Netcapital Inc. · NASDAQ:NCPL
Netcapital — Investor Presentation (March 2021)
22 slides from Netcapital's investor presentation, Mar 30, 2021
Slide 1: Netcapital Inc. Investor Update
Netcapital Inc. A Digital Private Capit Markets Ecosystem > Democratizing Private Markets | Empowering Entrepreneurs to Succeed Investor Update March 31, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of Netcapital Inc’s management and are subject to significant risks and unce
Slide 3: Netcapital: Who We Are
Netcapital: Who We Are Netcapital Fintech company with scalable technology platform e Allows private companies to raise capital online Neteapital e Provides investors with access to pre-IPO Invest small in investment opportunities big opportunities. BioTech e Markets private capital raises e Incubat
Slide 4: Attractive Valuation vs. Peers
Attractive Valuation vs. Peers Netcapital Inc. sells at a significant discount to peers: 39x Revenues* 21 X Revenues* 6x Revenues** I é WeruNDER enneO Netcapital Inc. Netcapital Inc.
Slide 5: Significant Milestones Achieved
Significant Milestones Achieved Netcapital has achieved significant milestones: OTC Ww ° Markets Netcapital Began uplisting process Closed purchase of Netcapital to OTCQX Funding Portal Inc. aS Www be aad Rialto Established ATS partnership with Rialto Markets Netcapital Inc.
Slide 6: Management Delivers Strong Year-Over-Year Results
Management Delivers Strong Year-Over-Year Results Nine months ending January 31, 2021 137% sy Revenues of $3,770,813 vs. $1,593,130 in 2020, an increase of 137% 81% {fT Gross profit of $3,040,470, resulting in a gross margin of 81% 11¢ Net income of $103,535, with earnings per share of 11 cents 81%
Slide 7: Netcapital Posts Strong Revenue Growth
Netcapital Posts Strong Revenue Growth Revenues grew 137% year-over-year for the nine months ended 1/31/2021 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $o Revenues $3,770,813 $1,593,130 $281,995 9 Months Ended 9 Months Ended 9 Months Ended 1/31/2019 1/31/20
Slide 8: Investment Portfolio Continues to Grow
Investment Portfolio Continues to Grow Investments at cost grew 81% year-over-year. Portfolio Investments at Cost $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $2,058,113 $1,000,000 $500,000 so $3,726,514 $23,000 1/31/2019 1/31/2020 1/31/2021 Netcapital Inc.
Slide 9: Netcapital Posts Strong Growth in User Metrics
Netcapital Posts Strong Growth in User Metrics Year-over-year growth for the nine months ended January 31, 2021: 360% in New Users 343% in Traffic Netcapital Inc.
Slide 10: Netcapital's Growth Rate Significantly Outpaces Industry
Netcapital’s Growth Rate Significantly Outpaces Industry Growing more than twice as fast as the industry Growth in Dollars Invested 450% 400% 350% 300% 250% 200% 150% 100% 50% 0% Industry* Netcapital *Source: KingsCrowd Netcapital Inc.
Slide 11: Showing Strong Momentum to Begin Fiscal 4Q
Showing Strong Momentum to Begin Fiscal 4Q Funding portal off to a strong start to begin fiscal fourth quarter 10x q February 2021 dollars invested were 10x higher vs. Feb 2020 30% ay February 2021 dollars invested more than 30% higher than third quarter average Netcapital Inc.
Slide 12: Increase in Funding Limits Provides Tailwind
Increase in Funding Limits Provides Tailwind SEC raised funding limits for RegCF, Reg D, and Reg A on March 15th. Offering limits raised to: S5M RegCF: $5 million from $1.07 million, every twelve months $10M Regulation D, Rule 504: $10M from $5M $75M Regulation A Tier 2: $75M from $50M Netcapital In
Slide 13: SEC Rule Change Leads to Sharp Rise in Online Investments
SEC Rule Change Leads to Sharp Rise in Online Investments $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 * Through March 28, 2021 **Source: K nd $o 29 YP LY LP PP YP Y SP SDP OP PP OP DDS Fee oe *s SF SV WS — SPH MF KF og oe Netcapital Inc.
Slide 14: Netcapital Establishes ATS Partnership with Rialto Markets
Netcapital Establishes ATS Partnership with Rialto Markets Netcapital to leverage Rialto’s ATS: e Provides issuers and investors with the potential for expanded distribution and liquidity: o May result in increased demand and higher share prices e Establishes a path for future monetization e Creates
Slide 15: Netcapital Advisors: Empowering Entrepreneurs to Succeed
Netcapital Advisors: Empowering Entrepreneurs to Succeed Select New Client Highlights C-Reveal Therapeutics C-Reveal Teese eure. e Patent pending approach to exposing tumors to immune responses and therapies e Founders have a history of successful exits in the oncology and pharmaceutical industries
Slide 16: Team
Team Management Team Comprised of Experienced Institutional Investors, Angel investors and Entrepreneurs
Slide 17: Investment Case Summary
Investment Case Summary e Netcapital Inc. is a digital private capital markets ecosystem ° e Significant secular opportunity to disrupt traditional funding sources Netcapital Inc. e Well positioned for growth with a differentiated value proposition: o Combines Netcapital’s scalable technology platfo
Slide 18: Appendix
Appendix
Slide 19: Market Opportunity
Market Opportunity Significant opportunity to disrupt private capital markets with financial technology: $800B $800 billion raised in U.S. private deal placements in 2019 (Pitchbook) $66B $66 billion raised under exemptions 506(c) and 4(a)(6) in 2019 (SEC) 2x nig Private capital markets growing at t
Slide 20: Business Model
Business Model Fee income plus equity stakes Fees: e 4.9% success fee on capital raised through the platform e Consulting fees e Engagement and other fees Equity stakes provide optionality through possible exits (sale or IPO). ATS partnership creates potential path to monetization of Secondary Trans
Slide 21: Select Equity Stakes
Select Equity Stakes AKiNGscROwD «= @@cuiPBRAIN C-Reveal Online Private Capital Emotionally Cancer Markets Ratings and Intelligent Al Immunotherapy Analytics DEUCE@) | &f zie DRONE Drone Delivery Mobile Games Netcapital Inc.
Slide 22: Thank You
Thank You deneeesnencenessenevancsneseentnecsnescanessanscancsanes coreen.kraysler@netcapital.com 781-925-1700 Netcapital Inc. https://netcapitalinc.com 6000