#1seedinvest Securities and Exchange Commission Government-business forum on small business capital formation November 17, 2016#2SeedInvest is a leading equity crowdfunding platform Operate a wholly-owned broker-dealer to facilitate private placements. Have launched ~1% of applicants historically. (1) Perform independent due diligence on issuers before presenting on platform. Utilize four different securities exemptions (506(b), 506(c), Reg A+ and Reg CF). 140,000 TOTAL INVESTORS 8,500 COMPANY APPLICATIONS 22,000 ACCREDITED INVESTORS 3,500 INVESTMENTS IN Q3 (1) SeedInvest's selection criteria does not suggest higher quality investment opportunities nor does it imply that investors will generate positive returns in investment opportunities on SeedInvest. You can learn more about our vetting and due diligence processes on www.seedinvest.com. 2#3#4#5Reg D: Declining usage of 506(c) but new possibilities Percentage of companies utilizing 506(c) on SeedInvest has declined precipitously since 2013. Companies which have sizeable, engaged customer bases have benefited significantly from utilizing 506(c). However, for other companies, the friction of accreditation verifications has historically outweighed the benefits. We expect Reg CF/Reg D "side-by-side rounds" to lead to a revival of 506(c) rounds. % Of Seedinvest Issuers Utilizing 506(c) vs. 506(b) 85% 2013 Note: figures above include all issuers which have launched campaigns under Regulation D on SeedInvest since September 23, 2013. 64% 2014 36% 2015 16% 2016 5#6#7#8