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Digital Investing and Lending Ecosystem Jouko Ahvenainen PODIM CONFERENCE – May 14, 2015 Presentation available on http://www.slideshare.net/growvc
• 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.
$905B
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
• 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
1: Startup Commons Tools for startup ecosystems to develop and measure startups
“Only things that can be measured, can be improved.”
startupcommons.org
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
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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 3 0 2 1
-2 -1 3 0 2 1
Startup Commons Back-end infrastructure
Startup Ecosystem Funnel
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startupcommons.org
2: Deal Index One Place Globally to Find All InvesAng Deal Flow and Data
Data becomes a powerful tool
Source: Deal Index Ltd., dealindex.co
Source: Deal Index Ltd., dealindex.co
Source: Deal Index Ltd., dealindex.co
Source: Deal Index Ltd., dealindex.co
3: Crowd Valley Full service pla3orm and backoffice to start a digital invesAng or lending service
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
• 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
• 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
Platforms for many assets and investment models
Source: Crowd Valley, Inc., crowdvalley.com
4: Grow Advisors Expert to help and build digital startup and finance ecosystems
growadvisors.com
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