The Soho Loft, TSL, is organizing a capital market and crowdfunding conference in Los Angeles on March 13 and 14. In this remarkable moment in history, the U.S. regulatory environment, its capital markets and the innovation that drives those markets are simultaneously on the threshold of dramatic change. Grow VC is participating in the event panel, and Grow VC’s Co-founder Jouko Ahvenainen is speaking in the event. His presentation “Models and approach to building the new sustainable finance sector” illustrates new models for developing the finance and funding markets, and make them more effective, transparent and democratic.

1. HOME! STARTUPS! PEOPLE!
Models and approach to building
the new sustainable finance sector"
!
Jouko Ahvenainen
CAPITAL CREATION AND CROWDFUNDING CONFERENCE
Los Angeles, March 13, 2012!

2. Grow VC!
§ Is not a venture capital company, but connects
all parties in the global ecosystem, including
venture capital companies!
§ Global community & marketplace – “built to
scale”!
– Be global, act local!
– Global #1 platform for startup equity funding!
§ Grow VC platform is open for 3rd parties to set
up several market places, and other startup and
investor communities!
2 www.growvc.com

3. Grow VC has created an effective and transparent
online investing marketplace for global startup
ecosystem. – ”The Virtual Silicon Valley”!
3

5. The industrial age is over!
Destroyed by News Corp

6. Where are we today?!
§ Still in finance crisis where people have lost their trust
to financial institutions!
§ The stock market hasn’t offered really stable growth
for 10 years!
§ Many people losing their jobs, and other are frustrated
to sit in meetings and make PowerPoint slides!
§ Top percent is becoming richer, middle-class is
struggling!
§ Asia is taking over the global leadership in business
and finance!
6 3/8/12 www.growvc.com

7. HOME! STARTUPS! PEOPLE!
“You don’t have to be
Steve Jobs, to be
an entrepreneur”

8. Economy needs growth and
people need passion!
§ Our economy needs a boost!
1. Corporates don’t create enough new jobs!
2. New technology and business innovations drive growth!
3. Increasing global competition!
§ People need passion and meaningful work!
1. Many people are frustrated to their daily work!
2. Ordinary people could invest in startups their money and work
(‘sweat equity’) and also participate in something meaningful!
3. There is no one single model to work and invest anymore,
people and companies in different networks need models to
work, raise capital and invest!

9. Vision!
The next Silicon Valley is not a one location, it is a global
online platform and community of all locations !

10. Mission!
To have a market place and ecosystem to make company
funding more effective, transparent, and democratic
!
!

11. WE HAVE A DREAM:
more equal opportunities,
where entrepreneurs
and investors unite
to accelerate innovation

12. global
transparent
open
collaborative
efficient
scalable

13. HOME! STARTUPS! PEOPLE!
”You don’t have to be
Bill Gates to be
an investor”

15. Mobile Banking
Mobile
Banking

16. We have a problem!
1. The Funding market is inefficient!
- VC’s invest mainly in later phase companies!
- Business angel funding is often based only on personal or local networks!
- No liquid secondary market, and not enough IPO’s!
2. One model doesn’t fit all!
- Startups have very different risk and growth profiles, many of them are
not traditional VC cases!
3. Investing is not only about money!
- Companies need investors that can help with business around the world!
- Early phase companies also need core team members!
- For VC’s it is too expensive to allocate people for seed level companies!
16 www.growvc.com

17. Friends and families invest more
more than VC’s and angels!
1. Market efficiency!
– VC market includes $540 Million in transaction fees (~3 %)!
– Business Angels have limited investment deal flow!
– Households savings on the rise à where to place money?!
• US household savings almost $8,000 Billion p.a. (Feb 2011, Bureau of
Economic Analysis) !
!
2. Modern solutions bring efficiency!
– Kiva.org transactions over $200 Million in 5 years!
3. Market place!
– Large deal flow!
– Crowdsourcing for work and low transaction costs!
– Efficient due diligence (standard term sheets, including partners in process)!
– Efficiency enables agile funding !

19. More democractic investment market!
§ Open startup investment opportunity for more people!
§ Ordinary people or wealthy ordinary people (depending on local
regulation) can make direct or micro investments!
§ Work investments (Sweat Equity)!
§ For example, in the US there are over 6 Million accredited
investors, but only !
- 500k to 700k of them have invested in startups (as an angel or friends&family)!
- 100k to 300k are active business angels!
- A few hundred angels in Silicon Valley!
§ It is not only about ROI, but to support new ideas, technologies,
change and economy!
19 www.growvc.com

20. HOME! STARTUPS! PEOPLE!
”Everyone must start
somewhere”

21. Velocity
Lightweight
Flexible
Adaptive
Enabling platforms

22. Open
Open platforms
Open API’s
Open legal
frameworks
Global

23. P2P and Crowd-funding!
via Community Investments

24. Match-making and negotiation tools
for Private Investments!

25. Professional!
Work Investments

26. Now something new:!
Anyone can start own network

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

28. To resist will
lead to
financial and
organisational
exhaustion

29. Market Data = Time To Act is NOW! !
2007 - 2011! Last 12 Months +400%!
Live Trends: http://grow.vc/crowdfunding_trends!
!

30. CONTACT!
Jouko Ahvenainen
Grow VC – Co-founder & Chairman
jouko@growvc.com
+44 7889 833 165 (UK), +1 646 363 6664 (US)
http://www.growvc.com/
Twitter: @growvc
Facebook: Grow VC
Podcast: ”Grow VC” in iTunes!
30 3/8/12 www.growvc.com