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


WE MUST ACT

When 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


Virtu

al 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, BUT

PEOPLE AND PASSION

There will be much more models, because

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Grow VC - Everyone funding startupswww.growvc.com18

Co-op was for creating together

Co-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 investments

and build with people


AND HOW TO DO IT

Crowd-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 provide

that 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


more equal opportunities,

enabling entrepreneurship

and investors

and accelerating innovation


Trust Economy


IT CREATES VALUE

It 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 be

Bill 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