2014 Crowdnetic

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2014 Crowdnetic
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Table of Contents

I. Overview """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" #
II. Industry Snapshot as of March 31, 2014 """"""""""""""""""""""""""""""""""""""""""""""""""""""""" #
III. Recorded Capital Committed and PIPR Percentages by Sector. """""""""""""""" $
IV. Top 10 Industries Across All Sectors """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""" %
V. Geographic Distribution """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" &
VI. Transaction Data Over the First Quarter 2014 """"""""""""""""""""""""""""""""""""""""""""" '(
VII. Capital Structure """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" ')
VIII. Form D Filings """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" '#
IX. Women-Owned and Women-Led Companies """""""""""""""""""""""""""""""""""""""""""""" '*
X. Conclusion """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" '&

2014 Crowdnetic
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I. Overview

As of March 31, 2014, CrowdWatch has aggregated and normalized data for 3,593 U.S. PIPRs
(Private Issuers Publically Raising), of which 2,834 are currently active. This represents a
relatively steady growth of active deals across all sectors. In our January 23, 2014 reportJOBS
Act Title II: The First 120 Days In Review, which commemorated three months since the lifting of
the ban on general solicitationwe indicated that there were 2,266 active issues. The March 31,
2014 PIPR totals represent an increase of 25.1% since that three-month anniversary date. Total
recorded capital commitments over the same time period have shown a 67.8% increase, from
$80.2 million on January 23, 2014 to $134.6 million as of March 31, 2014.

The following chart displays the previous quarters growth in active as well as total U.S. PIPRs
tracked by CrowdWatch and presented in our industry reports.

Active PIPRs Relative to All U.S. PIPRs

Data from 9/23/13 to 3/31/14
II. Industry Snapshot as of March 31, 2014

The total recorded capital commitments across all sectors through March 31, 2014 is $134.6
million, which represents an increase of 15.5% over the same figures from the previous month.
The total number of active PIPRs across all sectors during the same time period increased by
9.3%, from 2,594 to 2,834. Comparing these two sets of figures shows that the increase in capital
commitments cannot be attributed solely to the increase in the number of PIPRs, but also
represents a core increase in capital raising activity.

The Services and Technology Sectors continue to lead in total recorded capital commitments,
accounting for 35.3% and 24.9%, respectively, across all sectors, with the Financial Sector
coming next in line at 18.8%. In terms of percentage of PIPRs in those leading sectors, Services
and Technology lead as well, with 42.9% and 32.7%, respectively, of sector-wide PIPR totals.

PIPR totals in the Financial Sector, however, are significantly lower, at 5.5% (behind both
Consumer Goods and Materials). The noticeable differential between percentage of capital
committed and percent of PIPRs in the Financial Sector is explained in part by the larger average
capital commitment amounts typically seen in the Financial Sector. The Financial Sector average
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1/23/2014 2/28/2014 3/31/2014
Active US PIPRS Total US PIPRs Normalized
2014 Crowdnetic
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capital commitment amount for successfully-raising PIPRS is almost three times as high as the
comparable sector-wide average.

In addition, many of the active Financial Sector PIPRs are seeking far more capital than issuers in
other sectors. Two Financial Sector industries in particular continue to show a high degree of
success: Real Estate Development and Real Estate Investments Other. One could speculate
that this is due to the tangible nature of the real estate investment class, in that properties could
serve as collateral in the case of a negative liquidity event, such as a bankruptcy.

The higher Financial Sector amounts are also partially attributable to capital commitments
received by funds. This sector currently includes 22 funds, five of which have collectively received
$17.1 million in capital commitments. This amount represents a 25.7% increase over the same
totals from the previous month.

CrowdWatch Snapshot of Active PIPRs

Data from September 23, 2013 to March 31, 2014
III. Recorded Capital Committed and PIPR Percentages
by Sector

Overall, the amount of recorded capital committed was consistent with the results shown in the
February report, with at most a one percent shift among sector categories. The Services Sector
continues to lead the PIPR space both in terms of the number of active PIPR deals as well as
recorded capital commitments. The leading industry within this sector remains E-Commerce,
which has $6.5 million in recorded capital commitments spread among 158 active PIPRs.
Publishing and Transportation Services are the next-leading industries within the Services Sector,
with $4.2 million and $3.3 million, respectively, in recorded capital commitments. With respect to
the number of active PIPRs within the Services Sector, the next-highest industries are Education
K-12(87 active PIPRs) and Digital Media/New Media (65 active PIPRs).




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$50,000,000
Commerce
& Industry
Consumer
Goods
Energy Financial Healthcare Materials Services Technology
Recorded Capital Committed Total Number Of PIPRs
2014 Crowdnetic
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Recorded Capital Committed Number of Active PIPRs
by Sector by Sector














Data from 9/23/13 to 3/31/14 Data as at 3/31/14

As discussed above, the Financial Sector continues to receive larger average capital
commitments compared to the average amounts received in other sectors. This is reflected in
both the relative number of successfully-raising PIPRs, as well as the average amount raised.
The average amount of recorded capital commitments to successfully-raising PIPRs across all
sectors is $340,612. In contrast, the Financial Sector shows a pronounced spike to $975,577 in
comparable average recorded capital commitments.

Average Recorded Capital Committed
to Successfully-Raising Active PIPRs

Data from 9/23/13 to 3/31/14

$-
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$600,000
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$1,000,000
$1,200,000
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Commerce
& Industry
Consumer
Goods
Energy Financial Healthcare Materials Services Technology
Number of Successful PIPRs Average Recorded by Successful PIPRs
Commerce &
Industry
4%
Consumer
Goods
8%
Energy
2%
Financial
5%
Healthcare
4%
Materials
1%
Services
43%
Technology
33%
Commerce &
Industry
5%
Consumer
Goods
6%
Energy
3%
Financial
19%
Healthcare
6%
Materials
1%
Services
36%
Technology
24%
2014 Crowdnetic
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IV. Top 10 Industries Across All Sectors

The top two industries by recorded capital commitments, Real Estate Development and E-
Commerce, remained in the same positions for the quarter-end. However, while Publishing
received no new capital investments, Real Estate Investments Other received approximately
$1.5 million in new recorded capital commitments, bringing it to the third top industry in this
category. Real Estate Development remains the top industry by recorded capital commitments,
mainly buoyed by one private real estate investment fund that seeks out distressed properties in
the San Francisco Bay Area. The fund has been consistently profitable since its creation, offering
investors regular payments. It is likely seen as a safe investment given its positive returns and
high liquidity, which it has maintained throughout various economic cycles.

The top 10 industries by recorded capital commitments are distributed by sector as follows: 5 in
Services (E-Commerce; Specialty Retail, Other; Digital Media/New Media; Transportation
Services; Publishing); 2 in Financial (Real Estate Development; Real Estate Investments
Other); and 3 in Technology (Business Software & Services; Enterprise Software; Photo Sharing).

Top 10 Industries by Recorded Capital Commitments

Data from 9/23/13 to 3/31/14

Most of the industries containing the highest number of active PIPRs remained consistent with
the results shown in our February report. The number of active PIPRs in Social Media grew from
180 to 198, and the second largest category, E-commerce, grew from 135 to 158. Education K-
12 remained steady at 87 active PIPRs, which allowed App Software to jump to third place with 8
new active PIPRs, reaching a total of 92 as of March 31, 2014.

The top 10 industries by number of active PIPRs are distributed by sector as follows: 5 in
Services (Specialty Retail, Other; Fitness Services; Digital Media/New Media; Education K-12; E-
Commerce); 5 in Technology (Business Software & Services; Online & Mobile Gaming; App
Software; Social Media; Healthcare Information Services).




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Real Estate Development
E-Commerce
Real Estate Investments - Other
Publishing
Enterprise Software
Transportation Services
Digital Media/New Media
Specialty Retail, Other
Business Software & Services
Photo Sharing
Millions
2014 Crowdnetic
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Top 10 Industries by Number of Active PIPRs

Data as at 3/31/14

These two lists show that there is a difference between which industries attract entrepreneurs and
which industries attract investors. Only four of the industries are represented on both lists by
capital commitments and number of PIPRs: E-Commerce; Digital Media/New Media; Business
Software & Services; and Specialty Retail, Other.
V. Geographic Distribution

The geographic distribution of recorded capital commitments shows similar results from the
previous month. As expected, due to the predominance of PIPR activity in the San Francisco
Bay Area, including Silicon Valley, the Western Region outpaces the other areas in terms of
capital commitments across most sectors. The West leads other regions of the country in 6 out of
the 8 sectors: Commerce & Industry; Financial; Healthcare; Materials; Services; and Technology.
Recorded capital commitments in the Consumer Goods and Energy Sectors are higher in the
South than in other regions of the country.

Recorded Capital Commitments by Region and Sector

Data from 9/23/13 to 3/31/14
198
158
92
87
65
54
44
43
42
41
0 50 100 150 200 250
Social Media
E-Commerce
App Software
Education K-12
Digital Media/New Media
Online & Mobile Gaming
Business Software & Services
Fitness Services
Healthcare Information Services
Specialty Retail, Other
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
$100,000,000
West South Northeast Midwest Puerto Rico
Technology
Services
Materials
Healthcare
Financial
Energy
Consumer Goods
Commerce & Industry
2014 Crowdnetic
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Sector distribution by region showed more variance than in the previous month. The Services
Sector had the highest level of recorded capital commitments in the West and the Northeast, with
$32.8 million and $5.9 million in capital commitments, respectively. In the South, the leading
sector is the Financial Sector, with $9.2 million in capital commitments. In the Midwest and Puerto
Rico, the Technology Sector had the highest level of capital commitments, with $3.3 million and
$163,000, respectively.

Number of Active PIPRs by Region & Sector


Data as at 3/31/14

Distribution of active PIPRs by region and sector continues the patterns of the previous month,
with the Western Region garnering the largest number of PIPRs across all 8 sectors. The
Services Sector also had the largest number of active PIPRs across all regions. In Puerto Rico,
though, there is an equal number of PIPRs in the Services, Technology, and Consumer Goods
Sectors.
Top 5 States by Recorded Capital Commitments

Data from 9/23/13 to 3/31/14

As stated above, California leads the nation with $74.1 million in recorded capital commitments
and 910 active PIPRs. Of these 910 PIPRs, 150 have successfully received capital commitments
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West South Northeast Midwest Puerto Rico
Technology
Services
Materials
Healthcare
Financial
Energy
Consumer Goods
Commerce & Industry
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California Texas New York Florida Oklahoma
Recorded Capital
Commitments
Number of PIPRs
2014 Crowdnetic
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so far. The next 4 states have received somewhat comparable amounts of capital commitments
relative to each other (Texas: $7.7 million; New York: $7.1 million; Florida: $6.0 million; and
Oklahoma: $5.1 million). Of those 4 states, New York has the highest number of active PIPRs
(339), followed by Texas (182), Florida (174), and Oklahoma (12).

Comparison of 5 Major Metropolitan Areas

City Active PIPRs Recorded Capital Commitments
San Francisco Bay Area*, CA 443 $39.6MM
Greater Los Angeles, CA 240 $15.1MM
New York, NY 268 $6.8MM
Chicago, IL 93 $2.9MM
Houston, TX 31 1.9MM
*Includes Silicon Valley
Data from 9/23/13 to 3/31/14

The San Francisco Bay Area, which includes Silicon Valley, leads the nation in both active PIPRs
(443) and recorded capital committed ($39.6 million). In contrast, the next highest-performing
region, the Greater Los Angeles Area, has slightly more than half the number of PIPRs (54.2%)
and 38.1% of the amount of recorded capital commitments. As compared to the results from the
last month, these are the same top 5 cities in the same relative positions.
VI. Transaction Data Over the First Quarter 2014

The transaction data represent all recorded inflows and outflows over the quarter ending March
31, 2014. As these figures are for all measured cash flows, they may indicate capital that was
raised during the quarter for PIPRs that have subsequently closed. Furthermore, individual
capital commitments may be recalled outside of the week and quarterly timeframes used to chart
this data and therefore cannot be viewed pari passu with total active PIPR raises. Each week is
seven days long, with the exception of Week 13, which ran six days from March 26-31.

For the period January 1, 2014 through March 31, 2014, the CrowdWatch platform tracked
approximately $48 million in net transactions. Consistent with recorded capital commitments for
active PIPRs, the Technology and Services Sectors accounted for the highest amount of
transactions by value.

First Quarter 2014 Capital Transactions

Data from 1/1/14 to 3/31/14
10%
8%
16%
16%
7%
5%
18%
20%
Commerce & Industry
Consumer Goods
Energy
Financial
Healthcare
Materials
Services
Technology
2014 Crowdnetic
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However, unlike recorded capital commitments for active PIPRs as at March 31, 2014, the capital
transaction percentages for these two sectors do not constitute the majority of transaction
amounts. This is in part due to the higher proportion of capital transactions that occurred in the
Energy sector, which made up 3% of all active PIPRs by recorded commitments. Of seven
transactions in the space, there were three that were over $1 million, with one PIPR that operates
in the Alternative Energy, Other Industry having received approximately $5 million in
commitments.

First Quarter 2014 Cumulative Data Transactions

Data from 1/1/14 to 3/31/14

When viewing the cumulative transactions in the aggregate, the data show very few spikes, with
the exception of the aforementioned Energy transactions, which occurred in Week 7 (February
12-18) and Week 9 (February 26-March 4) of the quarter. However, the variance becomes more
apparent when one views the transactions on a week-by-week basis.

First Quarter 2014 Weekly Transactions by Sector

Data from 1/1/14 to 3/31/14

The three weeks with the lowest transactionswhich were also the only weeks that did not
exceed $1 million of net incoming transactionsin increasing order were Week 10 (March 5-11),
Week 11 (March 12-19) and Week 5 (January 29-February 4).

0
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Services
Materials
Healthcare
Financial
Energy
Consumer Goods
Commerce & Industry
$(2,000,000)
$-
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$4,000,000
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$12,000,000
Technology
Services
Materials
Healthcare
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Energy
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Commerce & Industry
2014 Crowdnetic
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Given the capital commitments made to companies based in the West, one would not be
surprised to find that this region accounts for the largest number of transactions over time. The
Wests position is solidified with companies in California receiving net cash flows amounting to
$18.5 million, or 74% of the regions total net transactions. However, it is surprising how little the
Midwest and the Northeast secured relative to the South. Businesses in Florida, Oklahoma and
Texas received the highest level of transactions, at $5 million for Florida and Oklahoma, and $3.6
million in Texas, which cumulatively account for 80% of the regions transactions.

First Quarter 2014 Cumulative Transactions by Region

Data from 1/1/14 to 3/31/14

When this same data is shown by week, businesses in the West and the South are most
frequently the leading recipients of capital. The only significant regional outflow appears to be the
result of redemption from a Massachusetts-based company, which was made in Week 4.

First Quarter 2014 Weekly Transactions by Region

Data from 1/1/14 to 3/31/14
VII. Capital Structure
In comparison to the capital structure data from the previous month, the distribution of recorded
capital committed by security type through March 31, 2014 shows a mere 1% shifting from
convertible debt to equity. The distribution of number of issues by security type is unchanged.
$-
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$60,000,000
Week
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Midwest
Northeast
South
West
$(2,000,000)
$-
$2,000,000
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$12,000,000
Week
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Midwest
Northeast
South
West
2014 Crowdnetic
13
Equity is clearly the preferred security type for PIPRs raising capital, but convertible debt remains
a solid alternative option for those seeking more flexibility.

Recorded Capital Committed Number of Issues
By Security Type by Security Type

Data from 9/23/13 to 3/31/14 Data as at 3/31/14

The following chart displaying recorded capital committed by region and security type shows that
equity is the preferred type of security, followed by convertible debt and then debt, across 4 of the
5 regions. PIPRs in the Northeast Region, however, have received slightly more capital
commitments in the form of convertible debt ($6.4 million) than in equity ($5.8 million).

Recorded Capital Committed by Region and Security Type

Data from 9/23/13 to 3/31/14

The chart of number of issues by region and security type shows a similar trend as that shown
above, and continues the pattern from the previous month. Equity continues to be the preferred
security type, as shown by the proportion of number of equity issues, relative to debt and
convertible debt. Even in the Northeast, where convertible debt had a slight edge in amount of
capital commitments, the number of equity issues (411) far outweighs the same figures for
convertible debt (115 issues) and debt (32 issues).




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$10,000,000
$20,000,000
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$50,000,000
$60,000,000
$70,000,000
West South Northeast Midwest Puerto Rico
Equity Debt Convertible Debt
2014 Crowdnetic
14

Number of Issues by Region and Security Type


Data as at 3/31/14
VIII. Form D Filings

Under Regulation D, an issuer selling securities in a Rule 506 offering must file a Form D with the
SEC no later than 15 calendar days after the first sale of securities in the offering. The charts
below display 506(c) Form D filings with respect to number filed and total offering amount by
sector. Additionally, there is a comparison between Form D filing activity and PIPR activity
reported on CrowdWatch, both in terms of raw numbers of filings and listings, as well as numbers
of companies that have successfully sold securities or received capital commitments. The data in
the charts below come from the SECs EDGAR database and include amendments, as
applicable. The Industry Groups included in line 4 of Form D have been mapped to our sector
classifications for the purposes of comparison and consistency within the larger data compilation.

Total Number of 506(c) Form D Filings, by Sector

Data from 9/23/13 to 3/31/14

The total number of 506(c) Form D filings across all sectors since 9/23/2013 is 1,079, with almost
half (46.9%) coming from the Financial Sector. The Services Sector has the lowest number of
506(c) filings during this period. These sector-wide figures stand in contrast to the PIPR data we
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1,000
West South Northeast Midwest Puerto Rico
Equity
Debt
Convertible Debt
0
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600
Commerce &
Industry
Energy Healthcare Financial Services Technology Other
2014 Crowdnetic
15
aggregate, which show the two largest sectors to be Services and Technology. These
differences may be explained in part by the inherent differences between the two data sets. Form
D data encompass information from all issuers that file, while the CrowdWatch data are limited to
data from the intermediaries included in our platform.

Total Offering Amount Reported on Form D Filings, by Sector

Data from 9/23/13 to 3/31/14

According to the Form D filings, the total offering amount in 506(c) offerings across all sectors is
$40.9 billion.
1
This figure includes one 506(c) issuer from the Commerce & Industry Sector that is
seeking to raise $20 billion. Accounting for this one outlier reduces the Form D 506(c) total
offering amount to $20.9 billion. Of this adjusted amount, $15.7 billion is the total offering amount
in the Financial Sector. This figure represents 74.8% of the adjusted total offering amount across
all 506(c) Form D filings, and is materially higher than the comparable 46.9% figure discussed
above with respect to the relative number of 506(c) filings in the Financial Sector.

Form D Activity vs. CrowdWatch PIPR Activity

Data from 9/23/13 to 3/31/14


1
The Form D figures for Total Offering Amount do not include amounts for 268 issuers that have
answered Indefinite under Total Offering Amount on line 13.
$-
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Commerce &
Industry
Energy Healthcare Financial Services Technology Other
1,079
766
555
49
3,593
0
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2,000
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3,000
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4,000
506(c) Form D
Filings
506(c) Form D
Filings Where Total
Amount Sold >0
PIPRS with
Recorded Capital
Commitments
PIPRs Capital
Committed ! Target
All PIPRs
2014 Crowdnetic
16
According to the Form D filings data, there are 1,079 506(c) Form D filings through March 31,
2014. Of this amount, 766 companies (70.9% of the total) have successfully raised capital.
2
In
comparison to the same figures from last month, this represents an increase of 116 filings (12.0%
increase), and an increase of 84 companies (12.3% increase) reporting a positive total amount
sold.

In contrast, there are 3,593 total U.S. PIPRs listed on CrowdWatch during the same time period
(2,834 active PIPRs and 759 no longer listed on our platform). Of this total, 555 have positive
recorded capital commitments and 49 have reported capital commitments greater than or equal to
their target amounts. Compared to figures from the previous month, this represents an increase
of 81 companies (17.1% increase) with positive commitments, and 11 PIPRs (28.9% increase)
raising more than or equal to target.

To the extent the number of total PIPRs exceeds the number of Form D 506(c) filings, this
difference may be explained in part by the fact that all but 555 of total PIPRs have yet to receive
capital commitments, and thus their Form D filing obligations have not yet ripened.
3

IX. Women-Owned and Women-Led Companies

In compiling market data on PIPR activity, we track many different attributes, including ownership
and leadership by women. For the purposes of this analysis, we define women-owned as any
company having one or more female founders, and women-led as any company with one or more
C-suite or executive-level women in management.

Number of Women-Led PIPRs and Women-Owned PIPRs
Relative to Total PIPRs, by Sector

Data as at 3/31/14

The above chart compares the number of women-led PIPRs and women-owned PIPRs to total
PIPRs, and breaks down these figures by sector. Out of a total of 2,834 total active U.S. PIPRs

2
For the purposes of this analysis, successfully raising capital is defined as having a positive
Total Amount Sold, as reported on line 13 of Form D.
3
As discussed above, any comparison of Form D filings and PIPR data should also consider the
inherent differences between the two data sets. Form D filing data encompass information from
all issuers that file, while CrowdWatch data are limited to data for the intermediaries included in
our platform. Other differences may also be explained by inconsistencies in issuer compliance
with Form D requirements.
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Commerce
& Industry
Consumer
Goods
Energy Financial Healthcare Materials Services Technology
Women-Led Women-Owned Total
2014 Crowdnetic
17
since 9/23/2013 across all sectors, 524 are led by women and 500 are owned by women. This
represents 18.5% and 17.6%, respectively, of the larger total. The distribution of these
percentages by sector shows a similar pattern to last months figures, with the highest percentage
of women-led and women-owned PIPRs represented by the following sectors: Consumer Goods
(23.1% and 22.7%, respectively); Services (22.6% and 22.0%, respectively); and Healthcare
(21.2% and 19.5%, respectively). The Commerce & Industry, Technology, and Energy Sectors
account for the lowest percentage of women-led and women-owned companies (13.7 and 12.0%
for Commerce & Industry; 13.1% and 12.1% for Technology; 10.4% and 10.4% for Energy,
respectively). Trending towards the overall average percentage figures are the Materials Sector
(17.6% for both categories, although the statistical significance of these lower numbers is of
note); and to a lesser extent the Financial Sector (15.5% and 13.5%, respectively, although these
figures are on the low end, since both are below the sector-wide averages).

Even though the Services and Technology Sectors attract the largest total number of active
PIPRs, it is the Consumer Goods, Services, and Healthcare Sectors that are attracting the largest
percentage of women-led or women-owned PIPRs. This pattern was also evident during last
months data compilation.

With respect to raw numbers, however, the Services and Technology Sectors still lead in terms of
number of women-led and women-owned PIPRs (275 and 268, respectively, in Services; 121 and
112, respectively in Technology), followed by the Consumer Goods Sector (56 and 55,
respectively). The Services and Consumer Goods Sectors therefore earn spots on both the
highest percentage and highest raw number compilations, both this month and for the month
ended February 28, 2014, reflecting perhaps the beginning of a trend for women-led and women-
owned private companies engaging in 506(c) offerings.

While the chart above shows relative number of PIPRs by sector, the following chart shows
recorded capital commitments to women-led and women-owned PIPRs relative to total active
PIPRs across all sectors. The above chart showed which sectors are attracting women
entrepreneurs and women leaders. The following chart shows which women-led and women-
owned companies by sector are attracting the most capital.


Recorded Capital Commitments to Women-Led and Women-Owned PIPRs
Relative to Total PIPRs, by Sector


Data from 9/23/13 to 3/31/14

$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$50,000,000
Commerce
& Industry
Consumer
Goods
Energy Financial Healthcare Materials Services Technology
Women-Led Women-Owned Total
2014 Crowdnetic
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The total recorded capital commitments to all active U.S. PIPRs across all sectors since
September 23, 2013 is $134.6 million. Of this total, $34.1 million in capital commitments has gone
to women-led companies, and $22.7 million has gone to women-owned companies. This
represents 25.3% and 16.9%, respectively, of total capital commitments to all PIPRs,
respectively. These sector-wide capital commitment percentages are higher than the 18.5% and
17.6% percentages by number of PIPRs, discussed in connection with the first chart above.

The percentage breakdown by sector shows much more variance across all sectors than is
shown in the comparable percentages based upon number of PIPRs. Repeating the pattern
shown in the previous monthalthough switching relative positionsthe three highest sectors in
terms of capital commitments to women-led companies are Healthcare (49.2%), Consumer
Goods (39.6%), and Financial (32.6%). The Healthcare figure is of particular interest, as it shows
that almost half of all recorded capital commitments in that sector went to women-led companies.
The Technology and Services Sectors also posted strong results with 24.3% and 21.9%,
respectively, of total capital commitments going to women-led companies. There is a large gap
between those sector percentages and the bottom group, which is comprised of Commerce &
Industry (4.4%), Energy (3.9%), and Materials (a small category to begin with, posting 0% for
women-led PIPRs).

The Consumer Goods Sector tops the women-owned ranking of recorded capital committed as a
percentage of total, with 35.6% of total capital commitments. Next in order are: Services (21.0%);
Technology (20.2%); and Healthcare (18.5%). Repeating the above pattern shown for women-
led companies, there is also a large gap between the middle group and the bottom group, with
the Financial (5.0%), Commerce & Industry (3.9%), Energy (3.9%), and Materials (0%) sectors
representing this bottom rung in capital commitments to women-owned companies.

Most of the women-led and women-owned percentages are comparable in relative terms across
the sectors, except in the Healthcare and Financial Sectors. For those two sectors, the capital
commitments to women-led PIPRs outweigh the same figures for women-owned PIPRs. This
may be due, in part, to a number of successfully-raising, women-led PIPRs that do not have
women founders.
X. Conclusion

As the PIPR marketplace continues its upward trajectory both in terms of new offerings and
attracting more commitments, it is establishing itself as a viable, alternative form of financing for
entrepreneurs as well as small and medium businesses. However, given its rapid growth, it
originally developed in the absence of the necessary infrastructure to help connect investors and
those seeking capital from the plethora of options. CrowdWatch addresses this need by
aggregating and normalizing this information so it is readily available for market participants to
understand and navigate. Through the transparency that CrowdWatch provides, we aim to
support this industry in its maturation to a mainstream asset class for the crowd.

2014 Crowdnetic
19
About Our Sponsors





Venture-catalyst Springboard Enterprises is the premier platform where influencers, investors and
innovators meet to help women build big businesses starting small. Springboard sources,
coaches, showcases and supports women-led growth companies seeking equity capital for
product development and expansion.

545 women-led companies have participated in Springboard's accelerator programs; raising $6.2
billion, creating tens of thousands of new jobs, and generating billions of dollars in annual
revenues. 83% of Springboard companies are still in business as independent or merged entities,
including 10 IPOs and many are the technology engines of publicly traded companies.

We are a non-profit 501c3 organization based locally in the USA but acting globally to accelerate
women entrepreneurs' access to growth capital. We place great emphasis on collaborating with
other business and entrepreneurial organizations, academic institutions, government offices and
corporations to deliver results.









The Kingdom Trust Company is the leader, visionary and pioneer self-directed IRA custodian for
crowdfunding, peer-to-peer lending, and private equity and debt marketplace. Kingdom Trust is
the only true institutional provider that works with the most crowdfunding platforms and portals as
a result of leading-edge, seamless and efficient on-line account processing, and the most
competitive institutional pricing. From simple self-directed IRA custody of alternative assets for
the individual investor to sophisticated solutions for institutional clients, Kingdom Trust serves a
wide array of clients seeking portfolio diversification.







2014 Crowdnetic
20








Crowdcast Network is a web-based media platform that showcases the breakthrough innovations
of emerging entrepreneurs, as well as the profiles of privately held companies raising investment
capital. It is also one of the premier providers of informative programming from the world of
equity crowdfunding.














Ventureneer is a content marketing and market research company, which helps corporations
reach small businesses through branded marketing and social media opportunities that generate
visibility, thought leadership and brand loyalty.

2014 Crowdnetic
21
About Crowdnetic
Crowdnetic is a leading provider of market data solutions and technology to the global
crowdfinance marketplace. We operate the industrys premier centralized hub for real-time market
data aggregated from platforms across the globe.

Founded in 2011 by experienced financial technology and data industry experts, Crowdnetic is
committed to creating a productive and sustainable marketplace for the global crowdfinance
industry. Bringing over 15 years of experience in building complex, data intensive customized
solutions, the leadership team has been instrumental in revolutionizing the industry through
developing market data and analytics solutions.

Crowdnetic owns and operates NowStreetWire.com, CrowdWatch.co and is a co-producer of the
premier peer-lending conference, LendIt, the largest and most recognized conference in the P2P
and online lending industry.

For sponsorship opportunities, please contact us at: contactus@crowdnetic.com.
For media inquiries, please contact us at: press@crowdnetic.com.