Grow VC Group presentation in University of Oxford, Forum Oxford, on November 23, 2012. The presentation covers issues and new solutions for private company funding from seed phase to IPO, including crowdfunding and new solutions based on JOBS Act and open market places.

1. Grow VC Group :: ::
www.growvcgroup.com :: ::
@growvc :: ::
Disruption in finance: from seed to IPO
November 23, 2012 :: Jouko Ahvenainen
Forum Oxford 2012

2. :: :: Grow VC Group :: ::

3. Grow VC Group has grown to have globally 5 companies for new
3 investment models and growing number of portfolio companies

4. Grow VC Group ::
Finance and Services Infrastucture Portfolio
Samples:
4 11/22/12 www.growvc.com - confidential

5. Over 16,500 investors
Over 4,300 startups
Users from 200 countries
Almost $35 Million investment money
10% monthly growth
Dozens of investments, millions of money
Over 400 3rd party crowdfunding
network on the platform
The most global market place for equity
5 Nov 1, 2011 www.growvc.com

6. Anyone can start market place in Crowd Valley ::
Full solution: investment community, tools, payments,
backoffice and reporting – set up in a minute
6 11/22/12 www.growvc.com - confidential

7. Case :: CINTEP ::
First $100,000 from crowdfunding, excellent progress since then!
7 11/22/12 www.growvc.com - confidential

8. Case :: The Tip Card ::
Money and resources (Work Investments) thru crowdfunding!
8 11/22/12 www.growvc.com - confidential

9. :: :: From Seed to IPO :: ::

10. Startup crowdfunding system ::
10 November 22, 2012 www.growvc.com

11. JOBS Act in the USA ::
11 Nov 1, 2011 www.growvc.com

12. Several Investment Models ::
1. Direct investments!
- An investor invests directly in a company, become a shareholder,
company can have hundreds of small shareholders!
2. Investments through an instrument!
- An investor can select a company he/she invest in, but the actual
investment is done by an investment company that aggregates all
investments together, the investment company is the shareholder!
3. Crowdfunding of investment instruments!
- Crowdfunding model is used to raise capital in a fund and the fund
makes investments!
4. Co-investment models!
- Different models to make co-investments with crowdfunding!
12 11/22/12 www.growvc.com - confidential

13. Seed to IPO :: Broken Pipe ::
13 Nov 1, 2011 www.growvc.com

14. We can fix it ::
Phase Problem Solution candidate
Seed How to build the first version Angels, crowdfunding, new
lending models
Series A VC’s pick only a few Other funding models like
companies lending and crowdfunding
for no-VC cases
Series B to C No many investors in this New market place models:
area crowd-based funds,
syndicate market places and
instruments
Exit of The market is not liquid, i.e. Market places for different
investor very long-term investments, phases
before Exit decrease investment
willingness
IPO Big step Easier transition thru
different market places
14 11/22/12 www.growvc.com - confidential

15. JOBS Act is not only startup crowdfunding ::
Title II!
§ Online Solicitation of
Accredited Investors!
§ This part opens possibility
market, sell and trade private
securities in market places!
§ This part can have more
important influence on later
funding phases than the early
phase crowdfunding!
15 Nov 1, 2011 www.growvc.com

16. Many regulatory activities ::
ü US Delegation in Transatlantic Economic Forum
ü Cooperation with Singapore Government Investment
Company,
ü Crowdfunding Regulatory Intermediary Association
(CFIRA)
ü Crowdfunding Professional Association (CFPA)
ü National Crowdfunding Association (NLCFA)
ü European Crowdfunding Network
ü Cooperation with Securities and Exchange
Commission (SEC) and Financial Industry Regulatory
Authority (FINRA)

17. Disruption in finance and funding models ::
More open market!
§ Crowdfunding for early
phase is one components!
§ Important get different
models and phases to
work together!
§ Also traditional finance
sector has noticed
startups and private
companies!
17 10/16/12 www.growvc.com

18. A new language:
Read & write, participatory, conversational:
markets are conversations, marketing is a
conversation, business is a social science!

19. A
cultural
challenge
…for corporates
…for governments
…for human beings

20. To resist will
lead to
financial and
organisational
exhaustion

21. Grow VC Group :: ::
www.growvcgroup.com :: ::
Jouko Ahvenainen :: ::
jouko@growvc.com :: ::
+44 7889 833 165 :: ::