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Company building online through crowdfunding! Paul Higgins Co-founder, Crowd Valley March 16, 2013 Startup Camp Berlin
@paulhigginz @crowdvalley #scb13Overview!• Grow VC Group – the crowdsourced company• Crowdfunding in connected ecosystems• Where crowdfunding is going next
@paulhigginz @crowdvalley #scb13Background – Grow VC!• Global marketplace for startup funding• Founded 2009• “Everyone Funding Startups” – 2012 - $35M raised – 5,000+ startups – 190+ countries – Several raised rounds, first exits
@paulhigginz @crowdvalley #scb13Cintep (Australia): First $100,000 from equity crowdfunding!
@paulhigginz @crowdvalley #scb13Regulatory activities!• US Delegation in Transatlantic Economic Forum• Cooperation with Singapore Government Investment Company, UKTI, etc.• Crowdfunding Regulatory Intermediary Association (CFIRA)• Crowdfunding Professional Association (CFPA)• National Crowdfunding Association (NLCFA)• European Crowdfunding Network (ECN)• Cooperation with Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA)
@paulhigginz @crowdvalley #scb13H.R. 3606: Jumpstart Our Business Startups (JOBS Act)! Title II • Online Solicitation of Accredited Investors • This part opens possibility market, sell and trade private securities in market places • This part can have more important influence on later funding phases than the early phase crowdfunding Title III • Crowdfunding with non-accredited investors
@paulhigginz @crowdvalley #scb13Effective Dates of the JOBS Act!Title I (Creaon of EGCs; “IPO on ramp”) Largely eﬀecve on enforcement. Title II (Amendments to General Solicitaon/ The SEC had been scheduled to propose new rules by Adversing) 4 July but did not do so unl 29 August. Final rules not likely before end of 1st quarter 2013. Title III (Crowdfunding) The SEC is required to adopt new rules by 31 December but most expect these changes to be implement in mid/late 2013 Title IV (Increasing Reg A oﬀerings to up to $50 Not yet eﬀecve, date unclear. million) Title V (Increased thresholds for registraon with SEC) Largely eﬀecve on enforcement. Title VI (Increased thresholds for registraon with SEC Largely eﬀecve on enforcement. for banks)
@paulhigginz @crowdvalley #scb13Grow VC Group!• Launched spin-off Crowd Valley in 2012 to provide crowdfunding infrastructure: – Configurable platform – Shared business networks – Back Office financial services• Spun out other companies providing various services to support new online funding marketplaces – Grow Advisors – ChangeLab23 – Mutual Seed Fund• Developed a portfolio through global incubation services – 5 portfolio companies to date
@paulhigginz @crowdvalley #scb13Finance and Infrastructure Investment Services Portfolio
@paulhigginz @crowdvalley #scb13Crowdsourcing a company!• 10,000 people expressed an interest in getting involved with Grow VC• Global network of 100+ associates• Culture of openness, accountability, honesty• Rewards proportional to commitment• No recruiters• No interviews• No external funding
@paulhigginz @crowdvalley #scb13Work and resource investments!
@paulhigginz @crowdvalley #scb13Crowdfunding platforms can provide…!• Validation of an idea• Relationships with new potential customers• Matchmaking between investors and entrepreneurs• Efficient access to capital• Standardised documentation, e.g. Shareholder Purchase Agreements• Access to talent
@paulhigginz @crowdvalley #scb13Investment crowdfunding works: the proof! Source: thecrowdcafe.com
@paulhigginz @crowdvalley #scb13Where crowdfunding is today! Source: crowdsourcing.org
@paulhigginz @crowdvalley #scb13Crowdfunding must be part of existing ecosystems!• Crowdfunding does not happen in a vacuum• “Invest in Lines, not Dots” – venture capitalist, Mark Suster: Images from bothsidesofthetable.com/2010/11/15/invest-in-lines-not-dots
@paulhigginz @crowdvalley #scb13Building an entrepreneurial ecosystem in your city!Funding platformsAngel networksInvestor pitch eventsGovernment programsAcceleratorsIncubatorsUniversities
@paulhigginz @crowdvalley #scb13Find your natural constituency! Source: crowdsourcing.org
@paulhigginz @crowdvalley #scb13Crowdfunding is about more than just startups…!• Expanding a mezzanine fund for Oil & Gas investments in Rio de Janeiro• Reducing risk by ‘leading’ rounds alongside new angel investors in Moscow• Doctors financing R&D for new medical device companies in Sydney• Alumni supporting their university’s entrepreneurship in San Francisco• Offering debt opportunities based on real estate in London• Connecting traders of precious stones with professional investors in New York
@paulhigginz @crowdvalley #scb13Where crowdfunding is going next…!• Powerful and informative provider of data• Efficient marketplaces in diverse sectors• Integration with the rest of the ecosystem – Universities – Incubators – Angel investors – VCs – Institutional funds• Co-investment models – Active – Passive
Company building online through crowdfunding! Paul Higgins @paulhigginz @crowdvalley firstname.lastname@example.org
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Crowd Valley co-founder, Paul Higgins' presentation at Startup Camp Berlin, March 16th 2013