Online Funding and Investment in the Private Markets. March 16, 2016

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1 Online Funding and Investment in the Private Markets March 16, 2016

2 Disclaimer This presentation has been prepared by FrontFundr, a registered trade name of Silver Maple Ventures Inc. (SMV), an Exempt Market Dealer, and is for general information only. It is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice. The material in this presentation includes general background information about private placement capital raising and investments. This information is given in summary form and does not purport to be complete. Please consult an appropriate professional regarding your particular circumstances. 2

3 Our Story 3

4 The Challenge in Canada Limited capital for companies. Limited access for investors. 4

5 What are we doing COMPANIES INVESTORS Engage a broader audience of investors Access to a greater variety of deals 5

6 Mission We give investors access to screened companies that we guide and support through the funding cycle - growing the open capital market for all. 6

7 Equity Crowdfunding Securities FrontFundr Equity Debt Rewards Non-financial Donations FundRazr Kickstarter Indiegogo 7

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

9 Democratizing Investing Access to funds Company Brand Champions Efficient Financing 9

10 Investor Focus Professional Investors Accredited Investors Retail Investors Personal Relationships Virtual Relationships FrontFundr Account Team Financial Intermediaries / Dealer Representatives Platform/ Customer Service 10

11 Investor Benefits Fully accessible market Screened investment opportunities Fully supported online process Diverse portfolio Online account information 11

12 Seasoned Investors How We ALL Win! + Retail Investors = More companies funded Reviewed by seasoned investors Retail investors join Risk diversification 12 More funded deals

13 Company Benefits Better access to capital Brand champions Simply share Corporate structuring Post-deal communication 13

14 14

15 Key Criteria Prospect Lounge Company should be: Incorporated Building an online presence In beta stage, close to, or post commercialization Preparing to raise a minimum of $75,000 to $2M Ready to start generating investor interest Pitch Place Company should: Show market validation Pass due diligence process Have 30% committed 15

16 Status Today 2 completed deals 1 live overfunding deal 5 live offerings in Pitch Place 27 companies in Prospect Lounge 1,250+ users 16

17 % of Dollars Raised AI FFBA CF 17

18 # of Investors AI FFBA CF 18

19 FrontFundr in the News A new type of investment for investors: Equity crowdfunding, Interview with CEO FrontFundr New crowdfunding rules open doors for companies and investors Cash-strapped B.C. startups begin tapping equity crowdfunding Vancouver equity crowdfunding platform closes first successful deal FrontFundr, Guusto Succeed with Equity Crowdfunding in Canada 19 IPO vs. investors: Vancouver tech startups debate raising capital FrontFundr Launches to Provide Investors and Companies Access to a New Capital Market

20 Regulatory Diversity in Canada Six provincial regulators adopted the Startup Crowdfunding Exemption : Contemplating Start-up Crowdfunding Exemption : Sasketchewan January 2016 Crowdfunding Exemption and Offering Memorandum: 20

21 Crowdfunding Rules Today 21

22 Crowdfunding: Global Market Growth Annual Growth Rate 2014: Debt : 222% Equity : 181% USD bn Debt Equity Non-Financial Source: Massolution, 2015 CF The Crowdfunding Industry Report,

23 The Canadian Private Market Total Existing Private Market: ~ CAD 140 bn CAD bn Accredited Investors Family, Friends & Business Associates Offering Memorandum Source: University of Calgary, The School of Public Policy, The Exempt Market in Canada: Empirics, Observations and Recommendations, March Other

24 Empowering Growth of Private Companies Household Net Worth CANADA U.S. $6.4 trillion $64.8 trillion Shift to investment crowd funding 0.2% 0.5% 1.0% $13 bn $130 bn $32 bn $325 bn $64 bn $648 bn Sources: Bank of Canada 2014, US Federal Reserve, Venture Capital 24 & Private Equity Association (CVCA) 2014, FrontFundr 2015

25 FAQ 25

26 WHY FRONTFUNDR? 26

27 The New The Capital FutureMarket Long term impact of advancing private capital markets To enable efficient access to private capital Investment crowdfunding has one key purpose: To enable efficient access to private capital Scaling the model for all exemptions Commoditizing private capital Accelerating economic growth Accelerating economic growth 27

28 Sign up at FrontFundr.com Sean Burke - COO (direct) (office) sean@frontfundr.com Jill Earthy - CGO (direct) (office) jill@frontfundr.com 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. 28

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