Netcapital Inc. · NASDAQ:NCPL
Netcapital — ValueSetters — Investor Presentation (August 2020)
23 slides from Netcapital's investor presentation, Aug 12, 2020
Slide 1: ValueSetters: Grow. Thrive.
ValueSetters / | SGrow.Thrive: . st 12, 2020 > NG ne
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
Slide 3: Team Additions
Team Additions * Master of Science in Investment Management, Boston University * Bachelor of Arts in Economics, Simmons College * Chartered Alternative Investment Analyst charterholder, CAIA association member * Over twenty years of investment management industry experience: Callie Gauzer o Columbia
Slide 4: Team Additions
Team Additions * Bachelor of Arts in Economics and Psychology, Boston College * Master of Business Administration in Finance, Cornell University + More than two decades of experience in financial services, raising capital for early stage growth companies in technology and life sciences: Jim Finnerty
Slide 5: Team Additions: Marketing
Team Additions: Marketing Expanded Our Marketing Capabilities pS a Google fo, Pe Certified Social Media Certified Content Certified Google Ads Recent Harvard Marketing Associate Marketing Associate Specialist University and Manages our social Creates marketing Broadens our Wellesley College media ac
Slide 6: Digital Marketing: Increased Social Media Presence
Digital Marketing: Increased Social Media Presence Generating engagement and results for Clients and VSTR Year-over-year Social Growth by Channel (number of followers): 3% @€ 22% W iim Launched: 34% Instagram (May 2020): Average 34% week-over-week growth since inception YouTube video campaign (June
Slide 7: 7 g ValueSetters
7 g ValueSetters
Slide 8: Portfolio Company Success
Portfolio Company Success 2. 2. 8 g ValueSetters
Slide 9: Portfolio Company Success
Portfolio Company Success SF Watch |i Party & a a 9 g ValueSetters
Slide 10: Portfolio Company Success
Portfolio Company Success é + Aleading ratings/analytics provider 4 KINGSCROWD for online private market deals * Maxed out $1 million raise on Netcapital platform AKINGSCROWD ¢ Announced acquisition of newchip aggregator platform * Increased investor community by tenfold, to 100,000+ « Ambitions to
Slide 11: 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
Slide 12: SEC Regulatory Changes Continued
SEC Regulatory Changes Continued Regulation A Regulation D, Rule 504 Marketing and Other + Tier 2 raised to Raised to $10M from $5M Additional positive $75M from $50M revisions to marketing * Secondary sales (‘Test-the-Waters”, “Demo raised to $22.5M Day’), special purpose from $15M vehicles and int
Slide 13: SEC Regulatory Changes Benefit Private Markets
SEC Regulatory Changes Benefit Private Markets Positive Impact on ValueSetters and Portfolio Companies @ Private exempt offerings are now more D E CE attractive to entrepreneurs and investors U DRONE KINGSCROWD Enhances the value of funding portals, [mre strengthens the online capital raising proces
Slide 14: Management Aligned with Shareholders
Management Aligned with Shareholders Management owns/controls 43% of shares outstanding through direct and beneficial ownership CEO controls 38% of shares out through direct and beneficial interest iv) CFO owns 5% of shares out CEO 38% Management 43% 14 | g ValueSetters
Slide 15: Management Delivers Strong Annual Results
Management Delivers Strong Annual Results 73% Revenues of $1,753,558 vs. $1,013,612 in fiscal 2019, a year over year increase of 73% 76% Gross profit of $1,742,453 vs. $988,414 in fiscal 2019, an increase of 76% 84% Operating income of $1,147,222 vs. fiscal 2019 income of $624,433, an increase of 84
Slide 16: Operating Income Growth
Operating Income Growth Operating income grew 84% in fiscal 2020. Va $1,400,000 $1,200,000 $1,000,000 $800,00 $600,000 $400,000 $200,000 S- $(200,000) $(400,000) Operating Income (Fiscal Year) 16 g ValueSetters
Slide 17: Portfolio Investment Value Growth
Portfolio Investment Value Growth Investment values grew 117% during fiscal 2020. r $1,600,000 $1,400,000 $1,200,000 $800,00 $600,000 $400,000 ~ $200,000 S Value of Investments B 4/30/2019 I 4/30/2019 17 | @ ValueSetters
Slide 18: Who We Are
Who We Are ValueSetters is a Boutique Advisory Firm We work with companies at all stages to provide assistance with: & % @ Raising Strategic Digital Capital Advice Marketing lor Zl 00). Tamil —@\) Technology Economic Consulting Development 18 g ValueSetters
Slide 19: 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: AKINGSCROWD. = DEUCE) @ Zelgor DRONE es | Holler 19 g ValueSetters
Slide 20: Client Drivers
Client Drivers Experience and Results Attract Clients @ 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 Political and economic de
Slide 21: Track Record
Track Record ValueSetters Delivers Results for Clients iv) Established strong track record in marketing private, online capital offerings iv] Proven unique capabilities in targeted digital marketing to potential investors iv) Successfully completed multiple multi- million-dollar equity raises ZBBRAI
Slide 22: ValueSetters is Well Positioned for Growth
ValueSetters is Well Positioned for Growth @ Strong financial results and business momentum iv) Portfolio companies performing well and generating t investor enthusiasm Enhancing our capabilities: added Director of Investor Relations, Director of Institutional Sales, Digital Marketing expertise Esta
Slide 23: ValueSetters
CW) ValueSetters Coreen Kraysler, CFA ckraysler@valuesetters.com 781-925-1700 YHnHOO