This slides explains the way Bolero Crowdfunding works for entrepreneurs

1. Invest and grow togetherMember of the KBC group
BOLERO CROWDFUNDING
Koen Schrever
Entrepreneur presentation, March 2015
CEO KBC Securities/Bolero Crowdfunding

2. Member of the KBC group
What is crowdfunding and what does Bolero
Crowdfunding offer?

3. Member of the KBC group
3
4 types of crowdfunding…
presale
‘pretailing’
donation reward loan equity
non financial return financial return
philanthropy direct equityP-to-B
P-to-P
social
mezzanine
convertible
equity linked
subordinated
revenue-sharing
crowdfinance

4. Member of the KBC group
registration succes fee administration
[ 0 – 250 € ]
to get it published
[ 3% - 12% of the amount]
all-or-nothing
all-or-more
flexibel funding
[ 0% - 3% ]
transaction costs
payment method
Depending of the CF platform & model:
Crowdfunding is not a free lunch!

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focus of crowdfunding
Filling the equity gap?
KBC Securities is active in the entire value chain!

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• New exemption added to the Prospectus Law (Article 18§1(j))
• allows crowdfunding without a prospectus so long as the offer does not exceed EUR 300.000, and
the maximum amount per investor does not exceed EUR 1000
• No other specific legislation on crowdfunding or crowdfunding platforms in Belgium
or within the EU
• FSMA issued 2 communications (FSMA-2012-16 dd 12/07/2012 and FSMA-2014-04
dd 26/06/2014)
Belgian regulatory framework

7. Member of the KBC group
Growing attention policy makers
4.2. Financiële sector: bank- & verzekeringswezen
4.2.1. Een financiële sector ten dienste van de samenleving
“…de regering zal risicokapitaal stimuleren teneinde onze
ondernemers voldoende financiering te verzekeren en het
eigen vermogen van onze bedrijven te versterken. De regering
zal, in navolging van de reeds recentelijk genomen
maatregelen inzake de versoepeling van de prospectusplicht,
de financiering via crowdfunding verder stimuleren en de
activiteiten van crowdfunding platforms beter omkaderen…”

8. Member of the KBC group
Growing attention journalists

9. Member of the KBC group
Snapshot Belgium 2013
Bron: DS Infografiek, Douw en Koren

10. Member of the KBC group
Snapshot Belgium 2014
Source: KPMG: Crowdfunding in Belgium - 2014

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Snapshot Belgium for the future
Source: KPMG: Crowdfunding in Belgium - 2014

12. Member of the KBC group
Investors:
 Retail investor clients
 Bolero platform , Crowdfunding
 Private banking and wealth clientèle
 Corporate Customers
 private placement
Crowdfunding by KBC Bolero?
PLUS: ACCESS TO INHOUSE EXPERTISE
(M&A, LEGAL, CREDIT, OPERATIONS, ICT, RISK, COMPLIANCE, ETC.)
Entrepreneurs:
 We see lots of starters who don’t get
loans:
 Start-It
 Connections with entrepreneurs, industry
organisations, associations,…
 Connection via our branch network
 How can we help them?
Get access to finance
Involve a crowd
Investing in early stage

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• Access to a wide range of
entrepreneurs
• Cooperation with Venture Capitalists
and Business Angels
• Screened by FSMA and NBB
• Not in a fund
• Transparency
• Reliable platform
What makes Bolero Crowdfunding unique?
• Access to crowd-investors (Bolero
customers,…)
• Combined with Private Placements
(wealth and private banking, corporate
banking customers)
• Start-it and other partners to help
entrepreneurs
• Early relation with a leading bank
• Future-proof structuring of the
investment
• Very competitive cost

14. Member of the KBC group
What type of companies are in our sweetspot?
How can the deal be structured?

15. Member of the KBC group
• No specific sector focus
• Companies looking for financial crowdfunding (bonds or equity)
• 100k€ - 5,000k€ (combination of crowdfunding and private placements)
• Preferably with a first product ready / first paying customers
• Preferably with already a professional investor on board
• Company legal structure: cvba or NV
• CrowdFunding: it’s more than funding…
Type of companies?

16. Member of the KBC group
Type of instruments if Project is cvba
Project
cvba
Bond
Convertible
Bond
Equity
crowd
crowd
crowd
• Crowd invests in instruments issued by
cvba
• Cvba manages everything directly
(Shareholder-register,…)
• Bolero platform could be used for dividend
/ intrest payments
• Crowd can do follow-on investments
• Private Placement is separate from crowd,
but preferably same conditions
Private
placement

17. Member of the KBC group
Type of instruments if Project is NV
Project
NV
Bond
Convertible
Bond
Equity
crowd
crowd
• Crowd invests in bonds issued by NV
• Crowd invests in a cvba which in turn
invests in conv bond or equity in NV
• Preferred dividend or remuneration
• Board composed of NV board
members
• Crowd can do follow-on investments
• Very limited PoA internal cvba
• Extended PoA versus NV (SHA,
• Bolero platform could be used for dividend
/ intrest payments
• Private Placement is separate from crowd,
but preferably same conditions
Private
placement
SPV cvba

18. Member of the KBC group
Equity investments via crowdfunding
Newco
NV
crowd • BA / VC / PP invest in a company Newco (e.g. C Class shares)
• Newco creates SPV cvba to collect funds from the crowd
• Newco holds A shares in cvba
• Crowd: B-shares in cvba with no voting rights
• SPV has observer right in Newco
• Small cost; bookkeeping + annual account
• Crowd invests in a cvba which in turn invests in Newco
• Board composed of Newco board members (e.g. C-Class
director, President, Entrepreneur,…)
• Templates for the cvba available
• VC / BA / Entrepreneur can get leverage with the crowd
investment
• Crowd can do follow-on investments
• Newco can do a new round (D-shares) and only needs 1 signature
from the cvba (Crowd)
• At exit, proceeds go to the crowd and SPV is liquidated.
VC / BA
or Private
placement
SPV cvba Follow-on
crowd

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What does the platform look like?

20. www.bolero-crowdfunding.be

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Entrepreneur process

22. Member of the KBC group
1. Register on the platform: create a username and password
2. Register as entrepreneur:
1. Fill-out the project summary and submit
2. After first approval, submit full details on your project
3. After final approval, publish your project
4. Start working on your crowd: motivate them them, explain, keep informed
5. Wait until the project funding round is finished
6. In case of a successfull project, proceeds are transferred*; if target funding level is not reached,
investors will be refunded
A few simple steps to take part in crowdfunding
ENTREPRENEUR PROCESS
* A 6% successfee applies

27. After this press the submit button
Wait for feedback from Bolero Crowdfunding whether your
project is suited for the site
Once approved you can start putting in all necessary
information for the investors
After final approval you can publish your campaign and start
the fundraising process

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1. A video
2. The idea
3. The competitive edge
4. Team
5. Market opportunity
6. Marketing strategy
7. Distribution model
What will the entrepreneur provide to the investor?
1. Scalability
2. Financial forecast
3. Revenue model
4. Milestones
5. Use of proceeds
6. Risks
7. Exit plan

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Investor process

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1. Register on the platform: create a username and password
2. Register as investor:
1. Identification with E-ID + acceptance of terms and conditions
2. Appropriateness test
3. Creation of an e-Wallet (automatic)
4. Click ‘invest-now’ on a project that looks attractive to you
5. Choose the investment amount and payment method*
6. Confirm
7. Wait until the project funding round is finished
8. You have invested in case of a successfull project or get refunded*
A few simple steps to take part in crowdfunding
INVESTOR PROCESS
* For some payment methods, 3% surcharge apply which are not refundable

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Advantages and risks of crowdfunding

36. Member of the KBC group
ADVANTAGES
Access to a new way of financing
Reasonable costs / effort
The power of the crowd: awareness,
market feedback, promotion
Combination with Venture Capital,
Business Angels,…
For the entrepreneur
ATTENTION POINTS
Limited possibilities: €300,000 in total with
€1000/investor, unless prospectus or accredited
cvba
Large number of shareholders if not properly
structured
Open communication: competition sees what
you do
A campaign requires time and effort

37. Member of the KBC group
ADVANTAGES
Access to young companies at an early
stage: growth potential
Higher potential returns if company
performs well
Possibility to spread over a large number of
companies
Being part of the companies of the future
Close dialogue with entrepreneur possible
For the investor
ATTENTION POINTS
High risk: non-achievement of goals,
bankruptcy, fraud,… can lead to full-loss of
investment
Limited transparency: entrepreneurs
provides information to the crowd
Very limited or no liquidity
Possibly a long time to exit

38. Member of the KBC group
The role of Bolero crowdfunding:
• No due diligence
• No advice
• Execution only
• Appropriateness test
• Disclaimers
• Information security: penetration tests and risk
scans
• Private Placement: matchmaking only, contract
with entrepreneur and investor
• Entrepreneur responsible for communication
with investors via the platform
• FSMA/NBB open dialogue
Risk mitigation
As investor
• Be aware of the risk of young
companies
• Assess the business plan and ask the
entrepreneur for additional information
if needed
• Invest limited amounts of money which
you don’t need in short term
• Invest in smaller amounts spread over
multiple projects

39. Member of the KBC group
How to create a good crowdfunding
campaign?

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41. Member of the KBC group
Events

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45. Member of the KBC group
Entrepreneurial Summit: Feedback
Proficiat met het succesvolle event.
Ik vind dat jullie de duidelijke nood, opportuniteit & timing voor CF en zo’n
event heel knap hebben ingeschat.
Ik was onder de indruk van de opkomst en de opname in de pers.
De volgorde en de boodschappen van de sprekers zaten goed en de
cubes waren knap.
De Summit was inderdaad bijzonder geslaagd op alle vlakken: de cubes,
de organisatie, de opkomst, de sprekers, de lancering van het
onlineplatform (met dank aan Kunstmaan en de voormalige strategisch
coördinator van de stad:-), de reacties op twitter, ... Het was top en het
geeft een stevige basis om op voort te werken.
Even uit persoonlijke naam: ik denk dat de organisatie absoluut top was.
Proficiat.
KBC, een grootbank met een breed nationaal investerdeerdersnetwerk, is
een ideale matchmaker. Fijn om te zien dat jullie dit netwerk aanspreken
ten behoeve van startups en ondernemerschap.
Ik denk dat jullie initiatief een "schot in de roos" is en het bewijs dat een
grootbank ook denkt aan verandering van zijn eigen business model, een
schitterend voorbeeld van innovatie in de praktijk.
Sta me toe jullie van harte te feliciteren met de 2 launch events van Bolero
crowdfunding vrijdag en zaterdag. Het was allemaal zeer professioneel en
contentwise sterk. De reacties waren alom positief.
Uiteraard was ik persoonlijk ook tevreden om hieraan te hebben
deelgenomen.
Thank you for all & it has been a great pleasure working with you!
Nogmaals proficiat met de organisatie van beide events.
thx voor de opportuniteiten en vooral ook aan je hele team voor de
vlekkeloze organisatie
Was de moeite vandaag! Knap werk van gans bolero team! Kmo-
mentaliteit...! Proficiat. Zo gaan we crowdfunding op de kaart zetten in
Vlaanderen!
Again congratulations for the successful organisation
Dank voor de uitstekende organisatie van dit event. Indien er opvolging
komt van geïnteresseerde investeerders laat ik het u weten.
Ongelofelijk! Ik had een investeerder die het volledige openstaande deel
van de ronde wil funden aan dezelfde T&C’s als de VC waar ik mee
spreek!
Ik was afgelopen zaterdag op de bolero KBC Securities Entrepreneurial
Summit, waarvoor trouwens mijn complimenten voor u en uw team voor
de organisatie van het event.
Er waren enkele personen met interesse in ons project. Ook één zeer
waardevolle introductiemogelijkheid bij een top farma bedrijf in de US.
Het beste event waar ik ooit aan heb deelgenomen als entrepreneur

46. Follow me on Twitter
Contact me
Member of the KBC group
@Schrever_Koen
Koen.Schrever@kbcsecurities.be