Where Money Meets the Talent


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Grow VC presentation in CommunicAsia 2013 event in Singapore: Where Money Meets the Talent. We discuss especially about new funding models, and now to get p2p investing, crowd funding and traditional investing models to work together.

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Where Money Meets the Talent

  1. 1. Where Money Meets the TalentJouko Ahvenainen / June 19, 2013SingaporeGrow VC Group ++www.growvc.com ++@growvc ++Innovating Investing ++Copyrights © Grow VC Group 2013
  2. 2. Jouko Ahvenainen ++Copyrights © Grow VC Group 2013•  Serial-entrepreneur and startupinvestments•  For example, mobile, media,advertising and data analyticsstartups•  Worked in Asia, Europe and theUS•  Columnist at Telecom Asia•  Grow VC Group Founder andChairman•  uk.linkedin.com/in/joukoahvenainen/
  3. 3. Grow VC Group ++Copyrights © Grow VC Group 2013
  4. 4. •  2009 Grow VC Company was createdo  to build #1 global equity crowdfunding online platform underwww.growvc.com domain•  2010 growvc.com service was launchedo  pioneer in equity crowdfunding•  2011 Company expandedo  team of 50+ people spread across the globeo  develop the business globally within the equity crowdfundingmarket segment.o  online platform was developed extensively to meet global andlocal startup ecosystem requirements and startup lifecyclethinkingGroup History ++Copyrights © Grow VC Group 2013
  5. 5. •  2012 Grow VC to Grow VC Groupo  Grow VC Networks model was launched as public BETA.o  along with the JOBS Act passing in the US adding clarity toemerging market, a bigger strategy switch was done to addfocus on all of the company activitieso  the company was restructured to Grow VC Group with severaldifferent business units, companies and operational teams•  2013 Acting as Grow VC Group with independent unitso  all units focus on executing their own business in theirspecific business areao  Grow VC Group reputation and synergies between units areutilized where relevantGroup History ++Copyrights © Grow VC Group 2013
  6. 6. Finance and Services Infrastructure Investment PortfolioEntities ++Copyrights © Grow VC Group 2013
  7. 7. Grow VC GroupStrategic partnerships and groupinvestment portfolio managementwww.growvcgroup.comGrow AdvisorsConsulting and investment bank typeservices for crowdfunding ecosystemwww.growadvisors.comMutual Seed FundCrowdfunding co-investment fund,works with many crowdfundingservices www.mutualseedfund.comCrowd ValleyTurn key solution to startcrowdfunding for any assets, equity orlending www.crowdvalley.comgrowvc.comStartup ecosystem platform andleading global marketplace to investmoney or work in early phase startupswww.growvc.comChangeLab23Design & build digital product, wherecustomer experience is at the heartwww.changelab23.comCopyrights © Grow VC Group 2013Core Businesses 2013 ++
  8. 8. Other Business Vertical Startup Ecosystem Other Business VerticalFundingNetworksNon FundingNetworksPlatform Businesses ++Copyrights © Grow VC Group 2013
  9. 9. Full solution: investment community, tools, payments,backoffice and reporting – set up in a minute3rd Parties can start crowd funding p2p investmentmarket place on our platform ++Copyrights © Grow VC Group 2013
  10. 10. Mobile Monday & Grow VC Co-operation ++Copyrights © Grow VC Group 2013
  11. 11. Portfolio samples: Lost in Translations Inc. ++Copyrights © Grow VC Group 2013•  Easy to use tool to make andmaintain language versionsof web services and mobileapps•  Different services levels fortranslations, includingcrowd sourcing•  Silicon Valley basedcompany, with strongcustomer demand globally,including Asia•  Enable any company tooffer their services easilyin any language•  www.lostintranslations.com
  12. 12. Portfolio sample: Skimmler ++Copyrights © Grow VC Group 2013•  Easy for any publisher tomake its own Facebook ormobile reading application•  User can follow severalpublications in one place•  Much more is comingin the beta launch: toolsto help reading, findrelevant content andfollow publicationsaround the world•  www.skimmler.com
  13. 13. Startup funding ++Copyrights © Grow VC Group 2013
  14. 14. 1.  Since 2008 it has been especially difficult to raise money to VC funds2.  Traditional VC funds starts with approximately USD 2M investments3.  Basically all countries look for new growth and see that traditional industry is notenough4.  When VC’s have had issues to raise more money, it also cause issues to fundcompanies that are already in their portfolio5.  Capital efficiency has increased, i.e. startups can start with smaller capital6.  Many governments and local organizations invest to build better startup ecosystemslocally and also want to participate in funding or attract investors to operatelocally7.  Crowd funding and ‘open market places’ are emerging8.  There are also more local business angel networks, and e.g. governments havecreated some tax schemas to attract more people to invest in startups9.  There are several new models to get money, like crowd funding, angels, localsupport, and incubator programs. But issue is also, how to get these to worktogether10. Many startups focus very much towards the US, when it has offered the bestfunding and exit market. At the same time emerging markets could offer e.g.easier routes to make revenue and organic growth.10 Points about startup funding ++Copyrights © Grow VC Group 2013
  15. 15. New finance regulation ++Copyrights © Grow VC Group 2013
  16. 16. §  The team has invested three years into the crowdfunding industryglobally, and positioned itself in the ecosystem globally "§  The team has been part of the US Delegation in Transatlantic EconomicForum, had cooperation with Singapore Government InvestmentCompany, "§  UK Trade and Investment, and is a founding member of CrowdfundingRegulatory Intermediary Association (CFIRA), CrowdfundingProfessional Association (CFPA), National Crowdfunding Association(NLCFA), European Crowdfunding Network, cooperation with Securitiesand Exchange Commission (SEC) and Financial Industry RegulatoryAuthority (FINRA) "§  We have a jumpstart on any direct competition with 400+ existingbusiness customers, ranging from small communities to large networksof communities like the World Bank "We build this market ++Copyrights © Grow VC Group 2013
  17. 17. Peer-to-peerLess fat middle-menCopyrights © Grow VC Group 2013
  18. 18. globaltransparentopencollaborativeefficientscalableCopyrights © Grow VC Group 2013
  19. 19. Read & write, participatory, conversational:markets are conversations, marketing is aconversation, business is a social science!A new language:Copyrights © Grow VC Group 2013
  20. 20. Co-creation + networkedeconomics + communities ofinterest can be and are,proven & powerful platformsand processes to stimulateinnovation and commerceCopyrights © Grow VC Group 2013
  21. 21. Startup funding ++Copyrights © Grow VC Group 2013
  22. 22. •  It is to get different funding models to work togethero  Transparent models, fair agreements and opportuntieso  ‘Market value’o  Continuity for the next funding rounds•  Different Investors offer different kind of value addedo  Better to make difference between money investment andcompetence each investor or other member brings•  There can be several co-investment models, passiveor active•  It is typically important to build co-operation withbusiness angels, VC’s and incubatorsDifferent funding models and Ecosystem ++Copyrights © Grow VC Group 2013
  23. 23. Companies make sourcing and get investments all the time: thequestion is how to get crowd involved to this and develop models tomake the sourcing and investing market more effectiveNothing new but totally new ++Copyrights © Grow VC Group 2013Crowdfunding 1MarketPlaceP2PLendingCompanies /AssetsMarket Places Investors / resources
  24. 24. Co-investment and co-lending ++Copyrights © Grow VC Group 20131. Fundinground or loanapplication•  A company opens a funding round orapply a loan2. Crowdfunding orp2p lending•  Crowd, i.e. ordinary people, canoffer an investment or loan, andif enough money available, thecompany gets money3. Co-investment orco-lending• A bank or investmentcompany can join to a deal,i.e. make co-investment orparticipate the loan
  25. 25. Group Level Synergies ++Copyrights © Grow VC Group 2013
  26. 26. 1. Direct investmentso  An investor invest directly in a company, become a shareholder,company can have hundreds of small shareholders2. Investments through an instrumento  An investor can select a company he/she invest in, but the actualinvestment is done by an investment company that aggregate allinvestments together, the investment company is the shareholder3. Crowd funding of investment instrumentso  Crowd funding model is used to raise capital in a fund and the fundmakes investments4. Co-investment modelso  Different models to make co-investments with crowdfundingInvestment models and crowd funding ++Copyrights © Grow VC Group 2013
  27. 27. •  Co-investors can be e.g. business angels, VC’s, or funds1. Co-investment partnersa.  Partners follow p2p, typically no automated investments, but usecrowd to filter investment opportunitiesb.  Leading investors offers cases to crowd, and crowd follow them2. Syndicate modelso  Can have two models as above, but formalized co-investmentmodels with pre-defined models, shares and responsibilities3. Built-in investment instrumentso  Investment instruments that are built to work with the p2pinvestments, e.g. automated co-investmento  The instruments can be like traditional funds or modified versionsGrow VC co-investment models ++Copyrights © Grow VC Group 2013
  28. 28. •  Grow VC is building a special co-investmentinstruments•  The instrument and concept is built especially for the p2p co-invesments•  The instruments are built to work with p2p models,crowd can filter cases, or p2p bring leverage to fundinvestments•  Investors can join the instrument online, by definingtheir investment criteria like total sum and the numberof companies (diversification)•  The instrument is launched in six monthsMutual Seed Fund ++Copyrights © Grow VC Group 2013
  29. 29. •  It is important to think the whole startup and fundingecosystem and all its components•  Peer-to-peer is here to stay, equity crowd funding isjust starting to grow•  P2P is not to replace all other models or solution forneeds•  It is crucial to build an ecosystem where differentinvestment models work better together, including p2p– new solutions are needed•  P2P is not only for startup funding, it will haveinfluence on the whole finance sector to make it moreeffectiveFuture ++Copyrights © Grow VC Group 2013
  30. 30. “You don’t have to beSteve Jobs, to bean entrepreneur”Copyrights © Grow VC Group 2013
  31. 31. ”You don’t have to beBill Gates to bean investor”Copyrights © Grow VC Group 2013
  32. 32. ”Everyone must startsomewhere”Copyrights © Grow VC Group 2013
  33. 33. Jouko Ahvenainenjouko@growvc.com+44 7889 833 165 (UK)+1 646 363 6664 (US)+852 8120 7854 (HK)Grow VC Group ++www.growvc.com ++@growvc ++Slideshare: Grow VCInnovatingInvesting