Overview of the potential financing options available to Cypriot startups based on their stage of growth. Exploring the key information investors are looking for in a startup by exploring a pitch deck.

1. Crowdbase
Startup Financing and
Crowdfunding

2. Who we are
Startup financing options
Crowdfunding
01
CONTENTS
Bonus Topics
Q&A
02
03
04
05

3. WHO WE ARE 01

4. Frixos
Larkos
Panayiotis
Kakourides
BSc Economics & Finance from University of Surrey,
Master’s in Financial Analysis from London Business
School, Experienced in investment banking, insurance,
wealth management and technology sector. Passed CFA
Level I and II exams.
BSc Business Mathematics & Statistics from London
School of Economics, Master’s in Financial Analysis from
London Business School, Experienced in Strategy &
Transactions Advisory. Passed CFA Level I and II exams.
The first investment-based crowdfunding platform in
Cyprus, regulated by the Cyprus Securities and Exchange
Commission. Founded in October 2020 by Frixos Larkos
(CEO) and Daniel Koudouna (CTO), and gained its Cyprus
Investment Firm license from CySEC in January 2022.

5. STARTUP
FINANCING
OPTIONS
02

6. What they do
Who they are for
Support startups during the very early stages of their
development. They provide valuable resources such as
office space, infrastructure and facilities, access to an
executive mentor’s network, and legal, financial, and other
types of consultation.
Startups that are still in the idea stage, or in the process of
turning their idea into a viable business, would benefit
greatly from applying to these organisations and
leveraging everything they have to offer. These startups
are usually called Pre-Seed.
IDEA Innovation Center
Cyprus Seeds
ARIS A Really Inspiring Place
Accelerators & Incubators
Examples

7. What they do
Who they are for
Provide funding without asking for an equity stake in
return, provided the specific conditions are met. These
programs typically have high levels of competition
amongst applicants, as the total funding amount available
is usually below the needs of the market.
Wide range of businesses, from very early-stage startups
to established Small-Medium-Enterprises (SMEs).
Research and Innovation Foundation IRIS Portal
Ministry of Finance Information Portal for Funding
Programmes
Ministry of Energy, Commerce and Industry Digitalisation
Grant
Grants
Examples

8. What they do
Who they are for
Angel investors are typically high-net-worth individuals that
provide financing to startups for an equity stake in the
company. These investors are usually well-established
entrepreneurs themselves, with wide-reaching networks
that can help you reach the right people as well as give
advice and guide you to success. Quite limited presence of
angel investors in Cyprus in comparison with other
countries.
Can invest very early in a startup or in a later financing
round as a combination with other funding sources (e.g.
crowdfunding, venture capital). Typical investment sizes
range from €25,000 to €100,000 per angel investor, but in
some cases can be more than that.
Cyprus Business Angels Network (CYBAN)
Angel Investors
Examples

9. What they do
Who they are for
Pooled investment funds that look to invest in startups
and SMEs in return for an equity stake. They typically
employ a more active role in their investments by providing
guidance, networking opportunities and often assume a
board seat in the company.
Venture Capital (VC) Funds usually invest after the Seed
stage of a startup (Series A and later). Typical investment
sizes range from €200,000 to €1,000,000.
KV Fund by Kinisis Ventures
Whitebeam
Cyprus Equity Fund (expected to launch February/March
2023)
Venture Capital Funds
Examples

10. What they do
Who they are for
Provide financing to startups by pooling investments from
a large number of individual investors. A crowdfunding
campaign is created for every startup that seeks financing,
with all information presented in one centralised location –
the campaign page. Investors have a chance to review all
available information and take their decision whether they
want to invest or not.
Depending on the type of crowdfunding campaign, they
can finance startups from their very early stages through
to their later stages, either as a single financing source or
a combination with other funding sources (such as angel
investors and VC funds).
Crowdbase
Kickstarter
Crowdcube
Seedrs
Crowdfunding Platforms
Examples

11. CROWDFUNDING 03

12. Introduction
Crowdfunding is the method of raising capital
from a large number of individuals to support
a new business venture or project. Each
individual invests a relatively small amount of
money, which is pooled together to provide
the funds needed for the project. In return,
investors receive financial and/or non-
financial benefits, depending on the type of
crowdfunding campaign.

13. The 4 types of crowdfunding
1. Equity
Crowdfunding
Allows investors to acquire an ownership stake
in a private business, proportional to the
amount invested. As shareholders in the
business, investors enjoy financial benefits in
dividends or returns (e.g. company acquisition).
This type is popular among startups that
struggle to secure financing through traditional
sources due to their high risk-return profile.

14. The 4 types of crowdfunding
2. Debt
Crowdfunding
With this type, companies borrow money from
investors (like they would from a bank) and
repay them over time with interest. Popular
among SMEs, with at least 2 - 3 years of
financial history and relatively stable cash
flows.

15. The 4 types of crowdfunding
3. Rewards-based
Crowdfunding
Backers receive different non-financial
benefits in exchange for their money. This
could range from a small thank you note to a
final product delivered to a backer’s doorstep.
Kickstarter is one of the most established
platforms worldwide for this type of
crowdfunding. A Cypriot startup, Hegemonic
Project, has managed to raise €600,000 from
10,801 backers through Kickstarter!

16. The 4 types of crowdfunding
4. Donation-based
Crowdfunding
Individuals donate money to specific causes
and charities. With a donation, individuals
have the opportunity of effecting positive
change in their communities, indirectly
receiving non-financial benefits. An example
of such crowdfunding platform is GoFundMe.

17. Why raise capital with
crowdfunding?
Concept
Validation
A successful campaign is the perfect proof of
concept and validation of a potential market
for your product or service. Using the
momentum of a successful campaign, the
entrepreneur can later raise additional funds
from institutional investors.
Although raising money is usually the main goal of a
crowdfunding campaign, it also comes with additional
benefits to complement your funding round.

18. Why raise capital with
crowdfunding?
Regardless of the campaign’s outcome, your
business will gain significant exposure to
Crowdbase’s customer base. Intense marketing
efforts from both the company and the
crowdfunding platform to attract investments
work together to increase the company’s
exposure and visibility across its target market(s).
Marketing
Exposure

19. Why raise capital with
crowdfunding?
By presenting your business ideas in front
of thousands of potential investors,
customers, and community members, you
can source suggestions and feedback from
all kinds of different perspectives. Then, it
is up to you to evaluate the information and
update your plan accordingly.
Crowdsourcing
of Ideas

20. Why raise capital with
crowdfunding?
The crowdfunding platform will help you
centralise all information required for the
campaign that potential investors would need.
Having all investors gathered at a single contact
point eliminates the need for the entrepreneur to
contact, explain and send/receive documents to
multiple individuals about the project. You can
just redirect them to the campaign page where all
of the information they need is in, allowing you to
focus on running your business.
Efficiency

21. How Crowdbase works
Crowdfunding companies approach Crowdbase
with their proposal. Our team analyses each
application in detail and selects only the
companies it believes in. Our selection
methodology is simple; we do not accept
proposals that we wouldn’t invest in ourselves.
Screening

22. How Crowdbase works
Crowdbase performs its KYC checks and due
diligence process to ensure that, to the best of its
knowledge, all the information that the company
presents to investors is fair and truthful.
KYC & Due Diligence

23. How Crowdbase works
Crowdbase works alongside the fundraising
company to create a representative campaign
page, marketing material and roll-out strategy.
Campaigns are usually live for one to three months,
depending on the size of the fundraising round.
Campaign Launch

24. How Crowdbase works
While the campaign is open, anyone can invest
from as little as €100 in certain campaigns. The
funds are pooled together by Crowdbase until the
campaign closes successfully.
Pooling of Investments

25. How Crowdbase works
Once the campaign is successful, the company
issues the shares to the crowdfunders based on
their invested amount. Then, Crowdbase transfers
the collected funds to the company.
Investment Certificate

26. BONUS
TOPICS
04

27. Key Pitch Deck Components
Problem
Solution
Target Audience
Team
Competition
Financials
Use of Funds
Roadmap
Business Model
Market Size

28. Structuring your funding rounds
Make a plan
Make a long-term plan of your financing
needs until profitability.
Split into
phases
Split your financing needs into phases.
Do not make the mistake of raising all
financing needed until profitability from
the beginning.
Implement
your plan
Start your first round with enough funding
to complete Phase 1. Once Phase 1 is
completed, THEN go and acquire further
funding for Phase 2. Rinse and repeat.

29. Q&A

30. Thank you!
Want to learn more?
Contact us at:
frixos.larkos@crowdbase.eu
panayiotis.kakourides@crowdbase.eu
www.crowdbase.eu