LEOcrowd
www.leocrowd.com LEOcrowd Contents Liberty Enlightening the World 2 The Paradigm Shift in World Finance 3 Digital Currencies and LEOcoin 4 The rapidly growing world of Crowdfunding 5 The Philosophy 6 Crowdfunding Backers 7 Crowdfunding Project Creators 8 Why does LEOcrowd stand out? 13 Transaction Process 15 The Vision for LEOcrowd 16 Set Your Entrepreneurial Spirit Free
Liberty Enlightening the World In the Summer of 1885, the Statue of Liberty arrived in New York. Designed by French sculptor Frederic Auguste Bartholdi and paid for by the Government of France, the statue was a diplomatic gift to the US. Local and National Government refused to fund a granite base to put the statue on. It seemed as though New York had run out of options when renowned publisher Joseph Pulitzer decided to unleash the power of the people. He launched a crowdfunding campaign in his newspaper The New York World. The campaign raised money from more than 160,000 donors, including young children, businessmen, street cleaners and politicians, with more than three-quarters of the donations amounting to less than one dollar. It was a triumphant effort; in just five months The New York World raised $101,091 - enough to complete the granite plinth. This event proved that everyday people will give money to a project if they like it. A century on, and the internet has turned crowdfunding into a $16 billion-a-year industry, more than doubling in 2015. Crowdfunding has become an entrepreneurial movement and is changing the way that businesses raise money. 1 2
The paradigm shift in world finance Traditionally, banks have been the only option for people who want to start and grow their business. However, 2007 saw the start of a paradigm shift so great that the world of banking has been changed forever. The debt crisis saw major banks and financial institutions collapse and governments the world over step in and rescue those that remained. For entrepreneurs, borrowing money has become even harder and companies now need alternative ways of funding their business and new ideas. This means that the time is right for modern Crowdfunding. This is becoming a global phenomenon and has seen remarkable growth from humble beginnings in 2009 to a $34 billion industry in 2015. Put simply, Crowdfunding connects people who want to secure funding for a project with people who want to fund projects in return for a reward or equity. Digital Currencies and LEOcoin LEOcoin is a digital currency, standing on the shoulders of Bitcoin, an open-source software created in 2009 by developer Satoshi Nakamoto. This is a pseudonym and it is not public knowledge who is behind the first white paper defining Bitcoin. LEOcoin is backed by LEO a Direct Selling business launched in 2012. LEOcoin is the preferred choice for entrepreneurs around the globe. Not because of the mechanics of the digital currency, but because of LEO s unique core competencies duplication, coupled with education, coupled with feet on the ground. This means we have an instant community supporting LEOcoin. Digital currencies are disruptive because they overturn the notion that currencies have to be managed and controlled centrally. Instead, in a peer-to-peer system transactions are verified securely using something called the blockchain and a de-centralised ledger system. Checks are built into a digital currency s architecture and it is no longer the preserve of a financial elite of any sort, making them a no-brainer for building into the core architecture of LEOcrowd. 3 4
The rapidly growing world of Crowdfunding As it becomes harder and harder for businesses to raise money, more and more entrepreneurs have looked for alternatives. They have exciting and disruptive ideas, but cannot access the money they need. Crowdfunding provides the best solution to this global challenge. Put simply - Crowdfunding is an online platform that connects people who want to secure funding for a project with people who want to fund projects in return for a reward or equity. Whether the funds are required to record a music album, to write a book, design an exciting new product or to build a property portfolio, the global Crowdfunding tribe can help. Country 2014 - $ 2015 - $ (Forecasted) USA 9 bn 17 bn China 3 bn 10 bn Europe 3 bn 6 bn Others 1 bn 1 bn TOTAL = $16 bn $34 bn 5 Market grown from $1.5 billion in 2011 to $34 billion in 2015 4 main Crowdfunding Models Donation, Reward, Equity & Lending There are 1250 Crowdfunding Platforms world-wide with over 600 in Europe alone The Philosophy Learning Enterprises Organisation (LEO) is about developing entrepreneurship. The hundreds of thousands of Members around the world demonstrate how successful it has been. LEOcrowd, with its ability to help create and fund projects fits seamlessly into that philosophy. What will make LEOcrowd stand out in a crowded market place? Although in a relatively new market sector LEOcrowd has a unique dynamic mix. We not only have a global Member base of hundreds of thousands in 120 countries around the world, but we also use digital currency alongside traditional currencies. This elevates LEOcrowd to among the most advanced Crowdfunding companies in the world. When Backers successfully fund a project, LEOcrowd earns a small fee for facilitating this transaction. The company is here to unleash the power of the crowd. LEOcrowd is designed to help people realise their vision and get the funds that they need to set their entrepreneurial spirit free. Many traditional funding systems are risk-averse and profit-focused, and lots of great ideas never get off the ground. LEOcrowd opens the door to a whole new world full of creative possibilities and dreams, one where anyone can help decide which bright idea will become tomorrow s reality. LEOcrowd will help set the entrepreneurial spirit free. To help creative minds realize their envisioned ideas by achieving the required funds and setting their entrepreneurial spirit free. 6
Crowdfunding Backers Crowdfunding Project Creators Backers pledge money and get a reward from the Project Creator. A Project Creator is the person or team behind the project idea, working to bring it to life. If the project succeeds in reaching its funding goal, all Backers will be charged at the end of the funding period. If the fund falls short, no one is charged. Funding is allor-nothing. Anyone that meets our Project Creator requirements can launch a project on LEOcrowd. Many Backers begin with supporting their friends or family s projects, while some are supporting a new effort from someone they ve long admired. Other Backers are just inspired by new ideas, while others are motivated by a project s rewards. Every Project Creator sets their project s funding goal and deadline. If people like the project, they pledge money to make it happen. If the project succeeds in reaching its funding goal, all Backers are charged when the time expires. If the project falls short, no one is charged. Funding on LEOcrowd is all-or-nothing. The Project Creator needs to deliver the reward promised and can receive his funding in a range of major currencies including LEOcoin and Bitcoin. As LEO, the company behind LEOcrowd started as a training provider for entrepreneurs, all project creators can benefit from these courses. LEO is passionate about new ideas and entrepreneurship and offers all Project Creators a range of tools that will help make their project a success. Backing a project is more than just pledging funds to a Project Creator. It s pledging your support to a dream, an idea that you want to see exist in the real world. 7 LEOcrowd will offer support to Project Creators as they develop their pitch and business. LEOcrowd isn t involved in the delivery of the project. 8
UNLEASH THE POWER OF THE CROWD 9 10
Right now, entrepreneurs are already using Crowdfunding to raise hundreds of thousands of dollars in pure donations. Imagine the possibilities if these small dollar donors become investors with a stake in the venture. Barack Obama (2011) President of the United States of America I have invested in some bitcoins myself, and find it fascinating how a whole new global currency has been created. For people who can afford to invest a little in bitcoins, it s worth looking into. Many people and organisations are. Richard Branson Founder of the Virgin group of Companies Things like Bitcoin are completely outside the control and the knowledge of anyone. It will be everywhere and the world will have to readjust. World governments will have to readjust. John McAfee Founder McAfee, Inc Perhaps crowdfunding can help restore the magic by freeing entrepreneurship from the taint of Big Finance. Reihan Salam (2011) Executive Editor of National Review Bitcoin could become a major means of payment for e-commerce and may emerge as a serious competitor to traditional money-transfer providers. David Woo FX and Rates Strategist, Bank of America/Merill Lynch 11 12
Why does LEOcrowd stand out? LEO, the company behind LEOcrowd, is a company that offers education and training for entrepreneurs and people who want to start and grow their own business. Since December 2012, over 180,000 people from over 120 countries have used LEO products and they are part of the LEO community. This means that LEOcrowd will launch with an existing audience of people from across the world who are passionate and excited about new ideas. This is a ready-made audience, who want to hear ideas from Project Creators. LEOcrowd uses a range of different currencies, including LEOcoin and Bitcoin. This helps both Project Creators and Backers. Backers can use digital currencies to support projects anywhere in the world without having to spend money on international bank charges. Similarly, Project Creators can ask for funding from all over the planet and be confident in a secure, cost effective and reliable way of receiving the funds that they need. The use of digital currency, combined with the existing LEO audience, means that LEOcrowd is a truly global platform. Whereas other platforms restrict countries, LEOcrowd believes that people from all over the world should be able to benefit from this new way of helping businesses to raise money. LEOcrowd What does the Crowdfunding platform do: It helps Project Creators have a better understanding of market demand and test the market for new products and new ideas with little up-front cost It provides a better way to generate interest in projects and pre-orders up-front It helps to drive a highly focused and successful funding campaign in the global market It helps to create media buzz and positive PR coverage through multiple channels It helps to find potential business partners, distributors and investors. For example, your Backers will become your brand spokesperson and marketing team, helping to promote your project to all their contacts It creates better investment opportunities for digital currency users and investors It helps LEO Members around the world join together to create win-win opportunities and support each other It allows you multiple attempts to achieve your funding. If at first you don t succeed, you can try again with an improved plan 13 14
Transaction Process The vision for LEOcrowd There are a number of ways Backers can pledge and subsequently fund the project of their choice. LEOcrowd accepts a range of major currencies including LEOcoin and Bitcoin. This provides the global Crowdfunding Member with choice. Once a Backer choses to fund a project the online form is completed and the pledged funds are held against the account and only if the target amount is reached will the funds transfer to the Project Creator. If the chosen project is not successful in reaching its stated target the funds are not taken. The key to transacting on the LEOcrowd platform is flexibility and simplicity. $40bn $35bn $30bn $25bn $20bn $15bn $10bn $5bn $0 1885 2010 2011 2014 2015 The fundamentals behind LEOcrowd have never been combined before in a crowdfunding platform. LEOcrowd is designed to be a platform which helps many new businesses to grow and helps many new ideas to become a reality. Due to its global focus, LEOcrowd will bring this concept to many more people who have historically not been able to participate because they don t live in the right place. The base of the Statue of Liberty was an early example of Crowdfunding and the statue is a global symbol of freedom and liberty. In the same way, LEOcrowd is designed to give new freedoms to Project Creators with exciting new ideas. It is designed to give people from across the world, no matter where they live, the freedom to access an exciting new way of supporting businesses. And above all LEOcrowd is here to set the global spirit of entrepreneurship free. 15 16
LEOcrowd Battle Barns 112 Preston Crowmarsh Oxfordshire. OX10 6SL United Kingdom info@leocrowd.com www.leocrowd.com