[P2P-F] Fwd: CCA's Rabbit Report - EqSeed - A Brazilian Equity Crowdfunding Platform Tackling Economic Challenges

Michel Bauwens michel at p2pfoundation.net
Fri Jun 24 23:35:22 CEST 2016

---------- Forwarded message ----------
From: Sherwood Neiss <sherwood at theccagroup.com>
Date: Fri, Jun 24, 2016 at 1:54 AM
Subject: CCA's Rabbit Report - EqSeed - A Brazilian Equity Crowdfunding
Platform Tackling Economic Challenges
To: Michel <michel at p2pfoundation.net>

June 23, 2016
View this email in your browser
The R.A.B.B.I.T. Report
by Crowd Capital Ventures
and Crowdfund Capital Advisors


In a country struggling with economic, political and social challenges, how
does an equity crowdfunding platform become part of the solution in filling
the funding gap where regulations stifle business starts and investments?
This RABBIT[1] <#m_39101487186352525__ftnref1> Report details one of the
early pioneers in Brazil.

*Company: EqSeed** (**w
*Sector:      Platforms & Secondary Markets*
*Location:*  *Rio de Janeiro, Brazil*

*Deeper Dive:*
*1. What problem is EqSeed solving?*
EqSeed is a pioneer equity crowdfunding platform based in Brazil whose goal
is to fill the very large funding gap that exists in Brazil for startups
and SMEs.

Many quality companies in Brazil cannot access the capital they need to
grow after they receive some initial funds from early stage accelerators
and (limited) government programs. Accelerator investments are typically
capped around  BRL 150,000 (~US$44,000), which is generally enough for a
company to develop an MVP but not enough to launch. After this there is
early stage venture capital, however, they generally invest greater than
BRL 2M (~US$586,000) and back companies with valuations of at least BRL 10M
(~US$2.9M). Between these two points lies a critical gap in the capital
access market. Without access to one or two rounds of post accelerator
funding and a 12–24 month additional period of development, a large
quantity of quality Brazilian startups cannot bridge the gap and do not
survive or reach their full potential.

The angel investment market, which typically fills this gap very
effectively in Europe and the US, is extremely shallow in Brazil with very
few active startup investors in the sector. The angel investment market is
also poorly organized and severely underdeveloped with inconsistent
structures and valuations and even investment terms that are often
detrimental to the growth of the investee companies.

Listen to our in-depth interview with CEO Greg Kelly about EqSeed, the
challenges and opportunities in Brazil.

*2.Why is EqSeed necessary?*
It is nearly impossible to access thousands of investors offline in Brazil.
However, EqSeed gives Brazilian companies access to thousands of investors
interested in investing in startups on their platform. EqSeed plays a very
hands on role and provides its startups the tools and structure to publish
regulatory approved investment offers online. "Using this
platform, companies can transform their personal and professional social
networks into investors *and* professional support to take their companies
to the next level," says co-founder Greg Kelly.

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