Future of funding & the virtual Silicon Valley

How to fix it? Crowd-funding and new funding models Jouko Ahvenainen May 11, 2010 Grow VC - Everyone funding startups

Grow VC - Everyone funding startups

When something doesn’t work WE MUST ACT 3 www.growvc.com Grow VC - Everyone funding startups

When people don’t like how something works… Grow VC - Everyone funding startups

its all about enabling …great things entrepreneurship can happen and the freedom of innovation Grow VC - Everyone funding startups

Current Venture Capital market Grow VC - Everyone funding startups

Venture Capital model is over 50 years old… Grow VC - Everyone funding startups

…and it’s going downhill Grow VC - Everyone funding startups

Market inefficiency  VC market includes $540 Million in transaction fees (~3 %, NVCA, 2010)  A few VC managers CANNOT find all the good companies  Business angel market is not effective  poor deal flow  based on local/personal networks  lack of information and tools Grow VC - Everyone funding startups

enabling a more vibrant market via peer-to-peer and crowd-funding Grow VC - Everyone funding startups

Vision The next Silicon Valley is not a location, it is a platform and community on the Internet Grow VC - Everyone funding startups

“;+) Virtual Silicon Valley Grow VC - Everyone funding startups

Mission Provide the platform, service tool kit and partner network for the virtual Silicon Valley Grow VC - Everyone funding startups

Grow VC - Everyone funding startups

global transparent open collaborative efficient Grow VC - Everyone funding startups

Networked solutions = new frameworks  Kiva.org transactions well over $100 Million in 4 years  Local Motors, Lego, NASA, Linux, TxtEagle, Zopa Grow VC - Everyone funding startups

There will be much more models, because IT IS NOT ONLY MONEY, BUT PEOPLE AND PASSION 17 www.growvc.com Grow VC - Everyone funding startups

Co-op was for creating together Co-op will again be for creating more together 18 www.growvc.com Grow VC - Everyone funding startups

Buying and owning 19 www.growvc.com Grow VC - Everyone funding startups

You can take money investments and build with money 20 www.growvc.com Grow VC - Everyone funding startups

Or you can take service investments and build with people 21 www.growvc.com Grow VC - Everyone funding startups

Crowd-funding AND HOW TO DO IT 22 www.growvc.com Grow VC - Everyone funding startups

23 www.growvc.com Grow VC - Everyone funding startups

P2P and Crowd-funding via Community Investments Grow VC - Everyone funding startups

Match-making and negotiation tools for private investments Grow VC - Everyone funding startups

Professional service investments Grow VC - Everyone funding startups

Grow VC will provide that networked solution  Freemium - Subscription based  NO transaction fees  Efficient due diligence  Standard term sheets, including partners in process Grow VC - Everyone funding startups

Create a connected global marketplace  Transparent global market place  Tools to find companies, make investments and manage investments  Together – Crowd, Business Angels and Institutional Investors Grow VC - Everyone funding startups

Open  Open API’s to develop applications and services  Open to develop new funding and business models Grow VC - Everyone funding startups

It is not only money  Help to build the team and other key contacts to start  Ecosystem and community to find partners, people and other actors  Support good things, help new activities and build their own future – people do not only invest to get ROI Grow VC - Everyone funding startups

more equal opportunities, enabling entrepreneurship and investors and accelerating innovation Grow VC - Everyone funding startups

Trust Economy Grow VC - Everyone funding startups

It can work only if IT CREATES VALUE 38 www.growvc.com Grow VC - Everyone funding startups

Value to All Parties Grow VC - Everyone funding startups

Start-ups  Community to find right type of investors around the world  Tools to manage the investment process  Market, develop and gain credibility to your company  Build your team  Build TRUST online Grow VC - Everyone funding startups

Investors  A place to find early phase companies around the world  Community peer-review indicators for interesting opportunities (micro investment)  Opportunity to diversify investments and risk  Build your TRUST online Grow VC - Everyone funding startups

Experts  Access to start-up companies and investors around the world  Potential customers that need investment, legal, business development and financial services  Follow trends and new ideas globally  Build your TRUST online Grow VC - Everyone funding startups

Excellent, but WHAT NEXT? 43 www.growvc.com Grow VC - Everyone funding startups

“You don’t have to be Steve Jobs, to be an entrepreneur” Grow VC - Everyone funding startups

”You don’t have to be Bill Gates to be an investor” Grow VC - Everyone funding startups

”Everyone must start somewhere” Grow VC - Everyone funding startups

When do YOU start...? Grow Venture Community Grow VC - Everyone funding startups

Jouko Ahvenainen jouko@growvc.com Tel (UK): +44 7889 833 165 Tel (HK): +852 8120 7854 Tel (US): +1 415 287 0854 Skype: jahven - Twitter:@jahven www.growvc.com Twitter: @growvc Podcast: “Grow VC” in iTunes Grow VC - Everyone funding startups

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Future of funding & the virtual Silicon Valley

by Grow VC on May 12, 2010

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Future of funding & the virtual Silicon Valley — Presentation Transcript