Fundraising Presentation

www.crowdforangels.com

Be an Angel, Fund a UK Company

Crowd for Angels (UK) Limited (Company number:03064807)

is authorised and regulated by the Financial Conduct Authority

(Reference number:176508) 1

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Forward looking statements A pitch may contain forward-looking statements or assumptions which inter alia relate to future projections, prospects and developments. Forward-looking

statements are identified by their use of terms and phrases such as “believe”, “could”, “envisage”, “estimate”, “intend”, “may”, “plan”, “will” or the negative of

those, variations or comparable expressions. Any such statements are based on trends or expectations at the time of writing and are subject to risks and

uncertainties that could cause actual outcomes to differ materially from those expressed or implied by those statements. Such statements should be regarded

as illustrative expressions only which are believed to be reliable at the time of writing but should not be taken as implying any indication, assurance or

guarantee that such trends or expectations are correct or exhaustive or will continue in to the future. Each reader must make their own independent

assessment of the information provided in a pitch and seek independent, relevant and specialist professional advice prior to placing any reliance on it. These

risk warnings are not a substitute for that professional advice and any such reliance is placed at your sole risk. The Company makes no judgement or opinion

of the likelihood of targets being achieved.

Loss of capital

Many small companies may fail. If you invest in the company, rather than seeing a return of capital or a profit, it is possible that you will lose some or all of your

invested capital. You should not invest more money in the Company than you can afford to lose without altering your standard of living.

Illiquidity

Investments in small companies will be highly illiquid. It is very unlikely that there will be a secondary market for the shares of the company. This means that

you are unlikely to be able to sell your shares until and unless the company lists its shares on a securities exchange or is bought by another company. Even for

a successful company, a listing or purchase is unlikely to occur for a number a years from the time you make your investment.

Rarity of dividends

Small companies rarely pay dividends. This means that if you invest shares in the company , even if it is successful, you are unlikely to see any return of capital

or profit until you are able to sell your shares in the company. Even for a successful company, this is unlikely to occur for a number of years from the time you

make your investment.

Dilution

Investments in shares of the company are likely to be subject to dilution. This means that if the company raises additional capital at a later date, it will offer new

shares of the company to the investors, irrespective of whether you accept any such offer, the percentage of the Company that you own will decline. Any new

shares issued may also have certain preferential rights to dividends, sale proceeds and other matters, and the exercise of these rights may work to your

disadvantage. Your investment may also be subject to dilution as a result of the grant of options (or similar rights to acquire shares) to employees of, service

providers, or certain other parties connected with, the Investee Company.

Diversification

Investing in shares should only be done as part of a diversified portfolio. This means that you should invest relatively small amounts in multiple companies

rather than a lot in one or two companies. It also means that you should invest only a small proportion of your investable capital in either of these asset classes,

with the majority of your investable capital invested in safer, more liquid assets.

RISK WARNING

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Crowd for Angels (UK) Limited owns Crowd for Angels (www.crowdforangels.com), one of the UK’s

leading crowdfunding platforms for both debt and equity funding.

Operating since January 2014, we have built up an efficient and robust technology driven platform and

are now looking to aggressively increase our investor base. Our goal is to offer innovative and

appealing products to investors in order to provide funding to ambitious small companies. We support

both public and private UK companies through all stages of their lifecycle, from seed to pre-IPO and

when listed. We do this through equity funding under the SEIS and EIS initiatives and through debt

funding via our mini-bonds, convertible loans, loans with warrants and secured loans.

Through a user-friendly platform combined with a sound system of procedures, Crowd for Angels aims

to offer high levels of member experience and satisfaction. Our investors get the opportunity to

connect, capitalise and share the growth prospects of small companies at no additional cost to

themselves.

Crowd for Angels (UK) Limited (Company number: 03064807), is authorised and regulated by the

Financial Conduct Authority (Reference number: 176508).

In April 2015 it acquired Crowd For Angels Limited, the developer and owner of the technology platform

used by the company.

INTRODUCTION

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Debt

Our debt products are used to fund

both listed and private companies

through mini-bonds, convertible

loans, loans with attached

warrants, and secured loans.

PRODUCTS

Equity

Our equity products consist of the

sale of shares in a company in

order to finance a special

requirement, and offer investors tax

relief via the SEIS/EIS schemes,

subject to individual circumstances.

This provides a very important

incentive for individuals, while the

companies who are trying to

fundraise also benefit greatly.

Crowd for Angels provides both equity and debt based crowdfunding products. Through our

sophisticated platform investors can invest as little as £25 in companies they believe in and share

in their success.

Crowd for Angels is available on multiple devices

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PRODUCT INNOVATION

We have made improvements to the standard equity and debt products by:

1 Providing innovative minimum and maximum

funding goals which allow entrepreneurs to lower the initial barrier to securing funding.

Providing clear and transparent information on

our products to investors regarding pricing,

valuation, type of investment and number of

shares being issued.

Using a nominee service to mitigate investor

disputes and keep paperwork to a minimum.

Offering our services to companies of any size,

from start-up to pre-IPO and beyond.

Charging no fees to investors throughout the

process. 2

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SUBSTANTIAL ACCOMPLISHMENTS TO DATE

1. We were one of the first crowdfunding platforms in the

UK to achieve authorisations from the Financial

Conduct Authority (FCA) to carry out crowdfunding

activities for both debt and equity products. We have

also been approved by HMRC to be an Innovative

Finance ISA manager.

2. Over two years we have developed a sophisticated

platform, www.crowdforangels.com, which has the

capacity to increase functionality and cater for a variety

of crowdfunding models and jurisdictions.

3. Proven the model with successfully funded pitches. To

date we have listed 27 pitches on our platform, three of

which are currently fundraising and seven that have

successfully hit their target..

A UK Leading Crowdfunding Platform

4. Proven our marketing ability by consistently

being in the 4th position in web traffic for

equity crowdfunding platforms in the UK

according to Alexa (figures as at 23rd March

2016). We have achieved this despite a

limited marketing budget and are confident

that further in this area investment will bring

exponential growth.

4. Our commitment to innovation, service and

quality has been recognised through

features in a range of media such as City

AM, Mail on Sunday, start-ups, Asian Voice,

ScreenDaily, The Telegraph, Crowdfund

Insider, crowdsourcing.org and shareradio.

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Our current marketing methods have been tried, tested and proven to grow our user base, deliver

conversions and attract pitches to the platform.

In order to further improve returns it is our intention to grow the user base, achieve a lower user

acquisition cost and raise the average investment size. We believe we can do this through delivering

quality pitches, aggressively targeting professional and institutional investors and by focusing on

channels that deliver cost effective traffic.

We primarily target ABC1 males who are aged between 35 and 55. These individuals will have

previously made investments via more traditional methods and may also be members of other

alternative investment platforms. Our content has been aligned with this target market in mind and we

will continue to focus on this market for the foreseeable future.

In addition, a large part of our marketing comes from our own users: our companies bring their

networks and our investors refer their friends, creating a virtuous circle which is a major driver of

growth.

As our current distribution channels have proven effective we will increase our spend on these

significantly.

It will also be critical to diversify our marketing spend and expand on opportunities that we have

identified. Therefore we will look to work with a PR consultancy, expand our business network by

engaging and partnering with more professional firms such as fund managers, brokers and IFAs and

through engagement with investors at events.

MARKETING

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In April 2014 the Financial Conduct Authority

began the regulation of UK crowdfunding, in an

attempt to stimulate and protect the industry.

The regulations gave the crowdfunding sector the

ability to scale and offer real competition to the

banking and SME finance sector. It also creates a

significant barrier to entry for new companies

looking to enter the industry.

Crowd for Angels achieved FCA permissions to

carry out crowdfunding activities in January 2014.

We have identified 13 other equity platforms in the

sector, of which only 5 do both debt and equity

funding. Whilst competition exists, we believe we

are well positioned for substantial growth on the

back of a burgeoning crowdfunding market.

MARKET CONDITIONS

According to a recent report from

innovation charity Nesta the UK market for

alternative finance was worth an estimated

£3.2 billion in 2015. The total value of all

equity crowdfunding investments grew by

295% compared to 2014, from £84 million

to £332 million.

In 2015 a total of £6.2 million was raised

via debt based securities equating to a

growth rate of 47.6% on the £4.4 million

raised in 2014.

Nesta also indicated that for peer-to-peer

business lenders surveyed in the report,

they anticipated a 27% increase in their

volume because of the Innovative Finance

Individual Saving Account.

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Crowd for Angels earns income by charging

companies fees on the funds they raise. We

take a percentage of the total amount raised

from each successful pitch. For equity deals

this is 6% of the raised funds and for debt

deals this ranges from 3.5% to 4.5%. In

addition, companies pay us 2% on amounts

converted into equity and on warrants

exercised.

We also have the first right of refusal on any

subsequent fundraising for companies which

we successfully raise money for.

We have a secondary source of income

through selling our knowhow and making our

platform available to non-competing funders.

MONETISATION STRATEGY

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BUSINESS DEVELOPMENT OPPORTUNITIES

We now see excellent opportunities to further develop our crowdfunding activities and expand into

related areas.

The government has announced that it intends to allow crowdfunded debt securities to be held in

an Innovative Finance ISA from Autumn 2016. There will be a final round of consultation in June

2016 before the rules are introduced.

We believe we are one of only six platforms that can offer these products. We have been granted

approval by HMRC to become ISA managers and thus give our investors the opportunity to invest

through the new Innovative Finance ISA (IF-ISA). This opens up a large potential market for us,

with 13 million ISAs being opened in the 2014/15 tax year. We also note that, according to the

Financial Conduct Authority, there are £160 billion of funds in the UK earning the same or less than

the 0.5% Bank of England base rate. With the IF-ISA offering higher returns we expect huge

interest in this new product.

We are currently developing a secondary market feature, upon which investors will be able to buy

and sell investments that have been purchased on the Crowd for Angels platform.

We are exploring the possibility of launching a fund to invest in a portfolio of debt securities in pre-

IPO and listed companies.

SUCCESS KEY FACTORS

crowdforangels.com

Scalable

• Electronic delivery via the internet,

• Internationally accessible

• Documentation, payment and KYC all automated

• Platform can be adopted for new & diverse product range.

• Low and centrally located support services

• White label available for multi-jurisdictions and can be adapted for a variety of new

products

Capital efficient

Low overheads resulting in favourable operational gearing

• A small team needed to support the platform

• Low acquisition and transaction cost

• Understood customer behavior

• Leverage well established channels

• Fully developed software.

Unique selling points

• Model uses unique features such as a price per share as well as Minimum and

Maximum fundraising target

• Offer both equity and debt based securities

• Debt products for listed, pre-ipo and private companies

• Approved as an ISA manager

• A fund managers portal for funds

• Authorised as an ISA Manager 11

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Expanding our registered user base is core to our business model and growth, therefore an injection

of capital would facilitate an increase in the quantity and breadth of our marketing.

Our budget assumes if the maximum fundraising is achieved that we will spend c.70% of the funds

raised on marketing. Year 1 will see a c.7-fold increase in the marketing budget compared to historic

levels and a 9-fold increase in Years 2 and 3.

Crowd for Angels has built up a very lean and efficient operational structure. The increased

marketing spend, combined with significant internal capacity for taking on more investment pitches,

means that we expect to benefit significantly from our strong operational gearing.

Achieving the maximum fundraising would be sufficient to meet our budgets for the next three years.

If only the minimum fundraising is achieved this would be sufficient for Year 1 of the business plan

only. However, we would expect to raise additional funds after Year 1 once the viability of the

business model has been proven.

PURPOSE OF FUNDING

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APPENDIX 1

Alexa 23rd March 2016

Crowd for Angels (UK) Limited

8 Little Trinity Lane, London, EC4V 2AN

Tel: 0207 437 2413

Email: info@crowdforangels.com

www.crowdforangels.com

“Crowd for Angels (UK) Limited (Company number:03064807) is authorised

and regulated by the Financial Conduct Authority (Reference

number:176508).”

To invest, please visit:

https://crowdforangels.com/investi

nus

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