Netcapital Inc. · NASDAQ:NCPL
Netcapital — H1 FY2021 Earnings Presentation
27 slides from Netcapital's earnings presentation, Dec 17, 2020
Slide 1: A Powerful Investor Update
Netcapital Inc. A Powerful Investor Update December 18, 2020
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 unc
Slide 3: Netcapital Inc. First Half Fiscal 2021
Netcapital Inc. First Half Fiscal 2021
Slide 4: Management Delivers Strong Year-Over-Year Results
Management Delivers Strong Year-Over-Year Results Six months ending October 31, 2020: 198% tT Revenues of $2,493,486 vs. $835,725, an increase of 198% 114% tT Gross profit of $1,779,262 vs. $830,877, an increase of 114 % 186% tT Portfolio Investments at cost of $3,721,514 vs. $1,301,181 an increase
Slide 5: Revenue Growth
Revenue Growth Revenues grew 198% year-over-year $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 $160,640 6 months ended 10/31/2018 $835,725 6 months ended 10/31/2019 $2,493,486 6 months ended 10/31/2020 Netcapital Inc.
Slide 6: Investment Portfolio Growth
Investment Portfolio Growth Investment portfolio grew 186% year-over-year $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $o $23,000 10/31/2018 $1,301,181 10/31/2019 $2,721,514 10/31/2020 Netcapital Inc.
Slide 7: Stockholders’ Equity
Stockholders’ Equity Stockholders’ Equity increased 19% year-over-year $1,000,000 $500,000 760,012 638,699 0 (500,000) (1,486,950) (1,000,000) (1,500,000) 2,000,000 ( ) 10/31/2018 10/31/2019 10/31/2020 Netcapital Inc.
Slide 8: Netcapital Inc. Achieves Significant Milestones
Netcapital Inc. Achieves Significant Milestones Transformational First Half Of Fiscal 2021 e Merger agreement with Netcapital creates a powerful fintech leader with a proven and scalable technology platform e New name and rebranding initiatives to better reflect the company’s differentiated position
Slide 9: Pro Forma Highlights: Net Income
Netcapital Inc. Pro Forma Highlights: Net Income On a pro forma basis, the Netcapital merger would have contributed more than $200,000 to net income during the first half of fiscal 2021. $300,000 $250,000 $282,264 $200,000 $150,000 $100,000 $50,000 $0 Reported Pro Forma NCPL Combined Netcapital Inc.
Slide 10: Robust Business Trends, Strong Tailwinds
Netcapital Inc:.: Robust Business Trends, Strong Tailwinds KINGSCROWD [pene Covid 19 Economy KingsCrowd Industry Data Accelerating digital transformation, amplifying demand for digital fundraising and strategic advice e 87% YTD © 132% in fiscal first half Net investment commitments up: SEC Approves
Slide 11: Proven Technology Platform, Scalable Business Model
Netcapital: Proven Technology Platform, Scalable Business Model Strong Growth in First Half User Metrics Year-over-year growth for the six months ended October 31, 2020: +578% in New Users +291% in Dollars Invested +333% in Traffic Netcapital Inc.
Slide 12: Accelerating Growth in the Month of November
Netcapital: Proven Technology Platform, Scalable Business Model Accelerating Growth in the Month of November Year-over-year growth as of November 30, 2020: +3,433% in New Users +2,794% in Dollars Invested +809% in Traffic Netcapital Inc.
Slide 13: Growing more than twice as fast as the industry
Netcapital Growing more than twice as fast as the industry Growth in Dollars Invested Fiscal First Half 350% 300% 250% 200% 150% 100% 50% 0% Industry* Netcapital *Source: KingsCrowd Netcapital Inc.
Slide 14: Issuer Sells Out Offering Within Hours
Netcapital Issuer Sells Out Offering Within Hours Digital Capital Raise for MAGFAST® Draws Thousands of New Users to Netcapital.com e Underscores scalability of technology and platform e Demonstrates strength of Netcapital brand and value proposition e Provides exemplary use case for future issuers
Slide 15: Empowering Entrepreneurs to Succeed
Netcapital Advisors: Empowering Entrepreneurs to Succeed Delivering for Clients - Meaningfully Impacting Growth and Success al CHIPBRAIN Transformed MIT, Harvard Research to rapidly growing Al Company e Launched pilot w/several customers across industries e Expect to launch full-scale subscription p
Slide 16: About Netcapital Inc.
About Netcapital Inc. Management Team Comprised of Experienced Institutional Investors, Angel investors and Entrepreneurs
Slide 17: Investment Case Summary
Investment Case Summary Powerful Fintech Leader in Private Capital Markets Creates a powerful and differentiated fintech leader that is well positioned for growth within private capital markets. Combines Netcapital Advisors’ unique and proven capabilities and Netcapital’s scalable technology platfor
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Slide 19: About Netcapital
About Netcapital A Leader and Innovator in Private Capital Markets e Built one of the first online private fundraising platforms e Differentiated platform provides both a primary and secondary market: o Every security created has the ability to trade ona secondary transfer platform provided by Netca
Slide 20: Prior Model - Flawed & Antiquated
Prior Model - Flawed & Antiquated Obstacles for Investors & Issuers Investors: Lack of Access & Liquidity e Only 3% of U.S. households qualify as accredited investors e Private investments locked up until IPO or takeout Issuers: Difficulties Raising Capital e Average entrepreneur meets with 40 insti
Slide 21: An Innovative Model - Democratizes Fundraising
Netcapital: An Innovative Model - Democratizes Fundraising Provides Solutions & Creates Opportunities e Allows investors to buy and sell shares in private companies through SEC registered funding portal o Individuals gain access to private company investments previously only available to venture cap
Slide 22: Market Opportunity: Significant and Growing
Market Opportunity: Significant and Growing Democratization of private capital markets and online fundraising is in its infancy. 2019 Market Overview SEC Regulatory enhancements significantly increase market opportunity for online Exemption Amounts Reported or private capital markets. Estimated as R
Slide 23: Advisors
Netcapital Advisors
Slide 24: About Netcapital Advisors
About Netcapital Advisors Netcapital Advisors is a Boutique Advisory Firm We work with companies at all stages to provide assistance with: e Raising capital Strategic advice Digital Marketing Technology consulting Economic Development Netcapital Inc.
Slide 25: Advisors Business Model
Netcapital Advisors Business Model Fee-Based Revenue Model Plus Equity Stakes e Charge fixed fees for services provided e Take equity stakes in select technology start-ups, including: DRONE Games AKINGscROWD | DEUCE(2) o Zelgor MUST eee Holler @@ cHIPBRAIN Netcapital Inc.
Slide 26: Advisors Value Proposition
Netcapital Advisors Value Proposition Experience and Results Attract Clients e Professional investor experience provides unique capabilities o Effective message crafting to all types of investors o Deep network of potential shareholders e Experience in starting/selling/growing successful businesses
Slide 27: Thank You
Thank You Coreen Kraysler, CFA goreen kraysler@netcapitalicom 781-925-1700 hilps:/metcapitalinecom 0000