“HELPING YOUR CLIENTS RAISE CAPITAL PAINLESSLY!” Presented by: Peter Towers, Managing Director, ESS BIZTOOLS

“Crowd Sourced Funding Equity Raising Scorecard” Success! $18.3M raised! By 22 companies These companies could have been your clients – if they are congratulations! Helping Your Clients Raise Capital Painlessly

Overview of Some Capital Raising (information from some Intermediaries’ websites) Xinja Bank – 100% Digital Bank - $2.4M Manrags – Premium socks and Underwear - $363,250 Choovie – Digital platform that matches moviegoers with empty seats - $294,500 The West Wind Gin – Australian Champion Gins - $932,000 Helping Your Clients Raise Capital Painlessly

Overview of Some Capital Raising (information from some Intermediaries’ websites) Memo Bottle – Flat water bottle designed to fit into your bag - $383,238 Bausele – Timekeeper luxury brands with Australian inspired crowns - $294,928 Plikan – Global currency App and pre paid Visa card that you can use anywhere - $248,930 Helping Your Clients Raise Capital Painlessly

Overview of Some Capital Raising (information from some Intermediaries’ websites) Orderup – Investment in a gaming brand - $361,394 Park – Leading soccer brand – balls, clothing - $316,035 Sash – An Australian take on modern Japanese fusion - $184,321 Greenfields Exploration Limited – Mining incubator and project initiator - $1.2M Helping Your Clients Raise Capital Painlessly

Helping Your Clients Raise Capital Painlessly B. Current Listings Helping Your Clients Raise Capital Painlessly

Some of the Current Capital Raising (Listed on some Intermediaries’ websites) Endeavour Brewing Co – Craft beer manufacturing DHF Surf – Surfboard design Direct Injection Technologies – Technology to supplement livestock Purahealth – Health supplements Australian Boutique Spirits – Manufactures and markets Australian made spirits Helping Your Clients Raise Capital Painlessly

Some of the Current Capital Raising (Listed on some Intermediaries’ websites) Mobiltech – Travel solutions Edutech – Cloud enabled student tutoring Medical Services Group – Multi venue medical services business Industrial Tech – Patented safety device seeking capital after first sale Helping Your Clients Raise Capital Painlessly

Some of the Current Capital Raising (Listed on some Intermediaries’ websites) Internet Gaming – Established company seeking funds to expand into new networks and markets Black Hops Brewery – Craft Beer and Wine HUTT – Tomorrows house today – delivering the future of zero carbon housing Helping Your Clients Raise Capital Painlessly

Some of the Current Capital Raising (Listed on some Intermediaries’ websites) Dreamcity – An immersive theme park combining education with fun Oscar Razor - Australian premier shave club Your Mates – Craft beer and wine Picaluna – Network of professional funeral planners and celebrants Helping Your Clients Raise Capital Painlessly

This is Advisory Services! Proactive service for your clients Not a Tax Scheme! Completely legal process that enables small and medium sized businesses to finance their businesses Helping Your Clients Raise Capital Painlessly

This is Advisory Services (cont’d…)! Biggest improvement for small and medium sized business financing for the last 35 years! Helping Your Clients Raise Capital Painlessly

This is Advisory Services (cont’d…)! If you are committed to being proactively involved in advising client/prospect on Crowd Sourced Funding: Helping Your Clients Raise Capital Painlessly

This is Advisory Services (cont’d…)! In 12 months time would you be happy with: “Happy Accountancy/Advisory Firm?” New “income streams” have been created for your firm Happy Team Members?” Accountants and team members involved in “new and interesting work” Helping Your Clients Raise Capital Painlessly

This is Advisory Services (cont’d…)! “Happy Clients?” Supplying a service that will assist “some of your clients raise finance for their business” Then please join us on this journey We know that it won’t be for everyone – this is a great diversification opportunity for your firm Helping Your Clients Raise Capital Painlessly

Embrace the Fourth Option Don’t lose clients because you are not aware of the fourth option to raise business finance Helping Your Clients Raise Capital Painlessly

Embrace the Fourth Option Option 1 – Bank Security required Personal Guarantees Monthly repayments Post Royal Commission Requirements Helping Your Clients Raise Capital Painlessly

Embrace the Fourth Option Option 2 – Venture Capital Reputation of being difficult to deal with Strike tough deals Normally larger amounts of capital Your client might not be ready for this type of scrutiny Helping Your Clients Raise Capital Painlessly

Embrace the Fourth Option Option 3 – Raising Capital under s708 Limited to 20 investors per annum $2M per annum upper limit 50 shareholder limit can be a problem Helping Your Clients Raise Capital Painlessly

Embrace the Fourth Option And now Option 4 – Crowd Sourced Funding Equity Raising Small proprietary company/small public company Can raise up to $5M in 12 months Can repeat in following years No need for an auditor until $3M raised Helping Your Clients Raise Capital Painlessly

Embrace the Fourth Option Retail investor limit $10,000 per annum Ordinary shares No interest payments No security offered But, must have a good story! Helping Your Clients Raise Capital Painlessly

Great Opportunity for Accountants Companies annual turnover must be lower than $25m Most companies will be clients of small to medium-sized accountancy firms Helping Your Clients Raise Capital Painlessly

Great Opportunity for Accountants (cont’d….) Great opportunity for your firm to offer a proactive Crowd Sourced Funding Equity Raising Service Opportunity to grow with your clients! Helping Your Clients Raise Capital Painlessly

Accountants Have a Definite Role in the Crowd-Sourced Funding Journey Crowd Sourced Funding Eligibility Matrix (BAS5004) Helping Your Clients Raise Capital Painlessly

Accountants Have a Definite Role in the Crowd-Sourced Funding Journey Compliance with the Legal Requirements Group turnover under $25M Group Gross Assets under $25M No member listed on a stock exchange No member on a financial market Money raised not being used for a credit facility Helping Your Clients Raise Capital Painlessly

Accountants Have a Definite Role in the Crowd-Sourced Funding Journey B. Don’t worry about: Age of the company Type of Business/industry Helping Your Clients Raise Capital Painlessly

Accountants Have a Definite Role in the Crowd-Sourced Funding Journey C. 10 Key Characteristics: A company wanting to “scale up” Fast growing ambitious company Wanting to expand Wanting to acquire CEO with a “big audacious idea” Exciting vision Loans to be repaid Helping Your Clients Raise Capital Painlessly

Accountants Have a Definite Role in the Crowd-Sourced Funding Journey C. 10 Key Characteristics: “Bank of Mum and Dad Loans” Succession problem Does not qualify as an Early Stage Innovation Company (ESIC) Helping Your Clients Raise Capital Painlessly

Accountants Have a Definite Role in the Crowd-Sourced Funding Journey Be proactive – don’t wait for your client to contact you! Invite these clients to a seminar/webinar to brief them on Crowd Sourced Funding Equity Raising (seminar material included in ESS BIZTOOLS’ product package) Helping Your Clients Raise Capital Painlessly

Accountants Have a Definite Role in the Crowd-Sourced Funding Journey Meet with clients who are interested and submit proposal to advise on: Crowd Sourced Funding Equity Raising operations Eligibility Crowd Sourced Funding Intermediary’s role, duties, responsibilities and powers Overview of Crowd Sourced Funding Offer Document Listing on Intermediary’s website Helping Your Clients Raise Capital Painlessly

Accountants Have a Definite Role in the Crowd-Sourced Funding Journey Indicative fee for this segment of the service $1,000 - $10,000 plus GST (full package included in ESS BIZTOOLS’ Product Package) Helping Your Clients Raise Capital Painlessly

Client Wants to Proceed In conjunction with client directors and senior managers prepare a Business Plan or a summary of the company: Industry Products/services Customers Team Helping Your Clients Raise Capital Painlessly

Client Wants to Proceed (cont’d…) Directors Location Website Intellectual Property Unique competitive advantage Current financial position Helping Your Clients Raise Capital Painlessly

Client Wants to Proceeed (cont’d…) Arrange meeting/telephone call for client with a number of Intermediaries Discuss services that the Intermediary would provide Discuss fees to be charged by the Intermediary Helping Your Clients Raise Capital Painlessly

Client Wants to Proceeed (cont’d…) The legislation does not specify fees payable The agreed fee can be: Cash Shares A combination of cash/shares Helping Your Clients Raise Capital Painlessly

Client Wants to Proceeed (cont’d…) The agreed fee must be disclosed in the Crowd Sourced Funding Offer Document and on the Intermediary’s website Determine what upfront payments will be required Helping Your Clients Raise Capital Painlessly

Costs Could Include: On-boarding fees: $5,000 - $10,000 Production of a company video: $4,000 - $5,000 Design fees: $1,000 - $2,000 Fees charged by Intermediaries seem to range from 4% to 8% of capital raised Helping Your Clients Raise Capital Painlessly

Discussions with Intermediaries Discuss information that the Intermediary believes should be included within the Crowd Sourced Funding Offer Document Helping Your Clients Raise Capital Painlessly

Comments from some Intermediaries Individual Intermediaries appear to have 20,000 to 30,000 potential investors Helping Your Clients Raise Capital Painlessly

Comments from some Intermediaries (cont’d…) Some of the Intermediaries have expressed a preference for companies to have some “pre-seed funding” before proceeding with Crowd Sourced Funding Equity Raising. Pre-seed funding assists in the confirmation of a company’s value Helping Your Clients Raise Capital Painlessly

Comments from some Intermediaries (cont’d…) Some Intermediaries appear to prefer a “private launch” – for the first 30 days of the 90 day listing period in an attempt to attract investors from:  Employees Shareholders Helping Your Clients Raise Capital Painlessly

Comments from some Intermediaries (cont’d…) Customers Suppliers Family and friends of Shareholders and Senior Management The benefit of a “private launch” is that it gives the company some external investors before going to the public Helping Your Clients Raise Capital Painlessly

Crowd Sourced Funding Offer Document Your accounting firm would normally coordinate the preparation of the Crowd Sourced Funding Offer Document (template and other supporting documentation included in ESS BIZTOOLS’ Product Package) Helping Your Clients Raise Capital Painlessly

Crowd Sourced Funding Offer Document Ensure that all documents are appropriately filed – these have to be kept for at least 6 years Liaise with client and the Intermediary for the finalisation of the Crowd Sourced Funding Offer Document Helping Your Clients Raise Capital Painlessly

Crowd Sourced Funding Offer Document Submit final Crowd Sourced Funding Offer Document to the Intermediary for uploading to the Intermediary’s website Helping Your Clients Raise Capital Painlessly

Communications Intermediary must operate a communications facility for the listing period Communications could include Intermediary authorised: Videos Webinars In-house presentations Helping Your Clients Raise Capital Painlessly

Intermediaries BillfoldaFinancial Services – Sydney www.billfolda.com Equitise – Sydney and Auckland www.equitise.com Big Start Capital – Perth www.bigstart.com.au Helping Your Clients Raise Capital Painlessly

Intermediaries (cont’d…) Birchal Financial Service – Melbourne www.birchal.com On Market – Sydney www.onmarket.com.au Enable Funding – Adelaide www.enablefunding.com Helping Your Clients Raise Capital Painlessly

Intermediaries (cont’d…) Capital Labs – Sydney www.capitallabs.com.au AgCrowd – Sydney www.agcrowd.com.au Plus 5 other companies Helping Your Clients Raise Capital Painlessly

In Summary Crowd Sourced Funding is a great opportunity for some of your clients to go to the next level Crowd Sourced Funding creates “new revenue stream opportunities” for proactive accountants Helping Your Clients Raise Capital Painlessly

In Summary (cont’d…) Your accounting team members will welcome the opportunity to undertake a range of interesting and varied work Expected fee range for accounting services - $1,000 to $40,000 Helping Your Clients Raise Capital Painlessly

In Summary (cont’d…) For more information please go to www.essbiztools.com.au/crowd sourced funding/learn more Helping Your Clients Raise Capital Painlessly

In Summary (cont’d…) For the first webinar in the Crowd Sourced Funding Series – “Crowd Sourced Funding for Private Companies Presents Opportunities to Create New Income Streams” please go to https://www.youtube.com/watch?v=NcK1SvoSsz8&t=15s Helping Your Clients Raise Capital Painlessly

ESS BIZTOOLS The Crowd Sourced Funding Equity Raising Product Package has been prepared to assist accountants to proactively advise clients on the Crowd Sourced Funding Equity Raising Journey Helping Your Clients Raise Capital Painlessly

ESS BIZTOOLS Subscription 12 months 24×7 per office normally $999 including GST Special New Year 40% discount adjusted price $599 including GST Special New Year price available to close of business 15 February 2019 OR Helping Your Clients Raise Capital Painlessly

ESS BIZTOOLS You could subscribe to the ESS BIZTOOLS’ Gold Package (which includes the Crowd Sourced Funding Equity Raising Product Package) normal price $2,970 including GST. Subscription 12 months 24×7 per office Special New Year 40% discount adjusted price $1,782 including GST Special New Year price available to close of business 15 February 2019 Helping Your Clients Raise Capital Painlessly

Subscribing To subscribe please go to www.essbiztools.com.au to take advantage of the “New Year Promotion” please enter the following code: Crowd Sourced Funding Equity Raising – CSFC40 ESS BIZTOOLS’ Gold Package up front discounted package – GOLDY40 ESS BIZTOOLS’ Gold Package – monthly payments – GOLDM40   Helping Your Clients Raise Capital Painlessly

Questions? Helping Your Clients Raise Capital Painlessly

Your Action Plan Interested In: Creating “new income stream” for your accountancy business? Offering your team the opportunity to work on interesting and varied work? Offering a proactive service to your clients and prospects? Helping Your Clients Raise Capital Painlessly

Your Action Plan We hope that your are! Next Steps: Subscribe to ESS BIZTOOLS Crowd Sourced Funding Equity Package Reserve your time for your complimentary 60 minute “Mentoring Session” on the Crowd Sourced Funding Equity Package Helping Your Clients Raise Capital Painlessly

Your Action Plan Complete the Client Matrix to identify clients/prospects who might be interested in hearing about the opportunities that Crowd Sourced Funding Equity Raising presents Read the “Seminar Material” (included in the Product Package) Plan the seminar/webinar to be presented to clients/prospects identified from the CSF Client Matrix (included in the Product Package) Helping Your Clients Raise Capital Painlessly

Your Action Plan Place promotional material on your website (included in the Product Package) Edit and personalize the Media Release and send to your local media (included in the Product Package) Contact your local media to offer to answer any questions Helping Your Clients Raise Capital Painlessly

Your Action Plan Follow up clients/prospects who attended the seminar/webinar – are they interested? Prepare Proposal to clients/prospects who have indicated that they are interested in a CSF Proposal (included in the Product Package) Helping Your Clients Raise Capital Painlessly

Your Action Plan Utilise updated material that ESS BIZTOOLS sends to you” “refresh” your website material on Crowd Sourced Funding Equity Raising send newsletters to clients/prospects Send occasional media releases to your local media Helping Your Clients Raise Capital Painlessly

Thank You Thank you for participating in this webinar We will send you: An Executive Summary Link to the Webinar Recording Copy of PowerPoint slides Helping Your Clients Raise Capital Painlessly

ESS BIZTOOLS - Contact/Questions Peter Towers (07) 4724 1118 / 1800 232 088 peter@essbiztools.com.au www.essbiztools.com.au www.essbizgrants.com.au www.esssmallbusiness.com.au Helping Your Clients Raise Capital Painlessly

Happy New Year for 2019 from the team at ESS BIZTOOLS Helping Your Clients Raise Capital Painlessly