1.
Digital Investing and Lending Ecosystem
Jouko Ahvenainen
PODIM CONFERENCE – May 14, 2015
Presentation available on http://www.slideshare.net/growvc
Grow VC Group ++
www.growvc.com ++
@growvc ++
MARKETS – ASSETS – CROWD ++
Copyrights © Grow VC Group 2015

2.
Finance and
Services
Infrastructure Consulting &
Professional Services
Grow VC Group ++
Hong Kong - London - New York - San Francisco - Milan
The Grow VC Group is a worldwide pioneer and leader in the crowd investing,
peer-to-peer and digital finance market.

3.
How is the landscape?
• Some
opinions
have
been
that
there
will
be
one
global
pla3orm
to
dominate
the
market,
like
Facebook,
or
at
least
like
eBay
• The
reality:
• There
is
and
will
be
strong
finance
(local
and
global)
regulaAon
to
this
market,
starAng
from
KYC/AML
to
required
informaAon
and
traceable
transacAons
• There
are
different
kinds
of
investors
from
supporters
with
$100
to
insAtuAonal
investors
with
$100M
• There
are
many
types
of
securiAes
and
asset
classes
and
investment
vehicles
and
models
• It
is
not
only
the
regulaAon,
but
also
investment
policies,
due
diligence
requirements
and
legal
responsibiliAes
• More
and
more
exisAng
finance
insAtuAons
want
to
use
online
models
and
processes
• This
is
not
only
about
startups,
this
is
about
all
kinds
of
securiAes
and
assets
• It
is
fundamental
to
think
and
build
the
ecosystem,
not
only
try
to
make
one
killer
app

4.
Think about the digital ad ecosystem

5.
And build a real digital investing
and lending ecosystem
Issuers
Investors
Investor
Side
Pla3orms
or
Dashboards
Digital
Market
Places
Issuer
Side
Pla3orms
or
Dashboards
Data,
Research
&
Services
Back
Office
Services
P2P
lending
Startup
crowdfundin
g
SME
funding
Real
Estate
Crowd
pla3orms
Family
offices
InsAtuAonal
Investors
Automated
Funds
Equity
offer
Borrow
request
Investment
vehicles
Directory
services
Source: Grow Advisors market analysis, growadvisors.com

6.
• The Challenge:
• The world’s largest and deepest market is very fragmented.
• It’s too difficult for investors to find companies, and vice versa.
• 3% of Accredited Investors participate.
• New finance regulation (JOBS Act) and other new rules will greatly
increase the size of the world’s largest market.
$905
B
Friends & Family
Venture Capital
Reg D
$75B$23B
Executive Summary
This is US only, but the phenomenon is global
It is the largest market in the world

7.
• No
one
can
build
this
ecosystem
alone
and
have
credibility
to
play
all
roles
• Extremely
important
to
get
new
digital
pla3orms
to
work
with
exisAng
investors,
financial
insAtuAons
and
professional
services
(e.g.
research,
analysts
and
underwriAng)
• Digital
services
can
cut
out
unnecessary
middle-­‐men
(e.g.
those
whose
posiAon
has
been
to
be
a
gatekeeper
to
informaAon,
deals
and
investors),
but
it
sAll
requires
top
level
value
added
services
to
help
all
parAes
and
bring
credibility
to
the
market
• The
winners
in
this
market
focus
to
do
their
own
part
very
well
according
to
laws
and
regulaAon
and
partner
with
other
similar
actors
Grow VC Group is a part of this but
important for everyone to partner

8.
Current Digital Investment Ecosystem Actors

9.
Build an open and networked ecosystem
Issuers
Investors
Investor
Side
Pla3orms
or
Services
Digital
Market
Places
Issuer
Side
Pla3orms
or
Services
Data,
Research
&
Services
Back
Office
Services
Source: Grow Advisors market analysis, growadvisors.com

10.
1:
Startup
Commons
Tools
for
startup
ecosystems
to
develop
and
measure
startups

11.
“Only
things
that
can
be
measured,
can
be
improved.”
startupcommons.org

12.
Build / Release Validate / Iterate
Ideation
Scalable product
or service idea for
a big enough
target market.
Some initial
business models
for how it would
make money. One
person or only a
vague team; no
confirmed
commitment or no
right balance of
skills in the team
structure yet.
Concepting
Clear and meaningful
target with direction for
at least 3 years with
milestones how to get
there, -> 3, 6, 12, 24,
36 months… Team of
two or three core
founding partners with
balanced ownership.
Can also already have
some extended team
with lighter
commitment (stock
options and or cash
compensation)
Commitment
Committed and balanced
founding team. Able to
develop the product or
service (Minimum Viable
Product) without
dependency of
uncommitted external
resources, or already an
initial product or service in
place. Existing signed
shareholder agreement
between founders, with
milestones, committed
time and money use, for
at least 2+ years with
vesting.
Validation
Can demonstrate
some user growth and
or revenue (initial
traction). Continue to
attract additional
resources (money or
sweat equity) for equity
or future revenue.
Looking for clear
market validation
(Product Market Fit), to
move into scaling.
Scaling
Showing a clear,
growing and
measurable user and
or market traction in
a big or rapidly
growing target
market. Can and
wants to scale fast.
May have attracted
significant funding.
Establishing
Achieved great growth,
that can expected to
continue. No longer
needs to struggle to get
resources and can
acquire those easily.
Continues to grow and
often wants to culturally
continue behaving like
a "startup" for as long
as possible. Founders
exit or continue
business as usual.
Minimum Viable Product
This work is licensed under the Creative Commons Attribution-Share Alike 3.0
Unported License.
To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/
or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco,
California, 94105, USA.
www.startupcommons.
org
Vision > Target > Mission Growth
Idea / Team Fit Product / Market Fit Business Model / Market Fit
STARTUP DEVELOPMENT PHASES
● Business Model Canvas
● Co-founder Team Building
Scale /
Expand
-2 -1 30 21

13.
-2 -1 30 21
Startup Commons Back-end infrastructure
Startup Ecosystem
Funnel
Applicants
Graduates
%
Entry per
source
Drop out %
Total #
Total
#
Total
#
Total
#
Total
#
Total
#
Applicants
Graduates
%
Entry per
source
Drop out %
Total #
Applicants
Graduates
%
Entry per
source
Drop out %
Total #
Applicants
Graduates
%
Entry per
source
Drop out %
Total #
Applicants
Graduates
%
Entry per
source
Drop out %
Total #
Indentified
Source
& paths
Total #

14.
startupcommons.org

15.
2:
Deal
Index
One
Place
Globally
to
Find
All
InvesAng
Deal
Flow
and
Data

16.
Data becomes a powerful tool
Source: Deal Index Ltd., dealindex.co

17.
Source: Deal Index Ltd., dealindex.co

18.
Source: Deal Index Ltd., dealindex.co

19.
Source: Deal Index Ltd., dealindex.co

20.
3:
Crowd
Valley
Full
service
pla3orm
and
backoffice
to
start
a
digital
invesAng
or
lending
service

21.
The Full Crowd Valley Offering
2nd
generaAon
pla3orm
with
configurable,
integrated
services
for
domesAc
and
global
transacAons:
• TransacAon
documentaAon
• Investor
educaAon
• Investor
verificaAon
and
accreditaAon
• AML
and
OFAC
checks
• Credit
and
background
checks
• Global
payment
services
• Custodian
and
escrow
services
• Private
company
research
services
• Broker
dealer
services
Each
service
is
an
opportunity
to
increase
revenue
for
Crowd
Valley.
crowdvalley.com

22.
• Multiple payment services providers
• “Know your customer” services
• Due diligence and data room services
• Cap Table/Share registry management
Our API: A Simple Solu=on to Complex Transac=ons
• Ongoing company/shareholder
communication
• Private company research
• Transfer documents and e-sign
Deal management
with automated
backend closing
processes
Flexible front-end
solutions for customer
acquisition
Simple investor and company areas to maximize
engagement and encourage investment
Automate the lifecycle of a deal:
23
crowdvalley.com

23.
• Fully compatible with the API
• Modern and intuitive features
Sleek Template or Custom Front-­‐Ends
• Suitable for all segments: private securities
marketplaces, VC, angels, brokers, peer to
peer, crowdfunding 24
crowdvalley.com

24.
Platforms for many assets and investment models
Source: Crowd Valley, Inc., crowdvalley.com

25.
4: Grow Advisors
Expert to help and build digital startup and
finance ecosystems

26.
growadvisors.com

27.
Key resources:
1. Digital finance and startup ecosystem competence globally
2. Real experience to build new global services from scratch
3. Pioneers of new online funding and lending models
4. Experience to work with regulators, decision makers and
legal experts
5. Competence from technology to regulation and business
growadvisors.com

28.
Jouko Ahvenainen
jouko@growvc.com
+1 646 363 6664 (US)
+44 7889 833 165 (UK)
Grow VC Group
growvc.com
Grow VC in Twitter, FB and LI
MARKETS
ASSETS
CROWD