The Place to Grow
Finance for Mobile and Internet Businesses
South East England Development Agency
October 15, 2009
The Place to Grow
1. DEVELOPING GLOBAL
INTERNET BUSINESSES
Challenges and opportunities
www.growvc.com2
The Place to Growwww.growvc.com3
Background
The business environment of fast-growth companies has changed significantly over the past 15 years Internet and web 2.0
spreading funding model
global #1 in their niche
VC’s and business angels – typically local
Immediately global web and mobile companies look for global smart money, not limited to single country or state
New funding models are needed for early phase, but also to cover the needs of different kind of companies not only one type risk money
The Place to Grow
Web and mobile businesses:new retail business
The new chasm is to get attention and
users
It is like to sell goods through
supermarkets, except No manufacturing costs
No logistical issues
The number of supermarkets and shelf space is
in principle limitless
To be successful Users must find your app directly, or
You must get good supermarkets to put your add
to good shelf space, or
Both of these options
Smarter analytics and personalization can
change this picture, but it happens slowly
www.growvc.com4
The Place to Grow
Go-to-market
Listen to market
Test your ideas and models
Light beta learn develop
Fast development cycles
Use the latest development tools
Think your business model
It can be free apps, but you should
have an idea to monetize
But don’t try to monetize too much too
early
Many concepts are easy to copy
build your brand and position
www.growvc.com5
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Challenges of funding market
Web and mobile enterprises ARE NOT only new technology enterprises and capital efficiency is high Open source, free tools, fast development
The challenge is to get users, not to implement a service
Funding requirements are changing
The role of early stage investors is very risky and often unprotected
Early phase funding is often too risky and expensive for VC organizations moving towards more mature later phase deals Only the market can often demonstrate the value of a new web or
mobile company
No patented technology or other concrete IPR’s
www.growvc.com6
The Place to Growwww.growvc.com7
Web and mobile services
funding
1. Immediately global mobile apps companies look for global smart money, not limited to single country or state
2. Step-by-step funding If you cannot start mobile apps business with less than $200k, you must re-think
your approach
Make it – launch it – improve it
Successful companies don’t do it immediately right, but they use money carefully and are able to change course as they learn
3. New funding models are needed for early phase, but also to cover the needs of different kind of companies not only one type risk money Someone can make simple apps for personal living without world-class ambitious,
and need some money to start
Another one what to create fast growing business with hundreds of apps
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2. GROW VC PLATFORM FOR
EXPERTS AND FUNDING
The first global concept
www.growvc.com8
The Place to Growwww.growvc.com9
The Place to Grow
Truly Global International Platform where investors, companies, and entrepreneurs can better meet each other and get tools to make transactions effectively
New type of investment funds
Grow VC has three revenue sources and Grow VC earning model depends on the success of start-ups
Includes several components:1. Match-making tools (between funder and entrepreneur)
2. Software platform for the community
3. Legal, monitoring and reporting framework
4. Involvement of top experts in venture funding and industry verticals
5. Growth and funding enabling services
6. Future steps like investment pool and community recommendations for investments
Grow VC model
www.growvc.com10
The Place to Grow
The Place to Grow
The Place to Grow
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June 2009: Private Beta Match making service for investors and start-up firms
Direct investments from private investors to companies
September 2009: Public Beta open for all users, and some additional features like:
Service / work commitment investments
Additional tools to manage business plans and negotiations
Coming soon: Investment Pool Totally new fund model
Anyone can be a Venture Capitalist
Standard templates to make investments in pre-defined locations
Timetable
www.growvc.com16
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Legal services
Experienced corporate and investment lawyers for helping companies,
investors, and entrepreneurs to make investment agreement and other
needed paper work
Auditors
Top tier audit firms for due diligences, audit annual reports, and maintain
reporting templates
Corporate finance and investment bank services
Top tier finance service companies for helping in investment process, help to
find later phase funding, and make exit
Banks
Leading banks for managing transfers and payments and cash for
investments
Grow VC Local Partnersexamples 1
www.growvc.com17
The Place to Grow
Local Authorities, Incubators, Accelerators
Support companies or holding companies in investment process, find co-
investors, and get business development services
Universities
Introducing university spin-off’s to real markets, to test traction. Build
international co-operation and contacts
Event organizers
Extend the reach of events to international marketplace, introduce new
startups and investors to network. Market events to Grow VC users for place
to meet face to face
Grow VC Local Partnersexamples 2
www.growvc.com18
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Investment policy
All start-up companies are web or mobile companies Company’s offering and products are or will be available and visible in web or
mobile
All members have a right to evaluate and rate companies The rating is directly used in the investment decisions
Investment money comes from private investors, entrepreneurs, and investment partners
Investor community also manages investment decisions
”Godfather” concept Companies can take a godfather that increase their credibility and the
godfather can be, for example, in the board after the investment
Gadfather can be e.g. an incubator, well know business angel, or well know expert in the business area in question
www.growvc.com19
The Place to Grow
Grow VC position
www.growvc.com20
•Match-making
•Service
investments
•New fund
model
•Support for
investment
process and
materials
Entrepreneurs
who looks for
funding
Investment
Partners, e.g. VC
Private Investors,
e.g. angelsStart-up
XXX
Start-up
YYY
Start-up
ZZZ
Investment decisions:
•Private investors
•Community of investors
and entrepreneurs
Investment process:
Managed by community
The Place to Growwww.growvc.com21
Summary
Grow VC International offers a new global service to enable early phase funding Focus on web and mobile companies
Targeted at web and mobile companies that need $10,000 to $1,000,000 funding
Total transparency is essential for the service
Grow VC will offer three main services:1. Match-making for business angels to fund investment opportunities and
for startups to find private investors
2. Service investment match-making, professionals can invest their time and work in startup instead of dollars
3. “Social investment pool”, i.e. open investment fund that makes investments into startups based on its limited partners voting decisions
The Place to Growwww.growvc.com22
Would you like to manage
VC money?
http://www.growvc.com/my-vc-money
Available soon in laptop near you
The Place to Grow
Jouko Ahvenainen
[email protected] (UK): +44 79 1248 1154Tel (US): +1 415 287 0854Skype: jahven
www.growvc.comTwitter: @growvc
You don’t have to be Steve Jobs to be an entrepreneurYou don’t have to be Bill Gates to be an investorEveryone must start somewhereGrow VC – The Place to Grow