Grow VC & The Soho Loft - Crowdfunding and Capital Creation

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The Soho Loft, TSL, is organizing a capital market and crowdfunding conference in Los Angeles on March 13 and 14. In this remarkable moment in history, the U.S. regulatory environment, its capital markets and the innovation that drives those markets are simultaneously on the threshold of dramatic change. Grow VC is participating in the event panel, and Grow VC’s Co-founder Jouko Ahvenainen is speaking in the event. His presentation “Models and approach to building the new sustainable finance sector” illustrates new models for developing the finance and funding markets, and make them more effective, transparent and democratic.

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STARTUPS! PEOPLE!HOME!

Models and approach to building the new sustainable finance sector"

!Jouko Ahvenainen CAPITAL CREATION AND CROWDFUNDING CONFERENCELos Angeles, March 13, 2012!

Grow VC!

www.growvc.com 2

§  Is not a venture capital company, but connects all parties in the global ecosystem, including venture capital companies!

§  Global community & marketplace – “built to scale”!–  Be global, act local!–  Global #1 platform for startup equity funding!

§  Grow VC platform is open for 3rd parties to set up several market places, and other startup and investor communities!

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Grow VC has created an effective and transparent online investing marketplace for global startup ecosystem. – ”The Virtual Silicon Valley”!

The industrial age is over!

Destroyed by News Corp

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Where are we today?!

§  Still in finance crisis where people have lost their trust to financial institutions!

§  The stock market hasn’t offered really stable growth for 10 years!

§  Many people losing their jobs, and other are frustrated to sit in meetings and make PowerPoint slides!

§  Top percent is becoming richer, middle-class is struggling!

§  Asia is taking over the global leadership in business and finance!

STARTUPS! PEOPLE!HOME!“You don’t have to be

Steve Jobs, to be an entrepreneur”

Economy needs growth andpeople need passion!§  Our economy needs a boost!

1.  Corporates don’t create enough new jobs!2.  New technology and business innovations drive growth!3.  Increasing global competition!

§  People need passion and meaningful work!1.  Many people are frustrated to their daily work!2.  Ordinary people could invest in startups their money and work

(‘sweat equity’) and also participate in something meaningful!3.  There is no one single model to work and invest anymore,

people and companies in different networks need models to work, raise capital and invest!

Vision !The next Silicon Valley is not a one location, it is a global

online platform and community of all locations!

Mission!To have a market place and ecosystem to make company

funding more effective, transparent, and democratic!!

WE HAVE A DREAM: more equal opportunities,

where entrepreneurs and investors unite

to accelerate innovation

global transparent

open collaborative

efficient scalable

STARTUPS! PEOPLE!HOME!

”You don’t have to be

Bill Gates to be an investor”

Mobile  Banking  

Mobile Banking

We have a problem!

1.  The Funding market is inefficient!-  VC’s invest mainly in later phase companies!

-  Business angel funding is often based only on personal or local networks!

-  No liquid secondary market, and not enough IPO’s!

2.  One model doesn’t fit all!-  Startups have very different risk and growth profiles, many of them are

not traditional VC cases!

3.  Investing is not only about money!-  Companies need investors that can help with business around the world!

-  Early phase companies also need core team members!

-  For VC’s it is too expensive to allocate people for seed level companies!

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Friends and families invest more more than VC’s and angels!1.  Market efficiency!

–  VC market includes $540 Million in transaction fees (~3 %)!–  Business Angels have limited investment deal flow!–  Households savings on the rise à where to place money?!

•  US household savings almost $8,000 Billion p.a. (Feb 2011, Bureau of Economic Analysis) !

!2.  Modern solutions bring efficiency!

–  Kiva.org transactions over $200 Million in 5 years!

3.  Market place!–  Large deal flow!–  Crowdsourcing for work and low transaction costs!–  Efficient due diligence (standard term sheets, including partners in process)!–  Efficiency enables agile funding !

More democractic investment market!

§  Open startup investment opportunity for more people!§  Ordinary people or wealthy ordinary people (depending on local

regulation) can make direct or micro investments!§  Work investments (Sweat Equity)!§  For example, in the US there are over 6 Million accredited

investors, but only !- 500k to 700k of them have invested in startups (as an angel or friends&family)!

- 100k to 300k are active business angels!

- A few hundred angels in Silicon Valley!

§  It is not only about ROI, but to support new ideas, technologies, change and economy!

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STARTUPS! PEOPLE!HOME!

”Everyone must start somewhere”

Velocity

Lightweight Flexible Adaptive

Enabling platforms

Open Open platforms

Open API’s Open legal frameworks

Global

P2P and Crowd-funding!via Community Investments

Match-making and negotiation tools for Private Investments!

Professional!Work Investments

Now something new:!Anyone can start own network

A cultural

challenge

…for corporates …for governments …for human beings

To resist will lead to

financial and organisational

exhaustion

Market Data = Time To Act is NOW! !

Live Trends: http://grow.vc/crowdfunding_trends!!

2007 - 2011! Last 12 Months +400%!

CONTACT!

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Jouko Ahvenainen Grow VC – Co-founder & Chairman jouko@growvc.com+44 7889 833 165 (UK), +1 646 363 6664 (US)http://www.growvc.com/Twitter: @growvcFacebook: Grow VC Podcast: ”Grow VC” in iTunes!

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