Infocomm Industry Forum, Singapore 2010 10-28

CHANGING THE RULES:GLOBAL, TRANSPARENT AND NETWORKED MODELS TO MAKE BUSINESS

Jouko AhvenainenGrow Venture CommunitySingapore – Infocomm Industry ForumOctober 28, 2010

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FROM 2005 TO 2010From distruption to networks

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The Network Society: Networks cause a comprehensive restructuring of society at large, they are breaking old models of organization.

2005 - 2010YouTube

20 hours video every 60 secs of every day

Facebook500 million users

eBayOver a Million people make their living there

Dis

rup

tion

http://www.flickr.com/photos/naum/1639496461/

Facebook mobile

Google tv

…this networked society thing is a vu jade experience

The industrial age is over!Myspace:

Destroyed by News Corp

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WHO SAVES OUR ECONOMY

Growth is needed

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Startups ARE the KEY to Growth

Yet early phase funding exists in a dysfunctional system

Current Venture Capital market

WE HAVE A DREAM:more equal opportunities,

where entrepreneursand private investors unite

to accelerate innovation

WE HAVE A DREAM:more equal opportunities,

where entrepreneursand private investors unite

to accelerate innovation

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Networked solutions =new frameworks

“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”

globaltransparent

opencollaborative

efficient

Trust Economy

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VIRTUAL SILICON VALLEYCrowd-funding

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Vir

tual S

ilico

n V

alle

y

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Professional venture capital funds have become less relevant to the financing of innovation for the time being

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

platform and community on the Internet

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P2P and Crowd-fundingvia Community Investments

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Match-making and negotiation tools

for private investments

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Professionalservice investments

Over 6,000 registered members

approximately 1,200 startups

total investment money over$20M USDPeople allocate money in startups andinvest in Community Fund

the first local network started 3 months ago in India, already now almost 1,000 members and cooperation with local angel networks and VC’s

more local networks are coming in Asia, America, and Europe

Grow VC China10.10.10

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DISTRUPTION IN FINANCEWe are not alone

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Kiva.org transactions

well over $100 Million

in 4 years

Platform Model Crowdfunded

Prosper Peer to peer lending

$210 M

Lending Club

Peer to peer lending

$170 M

Kiva Microcredit $165 MZopa Peer to peer

lending$160 M

Kickstarter Supporting $20 MMyC4 Microcredit $17 MSellaBand Supporting $4 MIndieGoGo Supporting $3.5 MBetterplace Donating $3.5 MRocketHub Supporting  Pifworld Donating $0.2 MKapipal Donating $0.1 M

Mobile Banking

Mobile Banking

8 million subscribers

2010, M-PESA transferring close to 150M Euros per day, a figure that would put M-PESA transfer business ahead of that run by Western Union

txteagle workers are paid via MPesa

txteagle

Why must you wait and pay when you transfer your own money over borders

Networked - banking

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ARE WE READY FOR THISSo what

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WTF!?The quiet revolution of networks

& cooperation

Trust networks challenge outmoded models of control

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

A new language:

Co-creation + networked economics + communities of interest can be and are, proven & powerful platforms and processes to stimulate innovation and commerce

VelocityLightweight

FlexibleAdaptive

Enabling platforms

OpenOpen platforms

Open API’sOpen legal frameworks

Global

Once upon a time “we” were atomized but connected up to large organizations and big media – today that power is eroding…

Acultural

challenge

…for corporates…for governments…for human beings

To resist will lead to

financial and organisational

exhaustion

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Grow Venture Community

Where do YOU start...?

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Jouko Ahvenainenjouko@growvc.comTel (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