Crowdfunding in Europe!Paul HigginsCo-founder, Crowd ValleyMay 25th, 2013Gründer- und UnternehmerforumBerlin
Overview!•  Grow VC Group – innovating investing•  Crowdfunding in connected ecosystems•  Crowdfunding in Europe today•  W...
Background – Grow VC!•  Global marketplace for startup funding•  Founded 2009•  “Everyone Funding Startups”–  2012 - $35M ...
Cintep (Australia): First $100,000 from equity crowdfunding!@paulhigginz @crowdvalley
Regulatory activities!•  US Delegation in Transatlantic Economic Forum•  Cooperation with Singapore Government Investment ...
Title II•  Online Solicitation of AccreditedInvestors•  This part opens possibility market, selland trade private securiti...
Grow VC Group!•  Launched spin-off Crowd Valley in 2012 to provide crowdfundinginfrastructure:–  Configurable platform–  S...
Finance andServicesInfrastructure InvestmentPortfolio@paulhigginz @crowdvalley
Crowdfunding platforms can provide…!•  Validation of an idea•  Relationships with new potential customers•  Matchmaking be...
Equity crowdfunding has now provided over $200m"!0	   20	   40	   60	   80	   100	   120	   140	   160	   180	   200	  Fun...
Where crowdfunding is today!Source: crowdsourcing.org@paulhigginz @crowdvalley
Crowdfunding must be part of existing ecosystems!•  Crowdfunding does not happen in a vacuum•  “Invest in Lines, not Dots”...
Building an entrepreneurial ecosystem in your city!UniversitiesIncubatorsAcceleratorsGovernment programsInvestor pitch eve...
A ’typical’ startup path!UniversitiesIncubatorsAcceleratorsGovernment programsInvestor pitch eventsAngel networksFunding p...
The investor’s viewpoint!@paulhigginz @crowdvalley
Finding your natural constituency!Source: crowdsourcing.org@paulhigginz @crowdvalley
Crowdfunding in Europe today!•  New regulations in Italy–  The CONSOB regulation implements Law n. 221, the so-called Decr...
Equity crowdfunding success in consumer internet!0%	   10%	   20%	   30%	   40%	   50%	   60%	   70%	   80%	   90%	   100%...
Rewards crowdfunding success in music, film, theatre!0%	   10%	   20%	   30%	   40%	   50%	   60%	   70%	   80%	   90%	   1...
Median equity crowdfunding raise for 11% equity!0	  2	  4	  6	  8	  10	  12	  14	  1	   2	   3	   4	   5	   6	   7	   8	  ...
0	  50	  100	  150	  200	  250	  300	  350	  400	  450	  0	   50,000	   100,000	   150,000	   200,000	   250,000	   300,00...
Equity crowdfunding goes beyond startups!•  Expanding a mezzanine fund for Oil & Gas investments in Rio de Janeiro•  Provi...
Crowd Valley: Your Crowdfunding Network!@paulhigginz @crowdvalley
Crowd Valley: Your Logos, Branding, Rules!@paulhigginz @crowdvalley
Crowd Valley: Your Look & Feel!@paulhigginz @crowdvalley
Where crowdfunding is going next…!•  Powerful and informative provider of data•  Efficient marketplaces in diverse sectors...
Crowdfunding in Europe!Paul Higgins@paulhigginz @crowdvalleypaul@crowdvalley.com
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Crowdfunding in europe

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Crowd Valley COO Paul Higgins facilitated a workshop on crowdfunding in Berlin on May 25th with a group of entrepreneurs, investors, and finance professionals at the fifth SDW Gründer- und Unternehmerforum conference.

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Crowdfunding in europe

  1. 1. Crowdfunding in Europe!Paul HigginsCo-founder, Crowd ValleyMay 25th, 2013Gründer- und UnternehmerforumBerlin
  2. 2. Overview!•  Grow VC Group – innovating investing•  Crowdfunding in connected ecosystems•  Crowdfunding in Europe today•  Where crowdfunding is going next@paulhigginz @crowdvalley
  3. 3. Background – 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
  4. 4. Cintep (Australia): First $100,000 from equity crowdfunding!@paulhigginz @crowdvalley
  5. 5. Regulatory 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 FinancialIndustry Regulatory Authority (FINRA)@paulhigginz @crowdvalley
  6. 6. Title II•  Online Solicitation of AccreditedInvestors•  This part opens possibility market, selland trade private securities in marketplaces•  This part can have more importantinfluence on later funding phases thanthe early phase crowdfundingTitle III•  Crowdfunding with non-accreditedinvestorsH.R. 3606: Jumpstart Our Business Startups (JOBS Act)!@paulhigginz @crowdvalley
  7. 7. Grow VC Group!•  Launched spin-off Crowd Valley in 2012 to provide crowdfundinginfrastructure:–  Configurable platform–  Shared business networks–  Back Office financial services•  Spun out other companies providing various services to support new onlinefunding marketplaces–  Grow Advisors–  ChangeLab23–  Mutual Seed Fund•  Developed a portfolio through global incubation services–  6 portfolio companies to date@paulhigginz @crowdvalley
  8. 8. Finance andServicesInfrastructure InvestmentPortfolio@paulhigginz @crowdvalley
  9. 9. Crowdfunding 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
  10. 10. Equity crowdfunding has now provided over $200m"!0   20   40   60   80   100   120   140   160   180   200  Funds  raised  /  $m  Australian  Small  Business  Offerings  Board   Grow  VC   CircleUp   CrowdCube   Seedrs   Symid  Data from www.thecrowdcafe.com@paulhigginz @crowdvalley
  11. 11. Where crowdfunding is today!Source: crowdsourcing.org@paulhigginz @crowdvalley
  12. 12. Crowdfunding 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
  13. 13. Building an entrepreneurial ecosystem in your city!UniversitiesIncubatorsAcceleratorsGovernment programsInvestor pitch eventsAngel networksFunding platforms@paulhigginz @crowdvalley
  14. 14. A ’typical’ startup path!UniversitiesIncubatorsAcceleratorsGovernment programsInvestor pitch eventsAngel networksFunding platforms@paulhigginz @crowdvalley
  15. 15. The investor’s viewpoint!@paulhigginz @crowdvalley
  16. 16. Finding your natural constituency!Source: crowdsourcing.org@paulhigginz @crowdvalley
  17. 17. Crowdfunding in Europe today!•  New regulations in Italy–  The CONSOB regulation implements Law n. 221, the so-called DecreeGrowth–  Currently only available to “innovative startups”, which have auniversity researcher in their team and an institutional investor tosubscribe to at least 5% of the capital required•  Many platforms around Europe with various funding models, some alreadyauthorised by financial regulators–  CrowdCube (UK)–  Seedrs (UK)–  Companisto (Germany)–  Symbid (Netherlands)–  Siamosoci (Italy)–  Etc.@paulhigginz @crowdvalley
  18. 18. Equity crowdfunding success in consumer internet!0%   10%   20%   30%   40%   50%   60%   70%   80%   90%   100%  Propor%on  of  all  successful  equity  fundraises  in  Europe  by  sector  Data from www.thecrowdcafe.com@paulhigginz @crowdvalley
  19. 19. Rewards crowdfunding success in music, film, theatre!0%   10%   20%   30%   40%   50%   60%   70%   80%   90%   100%  Propor%on  of  all  successful  Kickstarter  fundraises  by  sector  Data from www.kickstarter.com@paulhigginz @crowdvalley
  20. 20. Median equity crowdfunding raise for 11% equity!0  2  4  6  8  10  12  14  1   2   3   4   5   6   7   8   9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  38  39  40  41  42  43  44  45  46  47  48  49  50  51  52  53  Number  of  equity  fundraises  in  Europe  Amount  of  equity  given  to  crowdfunding  investors  /  %  11%Data from www.thecrowdcafe.com@paulhigginz @crowdvalley
  21. 21. 0  50  100  150  200  250  300  350  400  450  0   50,000   100,000   150,000   200,000   250,000   300,000   350,000   400,000   450,000  No.  of    Investors  Funds  raised    through  crowdfunding  for  equity  in  Europe  /  $  Average raise of $111,000 from 80 investors (in 46 days)!80$111kData from www.thecrowdcafe.com@paulhigginz @crowdvalley
  22. 22. Equity crowdfunding goes beyond startups!•  Expanding a mezzanine fund for Oil & Gas investments in Rio de Janeiro•  Providing liquidity for existing shareholders in high-tech companies inAuckland•  Doctors financing R&D for new medical device companies in Sydney•  Alumni supporting their university’s entrepreneurship in San Francisco•  Offering investment opportunities in real estate in London•  Connecting traders of precious stones with professional investors in NewYork@paulhigginz @crowdvalley
  23. 23. Crowd Valley: Your Crowdfunding Network!@paulhigginz @crowdvalley
  24. 24. Crowd Valley: Your Logos, Branding, Rules!@paulhigginz @crowdvalley
  25. 25. Crowd Valley: Your Look & Feel!@paulhigginz @crowdvalley
  26. 26. Where 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@paulhigginz @crowdvalley
  27. 27. Crowdfunding in Europe!Paul Higgins@paulhigginz @crowdvalleypaul@crowdvalley.com

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