Grow VC Group Forum Oxford 2012-11-23

Grow VC Group :: :: www.growvcgroup.com :: ::

@growvc :: ::

Disruption in finance: from seed to IPO November 23, 2012 :: Jouko Ahvenainen Forum Oxford 2012

:: :: Grow VC Group :: ::

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Grow VC Group has grown to have globally 5 companies for new investment models and growing number of portfolio companies

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Finance and Services Portfolio

Samples:

Infrastucture

Grow VC Group ::

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Over 16,500 investors Over 4,300 startups

10% monthly growth

Almost $35 Million investment money

Users from 200 countries

The most global market place for equity

Over 400 3rd party crowdfunding network on the platform

Dozens of investments, millions of money

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Full solution: investment community, tools, payments, backoffice and reporting – set up in a minute

Anyone can start market place in Crowd Valley ::

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First $100,000 from crowdfunding, excellent progress since then!

Case :: CINTEP ::

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Money and resources (Work Investments) thru crowdfunding!

Case :: The Tip Card ::

:: :: From Seed to IPO :: ::

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Startup crowdfunding system ::

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JOBS Act in the USA ::

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1.  Direct investments!-  An investor invests directly in a company, become a shareholder,

company can have hundreds of small shareholders!2.  Investments through an instrument!

-  An investor can select a company he/she invest in, but the actual investment is done by an investment company that aggregates all investments together, the investment company is the shareholder!

3.  Crowdfunding of investment instruments!-  Crowdfunding model is used to raise capital in a fund and the fund

makes investments!4.  Co-investment models!

-  Different models to make co-investments with crowdfunding!

Several Investment Models ::

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Seed to IPO :: Broken Pipe ::

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Phase Problem Solution candidate Seed How to build the first version Angels, crowdfunding, new

lending models Series A VC’s pick only a few

companies Other funding models like lending and crowdfunding for no-VC cases

Series B to C No many investors in this area

New market place models: crowd-based funds, syndicate market places and instruments

Exit of investor before Exit

The market is not liquid, i.e. very long-term investments, decrease investment willingness

Market places for different phases

IPO Big step Easier transition thru different market places

We can fix it ::

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!

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JOBS Act is not only startup crowdfunding ::

ü US Delegation in Transatlantic Economic Forum ü Cooperation with Singapore Government Investment

Company, ü Crowdfunding Regulatory Intermediary Association

(CFIRA) ü Crowdfunding Professional Association (CFPA) ü National Crowdfunding Association (NLCFA) ü European Crowdfunding Network ü Cooperation with Securities and Exchange

Commission (SEC) and Financial Industry Regulatory Authority (FINRA)

Many regulatory activities ::

More open market!§  Crowdfunding for early

phase is one components!§  Important get different

models and phases to work together!

§  Also traditional finance sector has noticed startups and private companies!

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Disruption in finance and funding models ::

Read & write, participatory, conversational: markets are conversations, marketing is a conversation, business is a social science!

A new language:

A cultural

challenge

…for corporates …for governments …for human beings

To resist will lead to

financial and organisational

exhaustion

Grow VC Group :: :: www.growvcgroup.com :: ::

Jouko Ahvenainen :: :: jouko@growvc.com :: ::

+44 7889 833 165 :: ::