Apstartup crowdfunding ver3
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Transcript of Apstartup crowdfunding ver3
www.crowdround.bz
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
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
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
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.
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
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
Our ObjectivesPrivate Label software for startup communities Apps for Startups
DealFlow for Investors Crowdfunding for Companies
APStartup.com Create, Build, Promote and Fund
WE ARE CURRENTLY…
•A social network platform for Entrepreneurs
•Apps For Startups
•DealFlow for Investors
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
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
Management Team
Tony ChanCEO
Bharat KoryiaCTO
Iain ReedAdvisor
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
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
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
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
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
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
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
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
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.
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
Case Studies : CrowdCube UK
CrowdCube : How it works
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]