future of funding & the virtual silicon valley

Grow VC - Everyone funding startups

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

Jouko Ahvenainen

May 11, 2010

Grow VC - Everyone funding startups

Grow VC - Everyone funding startups

WE MUST ACT

When something doesn’t work

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Grow VC - Everyone funding startups

When people don’t like how

something works…

Grow VC - Everyone funding startups

its all about enabling

entrepreneurship

and the freedom of innovation

…great things

can happen

Grow VC - Everyone funding startups

Current Venture Capital market

Grow VC - Everyone funding startups

Venture Capital model is over 50 years old…

Grow VC - Everyone funding startups

…and it’s going downhill

Grow VC - Everyone funding startups

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

Grow VC - Everyone funding startups

enabling a more vibrant market

via peer-to-peer and crowd-funding

Grow VC - Everyone funding startups

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

and community on the Internet

Grow VC - Everyone funding startups

Virtu

al S

ilico

n V

alle

y

“;+)

Grow VC - Everyone funding startups

MissionProvide the platform, service tool kit and partner network

for the virtual Silicon Valley

Grow VC - Everyone funding startups

Grow VC - Everyone funding startups

global

transparent

open

collaborative

efficient

Grow VC - Everyone funding startups

Kiva.org transactions well over $100 Million in 4 years

Local Motors, Lego, NASA, Linux, TxtEagle, Zopa

Networked solutions =new frameworks

Grow VC - Everyone funding startups

IT IS NOT ONLY MONEY, BUT

PEOPLE AND PASSION

There will be much more models, because

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Co-op was for creating together

Co-op will again be for creating more together

Grow VC - Everyone funding startups

Buying and owning

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You can take money investments

and build with money

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Or you can take service investments

and build with people

Grow VC - Everyone funding startups

AND HOW TO DO IT

Crowd-funding

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Grow VC - Everyone funding startups

P2P and Crowd-fundingvia Community Investments

Grow VC - Everyone funding startups

Match-making and negotiation tools

for private investments

Grow VC - Everyone funding startups

Professionalservice investments

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Grow VC - Everyone funding startups

Freemium - Subscription based

NO transaction fees

Efficient due diligence

Standard term sheets, including partners in process

Grow VC will provide

that networked solution

Grow VC - Everyone funding startups

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

Grow VC - Everyone funding startups

Open API’s to develop applications and services

Open to develop new funding and business models

Open

Grow VC - Everyone funding startups

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

Grow VC - Everyone funding startups

more equal opportunities,

enabling entrepreneurship

and investors

and accelerating innovation

Grow VC - Everyone funding startups

Trust Economy

Grow VC - Everyone funding startups

IT CREATES VALUE

It can work only if

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Grow VC - Everyone funding startups

Value to All Parties

Grow VC - Everyone funding startups

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

Grow VC - Everyone funding startups

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

Grow VC - Everyone funding startups

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

Grow VC - Everyone funding startups

WHAT NEXT?

Excellent, but

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Grow VC - Everyone funding startups

“You don’t have to be

Steve Jobs, to be

an entrepreneur”

Grow VC - Everyone funding startups

”You don’t have to be

Bill Gates to be

an investor”

Grow VC - Everyone funding startups

”Everyone must start

somewhere”

Grow VC - Everyone funding startups

Grow Venture Community

When do YOU start...?

Grow VC - Everyone funding startups

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