2. Lending Meets Impact
Small Business Loans Industry Evolution
1980s Large financial institutions are the
only game in town for small business
loans
1990s Private lending companies begin
offering better financing options
2000s Online lending platforms emerge
offering lower rates for borrowers
2010s The sharing economy hits finance and
creates P2P lending
Impact Investing Industry Evolution
1980s Impact investing does not exist as
environmental concerns are not top of
mind
1990s Environmental index’s gain in
popularity in stock markets
2000s Green bonds and sustainable project
financing begin
2010s Crowdfunding legislation allows for
more access to private investments
SproutChange:
established P2P market
with access to impact
investments
3. P2P Lending Market
With new regulation in Canada in 2016, this proven and established market is
ripe for the taking.
Global P2P Loan Issuance
5. What We Do
SproutChange is a Peer-to-Peer Lender that loans money to
local, socially responsible companies. Invest as little as $25 and get
Access to Investments in Private Companies. We are creating
a Marketplace that allows investors to interact with their
investments on Multiple Levels. The P2P model is the true
symbol of the Sharing Economy coming to finance. We are
bringing Impact Investing to Everyone. An investment in
SproutChange is an investment in our planet, our people, and our
future.
6. Opportunity
Fintech
Investment
since 2010
$1B+
Small Business
Lending
$55B
SproutChange fills
a gap in the
growing Canadian
Fintech market
Investment focused on robo-
advising, payments, cyber
security, and accounting
Socially-focused borrowers
Medium rates
Medium returns
Fintech platform
Traditional borrowers
High rates
Low returns
Mostly large banks
7. SproutChange
pools money
from many
investors to lend
out
Client creates a profile
on SproutChange.ca
Client determines how
much they want to invest
Client becomes a
SproutChange member
Operating Model
Borrowers get access to
a new market, platform,
and sharing community
Investors become new
customers for our
borrowers
1
3
2
Renewable
Energy
Healthy
Living
Farming
10. Target Market: Millennials
LESS THAN 30% of Millennials wealth is
invested in stocks.
“They prefer physical assets and demand simple,
clear, straightforward products.”
60%are interested in or currently use social
impact investments.
“Millennials see no reason to separate impact and
investment”
TWO THIRDS are
not only concerned with the
state of the world but feel
obliged to change
something.
“Millennials give more value
to brands who act socially
responsible”
1 IN 3
are open to switching
banks in the next 90 days
NEARLY HALF
are counting on tech
startups to overhaul the
way banks work
“Millennials believe innovation will
come from outside the industry”
57%would change banks based on their digital offerings alone!
Information taken from the millennial disruption index, Merrill Lynch study, and Deloitte study.
11. Investment Management Canadian Market
Path to Critical Mass
1. Canadians have $1.32T invested in mutual funds in September 2016.
2. Millennials (1981-2000) number 9.5M in Canada. Their share of the
income earned in Canada is expected to grow significantly as they
continue to enter the workforce and reach their prime earning years.
3. Millennials have contributed to a major trend in investment
management from active to passive investment styles, leading to
growth in mutual funds and ETF’s.
Assets Under Management: $20M
Client Investors: 20,000 (0.21% penetration of Canadian Millennials or 1.00% of Canadian University students)
Ignoring carry fees, we expect this company can be fully viable at Revenue of $400,000. At this point, we expect a major
positive inflection in the company viability. Based on our Assets Under Management (AUM) fee of 2.0%, viability is achieved
at $400,000/2.0% = $20M AUM. Assuming an average investment of $1,000 per investor (our target market of millennials
are entering job market and will likely invest gradually), 20,000 investors are needed to achieve critical mass.
Millennial Population Will Increase as Boomers
Decline
Investment Opportunity
9.5 MILLION
Millennials live in Canada
4.23 MILLION 2 MILLION
Millennials are invested in
mutual funds in Canada
Millennials are currently in
post secondary school in
Canada
12. FarmingHealthy LivingRenewable Energy
Borrowers
SproutChange will focus on 3 main areas of sustainable innovation. These 3 sectors will be
uniquely targeted in order to have a diversified portfolio of borrowers
Imagine
contributing to the
growth of a local
solar farm in rural
Quebec. You could
help finance their
expansion,
improvement, and
market growth.
Make a difference in
the way people take
care of themselves.
Support companies
developing products
to influence health,
safety, and overall
wellbeing.
It is often said that
we are what we eat.
Start supporting
businesses that
care about your
diet. Local organic
farms can use a
helping hand to
push the needle
forward!
14. REVOLUTIONIZE
THE WAY PEOPLE
INVEST
By offering an investment that
allows people to earn high
returns while making a
difference, SproutChange
aims to impact the way people
view their money and
investments forever
CREATE A
MARKETPLACE
The vision for the company is to
create a marketplace where clients
interact with socially responsible
businesses on multiple levels (as
investors, and consumers). We see
this marketplace being a global
phenomenon.
1-Year PlanVision
These plans are only the tip of the iceberg in terms of potential. SproutChange aims to
create a global marketplace that revolutionizes the way people invest.
SPREAD THE LOVE
Convince middle class millennials in
Canada that the platform benefits
them financially, while benefitting the
world whole-heartedly.
SAVE
SUPPORT
SPROUT
