Grow Vc Presentation 2009 10 15 Public


Published on

Grow VC and South East England Development Agency event about startup funding

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Grow Vc Presentation 2009 10 15 Public

  1. 1. Finance for Mobile and Internet Businesses<br />South East England Development Agency<br />October 15, 2009 <br />
  2. 2. 1. Developing GlobalInternet Businesses<br />Challenges and opportunities<br /><br />2<br />
  3. 3.<br />3<br />Background<br />The business environment of fast-growth companies has changed significantly over the past 15 years<br />Internet and web 2.0 <br />spreading funding model<br />global #1 in their niche<br />VC’s and business angels – typically local<br />Immediately global web and mobile companies look for global smart money, not limited to single country or state<br />New funding models are needed for early phase, but also to cover the needs of different kind of companies  not only one type risk money<br />
  4. 4. Web and mobile businesses:new retail business<br />The new chasm is to get attention and users<br />It is like to sell goods through supermarkets, except<br />No manufacturing costs<br />No logistical issues<br />The number of supermarkets and shelf space is in principle limitless<br />To be successful<br />Users must find your app directly, or<br />You must get good supermarkets to put your add to good shelf space, or<br />Both of these options<br />Smarter analytics and personalization can change this picture, but it happens slowly<br /><br />4<br />
  5. 5. Go-to-market<br />Listen to market<br />Test your ideas and models<br />Light beta  learn  develop<br />Fast development cycles<br />Use the latest development tools<br />Think your business model<br />It can be free apps, but you should have an idea to monetize<br />But don’t try to monetize too much too early<br />Many concepts are easy to copy  build your brand and position<br /><br />5<br />
  6. 6. Challenges of funding market<br />Web and mobile enterprises ARE NOT only new technology enterprises and capital efficiency is high<br />Open source, free tools, fast development<br />The challenge is to get users, not to implement a service<br />Funding requirements are changing<br />The role of early stage investors is very risky and often unprotected<br />Early phase funding is often too risky and expensive for VC organizations  moving towards more mature later phase deals<br />Only the market can often demonstrate the value of a new web or mobile company<br />No patented technology or other concrete IPR’s<br /><br />6<br />
  7. 7.<br />7<br />Web and mobile servicesfunding<br />Immediately global mobile apps companies look for global smart money, not limited to single country or state<br />Step-by-step funding<br />If you cannot start mobile apps business with less than $200k, you must re-think your approach<br />Make it – launch it – improve it<br />Successful companies don’t do it immediately right, but they use money carefully and are able to change course as they learn<br />New funding models are needed for early phase, but also to cover the needs of different kind of companies  not only one type risk money<br />Someone can make simple apps for personal living without world-class ambitious, and need some money to start<br />Another one what to create fast growing business with hundreds of apps<br />
  8. 8. 2. Grow VC platform forExperts and funding<br />The first global concept<br /><br />8<br />
  9. 9.<br />9<br />
  10. 10. Truly Global International Platform where investors, companies, and entrepreneurs can better meet each other and get tools to make transactions effectively<br />New type of investment funds<br />Grow VC has three revenue sources and Grow VC earning model depends on the success of start-ups<br />Includes several components:<br />Match-making tools (between funder and entrepreneur)<br />Software platform for the community<br />Legal, monitoring and reporting framework<br />Involvement of top experts in venture funding and industry verticals <br />Growth and funding enabling services <br />Future steps like investment pool and community recommendations for investments<br />Grow VC model<br /><br />10<br />
  11. 11.
  12. 12.
  13. 13.
  14. 14.
  15. 15.
  16. 16. Timetable<br />June 2009: Private Beta<br />Match making service for investors and start-up firms<br />Direct investments from private investors to companies<br />September 2009: Public Beta<br />open for all users, and some additional features like:<br />Service / work commitment investments<br />Additional tools to manage business plans and negotiations<br />Coming soon: Investment Pool<br />Totally new fund model<br />Anyone can be a Venture Capitalist<br />Standard templates to make investments in pre-defined locations<br /><br />16<br />
  17. 17. Legal services<br />Experienced corporate and investment lawyers for helping companies, investors, and entrepreneurs to make investment agreement and other needed paper work<br />Auditors<br />Top tier audit firms for due diligences, audit annual reports, and maintain reporting templates<br />Corporate finance and investment bank services<br />Top tier finance service companies for helping in investment process, help to find later phase funding, and make exit<br />Banks<br />Leading banks for managing transfers and payments and cash for investments<br />Grow VC Local Partnersexamples 1<br /><br />17<br />
  18. 18. Local Authorities, Incubators, Accelerators<br />Support companies or holding companies in investment process, find co-investors, and get business development services<br />Universities<br />Introducing university spin-off’s to real markets, to test traction. Build international co-operation and contacts<br />Event organizers<br />Extend the reach of events to international marketplace, introduce new startups and investors to network. Market events to Grow VC users for place to meet face to face<br />Grow VC Local Partnersexamples 2<br />18<br /><br />
  19. 19. Investment policy<br />All start-up companies are web or mobile companies <br />Company’s offering and products are or will be available and visible in web or mobile<br />All members have a right to evaluate and rate companies<br />The rating is directly used in the investment decisions<br />Investment money comes from private investors, entrepreneurs, and investment partners<br />Investor community also manages investment decisions<br />”Godfather” concept<br />Companies can take a godfather that increase their credibility and the godfather can be, for example, in the board after the investment<br />Gadfather can be e.g. an incubator, well know business angel, or well know expert in the business area in question<br /><br />19<br />
  20. 20. Grow VC position<br /><br />20<br />Investment decisions:<br /><ul><li>Private investors
  21. 21. Community of investors and entrepreneurs
  22. 22. Match-making
  23. 23. Service investments
  24. 24. New fund model
  25. 25. Support for investment process and materials</li></ul>Private Investors,e.g. angels<br />Start-upXXX<br />InvestmentPartners, e.g. VC<br />Start-upYYY<br />Entrepreneurs who looks forfunding<br />Start-upZZZ<br />Investment process:Managed by community<br />
  26. 26.<br />21<br />Summary<br />Grow VC International offers a new global service to enable early phase funding<br />Focus on web and mobile companies<br />Targeted at web and mobile companies that need $10,000 to $1,000,000 funding<br />Total transparency is essential for the service<br />Grow VC will offer three main services:<br />Match-making for business angels to fund investment opportunities and for startups to find private investors<br />Service investment match-making, professionals can invest their time and work in startup instead of dollars<br />“Social investment pool”, i.e. open investment fund that makes investments into startups based on its limited partners voting decisions<br />
  27. 27.<br />22<br />Would you like to manageVC money?<br />Available soon in laptop near you<br /><br />
  28. 28. You don’t have to be Steve Jobs to be an entrepreneur<br />You don’t have to be Bill Gates to be an investor<br />Everyone must start somewhere<br />Grow VC – The Place to Grow<br />Jouko Ahvenainenjouko@growvc.comTel (UK): +44 79 1248 1154Tel (US): +1 415 287 0854Skype: jahven<br /><br />Twitter: @growvc<br />