Crowd-Based Investment Models


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

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Crowd-Based Investment Models

  1. 1. Crowd-Based Investment Models! Paul Higgins Co-founder, Crowd Valley October 3rd, 2013 Crowdsourcing Week Summit London
  2. 2. Overview! •  Crowd Valley – Crowdfunding Infrastructure •  The Securities Crowdfunding Market •  Co-investment and Syndication Models •  Development of a Support Ecosystem @paulhigginz @crowdvalley
  3. 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. 4. Locations of Crowd Valley Customers!
  5. 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. 6. The Securities Crowdfunding Market! @paulhigginz @crowdvalley
  7. 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. 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. 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. 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. 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. 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. 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. 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. 15. Crowd-Based Investment Models! Paul Higgins @paulhigginz @crowdvalley