Entrepreneurship and GrowVC - Crowd-funding Platform


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Satish Kataria on Entrepreneurship, start-up life cycle, different funding models for start-ups and about GrowVC the world's first and fastest growing crowd-funding platform at 2010 ThoughtBerg's Campus Ambassadors boot-camp

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Entrepreneurship and GrowVC - Crowd-funding Platform

  1. 1. The critical ingredient is getting off your butt and doing something. It's as simple as that. A lot of people have ideas, but there are few who decide to do something about them now. Not tomorrow. Not next week. But today. The true entrepreneur is a doer, not a dreamer.“ - Nolan Bushnell, founder of Atari and Chuck E. Cheese's "If it really was a no-brainer to make it on your own in business there'd be millions of no-brained, harebrained, and otherwise dubiously brained individuals quitting their day jobs and hanging out their own shingles. Nobody would be left to round out the workforce and execute the business plan.“ - Bill Rancic, winner on Donald Trump's "The Apprentice" "I had to make my own living and my own opportunity! But I made it! Don't sit down and wait for the opportunities to come. Get up and make them!“ - Madam C.J. Walker, creator of a popular line of African-American hair care products and America's first black female millionaire
  2. 2. What makes a successful entrepreneur • Planning • Team • Financial prudence • Adaptability • Sustenance • Love
  3. 3. Funding stages
  4. 4. Funding stages •More than 330 VC/PE funds active in India •Total investments made in 2008-09 were about USD 4.2 Billion over 250 deals •Over USD 5.7 Billion of funds raised by around 24 funds •Early stage investments account for about 2% of total investments made
  5. 5. Angel Funding facts Global Facts • USD 8.5 Billion Annual Investment • 1,25,000 Angel Investors • Investment in over 25,500 new business ventures • 25% - Healthcare/medical devices ; 20% Biotech ; 12% software India facts • Hardly 1000 angel investors • Early stage investments would hardly be USD 20 – 22 Million • Number of investments would be 45 – 65 per annum • Most of investments are still in technology – with healthcare and education slowly catching up
  6. 6. Start - Ups Money Passion People Around 400 - 600 existing Indian angel investors Millions of Indians Bringing the Power of Communities and Crowds to support start-ups
  7. 7. • 50 years old model – facing downslide • Only 1% of PE Investments in India route to ‘Early-Stage’ • Out of 1000 ideas with Indian Angel Network & Mumbai Angels – only 47 got funded • In US – 3,50,000 angel investors invest USD 60 Billion in 50,000 new businesses every year
  9. 9. Grow VC International • Founded in February 2010 by a group of global equity and finance experts in order to ‘democratise’ funding and support for start-ups • A ‘crowd-funding’ model which brings start-ups, experts, investors and various other entities – working in this domain – together on a single platform and empower them with tools and expert advise to interact and support in self-sustaining manner. Users on Grow VC International • More than 6,000 registered members from over 100 countries • More than 1,000 start-ups hooked up on platform • Funder/start-up ratio : 55:45 • Community Investment Pool : Approx USD 20 Million
  10. 10. How Grow VC Works Start - Ups Investors Experts GROW VC 75%* forms community investment pool25% Admin charge to Grow VC Investee Company 1 Investee Company 2 FailureSuccess Investment gains 75%* divided amongst successful investors on ranking basis 25% goes to Grow VC Subscription Fees (USD 20 to USD 140 per month) No Admin/Mgmt fees on direct investments * Subject to appropriate tax deductions
  11. 11. What it brings for start-up START - UP Invest ! A start-up can actually invest in other start-ups ! Make your Business Plan and Valuate yourself! • Profile listing requires setting clear business plan • It also requires making clear offering Funding Offering Service Expert Offering • Evaluate with others and see what’s working • Comments from Investors and experts strengthen the idea with each passing day Get Investors ! • Direct Investments • ‘Crowd Investors’ • USD 5 Million Grow VC – IndiaCo Ventures Co-Investment Fund • Supported by Indian Angel Network…and more on way Get Talent & Experts! • Make ‘Service Investment’ offers • Search different category of experts • First platform for various service providers wanting to offer services to start-ups • Nurture Talent
  12. 12. When a start-up registers… • Details required – Brief profile of what your start-up intends to do – People, location details – Why are we so good? – Our markets – Customers (current and potential) – Customer problem – Competitive landscape – Partner plan – Business and revenue model – Sales and marketing strategy – Affiliate plan – What funding you require and you plan to offer in return – Service offers to experts
  13. 13. How Grow VC helps Investors Existing Infrastructure With GrowVC Preferably have to be part of Angel Network – to be apprised of deal flow and use group dynamics to initially screen ideas • Access to strong continuous deal flow – irrespective of geographical or sector limitations • Access to detailed term sheets, liberty to contact start-ups, access to preferred rating by other users – are some strong investment tools which can help them to decide investments • Can open doors to host of new category of investors – who so far are not aware of this investment category – thus enhancing the so-called ‘funnel’ • Might even open doors for ‘Venture Funds’ – given expert investment base • Even the subscription charges end up being part of Investment pool only May not be able to devote too much personal time • Can select and invite host of experts to manage investments on their behalf
  14. 14. How Grow VC helps Experts Existing Infrastructure With GrowVC Limited or no exposure to start-up domain • Can participate in the entrepreneurial drive – even by investing ‘sweat equity’ or ‘expertise’ • Access to strong deal of strong future potential clients • Access to host of investors, who might now employ their services for investment management
  15. 15. How Grow VC helps Indian start-up space Existing Infrastructure With GrowVC Disparate efforts by various entities • First-ever platform which can bring everyone face-to-face, all together Limited funnel of investors and funds • Automatically creates an Investment Pool – which can support potential start- ups • Will open door to new range of investors and experts • Brings expert investment management and transparency to forefront In short, a possible ‘disruptive’ platform – which is endeavoring to put all start-up entities on a single platform
  16. 16. STAY HUNGRY, STAY FOOLISH “ Hope is your most powerful weapon. Self-Confidence is your greatest asset” Dhirubhai Ambani
  17. 17. Discussions • www.india.growvc.com • www.springboardventures.co.in Satish Kataria +91-9967972553 Managing Director Springboard Ventures Private Limited (Indian partners to GrowVC) Satish@springboardventures.co.in