Netcapital Inc. · NASDAQ:NCPL
Netcapital — Investor Presentation (September 2021)
17 slides from Netcapital's investor presentation, Sep 16, 2021
Slide 1: Netcapital Inc. Investor Update September 2021
Netcapital Inc. A Digital Private Capit Markets Ecosystem Democratizing Private Markets | Empowering Entrepreneurs to Succeed Investor Update September 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 unc
Slide 3: Netcapital: Who We Are
Netcapital: Who We Are Fintech company with scalable technology platform e Empowers private companies to raise capital online e Provides investors with access to new investment opportunities in private companies e Markets private capital raises e Incubates and takes equity positions in select, early
Slide 4: Attractive Valuation vs. Peers
Attractive Valuation vs. Peers Netcapital Inc. sells at a significant discount to peers: 38x Revenues* 33x Revenues** 8x Revenues*** | : WeruNDER eno Netcapital Inc. Netcapital Inc.
Slide 5: Market Opportunity
Market Opportunity Significant opportunity to disrupt private capital markets with financial technology: $149B $149 billion raised through U.S. venture funding in 2020 (CB Insights) $70B $70 billion raised through U.S. venture funding in June quarter 2021 (CB Insights) 2x ig Private capital markets
Slide 6: 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 7: Select Equity Stakes
Select Equity Stakes i a Zelgor AxincscrowD «= @ cHIPBRAIN (GReveal = DEUCE(2) on Online Private Emotionally Cancer Drone Delivery Mobile Games Capital Markets Intelligent Al Immunotherapy Ratings and Analytics Netcapital Inc.
Slide 8: Team
Team Management Team Comprised of Experienced Institutional Investors, Angel investors and Entrepreneurs
Slide 9: Management Delivers Strong First Quarter Results
Management Delivers Strong First Quarter Results Quarter ending July 31, 2021 4,621% $9.26 $0.65 204% Generated net income of $1.5 million, an increase of 4,621% Grew book value per share to $9.26 Reported fully diluted EPS of 65 cents per share Increased equity securities at fair value by 204% to $
Slide 10: Netcapital Posts Strong Net Income Growth
Netcapital Posts Strong Net Income Growth Net income grew 4,621% year-over-year for the quarter ended 7/31/2021. $1,500,000 $1,000,000 $500,000 so Net Income $30,871 1Q FY 2021 $1,457,410 1Q FY 2022 Netcapital Inc.
Slide 11: Netcapital Posts Strong Equity Portfolio Growth
Netcapital Posts Strong Equity Portfolio Growth Equity securities at fair value grew by 204% year-over-year. $10,000,000 $7,500,000 $9,623,753 $5,000,000 $2,500,000 $3,161,028 $o ‘ 1Q FY 2021 1Q FY 2022 Netcapital Inc.
Slide 12: Funding Portal Generating Strong Momentum
Funding Portal Generating Strong Momentum Dollars invested through the platform increased by 500% vs. prior year 1Q. Dollars Invested Through the Platform $8,000,000 $6,000,000 $7,127,257 $4,000,000 $2,000,000 $1,186,970 $0 1Q FY 2021 1Q FY 2022 Netcapital Inc.
Slide 13: Netcapital Posts Strong Growth in User Metrics
Netcapital Posts Strong Growth in User Metrics Year-over-year growth for quarter ended July 31, 2021: +454% in New Users +500% in Dollars Invested +445% in Traffic Netcapital Inc.
Slide 14: 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 15, 2021. 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 Netcapita
Slide 15: SEC Rule Change Helps Drive Sharp Rise in Online Investments
SEC Rule Change Helps Drive Sharp Rise in Online Investments RegCF Industry Funding Commitments $400,000,000 $300,000,000 $200,000,000 $100,000,000 $111,368,657 $69,504,389 SO 2019 2020 Fiscal Year $324,931,112 2021 Source: KingsCrowd Netcapital Inc.
Slide 16: Investment Case Summary
Investment Case Summary e Netcapital Inc. is a digital private capital markets ecosystem e e Significant secular opportunity to disrupt traditional funding Netcapital Inc. sources e Well positioned for growth with a differentiated value proposition: ' o Combines Netcapital’s scalable technology plat
Slide 17: Thank You
Thank You Coreen Kraysler, CFA eoreen krayslen@ncicapialicom 781-925-1700 hitps://neteapitalinezcom 0000