CROWDFUNDING IN THAILAND

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A Billion THB Virtual Fund

@Crowdonomic / @ Leo_Shimada

www.crowdonomic.com

Introduction: Crowdonomic Media

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Taking Control of Your FR Destiny

• Mission: Empower Innovators in Asia using the power of Financial 2.0

• Fin-tech, Full portfolio

• SG based; Asia-play

Largest CF in SE. Asia

• L12M: • Larger than other SEA CFPs in terms of

cumulative funds raised• (SG) ~<10x than int’l CFPs

Innovation is our DNA

• World’s first Telecom-backed CF platform (Crowdtivate)

• World’s first global CF platform for projects positively impacting the earth (WWF/ EarthHour)

Active Regulatory Partner

• Engaging multiple Regulators / Gov’t agencies across Asia

Agenda

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Game Changer

Thailand

Context: Equity Crowdfunding

Impact

CF Genesis…The world has changed a lot in the last 80 years… Fundraising Regulations have not

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No General Solicitation (Advertisement restrictions)

Prospectus Exemptions: Limitations on Advertisement; Investor Types; #

Public Offerings = Costly Disclosures / Prospectuses

That’s an Issue: Efficient Access to Capital is #1 Obstacle to growth

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of Micro-SMEs (Start-ups+SMEs) in Asia say access to finance is their largest obstacle to growth

Source: IFC/ Worldbank Enterprise Survey 2006-10; World Bank GDP 2008 - 2010

40%#1

CF Engine… Ability to Harness the full power of web, social media and technology

Publish Offer Page

Access virtual investor community

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Real Time Distribution

Acceleration Validation

Utilize an Online Platform to Drive Fundraising Efficiency

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Standardized offer templates

‘1 click’ investment participation

All or nothing crowdfunding process

Crowdsource to Enhance Investor Transparency

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Transparent online DD process

Issuers use to efficiently manage multiple tracks

Investors access diverse expertise of crowd

Game Changer for Start-ups and Investors

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Efficient outreach to multiple investors via internet

Startups

$ 1.95 M in 16 minUnlimited potential – record

8 weeksAverage online fundraise period

Centralized deal sourcing platform

Investors

Crowdsourced due diligence community

$1 to 5KBite-sized investments to

diversify investment portfolio

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)

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Business Survival rate Follow-on Investments

86% vs 59%** 71%* % of all sampled Equity Crowdfunded businesses still operational on ASSOB since 2005** % of companies still in business 3 year after establishment according to US Bureau labor of statistics

*** % of sampled Equity Crowdfunded businesses who have already secured follow on investments (28%) or were in discussions (43%)

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Quality Deal Flow – Greater Scrutiny, Badge of Honor

Tackling Equity Crowdfunding Challenges

No reported cases of Fraud

Shareholders can be bundled up into a vehicle

Low(er) ticket sizes allows for portfolio

diversification

Investors are also chosen; Use lead investors to

inform market

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

forced to IPO)!”

“High Risk of Fraud” “People will lose all of their savings”

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

bubble

Thailand – The Fundamental Drivers are both Prevalent and Strong

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Social Media Spirit of Giving Natural Base Line growth

Bangkok is the #1 Facebook Capital of

the world with 8.7 million users

Thailand is #1 in South East Asia and #4 globally

for donating money

Year on year growth rate for money raised by

Thai crowdfunding campaigns is 87.1%

Crowdfunding Market Drivers

80%Failure rate

Market Activation Depends a lot on CF Platform Operators

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Typical Operator Business Model

• An abundance of good will• Internet Biz• Variable Fee + Inflection Point• Facebook Lobbying• Part-time teams• Modular technology approach

Winning Success Formula

• Fin-tech business• Professional team• Fully dedicated / Service oriented• Innovative in monetization• Localized tech solutions

Thailand – Smart Industry Development. Leapfrogging other market trends

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CF PlatformFin-tech professional

Firm

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Angel InvestorsLead syndicates

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Venture CapitalCrowdsource LPs; Find Co-Investors

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Retail InvestorsFollow the lead

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CorporatesUse CF as an early prediction market

Thailand – Size of the Prize… 5 to 10 Billion USD

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Angel Investors

HNWI Individuals >

355 BInvestable assets

2-5%Portfolio allocation

$10 BSupply of Capital

1%Adult Population >

$5K-$10KAdult Population

$5 BSupply of Capital

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All major markets considering Equity CF… Need your power to lobby for change in ThailandCountries in Asia debating Equity CF

regulatory frameworksNew Zealand Live Apr. 2014 – Equity / Debt CF

Malaysia Target EoY 2014 – 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

Wrap up

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• No. 1 issue – Access to capital

• CF is about taking control of your FR destiny

• Using Technology, Social Media and an Efficient Online Market Place

• Thailand – Super CF fundamentals. CF operator key to unlocking potential

• Equity CF…All ready in Asia. Bring it to Thailand.

• Unlock Billions to build the Next Big Thing from Thailand