Today an Indian publication discovered that the Grow VC India franchise is closed. The reality is actually even more exciting than that. Grow VC has closed down all franchising networks and early this year started the new Networks Program; anyone can start a crowdfunding service in minutes. And there are already over 300 networks like that.
Grow VC is well-known for pioneering startup crowdfunding on a global scale. We have also tested many models, along with them franchising in some markets early on in the market, while we focused on rolling out our global operations. This franchising model is also what we setup for India when Springboard Ventures approached us. This enabled us to accelerate our learning and compare activities on different levels and in different regions in a global market. We’ve focused on adapting with the developing market, for example this is what lead the change of the Grow VC subscription model to a free basic service already in 2011. The Indian service, operated by local partner Springboard Ventures, continued to utilize a membership fee after that.
We make decisions based on real data all the time. We measure results in local markets, making decisions on which operations and activities we want to develop and which we ramp down. This is normal in all new business activities, as new concepts must be tested in real life. It’s also true, that no one knows the ultimate solutions that go with the new market of equity crowdfunding.
Based on our learning, we have also launched a new model early in 2012, where local partners can sign up and create their own crowdfunding or startup service in minutes online and start with a free service on top of our platform. These partner networks are run under the partners own brand and rules, but instead of being isolated networks or platforms, these networks can be linked together and members can join any of the partner networks using same profile. This service is growing rapidly, with already over 300 networks operated by third parties globally and great case examples. We also plan to provide specific networks for specific purposes.
The new market is an opportunity to not only provide transparent and efficient infrastructure for the new entrepreneur and startup market, but also to connect stakeholders with one another both locally and cross borders. It offers great opportunities for those who operate in the startup market locally, like universities, incubators and angel networks to name a few, to bring all of these activities online for increased efficiency, particularly coupled with direct models in the future like crowdfunding, where local empowerment and interconnectedness can truly be a catalyst for innovation.
Beyond the new networks partner model, Grow VC has made its own full updated strategy and services for the market after the JOBS Acts implementation. You can already see the Grow VC Group web site and follow the breadcrumbs. What’s most exciting when the equity crowdfunding market really emerges, is that we have more real life data and experiences than anyone, from what works and what doesn’t work, on a global level. Needless to say, this is priceless. That’s why we can offer better models all the time. And one thing remains, the crowdfunding market is still in its infancy and all services must be developed over time to find the best models suitable for the growing market.
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This entry was posted on Monday, August 20th, 2012 at 5:37 pm and is filed under Entrepreneur Inspiration. 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.