Netcapital Inc. · NASDAQ:NCPL
Netcapital — ValueSetters — Investor Presentation (March 2019)
19 slides from Netcapital's investor presentation, Mar 25, 2019
Slide 1: Investor Update
ValueSetters @ Investor Update March 25th, 2019
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 ValueSetters’ management and are subject to significant risks and uncer
Slide 3: Who We Are
| Who We Are ValueSetters is a Boutique Advisory Firm We work with companies at all stages to provide assistance with: 1) Raising capital through private market portals 2) Strategic advice 3) Technology consulting @ valueSetters valuesetters.com
Slide 4: Ecosystem
| Ecosystem Building an Ecosystem to Disrupt the Private Capital Markets e ValueSetters - strategic advice, fundraising support e Netcapital (6% equity stake) - funding portal ¢ KingsCrowd (12% equity stake) - investment research e Livingston Securities - broker dealer relationship g ValueSetters ya
Slide 5: Opportunity
| Opportunity Private Capital Markets a $2.4 Trillion Market Opportunity “Private capital markets...have leapfrogged public markets to become the most popular way for companies to raise money in the U.S." - The Wall Street Journal $2.4T raised in private capital markets in 2017 vs $2.1T raised in pu
Slide 6: Experienced Team of Female Executives
ME tea g ValueSetters Experienced Team of Female Executives Cecilia Lenk, Ph.D. CEO Ph.D., Harvard Angel Investor, Launchpad Venture Group Coreen Kraysler, CFA CFO S.M., MIT Sloan Former Morningstar 5-star Rated Portfolio Manager Kathy Kraysler, CMO M.B.A., Yale Former Director of Audience Analytics
Slide 7: Significant Accomplishments Since Management Change
BE success Significant Accomplishments Since Management Change ¢ Helped our clients raise over $13 million e Grew revenues by over 300% for the 9 months ended 1/31/2019 e Achieved gross margin of 91% ¢ Generated positive cash flow for past 3 quarters e Produced an operating profit for 302019 e Restr
Slide 8: Select Client List
| Select Client List Attracting Quality Client Base Sample Client List: Braidy Industries ¢ Ocean Renewable Power Company Vantem Global e Phoenix PharmaLabs @ valueSetters valuesetters.con
Slide 9: Business Model
| Business Model Fee-Based Revenue Model Plus Equity Stakes ¢ Charge fixed fees for services provided ¢ Take equity stakes in select technology start-ups, including: NI ixwwescrows £37 emoo) @) Q ValueSetters valuesetters.con 9
Slide 10: ValueSetters Offers Turnkey Solution
| ValueSetters Offers Turnkey Solution VSTR Assists with all Facets of Private Capital Raise e Application e Message crafting e Offering page e Digital marketing e Investor outreach ) ValueSetters valuesetters.com
Slide 11: Netcapital's Success
| Netcapital’s Success ValueSetters Owns a 6% Equity Stake in Netcapital ¢ Over $15 million raised on the platform e 75% success rate of companies raising funds ¢ 180,000 new users last year, up 95% vs. 2017 Q ValueSetters valuesetters.com
Slide 12: What People are Saying About Netcapital
| What People are Saying About Netcapital “Netcapital appeals to me because I've had firsthand experience with the passion and support that comes from an engaged user base, and I’ve seen how that excitement translates into funding.” - Jason Robins, Co-founder and CEO of DraftKings "| think this is a
Slide 13: KingsCrowd's Success
| KingsCrowd's Success ValueSetters Owns a 12% Equity Stake in KingsCrowd e Attracted several thousand subscribers e Raised $167,000 in two online rounds of financing e Developed partnerships with key industry players: C , , B@newchip QP ROCKETDOLLAR™ \\ CT A WEALTH NOIR Q ValueSetters valuesetters.
Slide 14: What People are Saying About KingsCrowd
| What People are Saying About KingsCrowd “Receiving a recommendation has had a direct and quantifiable impact on our fundraising.” - Tom Lix, Founder and CEO, Cleveland Whiskey “In the new world of Reg CFs, there is more clutter than clarity. KingsCrowd brought that clarity to us and our potential
Slide 15: ValueSetters Pipeline Drivers
| ValueSetters Pipeline Drivers e Established track record driving referrals e Potential clients taking notice of VSTR's digital marketing and investor outreach success ¢ Reciprocal referral agreements with Netcapital in place e Existing clients providing referrals to new customers ¢ Proactive outre
Slide 16: Third Quarter Financial Review
Third Quarter Financial Review ValueSetters Operating Profit Review 9 months ended 9 months ended 3 months ended 3 months ended January 31, 2019 January 31, 2018 January 31, 2019 January 31, 2018 Revenues $ 281,995 $ 70,120 302% $ 121,355 $ 44,068 175% Costs of services 26,337 14,910 77% 13,634 14,9
Slide 17: Share Information
| Share Information No Convertible Securities Outstanding e 230,546,930 shares in float e 749,706,712 shares outstanding e 900,000,000 shares authorized e No preferred shares ¢ 18,000,000 shares reserved for exercise of stock options (exercise price $0.03) e 9,625,500 shares reserved for issuance to
Slide 18: Summary
|| Summary e Ecosystem in place to disrupt private capital markets e VSTR at the forefront of investing through SEC-regulated funding portals ¢ Helping to expand and democratize equity raising e Established track record leading to increased referrals and revenue growth ) ValueSetters valuesetters.co
Slide 19: Coreen Kraysler, CFA
Coreen Kraysler, CFA ckraysler@valuesetters.com 781-925-1700 Q ValueSetters