Grow vc next workshop 2010 05-10

Grow VC - Everyone funding startups

How to fix it?Crowd-funding and new funding models

Jouko Ahvenainen

May 11, 2010


Sometimes you just knowwhen things don’t feel quite

right


WE MUST ACTWhen something doesn’t work

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When people don’t like how something works…


its all about enabling entrepreneurship

and the freedom of innovation

…great things can happen


Current Venture Capital market


Venture Capital model is over 50 years old…


…and it’s going downhill


VC market includes $540 Million in transaction fees (~3 %, NVCA, 2010) A few VC managers CANNOT find all the good companies Business angel market is not effective

Market inefficiency

poor deal flow based on local/personal networks lack of information and tools


enabling a more vibrant market via peer-to-peer and crowd-funding


Vision The next Silicon Valley is not a location, it is a platform

and community on the Internet

Grow VC - Everyone funding startupsVir

tual S

ilico

n V

alle

y

“;+)


MissionProvide the platform, service tool kit and partner network

for the virtual Silicon Valley



global

transparent

open

collaborative

efficient


Kiva.org transactions well over $100 Million in 4 years Local Motors, Lego, NASA, Linux, TxtEagle, Zopa

Networked solutions =new frameworks


IT IS NOT ONLY MONEY, BUTPEOPLE AND PASSION

There will be much more models, because

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Co-op was for creating togetherCo-op will again be for creating more together


Buying and owning

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You can take money investments

and build with money


Or you can take service investmentsand build with people


AND HOW TO DO ITCrowd-funding

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P2P and Crowd-fundingvia Community Investments







Match-making and negotiation tools

for private investments


Professionalservice investments


Freemium - Subscription based NO transaction fees Efficient due diligence

Standard term sheets, including partners in process

Grow VC will providethat networked solution


Transparent global market place

Tools to find companies, make investments and manage investments

Together – Crowd, Business Angels and Institutional Investors

Create a connected global marketplace


Open API’s to develop applications and services

Open to develop new funding and business models

Open


Help to build the team and other key contacts to start

Ecosystem and community to find partners, people and other actors

Support good things, help new activities and build their own future – people do not only invest to get ROI

It is not only money


WE HAVE A DREAM:more equal opportunities,

where entrepreneursand private investors unite

to accelerate innovation


Trust Economy


IT CREATES VALUEIt can work only if

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Value to All Parties


Start-ups

Community to find right type of investors around the world Tools to manage the investment process Market, develop and gain credibility to your company Build your team Build TRUST online


Investors

A place to find early phase companies around the world Community peer-review indicators for interesting opportunities

(micro investment) Opportunity to diversify investments and risk Build your TRUST online


Experts

Access to start-up companies and investors around the world Potential customers that need investment, legal, business

development and financial services Follow trends and new ideas globally Build your TRUST online


WHAT NEXT?Excellent, but

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“You don’t have to be Steve Jobs, to be an entrepreneur”


”You don’t have to beBill Gates to be

an investor”


”Everyone must start somewhere”


Grow Venture Community

When do YOU start...?


Jouko [email protected] (UK): +44 7889 833 165Tel (HK): +852 8120 7854Tel (US): +1 415 287 0854Skype: jahven - Twitter:@jahven

www.growvc.comTwitter: @growvc

Podcast: “Grow VC” in iTunes