides new investment avenue and provides a new product for portfolio diversification of Investors.

Page 8: Crowd funding

The Accredited Investors

• Qualified Institutional Buyers • Companies incorporated under the Companies

Act of India, with a minimum net worth 20 Cr.• High Net Worth Individuals (HNIs) with a

minimum net worth Rs. 2 Crores • Eligible Retail Investors (ERIs)

– who avail services of a Portfolio manager – who have passed an Appropriateness Test

Page 9: Crowd funding

Sucessful crowd funding company to become a million dollar company