Powering Entrepreneurship with Crowd Funding Agora Collective www.innovestment.de

1. PoweringEntrepreneurshipwithCrowdFunding Agora Collective www.innovestment.de 20. March 2012

2. Events Details and Description Event Title: Powering Entrepreneurship with Crowd Funding Date: 20. March, 2012 Time:19:00 (7:00 PM) Place: Agora Collective Presenters: Thomas Herzog, Dr. Robert MacKenzie, Norbert Töpker Program: 20-30 minutes presentation, followed by discussion and activity Event Text: “How can this idea be financed?” Every inventor, artist, business/social entrepreneur is confronted with this fundamental question when striving to realize his/her idea. There are probably many people who are amazed by and would support the idea, so why not ask them (the crowd)? The concept of accumulating resources from the collective (i.e. crowd sourcing) isn’t new, but there are emerging methods to better organize the transfer of these resources and the necessary communication. In this seminar we will focus on the enormous potential of “Crowd Investing”, but also aim to explore the concepts and terms of crowd sourcing, crowd funding/financing in general. Quite honestly, we hope to also impress a few people with the ideas and crowd investing model of Innovestment, because we’d like to accelerate the implementation of your great ideas.

3. About Innovestment for Start-ups • We drive innovation and entrepreneurial dreams forward by unleashing the business potential of Crowd Investing. Start-ups and developing companies gain access to a broad range of business capital, while private investors gain access to fresh and exciting business opportunities. Our investors are regular, competent citizens, who consciously invest in specially-selected companies. Our platform ensures a transparent transaction for both sides, as well as the following benefits to the companies: • Our market-driven model provides a clear valuation of your company and could even increase your company valuation. Selling less shares for the raised capital is a decisive advantage. • Our network of solvent investors and a minimum equity holding of 1,000€ per person ensure a manageable number of shareholders. • Fair contracts, in which for example there is no dilution protection for the investors. This simplifies your search for new investors in subsequent financing rounds. • A success-based fee only for a successful financing round with Innovestment. There are no further costs for your company.

4. The People of Innovestment Thomas Herzog (36) Dr. Robert MacKenzie (35) Norbert Töpker (35) Presenters • Sponsorpay • zeb/rolfes.schierenbeck • NanoTech & MedTech R&D • Start-up & Spin-off experience • IT consultant • Start-up experience Daniel Appelhoff (30) Dr. AlexRajko (29) Filipe da Costa (29) • McKinsey consultant • Auction researcher • BCG consultant • Start-up coach RWTH Aachen • BCG consultant • Start-up coach RWTH Aachen

5. The Founding Story While on vacation in Istanbul in late 2010, two initiators of Innovestment were discussing their current projects. One was coaching young entrepreneurs in Aachen (RWTH) and was frustrated with the financing difficulties (i.e. time, expenses, unfair conditions, etc.) faced by many young entrepreneurs with very promising ideas. The other was enthusiastic about completing his PhD on the topic of auctioning mechanisms. In a moment of inspiration the core idea behind Innovestment was born: The creation of a platform to fairly and efficiently fund innovation by auctioning company shares to a large population of private investors. This is Innovestment’s unique and powerful form of Crowd Investing. Quickly the two initiators joined forces with another RWTH start-up coach and an IT entrepreneur. Within a few months the site had been built, the investing model programmed, the contracts had been created, and companies, as well as private investors had registered. Innovestment launched and was successfully enabling the funding of top-quality, highly innovative start-up companies by the end of 2011.

6. Success Stories Particular GmbH Particular GmbH is worldwide the first company to produce colloid solutions (nanoparticles suspended in solution) using a purely laser technology (laser ablation in solution).The starting price for the auction was 1,000 € for 0.125%. Within 6 days Particular obtained the self-imposed minimum capital limit of 75,000 €. After another 8 days the price per share rose to 1,250 € and the target capital of 100,000 € was reached. Demonstrating the power of Innovestment’s auction model, the price per share continue to rise over the duration of the auction as investors over-bid each other. Once the maximum target capital is reached and the price of the shares increases with bidding, a company is thus required to sell less shares. Instead of 10% for 100,000 €, Particular was required to only sell 7.125% of the silent shares, while still maintaining 100% control of the company. Not only was the company’s market value determined, but it was also increased by +75% through the market-driven interaction of the investors. • Current Numbers • Raised capital for innovative ideas: ~400,000 € • Successful auctions: 5 of 5 (#6 is already online and launching soon) • Bids from private investors: 812 • Upcoming Successes!? • The 500’000 to 1 Million Euro funding of a high-tech start-up • A further financial partnership • A successful funding round of Innovestment over it’s own platform www.innovestment.de