1. CHANGING THE RULES:
GLOBAL, TRANSPARENT AND
NETWORKED MODELS TO MAKE
BUSINESS
Jouko Ahvenainen
Grow Venture Community
Singapore – Infocomm Industry Forum
October 28, 2010

2. Grow VC - Everyone funding startups
FROM 2005 TO 2010
From distruption to networks
www.growvc.com2

3. The Network Society: Networks
cause a comprehensive
restructuring of society at
large, they are breaking old
models of organization.

4. 2005 - 2010
YouTube
20 hours video every 60 secs of every day
Facebook
500 million users
eBay
Over a Million people make their living there

5. Disruption
http://www.flickr.com/photos/naum/1639496461/

6. Facebook mobile

7. Google tv

8. …this networked society
thing is a vu jade
experience

9. The industrial age is over!
Myspace:
Destroyed by News Corp

10. Grow VC - Everyone funding startups
WHO SAVES OUR ECONOMY
Growth is needed
www.growvc.com10

11. Startups ARE the KEY to Growth

12. Yet early phase funding exists in a dysfunctional
system

13. Current Venture Capital
market

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

15. http://www.flickr.com/photos/16230215@N08/4066005402
Networked solutions =
new frameworks

16. “You don’t have to be
Steve Jobs, to be
an entrepreneur”

17. ”You don’t have to be
Bill Gates to be
an investor”

18. ”Everyone must start
somewhere”

19. global
transparent
open
collaborative
efficient

20. Trust Economy

21. Grow VC - Everyone funding startups
VIRTUAL SILICON VALLEY
Crowd-funding
www.growvc.com21

22. VirtualSiliconValley

23. Grow VC: everyone funding start ups
Professional venture capital funds have
become less relevant to the financing of
innovation for the time being

24. Vision
The next Silicon Valley is not a location, it is a
platform and community on the Internet

25. Grow VC - Everyone funding startups
P2P and Crowd-funding
via Community Investments

26. Grow VC - Everyone funding startups
Match-making and negotiation tools
for private investments

27. Grow VC - Everyone funding startups
Professional
service investments

28. Over 6,000
registered
members

29. approximately
1,200 startups

30. total investment
money over
$20M USD
People allocate money in startups and
invest in Community Fund

31. the first local network
started 3 months ago in
India, already now
almost 1,000 members
and cooperation with
local angel networks and
VC’s

32. more local
networks are
coming in Asia,
America, and
Europe

33. Grow VC China
10.10.10

34. Grow VC - Everyone funding startups
DISTRUPTION IN FINANCE
We are not alone
www.growvc.com34

35. Kiva.org
transactions
well over
$100 Million
in 4 years
Platform Model Crowdfunded
Prosper Peer to peer lending $210 M
Lending Club Peer to peer lending $170 M
Kiva Microcredit $165 M
Zopa Peer to peer lending $160 M
Kickstarter Supporting $20 M
MyC4 Microcredit $17 M
SellaBand Supporting $4 M
IndieGoGo Supporting $3.5 M
Betterplace Donating $3.5 M
RocketHub Supporting
Pifworld Donating $0.2 M
Kapipal Donating $0.1 M

36. Mobile Banking
Mobile Banking

37. 8 million subscribers

39. 2010, M-PESA
transferring close to
150M Euros per day, a
figure that would put
M-PESA transfer
business ahead of that
run by Western Union

40. txteagle workers are paid via MPesa
txteagle

41. Why must you
wait and pay when
you transfer your
own money over
borders

42. Networked - banking

43. Grow VC - Everyone funding startups
ARE WE READY FOR THIS
So what
www.growvc.com43

44. WTF!?
The quiet revolution of networks
& cooperation

46. Trust networks
challenge outmoded
models of control

47. Read & write, participatory, conversational:
markets are conversations, marketing is a
conversation, business is a social science!
A new language:

48. Co-creation + networked
economics + communities of
interest can be and are,
proven & powerful platforms
and processes to stimulate
innovation and commerce

49. Velocity
Lightweight
Flexible
Adaptive
Enabling platforms

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

51. Once upon a time “we” were atomized but
connected up to large organizations and big
media – today that power is eroding…

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

53. To resist will
lead to
financial and
organisational
exhaustion

54. Grow VC - Everyone funding startups
Grow Venture Community
Where do YOU start...?

55. Grow VC - Everyone funding startups
Jouko Ahvenainen
jouko@growvc.com
Tel (UK): +44 7889 833 165
Tel (HK): +852 8120 7854
Tel (US): +1 415 287 0854
Skype: jahven - Twitter:@jahven
www.growvc.com
Twitter: @growvc
Podcast: “Grow VC” in iTunes