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Disrupting commercial mortgage lending Tony Sinclair 07707 410 248 [email protected] 20/97 Curtain Rd London EC2A 3BS

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Page 1: Funded city pitch deck

Disrupting commercial mortgage lending

Tony Sinclair07707 410 [email protected]

20/97 Curtain RdLondon EC2A 3BS

Page 2: Funded city pitch deck

Problem

Lending ● Reduced bank lending since 2008● 40% lending gap in the commercial mortgage market● Pain: Property developers need to find new ways to finance deals

Investment● Secure investments are earning all-time low interest ~ 2%

Page 3: Funded city pitch deck

Solution

A vehicle for property developers to access 40% mortgage gap

BUSINESS OWNERS

Raise expansion

capital

INVESTORS

Average 8% interest p.a.,paid monthly

Page 4: Funded city pitch deck

Market SizeUK commercial property market ● £647 billion in 2013● Growing 11% per year

Global peer to peer lending market● £5.4 billion projected in 2014● £14 billion projected in 2020● £500 billion projected in 2025

Property market figures from ipf.org.uk (March 2014): The Size and Structure of the UK Property Market.

Crowdfunding figures from Forbes and crowdsourcing.org

Page 5: Funded city pitch deck

Business Model● Platform connecting property developers and investors● Enables the general public to invest in commercial mortgages

Revenue streams● 10% of funds raised per property● 1% per month loan interest

● Users paid average 0.75% interest per month● Free to signup - No fees from users

Page 6: Funded city pitch deck

TechnologyProprietary high volume trading platform

Proprietary deal status and investment performance funnel

Automatic user credit risk profile

Automatic distributions and repeatable sales

Bank grade security with full audit log

Dev co-founders built hedge fund platform with $20B AUM

Page 7: Funded city pitch deck

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Page 10: Funded city pitch deck

Marketing and Sales

Email & Direct Mail

350,000+ broadcast

Finance and property investor networks

PR

Local and national

Tech and finance

Press and digital

Digital Branding

Remarketing banners

PPC brand keywords

Organic content distributed through LinkedIn, Twitter and

Facebook

Page 11: Funded city pitch deck

Competition

Lend Invest● £10,000 minimum investment● Mixed commercial and residential● £70M raised from the crowd

Low buy-in

High buy-in

Weak asset class

Strong asset class

Funding CircleSeedrs

● No security● Investing in high risk startups● Investing in personal loans

● £500 minimum investment● Central London commercial

Property CrowdProperty MooseHouse Crowd

● £100K residential property● Low profile locations

Page 12: Funded city pitch deck

Solid Founding TeamLaurence Bilton, Godfrey Bilton

● Family of UK commercial property developers● £300M IPO on housebuilding business in 1972

John Young● Built tech backend for hedge fund with $20B AUM

Lee Benson, Pete Craig, Anthony Sinclair● Entrepreneurial marketers built and exited 25 online businesses● Former COO built sales team with £5M revenue● Generated $2M revenue in 24 hour crowdfunding campaign

Wayne Miller● Multiple eight-figure exits in ICT / telecoms● Ernst & Young Entrepreneur of the Year Award Winner

Bob Kidby● Former Head of Property at Lovells Commercial Property Law (£750M turnover)

Page 13: Funded city pitch deck

Four Year Financial Projection

2015 2016 2017 2018

Gross revenue 476,000 3,409,700 4,557,000 7,651,000

Net revenue (56,988) 1,542,654 2,730,016 5,060,217

OPEX 486,416 1,481,383 1,144,481 1,325,728

EBITDA (10,416) 1,928,317 3,412,519 6,325,272

For simplicity, OPEX and COGS are fungible in this projection.

All figures GBP

Page 14: Funded city pitch deck

Offer£300,000 seed

● For 30% equity● £600,000 repaid from revenue in Years 2 and 3● Ratchet to 5% equity on repayment

● FCA compliance and legals (£94,000)● Sales and marketing (£163,000)● Operations (£43,000)● Provides a ten month runway to reach profit

£250,000 loan stock ● Ensure early deals are fully funded● We can pay 10% interest p.a. on this capital

Page 15: Funded city pitch deck

Tony Sinclair07707 410 [email protected]

http://preview.fundedcity.com/username: previewpassword: gamechanger