Download - EMF Investor Deck - Mar15
1
March 2015
2
The Emerging Frontiers Team
Kevin Virgil Baldwin Berges Daniel WorkmanKevin has been a frontier markets explorer and investor for over fifteen years. His previous experience includes work as a military officer, diplomat, and corporate finance roles with UBS and Merrill Lynch. In addition to his work at Emerging Frontiers he is the founder of Pathfinder Capital, an investment manager specializing in both listed and private placement opportunities in frontier markets.
Baldwin has been active in the investment industry for more than 20 years with a specific focus on emerging and frontier markets. After starting his career as a bond trader, he worked at Invesco, Standard Bank and helped launch Silk Invest, a frontier markets focused investment boutique of which he is a partner. He also became an early adapter of content-driven inbound marketing within the investment management industry and helps businesses position themselves online in order to attract investors.
Daniel has previously worked with a strategic communications firm where he provided counsel to companies and governments in MENA and Latin America. His prior experience includes work with a sovereign wealth fund to develop communications capabilities as well as with the government of the United Arab Emirates, whom he helped formulate communications priorities on defense and trade issues.
COMPANY
We are a private investor marketplace that provides a unique opportunity to invest directly into exciting, high-growth companies in developing economies.
3
emerging and frontier
market entrepreneurs
We are ‘AngelList’ for frontier and emerging markets…
our global network of accredited investors
Investors want more controland we give it to them!
4
High-growth company in developing economy
Our clients invest alongside local market experts, with a structure that provides maximum transparency and control.
Direct Investment
‘Syndicated’ SPV
experienced emerging and frontier market
investors private Investorsprivate
Investors
private Investors
We Know our Emerging & Frontier Markets
5
www.seraph.vc www.pathfinder.vc www.silkinvest.com
We have been investing in frontier markets for more than 15 years
THE STORY
6
RISE OF THE
FRONTIER
MARKETS
THE RISE OF THE ANGEL INVESTOR
(COMPANIES + PROJECTS) > FUNDS
REGULATION + HIGH MINIMUMS = BARRIERS TO ENTRY
The Problem
7
Major infrastructure NGOs / non-profit Aid funding Listed equity SME investing
Investors in the G20 want to find and support these entrepreneurs but lack visibility and/or an infrastructure to do so investors need a trusted network to invest with confidence
THE SOLUTION: EMERGING FRONTIERS
8
Local market experts form syndicates to give our 4000+ investors access to great emerging and frontier market investments Information hub, digital media for a sustained
content marketing campaign to attract new investors, raise profile/awareness
Competitive Landscape
9
Local banks Local incubators Crowdfunding portals
Frontier market SMEs are a $7T economy, with a $1T ‘funding gap’
Size of Potential Market
10
$15 billionFrontier Markets
$29 billionEmerging Markets
15% Share of SME’s
$385M raised in US 506(c) offerings since the JOBS Act was passed in 2012
Growing at >5% every month
Source: Crowdnetic
Global figures are closer to $1bn and will likely reach $10bn by 2020
Customer Adoption/Traction
11
4,500+ subscribers on mailing list
25%average open rate 500+
unique daily website visits
250+Registered investors on the portal
Financial Projections
12
Content
Business directory listing fees US$ 25-100 per month
Sponsored promotions US$1,500-20,000 per transaction)
Investor Portal
5% ‘listing fee’ from project owners
after minimum acceptable level is reached
Structuring
Structuring and managing SPVs to manage investor funds1% annual administration fee charged to investors
10% carried interest on distributions (after investors recover 100% of cost basis)
R E V E N U E P R O J E C T I O N S ( U S $ M )
$0
$5
$9
$14
$18
1 2 3 4 5Website Revenue Crowdfinance Revenue
O P E R AT I N G I N C O M E ( U S $ M )
-$3
$0
$3
$6
$9
$12
1 2 3 4 5Operating Income
Use of Proceeds
14
U I / U X D E V E L O P E R 1 2 5 , 0 0 0F R O N T- E N D ’ D E V E L O P M E N T 1 0 0 , 0 0 0A D M I N I S T R AT I V E / C O M P L I A N C E 7 5 , 0 0 0I N F O - H U B ‘ E D I T O R I N C H I E F ’ 6 0 , 0 0 0
P U B L I C R E L AT I O N S / O U T R E A C H 1 0 0 , 0 0 0V I D E O E D I T I N G / C O N T E N T C R E AT I O N 7 5 , 0 0 0E V E N T S / S P O N S O R E D P R O M O T I O N S 5 0 , 0 0 0
L E G A L 1 0 0 , 0 0 0A U D I T / A C C O U N T I N G 2 5 , 0 0 0R E G U L AT O R Y F E E S / F I L I N G S 4 0 , 0 0 0C R E AT E U S S T R U C T U R E ( B R O K E R / D E A L E R ) 1 0 0 , 0 0 0
T R AV E L ( D E A L S O U R C I N G , D U E D I L I G E N C E ) 5 0 , 0 0 0M A N A G E M E N T T E A M / B O A R D O F D I R E C T O R S 1 0 0 , 0 0 0
T O TA L 1 , 0 0 0 , 0 0 0
KEY HIRES
MARKETING & BUSINESS DEVELOPMENT
REGULATORY & ADMINISTRATIVE
MANAGEMENT & DEAL SOURCING
A FOUNDATION FOR SOLID GROWTH
Fundraising - Next Steps
15
Valuation of US Crowdfunding Platforms
0
40
80
120
160Em
ergi
ng F
ront
iers
Cro
wdn
etic
Fund
rise
Fund
ersC
lub
Our
Cro
wd
Rock
The
Pos
t
Ang
elLi
st
Circ
leU
p
Mos
aic
Cro
wdT
ilt
Mul
tiple
(Pre
-Mon
ey V
alua
tion
/ Rev
enue
s)
Raising $1M at a $2.75M pre-money offering direct equity ownership
W E A R E C R E A T I N G A N E W S TA N D A R D F O R I M PA C T A N D F R O N T I E R M A R K E T S I N V E S T I N G
J O I N U S
CONTACT US AT: 68-80 HANBURY STREET LONDON E1 5LJ UNITED KINGDOM [email protected]
Kevin Virgil
Mobile: +1 202 740 0600 (US)
+44 (0)7815 440184 (UK)
Skype: kvnomad
Baldwin Berges
Mobile: +44 7772 460768 (UK)
+32 471 61 07 92 (Belgium)
Skype: b.berges