Online Investing in the Private Markets. February 2018

Transcription

1 Online Investing in the Private Markets February 2018

2 MATERIAL CONFLICT OF INTEREST: In accordance with National Instrument Registration Requirements, Exemptions and Ongoing Registrant Obligations ( NI ) and its Companion Policy ( NI Companion Policy ), the Company is disclosing the following material conflict of interest: The Company is offering securities through its own online platform, which pursuant to NI implies the Company is a Connected Issuer of itself. This means that the Company has performed due diligence ( Know-Your-Product ), as described in NI , on itself. Furthermore, the Company is trading in its own securities with respect to its Know-Your-Client and Suitability obligations. The Company's KYP due diligence process and KYC suitability obligations are described in Section Our Business, within this Offering Memorandum. The Company responds to this material conflict of interest by disclosure on its online platform and in this offering memorandum. 2

3 FORWARD LOOKING STATEMENTS: This presentation and certain statements may constitute forward- looking statements. Terms such as expect, believe, continue, going forward, expand, and grow, as well as similar comments, are forward-looking in nature. These forwardlooking statements include, but are not limited to, references to future capital investment, financial guidance of any kind, business strategies and measures to implement strategies, competitive strengths, goals, expansion and growth of the business and operations, plans and references to the future success or the risk profile of the company. These forward-looking statements are based on certain assumptions and analyses made by management in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. However, whether actual results and developments will conform with the expectations and predictions are subject to a number of risks and uncertainties including availability and cost of capital, general business and economic conditions, and other factors, many of which are beyond the control of the company. Should one or more of these risks materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those as described herein. Consequently, all of the forward-looking statements made in this presentation are qualified by these cautionary statements, and there can be no assurance that actual results or developments anticipated by management will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the company. DISCLAIMER: The information contained in the Silver Maple Ventures Inc. (registered trade name FrontFundr ) marketing materials (the Marketing Information ) is not part of an offering memorandum, subscription agreement or other such offering document. The Marketing Information may contain references and information about FrontFundr. The Marketing Materials are for informational purposes only. FrontFundr uses reasonable efforts to provide up to date and accurate information in its Marketing Materials, however, errors and omissions may occur. Further, any performance data that may be expressed in the Marketing Materials is an indication of past performance only and does not indicate or guarantee future results. No information in the Marketing Materials should be construed as a solicitation, offer, recommendation, representation of suitability or endorsement of any security or investment. Offerings of securities in FrontFundr are made only by a private placement memorandum, offering memorandum or subscription agreement distributed by persons authorized by FrontFundr. 2

4 Democratizing The Private Markets Changing how companies raise capital Providing access for all investors Operating as online Exempt Market Dealer 4

5 The Problem The public locked out from investing in private companies No efficient online channels in the private capital markets 5

6 Our Solution Simple Transparent Accessible 6

7 Market Opportunity in Canada Private Markets $100 bn Private Equity $ 13.7 bn Public Markets Repeat Public Offerings $ 41bn $ 40bn Venture Capital Angel Investing $ 3.2 bn $ 0.2 bn Initial Public Offerings $ 1bn Fixed Income/Other $ 82.9 bn Goldman Sachs predicts 1.2 trillion global market Sources: CVCA (2017), TMX (2017), OSC (2017), Goldman Sachs (2017) 7

8 Our Focus EARLY STAGE EXPANSION ACQUISITION/ BUY OUT Seed Capital Start-up Capital Growth and Succession Capital 3 rd -4 th Rounds/ Mezzanine Own money, Friends & Family Angels/ Private Investors Angel/Venture Capital, Debt, Junior PubCo s Private Equity & Public Financing $25K $500K $20M+ Approximate Capital Raise Range 8

9 Curated Deals Pre-screen FrontFundr Due Diligence Team Due Diligence Investment Review Committee Lead Investors and Partners Listing 9

10 Revenue Model Onboarding Fees Trade Fees Recurring Fees $3,500 15,000 Listing Fees 6-8 % Cash 6-8% Warrants Post-Deal Shareholder Communication Services (coming soon) Corporate Advisory Services Portal Customization 10

11 Competition Online Transactions Accredited investors All Investors Traditional brokers Offline Transactions 11

12 Where We Are Going VC & PE Equity Crowdfunding Number of seed stage deals Online Investing in Private Companies already mainstream in the U.K. 12 Source: Beauhurst Research, 2016

13 Track Record 13

14 R Largest single-day amount for equity crowdfunding campaign: C$ 508,500 14

15 Key Metrics Deals Closed: 16 Total users: 16,000 Active users: 8,000 Investors: 2,500 Total Raises: $8m Through FF: $3m Average investment: $3,100 Median: $600 Repeat Investors: 10% Pipeline: 20 Seeking: $12 million Revenues per investor: $40 $6K Total Revenues 2017: $340K 15

16 Building the online Private Marketplace C o m p a n i e s Referral Partners Incubators / Accelerators Angels / VCs Platform Digital Marketing Investor Networks Intermediaries & Advisors I n v e s t o r s Two-sided market place accessible for multi-channel users 16

17 Platform Development Strategy FrontFundr Portal Startup investing Private Markets Advisor Platform Portal Startup/Seed Capitala Raise $250K to $3 million Typically Equity Exemptions: Crowdfunding Rules, OM, AI, FF&BA Raise $3 20 million Equity, debt, units Exemptions: OM, AI, FF&BA Deal Syndication Pre-IPO Initial Coin Offerings (ICOs) Access / Dashboard for Investment Advisors, Dealer Reps, Wealth Managers Access to all deals (FrontFundr + Private Markets) Proprietary Technology Platform 17

18 Executive Leadership Team 18

19 Moving Forward Sales & Marketing Build Out Investor Community Platform Development Best Platform Democratizing the Private Markets 19

20 Deal Projections Deals Agency Agreements Signed Deals Closed Average Capital Raise ($ million)

21 Financial Projections P&L Projections ($ 1,000s) Revenue Composition 8,000 Net Revenues Operating Expenses 100% Trade Fees Due Diligence & Listing Fees 6,000 75% 4,000 50% 2,000 25% F 2018F 2019F 2020F 0% F 2018F 2019F 2020F 21

22 The Ask $1.5 million capital raise ($350K committed) $6 million pre-money valuation 22

23 Use of Proceeds Team Retention Sales & Marketing Platform Development Screening & Compliance 20% 30% 30% 10% Business Development 10% 23

24 Thank You Peter-Paul Van Hoeken Founder & CEO (direct) (office) Sean Burke COO (direct) (office) Jill Earthy CGO (direct) (office) FrontFundr is a trade name of Silver Maple Ventures Inc. (SMV). SMV is a registered Exempt Market Dealer in Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario, Quebec, Saskatchewan. FrontFundr is a member of: 24

25 FrontFundr in The News Fight the Man Ski Resort Leads Crowdfunding to Snub Vail 25