Netcapital Inc. · NASDAQ:NCPL

Netcapital — ValueSetters — Merger or Acquisition (August 2020)

21 slides from Netcapital's merger presentation, Aug 26, 2020

  1. Slide 1: Formalizing A Successful Partnership

    Q ValueSetters Netcapital Formalizing A Successful Partnership A Powerful Fintech Leader in Private Capital Markets

  2. 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 uncerta

  3. Slide 3: ValueSetters: benefits of leveraging Netcapital platform

    4 ValueSetters v) Leverages Netcapital’s established, rapidly growing technology platform to scale ValueSetters’ services, particularly its digital marketing capabilities Provides substantial increase to VSTR’s "potential revenue streams » Streamlines experience for clients raising capital online @

  4. Slide 4: Access to ValueSetters' digital marketing expertise

    YA Provides access to ValueSetters’ proven "digital marketing expertise and strategic advisory services q ) Allows Netcapital to capitalize on ValueSetters deep network of potential investors Enables sourcing of promising deals, including disruptive technology companies @ Delivers enhanced value pro

  5. Slide 5: History of Successful Collaboration & Compatibility

    History of Successful Collaboration & Compatibility Strong track record: Collaborative efforts have resulted in Netcapital’s most successful fundraising campaigns. Shared aspirations, cultures, values: * Commitment to empowering innovators, entrepreneurs and business leaders to successfully build an

  6. Slide 6: Netcapital: A Leader and Innovator in Private Capital Markets

    Netcapital: A Leader and Innovator in Private Capital Markets ivy) Built one of the first online private <_ fundraising platforms. Differentiated platform provides both a primary and secondary market. Enables entrepreneurs and investors to work together to create value. iv) Democratizing private cap

  7. Slide 7: Prior Model - Flawed & Antiquated

    Prior Model - Flawed & Antiquated Obstacles for Investors & Issuers Investors: Lack of Access & Liquidity * Only 3% of U.S. households qualify as accredited investors * Private investments locked up until IPO or takeout Issuer: Difficulties Raising Capital * Average entrepreneur meets with 40 instit

  8. Slide 8: Netcapital: An Innovative Model - Democratizes Fundraising

    Netcapital: An Innovative Model - Democratizes Fundraising Provides Solutions & Creates Opportunities Allows investors to buy and sell shares in private companies through FINRA registered funding portal + Individuals gain access to private company investments previously only available to Venture Cap

  9. Slide 9: Market Opportunity: Significant and Growing

    Market Opportunity: Significant and Growing Democratization of private capital markets and online fundraising is in its infancy. if 5 2019 Market Overview Rule 506(b) of Regulation D $1,492 billion Rule 506(c) of Regulation D $66 billion Regulation A: Tier 1 $0.044 billion Regulation A: Tier 2 $0.99

  10. Slide 10: SEC Regulatory Changes Benefit Private Markets

    SEC Regulatory Changes Benefit Private Markets In March 2020, The Securities and Exchange Commission (SEC) proposed meaningful changes to multiple private securities exemptions. Offering Limits were increased Regulation Crowdfunding: * Raised to $5 M from $1.07 M * Accredited investors: limits remov

  11. Slide 11: SEC Regulatory Changes Continued

    SEC Regulatory Changes Continued Offering Limits were increased: Regulation A Regulation D, Rule 504 Marketing and Other * Tier 2 raised to Raised to $10M from $5M Additional positive 875M from $50M revisions to marketing + Secondary sales (‘Test-the-Waters”, “Demo raised to $22.5M Day”), special pu

  12. Slide 12: Netcapital Competitive Advantages

    Netcapital Competitive Advantages @ Early mover advantage: * Trusted and well recognized brand and platform * Strong existing investor base that is growing rapidly Integrated secondary platform provides easy transferability of marketable securities = al 12 g ValueSetters

  13. Slide 13: Netcapital: Strong, Scalable Business Model

    Netcapital: Strong, Scalable Business Model 75% SUCCESS rate of offerings raised on the platform Q Dollars invested have doubled over the last six months ap -@ Volume traded through Secondary Transfer Platform has quadrupled over past six months New investors up more than tenfold over past year 13 g

  14. Slide 14: About ValueSetters

    About ValueSetters ValueSetters is a Boutique Advisory Firm We work with companies at all stages to provide assistance with: & Raising Capital Technology Consulting Ly ra Strategic Digital Advice Marketing Economic Development 14 g ValueSetters

  15. Slide 15: Business Model

    Business Model Fee-Based Revenue Model Plus Equity Stakes iv) Charge fixed fees for services provided iv) Take equity stakes in select technology start-ups, including: DRONE Games AKINescRowD = DEUCE) o Zelgor Eq Holler 15 g ValueSetters

  16. Slide 16: Value Proposition: Experience and Results Attract Clients

    ValueSetters Value Proposition Experience and Results Attract Clients iv) Professional investor experience provides unique capabilities * Effective message crafting to all types of investors + Deep network of potential shareholders Experience in starting/selling/growing successful businesses Politic

  17. Slide 17: Track Record

    Track Record ValueSetters Delivers Results for Clients Established strong track record in marketing private, online capital offerings Proven unique capabilities in targeted digital marketing to potential investors Successfully completed multiple multi- million-dollar equity raises ZBBRAIDY Braidy In

  18. Slide 18: Team

    Team Existing Management Team Remains in Place Cecilia Lenk CEO ValueSetters, Inc. * Ph.D., Harvard « Angel Investor, Launchpad Venture Group Coreen Kraysler, CFA CFO ValueSetters, Inc. + S.M., MIT Sloan « Former Morningstar 5-star Rated Portfolio Manager Kathy Kraysler CMO ValueSetters, Inc. °M.B.A

  19. Slide 19: Reverse Stock Split

    Reverse Stock Split Pursuant to the agreement, prior to the closing date: ValueSetters shall complete a reverse stock split at 2000 for 1 Once effective, ValueSetters common shares issued and outstanding will be reduced to approximately 415,000 from approximately 831.3 million Further information re

  20. Slide 20: 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 ValueSetters’ unique and proven capabilities and Netcapital’s scalable technology platform Syn

  21. Slide 21: ValueSetters contact

    gy ValueSetters Coreen Kraysler, CFA ckraysler@valuesetters.com 781-925-1700 YHHOO

ValueSetters — Merger or Acquisition (August 2020) on 6ix