We are building a community for freelancers, solopreneurs,

micro-sized companies and startups, who want to go further

together rather than alone

INVESTOR DECK 10/2017

Crazy Town is ”a start again” with history since 2002, we know how to run a community & co-working environment

2002-2015: a serious hobby, one of the first co-working

spaces in Europe

2015: restart - from hobby to business

2016: ownership arrangements, decision to

scale up

Freelancers, solopreneurs,

micro-sized companies and

startups are the future of work

These customers need more

than just an office space with

walls.

MARKET NEED

Average Crazy Town member*

• 300 000 EUR turnover

• company size 2,8 people

• 93% growth-orientation

• 85% cooperates with another CT member

• Average age between 35-40 years

• Heterogenous - everything from ICT, marketing, public sector, university, design, consultation and business services to manufacturing

* based on Crazy Town Jyväskylä member survey 12/2016

HOTDESK FIXED DESK TEAM TEAM PLUS

Full membership offering Full membership offering Full membership offering Full membership offering

24/h access to common

areas, no deposit, one

month notice period

Own desk, 24/h access

to common areas

Own room, 24/h access

to common areas, 3

month deposit

Big room, 24/h access to

common areas, 3 month

deposit

Pricing per person Pricing per person Pricing per organization Pricing per organization

195 EUR + VAT / month

290 - 320 EUR + VAT / month

Starting from 590 EUR +

VAT / month

Starting from 790 EUR +

VAT / month

Membership packages

Regardless of your membership package, you always get 24/h access to common areas, meeting rooms and event spaces, as well as access to all Crazy Town communities - free of charge

OUR OFFERING

A supportive

community,

where

entrepreneurs

help each other

New tools and

knowledge, more

learning, events

for members,

A network of

partners, joint-

projects and

other

opportunities

Co-working

space and

infrastructure,

access to all

locations

Main customers for physical memberships

Examples of different types of Crazy Town members

Physical Crazy Town memberships have 3

types of main customers:

• startups: growth-orientation, international from the get-

go, seek for ecosystem and partners that can help them

to achieve that

• microsized companies: no interest to grow beyond 9

people, can provide business services for other members

and participate in joint-projects

• solopreneurs and freelancers: joint-projects with others,

look for new knowledge and moral support

Also bigger organizations and companies with need for

flexible branch offices are increasingly interested in us.

Currently, Crazy Town operates three locations across Finland. We already have over 100 member companies with roughly 350 professionals.

HÄMEENLINNA 350 m2 space

JYVÄSKYLÄ 600 m2 space

TAMPERE 1050 + 500 m2 space,

opened in April 2017

Our own co-working and office space is only a small part of the offering - we want

to deliver co-working as a service for others as well

Customer traction: memberships

0

50

100

150

200

250

300

8/2015:

Reboot

1/2016

6/2016:

Ownership

arrangements

1/2017:

Hämeenlinna

ramp-up

4/2017:

Tampere

launch

7/2017

Member companies at CT People in CT community

High customer retention

and loyalty - because our

members aren’t just

switching office space, but

also work community,

colleagues, partners and

customers, they stick with

us for years

Sales development

0 €

15 000 €

30 000 €

45 000 €

60 000 €

Jun

e, 20

16

July, 20

16

Au

gu

st, 2016

Se

pte

mb

er, 20

16

Octo

be

r, 2016

Nove

mb

er, 20

16

De

cem

be

r, 2016

Janu

ary, 2017

Feb

ruary, 20

17

March

, 2017

Ap

ril, 2017

May, 20

17

Jun

e, 20

17

Sales / month

We expand beyond co-working spaces towards co-working as a service

Memberships

at Crazy Town

locations

Virtual

memberships *

Ecosystem

partnershipsConsulting

Services

brokering *Powered by CT *

100% scalableDifficult to scale

Investments made for the needs of physical memberships

build a base for 100% scalable business models

PRODUCTS

in production under development future opportunity

Crazy Town community managers

(and sales force!)

Our team & roles

CEO, FounderEntrepreneur

since 1997

Partner, expert in

marketing &

conceptualization

Ecosystem partnerships &

consultation projects

Our ”secret sauce” is our ability to create a

truly business- and peer-learning focused

community that’s more than just walls

We focus on community-driven approach,

from weekly events to helping our members to

partner with another

Each unit is has its own Crazy Town community

manager, who helps our members to learn,

grow and do business together. It’s informal,

but focus is always on business and growth.

Why our co-working locations are different?

Focus on real estate or space

Focus on community

Competition for physical memberships / co-working

Focus on early stage business

Focus on established businesses

Typical acceleratorLibraries, other

free spaces & other student societies

Typical co-working space

GROWTH

EXTREMETRANSLATION & MARKETING

CT HÄMEENLINNA

CT JYVÄSKYLÄ

CT TAMPERE

HELSINKI REGION PARTNERS

In Cooperation

Selected members

CT HÄMEENLINNA

CT JYVÄSKYLÄ

CT TAMPERE

CT KAMPPI Partner locations and

networks

CT KUOPIO

Powered by CT Mikkeli?

Powered by CT Äänekoski

CT LAHTI

Winter 2017-2018

POHJANMAA

This is how it could look like!

• New units and Powered by CT units

• Training program (Y-Koulu) for

entrepreneurs in cooperation with Fennia

• #digirockstars accelerator / VC fund

events at CT Tampere

• Crazy Town Tampere & Hermia Business

Development connect to +300 identified

business needs in China

• Cooperation with Finnish investors and

startup activists Peter Vesterbacka &

Kustaa Valtonen

• Cooperation with University properties of

Finland on ”Campus Crazy Town” model

Q1-2/2017

Learning how to expand

DEVELOPMENT TRACK: 2017-2018

Q3-4/2017

Building the foundation

for growth

Q1-2/2018

Gaining momentum

Q3-4/2018

First international operations

- Two new units- Marketing automation

ready- First national

ecosystem partner

- 2-3 new units- Development and

test-launch for Virtual/

Tribe Membership and

Powered-by-CT

- Clarifying internal

processes & tools

- 4-5 new units- Starting international

ecosystem partner

search

- Preparing Tekes

internationalization

funding

- First international unit- Second funding round

Members and revenue 2016-2020

Mem

bers

0

2 000

4 000

6 000

8 000

10 000

Reve

nue

0 €

2 000 000 €

4 000 000 €

6 000 000 €

8 000 000 €

10 000 000 €

2016 2017 2018 2019

Total revenue Members Virtual + "Powered by" members

TOTAL MARKET IN FINLAND FOR MEMBERSHIPS

Number of potential customers ( low-end estimate )

How much customers spend annually?

Total market size1 % of total market

5 % of total market

Virtual membership fees

800 000 648 € 51 840 000 € 518 400 € 2 592 000 €

Crazy Town membership fees

800 000 2 100 € 1 680 000 000 € 16 800 000 € 84 000 000 €

Workforce in Finland: 2,46 million individuals. Out of the total workforce, 50-60% do

knowledge-intensive work and 30% location independent work.

Total market size in Finland: 738 000 - 1 200 000 individuals

Another market consists of a rapidy expanding network of other co-working and co-creation

locations, who can be our partners and customers for a ”Powered by CT” service

Phases

2017

GROUNDWORK FOR SCALABLE

GROWTH

2018

LAUNCHING SCALABLE GROWTH

2022

EXIT

TOPICS:

• Developing the concept • ERP and internal processes • Virtual market place • Product development: Virtual

membership, Powered by CT • Stronger position in Finland, new

units

FUNDING:

• First funding round • ELY funding

TOPICS:

• Launching new scalable products • New units & partnership • First international partner / pilot

customer

FUNDING:

• Second funding round (1 MEUR) • Tekes or Horizon 2020 project

See next slide for examples of possible buyers

Expanding co-working / co-creation chain

Who could buy us in 5 years? (+examples)

Real-estate player, looking for a tested concept

Accelerator and similar business

developer looking for our client base

B2B provider seeking new markets /

customers

Buying our community & content

FINANCIALS

We are looking for

300 € / share

max. 700 shares

700 shares x 300 € = 210.000 € = 23,3 % ownership

FUNDING PLAN, first round 2017

Where to use it?

80 €k

90 €k

50 €k

50 €k

MarketingOpening TampereOpening 2-3 more units in Q3-Q4Software and infrastructure (virtual memberships, Powered by CT)

Where to get it?

210 €k

60 €k

ELY Angels & Crowdfunding

New unit establishing costs

Launch phase

- work hours (location scouting, planning, scouting,

events, recruiting): 15 000 - 20 000 EUR

Losses incurred during the first 6-12 months

- depending on the size of the unit and possible

discounts from the landlord, cumulative losses 20

000 - 40 000 €

Other capital needs

- repairs and renovation: 0 - 200 000 €, capitalized as

part of the rent

- furniture and equipment (150-200 € / m2), leasing

- deposit 0 - 50 000 € (we also collect deposit from our

members, so an equal sum will accumulate during

the first year; however this effects working capital)

OWNERSHIP

Ownership currently

48 %

35 %

17 %

Business Arena Oy (400 kpl)Toni Pienonen (800 kpl)Mikko Markkanen (1100 kpl)

Ownership after new shares

23 %

37 %

27 %

13 %

Business Arena Oy (400 kpl)Toni Pienonen (800 kpl)Mikko Markkanen (1100 kpl)New shares (700 kpl)

Mikko Markkanen, Crazy Town Oy co-founder, CEO

040 758 8712

mikko.markkanen@crazytown.fi

www.crazytown.fi

www.facebook.com/crazytownoy

twitter.com/crazytownoy