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Mobile World Congress Grow VC Emerging Funding Models
 

Mobile World Congress Grow VC Emerging Funding Models

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Grow VC Group presentation about emerging funding models for Mobile World Congress 2013. Grow VC build new funding models based on peer-to-peer investing and co-investments with traditional models.

Grow VC Group presentation about emerging funding models for Mobile World Congress 2013. Grow VC build new funding models based on peer-to-peer investing and co-investments with traditional models.

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    Mobile World Congress Grow VC Emerging Funding Models Mobile World Congress Grow VC Emerging Funding Models Presentation Transcript

    • Grow VC Group ++ www.growvcgroup.com ++ @growvcgroup ++ Innovating Investing ++Mobile World Congress – Emerging Funding ModelsJouko Ahvenainen / February 28, 2013 Copyrights © Grow VC Group 2013
    • Grow VC Group ++ Copyrights © Grow VC Group 2013
    • Group History ++•  2009 Grow VC Company was created o  to build #1 global equity crowdfunding online platform under www.growvc.com domain•  2010 growvc.com service was launched o  pioneer in equity crowdfunding•  2011 Company expanded o  team of 50+ people spread across the globe o  develop the business globally within the equity crowdfunding market segment. o  online platform was developed extensively to meet global and local startup ecosystem requirements and startup lifecycle thinking Copyrights © Grow VC Group 2013
    • Group History ++•  2012 Grow VC to Grow VC Group o  Grow VC Networks model was launched as public BETA. o  along with the JOBS Act passing in the US adding clarity to emerging market, a bigger strategy switch was done to add focus on all of the company activities o  the company was restructured to Grow VC Group with several different business units, companies and operational teams•  2013 Acting as Grow VC Group with independent units o  all units focus on executing their own business in their specific business area o  Grow VC Group reputation and synergies between units are utilized where relevant Copyrights © Grow VC Group 2013
    • Entities ++Finance and Services Infrastructure Investment Portfolio Copyrights © Grow VC Group 2013
    • Core Businesses 2013 ++Grow VC Group Crowd ValleyStrategic partnerships and group Turn key solution to start investment portfolio management crowdfunding for any assets, equity or lending www.crowdvalley.comwww.growvcgroup.com growvc.comGrow Advisors Startup ecosystem platform and leading global marketplace to investConsulting and investment bank type money or work in early phase startups services for crowdfunding ecosystem www.growvc.com www.growadvisors.com ChangeLab23 Design & build digital product, whereMutual Seed Fund customer experience is at the heartCrowdfunding co-investment fund, www.changelab23.com works with many crowdfunding services www.mutualseedfund.com Copyrights © Grow VC Group 2013
    • 3rd Parties can start crowd funding p2p investment market place on our platform ++Full solution: investment community, tools, payments,backoffice and reporting – set up in a minute Copyrights © Grow VC Group 2013
    • Building Crowd Funding Globally ++§  The team has invested three years into the crowdfunding industry globally, and positioned itself in the ecosystem globally "§  The team has been part of the US Delegation in Transatlantic Economic Forum, had cooperation with Singapore Government Investment Company, "§  UK Trade and Investment, and is a founding member of Crowdfunding Regulatory Intermediary Association (CFIRA), Crowdfunding Professional Association (CFPA), National Crowdfunding Association (NLCFA), European Crowdfunding Network, cooperation with Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) "§  We have a jumpstart on any direct competition with 400+ existing business customers, ranging from small communities to large networks of communities like the World Bank " Copyrights © Grow VC Group 2013
    • Case: Cintep, Australia ++First $100,000 from crowdfunding, excellent progress since then" Copyrights © Grow VC Group 2013
    • Case: The Tip Card, Australia ++Money and resources (Work Investments) thru crowdfunding" Copyrights © Grow VC Group 2013
    • Startup funding ++ Copyrights © Grow VC Group 2013
    • 10 Points about startup funding ++1.  Since 2008 it has been especially difficult to raise money to VC funds2.  Traditional VC funds starts with approximately USD 2M investments3.  Basically all countries look for new growth and see that traditional industry is not enough4.  When VC’s have had issues to raise more money, it also cause issues to fund companies that are already in their portfolio5.  Capital efficiency has increased, i.e. startups can start with smaller capital6.  Many governments and local organizations invest to build better startup ecosystems locally and also want to participate in funding or attract investors to operate locally7.  Crowd funding and ‘open market places’ are emerging8.  There are also more local business angel networks, and e.g. governments have created some tax schemas to attract more people to invest in startups9.  There are several new models to get money, like crowd funding, angels, local support, and incubator programs. But issue is also, how to get these to work together10.  Many startups focus very much towards the US, when it has offered the best funding and exit market. At the same time emerging markets could offer e.g. easier routes to make revenue and organic growth. Copyrights © Grow VC Group 2013
    • New finance regulation ++ Copyrights © Grow VC Group 2013
    • Peer-to-peerLess fat middle-men Copyrights © Grow VC Group 2013
    • global transparent opencollaborative efficient scalable Copyrights © Grow VC Group 2013
    • A new language:Read & write, participatory, conversational:markets are conversations, marketing is aconversation, business is a social science! Copyrights © Grow VC Group 2013
    • Co-creation + networkedeconomics + communities ofinterest can be and are,proven & powerful platformsand processes to stimulateinnovation and commerce Copyrights © Grow VC Group 2013
    • A cultural challenge …for corporates…for governments…for human beings Copyrights © Grow VC Group 2013
    • To resist will lead to financial andorganizational exhaustion Copyrights © Grow VC Group 2013
    • Startup funding ++ Copyrights © Grow VC Group 2013
    • Crowd Funding and Ecosystem ++•  It is typically important to get crowd funding to work with other investment models o  Get other investors and money o  Help to manage investments o  Continuity for the next funding rounds•  Investors can also offer other value added•  There can be several co-investment models, passive or active•  It is typically important to build co-operation with business angels, VC’s and incubators Copyrights © Grow VC Group 2013
    • Several Investment Models ++1.  Direct investments o  An investor invest directly in a company, become a shareholder, company can have hundreds of small shareholders2.  Investments through an instrument o  An investor can select a company he/she invest in, but the actual investment is done by an investment company that aggregate all investments together, the investment company is the shareholder3.  Crowd funding of investment instruments o  Crowd funding model is used to raise capital in a fund and the fund makes investments4.  Co-investment models o  Different models to make co-investments with crowdfunding Copyrights © Grow VC Group 2013
    • Grow VC co-investment models ++•  Co-investors can be e.g. business angels, VC’s, or funds1.  Co-investment partners a.  Partners follow p2p, typically no automated investments, but use crowd to filter investment opportunities b.  Leading investors offers cases to crowd, and crowd follow them2.  Syndicate models o  Can have two models as above, but formalized co-investment models with pre-defined models, shares and responsibilities3.  Built-in investment instruments o  Investment instruments that are built to work with the p2p investments, e.g. automated co-investment o  The instruments can be like traditional funds or modified versions Copyrights © Grow VC Group 2013
    • Mutual Seed Fund ++•  Grow VC is building a special co-investment instruments •  The instrument and concept is built especially for the p2p co- invesments•  The instruments are built to work with p2p models, crowd can filter cases, or p2p bring leverage to fund investments•  Investors can join the instrument online, by defining their investment criteria like total sum and the number of companies (diversification)•  The instrument is launched in six months Copyrights © Grow VC Group 2013
    • Future ++•  Peer-to-peer is here to stay, equity crowd funding is just starting to grow•  P2P is not to replace all other models or solution for needs•  It is crucial to build an ecosystem where different investment models work better together, including p2p – new solutions are needed•  P2P is not only for startup funding, it will have influence on the whole finance sector to make it more effective Copyrights © Grow VC Group 2013
    • “You don’t have to be Steve Jobs, to be an entrepreneur” Copyrights © Grow VC Group 2013
    • ”You don’t have to be Bill Gates to be an investor” Copyrights © Grow VC Group 2013
    • ”Everyone must start somewhere” Copyrights © Grow VC Group 2013
    • Jouko Ahvenainen jouko@growvc.com +44 7889 833 165 (UK)Innovating +1 646 363 6664 (US) Grow VC Group ++Investing www.growvcgroup.com ++ @growvcgroup ++ Slideshare: Grow VC