Future of funding & the virtual Silicon Valley

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

May 11, 2010

Grow VC - Everyone funding startups

When something doesn’t work

WE MUST ACT

3 www.growvc.com Grow VC - Everyone funding startups

When people don’t like how
something works…


its all about enabling
…great things entrepreneurship
can happen and the freedom of innovation


Current Venture Capital market


Venture Capital model is over 50 years old…


…and it’s going downhill


Market inefficiency

 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

 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

“;+)

Virtual Silicon Valley

Mission
Provide the platform, service tool kit and partner network
for the virtual Silicon Valley


global
transparent
open
collaborative
efficient


Networked solutions =
new frameworks

 Kiva.org transactions well over $100 Million in 4 years
 Local Motors, Lego, NASA, Linux, TxtEagle, Zopa


There will be much more models, because

IT IS NOT ONLY MONEY, BUT
PEOPLE AND PASSION

Co-op was for creating together
Co-op will again be for creating more together


Buying and owning


You can take money investments
and build with money


Or you can take service investments
and build with people


Crowd-funding

AND HOW TO DO IT


P2P and Crowd-funding
via Community Investments


Match-making and negotiation tools
for private investments


Professional
service investments


Grow VC will provide
that networked solution

 Freemium - Subscription based
 NO transaction fees
 Efficient due diligence
 Standard term sheets, including partners in process


Create a connected
global marketplace

 Transparent global market place
 Tools to find companies, make investments and manage
investments
 Together – Crowd, Business Angels and Institutional Investors


Open

 Open API’s to develop applications and services
 Open to develop new funding and business models


It is not only money

 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


more equal opportunities,
enabling entrepreneurship
and investors
and accelerating innovation


Trust Economy


It can work only if

IT CREATES VALUE


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


Excellent, but

WHAT NEXT?


“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”


When do YOU start...?

Grow Venture Community


Jouko Ahvenainen
jouko@growvc.com
Tel (UK): +44 7889 833 165
Tel (HK): +852 8120 7854
Tel (US): +1 415 287 0854
Skype: jahven - Twitter:@jahven

www.growvc.com
Twitter: @growvc
Podcast: “Grow VC” in iTunes


Future of funding & the virtual Silicon Valley

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Future of funding & the virtual Silicon Valley