social venture capital
this is an excerpt.
contact details on the last page.

typical fund-based VC venue
Venture Capital is an investment venue designed for wealthy investors interested in private
companies. Venture Capital communicates with investors offline. Venture Capital does not
usually consult its investment choices with private investors.
• typically it is a limited liability company
new venture
• shares in a limited liability company may be purchased by
company
Fund
• Fund invests in shares („eligible assets”)
close-ended • Fund issues participation units
Fund • the minimum price of single unit = 40.000 EUR (local rules)
• Fund does not have the „European passport” (non-UCITS)
• units are offered privately & offline to no more then 100
private equity potential investors, or alternatively
investor • units are offered publicly & offline (as an initial public
offering) to an unlimited number of potential investors
2009 FundLord 2

transformation
This would be the end, if you were a typical Management Company, creating and managing
Funds. In such case, combined structure would be one of your products. However, I have
something else in mind.
transform
seed fund into seed capital for start-ups
capital
distribution channel into roadshow for start-ups
road- unit-holders into community
show
comm-
unity
2009 FundLord 3

combined fund-based VC venue
Venture Capital may be designed to suit needs of small investors, as well. Such
Venture Capital would communicate with investors online. Such Venture Capital may
consult investment targets with the community of investors.
• investment policy of close-ended Fund
- shares in limited liability companies are available
Combined investment target („eligible assets”)
Fund
• online transactional capacity of open-ended Fund
- no need for a written agreement to buy a unit
• investor profile of open-ended Fund
private equity
- no minimum price of unit investment
investor
- unlimited number of potential investors
- public offer without initial public offering
2009 FundLord
2009 FundLord 4

VC = community + start-ups
As an owner of VC you design benefits for all, make all players interested, create common
goals. This is possible. When you treat internet user as potential investor, startup as
potential investment target, and a website as a distribution channel.
the Fund appears to be Venture a flexible
Capital
… investment vehicle
interested exclusively
in start-ups
a platform for Combined
internet community Fund
selling units Comm- Internet
exclusively to unity startups a seed capital
community investment tool
total demo camp
2009 FundLord 5

who gets what ?
as an owner of a community as a seed capital receives:
receives:
• advertisements revenue
VC • investment opportunities
• professional reputation as a Fund Manager receives:
• new attractive venture • distribution & management fees
Combined
Fund
comm start-
-unity ups
receives: receives:
• community features, entertainment • seed capital
• unique investment opportunity • traffic & attention
2009 FundLord 6

traffic – basic conversions
Traffic is conversed into initial investment made by user. The initial investment made by
user is conversed into following investments of that user. Patronage of professional
venture capital company enhance the credibility of investment.
• how many visitors make the initial investment? conversion ratio I
user
- unique investment opportunity user
- unique entertainment feature user
- affordable price of initial investment
initial investor = INV
- fully online „first transaction” capacity
conversion ratio II
• how many investors make the following investment? INV
INV
- increasing valuation of investment increases the
INV
ratio of following user’s investments
- the offer is targeted to investors with ready cash following investments
between 100 – 40 000 EUR
2009 FundLord 7

3 VC’s FAQ
1. What if there will be less than 4000 initial investors or the traffic will
be less than 400 000 traffic in 2 months subscription period?
2. How will the Fund deal with redemptions of units?
3. What are the costs of creating and managing Fund?
2009 FundLord 8

1. The idea is applicable to Poland as of now, and will be applicable in
EU soon.
2. Investment fund requires offline operations. However, all of it may be
outsourced.
3. Investors community is a unique feature comparing to traditional VC.
4. Online distribution channel for VC activities is an unexplored and
unexploited territory.
5. Do you wish to know more? Please contact me.
presented to you:
– Marcin Grabski (linkedin.com)
- mgrabski@poczta.onet.pl