Netcapital Inc. · NASDAQ:NCPL
Netcapital — Investor Presentation (May 2023)
23 slides from Netcapital's investor presentation, May 25, 2023
Slide 1: Netcapital Inc.: A Digital Private Capital Markets Ecosystem
Netcapital Inc. A Digital Private Capital Markets Ecosystem Democratizing Private Markets | Empowering Entrepreneurs to Succeed
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: Who We Are
Who We Are Netcapital is a fintech company with a scalable technology platform. e Democratizing access to capital and investments e More than 100,000 users Netcapital Inc. Empowers private companies to raise capital online Provides both accredited and non-accredited investors with access to new inve
Slide 4: Why Now
Why Now Title Ill of the JOBS Act enabled early-stage companies to offer and sell securities to the general public for the first time. The SEC followed with Reg CF, changing the landscape for private capital raising and investment: e Allows general public to invest in private companies e Enables pri
Slide 5: Market Opportunity
Market Opportunity Significant opportunity to disrupt private capital markets with Netcapital’s digital private markets ecosystem
Slide 6: Traditional Funding Model Restricts Access to Capital, Investments, and Liquidity
Traditional Funding Model Restricts Access to Capital, Investments, and Liquidity Ent VCs invest in fewer than 1% of Only 3% of venture dollars Founders need connections to ntrepreneurs the companies they consider. went to women and minorities even geta meeting. have difficulty in 2022. Only 10% of
Slide 7: Disrupting Private Capital Markets
Disrupting Private Capital Markets Netcapital is fundamentally altering traditional private capital markets by: Giving any investor - not just Low investment minimums and steady deal the connected ones - access flow empower the average person to own to early-stage investments. shares in private comp
Slide 8: Industry Tailwinds
accelerating push to bring processes online With limited ability to raise capital in person, entrepreneurs shifting to online fundraising Industry Tailwinds Two major industry tailwinds driving growth in digital capital markets: increasing digital funding opportunities SEC raises annual Reg CF fundi
Slide 9: Business Model
Business Model Fee income plus equity stakes Equity stakes provide optionality through possible exits (sale or IPO).
Slide 10: MAGFAST
MAGFAST. Closed on December 2, 2021 Most Recent Unit Price $14.23 Original Unit Price $14.23 Total Raised $3,437,940
Slide 11: The Netcapital Platform
The Netcapital Platform Helps Simplify the Fundraising Process Looking for capital? Tell us about yourself and speak to one of our specialists
Slide 12: Demonstrated Scalability of Netcapital Platform
Demonstrated Scalability of Netcapital Platform Rapid sell-out of MAGFAST off demonstrates proven scalability of the Netcapital platform. Netcapital Case Study-MAGFAST MAGFAST, a wireless charger company, launched an equity offering on netcapital.com in November of 2020. © Goal raise: $1.07 million
Slide 13: Closed Series A led by Breakthrough Energy Ventures
Closed Series A led by Bill Gates’ founded Breakthrough Energy Ventures in April of 2022 BEV board includes Abby Johnson, Bill Gates, Michael Bloomberg, Jeff Bezos, Waltons Funding to build 15 factories in the U.S. over the next seven years “VYantems’s approach allows the production of high-efficien
Slide 14: Announced $50 million funding round led by GM Ventures
Announced $50 million funding round led by GM Ventures in April of 2023 GM to assist EnergyxX with technology deployment “EnergyX’s pilot plant, which opened last year, has demonstrated that its technology can recover 90% or more of the lithium in brine while using much less energy, water and land t
Slide 15: Looking Forward: Netcapital to Offer Secondary Trading
Looking Forward: Netcapital to Offer Secondary Trading In January of 2023, Netcapital announced an Alternative Trading System (ATS) partnership with Templum Markets. Netcapital Inc. Goal: to provide potential liquidity for investors by allowing users to trade shares e Securities issued on the Netcap
Slide 16: Netcapital Advisors - Consulting Business
Netcapital Advisors - Consulting Business The Netcapital Advisors team of investors, entrepreneurs, and marketing professionals assists private companies with the fundraising process. Incubates and accelerates select technology companies Markets private deals through digital marketing and investor i
Slide 17: Select Equity Stakes
Netcapital Inc. Select Equity Stakes i. KINGSCROWD @® cHIPBRAIN (Reveal Online Private Capital Emotionally Intelligent Al Cancer Immunotherapy Markets Ratings and Analytics DEUCE Zelgor DRONE Games Drone Delivery Mobile Games
Slide 18: Financial Metrics
Financial Metrics NCPL results for nine months ended January 31, 2023: @ Revenues increased 48% to $5.4 million @ Delivered net income of $1.9 million and earnings per share of 46 cents e Reported $1.8 million in cash, $2.8 million in debt, and shareholders’ equity of $34.3 million Netcapital Inc.
Slide 19: Attractive Valuation vs. Peers
start¢! Netcapital Inc. engine Attractive Valuation vs. Peers 29x 43x Netcapital Inc. sells at a significant Revenues* Revenues** discount to peers.
Slide 20: Management Team
MARTIN KAY CEO MA, Oxford; MBA, Stanford Accenture, IBM, Bain & Company, Venture investor, CEO and CRO COREEN KRAYSLER, CFA CFO S.M., MIT Sloan, B.A. Wellesley College Former Morningstar 5-star Rated Portfolio Manager JASON FRISHMAN Founder B.S, Summa Cum Laude, University of Miami Advisor, The Capi
Slide 21: Investment Case Summary
Investment Case Summary We believe Netcapital is well positioned to disrupt traditional private capital markets. Netcapital
Slide 22: What People are Saying About Netcapital
@ “| think this is an intriguing story... This company is exciting.” JIM CRAMER Host of CNBC's Mad Money @ “The Netcapital platform has been excellent for us. It’s provided us with great exposure. It’s provided us witha mechanism where we can both direct friends and interested investors as well as p
Slide 23: Thank You
Thank You