The Place to Grow

Finance for Mobile and Internet BusinessesSouth East England Development Agency

October 15, 2009

The Place to Grow

1. DEVELOPING GLOBALINTERNET BUSINESSES

Challenges and opportunities

www.growvc.com2

The Place to Growwww.growvc.com3

Background

The business environment of fast-growth companies has changed significantly over the past 15 years Internet and web 2.0 spreading funding model global #1 in their niche VC’s and business angels – typically local

Immediately global web and mobile companies look for global smart money, not limited to single country or state

New funding models are needed for early phase, but also to cover the needs of different kind of companies not only one type risk money

The Place to Grow

Web and mobile businesses:new retail business

The new chasm is to get attention and users

It is like to sell goods through supermarkets, except No manufacturing costs No logistical issues The number of supermarkets and shelf

space is in principle limitless

To be successful Users must find your app directly, or You must get good supermarkets to put

your add to good shelf space, or Both of these options

Smarter analytics and personalization can change this picture, but it happens slowly

www.growvc.com4

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Go-to-market

Listen to market Test your ideas and models

Light beta learn develop

Fast development cycles Use the latest development tools

Think your business model It can be free apps, but you should

have an idea to monetize But don’t try to monetize too much

too early

Many concepts are easy to copy build your brand and position

www.growvc.com5

The Place to Grow

Challenges of funding market

Web and mobile enterprises ARE NOT only new technology enterprises and capital efficiency is high Open source, free tools, fast development The challenge is to get users, not to implement a service Funding requirements are changing

The role of early stage investors is very risky and often unprotected

Early phase funding is often too risky and expensive for VC organizations moving towards more mature later phase deals Only the market can often demonstrate the value of a new web or

mobile company No patented technology or other concrete IPR’s

www.growvc.com6

The Place to Growwww.growvc.com7

Web and mobile servicesfunding

1. Immediately global mobile apps companies look for global smart money, not limited to single country or state

2. Step-by-step funding If you cannot start mobile apps business with less than $200k, you

must re-think your approach Make it – launch it – improve it Successful companies don’t do it immediately right, but they use

money carefully and are able to change course as they learn

3. New funding models are needed for early phase, but also to cover the needs of different kind of companies not only one type risk money Someone can make simple apps for personal living without world-class

ambitious, and need some money to start Another one what to create fast growing business with hundreds of

apps

The Place to Grow

2. GROW VC PLATFORM FOREXPERTS AND FUNDING

The first global concept

www.growvc.com8

The Place to Growwww.growvc.com9

The Place to Grow

Truly Global International Platform where investors, companies, and entrepreneurs can better meet each other and get tools to make transactions effectively

New type of investment funds

Grow VC has three revenue sources and Grow VC earning model depends on the success of start-ups

Includes several components:1. Match-making tools (between funder and entrepreneur)2. Software platform for the community3. Legal, monitoring and reporting framework4. Involvement of top experts in venture funding and industry verticals 5. Growth and funding enabling services 6. Future steps like investment pool and community recommendations for investments

Grow VC model

www.growvc.com10

The Place to Grow

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The Place to Grow

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June 2009: Private Beta Match making service for investors and start-up firms Direct investments from private investors to companies

September 2009: Public Beta open for all users, and some additional features like:

Service / work commitment investments Additional tools to manage business plans and negotiations

Coming soon: Investment Pool Totally new fund model Anyone can be a Venture Capitalist Standard templates to make investments in pre-defined locations

Timetable

www.growvc.com16

The Place to Grow

Legal services Experienced corporate and investment lawyers for helping companies,

investors, and entrepreneurs to make investment agreement and other needed paper work

Auditors Top tier audit firms for due diligences, audit annual reports, and maintain

reporting templates Corporate finance and investment bank services

Top tier finance service companies for helping in investment process, help to find later phase funding, and make exit

Banks Leading banks for managing transfers and payments and cash for

investments

Grow VC Local Partnersexamples 1

www.growvc.com17

The Place to Grow

Local Authorities, Incubators, Accelerators Support companies or holding companies in investment process, find co-

investors, and get business development services Universities

Introducing university spin-off’s to real markets, to test traction. Build international co-operation and contacts

Event organizers Extend the reach of events to international marketplace, introduce new

startups and investors to network. Market events to Grow VC users for place to meet face to face

Grow VC Local Partnersexamples 2

www.growvc.com18

The Place to Grow

Investment policy

All start-up companies are web or mobile companies Company’s offering and products are or will be available and visible in web or

mobile

All members have a right to evaluate and rate companies The rating is directly used in the investment decisions

Investment money comes from private investors, entrepreneurs, and investment partners

Investor community also manages investment decisions

”Godfather” concept Companies can take a godfather that increase their credibility and the

godfather can be, for example, in the board after the investment Gadfather can be e.g. an incubator, well know business angel, or well

know expert in the business area in question

www.growvc.com19

The Place to Grow

Grow VC position

www.growvc.com20

• Match-making

• Service investments

• New fund model

• Support for investment process and

materials

Entrepreneurs who looks forfunding

InvestmentPartners, e.g. VC

Private Investors,e.g. angels

Start-upXXX

Start-upYYY

Start-upZZZ

Investment decisions:• Private investors

• Community of investors and entrepreneurs

Investment process:Managed by community

The Place to Growwww.growvc.com21

Summary

Grow VC International offers a new global service to enable early phase funding Focus on web and mobile companies

Targeted at web and mobile companies that need $10,000 to $1,000,000 funding

Total transparency is essential for the service

Grow VC will offer three main services:1. Match-making for business angels to fund investment

opportunities and for startups to find private investors2. Service investment match-making, professionals can invest

their time and work in startup instead of dollars3. “Social investment pool”, i.e. open investment fund that

makes investments into startups based on its limited partners voting decisions

The Place to Growwww.growvc.com22

Would you like to manageVC money?

http://www.growvc.com/my-vc-money

Available soon in laptop near you

The Place to Grow

Jouko Ahvenainen

jouko@growvc.comTel (UK): +44 79 1248 1154Tel (US): +1 415 287 0854Skype: jahven

www.growvc.comTwitter: @growvc

You don’t have to be Steve Jobs to be an entrepreneurYou don’t have to be Bill Gates to be an investorEveryone must start somewhereGrow VC – The Place to Grow