Netcapital Inc. · NASDAQ:NCPL
Netcapital — Merger or Acquisition (September 2020)
26 slides from Netcapital's merger presentation, Sep 30, 2020
Slide 1: A Powerful Fintech Leader in Private Capital Markets
A Powerful Fintech Leader in Private Capital Markets Investor Update September 30, 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 ValueSetters’ management and are subject to significant risks and uncertai
Slide 3: First Quarter Fiscal 2021
) ValueSetters First Quarter Fiscal 2021
Slide 4: Management Delivers Strong Year-Over-Year Results
Management Delivers Strong Year-Over-Year Results Period ending July 31,2020 YoY: 1,384% Revenues of $1,762,322 vs. $118,732 in FY1 2020, an increase of 1,384% 1,044% Gross profit of $1,331,303 vs. $116,366, an increase of 1,044% 80% Operating income of $52,495 vs. $29,208, an increase of 80% 349% In
Slide 5: Revenue Growth
Revenue Growth Revenue grew 1,384% year-over-year $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $1,762,322 $800,000 $600,000 $400,000 $200,000 $118,732 $91,918 $0 07/31/2018 07/31/2019 07/31/2020 5
Slide 6: Operating Income Growth
Operating Income Growth Operating income grew 80% year-over-year. $60,000 $50,000 $52,495 $40,000 $30,000 $20,000 $29,208 $10,000 $(4,880) $- $(10,000) 07/31/2018 07/31/2019 07/31/2020 6
Slide 7: Portfolio Investment Value Growth
Portfolio Investment Value Growth Investment values grew 349% year-over-year. $3,500,000 $3,000,000 $2,250,000 $3,161,028 $2,000,000 $1,500,000 $1,000,000 $500,000 $704,249 $23,000 $- 07/31/2018 07/31/2019 07/31/2020 7
Slide 8: We Invest in Companies We Believe In
We Invest in Companies We Believe In Portfolio Company - New Additions: Additional investment 8
Slide 9: Merger Creates a Powerful Fintech Leader
Merger Creates a Powerful Fintech Leader Benefits to: ● 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
Slide 10: Merger Creates a Powerful Fintech Leader
Merger Creates a Powerful Fintech Leader Benefits to: ● Provides access to ValueSetters’ proven digital marketing expertise and strategic advisory services ● Allows Netcapital to capitalize on ValueSetters’ deep network of potential investors ● Enables sourcing of promising deals, including disruptiv
Slide 11: 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
Slide 12: Netcapital: A Leader and Innovator in Private Capital Markets
Netcapital: A Leader and Innovator in Private Capital Markets ● Built one of the first online private fundraising platforms. ● Differentiated platform provides both a primary market and secondary transfer platform. ● Enables entrepreneurs and investors to work together to create value. ● Democratizin
Slide 13: 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 institut
Slide 14: 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
Slide 15: Significant Opportunity for Online Private Markets
Significant Opportunity for Online Private Markets “ ● Private capital markets are growing at twice the rate of public markets. (Forbes) "Private capital markets...have ● U.S. private deal placements were more than leapfrogged public markets to become $800 billion in 2019 (Pitchbook) the most popular
Slide 16: 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. Proposed Changes to Reg CF: • Raise limit to $5 M from $1.07 M • Remove limits for accredited investors • Non-accredited in
Slide 17: Netcapital Competitive Advantages
Netcapital Competitive Advantages Early mover advantage: ● Trusted and well recognized brand and technology platform ● Strong existing investor base that is growing rapidly Integrated secondary transfer platform provides easy transferability of marketable securities 17
Slide 18: Netcapital: Strong, Scalable Business Model
Netcapital: Strong, Scalable Business Model 75% success Dollars invested Volume traded New investors up rate of offerings have doubled through Secondary more than tenfold raised on the over the last six Transfer Platform over past year platform months has quadrupled over past six months 18
Slide 19: About ValueSetters
About ValueSetters ValueSetters is a Boutique Advisory Firm We work with companies at all stages to provide assistance with: Raising Strategic Digital Capital Advice Marketing Technology Economic Consulting Development 19
Slide 20: 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: 20
Slide 21: ValueSetters Value Proposition
ValueSetters Value Proposition 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 ● Polit
Slide 22: 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 22
Slide 23: Team
Team Existing Management Team Remains in Place Cecilia Lenk Coreen Kraysler, CFA Kathy Kraysler Jason Frishman CEO ValueSetters, Inc. CFO ValueSetters, Inc. CMO ValueSetters, Inc. CEO Netcapital Systems, LLC ● Ph.D., Harvard ● S.M., MIT Sloan ● M.B.A., Yale ● B.S., Summa Cum Laude, ● Angel Investor,
Slide 24: Transaction Details
Transaction Details 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 millio
Slide 25: Investment Case Summary
Investment Case Summary Powerful Fintech Leader in Private Capital Markets ● Creates a powerful and differentiated fintech leader that is well ● Team: Experienced institutional investors, positioned for growth within private capital markets. angel investors and entrepreneurs ● Combines ValueSetters’
Slide 26: Thank You
Coreen Kraysler, CFA ckraysler@valuesetters.com 781-925-1700 Thank You ValueSetters www.valuesetters.com