Netcapital Inc. · NASDAQ:NCPL
Netcapital — Investor Presentation (September 2021)
25 slides from Netcapital's investor presentation, Sep 7, 2021
Slide 1: Netcapital Inc.: A Digital Private Capital Markets Ecosystem
Netcapital Inc. A Digital Private Capit Markets Ecosystem Democratizing Private Markets | Empowering Entrepreneurs to Succeed Investor Update August 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 unce
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*** | : Wi EFUNDER 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: Team
Team Management Team Comprised of Experienced Institutional Investors, Angel investors and Entrepreneurs
Slide 8: Significant Milestones Achieved
Significant Milestones Achieved Netcapital achieved significant milestones this year: OTC Markets Netcapital Upgraded to OTCQX Closed purchase of Netcapital Funding Portal Inc. aS Rialto Established ATS partnership with Rialto Markets Netcapital Inc.
Slide 9: Management Delivers Strong Year-Over-Year Results
Management Delivers Strong Year-Over-Year Results Fiscal year ending April 30, 2021 169% afle Generated revenues of $4.7 million, an increase of 169% $2.5M aig Grew cash balances to $2.5 million $0.89 Reported fully diluted EPS of 89 cents per share 348% afr Increased equity securities at fair value
Slide 10: Netcapital Posts Strong Revenue Growth
Netcapital Posts Strong Revenue Growth Revenues grew 169% year-over-year for the year ended 4/30/2021. Revenues $5,000,000 $4,000,000 $4,721,003 $3,000,000 $2,000,000 $1,000,000 $1,753,558 $1,013,612 $0 FY 2019 FY 2020 FY 2021 Netcapital Inc.
Slide 11: Netcapital Posts Strong Net Income Growth
Netcapital Posts Strong Net Income Growth Net income grew 143% year-over-year for the year ended 4/30/2021. Net Income $1,500,000 $1,469,660 $1,000,000 $500,000 $604,851 $582 .880 $0 Netcapital Inc. FY 2019 FY 2020 FY 2021
Slide 12: Netcapital Posts Strong Equity Portfolio Growth
Netcapital Posts Strong Equity Portfolio Growth Equity securities at fair value grew by 348% year-over-year. $8,000,000 $6,000,000 $6,298 008 $4,000,000 $2,000,000 $1,406,982 $647,317 so ‘ FY 2019 FY 2020 FY 2021 Netcapital Inc.
Slide 13: Funding Portal Generated Strong Momentum
Funding Portal Generated Strong Momentum Dollars invested through the platform increased sixfold vs. prior fiscal year. $20,000,000 $15,000,000 $10,000,000 $5,000,000 so Dollars Invested Through the Platform $2,843,467 $17,258,804 Netcapital Inc.
Slide 14: Netcapital Funding Portal Triples Market Share
Netcapital Funding Portal Triples Market Share Netcapital funding portal market share has more than tripled since first quarter of FY 2021. 10.0% 5.0% Netcapital Funding Portal Market Share 1Q FY 2021 20, FY 2021 3, FY 2021 4Q, FY 2021 1Q FY 2022 July 2021 Netcapital Inc.
Slide 15: Platform Momentum Accelerating in 1Q2022
Platform Momentum Accelerating in 1Q2022 Netcapital funding portal showing strong momentum in first quarter of fiscal 2022. 38% chs June dollars invested up 38% vs. fourth quarter monthly average S1M Dollars invested increased by almost $1 million vs. fourth quarter average 300,000 More than 300,000
Slide 16: 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: $5M 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 17: 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 $324,931,112 $200,000,000 $100,000,000 $111,368,657 $69,504,389 $0 Source: KingsCrowd 2019 2020 2021 Fiscal Year ; Netcapital Inc.
Slide 18: Portfolio Companies Generating Strong Momentum: Deuce Drone
Portfolio Companies Generating Strong Momentum: Deuce Drone Drone delivery technology: transforming last mile delivery for retailers DEUCE) ‘DRONE e Secured exclusive contract for food delivery at BB&T Centre in Mobile, AL e Successfully completed first food delivery run: Operation Smoothie e Built
Slide 19: Portfolio Companies Generating Strong Momentum: Must Watch
Portfolio Companies Generating Strong Momentum: Must Watch Technology: connecting people through television MUST WATCH e Launched show recommendation app in the App store e Awarded 5 star rating by users e Added acclaimed Hollywood producer and screenwriter, Jason Keller, to team Netcapital Inc.
Slide 20: Portfolio Companies Generating Strong Momentum: Zelgor
Portfolio Companies Generating Strong Momentum: Zelgor Mobile games: building an intergalactic entertainment empire Zelgor Games e Completed Stability Test Launch of company’s first mobile game, Noobs in Space e Generated thousands of downloads within first 48 hours e Sold out Netcapital offering Ne
Slide 21: Portfolio Companies Generating Strong Momentum: ChipBrain
Portfolio Companies Generating Strong Momentum: ChipBrain Al: Emotionally intelligent Al for sales professionals @@ cHIPBRAIN Built core machine learning models Performing pilot tests with multiple customers Sold out two rounds of financing on the Netcapital platform Closed venture round at $20 mill
Slide 22: Portfolio Companies Generating Strong Momentum: KingsCrowd
Portfolio Companies Generating Strong Momentum: KingsCrowd Fintech: ratings and analytics for online private markets 4 KINGSCROWD Grew subscriber base to 350,000 Generated almost half a million dollars in revenue last year Rated over $500 million in transactions with proprietary rating algorithm Lau
Slide 23: Portfolio Companies Generating Strong Momentum: C-Reveal Therapeutics
Portfolio Companies Generating Strong Momentum: C-Reveal Therapeutics Immunotherapy: enabling the body’s immune system to recognize and destroy cancer cells C-Reveal THERAPEUTICS Proprietary technology developed at MGH and Harvard University Raised over $1 million on Netcapital platform Closed $3 mi
Slide 24: Investment Case Summary
Investment Case Summary e Netcapital Inc. is a digital private capital markets ecosystem . e Significant secular opportunity to disrupt traditional funding sources Netcapital Inc. e Well positioned for growth with a differentiated value proposition: © Combines Netcapital’s scalable technology platfo
Slide 25: Thank You
Thank You Coreen Kraysler, CFA eoreeniaysien@neteantal.conn 781-925-1700 Netcapital Inc. Altps;//netcapiialine:com) 0000