Grow VC Group crowdfunding presentation at founders network

From startup crowdfunding to finance sector disruption founders network April 9, 2014 – San Francisco - Jouko Ahvenainen

Grow VC Group ++ www.growvc.com ++

@growvc ++ MARKETS – ASSETS – CROWD ++

Copyrights © Grow VC Group 2014


Jouko Ahvenainen ++

Corporates: Entrepreneur:

Other Activities:

Transatlantic Economic Council

TOP 100

TOP 15

Finance and Services Infrastructure Consulting & Professional Services

Grow VC Group ++


Hong Kong - London - New York - San Francisco - Sao Paolo

The Grow VC Group is a worldwide pioneer and leader in the crowd investing, peer-to-peer and online investment market.


Market places in our portfolio ++


#1 market place infrastructure ++

Technical platform, services like investor background check, investment escrow accounts, due diligence services, credit check, transaction settlement, investor communications

Finance to a new era ++


WE HAVE A DREAM: more equal opportunities,

where entrepreneurs and private investors unite

to accelerate innovation


Short history ++

•  We were probably the first equity crowdfunding service, launched the startup crowdfunding in 2009

–  The regulatory environment was very complex then, and it was the main reason not to start in the US.

•  We have done a lot of pioneer work in the market and also work finance regulators e.g. in the US, UK, EU and Singapore

•  With new innovations it is always difficult to predict the timing –  We decided that our model is to survive and adapt until the market really takes

off •  Important strategic review in May 2012 à from startup crowdfunding only to Grow VC

Group –  Grow VC Group is more like a holding company that have majority share in some

key ecosystem and infrastructure companies and minority in vertical oriented crowdfunding or p2p market places typically with a partner that has strong competence in the vertical in question

•  Crowdfunding concept has really grown from startups to all kind of securities and assets

•  Also institutional investors are coming more interested, i.e. diversify their portfolio through automated co-investing and co-lending platforms, and e.g. avoid the costs of funds.


Internet has killed longtail in finance ++

•  In many industries the Internet has created and amplified the longtail business

–  Google for advertising, eBay for trading, and services for music, books, videos

•  In finance the influence has been almost opposite, when the Internet has killed traditional market makers (e.g. the US IPO market marketing and underwriting) due to regulation and machine trading (speculation, not long position, oriented)

–  Together this has caused e.g. globally poor IPO market: the pipe from seed funding to IPO is broken

•  Crowd investing (equity and lending models) are finally bringing the positive Internet change for finance, and it is not only for early phase startup market

–  We already work with market places for companies in different phases, content funding, commodities, real estate, energy sources


Internet has been a distribution channel ++


Disruption now – global virtual market places++


Go back to the idea of stock market ++


Create a new effective finance retail market ++

Crowd investing

Market Place

P2P Lending

Companies / Assets Market Places Investors / resources


New regulation is coming ++

Title I (Crea'on of EGCs; “IPO on ramp”) Largely effec've on enforcement.

Title II (Amendments to General Solicita'on/Adver'sing)

Effec've since September 2013.

Title III (Crowdfunding, i.e. investments from non-‐accredited investors)

The SEC collected comments by January 2014, now SEC processes the comments, expected to be effec've in 6 to 9.

Title IV (Increasing Reg A offerings to up to $50 million)

Not yet effec've, date unclear.

Title V (Increased thresholds for registra'on with SEC)

Largely effec've on enforcement.

Title VI (Increased thresholds for registra'on with SEC for banks)

Largely effec've on enforcement.

Read more: http://www.crowdvalley.com/1/post/2013/10/jobs-act-where-are-we-now.html


Opportunity for traditional finance companies too ++

1. Funding round or loan application

• A company opens a funding round or apply a loan

2. Crowd investing or p2p lending

• Crowd, i.e. ordinary people, can offer an investment or loan, and if enough money available, the company gets money

3. Co-investment or

co-lending

• A bank or investment company can join to a deal, i.e. make co-investment or participate the loan

§  http://www.growvc.com/blog/"§  http://www.crowdvalley.com/news.html "§  http://www.startupcrowdfunding.com/blog.html"§  http://www.growadvisors.com/news.html"§  http://www.startupcommons.org/blog.html"

Read more ++

Jouko Ahvenainen [email protected]

+1 646 363 6664 (US) +44 7889 833 165 (UK)

Grow VC Group ++

www.growvc.com ++ @growvc ++

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Grow VC Group crowdfunding presentation at founders network

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