Grow VC was created to fill a gap in the startup funding. Nowadays VC’s focus on more mature companies, and friends and family networks and local business angels are not a solution for everyone and don’t always support international business in the best way. Grow VC is the solution for early phase (less than USD 1M) funding. Its micro-funding model also helps other parties to make investment decisions, and its community can support startups and investors in many ways, e.g. to find experts, legal help, auditors, and find answers from peer groups.

When Grow VC now launches its full service, it soon starts to work with the traditional Venture Capital companies. For example, VC’s can “outsource” their seed funding to Grow VC and avoid typical problems for this phase, i.e. large deal flow that is difficult to evaluate, high costs to manage investments, and higher risk. Community Investment model will be used in the co-investment decision-making, and the Expert pool helps to observe companies that have got investments. This also gives a pole position for these VC’s to make investments during the following rounds.

Grow VC will publish more details of the model during the next months. We have already agreed the first VC’s partners for this model and also look for some additional VC partners to get a good global coverage for the model. This model is a unique opportunity for startups to get to work with VC’s in an early phase, and for VC’s this is an important opportunity to really work with innovate startups globally.

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Tags: Deal flow, Venture capital

This entry was posted on Monday, February 15th, 2010 at 2:29 pm and is filed under development, update. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.