The document discusses the current state and future of crowdfunding in Europe, emphasizing the need for integration within existing entrepreneurial ecosystems. It highlights regulatory developments, successful platforms, and statistics about funding raised through equity crowdfunding. The speaker, Paul Higgins, outlines the importance of building networks and the potential for crowdfunding to evolve into more complex financial models.

1. Crowdfunding in Europe!
Paul Higgins
Co-founder, Crowd Valley
May 25th, 2013
Gründer- und Unternehmerforum
Berlin

2. Overview!
• Grow VC Group – innovating investing
• Crowdfunding in connected ecosystems
• Crowdfunding in Europe today
• Where crowdfunding is going next
@paulhigginz @crowdvalley

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. Cintep (Australia): First $100,000 from equity crowdfunding!
@paulhigginz @crowdvalley

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 Financial
Industry Regulatory Authority (FINRA)
@paulhigginz @crowdvalley

6. 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
H.R. 3606: Jumpstart Our Business Startups (JOBS Act)!
@paulhigginz @crowdvalley

7. Grow 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
– 6 portfolio companies to date
@paulhigginz @crowdvalley

8. Finance and
Services
Infrastructure Investment
Portfolio
@paulhigginz @crowdvalley

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. 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. Where crowdfunding is today!
Source: crowdsourcing.org
@paulhigginz @crowdvalley

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. Building an entrepreneurial ecosystem in your city!
Universities
Incubators
Accelerators
Government programs
Investor pitch events
Angel networks
Funding platforms
@paulhigginz @crowdvalley

14. A ’typical’ startup path!
Universities
Incubators
Accelerators
Government programs
Investor pitch events
Angel networks
Funding platforms
@paulhigginz @crowdvalley

15. The investor’s viewpoint!
@paulhigginz @crowdvalley

16. Finding your natural constituency!
Source: crowdsourcing.org
@paulhigginz @crowdvalley

17. Crowdfunding in Europe today!
• New regulations in Italy
– The CONSOB regulation implements Law n. 221, the so-called Decree
Growth
– Currently only available to “innovative startups”, which have a
university researcher in their team and an institutional investor to
subscribe to at least 5% of the capital required
• Many platforms around Europe with various funding models, some already
authorised by financial regulators
– CrowdCube (UK)
– Seedrs (UK)
– Companisto (Germany)
– Symbid (Netherlands)
– Siamosoci (Italy)
– Etc.
@paulhigginz @crowdvalley

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. 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. 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
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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. 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
$111k
Data from www.thecrowdcafe.com
@paulhigginz @crowdvalley

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 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
@paulhigginz @crowdvalley

23. Crowd Valley: Your Crowdfunding Network!
@paulhigginz @crowdvalley

24. Crowd Valley: Your Logos, Branding, Rules!
@paulhigginz @crowdvalley

25. Crowd Valley: Your Look & Feel!
@paulhigginz @crowdvalley

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. Crowdfunding in Europe!
Paul Higgins
@paulhigginz @crowdvalley
paul@crowdvalley.com