Crowd-Based Investment Models!

Paul Higgins

Co-founder, Crowd Valley

October 3rd, 2013 Crowdsourcing Week Summit London

Overview!•  Crowd Valley – Crowdfunding Infrastructure

•  The Securities Crowdfunding Market •  Co-investment and Syndication Models

•  Development of a Support Ecosystem

@paulhigginz @crowdvalley

Crowd Valley – Crowdfunding Infrastructure!•  Technology and back-office service provider to online crowdfunding and

peer-to-peer marketplaces

•  Spin-off from Grow VC Group in 2012

•  US company headquartered in San Francisco

@paulhigginz @crowdvalley

Locations of Crowd Valley Customers!

Sectors of Crowd Valley Customers!

Early-­‐Stage  Tech  53%  

Real  Estate  21%  

Late-­‐Stage  /  High-­‐Tech  /  IP  

10%  

Energy  /  Natural  

Resources  11%  

Infrastructure  Assets  5%  

The Securities Crowdfunding Market!@paulhigginz @crowdvalley

Broad interest in entering the new funding market!

@paulhigginz @crowdvalley

New  EnDty  32%  

Broker-­‐Dealer  21%  

Hedge  Fund  /  PE  Fund  

8%  

Incubator  7%  

Angel  Network  7%  

Crowdfunding  PlaNorm  

6%  

University  6%   Other  

13%  

Interest  by  company  type  

Opportunities for authorized partners to support!

@paulhigginz @crowdvalley

Will  work  with  an  authorized  

partner  48%  

Already  authorized  

29%  

Will  apply  for  authorizaDon  

23%  

Interest  by  regulatory  status  

Most interest has directly followed regulatory activities!

@paulhigginz @crowdvalley

North  America  47%  

Europe  26%  

Asia  12%  

Africa  8%  

South  America  5%  

Oceania  2%  

Interest  by  loca2on  

Most interest has directly followed regulatory activities!

@paulhigginz @crowdvalley

0%  

5%  

10%  

15%  

20%  

25%  

30%  

35%  

40%  

United  States  

United  Kingdom  

Italy   Canada   India   France   Spain   Germany  

Interest  by  country  

Crowdfunding goes beyond startups!•  Expanding a mezzanine fund for Oil & Gas investments in Rio de Janeiro

•  Providing over-collateralized, real US asset-backed loans online to retail investors in San Francisco

•  Doctors financing R&D for new medical device companies in Sydney

•  Alumni supporting their university’s entrepreneurship in Seattle

•  Offering investment opportunities in real estate in London

•  Connecting traders of precious stones with professional investors in New York

•  Facilitating access to new asset classes for hedge funds and family offices in Bahrain

@paulhigginz @crowdvalley

Co-investment and syndication models!•  It is important to get different funding models to work together

–  Transparent models, fair agreements and opportunities –  Market value and market dynamics –  Continuity for future funding rounds

•  Different models are suitable for different sectors –  Non-securities models –  Equity financing –  Debt models

•  There can be several co-investment models; passive or active

•  It is important to build co-operation with traditional investors VC, PE firms and syndicated investor groups

@paulhigginz @crowdvalley

Co-investment models working with online platforms!

@paulhigginz @crowdvalley

Equity Crowdfunding Portal

Companies

Entrepreneurs

Marketplace

Investors

Accredited US investors

(JOBS Act Title II)

Aggregated Fund Fund

Offshore investment vehicle

Global investors

Limited Partner Private Equity or Hedge Fund as

co-investor

Angel Syndicates

Development of a support ecosystem!•  Front-end and back-end technology and services •  Investor accreditation

•  Online payments

•  Escrow and custodial services

•  Credit and background checks

•  Due diligence and valuation services

•  Online documentation filing and investor relations

•  Funding analytics

@paulhigginz @crowdvalley

Crowd-Based Investment Models!

Paul Higgins

@paulhigginz @crowdvalley

paul@crowdvalley.com