Presentation about basics, regulation and models of crowdfunding and p2p finance, and some Grow VC Group history, to founders network members in San Francisco.

1. From startup crowdfunding to finance sector disruption
founders network
April 9, 2014 – San Francisco - Jouko Ahvenainen
Grow VC Group ++
www.growvc.com ++
@growvc ++
MARKETS – ASSETS – CROWD ++
Copyrights © Grow VC Group 2014

2. Copyrights © Grow VC Group 2014
Jouko Ahvenainen ++
Corporates: Entrepreneur:
Other Activities:
Transatlantic
Economic
Council
TOP 100
TOP 15

3. Finance and Services Infrastructure Consulting &
Professional Services
Grow VC Group ++
Copyrights © Grow VC Group 2014
Hong Kong - London - New York - San Francisco - Sao Paolo
The Grow VC Group is a worldwide pioneer and leader in the crowd investing,
peer-to-peer and online investment market.

4. Copyrights © Grow VC Group 2014
Market places in our portfolio ++

6. Copyrights © Grow VC Group 2014
#1 market place infrastructure ++
Technical platform, services like investor background check, investment escrow accounts,
due diligence services, credit check, transaction settlement, investor communications

7. Finance to a new era ++
Copyrights © Grow VC Group 2014

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

9. Copyrights © Grow VC Group 2014
Short history ++
• We were probably the first equity crowdfunding service, launched the startup
crowdfunding in 2009
– The regulatory environment was very complex then, and it was the main reason
not to start in the US.
• We have done a lot of pioneer work in the market and also work finance regulators
e.g. in the US, UK, EU and Singapore
• With new innovations it is always difficult to predict the timing
– We decided that our model is to survive and adapt until the market really takes
off
• Important strategic review in May 2012 à from startup crowdfunding only to Grow VC
Group
– Grow VC Group is more like a holding company that have majority share in some
key ecosystem and infrastructure companies and minority in vertical oriented
crowdfunding or p2p market places typically with a partner that has strong
competence in the vertical in question
• Crowdfunding concept has really grown from startups to all kind of securities and
assets
• Also institutional investors are coming more interested, i.e. diversify their portfolio
through automated co-investing and co-lending platforms, and e.g. avoid the costs of
funds.

10. Copyrights © Grow VC Group 2014
Internet has killed longtail in finance ++
• In many industries the Internet has created and amplified the longtail
business
– Google for advertising, eBay for trading, and services for music, books, videos
• In finance the influence has been almost opposite, when the Internet
has killed traditional market makers (e.g. the US IPO market
marketing and underwriting) due to regulation and machine trading
(speculation, not long position, oriented)
– Together this has caused e.g. globally poor IPO market: the pipe from seed
funding to IPO is broken
• Crowd investing (equity and lending models) are finally bringing the
positive Internet change for finance, and it is not only for early phase
startup market
– We already work with market places for companies in different phases, content
funding, commodities, real estate, energy sources

11. Copyrights © Grow VC Group 2014
Internet has been a distribution channel ++

12. Copyrights © Grow VC Group 2014
Disruption now – global virtual market places++

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Go back to the idea of stock market ++

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Create a new effective finance retail market ++
Crowd
investing
Market
Place
P2P
Lending
Companies /
Assets
Market Places Investors / resources

15. Copyrights © Grow VC Group 2014
New regulation is coming ++
Title
I
(Crea'on
of
EGCs;
“IPO
on
ramp”)
Largely
effec've
on
enforcement.
Title
II
(Amendments
to
General
Solicita'on/Adver'sing)
Effec've
since
September
2013.
Title
III
(Crowdfunding,
i.e.
investments
from
non-­‐accredited
investors)
The
SEC
collected
comments
by
January
2014,
now
SEC
processes
the
comments,
expected
to
be
effec've
in
6
to
9.
Title
IV
(Increasing
Reg
A
offerings
to
up
to
$50
million)
Not
yet
effec've,
date
unclear.
Title
V
(Increased
thresholds
for
registra'on
with
SEC)
Largely
effec've
on
enforcement.
Title
VI
(Increased
thresholds
for
registra'on
with
SEC
for
banks)
Largely
effec've
on
enforcement.
Read more: http://www.crowdvalley.com/1/post/2013/10/jobs-act-where-are-we-now.html

16. Copyrights © Grow VC Group 2014
Opportunity for traditional finance companies too ++
1. Funding
round or loan
application
• A company opens a funding round or apply a
loan
2. Crowd
investing or
p2p lending
• Crowd, i.e. ordinary people, can offer
an investment or loan, and if enough
money available, the company gets
money
3. Co-
investment or
co-lending
• A bank or investment
company can join to a deal,
i.e. make co-investment or
participate the loan

17. § http://www.growvc.com/blog/"
§ http://www.crowdvalley.com/news.html "
§ http://www.startupcrowdfunding.com/blog.html"
§ http://www.growadvisors.com/news.html"
§ http://www.startupcommons.org/blog.html"
Read more ++

18. Jouko Ahvenainen
jouko@growvc.com
+1 646 363 6664 (US)
+44 7889 833 165 (UK)
Grow VC Group ++
www.growvc.com ++
@growvc ++
Slideshare: Grow VC
MARKETS
ASSETS
CROWD