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 Consumers drive the earnings of most companies
 Analysts at banks get sales reports after the event
 Consumers can be leading indictors of stock performance
 Collectively we can outperform the market
Conclusion
There has to be a better way, where investors get a fairer deal and the fund managers are compensated on
creating real returns. We have had the banking fallout, the fund industry is next
Problem
Billions paid into Pension, Mutual & Investment Funds monthly. The majority underperform the market
99% of individuals can’t name their fund, its manager and performance last month
Through inertia, investors lose billions in lost returns Investors are charged regardless of performance The traditional industry is boring and unengaged
This is the crowd that drive the underlying companies earnings
Rationale
Explosion of available information and technology, consumers can be leading indicators of stock performance
Who knows better or first, how or is performing?
A shopper who visits the store each week, who can see any change in footfall or product offering in real time
A student changing from one brand of mobile phone to another, along with their friends
Or
An Analyst at a traditional fund who receives a sales report at the end of each quarter or year
Thousands of passionate stock
pickers compete to create the
best portfolio and win cash prizes
Top performers stock selections
are used to construct our
Investment / Mutual fund (s)
We share revenue, with the top
performers to retain talent
Solution
Stock pickers on our site are proven to outperform the market
Crowd Sourced Stock Mutual & Investment Funds
Retail investors invest in the funds
We make the process
1. Secure & Transparent
2. Easy
3. Social
4. Engaging
Online Wealth Management
$1 billion under management,
60% growth in last quarter
Peer to Peer Trading
3 million users, 128 million copied
trades, $400 billion in nominal
value traded
Market Validation
We combine two successful products into one great product
Individuals trust the stock trading ideas of their peers?
YES
Individuals make investments into funds using online portals?
YES
The Mutual Fund Market
inflows each year
USA – 45% of households own a
mutual fund – $13 trillion market
India – Market expected to double
in size in next 5 years to $300 bn
Europe – European governments
are actively encouraging long term
savings
USA
$184
billion
India
$41 billio Europe
€87
billion
Product
Beat The Nifty
The Indian portal is live and branded
to local preferences
The same trading architecture will be used to launch
the USA and European portals, with a western
branding
Follow That Fund
TOP PERFORMERS
COMPENSATED with
a % of the fees we
earn, invested into the
fund to retain their
talent. We will also
launch the USA and
European Funds
WITH A 2 MONTH
SOFT LAUNCH we
have over 2,000
users. We have
signed a joint
venture with a large
Indian broker and
media group, and are
in discussions with
fund administrators
WITH 12 to 15
MONTHS OF TRACK
RECORD we will
launch a regulated
fund that individuals will
be able to invest in,
and track online.
Along with a social
framework for investors
to interact with the top
performers
TECHNOLOGIES
BUILT to track traders
performance within a
framework that is
simple to use and
hard to manipulate
Traction & Business Model
WITH 9 MONTHS
OF TRACK RECORD
we will launch the
fund concept, both to
stock pickers and to
investors
Revenue
202
Target of $4 Billion Under
Management
First Full Year with $25 Million
Under Management
201
6
Target $5 billion+ AUM by 2020
1% Management Fee
Performance Fee for returns above the market
$50 million reoccurring management fees
$25 - $50 million in performance fees
$75 - $100 million in NET revenue annually
Cost of sales circa 15 - 20% of gross
Conservative forecastTarget $1 billion+
$15 - $20 million Conservative forecast
Justification – Etoro is executing over 50 million trades pa, with a nominal value
in excess of $100 billion. Wealthfront’s AUM, grew in 2013 from $100m to
$500m, and in 2014 from $500m – $1 billion. Its target is $100 billion by 2025
Direct Indirect
Focused on a brokerage business model, and their
current platform would not allow them to replicate our
fund
Competitors
No direct competitors & no other virtual portfolio portals use the same logic
All of our indirect competitors have accelerating traction and show huge opportunity for growth
Legacy portal, badly executed
Focused on sector and niche trading ideas.
Does not track individual traders performance.
Acts as an intermediary / fund manger for other
fund providers and does not manage its own
funds. Would be an ideal distribution partner
Sagar Vadher
CTO
10 years working for some of Europe's leading
technology companies (SITEL & Lastminute)
Msc Electronic and Electrical Engineering
Mehul Patel
CEO
7 years equities portfolio manager
FCA & IMC Registered
Bsc Investment & Financial Risk Management
Finance Contacts
Fund Managers
BOE Approved
FCA Approved
Team
Investing
Money raised will be used
to launch USA and
European portals
£250k @ 10%
Post Valuation
10%
Reserve
25%
Production
50% Salaries
15%
Advert
& PR
£250k @ 10%
Post Valuation
£250k @ 10%
Post Valuation
£250k @ 10%
Post Valuation
Company Description Started Users Traction Funding
Etoro Social Trading
Users Copy Others Users Trades
2007 3 million Registered Users
250k Active Copy Traders
125 million Copied Trades
$400 billion In Trades
$34 million
Spark Capital
BRM
Guy Gamzu
Social Leverage
Jonathan Kolber
Lending Club USA Peer to Peer Lending
Individuals Lending to Other Individuals
2007 150k Lenders
150k Borrowers
$4 billion In P2P Loans
Growing Quick $250m PM
$250 million +
Google Ventures $125 million
DST Global
Foundation Capital
Kleiner Perkins Caufield * Byers
Union Square Ventures
Norwest Venture Partners
Canaan Capital
Wealthfront USA Online Investment Manager
Directs Users to Investment Funds & ETFS
2011 15k Live Portfolios $1 billion + AUM
Average Account 80k
User base Growing 20% PM
$70+ million
Index Ventures
Social+Capital Partnership
Reid Hoffman (LinkedIn)
Greylock Partners
DAG Ventures
Prosper USA Peer to Peer Lending
Individuals Lending to Other Individuals
2006 2.2 million Users $1 billion In P2P Loans $100+ million
Blackrock
Sequoia Capital
Draper Fisher Jurvetson
Crosslink Capital
Accel Partners
CompuCredit
TomorrowVentures
Tim Draper
ZOPA UK Peer to Peer Lending
Individuals Lending to Other Individuals
2005 50k Lenders
80k Borrowers
£550 million in P2P Loans £20+ million
Arrowgrass Capital
RIT Capital Partners Benchmark Capital
Wellington Partners
Covestor Online Investment Manager
Discovers Smaller Emerging Money Managers
2006 15k Registered Users $20+ million AUM $28 million
Spark Capital
Amadeus Capital
Bay Partners
Union Square Ventures
Nutmeg Online Investment Manager
Directs Users to Investment Funds & ETFS
2011 10k Live Portfolios
25k Registered Users
£100+ million AUM £10+ million
Pentech
Armada Investment Tim Draper
Funding circle Peer to Business Lending
Individuals Lending to Existing Businesses to Expand
2010 73k Registered Lenders £300 million Lent to Businesses $58 million
Union Square Ventures
Ribbit Capital
Motif Investing USA Innovative Stock Broker 2010 100k Registered Investors Investment Advisors
Executing Client Funds
$86 million
Goldman Sachs
JP Morgan
Foundation Capital
Balderton
Contact
+ 44 (0)794 168 1195Mehul Patel | CEO
Mehul.Patel@FollowThatFund.com
twitter.com/FollowThatFund
FollowThatFund
FollowThatFund
facebook.com/FollowThatFund

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Ftf pitch deck june 2014

  • 1.  Consumers drive the earnings of most companies  Analysts at banks get sales reports after the event  Consumers can be leading indictors of stock performance  Collectively we can outperform the market
  • 2. Conclusion There has to be a better way, where investors get a fairer deal and the fund managers are compensated on creating real returns. We have had the banking fallout, the fund industry is next Problem Billions paid into Pension, Mutual & Investment Funds monthly. The majority underperform the market 99% of individuals can’t name their fund, its manager and performance last month Through inertia, investors lose billions in lost returns Investors are charged regardless of performance The traditional industry is boring and unengaged
  • 3. This is the crowd that drive the underlying companies earnings Rationale Explosion of available information and technology, consumers can be leading indicators of stock performance Who knows better or first, how or is performing? A shopper who visits the store each week, who can see any change in footfall or product offering in real time A student changing from one brand of mobile phone to another, along with their friends Or An Analyst at a traditional fund who receives a sales report at the end of each quarter or year
  • 4. Thousands of passionate stock pickers compete to create the best portfolio and win cash prizes Top performers stock selections are used to construct our Investment / Mutual fund (s) We share revenue, with the top performers to retain talent Solution Stock pickers on our site are proven to outperform the market Crowd Sourced Stock Mutual & Investment Funds Retail investors invest in the funds We make the process 1. Secure & Transparent 2. Easy 3. Social 4. Engaging
  • 5. Online Wealth Management $1 billion under management, 60% growth in last quarter Peer to Peer Trading 3 million users, 128 million copied trades, $400 billion in nominal value traded Market Validation We combine two successful products into one great product Individuals trust the stock trading ideas of their peers? YES Individuals make investments into funds using online portals? YES
  • 6. The Mutual Fund Market inflows each year USA – 45% of households own a mutual fund – $13 trillion market India – Market expected to double in size in next 5 years to $300 bn Europe – European governments are actively encouraging long term savings USA $184 billion India $41 billio Europe €87 billion
  • 7. Product Beat The Nifty The Indian portal is live and branded to local preferences The same trading architecture will be used to launch the USA and European portals, with a western branding Follow That Fund
  • 8. TOP PERFORMERS COMPENSATED with a % of the fees we earn, invested into the fund to retain their talent. We will also launch the USA and European Funds WITH A 2 MONTH SOFT LAUNCH we have over 2,000 users. We have signed a joint venture with a large Indian broker and media group, and are in discussions with fund administrators WITH 12 to 15 MONTHS OF TRACK RECORD we will launch a regulated fund that individuals will be able to invest in, and track online. Along with a social framework for investors to interact with the top performers TECHNOLOGIES BUILT to track traders performance within a framework that is simple to use and hard to manipulate Traction & Business Model WITH 9 MONTHS OF TRACK RECORD we will launch the fund concept, both to stock pickers and to investors
  • 9. Revenue 202 Target of $4 Billion Under Management First Full Year with $25 Million Under Management 201 6 Target $5 billion+ AUM by 2020 1% Management Fee Performance Fee for returns above the market $50 million reoccurring management fees $25 - $50 million in performance fees $75 - $100 million in NET revenue annually Cost of sales circa 15 - 20% of gross Conservative forecastTarget $1 billion+ $15 - $20 million Conservative forecast Justification – Etoro is executing over 50 million trades pa, with a nominal value in excess of $100 billion. Wealthfront’s AUM, grew in 2013 from $100m to $500m, and in 2014 from $500m – $1 billion. Its target is $100 billion by 2025
  • 10. Direct Indirect Focused on a brokerage business model, and their current platform would not allow them to replicate our fund Competitors No direct competitors & no other virtual portfolio portals use the same logic All of our indirect competitors have accelerating traction and show huge opportunity for growth Legacy portal, badly executed Focused on sector and niche trading ideas. Does not track individual traders performance. Acts as an intermediary / fund manger for other fund providers and does not manage its own funds. Would be an ideal distribution partner
  • 11. Sagar Vadher CTO 10 years working for some of Europe's leading technology companies (SITEL & Lastminute) Msc Electronic and Electrical Engineering Mehul Patel CEO 7 years equities portfolio manager FCA & IMC Registered Bsc Investment & Financial Risk Management Finance Contacts Fund Managers BOE Approved FCA Approved Team
  • 12. Investing Money raised will be used to launch USA and European portals £250k @ 10% Post Valuation 10% Reserve 25% Production 50% Salaries 15% Advert & PR £250k @ 10% Post Valuation £250k @ 10% Post Valuation £250k @ 10% Post Valuation
  • 13. Company Description Started Users Traction Funding Etoro Social Trading Users Copy Others Users Trades 2007 3 million Registered Users 250k Active Copy Traders 125 million Copied Trades $400 billion In Trades $34 million Spark Capital BRM Guy Gamzu Social Leverage Jonathan Kolber Lending Club USA Peer to Peer Lending Individuals Lending to Other Individuals 2007 150k Lenders 150k Borrowers $4 billion In P2P Loans Growing Quick $250m PM $250 million + Google Ventures $125 million DST Global Foundation Capital Kleiner Perkins Caufield * Byers Union Square Ventures Norwest Venture Partners Canaan Capital Wealthfront USA Online Investment Manager Directs Users to Investment Funds & ETFS 2011 15k Live Portfolios $1 billion + AUM Average Account 80k User base Growing 20% PM $70+ million Index Ventures Social+Capital Partnership Reid Hoffman (LinkedIn) Greylock Partners DAG Ventures Prosper USA Peer to Peer Lending Individuals Lending to Other Individuals 2006 2.2 million Users $1 billion In P2P Loans $100+ million Blackrock Sequoia Capital Draper Fisher Jurvetson Crosslink Capital Accel Partners CompuCredit TomorrowVentures Tim Draper ZOPA UK Peer to Peer Lending Individuals Lending to Other Individuals 2005 50k Lenders 80k Borrowers £550 million in P2P Loans £20+ million Arrowgrass Capital RIT Capital Partners Benchmark Capital Wellington Partners Covestor Online Investment Manager Discovers Smaller Emerging Money Managers 2006 15k Registered Users $20+ million AUM $28 million Spark Capital Amadeus Capital Bay Partners Union Square Ventures Nutmeg Online Investment Manager Directs Users to Investment Funds & ETFS 2011 10k Live Portfolios 25k Registered Users £100+ million AUM £10+ million Pentech Armada Investment Tim Draper Funding circle Peer to Business Lending Individuals Lending to Existing Businesses to Expand 2010 73k Registered Lenders £300 million Lent to Businesses $58 million Union Square Ventures Ribbit Capital Motif Investing USA Innovative Stock Broker 2010 100k Registered Investors Investment Advisors Executing Client Funds $86 million Goldman Sachs JP Morgan Foundation Capital Balderton
  • 14. Contact + 44 (0)794 168 1195Mehul Patel | CEO Mehul.Patel@FollowThatFund.com twitter.com/FollowThatFund FollowThatFund FollowThatFund facebook.com/FollowThatFund