1. Equity Crowd Funding
© Imperial College Business School
Best Practice Series 2013
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2. • Challenges in equity crowdfunding
• Funding early-stage startups
• Equity crowdfunding beyond startups
16th April 2013
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Equity Crowd Funding
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3. • GrowVC.com – the global marketplace for startup funding
• Founded 2009
• “Everyone Funding Startups”
– 2011 - $25M raised
– 5,000+ startups
– 190+ countries
– Several raised rounds, first exits
• Spun out Crowd Valley in 2012
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Equity Crowd Funding

4. © Imperial College Business School 4
Equity Crowd Funding
• Cintep (Australia): First $100,000 from equity crowdfunding

5. • Grow VC Group structured around new financial models
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Equity Crowd Funding
Finance and
Services
Infrastructure Investment
Portfolio

6. • 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 Financial Industry Regulatory Authority (FINRA)
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Equity Crowd Funding

7. © Imperial College Business School 7
Equity Crowd Funding
• H.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

8. © Imperial College Business School 8
Equity Crowd Funding
• 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

9. • 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 in Auckland
– 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 New York
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Equity Crowd Funding

10. • Crowdfunding ahead
– 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
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Equity Crowd Funding

11. Paul Higgins
Co-founder, Crowd Valley
paul@crowdvalley.com
16th April 2013
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Equity Crowd Funding
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12. Crowd Funding
© Imperial College Business School
Best Practice Series 2013
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