crowdonomic equity crowdfunding in malaysia

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CROWDONOMIC 1 The information contained herein (the “information”) has been prepared by Crowdonomic Media Pte Ltd (CWD) for the private and confidential use of prospective investors and is not to be reproduced or distributed, other than in connection with sharing this information with the investor’s financial advisors or consultants. CWD makes no representation or warranty as to the accuracy or completeness of the Information contained herein and all prospective investors are encouraged to conduct their own independent due diligence review. Not an Offer to Purchase or Sell Securities. This overview is for informational purposes and is not an offer to sell or a solicitation of an offer to buy any securities and may not be relied upon in connection with the purchase or sale of any security. Interests in the company, if offered, will only be available to parties who are “accredited investors” and who are interested in investing in CWD on their own behalf. Any offering or solicitation will be made only to qualified prospective investors pursuant to a confidential offering memorandum, and the subscription documents, all of which should be read in their entirety. The Information contains certain estimates of current performance as well as “forward-looking” statements which are based on various sources of data and assumptions of CWD, either or both of which may prove to be incorrect. There can be no assurance that such estimates or “forward-looking” statements accurately reflect current status or will accurately predict future events or the investment’s actual performance. In addition, any projections and representations, written or oral, which do not conform to those contained in this document, must be disregarded, and their use is a viola-on of law. No representation or warranty can be given that the estimates, opinions or assumptions Equity Crowdfunding in Malaysia

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CROWDONOMIC

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The information contained herein (the “information”) has been prepared by Crowdonomic Media Pte Ltd (CWD) for the private and confidential use of prospective investors and is not to be reproduced or distributed, other than in connection with sharing this information with the investor’s financial advisors or consultants. CWD makes no representation or warranty as to the accuracy or completeness of the Information contained herein and all prospective investors are encouraged to conduct their own independent due diligence review. Not an Offer to Purchase or Sell Securities. This overview is for informational purposes and is not an offer to sell or a solicitation of an offer to buy any securities and may not be relied upon in connection with the purchase or sale of any security. Interests in the company, if offered, will only be available to parties who are “accredited investors” and who are interested in investing in CWD on their own behalf. Any offering or solicitation will be made only to qualified prospective investors pursuant to a confidential offering memorandum, and the subscription documents, all of which should be read in their entirety. The Information contains certain estimates of current performance as well as “forward-looking” statements which are based on various sources of data and assumptions of CWD, either or both of which may prove to be incorrect. There can be no assurance that such estimates or “forward-looking” statements accurately reflect current status or will accurately predict future events or the investment’s actual performance. In addition, any projections and representations, written or oral, which do not conform to those contained in this document, must be disregarded, and their use is a viola-on of law. No representation or warranty can be given that the estimates, opinions or assumptions made herein will prove to be accurate.

Equity Crowdfunding in Malaysia

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About Crowdonomic

Table of Contents

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Professional Team with >30+ years of financial / tech expertise

Senior Consultant

Asia Strategy Lead

MBA BA. Law

Senior Consultant

Interest rate Trader MBA Engineering

Reona ShimadaCo-founder & CEO

Nicola CastelnuovoCo-founder & CCO

S.E. Asia

Innovation

S. Korea

Finance

China

M&A

South Asia

Tech

Japan

Strategy

UKS.E. Asia India

Tech

W.EuropeNorth Asia

Finance Operations InnovationInvestment

Experience and expertise

Pioneer in Asia and Internationally Recognized Brand

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Crowdonomic featured in:

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Table of Contents

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Crowdfunding Overview

Crowdfunding… Finance 2.0

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What it is: Crowdsourcing for venture capital

How it Works: Fundraising accelerated by the power of social media and harnessing the wisdom of the crowds

Fill standard offer templates

Publish Online

Advertise via social media

Access virtual investor community

Reach $ targetGrow your business

Smaller amounts of money from many people to reach higher targets

Crowdfunding (CF) variants

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Donation CF Feel Good; Fulfillment

Reward CF Perks

Equity CF Shares / Securities

Debt CF Interest Rate returns

ChinaEast Asia & PacficS.AsiaEurope & Central AsiaLatin AM / CRBNMENAAfrica

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CF almost x2 itself every year and in the developing world expected to reach U$96bn. Asia will dominate.

Source: “Crowdfunding’s Potential for the Developing World” Report; InfoDev, Finance and Private Sector Development Department Washington – World Bank

Low High

8896

46 (51%)50 (52%)

7 (8%) 8 (8%)

4 (5%) 5 (5%)

13 (15%) 13 (14%)

11 (12%) 11 (11%)

5 (6%) 5 (6%)2 (2%) 2 (3%)

Crowdfunding annual transaction value – Intermediate term

Billion; Singapore Dollars ~63 bn

A-Class Investors are joining the movement

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Dave McClure (500 Startups)

Alexis Ohanian (Reddit.com)

Jawed Karim (Youtube)

Dustin Moskovitz(Facebook)

Reid Hoffman(Linkedin)

Jeremy Stoppelman(Yelp)

It will be a Game Changer for both Start-ups and Investors

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Efficient outreach to multiple investors via internet

Startups

Low – mid digit FRsRecord millions

8 -12 weeksAverage online fundraise period

Centralized deal sourcing platform

Investors

Crowdsourced due diligence community

$1 to 5KBite-sized investments to

diversify investment portfolio

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Technology Consumer/Retail Real Estate Fund

• MedTech robotics firm in Israel

• Raised S$4.2 M on OurCrowd

• IPO’d receiving S$46.2 M in net proceeds

• F&B Chain in UK

• Raised S$4.3M on CrowdCube

• Pool of 749 investors – accredited and retail

• Crowdfunding for a hotel in Palm Springs

• Raised S$1.9M on RealtyMogul

• Pool of 85 accredited investors

• Prolific early-stage venture fund

• Crowdfunding $100M fund with SeedInvest

Target Issuers: Proven and Emerging CF verticals

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Business Survival Rate

Follow-on Investment Rate

Exit Multiple for Crowd Investors

86% 71% x10+

*1 *2 *3

*1: 86% of all sampled Equity Crowdfunded businesses still operational on ASSOB since 2005 vs 59 % of companies still in business 3 year after establishment according to US Bureau labor of statistics*2: % of sampled Equity Crowdfunded businesses by Crowdfund Capital Advisors who have already secured follow on investments (28%) or were in discussions (43%)*3: Rewalk estimate: Rewalk raised $1.3 mn via ECF platform in 2013. IPO valuation was $191M in September ’14. At its maximum, its market valuation was $428 mn

Source: Various; Crowdonomic Team analysis

Crowdfunding – Robust performance track record

No reported cases of Fraud

Shareholders can be bundled up into a

vehicle

Investors are also chosen; Use lead investors to

inform market

You can control the level of information disclosure

“I’ll be stuck with managing Thousands of Shareholders (and

forced to IPO)!” “High Risk of Fraud”

“Competitors will steal all of my information”

The Market will be over-flooded with NVA Capital creating a

bubble

Many concerns and challenges are being addressed as the industry evolves

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Opportunity in Malaysia

Table of Contents

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All major markets in Asia are now at various stages of implementing CF targeted legislationCountries in Asia debating Equity CF

regulatory frameworks New Zealand Live Apr. 2014 – Equity / Debt CF

Malaysia Target Q2/Q3 2015 – Equity CF

Japan Target mid-2015 – Equity CF

India Proposal review – PCP* ended

Australia Proposal review – CAMAC

Singapore Under review - TBD

China Under review - TBD

Hong Kong N/A

Thailand SEC Public Consultation Paper released in December 2014

Source: Crowdonomic Analysis; Competitive Intelligence; Literature search

* PCP: Public Consultation Process

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ECF Regulatory Framework – Malaysia Highlights*

(*) Note: Contents in this page are based on SC ECF Public Response Paper and they are still pending parliament final approval. Source: http://www.sc.com.my/wp-content/uploads/eng/html/consultation/140925_PublicResponse_2.pdf

Who: All Malaysia incorporated private companies + SC Registered Micro Funds

How much: Private Companies (RM 3 mn / RM 5 mn) + VC Funds (uncapped)

Share Types: Common Shares (preferred and ordinary); single type per Offering

Fundraise Type: All-or-Nothing (Oversubscription is allowed)

Offer Types: Primary (new share sale); Secondary (existing shares; 2 wks per 6 months)

Advertisements: May advertise to the public but ONLY via the ECF platform

Investors: Retail (RM 50k) + Angel (500k)+ Sophisticated Investors (Uncapped)

Disclosures: <300k (not mandatory); 300 – 500k (case by case); >500k (Audited)

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Malaysia ECF Business Model: Value Add Market Place

Source: Crowdonomic Team analysis

Micro VC fund

(managed by CWD)

Crowdsource for LPs

Invest and Trade

Trade Shares

Micro funds

Syndications

Secondary Sales of Shares

Direct Investments

Retail Investors

Professional Investors

Institutional Investors

Issuers - Primary Sales

Fundraising by Funds

Crowdonomic Marketplace

The End

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Questions?

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Contact Us

www.crowdonomic.com

@crowdonomic

www.facebook.com/crowdonomic

Leo Shimada (Co-Founder / CEO) – [email protected] / (65)82236018

Nicola Castelnuovo (Co-Founder / CCO)– [email protected] / (65)90056541