Grow VC organized this startup event jointly with South East England Development Agency. To talk about Finance for Mobile and Internet Businesses. Some of the main topics in our presentation today are: * Developing Global Internet Businesses - Challenges and opportunities * Web and mobile businesses: new retail business * Go-to-market * Challenges of funding market * Web and mobile services funding * Grow VC platform for Experts and funding - The first global concept * Grow VC Local Partner examples * Investment policy and our market position * Would you like to manage VC money?

1. Finance for Mobile and
Internet Businesses
South East England Development Agency
October 15, 2009
The Place to Grow

2. Challenges and opportunities
1. DEVELOPING GLOBAL
INTERNET BUSINESSES
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3. Background
 The business environment of fast-growth companies
has changed significantly over the past 15 years
 Internet and web 2.0
 spreading funding model
 global #1 in their niche
 VC’s and business angels – typically local
 Immediately global web and mobile companies look
for global smart money, not limited to single country
or state
 New funding models are needed for early phase, but
also to cover the needs of different kind of
companies  not only one type risk money
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4. Web and mobile businesses:
new retail business
 The new chasm is to get attention and
users
 It is like to sell goods through
supermarkets, except
 No manufacturing costs
 No logistical issues
 The number of supermarkets and shelf space is
in principle limitless
 To be successful
 Users must find your app directly, or
 You must get good supermarkets to put your add
to good shelf space, or
 Both of these options
 Smarter analytics and personalization can
change this picture, but it happens slowly
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5. Go-to-market
 Listen to market
 Test your ideas and models
 Light beta  learn  develop
 Fast development cycles
 Use the latest development tools
 Think your business model
 It can be free apps, but you should
have an idea to monetize
 But don’t try to monetize too much too
early
 Many concepts are easy to copy 
build your brand and position
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6. Challenges of funding market
 Web and mobile enterprises ARE NOT only new technology
enterprises and capital efficiency is high
 Open source, free tools, fast development
 The challenge is to get users, not to implement a service
 Funding requirements are changing
 The role of early stage investors is very risky and often
unprotected
 Early phase funding is often too risky and expensive for VC
organizations  moving towards more mature later phase
deals
 Only the market can often demonstrate the value of a new web or
mobile company
 No patented technology or other concrete IPR’s
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7. Web and mobile services
funding
1. Immediately global mobile apps companies look
for global smart money, not limited to single
country or state
2. Step-by-step funding
 If you cannot start mobile apps business with less than $200k, you must re-think
your approach
 Make it – launch it – improve it
 Successful companies don’t do it immediately right, but they use money carefully
and are able to change course as they learn
3. New funding models are needed for early phase,
but also to cover the needs of different kind of
companies  not only one type risk money
 Someone can make simple apps for personal living without world-class ambitious,
and need some money to start
 Another one what to create fast growing business with hundreds of apps
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8. The first global concept
2. GROW VC PLATFORM FOR
EXPERTS AND FUNDING
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10. Grow VC model
 Truly Global International Platform where investors,
companies, and entrepreneurs can better meet each other and
get tools to make transactions effectively
 New type of investment funds
 Grow VC has three revenue sources and Grow VC earning
model depends on the success of start-ups
 Includes several components:
1. Match-making tools (between funder and entrepreneur)
2. Software platform for the community
3. Legal, monitoring and reporting framework
4. Involvement of top experts in venture funding and industry verticals
5. Growth and funding enabling services
6. Future steps like investment pool and community recommendations for investments
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16. Timetable
 June 2009: Private Beta
 Match making service for investors and start-up firms
 Direct investments from private investors to companies
 September 2009: Public Beta
 open for all users, and some additional features like:
 Service / work commitment investments
 Additional tools to manage business plans and negotiations
 Coming soon: Investment Pool
 Totally new fund model
 Anyone can be a Venture Capitalist
 Standard templates to make investments in pre-defined
locations
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17. Grow VC Local Partners
examples 1
 Legal services
 Experienced corporate and investment lawyers for helping companies,
investors, and entrepreneurs to make investment agreement and other
needed paper work
 Auditors
 Top tier audit firms for due diligences, audit annual reports, and maintain
reporting templates
 Corporate finance and investment bank services
 Top tier finance service companies for helping in investment process, help to
find later phase funding, and make exit
 Banks
 Leading banks for managing transfers and payments and cash for
investments
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18. Grow VC Local Partners
examples 2
 Local Authorities, Incubators, Accelerators
 Support companies or holding companies in investment process, find co-
investors, and get business development services
 Universities
 Introducing university spin-off’s to real markets, to test traction. Build
international co-operation and contacts
 Event organizers
 Extend the reach of events to international marketplace, introduce new
startups and investors to network. Market events to Grow VC users for place
to meet face to face
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19. Investment policy
 All start-up companies are web or mobile companies
 Company’s offering and products are or will be available and visible in web or
mobile
 All members have a right to evaluate and rate companies
 The rating is directly used in the investment decisions
 Investment money comes from private investors,
entrepreneurs, and investment partners
 Investor community also manages investment
decisions
 ”Godfather” concept
 Companies can take a godfather that increase their credibility and the
godfather can be, for example, in the board after the investment
 Gadfather can be e.g. an incubator, well know business angel, or well
know expert in the business area in question
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20. Grow VC position
Investment decisions:
•Private investors
•Community of investors
and entrepreneurs
•Match-making
Private Investors, Start-up
•Service
e.g. angels XXX
investments
Investment •New fund
Start-up
Partners, e.g. VC model
YYY
•Support for
Entrepreneurs investment Start-up
who looks for process and ZZZ
funding materials
Investment process:
Managed by community
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21. Summary
 Grow VC International offers a new global service to enable
early phase funding
 Focus on web and mobile companies
 Targeted at web and mobile companies that need $10,000 to
$1,000,000 funding
 Total transparency is essential for the service
 Grow VC will offer three main services:
1. Match-making for business angels to fund investment opportunities and
for startups to find private investors
2. Service investment match-making, professionals can invest their time
and work in startup instead of dollars
3. “Social investment pool”, i.e. open investment fund that makes
investments into startups based on its limited partners voting decisions
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22. Would you like to manage
VC money?
Available soon in laptop near you
http://www.growvc.com/my-vc-money
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23. You don’t have to be Steve Jobs to be an entrepreneur
You don’t have to be Bill Gates to be an investor
Everyone must start somewhere
Grow VC – The Place to Grow
Jouko Ahvenainen
jouko@growvc.com
Tel (UK): +44 79 1248 1154
Tel (US): +1 415 287 0854
Skype: jahven
www.growvc.com
Twitter: @growvc
The Place to Grow