Presentation by Paul Higgins, Co-founder of Crowd Valley, for the UK Technology Strategy Board's Special Interest Group conference on the Internet of Things, 22nd November 2012.

1. Crowdfunding in connected
ecosystems
Paul Higgins
Co-founder, Crowd Valley
November 22, 2012
Internet of Things Special Interest Group

2. Crowdfunding in connected ecosystems
• How crowdfunding works
• Opportunities in crowdfunding
• The importance of ecosystems
• Where crowdfunding is going next

3. Background – Grow VC
• Global marketplace for startup funding
• Founded 2009
• “Everyone Funding Startups”
– 2011 - $25M raised
– 4,000+ startups
– 190+ countries
– Several raised rounds, first exits
• Launched spin-off Crowd Valley in 2012 to provide:
– Customisable technology
– Shared business networks
– Back Office financial services

4. Crowdfunding is…

5. Crowdfunding platforms can provide…
• Matchmaking between investors and entrepreneurs
• Standardised documentation, e.g. Shareholder Purchase Agreements
• Efficient access to capital
• Validation of an idea
• Relationships with new potential customers
• Access to talent

6. Where crowdfunding is today
Source: crowdsourcing.org

7. Crowdfunding must be part of existing ecosystems
• Crowdfunding does not happen in a vacuum
• “Invest in Lines, not Dots” – venture capitalist, Mark Suster:
Images from bothsidesofthetable.com/2010/11/15/invest-in-lines-not-dots

8. Building an entrepreneurial ecosystem in your city
Funding platforms
Angel networks
Investor pitch events
Government programs
Accelerators
Incubators
Universities

9. Crowdfunding is about more than just startups…
• Raising advances for a film documentary in New York
• Expanding a mezzanine fund for Oil & Gas investments in Rio de Janeiro
• Reducing risk by „leading‟ rounds alongside new angel investors in Kiev
• Doctors financing R&D for new medical device companies in Sydney
• Alumni supporting their university‟s entrepreneurship in San Francisco
• Offering debt opportunities based on real estate in Geneva

10. Where crowdfunding is going next
• Powerful and informative provider of data
• Efficient marketplaces in diverse sectors
• Integration with the rest of the ecosystem
– Universities
– Incubators
– Angel investors
– VCs
– Institutional funds
• Co-investment models
– Active models where investors select companies one by one
– Passive models where investment decisions follow the crowd

11. Crowdfunding in connected
ecosystems
Paul Higgins
@paulhigginz
paul@crowdvalley.com