Grow VC group Forum Oxford 2012

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

11/22/12 www.growvc.com - confidential 4

Finance and Services Portfolio

Samples:

Infrastucture

Grow VC Group ::

Nov 1, 2011 www.growvc.com 5

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


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

Anyone can start market place in Crowd Valley ::


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

Case :: CINTEP ::


Money and resources (Work Investments) thru crowdfunding!

Case :: The Tip Card ::

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

November 22, 2012 www.growvc.com 10

Startup crowdfunding system ::


JOBS Act in the USA ::


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 ::


Seed to IPO :: Broken Pipe ::


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!


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 component!§  Important get different

models and phases to work together!

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

10/16/12 www.growvc.com 17

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 :: :: [email protected] :: ::

+44 7889 833 165 :: ::

Business

Grow VC group Forum Oxford 2012