The Old World is Disappearing
Stockbroker Banker Real Estate Agent
Crowdfunding: Cutting out the Middleman
Crowdfunding Platforms
Equity Property
Credit
Rewards
VentureCrowd distinguishing characteristics: • Multi-asset class • Agnostic platform for sourcing deal flow • Expert partners for pre-screening • Encourage responsible investing e.g.
diversification
Evolution of VentureCrowd Deals
VentureCrowd’s $1.2M raise for ingogo would have ranked in the top 10 equity crowdfunding deals in the US in 2014
$50K
$363K
$505K
$1.2M
$4M
Australia Real Estate
Housing Assets GDP Ratio
Australia $4.86 trillion $1.49 trillion 3.26
UK £4.28 trillion £1.52 trillion 2.82
Canada $3.14 trillion $1.77 trillion 1.78
USA $18.45 trillion $15.98 trillion 1.15
Residential Real Estate
$4.86 trillion
Commercial Real Estate $0.7 trillion
Australian Listed Stocks $1.4 trillion
Australian Superannuation
$1.4 trillion
~3.3x size of Australian economy
Barriers of Entry to Private Property Investment
$500K average price
of a one bedroom
apartment in a good Sydney
location
$2.2K monthly
mortgage payment on
$400K loan at 4.5%
$18K stamp duty in NSW on a new
$500K investment property
$100K minimum deposit
required for 80% LVR
mortgage
Individual private property investment: • inherently fragmented and inefficient • few ways in which to access compared with
bonds/equities • investors generally rely on their own networks
to access quality deals • minimum ticket of at least $50,000 -100,000 • time and effort required to actively manage
and operate the property • concentration risk
$2K conveyancing fee and other disbursements
Property Trusts: • provide more diversification & liquidity • reduce transparency and control • do not offer the “thrill” of investing in a
single property or the “touch it, see it, feel it” quality that has long made property the favoured investment in Australia
A New Alternative
Investing via VentureCrowd Property: • invest as little as $100 • eliminates most of the barriers or difficulties involved with traditional real estate investing • provides a level of access and transparency that has never before been possible for real estate • greatly reduces the time and capital requirements needed to invest • allows investors to invest more quickly • allows investors to allocate the same $50,000 -100,000K they may otherwise put into a single property across
multiple properties in different geographies thereby achieving greater diversification.
Investor Property
VS.
Incumbents
Banks
Real Estate Agents Conveyance
Property Management
Property Trusts
$
$
$$
$
$