Presented at the Crowdsourcing Week London Summit, October 3, 2013 by Paul Higgins of Crowdvalley. For more information, visit http://crowdsourcingweek.com.

1. Crowd-Based Investment Models!
Paul Higgins
Co-founder, Crowd Valley
October 3rd, 2013
Crowdsourcing Week Summit London

2. Overview!
• Crowd Valley – Crowdfunding Infrastructure
• The Securities Crowdfunding Market
• Co-investment and Syndication Models
• Development of a Support Ecosystem
@paulhigginz @crowdvalley

3. Crowd Valley – Crowdfunding Infrastructure!
• Technology and back-office service provider to online crowdfunding and
peer-to-peer marketplaces
• Spin-off from Grow VC Group in 2012
• US company headquartered in San Francisco
@paulhigginz @crowdvalley

4. Locations of Crowd Valley Customers!

5. Sectors of Crowd Valley Customers!
Early-­‐Stage
Tech
53%
Real
Estate
21%
Late-­‐Stage
/
High-­‐Tech
/
IP
10%
Energy
/
Natural
Resources
11%
Infrastructure
Assets
5%

6. The Securities Crowdfunding Market!
@paulhigginz @crowdvalley

7. Broad interest in entering the new funding market!
@paulhigginz @crowdvalley
New
EnDty
32%
Broker-­‐Dealer
21%
Hedge
Fund
/
PE
Fund
8%
Incubator
7%
Angel
Network
7%
Crowdfunding
PlaNorm
6%
University
6%
Other
13%
Interest
by
company
type

8. Opportunities for authorized partners to support!
@paulhigginz @crowdvalley
Will
work
with
an
authorized
partner
48%
Already
authorized
29%
Will
apply
for
authorizaDon
23%
Interest
by
regulatory
status

9. Most interest has directly followed regulatory activities!
@paulhigginz @crowdvalley
North
America
47%
Europe
26%
Asia
12%
Africa
8%
South
America
5%
Oceania
2%
Interest
by
loca2on

10. Most interest has directly followed regulatory activities!
@paulhigginz @crowdvalley
0%
5%
10%
15%
20%
25%
30%
35%
40%
United
States
United
Kingdom
Italy
Canada
India
France
Spain
Germany
Interest
by
country

11. Crowdfunding goes beyond startups!
• Expanding a mezzanine fund for Oil & Gas investments in Rio de Janeiro
• Providing over-collateralized, real US asset-backed loans online to retail
investors in San Francisco
• Doctors financing R&D for new medical device companies in Sydney
• Alumni supporting their university’s entrepreneurship in Seattle
• Offering investment opportunities in real estate in London
• Connecting traders of precious stones with professional investors in New
York
• Facilitating access to new asset classes for hedge funds and family offices
in Bahrain
@paulhigginz @crowdvalley

12. Co-investment and syndication models!
• It is important to get different funding models to work together
– Transparent models, fair agreements and opportunities
– Market value and market dynamics
– Continuity for future funding rounds
• Different models are suitable for different sectors
– Non-securities models
– Equity financing
– Debt models
• There can be several co-investment models; passive or active
• It is important to build co-operation with traditional investors VC, PE firms
and syndicated investor groups
@paulhigginz @crowdvalley

13. Co-investment models working with online platforms!
@paulhigginz @crowdvalley
Equity Crowdfunding Portal
Companies
Entrepreneurs
Marketplace
Investors
Accredited US
investors
(JOBS Act Title II)
Aggregated FundFund
Offshore investment vehicle
Global
investors
Limited Partner
Private Equity or
Hedge Fund as
co-investor
Angel
Syndicates

14. Development of a support ecosystem!
• Front-end and back-end technology and services
• Investor accreditation
• Online payments
• Escrow and custodial services
• Credit and background checks
• Due diligence and valuation services
• Online documentation filing and investor relations
• Funding analytics
@paulhigginz @crowdvalley

15. Crowd-Based Investment Models!
Paul Higgins
@paulhigginz @crowdvalley
paul@crowdvalley.com