Crowdfunding for founders network in San Francisco


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Presentation about basics, regulation and models of crowdfunding and p2p finance, and some Grow VC Group history, to founders network members in San Francisco.

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Crowdfunding for founders network in San Francisco

  1. 1. From startup crowdfunding to finance sector disruption founders network April 9, 2014 – San Francisco - Jouko Ahvenainen Grow VC Group ++ ++ @growvc ++ MARKETS – ASSETS – CROWD ++ Copyrights © Grow VC Group 2014
  2. 2. Copyrights © Grow VC Group 2014 Jouko Ahvenainen ++ Corporates: Entrepreneur: Other Activities: Transatlantic Economic Council TOP 100 TOP 15
  3. 3. Finance and Services Infrastructure Consulting & Professional Services Grow VC Group ++ Copyrights © Grow VC Group 2014 Hong Kong - London - New York - San Francisco - Sao Paolo The Grow VC Group is a worldwide pioneer and leader in the crowd investing, peer-to-peer and online investment market.
  4. 4. Copyrights © Grow VC Group 2014 Market places in our portfolio ++
  5. 5. Copyrights © Grow VC Group 2014 #1 market place infrastructure ++ Technical platform, services like investor background check, investment escrow accounts, due diligence services, credit check, transaction settlement, investor communications
  6. 6. Finance to a new era ++ Copyrights © Grow VC Group 2014
  7. 7. WE HAVE A DREAM: more equal opportunities, where entrepreneurs and private investors unite to accelerate innovation
  8. 8. Copyrights © Grow VC Group 2014 Short history ++ •  We were probably the first equity crowdfunding service, launched the startup crowdfunding in 2009 –  The regulatory environment was very complex then, and it was the main reason not to start in the US. •  We have done a lot of pioneer work in the market and also work finance regulators e.g. in the US, UK, EU and Singapore •  With new innovations it is always difficult to predict the timing –  We decided that our model is to survive and adapt until the market really takes off •  Important strategic review in May 2012 à from startup crowdfunding only to Grow VC Group –  Grow VC Group is more like a holding company that have majority share in some key ecosystem and infrastructure companies and minority in vertical oriented crowdfunding or p2p market places typically with a partner that has strong competence in the vertical in question •  Crowdfunding concept has really grown from startups to all kind of securities and assets •  Also institutional investors are coming more interested, i.e. diversify their portfolio through automated co-investing and co-lending platforms, and e.g. avoid the costs of funds.
  9. 9. Copyrights © Grow VC Group 2014 Internet has killed longtail in finance ++ •  In many industries the Internet has created and amplified the longtail business –  Google for advertising, eBay for trading, and services for music, books, videos •  In finance the influence has been almost opposite, when the Internet has killed traditional market makers (e.g. the US IPO market marketing and underwriting) due to regulation and machine trading (speculation, not long position, oriented) –  Together this has caused e.g. globally poor IPO market: the pipe from seed funding to IPO is broken •  Crowd investing (equity and lending models) are finally bringing the positive Internet change for finance, and it is not only for early phase startup market –  We already work with market places for companies in different phases, content funding, commodities, real estate, energy sources
  10. 10. Copyrights © Grow VC Group 2014 Internet has been a distribution channel ++
  11. 11. Copyrights © Grow VC Group 2014 Disruption now – global virtual market places++
  12. 12. Copyrights © Grow VC Group 2014 Go back to the idea of stock market ++
  13. 13. Copyrights © Grow VC Group 2014 Create a new effective finance retail market ++ Crowd investing Market Place P2P Lending Companies / Assets Market Places Investors / resources
  14. 14. Copyrights © Grow VC Group 2014 New regulation is coming ++ Title  I  (Crea'on  of  EGCs;  “IPO  on  ramp”)   Largely  effec've  on  enforcement.     Title  II  (Amendments  to  General   Solicita'on/Adver'sing)   Effec've  since  September  2013.   Title  III  (Crowdfunding,  i.e.  investments   from  non-­‐accredited  investors)   The  SEC  collected  comments  by  January   2014,  now  SEC  processes  the  comments,   expected  to  be  effec've  in  6  to  9.   Title  IV  (Increasing  Reg  A  offerings  to  up  to   $50  million)   Not  yet  effec've,  date  unclear.   Title  V  (Increased  thresholds  for   registra'on  with  SEC)   Largely  effec've  on  enforcement.   Title  VI  (Increased  thresholds  for   registra'on  with  SEC  for  banks)   Largely  effec've  on  enforcement.     Read more:
  15. 15. Copyrights © Grow VC Group 2014 Opportunity for traditional finance companies too ++ 1. Funding round or loan application • A company opens a funding round or apply a loan 2. Crowd investing or p2p lending • Crowd, i.e. ordinary people, can offer an investment or loan, and if enough money available, the company gets money 3. Co- investment or co-lending • A bank or investment company can join to a deal, i.e. make co-investment or participate the loan
  16. 16. §" § " §" §" §" Read more ++
  17. 17. Jouko Ahvenainen +1 646 363 6664 (US) +44 7889 833 165 (UK) Grow VC Group ++ ++ @growvc ++ Slideshare: Grow VC MARKETS ASSETS CROWD