(Image: jalanjalansingapura.com)

Join us this June 19th at Singapore’s most spectacular hotel Marina Bay Sands, for a thought-provoking knowledge-sharing event on mobile startups and funding innovations. The event jointly hosted by the Grow VC Group and Mobile Monday, will bring together mobile investors, startups, and experts to discuss latest insights as well as get to know each other better.

Lights, Camera, Action

The stage is set for a panel discussion between globally-renowned regional players like Meng Weng Wong, social engineer at accelerator JFDI.Asia; serial entrepreneur Milinda Kotelawele; Mohan Belani, founder of web innovation & media company e27; and telecommunications expert Alex Tan, to speak on topics ranging from startups and their current state of funding to mobile businesses in Asia and other new business opportunities.

Joining them and the other expert speakers will be Mobile Monday CEO Jari Tammisto and Grow VC Group chairman Jouko Ahvenainen, the brains behind this global event series (Read: Recap ’Where the Money Meets the Talent’ Mobile World Congress event in Barcelona). These founding members will bring to the table their rich experience with the changing paradigms of international investments over the last five years, including the open approaches to startup funding, those like crowdfunding, open market places and how best to get various investors to work together.

The event co-hosts, Mobile Monday or MoMo as they are called, further plans to be more active with mobile startup funding solutions, and these events are a part of that activity. The Soho Loft led by David Drake, who has been organizing capital creation events and advancing equity crowdfunding efforts globally, are an official partner too.

Need for such an Event

Since 2008 it has become difficult to raise money to VC funds, and there has been an increasing demand for startups to realize some significant results (e.g. earning revenue, acquiring users, etc) in order to validate their product demand. A big challenge for investors has also been how to explore new ways to raise money for their existing portfolio companies.

On the other hand countries and economies are looking for the kind of growth that traditional industry and investments aren’t providing, hence the need to encourage more innovative startups and investments to spur growth and help in job creation. This has brought together the private sector to work with governments keen on supporting and funding startups.

Looking Forward

Capital efficiency has been made easier, courtesy latest developments like free and low costs ICT solutions (cloud serves, email services, open source tools, etc) and low cost global distribution channels offering SaaS services and global mobile apps distribution. The future may well be of those who realize the optimal use and best practices of capital efficiency.

Future startup ecosystem players are also expected to witness an increasing integration of values such as co-creation, networked economics and creating communities of interest, in order realize powerful platforms and processes to stimulate innovation and commerce. Latest knowledge on investment models like crowdfunding, P2P investments and other emerging investment models will be crucial, looking ahead.

Reach out to us to know more about crowdfunding, P2P investments and how various innovative investment models can be integrated into businesses and work for you.

You’re there, that deadlock where negotiations have faltered and there’s nothing more to say. Or is there? A seasoned negotiator knows that there are ten ways you could still seal that deal:

1. Suggest a break. Although this sounds like a cop-out, it’s good psychology. Using the “let’s take a coffee break and come back to this” approach allows you to sweep the other party along for joint refreshments. Keep conversation friendly and low key, giving the other party a chance to get to know you on another level ~ at the very least, you’ll go back into the negotiations refreshed and with a greater understanding of the person you’re negotiating with.

2. Context is everything but it’s easy to get caught up in looking at things from one direction only, so try a different approach. For example, if the stalemate relates to costs, shift negotiations in the direction of terms or time-frame. This alters the focus but still keeps things moving along whilst both parties gain time to quietly re-consider those costing options.

3. If you have the upper hand in the negotiations but have hit a stalemate, then suggest a cooling-off period. It’s a risky strategy which isn’t recommended if you’re not in the driving seat, but if you are negotiating a deal that’s of greater importance to the other person, the chances are that suggesting an adjournment will re-open those immediate negotiations. However, do ensure you make the suggestion in a friendly, respectful way which is not dismissive or rude ~ you never know how much you might need this business in the future.

4. Be honest about what exactly the stumbling block is for you and why you are unable to relent in that area. This will invite the other person to do the same, in which case you are both still negotiating in a way which might allow you to identify a mutual adjustment and shared solution.

5. Consider how much you want this negotiation to work and what is the smallest compromise that you could make in order to secure this deal. If the compromise is possible, then offer it and move things along.
6. Be aware of your future prospects and dealings with your opposing number. Is it worth it to you to offer not just compromises, but sacrifices, in order to secure the deal and future business, a business equivalent of the retail ‘loss-leader’?

7. Ask for a legal opinion on the proposed contract. Most people respect the legalities of business and understand that this is a regular part of business agreements. In this instance, it not only keeps the negotiations open where they may have faltered, but also buys both parties valuable breathing space in which to reconsider those sticky areas.

8. However difficult the negotiations have become, don’t be trite or unprofessional in your dialogue. Using phrases such as “I hear what you’re saying but …” imply that you are actually rejecting their points. Turn this on its head by looking for joint solutions in a “so what can we do to make this work …?” kind of way, which shows that you’re not only listening but also trying to make things work in a professional and courteous manner.

9. Talk business. Literally, steer the conversation away from the sticking points and onto the greater topic of future business you could do together. Nothing helps encourage compromise more than the promise of future business and now’s the time to remind your colleague about this.

10. Keep something up your sleeve. Always go into a negotiation with a little something you could use for leeway, a special offer, deal or discount which can come into play as a ‘thank you’ for sealing the deal then and there. This in itself can often make the deal happen.

(Credit: broadcast-asia.com)

This June 18-21 expect the crowd of industry experts and thought leaders swarm the Marina Bay Sands for the BroadcastAsia 2013 exhibition and conference, converging with the CommunicAsia event.

If last year’s overwhelming global companies participation is any indicator, expect this year’s to be as exciting if not much more. This year there will be more than 700 exhibitors from 45 countries, showcasing some of the latest technologies and exploring exciting growth opportunities in the region.

Featured technologies include Over The Top (OTT) / Cloud Broadcasting, Multi-Platform Broadcasting, Satellite / Terrestrial / Cable Broadcasting, Digital Media Asset Management / File-based Production, DVB-T2, Digital TV / HbbTV / HDTV / InternetTV, Broadcast Automation, Infrastructure and Facilities, Production / Post Production Software, Content Editing / Colouring Restoration, Pro Audio Technology, Video Content Delivery Network, Broadcast IT Networking and Security.

Along with the record global enterprises and technologies on display, BroadcastAsia2013 International Conference boasts of 120 speakers from 31 countries. Further, this year there will be new event features like Country Focus, Broadcasters Exclusive Interviews, CIO/CTO Panel and Captains of Industry Dialogue.

There will also be a dialogue between renowned companies like Telecommunication operator Starhub, radio and television broadcaster Media Prima Berhad, independent production company activeTV Asia, broadcast technology company Grass Valley as well as radio and television broadcaster Media Prima Berhad.

Industry leaders at the event include the likes Nicholas Wodtke VP Content & Services Samsung, Fedor Ezhov COO SPB TV, Fintan McKieman CEO Ideal Systems, Felix Chandra CEO IMTV, Tae Sung Par CEO Vidiator, Sreedhar Subramaniam President & CEO ABNxcess and Brian Lenz Chief Innovation Officer of Astro.

In addition to the Broastcast International Conference, there will be the Creative Content Production Conference which will include interactive workshops, case studies, hands-on activities, all giving production professions a wholesome learning experience along with opportunities to network with the renowned industry leaders and expert speakers.

At the event, innovative investing and crowd pioneers like the Grow VC Group will also be sharing knowledge on crowdsourcing, crowdfunding and other innovative funding models. One major discussion point during the event, according to Grow VC’s Jouko Ahvenainen, will be how crowdsourcing and crowdfunding can work with the more traditional sourcing and funding models in order build optimal solutions. He has recently been featured by The Guardian discussing The convergence of peer-to-peer and traditional investment models.

To know more about what we mean join us and other thought leaders at BroadcastAsia 2013.

Grow VC Group has been invited to advise the European Commission on a regulatory policy and a framework for stimulating growth in the small and medium sized business sector (SMEs). Markus Lampinen from Crowd Valley (a Grow VC Group company) will appear before the European Commission on Monday in Brussels to share his views on the need for a uniform market in Europe and how to improve conditions for SME led innovation, growth and resourcing. You can read the main point’s of the presentation from Crowd Valley’s article.

Asia, with its vast pool of talent and market potential has been a hotbed for innovation and growth for a while now. We at the Grow VC Group have always had our focus on Asia, as much as other emerging regions of the world, having consistently reached out to various businesses and startup ecosystem players, and sharing our market understanding and insights.

Singapore, due to its proximity to the exciting South-East Asian markets as well as the major economies of China and India, has been a favorite for global startups and investors. From being voted among the top location for techies and those keen on maximizing their investment returns to being a known telco-friendly and environment-friendly country, the island nation offers a congenial environment for value creation.

Feel free to reach out to know more about opportunities in Singapore, including about its government grants and other assistance offered to growth companies seeking to establish presence or expand their business operations in Singapore and rest of Asia. We will also be there at Echelon 2013, Asia’s Largest Tech Conference, to be held 4-5 June 2013 in Singapore. In the meantime here are 11 things to look out for at Echelon 2013, as recommended by e27. Stay tuned for more events and updates from the region.

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Modern technology has made it easier than ever for someone to start a business and it seems like everyone is jumping in and launching a new business. Unfortunately, the average of nine out of every ten startups will end up going out of business, but the ones that do succeed do so with a vengeance. It isn’t easy to launch a new business, it takes a tremendous amount of work and there are no promises at the end of your work. The following five startups have not only been successful with their businesses, but most, if not all of them, have changed the lives for most of society.

HotMail

In 1996, two co-workers, Sabeer Bhatia and Jack Smith created HotMail, the first web-based email. The two entrepreneurs became frustrated over the firewall on their employers computer and began working on a web-based personal database, called JavaSoft. They could not access each other’s private email accounts to anonymously converse among themselves, so they came up with an idea, email accounts that were anonymously accessed through a web browser. It 1996 the idea became a reality and people could access email accounts from any computer. Within two years the Hotmail user base had grown faster than any other media company in history. Microsoft acquired HotMail on New Year’s Eve in 1997 for $400 million.

WebTV

Steve Perlman built one of the first network game systems and helped Apple bring color to the Mac and although these were big leaps for Perlman, he wanted something more. Perlman’s goal was to make shows on the web look as good as they did on a television screen. In 1995, he spent a weekend testing his theory by building a thin client to surf the web, using a TV for the display. His friend, Bruce Leak came over to see what Perlman had built and knew instantly it was going to be a success. The next goal was to bring the web into the living rooms of people everywhere as a way for them to have access to interesting content. After “tinkering” around a bit more, Perlman started up, WebTV and just over a year after designing the first prototype, the first WebTV set-top boxes were sold to the public by Sony and Phillips. WebTV, now called MSNTV, was bought by Microsoft in 1997 for over $500 million.

PayPal

In December of 1998, Max Levchin, a recent college graduate and Peter Thiel, a hedge fund founded PayPal. Levchin did not originally have any plans to create a company to do payments; he was more interested in crypto and security. Levchin went to a random lecture at Stanford, which only had 6 people in attendance, but it’s where he met Thiel. After the lecture Levchin invited Thiel to breakfast so he could pitch some of his ideas to him, Thiel was interested as well as encouraged to give his own ideas, which was using PDAs for a money transmitting service. This idea was only one of many the two entrepreneurs had through, before finally finding their niche, a web-based payment system. Their services soon became popular for online vendors, especially those who sold on eBay. In 2002, PayPal went public and later sold to eBay for $1.5 billion. The software that is still used by PayPal was Levchins software and it highly attributed to the success of PayPal.

Tripadvisor

TripAdvisor, an online travel site, was started in 2000 by Steve Kaufer, Nick Shanny, Langley Steinert and Thomas Palka. Kaufer became frustrated when trying to find information for a trip him and his wife were planning to go to Mexico. Kaufer and the others were frustrated at the lack of unbiased, yet useful information available for travels, so they create the site in order for users to not only find relevant information about their destination, but to read the personal reviews of others who had visited the hotels and attractions in question. TripAdvisor was started in the office space rented by Kaufers wife’s employer and in 2004 was acquired by Barry Diller’s InterActive Corp for $210 million. In 2006, with more than five million user reviews, information on more than 220,000 attractions and hotels, TripAdvisor is considered to be the world’s largest online travel community.

Craigslist

Craig Newmark’s famous Craigslist, started out as a local email list as a way to publicize events in the San Francisco area. When the list began to grow, Newmark switched from a mailing list to a website and began to add categories. In 1999, he decided to turn his hobby into a business, his plan to leave the site as community friendly as possible, continues with the site today. Newmark did not allow banners, advertisements and fees. The site was meant to be a free service for the community and he refused to change this. In 2004, eBay bought 25% of the company from a former employee of Craigslist, but other than that, the company remains to be privately owned. There are now more than 300 cities on Craigslist and there are categories for anything imaginable. As the founder of Craigslist, Newmark has an estimated net worth of over $1 billion, but he continues to work in the customer service department of the company.

Want to know more about Crowdfunding and how innovative investment models can be integrated into your business?  Subscribe to our newsletter or contact us to know more.

The Grow VC Group continues stronger than ever to develop new funding models for the transparent and open marketplaces around the world, with even more precision as the company’s many operations have been established in their own areas of focus with committed management in place. The units, such as Grow Advisors and Crowd Valley, are already servicing global customers and will have more to report from each of their respective websites. There are clear changes in the financial markets and in building global companies. The Grow VC Group is dedicated to seeing a new world emerge, with more transparency and efficiency.

In case you have any questions, please do reach out at info@growvcgroup.com

It’s also not everyday one makes it to the list of Top 100 Digital Influencers. The Grow VC Group Chairman Jouko Ahvenainen has been voted by the web community and a jury of digital experts to be among the NEXT 100 digital trendsetters. The NEXT Conference and T3N Magazine, both highly respected in Europe, had undertaken the process of public nomination, voting and jury deliberation in the run-up to the final list for 2013.

Jouko Ahvenainen, a serial entrepreneur, investor and crowdfunding pioneer feels making this coveted list is not only a recognition of his work but an endorsement of crowdfunding and innovative finance models across the internet.

Though Grow VC began with crowdfunding, today it has an overreaching influence across many business areas through several companies, many of which people are steadily getting to know of. The Group also has a strong global presence with its network of over 50 business and investment professionals spread across 6 continents.

On Equity Crowdfunding, while Mr Ahvenainen understands its importance and keen to see it become mainstream, he wants to further expand the same model for many other assets and investments, some of which the Grow VC Group has worked out along with its partners.

Honored to be part of this exquisite list, the Grow VC Chairman says this distinction will encourage him to work much more to influence the future. He would like to thank the Grow VC team for influencing the many finance and startup related activities around the world in the past 3 years as well as the Grow VC community and partner companies for this endorsement. Stay connected to know which of the Grow VC Group’s activities can work for you.

(Image: soevolve.com)

The desire for Internet to be in the palm of our hands is growing; more people than ever are using smart phones, iPods and other portable devices to check out favorite sites, download files and pretty much do the things that, not so long ago, would have taken place at a desktop computer. As people’s schedules get more hectic and demanding, many business owners have responded by ensuring that their mobile websites are accessible, user-friendly and just as efficient as their regular sites. If you own a small business, or work for yourself in a creative capacity, it’s smart to consider your mobile site’s design.

Why Make the Change?

We get it; you’re comfortable with the website you’ve had for ages and you’re wondering if implementing a mobile site is completely worth it. Well, here are the reasons you should take the migration to mobile seriously.

More and more people are going mobile
Smartphones aren’t just for high-powered business folk anymore; everyone, even your 11-year-old cousin, has one. In fact, smartphones have begun outselling personal computers! That means that you literally cannot afford to take a chance on someone missing your site by not making it mobile.

Lots of people search on the go
Let’s suppose you own a boutique of ladies’ clothing and you don’t have a mobile site. Think about how many women–your potential customers–are driving around town on Saturdays with iced coffee, looking for a place to buy a dress. They’re using their smart phones to determine where to shop, and your site needs to be available. Having a mobile site means that your business will appear on a search and potential clients will find you.

Mobile websites are easier than apps
People love apps, but developing an app is a much more complicated process than simply having a mobile site. For one thing, you have to develop an app for Apple, Android and BlackBerry markets. With a mobile site, potential clients can find you through a search engine like Google and not need to download anything that will require phone memory or wait time.

It’s only going to become more popular
Mobile sites are only going to gain momentum, so why shouldn’t you and your business find out what the fuss is about? Old technology doesn’t necessarily disappear completely, but it’s wise to understand new technology and make it work to your advantage.

Tips for Making your Site Mobile-Friendly

If you’ve been contemplating how your regular website needs updating, or a fresh look, why not implement a mobile site instead? Mobile sites are visited more and more frequently and it’s well worth your time to consider a mobile site as a new way to meet new clients. Below are a few tips to keep in mind when designing a mobile site.

Simplify your site as much as possible
Naturally, mobile sites are quite different from regular sites–or should be. If your regular site is already pretty minimal then you may not need to worry. But otherwise, be sure to pare down the graphics, menus, text and overall look of your mobile site. Make sure that everything is easy to navigate and read on a small screen; visitors to your site will feel frustrated if they can’t easily find what they’re looking for because your site is too complex for mobile use.

Limit the scrolling to one direction
On a mobile site, make it easier on clients by making sure they only have to scroll in one direction to read or find what they need. It’s aggravating to scroll both up and down and sideways in order to view a page on a touch screen.

Avoid pop-ups and windows if possible.
On a mobile site, it’s best to avoid pop-ups and extra windows, which can interfere with the browsing ease and experience on a phone.

Make sure navigation is easy
Nothing is worse than a bunch of barely-readable links to click with your finger on a mobile device. With that in mind, make sure that your mobile site allows easy navigation by making links larger, allowing space in between “clickable” areas and anything else that helps those who are viewing your page navigate it easily.

Don’t use too many images
We’ve been taught that images are great for marketing and that they entice users to your site. That’s all true, of course, but when it comes to mobile sites it is best to use few images–maybe even just your logo. After all, when viewing a mobile page, the point is to get the information necessary, not admire the page’s complex graphics.

Don’t forget to link the standard site to the mobile site
If your clients are navigating your site from something slightly more sophisticated, like a tablet, they may want to see your full site. Give them that option by linking it from the mobile version. This way, they’ll be able to choose what suits them best at that time.

Good luck, and remember that any successful business must keep up with the times. A mobile site will let your clients know that you’re reaching out to a modern audience.

(Image: sg.news.yahoo.com)

Infocomm Investments adds another feather to its cap of successful startup exits. The latest being Singapore tech security startup DS3 acquired by Gemalto, a globally renowned digital security company for an undisclosed sum.

Data Security Systems Solutions (DS3) main product ‘DS3 Authentication Server’ helps financial institutions prevent electronic data and information theft. At the time of its acquisition DS3 had a clientele of over 100, including several banks, government institutions and other businesses.

The company had been funded by Infocomm Investments in 2010, and much earlier during its inception by Infocomm’s parent agency IDA. According to an SGE article, the company which began operations in 1998, got a major breakthrough in 2009 after securing a partnership with IBM, helping the sale of its products globally. Now with offices already in Asia and North America, DS3 is currently looking to expand to Europe and South America.

The Grow VC Group, partners with Infocomm Investments, with its knowledge of global startups and understanding of Asian markets has enabled the setting up of growth-stage ICT startups in Singapore, for R&D and software development operations. A leading business center, Singapore offers a hassle-free environment, a vast pool of developer talent besides its proximity to major markets such as China, India and the rest of South-East Asia. Contact us for more information.

Jouko Ahvenainen will chair a panel discussion “Ecosystems Embracing Crowd Funding”, a topic of interest especially for Fund Managers, Broker Dealers, Asset Managers, University Alumni & Researchers, as well as Angel Networks, Incubators and Technology Transfer Offices.

The event will witness the sharing of best practices and success stories from key speakers, with the discussion focus on how equity crowdfunding works together with other investing, lending and funding models.

Sharing some of his insights in the run-up to the event, Mr Ahvenainen emphasized on how crowdfunding cannot be an isolated island, and that it’s crucial to link it to the existing funding ecosystem. Citing an example, he said in an early phase startup crowdfunding, this would mean cooperation with VCs, business angels, alongside incubators and other parties supporting startups. He further said in such an early phase scenario, it’s not only about the money, but to get all components needed to build a successful company.

The Grow VC Group sees the JOBS Act as having a lot of influence on the investing and funding market even outside the early phase startups, especially on the broker dealer market. It will basically open more new and effective online models for many investment services.

The Group itself is actively pioneering market initiatives in different ways, from offering platforms to operate their own crowdfunding infrastructure and platform development, to investment banking services to facilitate crowdfunding, P2P investing rounds and developing co-investment models.

The event has publications and film crews coming in for interviews, besides several confirmed media organizations covering it.

Sign up to be part of this leading event in Boston. You can also watch the event live.

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How is the startup scene in India – Is it thriving? What kind of companies are making it big? Where are the investments coming from? What is the support structure like? The questions are never-ending, the answers though, are a few and far in-between. India is a contrast to most other global startup ecosystems, where information on startup enterprises seem to be more organized and ubiquitous online. In India’s defense though, the country is a potpourri of a multitude of cultures and languages, and with 10% internet penetration (120+ million), it has its task cut out. All the more reason why efforts by Bowei Gai and Benjamin Joffe, working on India’s World Startup Report is a remarkable feat – be it comparisons with global powerhouses or the trendspotting and future forecasting efforts on the Indian technology startup scene.

An aspect in the report, which a couple of entrepreneurs pointed out as well, is they have missed out on the time-keeping trend. On ‘India time’ the report states ‘Due to culture & poor traffic, it’s expected that people will be late to meetings/events. 15min-1hr delay is common, but sometimes it can be as long as 2 hrs.’ Speaks volumes of the patience of the other party for waiting for 2 hours, or were they locked in?

Jokes apart, from recent meetings and events experience in India – be it at founders get-togethers, angels and startups meets or events organized by government industry bodies, they have all begun on time. While these may well be exceptions, there is a growing time-keeping trend among the business community. However just like the snake-charmer stereotype this too will take some exceptional work, until then Indian entrepreneurs will have the benefit of low time expectations.

Another perception mentioned in the report and one that might need a re-look is ‘In China, things happen because of the government. In India, things happen in spite of it’. While one cannot dispute the support Chinese authorities offer to businesses and the relative ease of paperwork there, it needs to be asked which of the central and 28 state governments in India are being indifferent to the promotion of enterprise and innovation. While much more can be done by the authorities in India, there are some initiatives by the government and related institutions that have a positive impact on startups development:

Public-Private Partnership for a ‘Silicon Coast’

A year ago India’s first Public-Private Partnership Startup Village was opened in the state of Kerala, a traditional non-IT centre. Set up in the suburbs of Kochi jointly under the country’s Department of Science and Technology and the state-run Technopark, and in collaboration with MobME Wireless, it aims to host 1000 ventures from campuses across the state to create, well, a ‘Silicon Coast’. Not a mean target, considering the inspiration they have from the award-winning mobile startup MobME Wireless, started by fellow college students in 2006 and one that is worth over INR 100 crores (US$ 18.5 million). The company which was on the verge of scripting a college campus to IPO (Initial Public Offering) success story, has now fine-tuned its strategy to raise funds via the new NSE (National Stock Exchange) SME Exchange platform.

Special SME Exchanges ‘Emerge’ to raise Capital

In a recently held Financial Excellence event by the Confederation of Indian Industry (CII), delegates felt the government with its recent initiatives wanted SMEs to think much bigger. This year’s budget proposals have paid more attention to startups, who along with SMEs, can now be listed at the two SME exchanges in the country, without having to go through an IPO (Initial Public Offering) and with a select investor base. NSE’s SME Exchange ‘Emerge’ was one of two SME Exchanges that was launched in India late 2012. The other being from the BSE (Bombay Stock Exchange). The platform, along with handholding and due diligence of startups keen to enter the fray, will share competent reports and maintain certain regulations to protect investor money. Initially with a select group of investors, the platform will steadily increase the investor base to benefit startups raising equity capital. Stay tuned for more updates.

Indian Public Banks for Innovative Venture Finance

At the same CII event, it was a welcome change to see Public Banks step up the ante in helping startups raise capital, witnessed from an informative presentation by an Indian Bank delegate. Supported by the Finance Ministry, 10 Public Sector Banks have been reaching out to new entrepreneurs setting up innovative projects. Some aspects of the evaluation model would include, the startup needs to have angel backing, and funding will be given upto a credit limit of INR 10 million. The select banks have also set up specialized cells and branches to market their venture debt scheme to innovative startups. Feel free to reach out for more details.

At the end of the day, while the governments and public funds are always there, it is for more private players and active startup supporters to help realize the success of innovative products and entrepreneurs.

Also, while ‘Information is Wealth’, its access is not the easiest in a large country like India, unless you have the right knowledge-partners, and those of us keen to develop the innovation space further.

(Image: digitaltrends.com)

Mobile banking has taken off in the last few years, and is likely to attract more consumers in 2013. For investors looking to expand their portfolio within the banking or financial services industry, mobile banking companies are making waves with significant growth trends in 2013.

Although mobile banking has been around for at least the last five or six years, large banking institutions are expanding and upgrading their mobile banking application features to stay afloat in a world that is constantly “going mobile”. Big banks are developing ways for their customers to pay bills, make transactions, and move money with nothing more than the power of their smart phones, while new mobile banks—banking companies that exist exclusively online—are popping up everywhere. These companies, like GoBank (owned by prepaid card provider Green Dot) or Simple, are the inevitable consequence of consumer demand for banking services that do not require traveling to a store or building, but rather through a mobile device.

Trend Data

As this demand grows, the mobile banking industry should be seen as an investment opportunity to those who want to diversify their investment portfolios and jump on board to a newly forming market directed at mobile and tech savvy consumers. A Wall Street Journal report made note that “Mobile banking represents roughly 8 percent of transactions, with online banking at (approximately) 53 percent and branches at 14 percent”, with trends growing in favor of mobile banking.

Currently, 57% of US consumers use mobile banking features, and by 2017, more than 1 billion mobile subscribers (15% of global mobile subscribers) will use mobile banking. This growth is unprecedented, and is likely why the industry is being eyed by key investment and market analysts.

Market Predictions

Mobile banking has always been a hot topic in the industry, and a half-decade of mobile banking has allowed for market analysts with enough data to make some interesting insights regarding its trend. According to BankTech.com, mobile banking has become so significant, some analysts have already concluded that it has “displaced desktop-based internet access and will soon become the preferred vehicle for carrying out banking activities.” A few other mobile banking market predictions include:

• Natural language queries will provide customers with the ability to interact with a banking app similar to a conversation with a bank teller or a customer service representative.
• “[T]he tipping point for smartphones has already arrived. However smartphones are predominately used for transactional or quick access, such as looking up restaurants, products or transit information. A consumer is more likely to use a tablet or a desktop for more analysis-based activity […] In terms of banking, one can think of transactions being completed through mobile devices, but budgets or financial planning will still be done on desktops, potentially to be replaced by tablets.”
• Cross integration will allow a customer to begin a banking enrollment or query or banking function on a mobile phone and complete it on a desktop. “Customers will be able to access their mobile applications through the car voice system or screen. And, they will get critical alerts on television. Enterprises who adopt this paradigm will create solutions that are likely to garner significant distinction in the coming year.”

For investors, this translates into a multifaceted opportunity, both in mobile banks as well as the technologies that make various functions of mobile banking possible.

Grow VC Group Chairman, Jouko Ahvenainen, in his presentation spoke about the latest changes in the finance sector. It included sharing the more effective models with less of middle-men, and how peer-to-peer models were increasingly becoming necessary. In the startup sector this model could mean crowd funding, while larger finance sector players are becoming more aware of this trend by identifying P2P hybrid models for their businesses. Ahvenainen also spoke about how regional investors and ecosystem developers are becoming more important. Liverpool’s case as you would find below is an example, but another example is Singapore’s pro-activeness in developing the startup ecosystem by being a bridge to the Asian markets and also offering startup investments.

(In picture: Jouko Ahvenainen)

Ahvenainen further emphasized on the importance of startups in economic growth and creating work opportunities, and felt more money was needed in this area. He echoed sentiments that VCs were mainly interested in a minor percent of all small and medium-sized businesses, and the challenge traditional VC funds faced in raising capital, gives room to more innovative funding models. He felt while public funds may play an important role in several places, it was equally essential to raise enough private money.

Gary Stewart from Telefonica Wayra spoke about how it was really important to support startups with several incubation models and help them get funding. He mentioned about how top-level politicians around the world and also Telefonica’s top management were very committed to building the startup ecosystem further. It’s worth mentioning that Wayra operates mainly in Europe and Latin America. He was also of the opinion that Europe lags behind the US in startup activities, and an indicator of this he says, was how large European companies are typically much older than the large US companies.

(In picture: Gary Stewart)

Kevin McManus from Liverpool Region Development Organization offered to share how Liverpool was committed to developing the startup ecosystem. Along with having developed infrastructure and services for startups, they also have their own investment fund for companies that are keen to set up operations in the region. Feynlabs, an education startup on programming languages for kids is an example of startups that have seen Liverpool as an interesting place to start operations. Liverpool is a good example of a global trend, where many governments and regional organizations are willing to develop their local startup infrastructure along with the setting up of local funding models and instruments.

(In picture: Kevin McManus)

Krishna Visvanathan from DFJ Esprit talked about the state of the current VC market. He mentioned that DFJ Espirit were actively looking for new deals all the time. When asked to list the one mistake a startup can make that immediately destroys his interest in the startup, he answered “if they (startup) say they have no competitors, it tells you (investor) they think too narrow about the market or they don’t know their business (well)”.

(In picture: Krishna Visvanathan)

Nokia’s, Microsoft’s and Aalto University’s AppCampus were also represented at the program. They presented grant offerings for mobile app startups that are willing to develop apps for the Windows Phone ecosystem. What’s special with their grants is they don’t dilute the ownership, but the startup must commit to an exclusivity period during when the app will be available only for Nokia’s and Microsoft’s ecosystem.

(In picture: AppCampus slide)

Coming to the panel session, Lionel Slusly from Loft Finance,  Rahim Adatia from Paypal and Jouko Ahvenainen‘s discussions revolved around the likes of crowd funding models, differences between Europe and the US, and a look at the most promising new areas in mobile business. Rahim Adatia, who has seen tech and startup business in London and Silicon Valley, emphasized how the funding ecosystem works better in the Valley, including the cooperation between different kind of investors, Business Angels and VCs.  Lionel Slusny saw crowd funding as a huge opportunity for Europe to raise more startup funding. The panel also concluded that B2B startups are becoming interesting again and expect to see more exciting new mobile startups offering B2B solutions, especially in the finance and media sectors.

Ajit Jaokar, Serial entrepreneur and author, who hosted the funding event and discussions, concluded it was an excellent event that shared how various models of the startup funding ecosystem are being developed currently around the world.

(In picture: (L-R) Ajit Jaokar, Lionel Slusly, Rahim Adatia, Jouko Ahvenainen)

With the startup funding market going through many changes and the mobile business an important part of this ecosystem nowadays, Grow VC, Mobile Monday and The Soho Loft plan to continue with the series of funding events at upcoming mobile conferences in the Middle-East (Baku), Asia (Singapore) and the US (Las Vegas).

The Grow VC Group, having seen an increasing demand for the Crowd Valley P2P investing platform globally and the need for Grow Advisors services in building this kind of an ecosystem, will additionally launch its own co-investment vehicle in this area of expertise. Watch this space for more.
The Grow VC Group represents crowdfunding, peer-to-peer investment models, global business development programs and service providers for companies and investors. The group comprises of proven global professionals, with real entrepreneur and personal investment track records spanning decades and continents.

Press release – February 26, 2013 – New York, London, Hong Kong

The Soho Loft Capital Creation Events (TSL), a New York based crowdfunding media group, and The Grow VC Group, a globally operating peer-to-peer investing services group, have agreed to create a joint venture that focuses on developing crowdfunding, p2p investments and new funding model media services.  The new JV, Soho Grow Inc., creates content for crowdfunding media, events and services, and collects market and services data to supply market research information. The TSL organizes, produces and sponsors over 250 events annually and globally while creating content for many top tier publications.  The blogs, podcasts and newsletter produced regularly by the Grow VC Group have positioned the company as a leading crowdfunding information source.  Grow VC also organizes funding events, for example, for Mobile World Congress held this week in Barcelona. Together TSL and Grow VC will be the world leading information source for crowdfunding globally.

David Drake, the CEO of The Soho Loft comments, “We are very excited about this cooperation. We can combine The Soho Loft’s media and event experience with Grow VC’s market knowledge and information. This cooperation helps us to build world leading media services for new funding models and it is also aligned with our global expansion.”

Jouko Ahvenainen, Chairman of Grow VC Group, says “We have already cooperated with The Soho Loft and seen a lot of synergies. Companies and people want to learn more about crowdfunding and new investment models because the traditional finance market is struggling. We believe this cooperation will be excellent for the whole crowdfunding market and it helps both groups to focus on their core businesses.”

TSL is a leading financial innovation media company for crowdfunding and contributes and writes for publications such as Forbes, Bloomberg and Thomson Reuters. Grow VC Group has services and companies like the global crowdfunding market growvc.com; Crowd Valley Inc., which offers a p2p investing platform and backoffice; Grow Advisors, a leading consulting and investment banking services firm for p2p investing, and Mutual Seed Fund, a p2p investing fund. TSL and Grow VC see strong demand for crowdfunding, p2p investing and finance 2.0-oriented content and research information.

“This is no longer only about startup crowdfunding.  We are starting to see the biggest change in the finance services to occur in the last century as p2p models make many middlemen useless and markets become more effective. This revolution needs its own media”, maintain David Drake and Jouko Ahvenainen.

About The Soho Loft
The Soho Loft Capital Creation Events (”TSL”) is a corporate strategy and advisory services company specializing in financial innovation. Through its global events and media platform it advances diligent and innovative investing for start-up entrepreneurs and small and medium-sized enterprises. TSL provides visionary leadership and relevant education in the areas of capital formation, crowdfunding, angel investing, non-conventional funding, eb5 green card programs, micro-finance, venture capital, private equity and hedge funds.

About The Grow VC Group
The Grow VC Group represents crowdfunding, peer-to-peer investment models, global business development programs and service providers for companies and investors. The Group is a global pioneer and leader in the p2p investment and business development market. The Grow VC Group comprises of proven global professionals, with real entrepreneur and personal investment track records spanning decades and continents. The Group is recognized as a leading innovator of crowd-based investment models and open marketplaces, for asset classes starting from early stage ventures to various verticals. Grow VC Group includes, for example, Crowd Valley Inc., growvc.com market place, Grow Advisors, Mutual Seed Fund, ChangeLab23, and several portfolio companies.

(Image: droid-life.com)

The all-new iPatch is an Augmented Reality (AR) technology Head-Up Display (HUD) device with computer-generated and object recognition sensors that bring together data from the digital world and the physical world, real-time.

The ultra slim iPatch has every detail crafted to the user’s personal choice, and can be shaped into a classic pirate-worn eye-patch, stylish glasses and even a one-of-a-kind ‘I’ll be back’ designer shades. The iPatch has no boundaries.

Earlier, at an event in Singapore I was privy to an angel investor sharing his candid views of early-stage startups and the kind of questions startups should expect from investors. Let’s see how iPatch shapes up to these 4 pertinent questions -

 Can you deliver significant differentiation over your leading competitors?

The competitor in the case of iPatch is Google Glass. iPatch with access to mass market manufacturing and vendor technologies like Gaze-interaction, will be much more cost-effective than the less than $1500 Google Glass.

Also with iPatch’s aggressive distribution strategy in place, where design experts coordinate with ophthalmologists to create the kind of eye wear sold by optical accessory centers. iPatch will also reach out to leading electronic stores for a wider distribution.

Can you evolve your product to compete in the mainstream market?

(Image: blogs.unimelb.edu.au)

Besides the cost-effectiveness and the extensive distribution network, this sleek handy device will have a therapeutic effect. It can reignite brain processing in either eye by facilitating the optic nerves’ brain functions to realize the wearer’s visual on-demand instructions.

This iPatch brain wave interaction can further activate meditative elements that alleviate stress, induce sleep or create an ambience of relaxation for the user. These findings are from extensive research, one that the iPatch team would invest in, working closely with lens pioneers.

Is it a profitable customer segment?

Global eyeglass market is set to reach US$95.66 billion by 2015 according to a report by Global Industry Analysts. Add to it the exponentially growth witnessed by tech accessories sales, you get a lucrative customer segment. Mass production and distribution of the iPatch will add to the profit margins.

Is the addressable market large enough?

Currently close to 500 million people wear glasses, with the numbers set to increase dramatically if the fourth of the world’s population that’s nearsighted, and the 30% farsighted people are tapped. There’s also a fast-growing market of eyewear as a fashion accessory.

According to the National Eye Institute statistics, 75% of Americans use some form of corrective lenses, with 64% wearing glasses and 11% contact lenses. With the focus on cost-effectiveness and efficient distribution mechanism, the addressable market will include the emerging word as well.

With these 4 questions dealt with, you can expect a rush of angels, and even an opportune time to ask your questions for potential angel investors.

Now for the grounding truth, if you hadn’t figured already, the iPatch doesn’t exist. It however helped us in understanding what strikes resonance with Angel Investors. Want to know more about startups investments? Let us know.

The funding market has many issues, opportunities and new models. The conference has a top-level group of industry experts to talk about funding from several different angels. The conference has CEO’s and Partners from finance companies like AppCampus, Grow VC Group, Nexit Ventures, DFJ Esprit, top level executives from mobile industry from Paypal and Wayra, and many more on-stage for a deep dive Q&A sessions on emerging funding models.

More information of the event event, content, and speakers at Grow VC Group web site.

(Image: us.123rf.com)

What a year it has been, 2012 has seen our big ideas, innovation and enthusiasm, those representing the year of the dragon, take shape. Now as we move on to the year of the snake, the steady progress and attention to detail it symbolizes are qualities very much in line with Grow VC Group’s current outlook and activities. Now it is time to continue work systematically and also get all details right for equity crowdfunding.
Here’s a look at some of our focus:

Crowd Valley
A reliable crowdfunding platform for anyone who wishes to leverage crowdfunding. In addition to the ‘Crowdfunding Infrastructure’ offering, Crowd Valley works closely with regulators and other finance sector companies to build a solid legal and other effective solutions for crowdfunding.

Grow Advisors and Mutual Seed Fund
These companies work to further advance the crowdfunding ecosystem. We at Grow VC Group see crowdfunding to be not just requiring some websites, but also the need for a whole ecosystem to be established, which includes investor cooperation, technical expertise and latest investment tools.

Looking Ahead
Thinking beyond startup crowdfunding, we have already seen how broker dealers, commodity traders and larger investors are evaluating new models to make good use of the same concepts and we are well placed to help them realize their objectives. 

(Image: philnews.ph)

Also, the Asian market is very important for us – apart from our existing business developed, and with our partners, we are keen to bring in more new services and solutions designed for our Asian companies and investors.

In this year of the Snake, we are determined to create a solid foundation for crowdfunding and investor protection, as well as keep pace with the new models to fit the changing world. With the flexibility, close monitoring and an uncompromising longterm commitment, we are confident of another great year. These qualities also define a Happy Chinese New Year of the Snake.

恭喜发财! (May you have a Prosperous New Year!)

This post focuses on crowdfunding as a whole, including pre-purchases and donations. Whereas securities crowdfunding in the US is still being worked on by the SEC, it is flourishing already abroad.

Crowdfunding Startups in 2013 – Age Of The Independent

In 2012, crowdfunding suddenly exploded in a way that nobody could have predicted. The line between the customer and the investor blurred forever, and people found that their entire careers were lining up in front of them because finally they could side-step all the middlemen and just get down to doing what they do best – offering amazing products and services to other people.

It’s also proven itself as the arguable way forward for startups, given that it offers them the freedom to operate without an overbearing investor – in the traditional sense, at least. You’ll find it somewhat unlikely to have someone Kickstart you for half a million by themselves, so there’s very much a sense of people just wanting to band together and push you to the top of a very steep hill.

It also means you’re not starting out broke, and that’s a huge deal for startups that avoid big investors and work for free until they’ve got something to sell. No sleeping in offices, starving as you code or worrying about where you’ll work when Starbucks kick you out. While there is that scramble to reward your backers with anything from tshirts to their name in the credits – even to meeting with them in person – you are now able to be independent, and avoid poverty.

Crowdfunding has also enabled consumers to finally have a say in some aspects of the product and  in a way that startups actually benefit from. Frequently, startups have to go and find people to talk to them about their product, but if someone’s thrown thirty dollars at it before it’s released, they are naturally compelled to offer feedback and ideas, and this kind of crowdsourced testing and thinking circle are invaluable assets to a company looking to make something big. 

There are some great examples of conversations between the funders and creators. GameStick is a sound one to start with – a USB stick and controller that turns your TV into an Android-powered gaming experience. It sounds ambitious, but the staff have had a constant dialogue with backers, answering questions and thanking people for their support. Even a temporary yank from Kickstarter for alleged copyright infringement hasn’t dulled their spirits, or those of their backers, and they continue to keep things positive and fresh.

Now, there are examples of Kickstarters where a lack of that connection can really be a problem. Code Hero is a game that teaches people to code as they play it. But after rumours came out that the developer had run out of money, the commenters were infuriated at the lack of creator response on the page. This swiftly led to backers mobilising their legal forces, and only then did the creator respond. It’s worth taking away from this that if you’re not willing to run things like GameStick did, then you face some serious challenges from your backers when the lack of info goes from annoying to sinister.

So if you are considering funding your next startup via the public rather than slogging something round all investment companies and angel investors, then you should be on the right track. Big investment companies, if anything, will now do more for you in order to secure your product than they did before – suddenly, they’re not as important, and that turns the tables in a way that benefits startups. They have the power and the appeal, now. So starts the age of the independent.

We asked Dan how he developed the idea for Clarity, how he managed to sign up experts of the caliber of Mark Cuban, Eric Ries and Brad Feld, and how he’s feeling about his mission over the next decade.

You can listen to the podcast by clicking here or by subscribing to the Everyone Funding Startups iTunes channel.

You can look through the experts available to give you advice on Clarity by going to www.clarity.fm, and you can reach Dan on Twitter @danmartell or by email at dan@clarity.fm.

Thanks for tuning in to this week’s episode of Everyone Funding Startups. Check out our new podcast page at EveryoneFundingStartups.com.

(Image: teampedia.net)

A major advantage of being an entrepreneur is since there’s rarely a set path, the entrepreneur has the much-cherished freedom to pursue goals in his or her own way. The media’s coverage of entrepreneurship success has often been attributed to the entrepreneur’s business acumen and people-management skills, and rarely are creativity in the entrepreneur’s pursuits explored. Few have tried to draw a link between creativity, freedom and entrepreneurs.

Now with the global unemployment numbers set to exceed 200 million people, according to a UN report, the calls for more creative startups and creativity in existing businesses have grown louder. Well, there have been many creative business leaders of our times- those like Virgin’s Richard Branson, Evan Williams of Twitter, the former chairman of Toyota, Shoichiro Toyoda, and not to forget Steve Jobs, were all highly creative and it showed in their works.

The reason why creativity has got disproportionate focus in it’s reporting is probably because its role can rarely be quantified and if it is, it doesn’t always generate profits. Not just in their innovative products and solutions, an entrepreneur’s way of doing things can also be creative and have a lasting impact. Here’s a look at recent efforts to change the way entrepreneurs move around, find customers and endure their working relationships:

Startup Stay’s transforming the way entrepreneurs travel

You may still have to pay $100 to chat with Mark Zuckerberg, and put aside plans asking him to host you, but there are 100s of other entrepreneurs world-over willing to have coffee with or even better, host you at their place. Startup Stay helps entrepreneurs, especially startup entrepreneurs, to connect with other like-minded entrepreneurs when they travel. Imagine a Swedish entrepreneur being hosted by a Singaporean entrepreneur, exchanging business insights of their respective countries. Or an American entrepreneur seeking to gain local knowledge and save on accommodation costs by being hosted in North Korea. True, not every business meeting ends on a happy note but there’s indeed a window of opportunity to be explored.
While Startup Stay is still in its infancy, going by the recent traction these sure are exciting times for entrepreneurs who travel.

Rock-Paper-Scissors with Facebook, Amazon, IBM executives

Breaking the ice with people is always a challenge, especially when the other person’s a busy senior executive of a globally renowned company. Well, Jerome Jarre of a startup called Atendy did just that at a GigaOM Amsterdam event – where he broke the ice with VPs and executives from Facebook, Amazon and IBM by playing Rock-Paper-Scissors with them. The deal was if he lost they could write anything on his shirt but if he won they needed to introduce him to the head of events at their respective organizations, prospective customers for him. He did win, and big time. Now that there’s a déjà vu in Rock-Paper-Scissors, it’s time to try something else.

When entrepreneurs cooked, played & took photos together

A week long event, 14-20 January, JellyWeek brought together 254 host entrepreneurs from 44 countries to work on activities of their choice. Many of these participants were seen actively co-working via Google+ Hangouts, discussing various topics and celebrating work. It included entrepreneurs cooking together and sharing recipes, writing a book, picking up languages, playing chess, learning photography, web design and even how to make ice-lanterns, besides doing serious stuff with hacker spaces and the chambers of commerce.

What stands out in all the above are they explore fun to bring purposeful entrepreneurs together and are free to participate in. What’s outstanding though is these entrepreneurs have gone beyond their call of duty and outside their comfort zones to act on their creative ideas – a big difference there.

VC Business Funding: the Paperwork!

(Image: newsnewmexico.blogspot.in)

Submitting paperwork for business funding is probably the least enjoyable part of the entrepreneur’s job. If not done right, the outcome will be disastrous. Here are a few tips that can increase your success ratio.

Timing and documents
You may think that writing an extensive business plan, and putting your heart and soul in it, is the first thing you need to do. Obviously it is good practice to get ‘all your ducks in a row’. It helps you get focused and starts a process of introspection, testing, expressing yourself and presenting your idea to outsiders. However, in terms of what the investor wants to see, a business plan is not the right document to start with. Investors are looking for a quick introduction to your business. They want an executive summary, a document that explains in maximum a few pages what your business is all about. It is also handy to have an even shorter version available. To get the attention, some ‘deal flow’ sources work with ‘teasers’ or ‘short exposes’. Just a few paragraphs offer the investor the basic idea. With this information the investors can sort through many deals, and look for the industry or type of business that they are interested in. The next step will be when they ask for the executive summary, and that’s when they will really start to read more attentively. From there they will request business plans and financials for further review. Next come initial investor contacts and due diligence sessions. The basic idea is ‘to get noticed’ using as little words as possible. Practice your elevator pitch, test with only a few paragraphs of words in writing, try to explain to someone on the phone what your new business is all about. You have a very short timespan there. Start this way, then expand and create your other documents. Having a variety of presentations like that helps to understand what is needed at different stages and in different situations.

Getting noticed
At every stage of the funding process you need to get the attention and keep it going. Doing that is an art in itself: strike the note that will make them look. In order to find out how to do that, you need to know who the investor is and what he/she is looking for. Investors are people who have been through the process of creating, managing and expanding businesses themselves. They have made all of the mistakes, they have gone through the struggle, but eventually they have succeeded. Does that make them into more compassionate people who are ready to take you by the hand and guide you all the way? There may be the odd investor who will do that, but in reality investors see right through all of the shortcomings and mistakes that you are making. They are not the kind of people who will invest their time and hard earned money lightly. Hype will not have any effect on them, on the contrary. If errors are minimal, they will continue to read; however if they are structural, they will look at the next deal. Consider working with a professional. You can not be an expert in everything.

What does it take?
What is it that they are looking for? Expertise, skill, quality, integrity. Integrity runs all the way through every aspect of a business. Even if your new venture is not that new and original, you may be putting together a business with the right management, in the right sector, at the right time. You have found a way to distinguish yourself from your competition, which you know well. In the best case scenario, you have already started that business and you have sold the concept to others. Those ‘others’ are the people that work with you. Or the ones that become your clients, or referrers, or partners. You will be able to show results: contracts, cash flow, growth. You are not a dreamer, you follow through. Investors don’t sit around and wait for the best ideas to come up, they see hundreds of those every week, or even every day if they want to. Getting noticed is showing what you’ve got and what you have accomplished so far. Show that you have thought this through thoroughly, and that you are prepared. Risk needs to be minimal, with excellent and solid profit potential.

Quality everywhere
As professional investment documents reviewers, we see many mistakes: business plans with spelling errors in the title, insufficient contact information, inadequate time stamps, unclear file names, just to name a few. A good presentation jumps out at first glance. It looks right, is structured logically and clearly, and tells the readers what they need to know. The essential information needs to be there, not too many details, not too technical, just enough to explain the concept. Often the convincing part is not the ‘grand idea’, but the way the presenter shows that he/she is prepared. The investor needs to find a ‘partner’, someone to ‘deal’ with. Make an opening statement with authority: “This is what I bring, this is what I want to talk to you about, this is what I need money for. I am committed to what I am doing, I have invested my time, my energy, my own money in this. I believe this. I can do so much more with some investment money. If not, I will succeed anyway, it’ll take just a little longer”.

One more thing, find out from your source what is expected from you, follow instructions. You may be writing for a grant, for a bank loan, to a VC partner or for a big group of small investors (as in crowdfunding). Follow the instructions and the formats that are requested, otherwise you won’t even pass the first preselection.

christmas stars (Photo credit: mararie)

As the year nears it’s end and holidays are upon us, we look back at all the hard work throughout this year and reflect with our families all over the world. Despite the hectic year behind us, or probably even because of it, we welcome the holidays and the New Year, to continue the implementation of new funding models and crowdfunding with renewed vigor.

2012 has been a full year to say the least, from the passing of the JOBS Act and building the initial pieces of the framework for a sustainable and secure industry. It is with great pride we look back at the team, partners and stakeholders we’ve had the privilege of working with throughout this journey and will continue to pave the way one step at a time through our various activities within the Grow VC Group. Thank you for your continued efforts and insight, as we all build the industry around new open and transparent funding models.

Happy Holidays and all the best – from all of us at the Grow VC group!

Sara brings a wealth of legal expertise in securities and startups to the emerging crowdfunding marketplace, and her new company, CrowdCheck, is designed to protect against fraud by performing due diligence checks on entrepreneurs. She was also a panelist at the SEC’s recent Forum on Small Business Capital Formation, talking about Title III of the JOBS Act.

You can listen to the podcast by clicking here or by subscribing to the Everyone Funding Startups iTunes channel.

You can get in touch with Sara and the CrowdCheck team at www.crowdcheck.com, and you can follow them on Twitter @crowdcheck and on Facebook.

Thanks for tuning in to this week’s episode of Everyone Funding Startups. Check out our new podcast page at EveryoneFundingStartups.com.

How Startups in Latin America Are Rivaling American Tech Companies

It used to be that when people talked about tech companies, you immediately thought about Silicon Valley. That’s where the big boys lived, and if you hoped to compete with them, that’s where you had to go too. But an increasing number of investors are starting to shift their money away from the tried-and-true Silicon Valley and bet on an area of the world most would probably never expect: Latin America.

(Image credit: juliandowling.com)

From Chile to Mexico, there is a grassroots revolution quietly going on that aims to change the face of tech as the world knows it. Rather than shying away from startups as they have for generations, graduates from the top universities in Latin America are moving towards them in a mass migration. Investors from around the world – including Silicon Valley – are infusing them with cash and reaping the rewards. Most importantly, the industry in this area of the world has started to make the shift from fledgling startup hopefuls to self-sustaining behemoths.

More than an emerging industry, it has become a movement, and the companies leading the charge have been dubbed “TechnoLatinas.” It’s a term that was coined by Buenos Aires entrepreneur Ignacio Peña as a way to encapsulate this developing ecosystem that seeks to strengthen and bind together not only the economies of Chile, Brazil, Columbia, Argentina, Mexico, and others in Latin America, but the entire world.

How is this possible when only a generation ago it was tough to get startups to succeed in this area of the world? As much as this is a grassroots effort, it has taken a combination of bottom-up and top-down thinking to really get the industry to blossom. And it all starts with…

Availability. A generation ago, things like internet access – let alone broadband or services on the cloud – were reserved for the monied elite in Latin America. But over the last decade, the increase in cheap and available broadband has both lowered the costs involved in starting and running tech businesses and vastly increased the number of potential customers. Simply put, starting up an online company is easier – and more lucrative – than ever before. But smart and creative people are still needed, which brings us to…

Education. No one went to university in Latin American countries to become an entrepreneur and start their own company. Startups just weren’t good business. Then came the internet, smartphones, and the social media explosion.

Campuses noticed that their students were excited at the prospect of living in a connected world, and more in tune with the possibilities and opportunities digital technologies provided. Business schools began encouraging this interest in the tech economy and pushing the envelope by holding pitch contests for new tech ideas and hosting hackathons. More and more talented people emerged from their studies ready and willing to create something. Governments recognized the tremendous potential upside and offered…

Federal support and opportunity. What does this mean? How about grants, capital, tax protection, and much-improved business environments? And that’s only the beginning.

Start-up Chile encourages entrepreneurs from outside the country to bring their great new startup ideas to Chile and base their operations there. Buenos-Aires recently showed their support by bringing 32 of their tech startups to the world-renowned tech conference TechCrunch Disrupt San Francisco. And President Juan Manuel Santos of Colombia has announced that he plans to spend more than $2 billion on communications and information technologies, $30 million of which is earmarked for investing in technology companies.

Beyond this, many governments have courted existing tech giants for support, and invested in accelerator programs for their own tech startups. Two of the most well-known – 21212.com of Brazil and NXTP Labs of Argentina – recently set up meetings with U.S. investors, something that would have been unheard of a decade ago. And if that’s not enough to prove that the business world is taking notice…

Commercial investments. The community of venture capitalists and angel investors willing to pour money into Latin American tech companies is growing by leaps and bounds. Brazil now has several innovation centers from Microsoft Biz Sparks and a data center from Amazon Web Services. Chile will soon have a data center from Google.
But that’s just the tip of the iceberg. The U.S.-based booster organization Startup Weekend now has more chapters in Mexico (13) than anywhere but the United States. Silicon Valley venture capital firm 500 Startups has quietly been acquiring companies in the region, and has said they have plans for even more investments there. It makes sense, because Latin America has…

A ready, willing, and inexpensive workforce. Latin American universities have graduated scads of engineers and other technologically skilled workers. In the past, many of these students chose their studies in the hopes of landing jobs at American or European companies, but unfortunately those positions are few and far between. What this means, though, is that many Latin American countries have a well-trained workforce just waiting for the right jobs.

Even better for international investors, in comparison to costs in the U.S. and other developed countries, Latin America is a bargain. Where Silicon Valley engineers might be making $6,000 per month, colleagues in Chile, for example, earn anywhere from $1,500 to $2,500. And that’s just the beginning of the savings with all the government subsidies offered.

Due to all of this, Latin American startups are finding ways to really push the envelope of what tech can do, even surpassing many of the established big boys with things like:

• Developing a clear and easy way to encourage people to recommend products they like to their friends through Facebook so that companies get real leads.
• A free app that lets users find and connect to Wi-Fi networks on their mobile phones no matter where they are, and whether or not they even know there are networks available.
• Creating a program that taps into taxicabs current payment and communication systems so that users can locate nearby cabs and reserve them.

And those are just a few of the amazing ideas coming from the “other” Americas. With all of these factors weighing in, TechnoLatinas might just displace Silicon Valley sooner than later.

Transatlantic Economic Council is a common organization of the US Government and the EU Commission. Participants included Ambassador Miriam Sapiro, Deputy U.S. Trade Representative and Daniel Calleja Crespo, Director General, Directorate General for Enterprise and Industry, European Commission, and the EU SMB Envoy. This time the event covered topics like Intellectual Property Rights, Standards and SME Finance. In all these areas, it is fundamental to develop cooperation and common practices to remove barriers from the business environment and enable further growth. Especially common practices, lower barriers and less bureaucracy are important for SMB’s that have less resources than larger corporations. The EU and USA also signed a Memorandum of Understanding to develop deeper cooperation.

Jouko Ahvenainen, Grow VC Group chairman, emphasized the importance of open markets in different phases of funding, models to get crowdfunding to work with other investment models, and clear rules and guidelines to get the to market work properly (view his presentation). Grow VC is also open to work with governments and regulators to develop and establish clear guidelines for crowd funding. It doesn’t always mean more regulation, but guidelines to interpret the current regulation and also pre-approvals for models companies want to utilize. It is important for all parties in the market, that the rules of engagement are clear and all parties have good practices to run their business and deal with problems before they happen. Panelists believed that 2013 will be the year of the equity crowd funding implementation.

(Image credit: goodmorning.se)

In the run-up to Stockholm’s annual entrepreneurship event Good Morning, which Grow VC participated in, I’d the opportunity to interview SSES Executive Director Nick Kaye and learn more about his team’s exciting journey. Here’s more:

Give us some background on the Stockholm School of Entrepreneurship. How did the idea of having 5 top schools work together on entrepreneurship come about?  

With the ambition to develop a platform for inter-institutional and interdisciplinary entrepreneurship, three visionary professors planted the first seed of what was to become the Stockholm School of Entrepreneurship (SSES). The seed grew quickly and so did the interest and commitment from the professors’ academic residences – the Stockholm School of Economics (SSE), the Royal Institute of Technology (KTH) and Karolinska Institutet (KI). In 1999, only a year into the story, the initiative was recognised by the Erling-Persson Family Foundation, from which a generous donation catalysed the project to come to fruition as an independent not-for-profit entity, SSES.

Since its early steps this ambitious interdisciplinary platform has developed into an established institute for higher education and learning. The school has spun-off hundreds of startups, graduated several thousand students and today offers an internationally renowned portfolio of activities for budding entrepreneurs from Stockholm’s five academic power-houses; SSE, KTH, KI, the University College of Arts, Crafts and Design (Konstfack) and Stockholm University (SU).

In your experiences so far, what are the major challenges and benefits you have found in having people from different disciplines and education backgrounds come together?  

So far nothing has contradicted the early research demonstrating that interdisciplinarity is currently our best change for creating change with extreme influence.  I think the benefits of having people from different disciplines and education backgrounds collaborate is abundant in both those excellent examples we see today at Good Morning and in the teams behind many of the SSES startups.  We also know that while the most significant breakthroughs are made by those disciplines and individuals who collaborate with the lowest disciplinary alignment, such interactions also lead to the largest number of failures.  As a community we are focused on making impactful and meaningful leaps forward and as such embrace interdisciplinarity with all its benefits and challenges.

Many of the SSES alumni have gone on to develop some of the most exciting startups. What kind of a role did SSES play in their development? Are there examples you’d like to share?  

I think the precise nature of this role for those respective parties is a question best answered by those entrepreneurs that we have had the pleasure and privilege to work with over the past years.  What I can share is that the SSES alumni who have been founders of these successful firms (and many others) have chosen to support SSES and their peers in our community in a host of ways, in addition to attending and leveraging SSES education, training and inspirational activities themselves.  This support takes the form of inspiring, mentoring, funding and employing both past and current SSES students – as well as generously opening their own networks to up and coming entrepreneurs.

What kind of a relationship does SSES have with these startups now, how often do you stay in touch?

Like most meaningful relationships, the quality and mutual value of the interaction is paramount.  SSES works with this alumni community to create specific and meaningful opportunities to engage in activities together.  I alluded to many forms of this engagement in my answer to your last question, but in addition we ensure that regular events such at Good Morning, our Spring Mingle, and Startup Day offer regular physical platforms for the gathering and interaction of alumni.
A recent example of an exciting engagement was the Wahlforss Berggren Internet Entrepreneur Scholarship offered by our alumni founders of SoundCloud and Readmill for two SSES students to spend a weekend pitching and rumbling in Berlin.

What about those alumni who have returned to Asia (SE Asia, India, China), how do you intend to reach out to them?  

Through our online presence and social media channels we keep in touch with these alumni, but while we send SSES participants to workshops and competitions around the globe we do not host any international alumni events.  Asia, with interest from our regional alumni, presents an opportunity to do so.  Please contact us as alumni interested in taking up an active role in such a development.

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Grow VC’s Networks Program initiative with its global network of thousands of entrepreneurs, investors, students and domain experts gives organizations just the kind of platform for connecting with and reaching out to interested parties, all with the aim to enhance the startup ecosystem even further. Our current partners include incubators, accelerator programs, universities, student networks, broker dealers, associations, institutions, startup networks, local networks, etc. The possibilities are truly endless – which in essence is the true nature of entrepreneurship, isn’t it?

The Rise of the Teacherpreneur

As soon as you read this title, you may be thinking, “What in the world is a teacherpreneur?” Rest assured; I did not coin this term. Teacherpreneurs have been, over the past year, so often featured in the media as to suggest that they’re a real, possibly enduring phenomenon. Teacherpreneurs, as the name suggests, are educators who’ve taken a swing at entrepreneurship, many having met with startling success. What makes these teachers such good entrepreneurs? As an edSurge article notes, teachers have the same qualities that successful entrepreneurs have, like passion, creativity, empathy, and persistence. Teachers often have a solid background in fundraising, and they have a strong desire to inspire real change in the world.

More than anything, however, teachers-cum-entrepreneurs have seized the moment by creating and driving innovations in a market that’s grown exponentially along with the Web 2.0—education technology. A Chronicle of Higher Education article entitled, “A Boom Time for Education Start-Ups,” investigates how this particular market growth has accelerated, noting:

“Investments in education-technology companies nationwide tripled in the last decade, shooting up to $429-million in 2011 from $146-million in 2002, according to the Na¬tional Venture Capital Association. The boom really took off in 2009, when venture capitalists pushed $150-million more into education-technology firms than they did in the previous year, even as the economy sank into recession.”

There are various reasons why education technology is now a hot commodity. Politics aside, education is a lot like healthcare in that the big goal that most would agree with, at least philosophically, is enabling access to as many people as possible around the globe. Education becomes that much more powerful the more people we have on board. Education technology is precisely what enables this type of global access. Now that the Internet is ubiquitous enough to spread access, education technology finally has a platform that can turn small ideas into hugely successful start-ups. Some examples noted in the Chronicle article include Udacity, Udemy, and UniversityNow.

Especially interesting is that crowdfunding seems to be a natural match for the ed-tech sector. A Big Think editorial explains how teacherpreneur ventures are particularly suited to crowdfunding sites like Kickstarter. For one, teacherpreneurs can receive funding much more quickly than traditional education innovation funding through grants, which can take years to go through. Another point is that teachers are very involved with state, national, and international communities on and offline. Successful crowdfunding requires those seeking funds to be able to galvanize a community, a skill that most teachers already have.

If you are considering founding a start-up in the education technology sector, welcome to something that’s going to affect us all in a very big way as technology accelerates. It’s time to open up education to the marketplace of innovation, to revolutionize arguably the most important investment in future generations.

The First Thanksgiving Photo credit: Wikipedia

Within the Grow VC Group we too have a lot to be thankful for. Through the past several years, we’ve been fortunate enough to have worked with hundreds of partners and our extended team, across six continents in developing new frameworks in the funding market. It has been an absolute privilege and we’re humbled by the support we’ve received all over the world.

This year has also been inspirational. Throughout the year, we’ve seen more and more signs of progress and new stakeholders entering the discussion to support new innovation and access to capital. Within the operations of Crowd Valley and Grow Advisors, we are also fortunate to work with Governments, institutions such as the World Bank, and pioneers in various verticals, such as equities of various sorts, debt solutions, real estate, commodities, just to name a few. It’s with the attention and foresight of various stakeholders, that we can expect to see new paradigms in effective and transparent funding models, that truly catalyze our economy.

Today we celebrate and are thankful for the blessings we have. Then with rested spirits and clear aims, we roll up our sleeves and get to work, recognizing that we will only solve our financial crisis and economic troubles by working together as a collective ecosystem.

Happy Thanksgiving, from the Grow VC Group.

(Image credit: Marie Sundstrom)

Last Friday, the global entrepreneurship event Good Morning took center-stage at the Grand Hotel in Stockholm. Amidst all the glitterati there were some valuable entrepreneurship lessons and keen insights that a distinguished panel of speakers, as well as the over 650 participants, exchanged. The annual event brought together some young and exciting entrepreneurs along with seasoned business leaders, investors, domain experts, besides galvanizing students towards an entrepreneurial mindset, if they haven’t already.

Here are some scoops from the event:

“65% of today’s elementary school students would ultimately enter the workforce taking jobs yet to be invented.”, a statistic quoted from the MacArthur Foundation report “Digital Media and Learning Competitions” and a message that formed the crux of this year’s event.

“85% of the world’s innovation is pursued by 18% of the world” according to the University of Toronto & reiterated by Rhett Weiss of the Entrepreneurship and Innovation Institute, Cornell University during his talk. The event’s audience though, was an exception.

Carl Barstand, one from the audience and a  fellow blogger, had this to say “There are over 400,000 species of Beetles in the world, one for each purpose. That’s why beetles are the most successful species on the planet. In fact, Beetles make up around 25% of all life forms on earth.”, asking all to embrace diversity for success.

More words of wisdom:

Jane Ni Dhulchaointigh, the inventor of Sugru, asked entrepreneurs, many of whom want to scale quickly, to first “start small and then make it big”. Jane also believes “we (you and me) are naturally creative” – well, with Sugru there seems no limit to our creativity.

While Sugru and the other inspiring sessions (details), had generated a lot of interest it was Karolinska Institute Professor Hans Rosling’s introductory presentation that was the show-stopper. A talk filled with humor and simplicity, yet so profound and powerful that had the audience in a trance. Here are some of his quotable quotes:

I love money because I know how to use it.
Entrepreneurship to me is building a business that fulfills a need in society.
If you know the facts, population is a non issue for the climate, economic growth is the challenge.
We need to fight devastating ignorance with fact-based worldview everyone understands.

The annual event also saw the participation of some exciting startups founded by the Stockholm School of Entrepreneurship alumni, many of whom have been making waves across continents. It was refreshing to see these former students mingling with the crowds and basically having a ball out there. It’s this culture of bonding and ties that they maintain, despite their distances and changed priorities, which makes some of these entrepreneurs a class apart.

By participating in Good Morning 2012, the Grow VC Group with its experience in global entrepreneurship ecosystem development, has in its own way helped the event realize its objective of being truly global – reaching out to entrepreneurs, innovators, investors and student communities from world-over through its network of networks.

Brad’s latest book, Startup Communities: Building an Entrepreneurial Ecosystem in Your City, describes his experiences in supporting the emergence of now one of the world’s most renowned entrepreneurial ecosystems – Boulder, Colorado – over the last 15 years.

We asked Brad about the central framework in his book, the ‘Boulder Thesis’, which gives four guiding principles for building a successful entrepreneurial ecosystem.

You can listen to the podcast by clicking here or by subscribing to the Everyone Funding Startups iTunes channel.

Startup Communities is part of the Startup Revolution series, which also has a blog at www.StartupRev.com. The next book, Startup Life: Surviving and Thriving in a Relationship with an Entrepreneur is available for pre-order now. The following books will cover Startup Boards, Startup Metrics, and the Startup CEO. You can follow the blog on Twitter @startuprev and you can also follow Brad Feld @bfeld.

Thanks for tuning in to this week’s episode of Everyone Funding Startups. Check out our new podcast page at EveryoneFundingStartups.com.

Speaking in Moscow with Richard Branson, it seems there is an almost accepted paradigm shift in increased efficiency and transparency for various industries (now focused on finance in Moscow). This transparency and direct participation has been at the heart of initiatives of from the driving forces in local ecosystems, including the entrepreneur community as well as larger funds. Through the Grow VC Group, we’ve been privileged to work with bold and daring initiatives, that look to catalyze the grassroots ecosystem and parties that belong to it, as well as create a framework to boost more innovation and growth.

We see that new funding models cannot exist in a vacuum, but they must work together with the existing and functioning ecosystem both online and offline. This means that crowdfunding and new technology, must be fitted into communicating with not just existing processes, but the ecosystem as a broader set of stakeholders. Without a sufficient and effective framework for participation, these new innovations, however grand, will be squandered and not utilized to their fullest extent. A real paradigm shift calls for bolder measures.

What does this mean in practice? Through our work under Grow Advisors, some tangible use cases we’ve seen;

• Operators in the local setting leverage the Crowd Valley infrastructure to bring their entrepreneurial community and stakeholders online
• Creating a process of direct participation, not only mailing lists or annual gatherings, but complementing existing processes with an online community where the community itself can work for its own growth
• Fostering a marketplace in the local community, which can be operated by a fund, broker dealer or similar professional stakeholder.
• The marketplace can be connected to the existing ecosystem, this “entrepreneurial community”, where the appropriate individuals and companies can participate at the most relevant  time in their life cycle

With a robust presence online, the community can follow, communicate and enforce itself by keeping up with what’s going on and supporting those initiatives they are most passionate about. These local ecosystems take the ties that exist already in the offline realm, and complement those with new tools to handle larger scale growth. At a time when economic growth is most needed, we see a proliferation and opportunity in fostering the growth of local ecosystems and first connecting these local stakeholders to one another and later benchmarking cross these different local ecosystems, to develop and enforce best practices and collaboration.

The paradigm shift is here and the earlier it’s adopted into how we support innovation, the sooner we can start benefiting from it.

Impact of Co-Working on Entrepreneurs and Startups

(Image credit: Deskmag)

Startups and entrepreneurs are often innovative and intelligent, and looking for a way to save. Co-working environments can help you start a business. From lower costs to improved networking, co-working spaces have more to offer than Wi-Fi, convenient parking and hot coffee for the early morning and late nights. In a Deskmag study, respondents answered that they increased their social circle, business network and productivity from working in a co-working environment. If you’re an entrepreneur or are launching a new startup, consider co-working.

Here are 3 benefits that come from a co-working space.

A Way to Save

Rent isn’t cheap – especially if you live or work in a major city. Early-on entrepreneurs and startups are often strapped for cash and looking for ways to save. Co-working spaces are a great way to save on overhead while still being able to work in a clean, professional environment. By renting a co-working office space, you’ll save on office furniture and office equipment. Depending on where you choose to go, you can gain access to frequently used equipment such as a scanner, copy machine and fax machine.

You can also cut down on typical business expenses, from electricity bills to lunches. If you’re used to running into a local coffee shop for free Wi-Fi, you’ll no longer feel the pressure to make a purchase or fight with others over the only outlet left. Memberships are often more flexible than a commercial real estate lease, offering space by the hour, day or month. You may also be able to trade expertise with another for a mutually beneficial, short-term and cost-effective partnership.

A Source of Support

In a co-working space, you can network and connect with other startups and entrepreneurs in a no-pressure zone. You can meet potential investors, clients and partners. Use the co-working environment to tap into the minds of others when it comes to problem-solving and new ideas you’re unsure of. If you need a project done quickly or need advice when you’re having second thoughts, there’s a good chance the people around you can provide a recommendation.

Co-working environments with regulars often have a sense of community, where renters become the advocates of others. Not only does everyone in the building want to succeed, they are often more willing to help others do the same. You are unlikely to see someone with a glazed-over look of dissatisfaction day in and day out – a common ailment in corporate offices. Co-working spaces, from the furniture to the culture, encourage feedback, communication and many find a new support system amongst fellow entrepreneurs and startups.

A Foundation of Innovation

With the ability to tap into your newly found support system, your innovation is taken to new heights. Martin Ruef, a sociologist at Princeton who studied entrepreneurs, found that those who broadened their social sphere of contacts from small groups of acquaintances to larger, more loosely-connected networks of people were far more innovative than those who didn’t. More innovation is what you will get in a co-working environment with the perspectives of a wide range of people with varying experiences and industries.

You could find your next idea by spending some time in a co-working office space. There are more than a few instances of people companies with people they’ve met while co-working. You can also develop your own experience. Some offices will offer workshops on topics like “VC pitching” or events such as brown bag lunches for more networking opportunities.

Co-working shifts the startup mentality away from the focus on finding funding and onto the tasks of growing a company culture, developing innovative ideas, and locating positive support networks. According to Deskmag, the majority of co-workers report an increase in self-confidence – almost 90%. By working in a co-working environment, you can gain confidence, ideas and new insights while saving money.

Widely covered by the Italian media, Crowdfuture was a great success, selling out tickets to over 300 attendees. Markus’ comments about the necessity of creating a crowdfunding ecosystem was also reported by Wired Italy.

The conference covered many aspects of crowdfunding and the impact of the recent Decreto Crescita approved by the Italian government, that amongst other things legalizes equity-based crowdfunding (more about this here and here). Some of the most successful case examples around the world were discussed, highlighting issues and challenges, and offering an insight into the future of this movement.

The full presentation, Crowdfunding – Asset Classes and Crowd Driven Models, is available below.

Markus’ keynote presentation discussed trends in modern finance, the background to the emergence of crowdfunding, and the evidence of macro trends such as the demand for greater democracy and efficiency in the financial sector. It also touched on the future outlook for crowd-driven investment models.

Joe has started up, grown and exited three companies of his own and invested in over 20 growing startups. He has been featured on FoxNews, CBS, NBC, CNN, ABC and numerous nationally syndicated radio shows on topics related to entrepreneurship and small business growth – and serves as advisor to  entrepreneurship programs domestically and around the world. He is also a keynote speaker on topics related to entrepreneurship, entrepreneurial behavior and free enterprise.

We asked Joe what made him start thinking about entrepreneurial DNA and how entrepreneurs can use the B.O.S.I. framework to be more effective in growing their startups.

You can listen to the podcast by clicking here or by subscribing to the Everyone Funding Startups iTunes channel.

You can find out more about Entrepreneurial DNA and the B.O.S.I. framework, and take the free online B.O.S.I assessment, by going to www.bosi.in/growvc. You can also reach Joe on Twitter at @bosifounder or by email at joe@joeabraham.com.

Thanks for tuning in to this week’s episode of Everyone Funding Startups. Check out our new podcast page at EveryoneFundingStartups.com. And you can now interact with the show on twitter @growVCpodcast. Let us know what you want to hear…we’re listening.

Anguilla-Counts, Inc. is pleased to announce its partnership with Grow VC Group, which represents crowd funding, new investment models, global business development programs and service providers for startups and investors. The Group is a global pioneer and leader in the startup investment and business development market. Through this partnership Anguilla-Counts will use infrastructure from Crowd Valley (part of the Grow VC Group) to build an online community of startups, experts and investors.

Anguilla has led the world in a number of exciting advances particularly in technologies, legislation and cyberspace. Anguilla was the first country to conduct a national census using hand-held computers; the first country to have digital signature legislation; the first country to have a fully online 24/7 companies registry – “ACORN”, and many more.

Lynwood Bell, Managing Director of Anguilla-Counts (together with associated companies Hansa.net Global Commerce, Inc., Span-Hansa Group Limited, Hansa Finance and Trust BV, and Hansa Company Limited) says: “Anguilla’s size (32 square miles), British stability, zero tax, incubator-scale costs and efficiencies… makes our country an ideal residence for startups. Having recently renewed treaties and agreements with many major jurisdictions we have strengthened their endorsements for our active, legitimate, international businesses which have economic purpose and transparency. Indeed, a number of the governments of these treaty partners provide generous tax incentives to their nationals to invest in Anguilla as a way of encouraging their own globalization. Our “Certificate of Intellectual Property Residence” (“CIPR”) for the six technology revolutions of info, bio, nano, robo, socio-cogno and energy is unique and is already drawing startups and subsidiaries from around the world. Working with Grow VC to fund these startups through innovative and balanced “crowdsourcing” legislation will insure that Anguilla “counts” as an international centre of excellence.”

Paul Higgins, COO of Crowd Valley, says: “The Grow VC Group has already been involved with over 4000 startups through our teams in all major markets on six continents. Crowd Valley offers the technology infrastructure and the tools to empower and enable business ideas to be launched, managed, supported and funded with more structure, whilst at the same time enabling the race to success to start much earlier. Anguilla is an excellent example of how a national community can be a seamless part of our business network and in turn, Anguilla can make its unique attributes available to all of our other network partners. We wish to establish a presence in all the most entrepreneurial countries on the planet and Anguilla is one of them.”

About Anguilla-Counts, Inc.
Anguilla-Counts, Inc. (a not-for-profit organization) was formed in 2010, dedicated to making Anguilla an international centre of “intellectual arbitrage”. Among other initiatives, it supports innovation, internationalization of domestic industries, job growth, youth education in entrepreneurship through .ai Anguilla Incubator Inc. and active involvement with organizations, institutions and professional groups such as the International Fiscal Association.

About Grow VC Group
The Grow VC Group comprises of proven global professionals, with real entrepreneurs and personal investment track records spanning decades and continents. The Group is recognized as a leading innovator of crowd-based investment models and open marketplaces, for asset classes starting from early stage ventures to various verticals.

About Crowd Valley
Crowd Valley is the One Stop Shop where broker-dealers, local exchanges, startup ecosystem partners, and sector specialists can start their own crowdfunding portal in minutes. It includes the operating infrastructure framework as a SaaS platform, back office packages compliant with US regulation, support services, and the functionality to create and service interconnected networks, enabling users to maintain and operate via single profiles on multiple platforms.

Contact – Anguilla-Counts: Lynwood S. Bell – bell.lynwood@gmail.com, http://www.anguilla-counts.ai
The Technology Campus – TV1 02P, AI-2640, Anguilla, British West Indies

Contact – Crowd Valley: Paul Higgins – paul@crowdvalley.com, http://www.crowdvalley.com
845 Third Avenue, New York City, 10022, New York

Tim has worked as a consultant, practitioner and senior manager with a number of global  commercial organisations including Egon Zehnder International and McKinsey & Co. For five years he was part of the executive management team of ITI Scotland – a £500M innovation programme based around a highly collaborative open innovation model.

Crowdfuture is the first conference in Italy dedicated entirely to crowdfunding. With national and international speakers, including GrowVC’s global COO, Markus Lampinen speaking on Crowdfunding as an Asset, Crowdfuture will illustrate some of the best and most successful cases in the short history of crowdfunding, highlighting issues and challenges, dispelling some myths, and offering an insight into the future of this movement.

You can listen to the podcast by clicking here or by subscribing to the Everyone Funding Startups iTunes channel.

For full details about Crowdfuture in Rome on October 27th 2012 and for information on how to attend please visit www.crowdfuture.net.

For more information about Twintangibles you can get in touch with Tim Wright and Daniela Castrataro at www.twintangibles.co.uk or on Twitter @twintangibles.

Thanks for tuning in to this week’s episode of Everyone Funding Startups. Check out our new podcast page at EveryoneFundingStartups.com. And you can now interact with the show on twitter @growVCpodcast. Let us know what you want to hear…we’re listening.

The Role of Real Investments and Insurance in New Small Businesses

When determining how to invest your money for future financial security or growth, there are primarily two ways to do it; real investments and investments in financial instruments. Real investments involve the purchase of property, such as land, real estate and property, plant and equipment. Investments in financial instruments involve placing your money in things like stocks, bonds, T-bills and the foreign exchange market.

Both real investments and financial instrument investments are used to increase the value of money to beat the effects of inflation over time, usually for retirement, inheritance or security purposes. However, there is no guarantee that an investment in anything will result in monetary gain. In fact, some investments are toxic. This means that their values are so low, investors ending up losing money.

Real investments are applicable to entrepreneurs and small businesses for two reasons; the purchase of property is necessary to do business, and entrepreneurs must find people who are willing to invest in their business model. For example, a small textile manufacturer must purchase a factory and the equipment used to weave fabric. Most entrepreneurs do not have enough money in their personal bank accounts to purchase such high-dollar items, so they must look to venture capital, crowd funding or small business loans to help them get their idea off the ground.

Investing in a startup or small business is seen as a high risk, so venture capital firms, crowd funding participants and loan companies are only interested in giving funds to startups that show potential. Independently, each source of funding also differs in what it expects back from funding a startup. Venture capital firms usually expect to own equity in the companies they invest in. Crowd funding participants sometimes expect to own equity, also, though many invest small amounts of money and expect nothing in return. Small business loan institutions expect business owners to pay off the value of a loan, plus interest, within a fixed term. These types of investments are only insured if the investor and business owner have a contractual agreement that involves a cross-collateral clause or allows the investor to regain their initial investment for any reason.

In terms of the business owner, the money they spend on property and goods for their business are what make the project possible. Some of these investments can be quite expensive, such as the heavy machinery used in manufacturing and construction. These investments must be insured to protect the business owner from damage or loss due to theft, natural disasters or other unforeseen accidents. If they don’t insure their property (or underinsure their property), they put themselves and their investors at risk for bankruptcy.

In terms of proper business insurance, there are numerous companies and plans to choose from, so it can be confusing to determine what type of insurance is ideal for your company. It is important to choose your insurance agent carefully. Businesses can only be well-insured when they work with an agent who understands the needs and vulnerabilities unique to a company. It may take you a while to find a good agent, but you will know when you find him or her. They will be very interested in a thorough analysis of your business before suggesting a plan, and they will want to review the plan with you in detail to help you understand what you are getting. Even once you have a good agent, stay informed about average business insurance rates to avoid overpayment.

If you are in the early stages of fundraising for your startup, it’s wise to start thinking about what kind of insurance your business will need and to begin doing research on different insurance providers and their available plans. For more tips on buying business insurance, take a look at this article on the U.S. Small Business Administration’s website.

Photo credit: Wikipedia

Many partners we work with in Chicago, as well as the midwest in a broader sense, see the JOBS Act and new funding models, crowdfunding among them, as a step in the direction of more participation and effective models in the funding landscape. The past years have surely posed a challenge for many regions, both urban and more rural, outside what many dub as hotspot cities. Chicago, being one of the largest cities in the US, still seems to present an interconnectedness in advocating for more connectivity and impact outside these hotspots, and outside the metropolitan area. We’ve had the privilege of working with a variety of partners, funds, exchanges, marketplaces etc, that have made it a mission of theirs to serve a wider community and establish a real impact with their actions.

It might be characteristic of the midwest, but the desire to build sustainable models that have a long term impact is admirable and quite frankly, very inspiring to see in action. Maybe it’s the fact that communities have learned to work together, as staying in ones own neighborhood hasn’t been an option. Either way, these grassroots ties are also modeled in our networks program and we’ve seen a variety of applications and models, that we’ve also wanted to model our tools after, to not only make operations more efficient, but also increase the reach of these ties that exist between local communities.

Democratizing investing and opening the doors for ‘normal people’ to participate in real opportunities, may be today’s chapter of the American Dream and seems to be apparent to those partners we are working with. The entrepreneurial way of life is important not only to those that create the Facebooks of tomorrow, but to all those that toil away on a daily basis creating value for their local communities. And of course, to all those that help in the process, such as the broader community of stakeholders. They, like all others, should have the possibility and framework to participate in their nephews startup, their neighbors company or the local bakery, when given the opportunity. Building a sustainable framework from the grassroots, for local communities to empower themselves, seems more important than ever for our economy.

We’re going to be in Chicago for several days from the 16th October onward. We invite all parties interested in new funding models and incorporating new elements to existing operations, to reach out to us, get in touch (e-mail at meet[AT]growvc.com) and we can schedule an in person meeting in Chicago.

This week on the Everyone Funding Startups podcast we spoke to Lukas Biewald, CEO of CrowdFlower, the leading microtask crowdsourcing platform and also the company behind the CrowdConf crowdsourcing industry events.

CrowdFlower solves problems ranging from product categorization to business lead verification to content creation. With its crowd of millions of contributors CrowdFlower claims to make up the world’s largest workforce.

We asked Lukas how he’s perceived the growth in the crowdsourcing industry since the term was first coined by Jeff Howe in 2006.

You can listen to the podcast by clicking here or by subscribing to the Everyone Funding Startups iTunes channel.

• 00:45 How did you get started with CrowdFlower?
• 02:55 What is a typical case at the moment for using crowdsourcing?
• 04:55 Who makes up your crowd of contributors?
• 05:50 What made you want to get involved in running events and conferences for the crowdsourcing industry?
• 09:10 What are your expectations for your CrowdConf 2012 event in San Francisco on October 23rd?
• 09:55 To what extent are companies using crowdsourcing for innovation rather than just processing high volumes of microtasks?
• 11:03 How do your clients look at building crowdsourcing competency as an area of in-house expertise?
• 12:20 How has the crowdsourcing sector in general grown over the last few years?
• 14:30 What do you think will be the longer-term consequences of crowdsourcing for employers?
• 15:50 What is the implication for employees?
• 18:00 How Skout (backed by Andreessen Horowitz) started out using crowdsourcing
• 20:15 Will any industry remain unaffected by crowdsourcing?
• 22:20 How should people get in touch with you and how can they attend the CrowdConf 2012 event?
• 23:31 End

For full details about CrowdConf 2012 in San Francisco on October 23rd 2012 and for information on how to attend please visit www.crowdconf.com. The conference is primarily for company innovators and decision makers, Enterprise Data Managers, Marketing Directors, Entrepreneurs, Investors and VCs, and will cover topics such as:

• How to take a business idea from launch to profit with the power of the crowd
• Microtasking solutions to moderate content, optimize search results, measure social media sentiment, and handle big data
• Self-service crowdsourcing solutions you can start using today

For more information about CrowdFlower you can get in touch with Lukas Biewald at lukas@crowdflower.com or by going straight to their website, www.crowdflower.com.

Thanks for tuning in to this week’s episode of Everyone Funding Startups. Check out our new podcast page at EveryoneFundingStartups.com. And you can now interact with the show on twitter @growVCpodcast. Let us know what you want to hear…we’re listening.

To state that the mood for crowdfunding is all cheers and laughs, would be misleading. However, when discussing a new, emerging financial market, a superficial approach to handling and building a sustainable new market would be plain wrong. There are several issues and topics to be raised, which is why we also have taken an active role in the dialogue. The discussion is healthy and should be thorough, to understand the topic at hand and work out what gaps need to be addressed. If we take a few steps back in time, it’s clear how far we’ve come.

As we started mapping out the market and the needs for new models in early stage funding, it wasn’t clear to everyone that it was needed in the first place. The global financial crisis and bank lending drying up for early stage businesses, made it a lot more visible and a few years later the discussion was already wide spread. Imagine that only a few years ago people we’re yet convinced there was much to improve on in the early stages of funding. Sure, there were a lot of pioneers in this field that we also discussed with, but not to the extent that we have today.

In the present, opinions are still divided. However, there is no illusion that the current financial models or the ones that led us into the financial crisis, are the answers we are looking for. The reception to our networks program from the financial market and those who already operate in the early stage funding market, has been a clear signal for change, as many established actors start to explore and embrace new, more transparent and democratic funding models.

Sure, there is still some hurt ego in the established sector, mainly stemming from misunderstandings on what the new funding market is and how it should work. Some see it as a replacement to their activities, when it should most likely be viewed it as a complement. Some limit their view on equity funding alone, which as a sector is surely important, but not nearly sufficient for an effective market. Equity funding serves one niche in the market, that one niche is small in a grand scheme. What about small and medium size businesses? Surely you can’t expect a restaurant to be bought out at 100 times the valuation of your investment?

The demand for more transparency, efficiency and participation is clear in various sectors and the financial sector is long overdue for a change. We see that it’s not enough for a single change, but the ecosystem and support infrastructure needs to evolve with the new world. We’ve discussed the changes we see for the funding market to work properly before as well, and we see that the reforms needed in the infrastructure span the entire lifecycle of new enterprise, both locally as well as nationally, and internationally. However, these changes will appear in increments, to create sustainable models and infrastructure to a new, market.

Existing models in the early stages suffer from low liquidity, which can surely benefit by bringing more effective participation into the mix. No one doubts the lack of liquidity and the struggle that often faces angel investors and founders alike.

The wider ecosystem at hand is also calling for more connectedness, where players are not fit into isolated buckets, but can work and communicate with one another effectively. The Grow VC Group is announcing solutions to the paradigm revolution later on this fall, and we are currently working with hundreds of partners in various clusters. By introducing more models for direct participation, from local ecosystems, such as universities, incubators and alumni networks, to effectively support themselves, we are surely laying the building blocks of tomorrow.

This week on the Everyone Funding Startups podcast we spoke to Wolfram Kosch, a German entrepreneur who raised a crowdfunding round in the seed stage of his business, LuduFactur, before going on to run a second crowdfunding campaign in Germany.

Ludufactur offers the customisation of board and card game classics through a web interface (www.luudoo.de). Once customised, Ludufactur produces the game as a high quality single edition and sends it to the customer.
Customers could for example chose to create a “Ludo” for their parents with the pictures and names of their children on gaming pieces, gaming board and packaging, or a set of “Trump cards” comparing your friendship circle on creativity, age and fun factor.

We asked Wolfram about his experiences in raising investment through crowdfunding on two different crowdfunding platforms in Germany, his advice on how to run a successful crowdfunding campaign, and his thoughts on the long-term impact of these new online investment models in Germany.

You can listen to the podcast by clicking here or by subscribing to the Everyone Funding Startups iTunes channel.

• 00:45 Tell us about your background and about your company, Ludufactur
• 04:12 How did you first come across crowdfunding?
• 05:15 When did you run your first crowdfunding campaign and what were the options in Germany at that time?
• 08:38 Which crowdfunding models did you look at?
• 09:15 What is ‘silent equity’ and why is it important when crowdfunding in Germany?
• 10:40 What made you want to raise investment for equity instead of for a reward or on some other model?
• 12:20 How would you describe your experiences before, during, and after your first campaign?
• 13:30 What sort of materials did you create to support the campaign?
• 15:00 What would you say is the one thing that everyone should do for their crowdfunding campaigns?
• 16:00 How much did you end up raising in your first crowdfunding round?
• 16:30 What made you decide to raise a second crowdfunding round?
• 22:35 How do you deal with having hundreds of small investors?
• 23:30 How far do you think crowdfunding can get you as your business grows?
• 26:00 What do you think the long-term impact of crowdfunding will be in Germany?
• 31:00 How can people find out more about your products?
• 32:45 End

You can personalize and order your favorite board and card games at www.luudoo.de and you can also follow Luudoo on Twitter, Facebook, Google+, and YouTube.

You can also see Ludufactur’s page at Companisto for more information about the company and the team. Ludufactur currently focuses on the German market but will address international markets very soon, offering an English version of the website latest by Christmas 2012.

Thanks for tuning in to this week’s episode of Everyone Funding Startups. Check out our new podcast page at EveryoneFundingStartups.com. And you can now interact with the show on twitter @growVCpodcast. Let us know what you want to hear…we’re listening.

Tips to Consolidate Your Social Media Marketing

When you’re getting a startup off the ground, every minute of the day can be a precious commodity. Although social media is integral to spreading the word about any crowd-funded business, it’s easy to let regular posting take a backseat to the constant concerns of crunching profit vs. loss in expenses, payroll and taxes.

But what if your social media marketing could be reduced to just 15 minutes a day, and still have the effectiveness of ten times that much effort? Like most things, productivity within social media boils down to organization. By developing a plan that works and sticking to it, it’s possible to streamline your outreach on Facebook, Twitter, Pinterest, LinkedIn, Google+ and whatever new platform inevitably pops up in 2013.

To consolidate your social media marketing down to its core fundamentals, follow these steps:

1. Bookmark as You Browse

No matter how busy you are, you probably still take a few minutes here and there to check out your friends’ Facebook walls and Twitter feeds from your personal account. In that process, you’ll undoubtedly uncover material that interests you and might be relevant for a post on your company pages. Utilize a program like Evernote, your device’s built-in notepad app, or simply send yourself a text to remind yourself of post ideas you can utilize later.

It’s also smart to set Google alerts for your own company name or topics that you frequently post about. When something new shows up on the web that pertains to your company, you’ll get a notice and have automatic fodder for your next post.

2. Compose in Advance

Before you even log-in to your account, decide what you’re going to post. If you open your company’s Facebook page with a purpose, you’re less likely to waste ten minutes browsing around in search of inspiration. Utilize those notes and bookmarks and go in with a plan.

3. Dedicate Times for Posting and Commenting

Depending on the size of your company, you may have a staff member (or members) whose job description includes the role of posting to your social accounts. Whether you delegate this responsibility or handle it yourself, decide a schedule for your daily posts. Social media use peaks during the workday, so if you’re a two Tweet a day sized company, schedule those at 9 am and 3 pm. (Of course, if inspiration strikes at other times, don’t hesitate to post away).

Likewise, responding to comments is equally important to your initial post. It’s the back and forth conversation that pushes a post, pin, or tweet to a higher level of visibility. But if you’re receiving emails and phone alerts about every comment left on your page, you’re likely to be constantly fending off distractions throughout the day.

It’s okay not to respond instantly, but do make a point to respond within a few hours to keep the conversation going. Turn off the alerts and decide on two or three times throughout the day that you will log in to respond to comments for a few minutes at a time.

4. Create a Chain of Command For Responding to Comments and Complaints

Not every comment left by a consumer on a post should be responded to publicly, and some require special care. If you have a customer service person or team on your staff, make sure that the link between the person checking the social media accounts and the customer service department is solid. When a comment comes in that requires personal attention, you want to make sure that the commenter receives a response as quickly as possible (ideally, in the same day).

5. Delegate and Spread it Around

Although it can be tough to let go of control, it’s okay to trust your employees to post to the company account. Facebook allows different levels of admin capabilities, whereas Twitter is more all-in-one. Set ground rules about what employees can post, but give your managers the ability to post on the company’s behalf. These are your people on the ground, so to speak, and you want them to be passionate about your business. Give them the chance to promote for you.

6. Automate with Care

Programs like HootSuite that cluster different social media accounts into a unified dashboard are growing in popularity. If you’re posting dozens of updates and tweets per day, this can be an immensely useful tool. On the other hand, punching in that many updates at once can lead to dull posts that focus on marketing messages rather than real conversation. If you utilize an automated post scheduling tool, make sure that you still have a plan to sign in and respond to comments each day, as well.

What other tools and tips have you found to streamline your social media outreach? If you find yourself spending hours a day pushing your brand through social media, do you think that the effort is worth it?

President Barack Obama speaks to a joint session of Congress regarding the American Jobs Act (Photo credit: Wikipedia)

Pioneering the Crowd Investment Market

The Grow VC Group has been working with several hundreds of actors in the startup and investing space, and piloting various different models for participation in the new market. The Networks Program has been an integral part of this development, but the applications have been far beyond only the startup funding market.

Partners include a variety of different startup ecosystem participants, but also those that operate their own investment models, communities and have learned to leverage a new, more efficient framework for more direct participation. These partners represent those operating in the financial market, for example brokers of various types. A lot of value can be applied from simply incorporating more scalable and manageable tools, where the applications can take forms.

Visible Changes in the Investment Market

For many organizations that operate investor communities or activities with investment products, crowdfunding represents a way to get more participation from a wider audience, which in turns may lead to an increased impact. There are a wide variety of new operating models to accelerate and complement your on going activities, with the JOBS Act and change in the funding market.

Now is a great time to get involved, as we anticipate the creation of an entirely new type of market with regulatory advancements that call more more directness and effective models. We can truly say, that we see the ways the funding market is changing on a daily level. For setting up your own starter network: simply click here or get in touch with Program Manager Paul Higgins for further assistance and custom packages, at paul@growvc.com.

The Grow VC Group is committed to pioneering new funding models. We call on all partners that are looking to leverage the new regulation for a new level in their operations, to get in touch and pioneer the new market with us.

(Photo credit: sustainablerotterdam)

At GrowVC we are working with universities around the world by providing the tools and processes that can systematically increase the visibility and the results of their startup programmes.

Universities around the world frequently have a stated aim and strategy to encourage entrepreneurship in their students, staff, and alumni.

Many universities have incubator programs, student-run entrepreneurship clubs, and engaged alumni networks but these initiatives are often carried out in silos, which reduces the opportunity to create clear paths and support networks for launching startups. This has a knock-on effect on a university’s ability to commercialize systematically its Intellectual Property.

GrowVC Networks for universities provides an online focus point that brings together teams to collaborate on startup ideas. It provides connected online communities for a university’s incubator, entrepreneurship and venture capital clubs, and alumni network.

The Team Builder module gives the different groups involved in entrepreneurship at the university the processes and tools to develop startups from idea through to investment and beyond. We also offer the Events Manager module as standard to universities so that events run by the entrepreneurship clubs or the university’s incubator can be managed in one place within the context of its startup community.

The Showcase module gives a central location where a university can publicize the startups that have come out of the university, either to potential students, current students, the alumni network, or the wider public as required.

Through being part of our network of networks a university can also enable its startup teams to access outside expertise, potential co-founders, mentors, lawyers, advisors, and investors.

As an additional option we can enable crowdfunding investment in startups from selected communities, such as the university’s alumni network, or from the general public.

For more information or get started with your own university Network, go straight to the sign up page or contact GrowVC’s Networks Manager, Paul Higgins at paul@growvc.com.

NXTP Labs seeks to invest and provide hands-on support and community to entrepreneurs with passion for starting up and growing their companies. They provide seed funding, mentoring, community and office space to entrepreneurs with great ideas and execution capabilities.

They also invest up to US$ 25,000 as a seed investment in companies (US$ 10,000 per startup, plus US$ 5,000 per founder, up to three founders), in return for small stakes (usually between 5 to 10%).

Nextperience Labs will be running a Demo Day in Silicon Valley to showcase the best Latin American startups alongside the Brazilian startup accelerator, 21212 on 6th September 2012.

We asked Nora about the emerging technology entrepreneurship hubs in Latin America and how startups from that region are perceived by outside investors. We also found out about the strong execution of startups like WeHostels – see their press release about joining the NXTP Labs programme.

You can listen to the podcast by clicking here or by subscribing to the Everyone Funding Startups iTunes channel.

• 00:10 Introduction to Nora Palladino and Nextperience Labs
• 00:45 What is the Nexperience Labs programme and what does it offer for entrepreneurs?
• 03:45 How does membership of the Global Accelerator Network support the programme?
• 05:20 What are some examples of successful startups that have gone through the NXTP Labs programme?
• 08:30 What do you look for in founder teams when you receive applications to the programme?
• 12:30 What are your expectations for your upcoming Demo Day in Silicon Valley on 6th September?
• 14:10 How many companies will be presenting?
• 14:50 What is the reputation of Latin American startups in places like the US?
• 17:00 What were you looking for from the GrowVC Networks beta programme when you joined up with us earlier this year?
• 19:15 How would you assess the entrepreneurship ecosystem in Argentina and in South America more generally?
• 23:45 How can potential applicants or investors get in touch with you at NXTP Labs?
• 25:21 End

NXTP Labs will be showcasing their startups for investors worldwide at their GrowVC Network here: https://www.growvc.com/networks/nxtp-labs. Click here to get started with your own GrowVC Network.

You can find out more about how to apply to NXTP Labs and about the upcoming Demo Day at the NXTP Labs website.

Thanks for tuning in to this week’s episode of Everyone Funding Startups. Check out our new podcast page at EveryoneFundingStartups.com. And you can now interact with the show on twitter @growVCpodcast. Let us know what you want to hear…we’re listening.

Mobile Solutions for Fleet and Business Management

Logistics versus Supply Chain (Photo credit: Wikipedia)

As your operations grow, so does the difficulty of maintaining it and tracking them. Keeping track of financing can be a difficult task for anyone. Marketing may not be your strong suit. Supply chain management? Not your favorite task. Luckily for you, there are some amazing mobile technologies that have been created to help keep control of your business and work efficiently with your entire team.

Mobile technology, whether we’re discussing the devices your team uses or the apps that make those devices work, is all about customization and finding the right tool to fit every business need. You can keep track of your ongoing efforts, stay in contact with them, track your finances and organize your marketing plans all from the palm of your hand. We’ve taken a look at some of the latest and greatest mobile business technologies and identified some key features they have in common. If you’re looking for a mobile solution to your business woes, we’ve even included some examples of the absolute best tools around.

Supply Chain Management

Machine to machine (M2M) tracking is the latest technology when it comes to supply chain management. With most M2M systems, you can keep track of where your drivers are at all times, get new revenue streams, access easy implementation, connect any device to office applications, and improve your time to market. Supply chain management may sound complicated at first, but really it is just how you keep every part of your business connected. When you use supply chain management technologies you know what is going on at all times, and you can easily cut the cost of your operations and manage them more effectively.

Our favorite tool: Qualcomm Enterprise Services

When it comes to understanding fleets and the tech that makes them work, Qualcomm is No. 1. They work with businesses to create custom solutions including GPS fleet tracking, fleet maintenance software and even safety and compliance tools.

Finance

When you’re constantly on the go, managing, owning and/or operating an entire fleet can make keeping track of your finances difficult. But with the advancement of mobile technologies, keeping your finances in line is much easier. No longer do you have to go to the bank or sit in front of a computer to manage your bank accounts, deposit checks, or transfer funds. You can even use mobile finance technologies to pay your employees. With these technologies, you can save time by having access at your fingertips 24/7. We all know that when time is saved, money is saved. Making the switch to mobile finance technologies will allow you to work more efficiently and more effectively.

Our favorite tool: Mint.com

With a beautiful browser interface and a whole arsenal of mobile apps, Mint has become the go-to financial management and planning tool for personal and business use. Track your spending, create budgets and even set goals using this intuitive and free software solution.

Marketing

Google Offers (Photo credit: Wikipedia)

The entire world is starting use mobile technology more so than traditional computers to access websites. There are even statistics and claims that by 2013 more people will use their phones instead of computers to access websites. The use of mobile marketing seems to be growing almost daily. You can use QR codes to direct customers and leads to your website. Mobile coupons allow you to reach a wider customer base and may just bring in new clients. When you choose to invest in any mobile marketing technologies, you may not be saving money, but you’ll surely increase your revenues through new and returning clients.

Our favorite tool: Google Offers

Many people see group discount sites as places for restaurants and retail stores to gain new customers, but Google’s far-reaching service can be perfect for enterprise companies as well. Use Google Offers to target customers in specific geographical regions to take advantage of your ebbs and flows throughout the year.

Turning to mobile technologies can be a big leap for any company. However, there’s no doubt that this is the way business is headed. Implementing many of these technologies may seem overwhelming, but once you start, you’ll find that you’re investing in the viability of your business for years to come.

(Photo credit: Wikipedia)

Accelerators and incubators are an increasingly important and visible part of the startup ecosystem in technology hubs around the world.

These initiatives work on a variety of different models to offer the same basic proposition to entrepreneurs: affordable office space, a support network, and sometimes seed investment to bring together and nurture entrepreneurial teams until they are in a position to scale up and fend for themselves.

An accelerator’s success and reputation are dictated by the success of its startups. This in turn is dependent on the volume and quality of entrepreneurs it can attract and the accelerator’s ability to build and improve its startups’ teams during the period in which they are part of the program. Accelerators and incubators often bring in external mentors and advisors to help this process. They also help startups get access to funding by providing as many funding opportunities and angel networks as possible.

GrowVC Networks for accelerators and incubators is built with the mindset of improving team-building, tracking progress, and developing startups into viable businesses. Being viable in this sense can mean ‘investment-ready’ for those that will require investment; or simply able to grow sustainably for those that will not.

The core Team Builder module allows an accelerator to assess and evaluate a startup team throughout its program so that it can demonstrate the improvement between beginning and end, according to the accelerator’s own criteria. For instance, an accelerator can develop criteria for investment-readiness so that it can assess a startup idea, the team, and the market against these criteria when the entrepreneurs join the program at the beginning and leave at the end.

The Showcase module gives a central location where an accelerator can illustrate its startups’ successes, and the Startup Tracker module allows them to keep tabs on the progress of startups that may have applied one year and not yet quite been ready.

Through being part of the GrowVC network of networks an accelerator can also enable its teams to access outside expertise, potential co-founders, mentors, lawyers, advisors, and investors.

To get started with your own Network go to http://www.growvc.com/main/networks or get in touch with Paul at paul@growvc.com

Photo credit: Roland Urbanek

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.

There are many different options for employment after college. Out of all these options, though, are two main categories of businesses; established companies and startup companies. Established companies are just as their name implies; well-known and operating on a well-defined organizational path. Startup companies are just the opposite; relatively unknown and operating on an ever-changing system of trial and error.

Although recent college grads may make more money and receive better benefits working for a well-established employer right out of school, there are many different reasons why choosing a startup company may be a better professional move.

More Opportunities for Upward Mobility

Because startups are still getting their feet wet, job titles and management levels are usually not set in stone. New job titles are added on a regular basis, as the need for additional help and professional specialty arises. Those who are already with the company are usually considered first for promotions (which happen on an everyday occurrence as the company expands and grows). In addition, because startups are so new, there are usually more upper-level opportunities available than at established companies (where managers remain in their jobs for years and new upper-level positions are rarely created). Keep in mind, though, that startups not only require their management team to be innovative but also capable of solving problems without precedent.

Increased Ownership

As one of the first employees at a startup company you may earn the opportunity to buy your own portion of the company, making you a part-owner of the business. This is a great opportunity for those who are expecting to stay with the company for the long haul and are personally interested in the business’ success and growth. It is also a great opportunity for anyone wanting to own and operate their own business without the heavy risks associated with sole entrepreneurship.

The Opportunity to Wear Many Hats

(Photo: vimeo.com/bwahdigital)

Startups usually can’t afford to hire a lot of workers in the beginning, so they often ask one person to do the job of two or three people. This may sound daunting, but it is an opportunity that most well-established companies rarely give their employees. It is an opportunity in that the company trusts that you have the knowledge and ability to complete several different tasks, even if it means learning new skills. Granted, you may not get paid fairly for your work in the beginning, but the experience you gain will be well worth the paycheck deficit. If you ever decide to leave the company, your resume will be stacked with a strong display of talent and skills, and if you stay with the company, your sacrifices will likely be well compensated in the end.

The Opportunity to Work with True Colleagues

In a startup, most workers begin on the same level. Everything is new to everyone, and all employees are given an equal opportunity to show their worth and make their mark. Because the structure of startup companies is more fluid and adaptable, management usually works hand-in-hand with regular employees; there is no “Wizard of Oz” behind a curtain handing down commands. Everyone works together toward the greater cause of success, and every employee’s ideas and opinions are valued for their potential to make the business more competitive.
The question that every college graduate should ask when choosing between a startup or an established company is, “How much am I willing to sacrifice in exchange for the adventure of working for a startup?” Established companies have already gained success and can afford to pay their employees higher salaries and better benefits. Startups haven’t reached their pinnacle of success, so they can’t yet afford to give their employees the most competitive salaries and benefits. However, this doesn’t mean that in the future they won’t be just as competitive, if not more so.

Seeing is Believing

Photo credit: kenjonbro

It’s good to separate between visions of the future and tangible plans being executed. Thinking of future scenarios may indeed be a healthy exercise in preparation and evaluating what path to take, yet intangible thoughts are not to distract you from the facts of the present reality. However, before these possible scenarios are brought to the present, they may allude you at the very best and distract and prevent you from fulfilling your mission, at the worst.

For example, you shouldn’t choose between the best distributor before you know what choices you have. Only by pursuing discussions with multiple parties, will you know what you have to choose from. Otherwise, if you choose the ‘right party’ ahead of any discussions and then only pursue discussions with that one party, then there’s no knowing how that discussion will turn out or if it will just disappear from in front of you.

Establishing a framework which to follow (your strategy), you should set yourself into execution mode and follow the tracks you had chosen. There will be times to evaluate and make decisions, but making a decision ahead of time is counterproductive, as you don’t know the decision is even yours to make. It’s like discussing fine print of a ten million dollar deal, without having the customer in the discussion.

Forks in the Road

In any path you take, you will find forks in the road, decisions on your path that have to be made. But making decisions based on real world input is part of your life as an entrepreneur, an every day part that shouldn’t be overly complicated. Sure you have to be analytical and make sure all plays into your grand plan, but over thinking every single decision will simply slow you down.

Ultimately there are few such decisions that have a fundamental impact on the path you are taking and cannot be taken back. In general in life there are few fundamental decisions, but it’s easy to see decisions as larger than they are. For example a cross pacific move is undoubtedly huge, however, there’s nothing that stops you from moving back. But it’s real easy to give meaning that may not even exist for small and large decisions alike.

It’s important to always weigh a decision and what actual impact it may have on your venture and try to be as honest as possible about where you are and where you want to be. And for you to stop on your path and have a look around, potentially switching the direction you’re going in, it has to be a substantial fork in the road.

(Photo credit: Time Out Of Mind)

Asian economies in the last two decades have witnessed a meteoric rise, in particular the Chinese, Indian and the South-East Asian economies. Though the recent crisis in the West had had its rippling effect on Asia, many believe its only a matter before the animal spirit of the dragon (China) and the tiger (India) reemerge. China and India aside, there’s an exclusive four, together known as the Asian Tiger and Dragon economies – Hong Kong, Singapore, South Korea and Taiwan, who have established themselves as world-class destinations for business.

While most economists and analysts are upbeat about Asia’s prospects, startup companies and the media have showed disproportionate interest in Asia. Take the case of European tech startups, most of whose expansion plans invariably end with either the Silicon Valley or the alleys of New York City. However a positive consequence of such a move is that there’s substantially lesser competition in many regions across Asia than in the West.

Why this indifference or deliberation when it comes to expanding to Asia? Some say it’s the cultural difference, while others just haven’t given it a thought. Well, if you haven’t given it a thought, consider these numbers:

# 4 billion or 60% of the World’s population live in Asia
# Asia will be the largest economic region in the next two decades
# 18% of Asian web traffic are on mobile, a growth of nearly 200% since 2010
#262 million Facebook users in South-East Asia & India, with another 200 million in Renren, the Chinese equivalent
# Chinese & Indian economies are the 2nd & 3rd largest in terms of purchasing power parity

Asia, despite its massive diversity, longstanding traditions and contemporary challenges of inequality, is still surging ahead and pretty fast. No wonder many of the world’s leading entrepreneurs are exploring ways to establish themselves in the region, especially in China and India. And here’s where South-East Asian nations have a massive advantage. Not only are they proximate geographically to both China and India, but they themselves are a combined strength of 613 million, becoming the 3rd most populated region in the world, and offering another lucrative market for entrepreneurs.

So how do South-East Asian countries score on the tech and social media front? Well, here are some numbers, courtesy Bernard Leong’s research. They include:

# 550 million total mobile subscribers
# 139 million Internet subscribers
# 3 million LinkedIn users
# 11.4 million Twitter users
# 6 million Foursquare users
# 54% of Singaporeans use smartphones
# 90% of Indonesia’s web users are on Facebook

Further according to the same report, Singapore seems to be the preferred regional headquarters for IT and Media companies, especially for sales, business development and marketing. The government agencies there seem only too happy to offer their support to entrepreneurs.

So the next time you think big, think Asia. And remember the route from Europe to Asia need not always be via the US.

Everything Looks Prettier from the Outside

Photo credit: Images_of_Money

Perspective is a hard quality to master, particularly on your first ride on the startup roller coaster. Have you ever noticed how people seem to congratulate you on all the progress you’ve made, the vast accomplishments and what not, yet you as the entrepreneur still inevitably feel like everything’s a mess and you still have about seventy two things to tend to, right now? It’s easy to forget what people see from the outside looking in, how they are watching from the sidelines and only observe different points in time, rather than the full story. It’s definitely not what you see behind the curtains.

Every market is built on a variety of different trends, audiences, technology advances etc, but markets are also inter-connected and affect one another often greatly. As the entrepreneur churns away at ‘all their problems’, there may be larger things in play that work in the entrepreneurs favor, that may not seem as apparent in the daily turmoil. However, they may be those things that set the stage for the daily turmoil to ever have a place and time.

Raising $15M will Solve All Your Problems

Entrepreneurs tend to think that at the early stages, the reason for their problems is the lack of capital. Sure, I’m not going to say that’s not partly true and managing capital is definitely a key part of your role as a founder. However, if you don’t know the direction you’re going, pouring $15M on an entrepreneur won’t give him any better sense of direction. Yet, the consequences and implications of experimentation at that point are a lot more dire.

Don’t for a second assume that it gets easier when you take someone else’s money. You’re essentially then placed with the job of multiplying those dollars for that person or partner – which is fantastic if you can do and less so if you can’t, yet either way it’s not going to be a walk on rose pedals.

There are countless of variations of stories about working with investors of all sorts, where the entrepreneur buys out the investor or leaves the relationship in any way they can. Then there are those stories where the entrepreneur gets or feels stuck. Like any partnership in your valuable company, getting in a high stakes relationship without a solid foundation and reason, can ultimately be futile and unnecessary. Think about it for a second, how would you act if you gave someone $15M of your own money? Or less even, one million? Would you let them run around and pansy at parties and enjoy life? I know I wouldn’t.

Silver Lining

More than anything else, you have to be realistic and evaluate the environment with the most honest and objective looking glass. It’s easier said than done, but one of the important things to keep in mind, is that there’s no magic fixes that make everything work. But that should be good news, because if there’s no magic trick for you, there’s also no magic trick for anyone else.

Dealing with valuations in an early-stage company is one of the most common issues we hear from entrepreneurs looking to raise capital through crowdfunding. It is and important issue not only in the short-term, because the amount of equity you’re looking to give away in your round can determine whether you successfully raise capital or not, but also in the long-term, as you think about scaling up in future funding rounds.

We asked Boaz how he helps entrepreneurs think about different methodologies for valuing their companies.

You can listen to the podcast by clicking here or by subscribing to the Everyone Funding Startups iTunes channel.

• 00:10 Introduction to Boaz Vinogradov and Navocate
• 01:20 What are the main principles behind valuing emerging companies and how do they differ from valuing publicly-listed companies?
• 09:20 Which methodology did Facebook had in mind when it valued Instagram?
• 12:00 Is there a place for ‘soft’ factors such as the team’s experience or the strength of culture in startup valuations?
• 19:55 What kind of additional data can help the valuation process for startups?
• 25:10 How can the ‘crowd’ learn how to invest in the new asset class of startups?
• 31:10 How can our listeners get in touch with you and with Navocate?
• 31:45 End

You can read more on valuation models by reading Boaz’s blog post entitled Business Valuation: Sell-Side, Buy-Side, and Soft-Side, and by going to Navocate’s website, www.navocate.com. You can also reach Boaz directly at boaz@navocate.com and +1 (888) 900-5866, Ext. 2.

Thanks for tuning in to this week’s episode of Everyone Funding Startups. Check out our new podcast page at EveryoneFundingStartups.com. And you can now interact with the show on twitter @growVCpodcast. Let us know what you want to hear…we’re listening.

“This is such a sunny optimistic place, I have not seen anywhere else in the world that builds true technology-based franchises”, a VC firm executive tells The New York Times about the Silicon Valley. In the same post it’s also argued that many of these technology-based franchises are now shifting base to New York City as they move closer to those from the media, fashion, finance and other industries, who they increasingly work with.

If this becomes a trend, it would soon put the Silicon Valley farther away from the action. However much farther from the US, 1000s of miles away, and with a 6 and 9 hour time difference from New York and the Silicon Valley, are two entrepreneurially thriving nations – Sweden and Estonia. Let’s look at how companies emerging from these nations have handled the distance dilemma.

Spotify gets it Spot-on

Take the case of Swedish music streaming company, Spotify, whose incredible journey to 20 million users began in the Swedish capital of Stockholm. Spotify works with the world’s top 4 record labels, EMI, Sony, Universal and Warner Music Group, all of which are headquartered, well, many 1000 miles away, proving that the time difference and distance may not be hurdles after all.

Connecting via Skype 

Another popular case is of the Estonian company Skype, now bought by Microsoft, which too had blurred the lines of distance. In this case not just for itself but for tens of thousands of companies through its VoIP calling service. Count the calls and you have the world talking.

So what do these companies and several others emanating from Sweden and Estonia have in common – Is it the developer talent or better support structure or is it the flexibility and global mindset? Well, one could say all of these and more, or simply that a bunch of guys had an idea and made it happen, nevermind the distance, time, space, and the other odds.

Not-so-sunny but Optimistic 

Well, the sun hasn’t really been on Sweden’s or Estonia’s side either, and when it has, many from the region seem to be holidaying elsewhere. That aside, those in Sweden and Estonia are entrepreneurially optimistic, how else does one explain the President of Estonia having his profile on a resume startup site, or the four times a year poker nights by entrepreneurs and VCs in Stockholm. While London and Berlin as European startup hubs have its advantages, the world’s next breakthrough may well be from one of these startups mapped around Stockholm city, or it could be that the Skype mafia decides to strike again. And then there are university incubators and accelerators across Sweden and Estonia that have over the years been fostering its entrepreneurial spirit.

More Ties, Less Distance

(Photo credit: likecool.com)

All these point to one beacon, that there are strong ties within the entrepreneurial circles in this region, including with those who have relocated. The challenge however remains whether these ties can be sustained as well as furthered by including those from other parts and from diverse backgrounds. Well, with the flux of the internet and social-networking platforms, there’s little choice. As Grow VC’s Alan Moore often says ”The next Silicon Valley is not a place it’s a platform’.

Everyone has their own style in running their own life, but at least for me, I’ve found that I can’t take half a vacation. It’s either work 24/7 and 110% and give it your all, or then step out and invest all your time into the longer term, flipping the ‘off’ switch. Even a few days every six months, does marvels for me personally, but it does require that I really hit the kill switch. Here’s three of my reasons why you need a break, and a real break at that;

10 000 feet

Beach Chairs  (Photo credit: Horizon2035)

In your day to day, jack-of-all-trades type of role, execution is key. All that execution will make it harder to see the bigger picture, as strategy and operational work are like water and oil. You simply cannot mix them in one role at the same time, without getting cluttered in your judgment. Advisory boards and mentors are great, but to live and breath your own venture, you need the right perspective as well. Ultimately, it’s not your advisors or your mentors that are responsible for your success. It’s all you.

While executing one thing after the other, it’s easy to miss a signal here and there. This all starts to register as you drown the noise and get away from the distractions, to notice those weaker signals you might have been ignoring, consciously or unconsciously. There is a reason why new ideas tend to pop up in unorthodox situations and while there is a degree of serendipity, opening up your mind is definitely a way to increase your receptiveness to your next ‘heureka’ moment.

Mental bandwidth

Among the most scarce resources in any company, is mental bandwidth. While depleted, this can cause clouded thoughts, bad judgment and lead to bad decision-making with potential repercussions. You can only include so many things in your own head, and despite spilling them all into online repositories, you will need to process quite a few things in your changing venture, environment and what not.

While you can’t exactly buy this bandwidth, stepping out of the mental office and hanging a closed sign on your forehead can give you the capacity you need to process things that might not otherwise be possible. Seeing issues and cracks with team members, future collaboration possibilities, new markets and trends – all things that you might already notice, but you need more bandwidth to actually see.

Running faster

Mental bandwidth and perspective are essential in seeing the direction to go. But when it comes to execution, done is done and faster is faster. Taking a breather and seeing all these pieces of the puzzle become more apparent, makes it so much easier to prioritize actions, get motivated and follow through on the bits and pieces that take you closer to where you want to be. Running faster, but in the wrong direction will not only be foolish, it will waste valuable time for both you and your venture.

When building disruptive, world-changing company, you have to accept that it won’t be achieved in 18 months and you should prepare for putting in the work for the big opportunity. It’s never a slam dunk and it will take a long time to achieve with the impact you started out seeking.

After all, you don’t run a marathon by running multiple 100 yard dashes.

The question is whether these acts of disengagement are just minor posturing, as new ways of cooperating with each other are being worked out? Or is this upheaval, one where social media forays and cooperation seem mutually-exclusive, where one-upmanship reigns over better user-experience? Well, only time will tell. But what’s evident right now is that these tiffs have inconvenienced users, and brought about the ire of the web’s many developers, most of whom have helped them build their base in the first place.

So how are the users inconvenienced? Take the case of the June 29 Twitter-LinkedIn break-up, where money was apparently the reason, has left many users deciding which made more sense – updates on Twitter or LinkedIn. Metaphorically speaking, the child has just witnessed a divorce and has to decide quickly on his or her preference.

But there’s hope, that the capabilities of today’s developers will enable these top sites to eventually get back to their collaborative ways. There are also the web’s pioneers and those like Yochai Benkler, who have time and again advocated the transformational nature of extensive forms of collaboration, and whose principles have many takers.

For instance, through Grow VC’s network of networks the very benefits of collaboration and partnerships are being realized, by having:
# An ecosystem for startups, investors, experts, etc.
# Crowdfunding integration services for existing setups
# Specialists and local talent recruits for multinational companies
# Development and management of new investment models
….And the possibilities just seem endless

The bottom-line here is that in a globalized future that requires multicultural competencies, transdisciplinarity, domain specialists and an adaptive workforce to implement accelerations in technological developments, collaborating may well be the best way forward. Let’s build the future, together.

Ambassador, Deputy US Trade Representative, Miriam Sapiro commented in her opening speech: “The US and EU have a nearly 1 trillion trade relationship. Yet there is further potential for growth – tackling trade barriers and enhancing trade opportunities for SMEs can lead to greater economic growth and support well-paying jobs on both sides of the Atlantic. The goal for these SME workshops is to bring together government agencies and small business stakeholders on both sides to share EU and US best practices in SME policies and programs, identify common challenges to exporting that small businesses face, and to develop concrete ways that the United States and EU can collaborate to help our SMEs participate more actively in transatlantic trade and strengthen business partnerships.”

Antonio Tajani, Vice President of the European Commission, continued “Entrepreneurs are the drivers of our economy. Only 13% of EU area SME’s operate outside the EU and we would like to find ways to increase that number.”

The events took place in Brussels and Rome. Jouko Ahvenainen, co-founder of Grow VC, spoke about new funding models and creating a more effective and transparent funding market cross national borders. Other speakers included Mr. Antonio Tajani, Vice President of the European Commission, Ambassador Miriam Sapiro, Deputy US Trade Representative, Ambassador David Thorne, US Ambassador to Italy, representatives from the US Department of Trade, the EU Commission and companies like the Square1 Bank, investment funds and funding services.

“It was an honor and privilege to be invited to partake in these important discussions”, commented Mr. Ahvenainen. “Grow VC sees it’s vital to participate in the US and EU discussions to develop growth funding and find new solutions to create more startups, that in turn create more jobs and economic prosperity”. One important theme in the discussion was the US JOBS Act that enables crowdfunding in a wider array, and also makes it easier for companies to reach public offerings (IPO). Mr. Ahvenainen commented “Crowdfunding is an important new instrument for unlocking funding for startups, and we have been happy to seen the fast progress of the JOBS Act in the US. We also hope the EU can create more common practices for crowdfunding for the whole EU area.”  He continues: “Crowdfunding needs a proper critical mass and it’s not realistic to only have national level crowdfunding markets in EU countries, but we should aim to create EU level marketplaces that can offer enough investors, deal flow and capital to achieve real, global success stories.”

David Drake, Founder of The Soho Loft Capital Creation Events, commented “The European Commission we met understand that a pan-European crowd funding for equity bill would be needed as entrepreneurs are leaving Europe for the US market.  The acceptance of donations, philanthropy,  use of credit and the US momentum from the JOBS Act in crowd funding just makes the US crowd funding accelerate while Europe has been stagnant in growth in the space.” The Soho Loft and Grow VC are leading cross atlantic discussions on policy for new funding models and especially for the crowdfunding.

In the US and EU new companies have an important role in creating new jobs. Both economies need solutions to accelerate the growth of the new companies. They also see increasing competition especially from BRIC countries and Asia. Grow VC sees it as very positive that the US and EU put significant effort to find new solutions to help startups and improve conditions in the funding market. It’s also important that entrepreneurs, investors and experts of the area are invited to share their experiences and perspectives with decision makers. We encourage also governments around the world develop this kind of an open dialogue.

Are safe jobs extinct?

World Citizen (Wikipedia)

Some might tell you to get a safe job, but the truth of the matter is, new graduates aren’t going to be spending their lives in the same company anymore. During the past few decades, people have changed jobs more than ever before in their careers. This trend isn’t going to stabilize in the least and never will it revert to how it once was, in the ‘golden days’. Rather than seeing it for an unsure career path, one might call it an opportunity to try many things before finding the one thing that really fits in what you want to do with your life. Odds are the more you know, the better your hit rate.

On the higher level, this means a clearer focus on producing actual value cross the board in all industries, which  while admirable and needed, calls for brutally honest measures in finding the right people for the job.

The pace of the world is restless

It’s said that half of a Masters degree is wasted because of the pace of change. Not to focus on education as an institution, but rather the worlds evolution, it’s not enough that you master one application, you must master the art of change itself. Entrepreneurs are often characterized by an inner locus of control, which in short means that they will find the certainty in themselves, rather than looking for it in their environment. This leads to a larger ability to control and act in an uncertain environment.

Not everyone should be an entrepreneur, but looking for certainty in an uncertain environment may be misguided and lead to false security, poor judgment and many other things. If you want to choose not to live in denial, having an honest perspective on the world will surely lead to a real foundation, rather one built on empty assumptions on the future. Accepting an uncertain environment is the start of that honest perspective.

Pace of life may have changed for good, but at the same time it is a reality we live with and closing your eyes will not change that reality. It’s a choice everyone has to make, in choosing how to live ones own life and what to value in life itself.

Global will connect local

Globalization should have opened many eyes, yet so many times we see those that do not yet realize, that their competition is not in the same classroom or down the street. It may well be that the real competition at any given time is in India or in Brazil. People that have a real burning appetite to prove themselves and make a real impact on the world, as well as a superb education and track record. The toughest competition may well be elsewhere, than we’d initially expect.

The world is changing so fast, that it’s hard for many established companies to keep up, but at the same time, the debacle is individual as well. Don’t limit yourself to what you think you know, but seek out changes and trends going on and take advantage of them.

Independence Day (Photo credit: Wikipedia)

In April, President Obama signed the JOBS Act into law and tasked the SEC to implement it by January 5, 2013. The SEC announced delays to meet the provisions which were set to be implemented by the 4th of July, however, assured of their commitment to the January 5 target. At a time that the American economy is crying for more job creation and economic growth, it would be unwise to derail the JOBS Act and prevent the empowerment of small businesses all over the nation.

Today celebrates not only the United States, but the embodiment of the American attitude to strive for greater things and the courage to reach higher. We’ve witnessed the great reception of crowdfunding in the US and are more committed than ever to bringing more innovation to the grassroots where it can be leveraged for a real impact on the nation, raising entrepreneurs and the economy to the glory they deserve.

We see the horizon in light of the JOBS Act and over the past several months, in our work with the industry, the industry organizations and associations in the US, we’ve also been crafting our own plans for the US in a more tangible form. These plans will see the creation of a US specific organization that caters to the American people. It will also handle companies that seek to utilize crowdfunding and the new paradigm shift in cultivating new growth and opportunities.

Ever since we embarked on this journey, we’ve seen a great reception and hunger for more access to opportunities in the US. From our speeches at various conferences, to the local partners we have worked and work with in the innovation community, this drive is only picking up. We look to the future hopeful and excited about the progress we have yet to see made.

From our global team at Grow VC, we wish you a joyful 4th of July and hope you celebrate, what we see as the strengthening of the American dream.

Last time I talked with Rahul was three weeks ago. He was as positive and enthusiastic as always. We talked about several new plans, and how Rahul also wanted to start new activities in India. I had a scheduled call about these new initiatives with him for this weeks Friday, planned monthly for the future. But that call will now never happen. The demise of Rahul was unexpected to all of us. Our thoughts are with his family and close ones. Rahul was always positive and optimistic. I think the best way to respect his memory is continue life in the optimistic way he showed us, and at the same time be thankful for each day.

We continue business with the IndiaCo team and want to implement those things Rahul planned. We feel we owe it to him.

Last week we spent some time in the in Berlin and met startups, investors, and companies that can help startups. Berlin Partner makes it important work to develop the startup ecosystem in Berlin by helping startups to set up functions, in finding investors and also attracting investors to the city. They have many practical programs for startups and entrepreneurs to move, find facilities, get the first funding and handle practical paper work. There are also co-working places in Berlin, e.g. Betahaus.

The advertising agency BBDO, which also cooperates with Grow VC, is an example of larger companies that also want to develop models to work with startups. They are working with models to support startups and also models to be more relevant for small and medium size growth companies. An important part of the startup ecosystem is that it is a combination of many components. Not only is it comprised of startups and investors, but also many other services, partners and customers. We don’t really believe in Silicon Valley copycat models; we believe more in Global Virtual Silicon Valley concepts and for different places to build their own unique concepts.

Due to its history Berlin doesn’t have similar ecosystem of larger companies than many other cities in Europe and Germany. It means that many people have no safety corporate position and they are willing to create their own business. It also means lower cost level e.g. for offices and apartments. Berlin also attracts a lot of people, who belong to minorities, or represent alternative culture or mindset to create new. Berlin Fashion Week is one example, how Berlin is also taking a position in design and fashion business. Berlin is the home of many creative designers. Many people around Europe and the US are finding new opportunities by coming to work in this creatively dynamic culture.

Grow VC Group is building its global network of partners for its Grow Global Program, which helps startups to establish themselves worldwide, get help to find customers, partners, and investors literally around the world. We also want to develop cooperation with local hubs in the US, LATAM, Africa, Europe, India, SEAP and China to find a good home or branch locations for startups. That’s why we are keen to talk with all cities, companies and people who are willing to participate in our network.

(Photo credit: Wikipedia)

I’m certain we’ve all read articles on TechCrunch or Mashable at one time or another. For many, it’s hard to not pay attention to the daily announcements of companies and their funding amounts. Of course it’s not just those two sites, but many more. Regardless of an entrepreneur’s age, for some this becomes a prime focus. There’s a concentration on money and not just for fundraising’s sake, with the allure of several million dollars. Some people begin making plans for personal spending with diminishing focus on what’s best for business. Others still have a great vision and steady plans for their company, but decide the term “by any means” fits during fundraising. Neither scenario is in the best interest of the company, but I’ll explain further.

Over the past decade or so there have been plenty of published stories about excessive salaries and embezzlement, but rarely do we hear of startups faking traction. The formula for a great pitch whether it’s VC, Angel or other, will always include traction. This is because it shows your company has engaged users, members, customers or whatever the case may be with your respective business. What this says is that you have more than an idea, that you’ve already put plans into action and have proof that plenty of people support your idea. Having a following is usually a crucial step in getting funded, with the exception of EIR programs, etc. Being that, many have found ways to speed up their funding process by creating falsified-traction. How, you ask? It’s similar to Twitter bots I suppose. One of the simplest methods I’ve observed has been fake user profiles.

Fake profiles give the appearance of a following that is larger than reality and it’s often expected that both other users and investors won’t be able to tell the difference. After all, who actually sits down and clicks through every profile? Or at the least, who sits down and clicks through every page of content on a website? Not many, but I do. I sit, click, engage and wait to see responses. Sometimes I’ve even compared responses and profiles for similar language and expressions. Other times, it has been a matter of checking account details which are non-existent combined with either no pic or low quality pics of the user.

The first entrepreneur I confirmed this with was in Hollywood, Florida in 2007. I was well acquainted with him as I’d spent plenty of evenings at his home with his family and friends. He’d launched several startups throughout his career and at the time had created a dating site, then a string of dating sites. All of which were populated with about 80-90% of fake users and profile accounts. When asked why, he simply said that it make it look as if they have more people on the sites. A little more than a year later I moved from sunny South Florida and decided to check up on the ol’ chap. Within about a year of its inception, the dating site receiving 10M dollars in funding from a single VC firm based out of Newport Beach and NYC.

This entrepreneur trudged along for 2 more years of paying overly high salaries to bad hires, advertisers and designers. He said he was focusing on scaling up, naturally. The problem that he eventually realized is that his community was not engaging, nor would it ever be. He’d spent his time paying people for services and paying to create thousands upon thousands of fake user profiles. What he forgot to pay, was to pay attention to actual (“real”) customers/members. The real people using the site would quickly stop, simply because the fake users weren’t engaging them. This guy would find that his site, who’s business model was based off paid memberships, would barely bring in 100K annually and that his investors would be on his back for the coming years because of it. His hair has now went from black to completely gray in that short amount of time. He’d eventually push for an IPO which at the moment, has been about an 8-9 month stretch.

Not every company that creates fake traction will experience this, but it’s a tale of caution nonetheless. As entrepreneurs we all see different opportunities and different possibilities to achieve results. There’s never one road to get to where you’re going, but the main focus should always be creating some sort of value for the customer. If they don’t see the value or the attempt to create it, they leave. Like a customer at a restaurant, it’s not much different. Bad service = No tip, bad review or worse, non-reoccurring customers. And if you don’t have anyone else in your restaurant, new customers will get suspicious if the food is any good. The situation can be applied to just about any industry with a few tweaks to the scenario, but I’ll leave the choice up to you. Will you take the easy way of “creating” traction in order to be funded, or will you be a real entrepreneur and do things the hard way by building a following with actual people?

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This week’s episode of the Grow VC Everyone Funding Startups podcast explores the Facebook IPO fiasco and discusses what the disappointing offering says about the state of the U.S. capital markets.

You can listen to the podcast by clicking the image to the right or by subscribing to the Everyone Funding Startups iTunes channel.

Joining us for this episode is Dara Albright, founder of NowStreet Journal – the voice of the private company marketplace. Dara explains why Facebook’s IPO is symptomatic of a broken public market system and how retail investors are “no longer willing to serve as the exit strategy for the privileged.” Dara also brings hope. She discusses how the the JOBS Act will democratize capital formation and return the public markets to their rightful place as the engines of economic growth.

Thanks for tuning in to this week’s episode of Everyone Funding Startups. Check out our new podcast page at EveryoneFundingStartups.com. And you can now interact with the show on twitter @growVCpodcast. Let us know what you want to hear…we’re listening.

via @daylife

The JOBS Act is intended to help increase job creation and economic growth in the US by helping startups get more access to capital markets. But as it currently exists, the Act is limiting and at times contradictory. At GrowVC, we feel it’s imperative to nurture the new crowdfunding for equity market in both the US and around the world. We have been working with the SEC since the inception of the Act to help policy makers understand where revisions in the document need to be made. You’ll find our official response to the SEC regulations imposed upon the JOBS Act  in the link below

>>Comments on SEC Regulatory Initiatives Under the JOBS Act: Title 3- Crowdfunding

In the long run, complying with a regulatory organization will strengthen this new industry as a whole. Creating a self-regulated organization is another initiative which is already in development by several of the leading platforms in order to create a firm foundation for equity-based models in the US. Doing such will also strengthen the confidence of all those taking a look into crowdfunding, both now and in years to come.

In the last week one portfolio company, US-based Lost In Translations Inc., published a press release about their opening beta. Today I want to tell about another portfolio company, Skimmler. Skimmler was established in Pakistan, its founders Adnan Khan and Suhaib Anwar, have the experience necessary to run their own company. Their company has done software and apps development for larger companies in Asia and the US. Now they have decided to launch their own product company.

Wayne Soh, Plugandplay Singapore & Adnan Khan, Skimmler

Grow VC came on board to Skimmler in the very early days of the company. Grow VC also supports the company in their operations, especially with funding, international business development and some commercial functions. We have together decided to move the company to Singapore, where it is easier to run international operations, get investors and protect IPR. We also considered other locations including Silicon Valley, but for now Singapore is a good foundation.

Skimmler publishes its first product later this year, but I can say it is the next step after Flipboard in reading. It will offer tools to read mass media and blogs and make the whole experience more social. It will also help many bloggers and smaller publishers to offer an easy-to-use app to read their content. But I don’t want to spill any more, you will see.

Adnan and myself were in Singapore a couple weeks ago. After some Visa issues that Adnan and Suhaib had; we met local investors, startup communities, incubators and other partners. We studied Singapore’s Entrepreneur Visa rules and also looked at some public funding schemas. We talked about strategy, next steps, targets for this year and many other things. We got a lot of positive feedback and interest in Skimmler.

This is something many entrepreneurs are doing and planning daily. It also tells that it is not only to build your product, but you must think many other strategic and practical things.  If you have international plans, one question is also to select the location for the company and find partners and support around the world. For many entrepreneurs it also means the practical questions of, how to get a Visa and working permit to a place and where it would be good or optimal to run your business. The Economist just had an excellent article about entrepreneur visa practices in different countries. Asia is a huge and growing market, but it is not a single country it is many and you have also many daily issues to build your business within the region.

We will also follow the progress of Skimmler and other cases in our blog. We especially hope that practical stories and cases can help other entrepreneurs in their work. This is a part of work to build a Global Virtual Silicon Valley where entrepreneurs, startups, investors, service providers, and professionals can work together regardless of location. Skimmler has just started its journey to become a globally known company and it is never an easy journey, but as a global Venture Community with many partners around the world, we will do it.

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This week’s episode of the Grow VC Everyone Funding Startups podcast explores the local startup ecosystem in Beijing, China. Our tour guide for this episode is Carole Wai Hai, founder of the Beijing-based startup grassRoots’ly and organizer of Beijing’s first iWeekend event. Carole uses her personal experience to provide entrepreneurs and investors with an inside look at the landscape they would encounter in China’s capital city.

You can listen to the podcast by clicking the image to the right or by subscribing to the Everyone Funding Startups iTunes channel. 

What’s the hottest startup industry? Where is the capital coming from? How supportive is the entrepreneurial community? What role do foreigners and international markets play in the local startup scene? Carole provides thoughtful responses to these questions and many, many more…

Thanks for tuning in to this week’s episode of Everyone Funding Startups. Check out our new podcast page at EveryoneFundingStartups.com. And you can now interact with (read: complain about) the show on twitter @growVCpodcast. Let us know what you want to hear…we’re listening.

(image via wikipedia)

If your larger model business organization is enjoying a bounty of success in your given market, you may be seeking additional ways to increase your company’s earning power. If your company has a surplus of funds available and you are itching to keep the money flowing in with as little effort as possible, investing in another company could be a sound strategy.Ensuring that you are investing in the right small businesses is where things may seem risky. You want to make sure your investment is rock solid so you can continue to tend to your own business while letting your investment do the work for you. Making the steps toward doing your due diligence will pay off in the future. Vetting the company is the key to understanding how it will mesh with your company, its financial goals and most fundamentally, its potential for long-term success and financial gain. ExactTarget increased its own cache with potential investors by diversifying its portfolio and reaching from email marketing into a more interactive Internet marketing hub.

Ultimately, when you investigate the health of a prospective company, you not only ensure that you will be profitable, you are also helping to seal a better financial health for that company as well. For example, if you see an essentially tight ship with some room for improvement, you may drive that company to a success it hadn’t previously considered for itself so it is a chance for two companies to create a mutually beneficial relationship.

One way to measure a company’s health and desirability, as a potential recipient of your company’s investment dollars, is to employ the Porter’s Five Forces Analysis to any given company in which you have an investment interest. Developed in 1979 by Michael E. Porter at Harvard, this five-prong framework created to investigate and analyze a given market, using the five forces the name suggests, to determine how competitive and attractive the market is that you are considering, drawing upon the industrial organization of economics, focusing on external forces.

However, Porter examined those external forces of competition in the market and while they work to make up three of the five steps in his forces, the other two focus on internal factors that may or may not lead to the success of the company. The tools that Porter’s Five Forces provides you with a reliable guide from which to draw data regarding and how to best use it to your advantage.

A brief breakdown of Porter’s Five Forces follows below:

1. Rivalry. Examining the amount of competition and rivalry — as well as the degree of intensity of that rivalry — that your prospective investment company faces is critical. Economists use industry concentration as one method to measure the degree of rivalry for a company.

2. Threat of Substitutes. A company becomes vulnerable to risk when its product’s demand is threatened by a change in price for a substitute product.

3. Buyer Power. Buyer power is when a product’s availability is greater than demand and buyers will have many choices of suppliers for the same — or a similar — product.

4. Supplier Power. When a company is at the mercy of suppliers who may drive up prices, they wield control over some markets, which may cause a shift in your prospective company’s power.

5. Threat of New Entrants and Entry Barriers. The potential for new companies in any market are always a possibility; therefore making even more potential competition in the market.

When you set to task to understand the workings of one or more company in which you want to invest, finding the right assessment tools will help you to choose wisely.

For those who don’t know, the NHL (National Hockey League) is a professional ice hockey league in the USA and Canada. It has been the best-known hockey league in the world and  also attracted a lot of top players from Europe to earn excellent salaries. Now another league, KHL, which has teams from the former Soviet Union region has taken a more important role in professional ice hockey and as well as having top salaries, but it is still behind the NHL.

Why was I skeptical and why did I finally like the comparison? I was skeptical, because I see it as important to see entrepreneurship in a much broader context than only startups that target VC money in Silicon Valley. There are a lot of small companies that never get or target Silicon Valley VC money, but they create work, a living and products for many people. There are also many international growth companies that are not in Silicon Valley, but they build excellent business e.g. in Europe and Asia. Some companies grow more organically (i.e. less risk investments), or they are not VC fit type tech firms, or entrepreneurs just found another route to build the business. I believe it is wrong to say to those entrepreneurs that entrepreneurs in Silicon Valley are the elite.

But then I thought about it more. I realized ice hockey is somewhat of an important sport in about 10 countries in the world. Many people in the world have never heard about the NHL and they don’t follow ice hockey, but they still are interested in sports. If you play football, rugby, basketball or another sport, you don’t target to go to the NHL, but you can still target a global top league in your series and you can still make a lot of money. There are companies that build huge business in the Asian market, there is Rovio (Angry Birds firm) that has grown in Finland and there are companies that sell services or products that are not for VC funding. Actually e.g. as a football player or golfer you can make much more money than NHL players and there are emerging Eastern markets like KHL in ice hockey.

Now I’ve started to like the comparison. There is one type of entrepreneurship where Silicon Valley can be the top series, but there are many other types where you can still get to the top in other places and in other ways. At the same time, we must not forget all these people who don’t target to be global #1, but they are sport people because they love it and it is their lifestyle. The same can be said with entrepreneurship. Many people run smaller businesses that are important for themselves, for their employees and customers, and for the local economy.

My point is not really to criticize or analyze the NHL comparison, but that the comment just triggered me to think about entrepreneurship on a larger scale and this is something I have thought about many times. Many countries want to promote entrepreneurship, startup ecosystems and risk funding. It is good as such. I just want to highlight the importance of remembering that there are many different models to create new companies and to grow them. We might also be limiting it too much by talking only about Silicon Valley type models. There could be many potential entrepreneurs that feel that they or their idea don’t fit to those models and give up. Silicon Valley is an excellent place for some companies and its model and attitude can be a good example, but if we really want to get global growth, work and happy people in startups, we must emphasize that there is not just one right model but are many right models to do it.

One more aspect is the funding market. Friends and family funding is more money than VC funding in the US and it is for many kinds of companies, not only for Silicon Valley tech companies. Crowdfunding, when it properly opens in the US, probably will not really compete with VC funding, but help companies that otherwise would look for bank loans or friends and family money. This is what Congressman Patrick McHenry also emphasized in the Grow VC podcast and if we look at the global IPO market, Silicon Valley doesn’t dominate it. There are many kinds of companies with many backgrounds that make IPO’s (some IPO statistics). Hong Kong has been the largest IPO market several times since 2009. These are just a couple of examples that the money is not only in Silicon Valley companies. Actually, this is a part where some Masters or Doctorate students could make more research work of how investment money comes to different kind of companies in different phases.

I know sometimes it is good  to simplify things to get attention and it is good to have role models for young people and I believe Silicon Valley success stories can be good for this. At the same time when we think of the local or world economy, how to create work, and how to encourage people to start companies and be happy entrepreneurs, that there are many models to do it and it is important that governments, universities, investors and other relevant parties can support different kind of models. This is also a part of our Global Virtual Silicon Valley concept; entrepreneurs, investors and other parties can work globally together. Only in that way we can have a real impact.

In this first episode of a two part series, Fred discusses the lean development of StartupStay and the preparation for its soft launch. Fred walks listeners through the various experiments he has conducted to “get out of the building” and test customer assumptions en route to achieving product-market fit. He also discusses how his own experiences using the StartupStay model have made him a better entrepreneur.

Fred will return to the podcast in the coming weeks to discuss the results of his soft launch – were his assumptions validated or does he find himself with the need to pivot? Stay tuned for this unique glimpse into the iterative process of product development.

You can listen to the podcast by clicking “play” below or through this direct link  (right click to save).

• What is StartupStay and how did you develop the concept? (01:33)
• How did you decide between an open platform vs. invitation only? (08:00)
• Is there a sufficient number of global startup ecosystems to support this concept? (10:35)
• Can you describe your experience staying with local entrepreneurs in Latvia? (15:30)
• How has traveling made you a better entrepreneur? (18:35)
• Can you describe your soft launch, the process leading up to it and what you hope to learn? (20:36)
• How can our listeners particpate in StartupStay’s soft launch? (28:50)

Thanks for tuning in to this week’s episode of Everyone Funding Startups. Please feel free to reach out with any questions or suggestions to ryan@growvc.com or connect on twitter at @rdavidwill. If you have any questions for Fred, you can reach out to him directly at fred@startupstay.com. You can also post your question as a comment below; I’ll be sure to ask Fred during our follow-up interview.

(Photo via Wikipedia)

Entrepreneurs and people building businesses (or any business division or unit for that matter), face an endless and hurdle-filled struggle to get up on top of challenges and conquer their part of the market. It’s this concept of a constant beta, that makes the environment uncertain and dynamic, to say the least. Looking for the light at the end of the tunnel may be a natural reaction and survival instinct, but for entrepreneurs, it’s really all about learning to see in the dark and enjoy the calamity that is being an entrepreneur.

After trudging through this dark tunnel looking at all glimpses of hope, it’s only natural to bathe in the light once you reach it. No sane person would look for the next cumbersome, near-death experience, right? Well, that’s exactly what the entrepreneur should be after. Like being allergic to the sun, the entrepreneur should be running for the next big thing, whether its an improved addition to the past success or diversification of assets to make sure success is continued. There is no stop.

You see accepting success as a given in so many companies that are fledgling after years of basking in the glory. For an entrepreneur, taking anything for granted should be an oxymoron that just doesn’t make sense. Blinking for even a second to enjoy the earned success, may indeed cause the collapse of an empire. Sure, that’s a bit dramatic, but so are the consequences of thinking ‘you’ve made it’. The truth is, that in any competitive industry (read, industry worth being in), you’re never finished. And it means, you are really never finished.

Several entrepreneurs that do make it to large scale success, then jump ship when the company reaches a certain level of establishment. This is also a natural instinct for those that learn to thrive in constant beta, which makes the established environment unbearable to them. It’s not to say that it’s not a natural progression in the life of the company, but it doesn’t need to be a progression that the initial founder or entrepreneur needs to take part in. It’s part of knowing ones strengths, which may not include running an already successful company or division, but rather building one from scratch or re-building one in distress.

Success is part of any entrepreneurs sought after path, yet success may not be attainable as a static, given right. Success may be part of the process itself, of finding and creating value through uncertainty and hurdles. In fact it’s really not about getting to the end of the tunnel, but rather the process itself of creating value, that defines entrepreneurship in it’s fundamental form.

Grow VC was invited to speak about new funding and business models in the digital business. Jouko Ahvenainen from Grow VC participated in the panel that covered topics from crowdfunding and new revenue models to the Venture Capital market and exit market in Asia. As with anywhere, there were especially two important questions in the panel: 1) what are the earning models in digital business when so much free content and services are available, and 2) how to get funding, especially in the early phase, when very little risk money is available. SingTel Innov8′s William Bao Ben told that a couple of problems for Asian VC’s is the shortage of really innovative companies, many of them are copycats and a weak exit market. He told that the biggest VC funded startup exit in SEAP (outside China) has been USD 30 Million.

A question from the audience started an interesting discussion, how to build a startup until it is ready to get VC funding. Today, investors want to see first products, market traction and good team before the company is able to get funding. But if you are just one or two entrepreneurs with an idea, how you get to the funding phase. There is no single answer to this, but this is something we have discussed many times earlier in Grow VC blog too. Some answers came up in the discussion, like Work Investment (‘sweat equity’) to build the first alpha or beta version, crowdfunding and a startup really needs doers to the core team (i.e. not only people who think visions and strategies).

Some other interesting comments from All That Matters presentations:

• Cindy Gallop: “Fear is the worst in business, it puts you to follow others, not to be unique.”
• Lachie Rutherford, Warner Music: “people in 20′s change a device 27 times an hour when they consume content, how to keep them.”
• Spotify has over 700 Million play lists created by users.
• 51% of Digital Matters delegates think games will be the biggest apps revenue stream, 17% believe in music and 6% in news.
• Panel comment: “news have never been a good business, also in traditional media news were often subsidized from other content.”
• Phil Chen, HTC: “sensors are the most important development in mobile in this year”

You can find many more quotes and comments in Twitter with hashtags #dm12 and #mm12. You can also read more from Virtual Strategy Magazine and more photos in Grow VC Facebook page. All That Matter is definitely an interesting event and we hope it is growing and takes a really  important role to develop startups, digital media and the content business in Asia as SXSW has taken in the USA. The Asian creative and content business might not be globally well known yet , but it is definitely coming and taking a more important role as many other things from Asia.

You can listen to the podcast by clicking “play” below or through this direct link  (right click to save).

Dave also discusses HootSuite’s tremendous international growth and the advantages and challenges associated with the creation of a global community. As is often the case with HootSuite, the company turned to its community of users to to assist with these inherent challenges. As a result of these efforts, any of our global listeners who would like to get involved as HootSuite Ambassadors are encouraged to reach out to @HootClub or on the HootClub facebook page.

Thanks for tuning in to this week’s episode of Everyone Funding Startups. Please feel free to reach out with any questions or suggestions to ryan@growvc.com or connect on twitter at @rdavidwill.

Questionnaire

We are planning several changes to our site, but at the heart of our plans will be our Grow VC members! To ensure that your experience with the new Grow VC will be unforgettable, we are looking for Grow VC members that are willing to be interviewed about their current experiences of the Grow VC website. Your opinion will guide our re-design and shape the future of Grow VC. As a thank you, we will promote the visibility of your profile on Grow VC in our newsletter and amongst our social networks. We’ll also give you a sneak preview of what we’re working on at the key stages of our development.

If you are interested please respond by Sunday 3 June. To participate you will need to apply via our application form: UX Research

If you have any problems with the application or any question in regards of the interview process, please contact:
daniel.delacruz@growvc.com

Thank you for your help!
The Grow VC UX Team

You can listen to the podcast by clicking the “play” button below or through this direct link  (right click to save).

In this episode of Everyone Funding Startups, we discuss Patrick’s latest book, The Lean Entrepreneur, and the crowdfunding campaign he has launched to finance its publication. Once again co-authored with Brant Cooper, The Lean Entrepreneur provides guidance to make the iterative design process immediately actionable for all entrepreneurs, regardless of industry. Patrick also discusses his decision to crowdfund publication of The Lean Entrepreneur and how crowdfunding can (and should!) be used as a tool in the process of achieving product-market fit.

Thanks for tuning in to this week’s episode of Everyone Funding Startups. Please feel free to reach out with any questions or suggestions to ryan@growvc.com or connect on twitter at @rdavidwill.

Grow VC will be speaking at the CEED conference in Warsaw, Poland on May 25th. Come and listen to new funding models and how they present growth opportunities for innovative nations. We are glad to get in touch with local partners that are looking to realize this challenge as we at Grow VC have built and can provide the tools to get started on this journey.

We will also be in Brussels for the following week, the last week of June. There we will be present at the Inaugural European Crowdfunding Networks Meeting. We are glad to support the markets development and see many learnings from global markets being leveraged for the betterment of the market also in Europe.

Grow VC is building the ecosystem for crowdfunding and fostering new innovation by working with local, national and global partners that see the value and are interested in realizing crowdfunding and new entrepreneurial models for their operations. The networks program is at the heart of the tools to cater to local and interconnected operations. Increasingly we see the attention to new funding models from other partners, like Universities, Incubators, Accelerators, but also from later phase investors, traditional actors and others looking to leverage crowdfunding to give a boost to their existing processes.

Do get in touch if you want to work with Grow VC and we will be glad to meet in person. Get in touch by sending an e-mail to meet@growvc.com or Tweet us at @GrowVC or @NjSavesTheDay

• Singapore, May 21 to 24
• Hong Kong, May 25 to 28 and June 3 & 4
• Beijing, May 29 to June 2

Grow VC is active in Asia and develops many models to operate with local startups and investors. We also have several of our Asian portfolio companies traveling with us, and we work closely with them to find the right partners, clients and investors. It is an integral part of our work to help startups. Our models are not limited to offering a marketplace to get a one-time money injection, but to build successful and sustainable business.

We see Asia as one of the most interesting new startup areas for the future. Of course, there are a lot of differences between Asian countries, but many of them have started a transition from the industrial era to the information era. Startups and new innovations are becoming more and more important. We want to support this development, by developing the funding market in the transition, but also with models such as the work investment  model (‘sweat equity’) and by supporting portfolio companies to get international contacts, partners and talent to develop their business. We will soon report more about some new portfolio companies, especially of one that travels with us to set up contacts in Singapore.

Grow VC also participates and speaks at Asia Matters event in Singapore on May 22 and 23. You are welcome to meet us there. If you want to meet us and talk more in Singapore, HK or Beijing, just email or tweet us. We constantly look for interesting startups, partners and people to join us on the journey.

How to:
When in a startup profile click the “evaluate” button, then you will be able to select any of the available scorecards from the list to use for their evaluation. In case of an invitation to evaluate, view the evaluation event notification by clicking the link in the startups listed. This will take the evaluator directly to the startup evaluation with the preset scorecard open on top of startup profile.

The actual evaluation is done with the scorecard being open in the bottom of the page on top of the startup profile. This way the evaluator can easily see all details available in the startup profile. Naturally the evaluation can also be based on any other information available to the evaluator from the startup in question; being that an offline event, pitch, meeting, or with previously known details.

By hovering the mouse over the evaluation topic name, the evaluator can see the description and by hovering above the value it will show the value description. This is done to make sure the evaluator can choose the most suitable value for his/her evaluation. Hovering the mouse over the evaluation item name will show a description and hovering the mouse over a single definition value will show the explanation of that value. The evaluator can select the proper definition values that best fit to each evaluation point in his/her own opinion from the definition available. In addition, the evaluator can add notes and then save or cancel the evaluation.

Evaluation results:
Each evaluation will record time & date, evaluator name, startup name that is being evaluated and event details along with the values selected per evaluator (each evaluator does their own evaluation). In addition each evaluator can also add their own additional text notes. Evaluation details are saved per evaluator and per startup being evaluated.

There is a view to see evaluation results per evaluation event. It is a list view that shows all related information based on the evaluations given. Each evaluator can see their own evaluations given. The Network team can see the evaluations given in their own network and startups can see the evaluations given from their startup along with the suggestions provided from each score level. Sharing the information to the startup about who did each of the evaluation is set by each evaluator independently.

I believe that the best part about the evaluation process is the anonymity. We give members the option to be anonymous for those who feel less comfortable, which may be a concern when critiquing startups. Our current scorecard on the platform has been titled, “Reality Check” and for good reason. There are big opportunities and there are niche ones, but either of the two can be truly HUGE. The Reality is that the startup ecosystem, as well as the financial system, is rapidly changing and with the Jobs Act being passed many more opportunities are being born. This makes it the perfect time so stop by, try out our evaluation tool and send some feedback to entrepreneurs. Or better yet, stop by and evaluate GrowVC

Photo credit: Wikipedia

For all those brilliant and driven people looking to jump this opportunity in a revolutionary market, we offer a painful, but high reward opportunity within our global team at Grow VC. The reward being, a piece of history and the success of the Grow VC company (to clearly spell it out: earn Grow VC equity). We’ve built our global team of over fifty individuals with the same model and have had great success with building our entrepreneurial culture. However, as the market matures and the value of our company increases, we can only offer the entrepreneurial model for a short while longer, at least on the same terms.

Joining at this point, you still have great opportunities to build your own position in the success of our global company and ‘make yourself‘ in this fundamental change in the world of finance. We have great plans for the coming market and are following various different tracks, where there are many opportunities for different types of people in different markets. Results will not go unrewarded at Grow VC and by building your own path into the company, you can truly leave a mark on the world. When the market develops to its peak in a few years, surely many will see the big opportunity only some see at this point. Wouldn’t you like to already be involved at that point with the big opportunity? Wouldn’t you like to have a share in it then?

At the same time, as the company gets more and more successful, many positions in the company get spoken for and trust built between individuals, as many are smart enough to join early on, in stead of waiting around. There is no shortcut to building a position in the Grow VC organization, just hard work and results that speak for themselves. Therefore the earlier you get involved, the farther ahead you can be when the market hits it’s exponential growth. In a few years many people will be wondering, how did that guy / girl end up at at that position in the hottest market on earth? This, may well be how.

See our current openings and apply to join our team. If you’re looking to partner or run your own crowdfunding platform, see the Networks Program.

Emma is a small-business expert and the author of books including ‘Spare Room Start Up – how to start a business from home’, ‘Working 5 to 9 – how to start a successful business in your spare time’, ‘Go Global – how to take your business to the world’ and ‘The StartUp Kit.’ She launched Enterprise Nation in 2006 as a website to help anyone start and grow a business from home. The company has since expanded to offer online services, publications, events and finance to small businesses across the UK.

Listen to the podcast on the player below or here directly (save as for mp3):

• The start of StartUp Britain (00:40)
• Emma’s background and Enterprise Nation (02:35)
• What Startup Britain encompasses now (04:38)
• Graduate and young entrepreneurship (09:25)
• Why the Finance 4 Startup Britain event is so important to the campaign (11:30)
• The main topics for discussion at the Finance 4 StartUp Britain event (13:29)
• Emma’s optimism about entrepreneurship in the UK at the moment (15:20)
• How StartUp Britain works with Startup America and other similar organisations around the world (18:52)
• What is next for Startup Britain? (20:34)
• Who should be getting involved with Startup Britain and how they get in touch (22:30)

Emma and StartUp Britain have been kind enough to invite GrowVC to take part in the Finance 4 StartUp Britain Week, which is a week of free financial seminars, keynotes, panel debates, Q&A Sessions and networking opportunities commencing the 14th of May.

We will be discussing ‘Non-Traditional Early Stage access to finance through a panel that explores the different types and models for crowdfunding platforms’ alongside an excellent panel on Tuesday 15th May in central London.

If you would like to come along and learn more from high-profile speakers and business advisors about financial issues for starting and growing businesses, don’t miss out and book your seats today by visiting the Finance 4 StartUp Britain website.

You can also get involved in the StartUp Britain campaign by going to their website, http://www.startupbritain.org.

Along the way of developing the Micro Investor model, we actually decided to create an animated video to explain the process. Wanting this video to touch all basis of the concept and still be fairly simple, the once small task turned out to be a bit more complicated than we first thought. The first issue to address would be the time constraints. Aside for the total duration of the video, we had to decide what animation techniques would be used. We went with stop motion, which is creating the content and then physically moving each figure or item. Each frame is essentially a snapshot and not a sequence of slightly altered drawings. The best known example would be the old cartoon Gumby.

We went through a few different versions of the storyboard with artist, Viswa Swarood Dandu, before having the finished product. Instead of focusing on the detail of the animated characters, we wanted to emphasize the idea of micro investing and of crowdfunding itself. The main idea would be to show that anyone can now be an investor and with small amounts. This would include a wide range of people with their own reasons for investing, but most importantly for the general public to watch and understand that now they too can be involved. For many years in the US, only accredited investors were able to be involved. With the passing of the Jobs Act, the door is now open and GrowVC is at the forefront of the crowdfunding movement. Team member, Brett Bivens explains the process as Peter in the video. Which I now present to you.

As part of the pre-summit preparations, there is the Open Innovation Africa Ideas Challenge (OIAS2 from Ideas to Innovation), a competition open to all technologists, application enthusiasts, developers, students, entrepreneurs, influencers and experts. Those attending are encouraged to promote the creation of new mobile innovation services and collaborative models for Africa. The crowdsourcing platform http://www.ideasproject.com, will accomplish this by allowing anyone who is interested to submit their ideas. The top 3 ideas submitted will win a trip to present their respective ideas at the Open Innovation Summit in Nairobi on May 29-30, 2012. This Africa initiative will be evaluated by the sponsors; Nokia, Capgemini and infoDev at the World Bank using the following criteria:

• Impact: societal, business, innovation
• Scalability: how this tool or practice can be ported to different scales and contexts
• Novelty: whether the idea is social or technological it should present fresh thinking and creative problem solving

The overall theme for the summit will be Leadership for innovation. The agenda will be built around the following four areas of interest:

• Technology/Innovation Financing
• The Mobile Information Society
• eTransformation
• The Ecosystem for Innovation

The pace of African mobile growth and penetration is alarming. While the mobile market penetration in Africa will reach 60% among Africa’s one billion people in 2012, it is already at 100% in some African countries. The Open Innovation Africa Summit will seek to continue stimulating the innovation debate on how to harness, leverage and nurture the great opportunities that lie ahead for Africa.

(image by Michael Gorzka)

While reading through my Twitter timeline recently, I saw one tweet that really caught my attention. It was a response to a Quora question which asked something along the lines of, “Do entrepreneurs just say they’re passionate about their venture in order to get money?”. Well I digress, it was a bit harsher than that. It was more like, “Is ‘i’m so passionate for this idea’ a BS story from founders?” The individual expanded on this in a way which made their question actually seem reasonable. They explained by asking how can anyone be passionate about sending and storing files or making invoices, etc. Airbnb and Paypal were mentioned directly as were a few others. Their main point was, how can companies like these have founders who claim to have passion for what they do? Although I didn’t agree with all of their examples, there have been times where I ask myself, “is this company serious?”. So I read on.

David Rose, founder of Gust, responded and told a story about a debt collector he overheard on a flight. He was amazed to hear how a debt collector, whom many would consider the job to be scum, was so enthusiastic about what it is that he had founded. It wasn’t about the fact that he made very good money, but that he was happy to help people who made the wrong credit decisions in life and felt they deserved to be put back on the right track. This put things in perspective in a few ways.

Any vision can have passion. Passion is in part about recognizing an opportunity and the thrill of figuring out how to make it work while adding value to customers in some way. The world is full of all kinds of industries and different individuals with varying tastes. Some people like comic books. In 1993 when the first mention of an X-men movie came about, nobody would have imagined how Stan Lee’s passion would finally reach monumental heights in a few more years. I once read about an entrepreneur who’s company buys and sells used cardboard boxes. There were a few years where it seemed like the company would go under, but the enthusiasm and optimism of the founder has turned that around and created a booming business.

In this world, there are numerous possibilities and opportunities that can lead to success. Chances are, that just about anything you could create has a market. It’s not about the product itself, It’s about you believing in the vision you have for it and about how you execute a plan to achieve it. How in depth you know your niche and what ways you plan to expand upon it are the fundamentals of this, but those two things alone would be nothing without a strong drive to see it through. That drive is the essence of passion and It would be nearly impossible for any company to succeed, if the people behind it didn’t have the desire to.

This week’s episode of the Grow VC Everyone Funding Startups Podcast explores the link between global entrepreneurship and international diplomacy. Joining us to discuss this powerful connection is Shelly Porges – Senior Advisor at the U.S. Department of State and director of the department’s Global Entrepreneurship Program (GEP). Shelly describes the startup ecosystems that exist in GEP target countries and the successes and challenges she has experienced in her quest to spur global innovation.

You can listen to the podcast by clicking the “play” button below or through this direct link  (right click to save).

• General mission of the Global Entrepreneurship Program (00:50)
• The link between entrepreneurship and international diplomacy (03:20)
• Specific examples of Global Entrepreneurship Program projects (11:00)
• What does startup finance look like on the global scale (12:50)
• Can impact investing play a role in this space (16:50)
• How will the increased use of crowdfunding affect global startup financing (20:10)
• How to get involved with the Global Entrepreneurship Program (25:00)

Thanks for tuning in to this week’s episode of Everyone Funding Startups. Please feel free to reach out with any questions or suggestions to ryan@growvc.com or connect on twitter at @rdavidwill.

(Photo credit: Sasha Y. Kimel)

Throughout the entrepreneurial world there is a common pattern. Maybe through the success of Silicon Valley, a notion was created in the investment world, that software or tech should be the focus because of low overhead and high returns. News stories and blogs have a persistence with reporting what is going on in the tech world. Today it seems that if one says they are an entrepreneur, it’s immediately assumed that you are involved with either an internet startup or with apps.

With the large valuations of platforms such as Facebook and apps such as Instagram and draw something, It’s understandable that others would want to clone the success. Since the Instagram deal i’ve noticed an increased promotion of the app Via.Me, which is a creation of serial entrepreneur, Gurbaksh Chahal. This is another Instagram type of app as well. I always read a lot of talk about innovation here in the US, but i’m actually going to disagree with that overused expression.

Here in the US, we actually see less and less creativity and more tweaking of preexisting ideas. Granted, that any one thought may be the same idea of countless others around the world, but i digress. Let us take crowdfunding as another example. Since the Jobs Act, i’ve received a slew of new followers from new crowdfunding platforms. Some of these seem to have appeared overnight. With the passing of the Jobs Act comes a whole new set of funding possibilities for all categories of startups. So here, we now have the chance to create something new and not just another tech bubble. An entrepreneurial ecosystem where more startups of all different kinds, have the same possibilities to seek funding and there is more of a chance to actually seek out real innovative ideas.

More individuals are now able to invest in companies, rather than only accredited investors with specific tastes or investment interests. Anyone can actually be considered an investor. Essentially, whether many realize it, these individuals have the ability to set a new course in the history of entrepreneurship and potential prosperity. There will now be a whole new population of investors each bringing along their own individual idea of what they believe investing to be. It is no longer just the top dogs of the financial industry, but a set of fresh minds ready to begin their first investments. In a sense, they can be thought of as micro-angel investors contributing towards dreams and visions of the future.

With an increase in crowdfunding in the US, this is bound to impact the rest of the world. Already, one company has announced it has raised funds of 4.5M in only 7 days using Kickstarter’s platform. However, the platform does not offer equity for investments but rather collects donations in exchange for rewards to contributors. Nonetheless, it’s going to be interesting to see how things progress on sites such as our own, where you can own a piece of a startup’s journey. Even more exciting, will be seeing what happens as more platforms begin working together to draw even larger crowds around the world. GrowVC has already begun this process with our Networks Program and we can’t wait to see what new possibilities unfold for entrepreneurs around the world.

There are many startups on Grow VC and as in High School, sometimes the guys with the cool names or stylish look get the most attention. Since joining the platform, before I was ever a team member, I’ve always made it a point to actually interact with the community. I don’t mean just clicking thumbs up, I actually write individuals that generally interest me. This could be simply because I see that person’s motivation and determination. Other times, It could be because what the company does or plans to do is just actually amazing. This was the case with BOOSTER Space Industries. Whenever I follow a member, I read everything about them and that includes their web presences. One day, I came across a simple profile which hadn’t been fully filled out but interesting nonetheless. Balvinder Powar of an aerospace startup. I believe the profile hadn’t even received any followers although it had been created months earlier. Over the course of several months now, I’ve spoken to Bal about his startups both past and present. A passionate entrepreneur, mentor and all around humble person, he has made a leap into an industry he only dreamed about as a child. An industry which the mass of the world’s population assumes is dominated by NASA and inaccessible technology. Balvinder also gave me access to his cofounder and CEO, Dr. James Murray

Dr. Murray took the time to share the vision of BOOSTER and eloquently states, “Like the development of the great intercontinental sailing ships of the 14^th-15^th centuries that opened up worldwide commerce, like the advent of the steam engine that turned plentiful hydrocarbon resources into mechanical work, or the vacuum tube that enabled us to start controlling the electron, technological breakthroughs are important. But the markets must also be ready to exploit and apply this new found knowledge to some benefit. Governments have typically sponsored the initial stages, and they have done this over the past 50 years with space. This opens up routes, demonstrates feasibility, and discovers opportunities. Nevertheless true exponential growth has commonly been driven by private and commercial pursuits. And space access is now ready for the next step.”

What many people don’t know, is that space travel essentially stopped evolving after the pioneering of several techniques around 30 years ago. One of those, is the suborbital launch, which has been used for a portion of US Shuttle launches. The basics of which is to have a smaller space craft piggyback riding a larger plane such as a 747, or an Airbus A300 as BOOSTER uses. Once reaching a level around 30,000 feet of earth’s atmosphere, the craft will detach and launch its 10 passenger payload and reach Mach 4 (4 times the speed of sound) within 60 seconds. The craft will use some of the same engines America has relied upon for the past 47 years, the RL10 manufactured by Pratt & Whitney Rocketdyne of the US. Flying 60 miles above the Earth, the cabin features windows uniquely designed to give a panoramic view and an enlarged door for loading up to one ton of experiments. Beginning in 2016, over the next 10 years time BOOSTER will be expect to fly 2000 passengers per year with various packages ranging from $50k for small automatic payloads to $200k for an individual’s full ticket into space to start with, with the goal of significant price decreases as economies of scale kick in.

Dr. Murray explains, “We are opening up space to a new set of markets, where we will make space available. We are also avoiding Big Market Objectives to start with. If space is to become more accessible, then it has to be more affordable. This is why going sub-orbital for around an 1 hour rather than going orbital to an extremely expensive Space hotel for more than 1 day is the right next step.”

As Star Trek put it, Space..the Final Frontier. The founders of BOOSTER also believe deeply that it is in fact the next frontier to be conquered. The groundwork for space travel has been laid since the 60′s and now 50 years later, it is nearing the time to increase operations in space. Many possibilities exist, from mining to synthesizing new materials in space. Opening the doors to more companies and individuals will allow the industry to become more sustainable. This will help to fuel growth for both BOOSTER and the industry as a whole as the projects become more and more ambitious.

“BOOSTER believes that extra-terrestrial economic growth will significantly outpace terrestrial growth. The true opportunity in the long term is most likely to be beyond anything we can predict. For the tapping of new material and energy resources is on a scale beyond anything that humanity has experienced before. This cannot be ignored by any entrepreneurial mind.” -Dr. James Murray

For more information and a video, visit the following links http://www.elmundo.es/elmundo/2012/02/16/ciencia/1329400104.html   and   BOOSTER SPACE INDUSTRIES

Click Image to Play Episode

This week we were joined by Dr Jo Twist, CEO of the Association for UK Interactive Entertainment (UKIE), to discuss the potential impact of crowdfunding on startups and developers in areas such as gaming and digital media worldwide.

UKIE is the only trade body for the UK’s wider interactive entertainment industry. It exists to champion the interests, needs and positive image of the videogames and interactive entertainment industry whose companies make up its membership.

In February 2012 UKIE released its Crowdfunding Report, which outlines why access to finance is a key barrier to growing the interactive entertainment industry in the UK.

Listen to the podcast on the player below or here directly (save as for mp3):

• An overview of UKIE and Jo’s background in tech journalism, digital media, and academia (00:30)
• Why ‘gamification’ isn’t the answer to everything in user experience (03:14)
• What prompted UKIE to publish its report on crowdfunding (04:40)
• The different models of crowdfunding and how they can help startups and developers in Interactive Entertainment (09:30)
• The impact of the recent UK Budget on the industry (16:42)
• UKIE’s events for startups and developers (19:55)
• How to get in touch with Jo and how to get involved with UKIE (22:30)

You can learn more about UKIE and become a member by going to their website http://www.ukie.org.uk. Follow Jo and UKIE on Twitter and get in touch with Jo by email at jo.twist@ukie.org.uk!

After months of lobbying, debate, and political compromises, the United States has finally embraced crowdfunding. Last week, President Barack Obama signed into law the Jumpstart Our Business Startups Act (JOBS Act).

(Photo by Esthr)

The crowdfunding part of the legislation incorporated provisions from Senator Scott Brown’s Democratizing Access to Capital Act, and Senator Jeff Merkeley and Senator Michael Bennett’s Capital Raising Online While Deterring Fraud and Unethical Non Disclosure Act of 2011 (known as the CROWDFUND Act). Most important for Grow VC member entrepreneurs, a startup will now be able to raise up to $1 million per year through an SEC-registered crowdfunding portal such as Grow VC. Even more importantly for individual investors, the final legislation will allow U.S. citizens and residents with incomes less than $100,000 per year to invest the greater of $2,000 or 5% of income, whichever is greater.

Individuals with income greater than $100,000 can invest up to 10% through an SEC-registered crowdfunding portal, up to $100,000.

In a statement last week, Senator Scott Brown said “Crowdfunding is a game changer for startups and entrepreneurs in Massachusetts and across the country. These small businesses now have a powerful new tool to grow and create jobs. And now every American, regardless of income level, is able to invest and get in on the ground floor of a great business idea. This bill has great potential for our economy and job growth.”

The greatest concerns that certain lawmakers held on to throughout the lawmaking process were those relating to preventing and prosecuting fraud. The final version of the law has placed oversight of websites like Grow VC into the realm of the SEC, which now has 270 days to draft further regulations for this new investment sector. Of course, Grow VC has a legal team already deployed to monitor this rule-making in order to quickly become compliant to best serve our members.

The law also requires startups on websites like Grow VC to provide information in the way of business plans, financial status, and shareholder risks. Companies seeking to raise up to $100,000 will have to provide tax returns and a financial statement certified by a company principal. Companies seeking between $100,000 and $500,000 will have to obtain independent accounts to review these statements. For companies raising over $500,000, audited financial statements will be required. Grow VC will fully enforce all of these requirements, assist our startup members with compliance, as well as provide additional protections for all of our users.

In addition to the emerging growth company and crowd-funding provisions, the new law removes SEC regulations preventing small business from using advertisements to attract investors and raises the number of shareholders a company can have before it must register with the SEC from 500 to 2,000. This may be particularly relevant for our Networks users, who will be able advertise their Networks to reach a much broader audience.

In 2011, equity-based crowfunded projects like those currently on Grow VC raised $20.5 million, five times more than in 2010. We expect 2012, and especially 2013 to be massive improvements on these numbers. The SEC has 9 months to craft all of the nitty-gritty of the regulations, and Grow VC will be there every step of the way ensuring we are the first to be compliant with the new laws and generate maximum value for our users.

You see many individuals flocking the ‘startup movement’ as the biggest new craze on Planet Earth. What you also see, is a lot of these individuals jumping ship left and right from one startup to another, only staying in one startup for a limited period of time. How would you feel about a potential partner, that can’t commit to more than a year in a personal relationship?

(Photo credit: Wikipedia)

Alright, the personal relationship is a little bit of a stretch, but I rest my case. If the person applying to work at your startup, has worked at the hottest startups (or why not any other company for that matter) always switching from one to another, what does that say about them? If they’re likely to always look for the sweetest deal for the short term and not make a substantial commitment to any company, would you really want them as part of your team?

Startups are bumpy and people get bruised. Don’t look for those that will bail at the first sight of trouble. Looking out for the biggest personal opportunity I can respect, but at the same time building a successful company takes time and you’ve got to put in the work. If you can’t commit to any company for longer than a year, then it’s worrying, to state the least. Six months is when you get to the real things and even at a year, you’re only getting started. Speaking of that longer term opportunity, the biggest rewards come around only after a while. Don’t expect an upside for free.

Those joining a startup with open eyes have a vast opportunity ahead of them, especially when in the ‘right boat’. Sure, startups aren’t as glorious as the press will lead you to believe, but the amount of experience, contacts, impact and so on you can have is unheard of in other environments, like your average large corporation. But everyone should be very honest about their own agenda for joining a startup. If you’re going to flake out in six months or a years time, make sure to let the startup know, as they will most likely be looking for those that can share their future success.

Building a team in an uncertain environment is a challenge, but in any context it’s the most important thing to get right in a company. It isn’t a walk in the park though and there are no shortcuts, you will have to build it one person at a time. Therefore you need to be extra cautious of warning flags that lay themselves in your hands. If you ignore them in the beginning, you’ll have to deal with them along the way. And most of the time, you need to deal with reality when it’s right infront of you, not in a years time when it blows up in your face.

President Barack Obama discusses his jobs plan.. (Photo credit: Wikipedia)

The JOBS act was signed into law by President Obama on Thursday 5 April, supported by overwhelming bypartisan support.

Grow VC has been active in pioneering the new market and since last year supporting the bills passage through Congress. A lot of work has been done much earlier with our global operations in building awareness and best practices in this emerging field. The movement of democratizing startup funding has been escalating in momentum since the past few years, but the impact is still only a fraction of it’s full potential for the economy. The support from US Congress is positive in seeing the fundamental changes that are impacting startups and investing in startups, but also the impact on the economy such a movement will have. We’ve also discussed this topic with the father of the bill, Congressman McHenry on our podcast.

President Obama stated:

Overall, new businesses account for almost every new job created in America. For startups and small businesses, this bill is a game changer. Because of this bill, startups and small businesses will have access to a bigger pool of investors.

What comes to the future beyond the signing of the JOBS act, however important, it is only a mere start of the future of startup funding. Grow VC continues its work to hone a sustainable and efficient framework for crowdfunding, but also tools and models to leverage crowdfunding for other types of investors and organizations. Therefore Grow VC works with hundreds of partners in it’s Networks Program, in order to include more information, support and infrastructure to early stage entrepreneurship. With the right framework and infrastructure, the JOBS act can truly kickstart the economy for new competitive advantages.

We at Grow VC applaud policy makers for their strong support and leadership to support the US economy and job growth. This is surely the start of many new success cases, both from the sides of entrepreneurs, as well as their investors.

Image via @daylife

Many entrepreneurs wonder if they may vet investors just as they are to be evaluated in turn. The answer is yes! These are people who may be investing in your company so not only do you have a right but a duty to find out as much about them and their investment strategy as you can. Doing so will save you significant time and energy.

The best strategy is to ask the following six questions before you reveal the details of your business concept. If any investor is hesitant to answer, move on to the next.

Have they invested in other companies over the past 6 months, year, two years? Before revealing too much about your business concept you want to first determine whether this person is a genuine angel investor. A serious angel will have invested in at least one company over the time period noted above. If the angel has not made many (or any) investments during any one of these periods, ask for a realistic assessment of your chances to obtain funding. If you receive a vague response, such as “I’m currently reviewing several proposals” it may be that this person is not a genuine investor but only seeking to hear about new ideas. A common method for an investor to get out of a deal after they have obtained all the information about your concept is to attach unacceptable terms, such as significant input into business operations or unrealistic expectations of performance.

What are their specific criteria for investing in company?  This question is one of the first you should ask. You want to know at what stage of the business they fund (i.e. concept, beta, product launch, first customer contract). If your needs don’t mesh with their funding strategy you can cross this investor off your list early in the process.

Do you have to pay them to present your pitch? In a survey conducted by the Angel Capital Association (ACA) in 2008, 62.2 percent of angle investors reported they do not charge fees to listen to presentations. Of the remaining 37.8 percent who do charge fees, the average amount was $580. For full details regarding presentation fees visit here.

 How involved do they wish to be in the business?  This runs the gamut from completely passive (“call me when you sell”) to active participation in day-to-day operations–complete with desk and phone—to everything in between.  There is no right or wrong answer here just ensure that you are comfortable with the level of involvement (or noninvolvement) the investor desires to have.

Will they fund additional rounds, if needed? Most angels are focused on the short-term and seek to exit within 5 years or less. As a result, they don’t anticipate funding beyond the first round. However, many times additional funding is needed down the line and, while you can apply for a credit card to obtain needed funding, it pays to also explore just how deep each investor’s pocket is.

What is their exit strategy? As noted, most angel investors seek to exit within 5, perhaps 6 years. There are also investors who subscribe to the “early exit” model and seek to be out of the business with two or three.. The other end of the range has investors staying in for at least 10 years (these are the investors who may be willing to fund additional rounds). Again, no right or wrong answers here but just make sure that you and your investor are in agreement regarding exit strategy.

Good luck!

Daniela Baker is a small business blogger at the credit card review website, CreditDonkey.com.  

photo via Wikipedia

Everyone knows that prioritizing is the key to efficient use of time. More often though, the instant gratification is miles away when leaving yet another message unanswered. But the truth remains, time is always the scarcest resource and time used on something is always out of something else. Choices can be painful however.

Three tips for more efficient time management

1) Be factual about the value of time used.

Doing the right things is a pickle of it’s own, but it’s not that hard to identify what are not the top priorities. Sometimes you get locked into a self guided mode of going through the motions, but focusing is avoiding the ‘business as usual’ switch. If you only take X amount of calls, e-mails and activities a day, you have to make sure which ones you take.

There are also various different activities that require different types of focus. Multitasking is the nature of any entrepreneur, but when you’re working on your product or on something more creative, you’ll have to lock the doors. Getting focused and uninterrupted time is impossible, unless you craft it yourself with a deadbolt.

2) Say no to things that aren’t a priority ‘right now’

I’ve just got yet another entrepreneurs message asking for pointers. And I want to answer him, actually I even start to type my answer to him, but somewhere down the line on the second paragraph I delete my entire e-mail and sigh. This isn’t what I’m supposed to be doing, regardless of how much I want to help. Helping this entrepreneur, isn’t helping THIS entrepreneur.

At the end of the day you have to be brutal about the time you have. You can choose to be polite to everyone and not do the things you want yourself, or you can prioritize and not insult yourself by not prioritizing your own endeavors over others. By getting to where you want to be, hopefully you’ll be able to help more people than by going the individual route. It’s all about choices. Choose to do the important things. The things you choose not to do, are not important enough by default.

3) Keep doors open, but don’t hold the door

Networking is an integral part of the networked society. This means you should connect with all those that you can share an interesting synergy with. Sure, you don’t know ahead of time so you’ll have to explore a variety of avenues and open a ton of doors. Good.

Now you’ve opened the door, don’t stay in the corridor waiting for someone to come say hi. Things move at different paces and different partners and people require different pushes. Again, think of what could generate the most valuable outcome in the short term and how realistic it would be to accomplish.

Some say you can’t manage time, would you agree? What efficient methods of time management do you have? Share those with the entrepreneurs out there that are watching their time slip through their hands.

Founded in February 2006, e27 is a media organization focused on the Asian technology startup industry. It is devoted towards Silicon Valley-style, community-driven advocacy of technology innovation in Asia. E27 combines its online media with offline events to influence, discover and evangelize upcoming technology innovations from the startup communities around Asia, and its website e27.sg is the trusted source of information on Asia’s growing startup ecosystem.

Listen to the podcast on the player below or here directly (save as for mp3):

• Mohan’s personal background and how he got involved in e27 (00:50)
• What does e27 cover – what is its focus? (02:15)
• Tell us about the upcoming Echelon events (03:25)
• What kind of people are you trying to attract to your events? (05:00)
• How would you assess the strength of the startup scene in Singapore and Asia more broadly? (07:50)
• What is the investment scene like in your area? What profile of investors are local startups able to attract? (10:40)
• What sort of trends are you seeing in successful startups getting funding in your area at the moment? (11:45)
• What attracted you to GrowVC and what are you hoping to get from our partnership? (15:00)
• How should people get in touch with you and how do they get involved in your events? (16:15)

E27 is a Network partner of GrowVC and you can join the Network and find out more about the Echelon events here. For more information about the Echelon events coming up across Asia please visit http://echelon.e27.sg/SG2012/index.php. You can also follow Mohan on Twitter @mohanbelani.

This can be applied to many industries, such is the recent case with Kodak. Similar to Xerox having created the original Windows, rather than transitioning to the new digital medium it created, the company remained set in its role as a leader in the film industry as opposed to being a leader in the photo industry as a whole. By limiting and labeling itself as a film company, Kodak did not address the challenges of becoming a leading camera company for both digital and film.

To hear more from Alan Moore and Peter Day, listen to the entire interview on BBC Global Business.

Established in 2006, My Destination is a start-up business that’s grown on a shoe string budget, out of the university dorms of two co-founders, James Street and Neil Waller, to a business that is now trusted by over ten million travellers a year. This rapid development and success has been based upon one simple business model- franchising. My Destination had franchised into six continents, over forty countries and one hundred and twenty different destinations and still expanding.  The company is based on destination specific travel sites which are run by a local franchisee, providing un-paralleled local information and deals on a real time basis. Here we explain how franchising has led to success of the business.

Most recently, the business was able to raise £1.5 million. This money was spent on recruiting new staff and opening new offices, which was vital in us expanding the business further in the uncertain economic times. This capital was raised purely through our franchise network; we did not need to attract outside investment or allow equity to be bought by outside parties. This means that all those who have invested in the business have its best interests at heart and are not looking for a quick profit, and that we can continue to develop our company and make continued improvements. This would not be possible without the finance raised through our franchise network.

Through the continued sale of franchisees, a constant source of revenue is generated. Great effort was put into our first two destination sites of Marbella and Algarve. The success of these sites and the profits they were making provides us with a point of reference when selling franchises in other destinations. Knowing that there is plenty of interest from potential franchisees for other destinations means that we can select the best person to a run a franchise site.

A franchise model has resulted in central offices in Marbella and London being established. Having a franchise network almost dictates the need for central staff and they play a vital role, as franchisees often require plenty of support. My Destination Algarve franchisee Fay Butler  states, “being an expert on your local destination would not serve for much if we didn’t have a global team of developers, designers and SEO people to keep our sites looking and performing beautifully.” The level of support from central staff has played a significant role in our development, without these franchise sites would not have achieved the heights of success that many have enjoyed.

Creating such a wide network of franchisees has allowed our business to profit from their differing experiences and skill sets. Through our forums and admin system, franchisees can communicate common issues and provide advice to one another. Jayne Symes from our Guernsey franchise explains, “My previous experience involved marketing and advertising in the travel industry so a client base was already established, so this seemed like the perfect opportunity to extend what I was doing and under my own stream.” Allowing everyone to benefit from her knowledge, Jayne regularly provides assistance and advice for other franchisees in marketing and advertising. These shared experiences and willingness to help all franchise destinations have been a key factor in our continued growth.

Franchising comes with an array of benefits and if your business suits it, then you can take advantage of these factors. However, it is important to make sure that your business fits well with franchising and that you have a detailed plan of how your business will grow from it. If carefully considered and implemented in the correct manor, franchising can have a dramatic effect on your business.

James Street and Neil Waller are the Co-Founders of My Destination.  A network of online travel guides providing unrivalled levels of local information.

GrowVC’s Networks program is a key part of our vision to create a global, virtual Silicon Valley, in which we democratize access to investment, expertise, and communities for startups globally. Our partners create Networks in order to manage their own community, under their own brand, within the global GrowVC community.

Listen to the podcast on the player below or here directly (save as for mp3)

Current partners include incubators, accelerator programs, Universities, student networks, associations, institutions, startup networks, bootcamps, startup events, local networks, and financial institutions. We are also starting to see other organisations that want to become active in the startup ecosystem join it through GrowVC.

Listen to the podcast below to hear Markus and Paul discussing:

• Paul’s background and experiences in the startup ecosystem (01:43)
• GrowVC’s global team (04:00)
• What the Networks program actually is (06:15)
• What we’ve learned about our Network partners since we launched the program in January 2012 (10:50)
• What sorts of partner have been the most receptive to our program so far (14:50)
• GrowVC’s short-term focus with the program at the moment (21:50)
• What Paul is looking forward to the most from the program (23:40)
• What organisations should do if they want to get involved (26:00)
• How you can use GrowVC to get yourself involved in the startup ecosystem (28:00)

To get started with your own Network you can reach out to Paul at paul@growvc.com or go straight to the sign-up page.

When asked to comment the Senate vote, we were quick to point out that it is a small, yet significant step in creating an efficient and transparent system for fueling innovation and allowing ordinary people to participate in the companies they believe in. It’s a small step, but in this development the small steps will make the development sustainable, as we develop the framework and safeguards around a new concept that has been bubbling up into the mainstream over the past few years.

Secure Framework for Crowdfunding

United States Senate Seal (Photo credit: DonkeyHotey)

The Grow VC Networks Program allows you to create your own crowdfunding community in a matter of minutes. These ‘networks’ run under your brand, they can be linked to your own front end, they have your own rules and preferences. Think of LinkedIn’s groups, with all the functionality needed to run a startup funding platform.

However, it’s not only about the match-making and front end. Grow VC provides the legal framework for providing crowdfunding to your audience, so you can focus on building your communty and managing that network. You can of course opt to take care of the framework yourself, but if you so choose, Grow VC will take care of the transactions, provide the investment vehicle as well as ensure the security of the process (including the legal due diligence).

Who Wants to Re-Invent the Wheel?

The Grow VC platform already consists of over 150 interconnected networks, where partners run their operations on top of the platform. Every day new partner networks are created. The comprehensive tools we have built can cater to various partners and activities, yet with the simple premise of not having to build it all from scratch.

The same applies to the community. There is strength in numbers and by leveraging the hundreds of networks already in operation, as well as the community of tens of thousands of entrepreneurs and investors, your efforts already start in second gear. Then you can focus on accelerating and flooring the gas.

Verified and Proven Success

The Grow VC platform has been built over the past few years in order to provide the robust and reliable framework to be able to provide the right environment for crowdfunding. This does not only include the actual funding or match-making, but also the ability to track and monitor activity, as well as document and verify activities. Surely this will be one area the SEC will be enforcing as the bills make it to law.

In the powerful message the Senate sent, the true strength is built in the interconnectedness of local ecosystems, that can support innovation from the grassroots. In order to scale this ecosystem in a sustainable manner, to engulf not only certain areas, but provide a sustainable approach to building our future jobs and successful companies, we will need to work together.

In order to realize the power of (your) networks, explore the networks program and sign up to the free Beta today.

Featuring the most promising startups in Asia. A 6 city hunt, and we are putting you in our sights.

Echelon 2012 is a conference organized by one of GrowVC’s Network partners, e27, based in Singapore. You can join their Network on GrowVC here: https://www.growvc.com/networks/e27

Satellites are the most important prelude in a promising startup’s journey to Echelon 2012, Asia’s longest running web tech conference.

Pitch at the Satellites, which will put you in the sights of the community, investors, local print & online media and bring out the awesomer in you.

Apply now! Choose to join us at one of the 6 Satellites:

• Jakarta, Indonesia (7 April)
• Manila, Philippines (12 April)
• Singapore, Singapore (14 April)
• Ho Chi Minh City, Vietnam (17 April)
• Taipei, Taiwan (24 April)
• Tokyo, Japan (26-27 April)

Application ends 31 March, 2012. More information here.

• eMobilis- involved in education, training, accreditation and certification
• World Wide Web Foundation -which handles the content of the curriculum, training and education.
• The University of Nairobi – a computer technology school for rigorous academic research.
• iHub -leveraging interaction within the community, the development arena, events and most importantly access to capital and markets

The m:lab facility was launched with the support of a seed fund through the World Bank in 2011. Providing high potential entrepreneurs with technical and business training, a world class mobile testing facility, capital access and mentoring, one of m:lab’s main objectives is to help scale up startups into sustainable businesses within their first 2 years of operation.

m:lab currently has 2 facilities in Africa, those being Pretoria and Kenya and they have recently opened 3 more in Armenia, Vietnam and Pakistan. The interconnected mobile app development labs with ties to Finland’s Nokia and World Bank’s InfoDev, provide a unique opportunity for startup entrepreneurs to grow. This is especially the case with Africa, where mobile penetration is at 100% yet developers are scarce and high priced. The strategically placed m:lab East Africa, will draw upon South Africa’s high bandwidth environment and incubate entrepreneurs while leveraging its connections throughout all of Africa.

The arrangement of a partnership with GrowVC is anticipated to benefit all recipients of m:lab East Africa’s mobile entrepreneurship development services, which include
• resident incubation clients
• app development trainees
• contestants in the Pivot East Competition
• and more

The partnership will also aim to address the issue of mismatched financing needs in East Africa. The GrowVC platform allows for funding in various stages and allows better startup valuations for entrepreneurs. The same models are also mutually beneficial to investors who can mitigate their risks by making investing a step by step process, rather than an all or nothing scenario. GrowVC is a nurturing ecosystem which openly and transparently connects startup entrepreneurs, experts and funders with one another in order to realize their passions. The platform allows startups to raise financing of up to 1M USD while exchanging shares of equity. The site also allows startups to seek out new team members using its work investment model. Now m:lab East Africa will be able to take advantage of these same tools, allowing m:lab to assist startups even more than ever before. The new affiliate network on the GrowVC platform is part of a larger initiative, developing affiliate networks all over the world with the ability to interconnect and network with the other networks. A concept which in essence is creating a new Global Silicon Valley. For participants in the Pivot East Competition, the affiliate network is now accessible here.

Image via Wikipedia

Given some updates in our Grow VC podcast, we wanted to offer a brief update on what’s going on behind the curtains.

First of all, a big thank you to all our listeners. The podcast has grown in popularity constantly and now reaches tens of thousands of listeners, from over 100 countries. This is what has driven us to develop the podcast and it’s content, as a process in itself.

What sparked the change process in our podcast, was actually a set of external events. Due to the interesting and peculiar situation with Mevio (see it on TechCrunch) we had no choice but to re-visit our arrangements and setup, which caused us also to have to change our channel on iTunes. Please change your RSS settings to follow the updated channel.

Therefore the correct channel on iTunes is here: Everyone Funding Startups

Creating truly scalable processes also require time and more often than not, these bumps in the road (however unffortunate) are opportunities to create a sustainable process. It is our intention to make sure to devote the right focus to our podcast, so that it can adequately cater to its global audience and create a unique avenue for an entrepreneurial discussion.

As always, if you have thoughts on the podcast, please do reach out to us at podcast@growvc.com and let us know your thoughts. We’re always open to suggestions and ideas, regarding content or guests.

For more information on the podcast itself find it here. If you want to join our Everyone Funding Startups and be part of the amazing journey, talking to top leaders from all over the world, then apply here.

Crowdfunding is not only one investment instrument; it is fundamentally linked to changes in the work environment, business models and the economy. All people are becoming entrepreneurs in some way. They can work in several roles for several companies. All of society and business life will consist of networks in some shape or form. GrowVC’s Networks Program has been developing affiliate networks all over the world with the ability to interconnect with the other networks.  Using the new GrowVC investment model, ‘Go With The Crowd’, anyone can invest in startups using our managed investment program which essentially tops off the remaining 30% of funding being sought by startups who have already raised the first 70%. One individual can have many roles: be an investor, be an entrepreneur or work on their own time. Innovation is the driver for employment, growth and better life globally.

Some are concerned with the challenges facing crowdfunding, such as the average person’s capability to evaluate investment opportunities or the possibility of falling prey to fraud. These are relevant concerns and all crowdfunding services work in order to develop tools and models to minimize the risks for all participants involved in crowdfunding opportunities. At the same time it is important to understand the significant cultural shift, how people native to the Internet learn to act in communities. Online services consist of many components, platforms and services are only a part of them. They are ecosystems that require several actors and also trust in the services, companies and people which is built based on several factors. People are also losing their trust in traditional institutions and want to take responsibility to their own hands.

Crowdfunding and new finance models are coming. Some parties might want to delay them, but they cannot stop them. Now it is more important than ever to find new models for the future of work, business and the economy than try to resist the change. The only way is always to be innovating and developing new solutions for a new era.

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The other day I overheard two people talking about their youth. As they sat and talked, they kept on referring to a time in their lives when everything seemed possible, a time when they thought they would conquer the world. This conversation got me thinking about how the youth see the world, especially the youth of today, and to how this outlook greatly resembles that of entrepreneurs. Like entrepreneurs, the youth have eyes that see a world populated with opportunities and both believe that the possible benefits outweigh the potential risks.

The majority of young people entering college or their first jobs have not been hit with the many “No’s” that life throws your way as you get older. They have not had their idea for a company shot down; they have not been laid off; or have not faced many of the other “No’s” that come with the years as we grow old.  The youth bring an unconventional wisdom in their outlook on life. Their outlook is fresh and accompanied by energy and optimism. To be a successful entrepreneur, you have to face the world with this same passion and belief that you will achieve your goals. There is no committing only half way or having a backup plan in place in case things do not work out. After all, If you don’t have confidence in yourself, who will? You will encounter many who don’t understand your vision or how you intend to shift into this new reality which you speak so highly of. The outside eyes peering in on what is only a glimpse of the entire picture. Its essential for you to thread past all of that doubt and to market your vision of the future to eventually find others and increase your support network.

Besides the passing years, it used to be that young people would only realize their limits based on their geographical limitations. Many articles still speak of the importance of large metropolitan cities and entrepreneurial hubs, but the youth of today along with all entrepreneurs do not have to face this geographical challenge. Technology and social networks now provide bridges between distinct locations. Information and ideas area exchanged like never before. There are many new services to aid in long-distance collaboration between team members. Many people are changing from hard copy portfolios to pdf files, easy to use web pages and cloud networks. Many of which have templates and tools to creatively build professional forms and documents. We have millions of people who are, in essence, content creators that utilize technology to present who they are and their ideas to the world. And in a world where technology constantly advances forward while becoming simpler to use, there is even more reason to believe in the possibilities.

Global communities that bring people from all over the world today are making conversations like the one that I overheard almost obsolete. Age is neither an excuse nor a limiting factor.  Technology connects individuals with tools and the ability to network with like minds. Whether you are part of the youth of today or a seasoned entrepreneur, the world is out there for you to conquer and technology is at the forefront paving the way. Everything is still possible.

Austin Texas Lake Front (Photo credit: StuSeeger)

On Friday 9th GrowVC will be in Austin with several partner events, for example the Social Radius Party, hanging out with the TechStars crew or with the Startup Weekend family. Of course we will also make sure to spend quality time with our partners at Startup America.

Saturday 10th & Sunday 11th are reserved mainly for meetings with some of our partners, but we still have available time to meet others that have an active interest in crowdfunding and startup funding.

by Monday 12th, GrowVC will be in Dallas for the day meeting with some brilliant partners.

.. then it’s wheels off to Los Angeles, for the Crowdfunding and Capital Creation conference on March 13 and 14. Make sure you join us with the discount code “TheSohoLoftGrowVC” at the event.

If you’re around and see a good fit for collaboration, please get in touch. The sooner the better. There’s many of us at each location, so we’ll surely be able to figure something out.

Looking forward to meeting you along the way!

Many times in the business world a campaign, service, or product that begins in a supporting role grows and takes on such a life of its own, that it moves from a supporting role to being its own feature. An industry where we see this often is in entertainment. There are numerous successful television shows and movies that originated as spinoffs of previous initiatives. Some examples include the show Frasier which is based on one of the characters from the long running show Cheers. The movie Wolverine, which has now had two successful installments, came after the launch of the multi-movie X-Men franchise.

We at Grow VC now find ourselves in a similar position with our Bus Tour that was launched to support our initiatives at the upcoming SXSW festival and the TSL Capital Creation and Crowdfunding Conference in LA event on March 13 & 14 where our Chairman, Jouko Ahvenainen will be speaking at. We received so much support and many requests from groups who wanted to partake in the tour to support startups with us. As a result, we have made the decision to give the Grow VC Bus Tour its own feature. Our Bus Tour will be pushed back several months and will now be a cross country tour with more information to be announced in the coming weeks.

As far as SXSW goes, we will still be present and very much involved in our previously mentioned events – TechStars invades SXSW, Tech Cocktail’s SXSW Startup Celebration and The Hilton’s kickoff event – on the 9th. Also, we will have our own booth at the Social Radius Startup Debut event on Saturday, March 10, from 5:30 – 9:30 pm at the Flemings Prime Steakhouse and Wine Bar. Fleming’s is located across the street from the convention center at 320 East Second Street.

For those of you from the west coast who will not be in Austin, make sure to stop by and say hello on the 13th and 14th in Los Angeles. You can get all of the details for the event as well as the 10% discount with the Grow C promotional code at Los Angeles Capital Creation and Crowdfunding Conference. We look forward to seeing the rest of you during the upcoming national Grow VC Bus Tour.

Today we had the opportunity to speak with Matia Mandela. Matia is based out of East Africa and has a large experience in partnership building with a focus on emergent technologies and innovation for the growth of entrepreneurship in Africa. Matia spoke about some of the recent developments with partnerships between the m:lab East Africa division of the World Bank and Grow VC International to promote the efforts of East Africa’s mobile entrepreneurship development services as well as the creation of the Pivot East Network which directly supports the Pivot East Competition. The Pivot East competion to bring together entrepreneurs and investors interested in the current opportunities in Africa.

Matia can be contacted directly through Twitter at @matiamandela and via LinkedIn at http://www.linkedin.com/in/mmandela

The link for the Pivot East Network is https://www.growvc.com/networks/pivot-east and the blog can be found at http://pivoteast.com/blog/

You can listen to the podcast by clicking the “play” button below or through this direct link (right click to save).

TSL’s Capital Creation and Crowdfunding Conference provides attendees with key insight into the direction of the U.S. capital markets during this period of regulatory transformation and the rapid progression of the developing ecosystem. Attendees will get a fresh look at how capital formation is changing as well as learn where new growth opportunities exist, how social media is transforming Wall Street and most importantly, how to capitalize in this changing paradigm.

Grow VC participates in the event panel, and Grow VC’s Co-founder Jouko Ahvenainen speaks in the event. His presentation “Models and approach to building the new sustainable finance sector” illustrates new models to develop finance and funding market, and make it more effective, transparent and democratic.

You can get 10% discount with Grow VC’s promotional code “TheSohoLoftGrowVC” in the registration web site.

Welcome to another episode of the Grow Venture Community podcast. Today we have Helen Keegan, a specialist in mobile marketing, advertising and media back on our podcast to discuss events at the upcoming annual Mobile World Congress in Barcelona, the world’s leading global mobile event.

Helen is the head ot Technokitten (@technokitten
blog: http://www.technokitten.com). She is also spearheading a large event during the Mobile World Congress called Heroes of the Mobile Fringe Festival.

You can click play below to listen to the podcast or go to the Grow VC Everyone Funding Startsups podcast on iTunes:
Listen to the episode.

You can follow the links below to register and to learn more about these upcoming events.
http://mobileheroes.net
@mwcfringe
http://facebook.com/MWCFringeFest

On the 9th – 11th, the Grow VC Tour Bus will tour Austin & SXSW during the weekend, doing interviews, handing out promotional items and on the 9th we will have it parked outside the events of – TechStars invades SXSW, Tech Cocktail’s SXSW Startup Celebration and The Hilton’s kickoff event – on the 9th & the Social Radius Dinner on the 10th and more stops will be posted as the tour develops…

Image via Wikipedia

Here’s the bus and there will be a tour themed design wrap around the bus along with partner, sponsor and other supporter details. The bus will leave Austin on the 11th, on the 12th we go to Dallas for media day. The bus arrives in LA on the 13th, everyone rests and gets ready for TSL Capital Creation and Crowdfunding Conference in LA on 13th. As we are still planning the remaining details, some changes may occur.

There will be film crew documenting the entire journey and the material will be distributed by various channels, during and after the tour.

We have a set target for a minimum of 500,000 people that will see our bus and learn about crowd funding startups and about the global venture community. Starting from an event we are doing at University of Texas all the way to the end of the route.

If you are interested in getting involved and partnering with us on the journey, now is the time to act. There are still some limited opportunities to get involved. For all partnership suggestions for the journey, please contact andres@growvc.com.

Soon we will open a special page for the tour itself with more details about our great partners & sponsors along with updates of the tours development, which will evolve later on to updates from the tour itself.

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Times are tough. While the economy seems to be turning around in some places, there are other regions where things continue to decline. Getting your business through a rough year is one thing; getting your business through four or five rough years is something else. Tough economic times come and go. So do most businesses. Businesses that weather the storm know what needs to be done. While there’s no way to guarantee that your business can get through, there are some things you can do that will increase your chances of coming out intact:

1.  Start by identifying your challenges. If you’re going to beat back the tide of tough economic times, you need to know exactly how it’s going to impact your business. Identify what’s likely to happen to your customers or clients. If your clients are in industries that do well during a recession, for example, your business may actually increase. For most of us, though, it means taking a good hard look at our products and services. If they’re considered luxuries or optional expenditures, we’re in for a tough fight.

photo Ed Yourdon

2.  Adjust your business’ goals in light of the current economic realities.Being able to scale back your sales goals, your planned investments in R&D, or specific growth metrics is all part of dealing with changing economic realities. The wave of success you experienced previously may have had you shooting for the moon, but things are different now; your goal may be to simply maintain the ship and keep everything in working order, so that when the time comes you can get back on that moon-ward trajectory.

3.  Create a battle plan. Tough economic times mean that it’s time to hunker down. Carefully look at the economic realities, and decide how you can respond on several fronts. That means cutting back on expenditures when possible, finding alternate revenue streams, increasing productivity and efficiency, and more. Attack the tough economic time from all of these angles and you’re more likely to come out ahead.

4.  Carefully measure and track your business’ health. The last thing you want to do is discover, at the end of March, that you’ve been losing money since the start of the year. You need to do more than a quarterly review of your profits and losses. Monthly is good, but in some businesses even weekly reports can help you identify a coming plunge – and try to minimize its impact. When it’s necessary, go back to #2 above and readjust your business’ goals.

5.  Watch out for cash flow issues. Chances are pretty good that during tough economic times you’re going to run closer to the edge than what you’d prefer. In many cases, this is going to wind up being something of a battle between Accounts Payable and Accounts Receivable. Find ways to incentivize clients to pay invoices faster, and ask vendors for longer terms. Realize, of course, that they may be facing the same kinds of cash crunch problems you’re facing, and may not be especially warm to the idea.

6.  Be agile. Because you know what’s going on in your business’ health, you can be ready to respond. In some cases, that means pouring greater resources into a product that’s in development in order to get it to market. In other cases, it means rethinking a marketing strategy. Be ready to adjust your business’ practices and priorities in respond to the changing economic realities around you.

7.  Stay positive. Now, positive thinking has never been proven to get a business through tough economic times. In fact, some business owners have been a little too positive that they were going to succeed – right up until the end, when the bank was emptying out their storefront or foreclosing on their home. That said, staying motivated and optimistic will help your business. It will help you and your people be more productive, and in some cases that positivity will rub off on your clients, too.

Tough economic times don’t last forever. Yes, they can wreak havoc on a business, and the business that comes through may be forever changed by those times. If you have a quality product or service, are smart about how you conduct your business, and have at least a little bit of good fortune, chances are you can get through to the other side. Perseverance and planning don’t guarantee your success, but you’re almost certainly doomed to failure if you don’t have those qualities.

Dominique Molina is President of the American Institute of Certified Tax Coaches, an organization of tax professionals who are trained to help their clients rescue thousands of dollars in wasted tax. In addition to her blogging and speaking engagements, Dominique provides tax training and accounting marketing as a registered educator with the National Association of State Boards of Accountancy (NASBA).

Startup Life is almost like beginning a new life while continuing to live the original one. Life has all kinds of twists and turns, ups and downs as well as plenty of confusion. A startup is not much different. It’s even similar to many of the chapters which have taken place in your story. You’ll create a sort of extended family with team members and people you do business with. It may take years to gain familiarity, trust, establish yourself as dependable or as a self-sustaining entity. As one person worded it, “There’s No balance! It is like a baby. Has needs.. you have to pay attention. Has priority. The thing here is priority management. So the formula is: if there is a crisis elsewhere, then pay attention to it. Else, pay attention to your startup.” -Hakan Totkanli[management consultant]

Schedule Outlining

A lot of people tend to use scheduling as an exact science and in doing so, they run into never-ending conflicts and never quite seem to find the time to get everything finished. It is best to think of the idea as only a guideline and to allow for time between each thing that needs to be done. Don’t just fill up your schedule book! When i refer to scheduling, it’s more of a general term which equates more with outlining your priorities and setting aside time for specific duties. An example of this would be using the time before sunrise to take car of email correspondences, while the night could be for handling paperwork. For some, these times are the most peaceful and have minimal interruptions. Individuals with children could also can see the benefits of such, being that the timing allows you to get kids ready, work during school hours, attend to family obligations in the afternoon, then return to paperwork while the family winds down for the night.

The basis of outlining priorities and tasks is separation. We separate the day into various segments in order to have time for both work and family. Here is a breakdown of a few tasks that both business and personal lives share:

• Records & Bookkeeping/Homework & Budget
• Team Correspondence/Family Time
• Phone Calls
• Bill Payments
• Errands
• Obligations
• Friends

As you can see from the examples, a family could be similar to orchestrating a startup. One very important task is to separate finances. Business and Private bank accounts should be separate. Your business account be on its own, but it should not overly finance your personal life and vise versa. Not only will this help you during tax time, but it will also help keep your credit lines apart while you build business credit.

Mentality

When it all comes down to it, every suggestion, article or even a life coach can only be put to good use with the right mentality. As humans, we become tired, angry, distracted, forgetful and many other states of mind or being. A sign a true entrepreneur is what their next move will be. There is the drive to succeed despite all odds and doubts of others and you must re-find your focus and begin to push forwards once again. The mental is what ties it all together, and a strong one is definitely needed. “The body needs a mix of lean meat and vegetables. The artificial junk clogs us up and wears us down. Realign a long walk with problem solving and family time to have a clear horizon and put the mind and body in synchrony.” -Kenneth Larson

Friends & Family

Running a business of your own, you’ll soon realize that your daily activities seem to take on a life of their own which excludes many people. It’s as if this new life can go off on a journey of going new places, making new friends and having a completely different set of experiences than your other life and the people may not share. It can be isolating and alienating. The ones that are close to you may not know or understand what it is you are involved in, but they still would like to know bits of it and about your day. You may find that you don’t have nearly as much time and even your friends are saying they haven’t seen you in days, weeks, months, etc. It’s probably just as important to keep up with friends and family as it is to actually run your company as Dave Maskin told me, “By being my own boss, I set my own work hours and make sure to make as much time for my family and friends as i do within my business pursuits.” Out each week, I personally feel the importance of setting aside a 2-3 hours a few days a week and whole day if possible. The few hours during the day where I can watch tv, go to the store or even a nice talk on the phone can make a world of a difference.

Each startup company will be a bit different in regards to what times are available to work, relax or spend time with family. Things could change by the hour depending on your industry and there will never be a perfect balance to it all. That is why i refer to it as a balancing act, because it requires some flexibility and push and pull in order to keep momentum. Just be sure to remember that even a professional juggler has to put the rings down sometime and take a break from work.

The New York Stock Exchange started 1792, when brokers needed a common market place to trade securities and get a better funding market.  A lot of finance regulation is from the 1920′s and 30′s. As Congressman Patrick McHenry, the father of the crowdfunding bill, commented in our podcast, “the regulation is from a time when the telephone was the latest innovation”. The Internet has mainly brought only a new distribution channel for the finance sector; for example, offering Internet banking and access to stock market brokers. But I believe soon we will start to see that the Internet can really change the business models, bypass useless middle-men and make the finance market more open and effective.

Why this kind of historical review and comments for the Grow VC 2-year blog post? I think it tells something about inertia in the finance sector. It tells a story about regulation and the power of money. We have seen a lot of regulatory discussions, claims why new models cannot work, but also big positive changes in the climate. Crowdfunding was a totally new and unknown area when we started to plan and build the service.

It is still a very ambiguous market, with many different models all the way from donations to real investments in different asset classes. In our past two years, we have achieved a lot of success, thousands of companies and investors, success stories, over 100 funding networks in our platform, even the first exits. However, this is still very early days in the market and in the change of the financial sector.

The same short and long term thinking is also relevant for startups. I sometimes simplify and divide startups into two categories: 1) short-term hit-and-exit startups, and 2) long-term companies to have sustainable business or change the world. The first category gets a lot of publicity nowadays, they make a lot of noise, raise large VC rounds, and quickly exit or fail. And it is totally fine, they can create a good new technology or business model. But we must not think that they alone represent the big picture of entrepreneurship and business, and we cannot think of entrepreneurship only through a kind of celebrity culture view of a few serial-entrepreneurs and business angels. We need the funding market and financing for all kinds of companies. The well working funding market is much more than some VC’s or business angels. Our 5-point list for the funding market is the following:

1. Market place and crowdfunding for early phase funding. Many companies can start with small money, but when a bank loan or credit card is no longer a feasible option for many startups, these new models help to start. They also enable small steps in the funding that makes sense both for entrepreneurs to get better valuations and investors to optimize the risk.
2. Liquid market for different phases of the company. Liquidity means the possibility to get reach more investors to invest in early phase companies, if the market has enough supply and demand to also sell assets in different phases.
3. Models for different kind of investors to cooperate equally. The market cannot work properly, if friends and family, business angel and VCs cannot work together properly and trust to one another. In the ideal marketplace, all these parties work and invest together like different investors can invest in the stock market. It also means ordinary people can invest in startups, diversify their risk to several companies and participate in success stories.
4. Full ecosystem. The stock market has many actors like companies, investors, brokers, analysts and funds. The same is needed in the longer time span for startups and the smaller company funding market.
5. Better IPO Market. The IPO market doesn’t work properly anywhere, not even in the US at the moment, and it’s not very attractive for companies to go public. There are several proposals to get the stock markets to work better, for example to cut costs, promote longer-term investments and not only high frequency trading and simplify regulation.

As a whole I would summarize, that we need an effective market and marketplace ecosystem from the very early phase startups to the big corporations. The technology and tools have developed from the early days of Goldman Sachs and stock exchanges. People demand change, they want to see a more democratic finance world. These are all big movements and they don’t happen over night. But like any big movement, they are unstoppable. We at Grow VC, share this vision for the future and our mission is to build a part of this, the marketplace. It takes a lot of work and it only happens through small steps and small wins, even setbacks at times.

The next steps in this vision are, 1) multiple language versions, 2) follow the crowd investment model and 3) many tools for the investment process itself. We have seen a great two years, many wins and many challenges. We are dedicated to realizing our vision and will spend as many years as needed to make the market work properly. Everyone can participate in this journey by signing up to  our service, helping us build it, starting your own funding service and building other parts of the ecosystem.

Stealing few lines from an old good post on Singapore by Jouko, our co-founder, this is a focus location for Grow VC. “The reason is that Singapore is an important hub in South East Asia, its government is very pro-business, it is one of the leading finance centers in the world, and it has also a lot of great young entrepreneurs”.

The government’s efforts in attracting quality startups and entrepreneurs from different parts of the world has been actively demonstrated by Infocomm Investments, a venture capital arm of the IT authorities of Singapore that advises and helps technology startups on the opportunities in Asia. They also assist the startups with access to engineering talents, markets and government grants to support their product development operations in Singapore.

If you are interested to learn more about this opportunity, we would be glad to share more with you. Get in touch and apply for more information here.

The Congressman discusses recent opposition to his proposal and why he believes the Senate alternatives fall short of creating effective and efficient crowdfunding markets. But most importantly, Representative McHenry urges listeners to advance the debate and demonstrate the power of crowdfunding by leveraging that power within the legislative process.

You can listen to the podcast by clicking the “play” button below or through this direct link (right click to save).

Thanks for tuning in to this week’s episode of Everyone Funding Startups. Please reach out to me with any questions or comments about the show. You can email me at ryan@growvc.com or connect on twitter with the hashtag #GrowVC.

Working in a start up is one of the most exciting things in the business world today; it is also one of the most challenging.
Whereas keeping morale high in any business is important, in startups, it is do or die. There are two steps to creating and maintaining high morale, which I refer to as ‘defining’ and ‘encouraging.’ Defining means establishing clear goals for the company and the individual in order to focus every individual productively. Once goals are clearly defined and each individual understands their role in accomplishing those goals, the next step is to fan the flame which I refer to as ‘encouraging.’ These two aspects of defining and encouraging are broken down into 6 key ingredients of  creating and maintaining morale.

Aspects of ‘Defining’

1) Have a Mission that Inspires
An office with a mission is a much different environment than an office without a mission. Make sure that everyone knows, understands and ascribes to the mission that your business has set out to accomplish. Working together towards a higher purpose is much more gratifying than working just to make money. It’s also a crucial ingredient to being profitable.

2) Define Individual Expectations
When people don’t know what performance is expected of them they are not able to gauge their level of success. Defining expectations means creating the opportunity to succeed and feelings of success breed morale.

Aspects of ‘Encouraging’

3) Make Business a Pleasure
What does a normal workweek in your startup consist of? I would say that it’s rare for anyone in a startup to put in less than 60 hours a week. With such demanding work weeks, precious little time is left available for being social. Therefore, it’s extra important to include an element of fun in the office by making sure to take time to celebrate together. Here are some reasons to have a short office party…

• Birthdays
• Any business success
• Hiring a new worker
• Just as a pleasant surprise

4) Have a Collective Company Brain

Everyone in the startup should have an idea of how the entire operation is being run, and they should all be encouraged to give feedback. Keep lines of communication open between all facets of the company in order to encourage growing as one successful and healthy organism.

5) Hire Powerhouse Employees

Did you ever notice that some people have a personality that engages and inspires everyone else around them? Every great company has a few of them, make sure that you do too.

6) Get Personal

Take an interest in your employees and coworkers personal lives. By being there for them through the difficult times and celebrating with them during the good times, the workplace will develop into an extended family unit, which is great for loyalty.

This advice in this article is not just for upper-echelon individuals in the start up, it’s for everybody. The most successful businesses are ones where everyone collectively adopts a leadership mindset and feels personally responsible for the welfare of the business as a whole, and the individuals that they work
with.

Image by Adam Crowe via Flickr

There are many arguments that branding isn’t necessary, that having a logo or that having a professional image to represent them is not important. I’ve been presented with such statements as, “we have xx amount or viewers/customers already, we don’t need one”. I’ve also seen many small firms as well who only have a simple letterhead and business card. They seem to be fairly successful but I, like many others feel that a branding strategy can help make a much larger impact on an audience. Part of the purpose, whether it is a clever design of the company name or an actual logo, is to have a long lasting imprint in the minds of people.  Another aspect to this, is upon leaving your location of business, you are bound to find other companies with the same name. Sometimes you’ll find that the company is even using a very similar font.

4 Simple steps to standout among the clones and the masses are:

• Color schemes- the simplest of these and probably the most noticeable. Color schemes are the basis of making anything stand out. Think of McDonalds or Walmart. Instantly at least 2 colors will come to mind.
• Font choice- This varies from the simple to more complex and creative types. A font choice can help project the atmosphere of the company. For instance, a company oriented around children will often use bubble letters with bright colors.
• Tag lines & Mantras- both tag lines and mantras are similar in respect to being a short set of words to voice the company’s mission or vision. A tagline is a way of selling yourself as a brand, while a mantra captures the essence of the company in 3-4 words.
• Logos- can refer to several things such as a simplified font choice which uses only one letter or can be a symbol related to the company vision. Such is the case with Louis Voitton and Maserati. LV is the simplified company name, while the logo of Maserati which also appears to be the letter M, is a very powerful symbol striving for grandeur.

More seasoned marketing professionals know the importance of branding and stated they felt branding should be done as soon as possible. I had a discussion with a few people to find out when, why and how others view the topic of branding. Ideally, the decisions should be made before the launch of your company for a couple reasons.

• Identity- it gives you an identity for letterheads, business cards and especially a website and the color schemes can become the starting point for all of these. Having an identifiable image allows a company to have a more well defined voice.
• Traction- Having an identity also helps to build traction. You now have something which will stick in the minds of those who see it. As your company grows, there needs to be a way for more people to remember it and associate your products or services with it. This also becomes a way for customer referrals especially in today’s digital marketing age.

Here are a few quotes from the responses I received:

• “Branding is occurring regularly, whether or not we are aware of it. From integrated website(s) presence to our networking and our credit ratings, cell phone records and application navigation, we are tracking and being tracked. So it is really a matter of whether we wish to manage our professional image or have that image manage us” -Kenneth Larson [retired Aerospace Contracts Manager]
• “You should begin working on your branding -or- professional image – before you even launch your company. Branding tools such as your website,logo, color scheme, slogan/tagline, mission statement, business cards, email signature and  all of your social networks should all be consistent and convey the message you want to deliver” -Elizabeth Wagoner [Cloudberry Social Media]
• “A logo/wordmark is just one small piece of defining a startup’s brand and voice. This is an important part of launching a successful startup and not something that should be relegated to the intern in the corner” -Robert Lendval [6s Marketing]

In summation, as a company you should put a good deal of thought into how you want to define yourself and your vision. Part of leaving a mark on the world involves how you choose to brand yourself, meaning what impression you send to people and how you’d like to relate that to a visible image. Once the visible image is in their minds, it will help them to associate your vision and company values to that visible image. The point of all this, To Stand out in a Crowd and leave a lasting impression on your audience for a long time to come.

David suggests several tools available to entrepreneurs and investors and offers insights on how best to utilize them. He also explains what equity-based crowdfunding can learn from its more mature crowdsourcing relatives and why traditional investors will benefit from the development of a robust equity-based crowdfunding market.

Guest post by Sarah Ollington & Claire Broadley of Wish.co.uk

With cloud computing comes convenience and choice. No longer are small business owners tied to their desks or forced to work sequentially on large projects. Cloud apps can boost productivity by giving you the power of real-time collaborative working, increased efficiency and a more sensible way to manage your workflow. The modern entrepreneur can also benefit from collaboration over long distances, opening up the possibility of hiring staff on a freelance basis when they’re needed. Cloud services can also be scaled up and down very quickly, making them ideal for a fast-growing company.

Here are five cloud apps every entrepreneur should consider for increased productivity and significant cost savings:

1. Google Docs

Google Docs was the first true cloud suite. Widely used and well-established, Google Docs Suite should never be underestimated. It can be used with a Gmail account or run as part of a Google Apps domain, handling email as well as the Docs suite itself. It is essential for documentation, spreadsheets, forms and more. With the calendar, simply set up your tasks and have alerts and reminders sent directly to your email account or the screen of your mobile device. Best of all, the basic version of Google Docs is free to use, making it ideal for the entrepreneur who’s just getting started. It can also be expanded later as the company grows.

2. FreeAgent

Accounting is an area well-suited to cloud computing and there are a number of accountancy packages to choose from. FreeAgent is a complete management system for paying and getting paid from time sheets, expenses, to financial management, all of which are available on a per-client or per-project basis. The entire suite is topped off with an at-a-glance dashboard which gives an instant snapshot of the financial state of the enterprise. With FreeAgent, many of the aspects associated with recording tasks, finances and expenses are taken care of with very minimal effort. FreeAgent costs just $20 per month and it pays for itself simply due to the fact that your accountancy and book-keeping bills will be vastly reduced.

3. Dropbox

As entrepreneurs become more likely to work on mobile devices, file compatibility and storage space also comes into play. Dropbox is a simple, elegant solution for file syncing and sharing. Dropbox works like a USB memory stick in the cloud. Syncing between desktops is silent and mobile devices only download on demand. It is fast becoming a standard, so many of your colleagues and clients are likely to already have an account. Yet it is expensive. Compare the pricing: 100GB of storage in Dropbox costs almost $240/yr, yet 200GB of storage on Google Apps costs just $50/yr.

4. Basecamp

Most entrepreneurs will begin their business with a simple spreadsheet or task list, but over time you’re going to need something more powerful to organize your projects, freelancers, finances and staff. Basecamp allows you to take your project planning out of the stuffy confines of Gantt charts and place it in a more accessible and useful location. Entrepreneurs will appreciate the interface and customizable access levels. Every employee, member of staff or client can be given a different level of access to a project plan. A wide array of mobile apps also make it handy to track project status and log completion when away from your desk. Its simplicity and cross-platform compatibility means you won’t be concerned about file formats. Pricing starts at $24 a month, with the more practical 35-project plan coming in at a weighty $49/month. The user interface lacks the flair of cloud apps like FreeAgent, but the ability to collaborate with very little training is a bonus and that’s achieved through the simple layout approach.

5. Assistly

Assistly is designed to help businesses who deal with large amounts of customer feedback, support and social media communication.It connects the dots easily between email accounts, social media accounts and telephone call logging are all combined to provide a complete and efficient dashboard. Assistly is a great way to handle the demand for support calls over social media websites such as Facebook – a task which can be very time consuming, not to mention distracting, for your staff. Pulling all of this communication into one place helps you to better serve your clients at minimal cost. Assistly is free for one customer service agent. Additional agents cost $49 per person per month, putting Assistly in the same pricing band as professional service desk applications. If you run extra Twitter accounts, you’ll have to pay another $29 per account per month. Phone support costs a huge $299 per month. But depending on the size of your organization and the time you lose to social networking, this might be a price worth paying to maintain productivity in your business.

Image via Wikipedia

 1) “Once things settle down”

I’m allergic to the phrase ‘once things settle down’. This comes from my own personal learning, that things never settle down. And if they do, then you’re not going down the ‘right path’. You may think that when you get more revenue or get past your Series B, it will get easier. And that’s just not true, it will only get tougher, more demanding and more complex.

If you have made the leap from a ‘job’ to this entrepreneurial career, I would encourage you to stop thinking of it as a ‘job’. That will ultimately only get in the way of grasping the true nature and being able to grapple it properly. Labels may get in the way all together, so why not just forget labels and look at your life as a whole. This includes all the priorities you have in all different categories including like different parts of work, family and other stuff that means something to you. Priorities change, but if it’s not at the top of your priority list then it doesn’t deserve your full attention.

The variable that does change however, is how you are able to handle the environment, uncertainty and risk and so on. All the things that go into a high paced entrepreneurial life. And you will get better, or you will get out.

2) “I’m my own boss”

3) ‘From 8 AM to Exit”

The exit is a highly discussed topic, but it should never be the underpinning of starting a new company. Being in it for the money, will only lead to a perverse company that will crumble like a house of cards. When you face the first bumps in the road (and you will) and lack the commitment, how are you going to motivate and drag your startup through the mud?

Further, companies are not sold, they are bought. When you’re making great progress and have your share of successes is when you also catch the eye of those that might be interested in pursuing an acquisition. If you’re auctioning off your company at any given chance, you’ll repel any interest and watch discussions go up in smoke. If you’re so desperately trying to sell your company, why did you start it in the first place?

Don’t get caught in these and countless other delusions that entrepreneurs face. They will ultimately only hold you back. Having an open mind and seeing the world for what it really is, can be a great source of power.

Image via Wikipedia

The year of the Rabbit you could catch your breath and calm your nerves.  It’s a time for negotiation, not to try and force changes. It has been exactly that for Grow VC too. We have now prepared new things and we have talked with many people around the world. But we have also realized, it is still the early days of crowdfunding and new marketplaces for startup funding. It has also been an important year to see and progress new crowdfunding regulation proposals.

Now we enter The Year of the Dragon. The Year of the Dragon is for “doers” – to take action and achieve power by getting things done. It’s also Grow VC’s theme for this year. We want to accomplish many new things, but really to translate crowdfunding and our open global marketplace to all people around the world so they can learn about these new models, participate in and support startups. We are also developing our own communication to reach a much broader audience to learn about new opportunities.

People who are born in The Year of Dragon have natural talent and abilities that should stand out with great results. We believe the same also matters for startups that are born in The Year of Dragon. Therefore, it will be a great time to start a company or start investing in startups. We at Grow VC want to help you to do this and we want to make it global. You don’t have to come from Silicon Valley or London, you can do it in Vietnam, China, Singapore or wherever you are. There are great entrepreneurs and investors all around the world. The Year of the Dragon is a great time to breathe fire and start to build something big.

It’s the time of the year to spend time with the family and prepare to face new challenges of the next year.

一本萬利 in the Year of the Dragon.

You can listen to the podcast by clicking the “play” button below or through this direct link (right click to save MP3).

Thanks for tuning in to the Grow VC Everyone Funding Startups Podcast! Make sure to get in touch with me (ryan@growvc.com) if you have any comments about the show or would like to participate in any way.

I believe that both business owners and entrepreneurs alike will ask the question, “how can I tap into market-A?” while the entrepreneur continues to ask the question for market B and sometimes to C,D & E or beyond depending on their ambition. It’s a matter of seeing the possibilities or rather accepting that something, that others view as difficult or impossible, actually may be achievable. I’ve found that many people outsource the work by paying consultants and legal fees for things they could have done themselves. When I’ve advised them to do so the typical response has been, “Well, I don’t know how” or even worse “That will take too long”. In this day and age, not having information or knowing where to find it is no excuse. There’s honestly a wealth of information at our fingertips. Understandably there will be time involved, but  if you pass the work onto someone else then you will always have to. You’ll always have extra expenses, but what’s worse is that you won’t learn about these processes. There should be a drive for trying. I like to think that the more informed you are, the more you can understand how to attempt the next moves to make. For instance:

• If you don’t know about taxes, you can learn from IRS.gov

• If there are terms you’re unclear about, you can check Wikipedia or even YouTube. Some find visual explanations are better understood than simply reading.

In general, this can apply to just about any topic. These days, former library searches are replaced with a flow from

Google—> Relevant site —-> Wikipedia for terms—>Youtube for audio-visual examples

This increases your knowledge base in order to help you to better understand how you can expand your business scope itself. There have been times when people have told me Wikipedia is not a credible source and that anyone can write articles there. The truth is that not just anyone will take the time to write an article, just as most people will not take the time to learn for themselves. Wikipedia also includes citations and relevant links of sources to add to its credibility, which allow you to verify the information found in its articles.

To attempt big things, you have to think BIG. Which means 2 old cliche statements:

• “knowledge is power”
• “think outside the box”

The statements are overused but true in many instances because, if you learn more then its easier to think outside of what you already know plus how to get to that place/market you don’t know about. Simply put, you can reach that place you want to go with an informed effort. Although there is so much information available, many still are not using the resources properly. For instance, many have heard the words “disclosure agreement” and “vested interest” but usually it goes no further than listening to a term.

http://en.wikipedia.org/wiki/Non-disclosure_agreement

http://en.wikipedia.org/wiki/Vesting

Did you already know this information? Do you really need to? Maybe not, but my point is that the knowledge is not far beyond your reach. It’s not a long confusing trip to the library where you search through rows upon rows of books. All the information you need is right at your fingertips.

This has become so important to many companies, that a new job position has come out of it. Does the term Social Media Manager ring a bell? To the typical member of these sites the answer is a flat out No. Plain and simple, a SSM is a person who is hired to Tweet or post statuses and updates on the company accounts. Sometimes the role doesn’t even go that far, but rather it’s a person who is paid to setup those accounts for you and also an account allowing you to post the same message on all platforms at once. The past few years have created amazing opportunities for those who know how to market themselves in this new arena, but there are also problems that arise.

People want:

• Interaction - Customer service at its simplest form without being related to a telephone rep who can’t answer simple questions. Your company should
  

  Image by gordon2208 via Flickr

  have someone who is familiar with what you do and your vision, enough to answer the questions about your products or services. Remember the last time you called a company and spoke to a representative who was reading a script? Yea.. bad service.

• To Share  – Whether they are current or potential customers, people want something they can share with the people within their network. They like posts that can peak their interest enough to click “Like” or “share”. The content varies from what’s funny to good photos of your products. Videos, photos and blog posts are the most commonly used, but be creative and find a way to stand out.
• Non-invasiveness  – This has become a more recent issue with certain companies using a targeted ad approach which actually reads a member’s status and attempts to suggest what they might like. This has it’s pros and cons. It can get bad when the ads being suggested are say… “Christian Mingle” or other dating sites not relevant to the interest of the member. People don’t like things to become too personal. This also relates to providing phone numbers as a “safety-measure” in case they lose their password. I feel it’s important to keep approaches personal in regards to known interests, but not when it comes to personal lives and suspected preferences. Suggested products and services seem to be sufficient enough.
• Uncrowded Space  – Part of being non-invasive is not overcrowding a member’s space. We have all seen tweets and posts that are reposted every half hour, hour or sometimes even more frequently. I can see the point of view of some companies that they don’t want their posts to get lost in the stack, but people don’t want their timeline flooded with a repetitive message. This situation worsens when there are more than 2 company members doing this. You may have the greatest product or service in the world, but if your post inhibits them from seeing others then the chances of them sharing will dim like a candle in a rainstorm. The solution to this is to either space out your posts or if you post frequently, to make sure the content isn’t overly repetitive. Change things up a bit. You can even post the same set of 20 or so different posts everyday!

You want to engage people in some manner that promotes them to engage others who in turn find more to do the same. This is the true meaning of “going viral”, it is using basic social activity to your advantage for a low-cost marketing campaign. One which leverages at least 3 levels of networks, yours, theirs and their friends. So by putting some thought into these points, you are ultimately avoiding antisocial behavior and you can help keep people away from the Unfollow and Un-friend buttons.

This post has a personal grounding to our organization at Grow VC. During the winter holidays we’ve spent time planning for the longer term and steering the direction of the ship so to speak. I’ve had an inkling that I wanted to bring forth in our discussion and it’s become the topic of a larger discussion since then. This inkling is namely that in roughly a years time, at the end of 2012, the Grow VC team will have grown to over 100 individuals.

Why Not Make It a Thousand?

Image via Wikipedia

Delving into this subject of scaling the organization, Valto retorted with a larger number. Why couldn’t we instead be over a thousand in the organization after a year? After the intial shock and a few missed heartbeats, it all made sense. Most, if not all great long term organizations have over 1000 people.

Why did he ask me that? The reasoning is quite simple. If we think we can’t – we never will. And if we don’t believe it’s possible, then we’re in the wrong place.

We’ve gone through the path of scaling the organization and responsibilities, benchmarking and attracting the most brilliant people to our team and we’ve successfully passed 50 individuals (who we are immensely proud of might I add). How do you grow an organization from the initial team to fifty? Well, just make sure you recruit the best and the rest will follow. At least to a large extent. Fifty is a big number, but it’s one that you can still handle by pulling the strings yourself. A thousand (1 0 0 0) on the other hand, you will need a separate recipe for.

No One Has a Clue

Scaling the organization past fifty individuals requires a different approach. I’m confident we as an organization can do it, that’s not the issue. We’ve got heaps and heaps of confidence. How it will look, that’s a completely different topic all together. In attempting to create an efficient, purposeful organization also past the first 100 people, we’ve looked at making it scalable in building value. We as an organization take scaling very seriously.

In developing any organization past a certain number, it becomes clear that no one has a clue. Sure all MBA books are filled ten dollar words on strategic management and how to guide a large organization. But can you really guide an organization of hundreds or over a thousand individuals? Look at how large organizations function, look at how much efficient time individuals have each day. We’ve approached this dilemma differently. We want to make it work.

Interconnected Teams

Why yes, that is my mirrored handwriting. With our global operations on six continents, it’s been important for us to have local people. For us this means people with real ownership, incentives and autonomy to make things happen – you know, entrepreneurs. Teams in this context are nothing but a collection of people, with the before mentioned attributes, who have a set goal, ultimately that is to build value in the organization. Teams mean local teams, task specific teams (e.g. development, UX etc) and functional teams (e.g. the dreaded ‘management’).

These teams are interconnected and they need to communicate amongst themselves, that is the interconnected part. They should be able to function autonomously, but they should also be able to leverage and learn from one another. The primary links should be between the teams themselves and the secondary links are to ‘management’. The primary purpose of ‘management’ itself should be to provide the targets, metrics, priorities and support when needed in achieving the targets. But maybe most importantly, to get out of the way. Easier said than done, but what is the alternative? The pyramid? No thank you.

Guidelines – no Excuses

Brilliant people. Documented and proven processes that are constantly developed. Measured targets. The right culture.

This is more or less our recipe and so far we’re sticking to it. With efficiency and purpose always in mind, everyone is required to build tangible value and get things done. If something doesn’t work, fix it. If it does, improve it. It’s all about purpose in a team like this and if you dont share the purpose, you aren’t part of the team.

At the end of the day it’s been a delight working with our driven team up to this point and I look forward to all the people that we add on to this journey of creating a marketplace for startup funding. And in our market there are figuratively over 7 billion people and we will find the most brilliant hundred or thousand or whatever may be the number. We’ve already gone through over 1500 applications and the pace keeps increasing. We will find all the right people, it’s just a matter of time.

Clearly we at Grow VC are still the exception in terms of how organizations look and we will continue to push the envelope for a good many years. But how long are you willing to bet that the other approach still works? Or is it just a question of a process that no one has thought to question?

I believe the key difference between an entrepreneur and a business owner is the scope of that vision. An entrepreneur sees beyond their own locale. This could be simply beyond their city into neighboring cities, region, state or even better beyond their country. We see many possibilities and take steps to advance our place within a market. Often times, either working with an existing network or developing a network relationship. The following are 3 examples:

• Farmers- Often times a farmer will sell within their local market place. Once they go beyond this to their county, they realize more profit. Even more, are those which work deals with local Walmarts to provide them with products such as eggs or produce.
• eBay-  By providing members with the tools to tap into their local, state and country-wide markets, items sell much easier. If a seller choses to accept international orders, their sales volume increases even further. eBay also increases a member’s network privileges to even more countries once you’ve reached a certain amount of sales.
• Everyone’s favorite company to use for examples: Apple- Apple is now well known throughout the world as being a leader in both sales and marketing, but for a time it wasn’t actually the whole world. At a time they were not selling the iPhone 4 in Brazil, Saudi Arabia & China. By taking the time to figure out how to penetrate markets outside their existing user-base, they effectively increased their market share and quite naturally their revenue. This is especially the case with China, considering the country has the world’s largest population.

Lastly, think about the long term. Part of this all involves thinking further down the line. To think bigger, you have to think outside of what you’ve already done or are currently doing. The question would be, “where do you want to go?” this also includes time itself. Granted that nobody can be exact with events over a longer period, it is still important to plan for the future. I’ve read different debates on whether a formal plan is necessary or not, but honestly it can be helpful. This could refer to a standard business plan, flow chart model, list of milestones or a general outline. Not to say that I’ve always used an actual business plan in the normal sense, at times i’ve developed in depth business models to keep the workflow on track.

How would you go about setting goals for where you want to be in 5 years? Would you keep a mental note, if so how would you share this mental note with your team? This is a clear example of why some sort of planning is relevant, because generally an entrepreneur does not completely work alone. Nobody can read your mind or anticipate your next thought. A clear way to convey your vision to others not only helps them to see the larger picture, but is also a great motivational tool.

By planning outside of your present time and place in your industry while taking your team into account in regards to this, you will be on your way to separating yourself from the majority. As you are beginning to see, the majority sees what’s right before their eyes. Entrepreneurs think BIGGER. We see with our eyes, binoculars, telescopes and our microscopes in order to expand upon our vision to see the opportunities in front of us and afar.

On January 23rd, David and The Soho Loft will be hosting an event that includes many of the top influencers in the

Image by La Citta Vita via Flickr

world of crowdfunding and alternative finance. Highlighting the evening is Congressman Patrick McHenry who is responsible for spearheading the so-called “Crowdfunding Bill” that will help facilitiate a financial system that is inclusive for all willing investors and companies.

Grow VC will be speaking at the event in New York. To our extended community, here is a special discount code for 10% off “VIPGROWVC”. To register, follow this link!

You can listen to the podcast here (right click to save as).

Thanks for tuning in to the Grow VC ‘Everyone Funding Startups’ podcast. As always, get in touch with me (brett@growvc.com) with any comments or if you would like to partner with the show in any way.

But let’s start by reviewing the last 10 years

In 2002 we had just witnessed the IT and Internet bubble, and expectations about the Internet businesses were really low. There was also a lot of disappointment in the mobile market, when carriers and service providers had expected 3G (UMTS) to bring the Internet to every pocket, but in reality SMS was the basis for most mobile services. Google was still looking for its business model. There were some social networking services, but the term ‘social network’ was still unknown, and Zuckerberg hadn’t start to build Facebook. Broadband (ADLS) had just started to make its breakthrough into each home.

2002 was also the first year after 9/11 and many countries were in the middle of recessions. People were thinking back to the ‘golden 90′s’, when the stock market and VC investments generated a lot of money. People also thought that after a few difficult years, we would get back to the magical growth numbers of the 90′s. This decade has also been been tough for many dictators, like Saddam Hussein, Mohammad Gaddafi and many others. Information and new technology has had important role in this change.

What can we learn from this for the next 10 years?

We can divide the development into two categories:

1. better and more, e.g. larger screen, more speed, easier to use
2. disruptive business and technology innovations

For example, with mobile we have seen a lot of ‘better and more‘ development, but it has also required disruptive ideas (especially from Apple, e.g. apps, app store, new touch screen usability) to get the mobile market to a new level. In the Internet we have seen new business models and services, like Google AdWords, Social Media business and a lot of peer-to-peer businesses.

The world economy has faced a tough last decade. The stock markets have had volatility, but no real long term growth. The Dow Jones Industry Average (DJIA) was 10073 points on Jan 2, 2002, when it now weighed in at 12217 on Dec 31, 2011. It’s only a 20% growth in ten years, when DJIA was 3172 on Jan 2, 1992. During that 10-year period growth exceeded 300%. The situation looks similar in startup and VC markets, less IPO’s, less big success stories and the return on investment in many VC funds has been negative. Unemployment has risen in Europe and the US. But in Asia the growth has been fast and Asian countries have taken an important role in the world economy during the past 10 years.

Has this been an exception or have we come to a new era and must look for growth, work and business in a new way? Our answer is no, it’s no exception. People, companies and governments must accept that the old industrial era and corporate world is turning into the new information and networked society, which means new business models.

We have prepared some predictions for the next 10 years:

1. Corporations don’t create significant growth, i.e. no new jobs or significant share price increases. This means that investors and economies that only invest in corporations see minimal or negative growth, increasing unemployment and also political challenges.
2. The Middle class must be re-invented. In developed countries the traditional middle class loses its position, when there are less middle management roles and corporate jobs. More middle class people are forced to become entrepreneurs or self-employed, and run their own business as a part of business networks. At the same time, the middle class is emerging in the developing economies and it must find its own role there. It will create increasing political pressure in many countries in Asia as well. Generally around the world the middle class wants to re-democratize society.
3. Startups and networked business models create work and growth. There will be small and middle size companies and they work like a network with other companies, like one company can create a facilitating platform, another can create services and products on it, and all of them have specific roles in the ecosystem.
4. The Internet continues to change all businesses, i.e. e-commerce, online stores and Internet services become more and more important, but the Internet will also change business models in a more fundamental way, not only as a distribution channel, but by making many middle-men roles ultimately obsolete. This also means more peer-to-peer services and professional organizations must switch toward a supporting and facilitating role. For example, banks and investments companies will have smaller role to make transactions, and people can make them directly with other people and organizations, but there is a need for facilitators and experts to give information and advises.
5. Mobile, the Internet and TV continue to grow together. All services can be used by many different devices, when the services are in the cloud. Consumerization continues to change IT services and creates a new wave of enterprise services, old IT services and departments become irrelevant.
6. Machine learning and artificial intelligence will come back. Now it’s for real, not only hype and fantasy stories. We see the first applications 1) in personal assistant type services, 2) to organize and find information from data masses, 3) in robotics, when we get the first devices to help at home, and then also to do real work.

The Internets Impact

More and more business and transactions will be conducted online, which will naturally evolve to more cross border business with an emphasis on small growing companies. This translates to a more apparent “born global attitude“, while at the same time organizations will continue to become more virtual with working from home and not having their own offices or cubicles. This in turn will also make it easier to start, recruit virtually and cross borders. At the same time this will lead to people having more roles in their jobs, than just one employee and that one individual can work on an operational role in one organization and as an advisor in another. This will lead to even more opportunities and more virtual organizations.

In the past people have always gathered together around common topics, but at the same time typically in similar geographical locations. When some areas are more niche specific for one geographical location, it’s more natural that the benefit of grouping in virtual settings can make it more fruitful. It will help connect more people from different geographical locations and boosts a better understanding of different markets and opportunities on all topics.

The same way as the website for businesses has become an important part of, not only how a company will be seen in the first place “the first impression” (and often the only impression), the same way individuals own profiles in various services are becoming the most important way to present the first impressions and where third party services like LinkedIn & Facebook are the validators of the credibility of a real person. Similarly the startups history and profile serves as validation in services like Grow VC.

New Heroes

There will be many new heroes and disruptive ideas that we cannot yet name. We are optimistic and see that technology and new business models can make the world better, more democratic, transparent and also more effective (also in how to allocate natural resources). Of course, it requires the right decisions, but it will be harder for dictators or corporate tyrants to control and manage people, as people have more tools to influence their positions.

As part of this vision, Grow VC continues to build and develop better tools for individuals and companies to create new businesses, jobs and economic growth. We want to enable everyone the tools and opportunities to become an entrepreneur or investor anywhere in the world, and succeed. We cannot do this alone, but we play our part by offering the virtual Silicon Valley social market place for startup funding.

We call on people who share our vision to join the Grow VC service or partner with us. For startups, entrepreneurs and investors of the future – 2012 is a great time to join us as a pioneer in democratizing startup funding as an investor, part of the operational team or as an active member of our community.

Image by 401K via Flickr

This is a guest post from Peter Harper who covers topics like personal finance management, credit repair, credit counseling. If you would like to contribute to a global audience, apply here to write a guest post.

If you’re not aware of the exact steps by which you can grab an appropriate credit card, you might soon find yourself going through a financial standpoint when you’ll only be paying huge fees on finance charges, late fees and penalties. This is nothing but an economic burden that you have to bear, that too unnecessarily. This will not only ruin your financial suture, but also trash your credit score in the long run. But if you take certain steps to lower the average interest rates on your credit cards, you can emerge successful as a credit card holder. Have a look at some smart ways in which you can handle your credit cards in the best way possible by lowering the average interest rate on them.

Check if this card is for you: When you’re choosing a particular credit card, you have to make sure whether or not this card is for you. Determine your financial expenses, your income and all other needs so that you can easily calculate whether or not the card that you’re choosing is the best one for you. Also verify whether you can manage the payments and the credit limit.

Shop around: Whether you’re getting your first or second credit card, you must not choose one before shopping around. Get at least 5-6 credit card quotes from the credit card companies and then choose the one that best suits your needs. Check the interest rates, the credit limit and some other information about the card before settling with it.

Prepare for the call: Collect all your previous financial credit card statements and your previous financial records so that you can stay prepared before making the call to the credit card company for speaking to the representative. Only when you can show that you’ve handled your previous card responsible will the present lender lower the rate. Prepare yourself for making the call by gathering all the necessary documents.

Make the call: When you have gathered all the financial statements, you can easily make the call to the right representative of the credit card company. Tell them that you can maintain and handle your card in the perfect manner only if the interest rates are slightly lower. Assure them that you won’t default on the payments if they could kindly lower the rate. Be humble to them and politely request for the rate reduction.

Follow the above mentioned steps if you’re keen on managing your credit score by keeping up with the timely credit card payments. Choose the most appropriate credit card and manage your personal finances so that you can make timely payments and avoid hefty fees and penalty charges.

At the same time we really believe in the same concept in many businesses. We believe that all significant investment money comes from one place, not from the North Pole or Lapland, but from Silicon Valley. We believe all top level entrepreneurs come from one or a few single universities, Stanford or MIT. We believe you only can create a successful startup in one place. We believe a few leading companies have all the resources to create new technologies and innovations. And we believe Wall Street can define the right value for all relevant assets and a few people in top management can make all the right decisions. We can conclude there are a lot of cases, where we really believe in the Santa Claus model.

Or do we really believe in the Santa Clause model?

People start to see the Santa Clause model is simply not enough. We start to see that we can do things ourselves with other people. I can use some my money alone or with my family and friends to give some Christmas presents. And I receive gifts from my family and friends. Actually we don’t need Mr. Santa to take care of that. He still has an important role to create dreams and be a good example, but actually we must and can do all this ourselves.

If you look at Google Trends, you can see the crowdsourcing really started to emerge in 2008 and crowdfunding in 2011. It typically takes between 2 to 5 years from an emerging trend to a significant market. We are starting to approach serious business in these areas. There are many reasons, like enabling technologies (especially web 2.0), political factors (like increasing demand to democratize the world, not only from dictators, but from corporations and banks as well), and the shift from industrial era models to the real networked societies. This all combined is why crowdsourcing and crowdfunding are emerging. People like to manage their own life, their own work and their own economy. 2012 will be a new year when we will see a lot of progress in this area and much more serious business in utilizing these models.

It is nice to hear stories about Santa Claus, his home somewhere in the North and about his little helpers. It is a part of the Christmas spirit. But the Christmas spirit alone doesn’t bring presents, happy faces and surprises to all kids and adults around the world. We all do it together, when we remember the people who are important to us. We are all virtual Santa Clauses and we build our own virtual Santa Claus Land.

With startups the situation is the same. Success stories and the spirit of Silicon Valley is important, but we must build and fund companies ourselves including other people outside of Silicon Valley. We cannot wait for Santa Claus, we ourselves can build the virtual Silicon Valley.

The best gift each and everyone of us can give startups, entrepreneurs and our economy is to make a New Year resolution “I will invest my work, time or money in startups in 2012″. It’s easy to do with the Grow VC service starting with $20 or investing your work in a startup. And as always giving can be more rewarding than receiving.

Our entire team at Grow VC wants to wish You a Merry Christmas and Successful New Year!

Image by jferzoco via Flickr

This is a Guest Post by Sara Mackey. Sara is a business finance analyst and editorial manager at www.connexx.com, a guide in the field of small business finance since 1998.

Every business needs working capital in order to start-up, expand or maintain their company until it generates a positive cash flow. However, many small business owners have poor individual credit and cannot get approved for traditional business bank loan. There are small business loans for bad credit, but many of these loans will end up bankrupting the small business with exorbitant interest rates.

Both lenders and banks use credit scores and credit histories to determine the risk of a potential borrower. There are a few types of business loans or alternative financing available to obtain the business working capital needed for individuals who have bad credit.

Accounts receivable invoice factoring is one such option. Invoice factoring is a means in which a small business can convert their sales on credit terms into an immediate cash flow. A small business can sell their fresh invoices at a rate below their face value, usually between sixty and eighty percent of their worth, in order to obtain the capital they need. The potential line of credit is based on the strength of the invoices rather than on the strength or credit rating of the small business owner.

Business cash advance loans, also known as a merchant loan or merchant cash advance, is another popular option for small business loans for bad credit. A merchant cash advance loan is determined by credit or debit card transactions. Rather than paying the loan amount back in monthly payments, cash advance loans subtract a percentage of each credit card transaction. Business cash advance loans provide the business working capital without the stringent requirements of conventional business loans. Business cash loan amounts are determined by past transaction history rather than on the credit score of the business owner.

Venture or angel lending is another viable option for a start-up business or one that wishes to expand. Venture capitalist firms have had a tendency to stick to larger businesses with potential for huge returns, but many are starting to look at businesses that fill a niche. Angel investors and venture capitalists both provide risky or unproven businesses with financing, operate in the same financial sphere and both require an allocation of ownership shares, however there are a few differences between the two. Angel lenders are typically wealthy individuals, or a group of individuals, who invest in businesses with their own funds. Venture capitalists are corporate entities and provide financing using other investors money.

All businesses need working capital in order to start, expand or maintain their business. When personal credit is a problem for small business owners, they may believe they have no financing options. However, with these and other alternative financing, there are small business loans available.

Markus is an experienced entrepreneur and a phenomenal source on all things crowdfunding and it was an honor to have him back on the show. Make sure to stay tuned until the end to hear some incredibly insightful words from Markus on how to build a sustainable and global company!

You can listen to the podcast here.

As always, thank you so much for tuning in to the Grow VC ‘Everyone Funding Startups’ podcast and be sure to reach out to me (brett@growvc.com) with any questions, comments, or if you would like to partner with the show in any way.

We have now got to a point that we have most bigger features built to our core and we have switched more of our focus to updating and iterating many of our existing features, that we had built early on. Along that we have also started evaluating several of our core tools and services that we use.

Image via CrunchBase

As a base for server capacity, we are naturally running on Amazon AWS servers and that experience has been great (excluding one hiccup). For a big company, they truly are the innovators in the server hosting space. It’s great to have seen them bring their customer experience focus and mentality from their consumer side, also to their cloud services. With this field, we have no need to change.

But our system for messaging needed upgrading to a more robust solution and we had been eyeing SendGrid for quite some time. At the same time we had another tool related to messaging, namely MailChimp that we were using for our newsletter.

The ultimate solution we wanted to find was to be able to combine these two. A while ago Amazon had also enabled a messaging service and we evaluated that. But we still had that newsletter issue to solve. Looking at it from the cost perspective, one option would have been to run our own newsletter software on our servers, but we really did not want to get yet another software we would need to maintain, as clearly running newsletter software is not our core business.

Image via CrunchBase

We also felt that the Amazon email service being new, was not ready enough for us to jump in with, so we started to look deeper into Sendgrid. Also we were thinking, “Well I guess we can run some open source newsletter tool on our servers and let’s see in a year from now if we then can find something better. But let’s switch to SendGrid for messaging anyway.” We also looked at MailChimp if they would also offer sending system emails, but no such luck.

So we opened the trial account and to our surprise there was this little add on called the newsletter now in SendGrid. It may well be that it had been there already for a while, but we really did not notice in any of their communication until we had signed up for the trial account and looked a bit deeper.

At this point we were starting to get really happy with the potential, as for the same cost of just sending out the newsletters with MailChimp, we would actually be able to get a top of the line messaging system with hosted newsletter software. All this for the cost of just the newsletter on MailChimp. Now anyone in biz knows how good that feels (when you care about not just spending money, but using it wisely).

Doing the Actual Switch

It took us a few weeks to get all the details of the switch done on the technical side, but it really wasn’t that hard. Also SendGrid had several other usable features for our needs, as they clearly have been doing this stuff for a while. From the newsletter side we did not really expect much, as we can understand that it’s not part of their core offering, also considering how little they promote it. Our needs were not that demanding anyway, especially as it seemed to have all the basic features that we had also in MailChimp. Possibly MailChimp had some advanced features as well, but we were not really using those.

Image via CrunchBase

The basic moving of verified email accounts and so on went smoothly, and building the first newsletter was after the initial learning curve what you would expect. But then we found this one feature for A/B testing the newsletter variations. Being tech nerds, we immediately started testing that and man, is it a cool feature or what!

In all simplicity it allows you to create several variations of your newsletter, this being with variations in the subject line, content, links and what not. Obviously the idea is not to have different content and core messages (although you could if you wanted to), but just to do variations on how to communicate the same things and observe the impact. Then the system sends the first batch with different variations to a specified sample representing the population, and then measures the open rates or what you had selected to track. Once all is said and done, it automatically sends the ‘winning variation’ according to your specification. This was amazing, that it really can be that easy and effective.

The First A/B Test Newsletter

We decided to start light and just do variations of the subject line, that clearly impacts the open rate. Here are the results, as well as the variations used.

As you can see the difference between the highest and the lowest is roughly 40 % in the open rate. Imagine what that means in customer communication, keeping in mind that all people have opted in to hear what you have to say and if instead of 15% you can reach 60% of them?

This big of a difference has a really big impact on anyone. Making sure this is done so easily that there is no reason not to utilize this systematic, data driven method is fantastic. Everyone should be doing this!

Conclusion

We can already see that we will be doing more testing in the future, and most likely also going deeper into testing with content testing as well. We can see this will also help us learn along the way, what ways of communicating our messages are the most appealing and effective. This information we can then use in all of our other communication channels, that being messages in our application, PowerPoints, email footers and the list goes on.

As a side note, for those of you who are just starting to build your venture and do not have thousands of people to send newsletters to, in order to properly A/B test. You can do that on your website using different tools (like Google Analytics) and if you are even earlier along, anyone can do it with Google Adwords. If you’re thinking of what is the best name for the service or the best tagline, you can spend $100 (or use one of those free Google certificates) to get the exact answer, so you can stop speculating.

After discovering this feature, it may be that the same is possible with MailChimp. So regardless of what software or service you are using, make sure to check that out. We will stick with SendGrid for now, as we were finally able to get an “all in one” package for our messaging needs for the price of just the newsletter service with MailChimp.

Nowadays there is little need to talk about why or if startups should be integrating social media strategy into their overall marketing game plan. Social media has been integral in building marketing campaigns, gathering user feedback, and sharing anything important to your following. But it is also noteworthy to say that some (if not most) businesses are doing it all wrong.

Although I am a big fan of automation and outsourcing, these two principles should not apply to social media. You probably have heard of services that “time” or auto-release your tweets? Robots, anyone? Is that how we want to speak to our customers?

The whole point of social media is to get personal and at times unprofessional with your following. Facebook updates that say something along the lines of: “We are committed to bringing you great services and we do so by guaranteeing all of our products and services” are equivalent to the NBA player that notifies his anxious Twitter followers: “Just had a great workout, tweeps! Now I gotta eat.” Be unique, different, controversial or informative. This is across all channels.

Remember, each social media channel should have its own purpose. Your LinkedIn content should be different than Twitter (yes, go turn off your Twitter updates in your LinkedIn newsfeed). Your YouTube channel should be different than your Tumblr, your Pinterest pins different than your stumbles on StumbleUpon. This may be time consuming to offer unique strategy for all channels across the board, and it is time consuming, but offering amazing content and quality engagement to your following will pay off major dividends in the end. It’s really not a game worth playing if you aren’t willing to put in the time or creativity.

I recently had the chance to talk to Scott Cowley, who is the social media brains at Zagg Inc, a large phone accessory company. I wanted to get his feedback on one question:

What 3 specific actions would you tell businesses to do with their social media strategy?

Enter Scott Cowley:

• “Create. Invest in creating new content about your industry: writing, images, etc. on your site (usually using a blog) and promote the content using social networks like Facebook, Twitter, Google Plus, and LinkedIn. Creators get followers, gain respect and credibility, and become “top-of-mind” when people start thinking about hiring or buying from someone in your industry. Use creativity to build your reputation.
• Meet. Everything I do in social media is targeted toward meeting my friends and followers in person. If nobody is organizing something, I create my own event or invite people to lunch. Online friends turned into offline friends become the best kind of social media brand advocates when you get back online.
• Help. You’ll make friends easily by providing needed assistance to your customers and potential customers online. Become very familiar with Twitter search operators so you can find out when local people are talking about things you’re an expert at or can help with through your business.”

Again, going back to the theme, all of these things require uniqueness, creativity and time. But if you stick it out and consistently do these things, your startup will see the change it needs to for 2012. Or, if you are just getting started, perhaps in the year 2013. Be patient.

What changes will you make with your social media campaign in 2012? What did I leave out?

Image via Wikipedia

In part II of our discussion with Lionel Slusny of Loft FI (you can find the first episode here), we discuss the impact different crowdfunding growth scenarios will have on startups and on Wall Street. Since the global crowdfunding market is in nascent stages, it has the potential to grow in many different directions.

As we mentioned in our post for part I,Lionel, Co-Founder of Loft FI, is an expert on capital and risk management and an experienced researcher of the financial markets During this episode, he provides great insight into the limitless future of crowdfunding. You can listen to the podcast here (right click to save as).

Thanks for tuning in to the Grow VC ‘Everyone Funding Startups’ podcast. As always, get in touch with me (brett@growvc.com) with any comments or if you would like to partner with the show in any way.

Image by epSos.de via Flickr

Often the counter argument is the value of the right mentors. Granted, the value of a good mentor, advisor and role model is vast for a budding entrepreneur to rise to their fullest potential. A great mentor will force entrepreneurs out of their comfort zones, to pick up new abilities and hone their business skills to meet the demands of the market. But at the end of the day, if the entrepreneur has no time to listen and learn, even the greatest mentor will not be able to conjure more time for the entrepreneur.

Time IS Money

It’s a saying we shrug off almost daily and it reverberates in many different contexts. It’s not the golden egg of all proverbs, but it does have a point. Each minute of each day costs someone money. The sooner you learn to accept this, the sooner you will also be able to set yourself in the right mindset, of weighing your options and priorities, and focusing your time on what matters the most to yourself.

If you are spending time bootstrapping your venture and not taking out a salary, then guess what, that time is coming out of your own pocket. You are in effect paying for it. This is in various forms, for example through missed salaries or other opportunities (the alternative cost). It is an investment into the future of your startup venture and your own career. However it remains for you to decide if the investment is worth the sacrifice that you will endure making it.

Oh and one more thing, ask an entrepreneur that’s bootstrapped a venture or two if money is important. I’m sure you’ll get quite a clear answer.

No Such Thing as Free Advice

Entrepreneurs form tight networks in their local regions, but nowadays also increasingly much outside of their local setting. Time spent on networking or pitching in to someone else’s business is also time that has to cost someone. You can again decide that it is an investment into some future outcome, be it a relationship, partnership, a good contact or friend, but at the end of the day, if you are paying for it, make sure you get value out of it.

I’ve seen people ‘helping out’ in others businesses for months, only to end up in frustration and confusion as the ‘helper’ does not get anything out of the relationship. Sure you learn a bunch and so on, but let’s get real. If you are adding value to someone else’s operations, you should get something out of it. Often stringing people along ends up in miscommunication and unclear expectations, something that is good to clear up right at the start. “If I’m going to spend this much time in helping you out, this is what I expect in return..”. You don’t have to be so crude about it, but at the same time fair is fair.

Everything is a Trade Off – Don’t Pretend it isn’t

You are the judge of how you spend your time, but everyones time costs money. Make sure you can always justify your use of time to yourself. “I’m doing this instead of X, Y or Z – is it the best use of my time?”. A tangible example is sitting at a meeting looking at the same PowerPoint you’ve seen a thousand times, versus working on actual work, exercising or even spending time with your kids. Everything is a trade off, don’t pretend it isn’t.

Once you get into the mindset of thinking about time as the most precious commodity, which it most definitely is, you will have a hard time justifying menial and ultimately pointless activities to yourself. And that’s the point. You shouldn’t be doing pointless activities anyway.

Ask yourself, would you pay someone else to do the things that you are spending your time on?

Startups can easily share their Grow VC profiles in Facebook, Twitter or LinkedIn. Startups now also have the tools to add a link and logo of their Grow VC profile to different places, like their own website. They can use the Grow VC service to manage the process.

Grow VC offers tools that make it easy for startups to manage the funding process, regardless of what kind of investors they have and what kind of funding they look for.

“While it is crucial for each startup to have a model of communicating with existing shareholders, it is equally important to collect and maintain information for potential investors and other stakeholders”, states Grow VC Chairman and Co-founder Jouko Ahvenainen. “Investor communication is a long term process before, during and after an investment. As Social CRM becomes crucial for companies, we see Social Investor Relationship Management as the next important step for each company. The investment market is becoming social, like many other market.” Ahvenainen continues.

Startups in the Grow VC platform can build a full profile about the company, including the following features:

• Details about the company and its founders
• Business plan and key targets
• Accomplishments
• Video presentations and material like presentations and documents
• Discussion tools to get feedback and comments

Crowdfunding and private investors in the Grow VC platform represents one source to get funding; yet at the same time the profile in the Grow VC service helps to communicate with all kinds of partners, stakeholders and investors. It is a good place to present the startups background and track record to VC’s, when startups approach them. There are other places where you can maintain a company profile online, Grow VC is specifically aimed for profile information you wish to communicate for the company’s most important stakeholders, all the while offering stakeholders and potential investors tools to act in a social manner, for example share and collaborate with their peers.

In October Grow VC launched the Network Model that enables angel networks, incubators, investors and many other organizations to easily complement their current activity with an efficient online service. They can easily start their own branded investor and startup community on the Grow VC platform. Organizations interested in starting their own startup community, investor or crowdfunding network can start online immediately.

“It made a lot of sense for us to create our own Grow VC profile. On top of articulating who we are, what we do, and how our business develops, it’s been a key component in our stakeholder communications,” comments Michael Atencio, former law enforcement officer and founder of TraffiCop. “We’re also happy to see that Grow VC constantly develops new tools to measure and track progress we make.”

Image via Wikipedia

Growing up in Austin, Texas, I have encountered numerous brilliant minded businessmen who have gone on to create successful companies on their own. Michael Dell is the most notorious; he founded one of the largest computer manufacturing companies in the world. One of my contemporary college graduates went on to form Hey Cupcake, which started as nothing more than a food trailer, and has since grown to several locations. So, the question is, what makes these businesses successful?

Here are a few things I’ve learned from talking to other entrepreneurs, developing my own business ideas and listening to guest lectures:

1) The most important thing behind any successful entrepreneurial idea is a good concept. However broad that term may be, what is known is that the idea must feasible and money needs to be accounted for; pardon the pun. Know how much everything will cost to set up, use accurate figures to estimate returns and search for investors that will likely give the amount of money you need to begin. Keep this in mind before you start your actual business.

2) Often times, many guest lecturers are extremely vague in their wording. This just happens to be the nature of the business; again, no pun intended. Whether they are trying to protect their idea or they have nothing to say but broad generalizations, many lecturers tend to speak in ways that really do not contribute anything when speaking to a large audience. I find the best thing to do when attending a guest lecture with very vague information is to ask for specifics at the end. Make sure your question demands thought and could not be answered by just anyone, rather, specifically requires the knowledge of the person talking. They should be lecturing because they are experts; make them show their expertise.

3) Practice before you begin your business. I took an entrepreneur class in which we came up with the idea for a double sided peanut butter jar that would allow for access to either side of the container. The project took a lot of work without requiring the investment of any money. I was faced with challenges I could not have conceived of before I started actually doing the work.

Specifically, the question came down to would it be viable to charge extra money for a container with two lids. The cost of the extra lid would have to justify allowing access to all the contents of the jar. This question involved calling peanut butter manufactures as well as jar producers. Much of the information we hoped to get was classified as confidential, but by the end, we were able to conclude that it was not a viable concept.

4) As demonstrated with the previous point, your practice concept does not have to be a good idea. In fact, the idea really does not matter because this is just a test to fine tune your skills. Where you start to learn is how you go about collecting information, mitigating potential problems and estimating how much capital is required from investors in your idea. The key point here is entrepreneurial endeavors requires more work than initially meets the eye, and properly preparing for things that can happen will save you both money and time.

5) One of the most sobering pieces of advice I ever received was the fact of the matter is that most businesses fail. All the preparation in the world combined with a great concept does not guarantee success. Entrepreneurial endeavors are risky by nature. If, at the end of the day, your business fails, do not lie to yourself and pretend that there are feasible options when there clearly are not. Be honest with yourself and know when to cut your losses.

Keep in mind that good preparation, getting the most out of guest lectures by asking hard questions and developing a unique concept are some of the best ways to prepare for a life as an entrepreneur. It’s risky business, but the potential reward certainly can justify the required leap of faith.

Going forward, there are many players that will be impacted by the growth and widespread acceptance of crowdfunding. Over the course of our conversation, Lionel and I explore the ways that the participants will be influenced under multiple growth scenarios. Also, be sure to stay tuned for part two, coming next week!

You can listen to the podcast here (right click to save as).

Thanks for tuning in to the Grow VC ‘Everyone Funding Startups’ podcast. As always, get in touch with me (brett@growvc.com) with any comments or if you would like to partner with the show in any way.

Since we’ve been adding new people every month and receive new applications on a daily basis, we’ve opened a new tab on our site with vacancies within our operations. What we have to offer are entrepreneurial opportunities within a driven global organization. In this post I wanted to highlight one great opportunity for a talented, scrappy and witty individual looking to make a dent on the world.

We are looking for a manager for our Networks program. The position includes working closely with different network partners and assisting them in running their own networks on top of the Grow VC platform on various levels. These partners are high profile and accomplished within the startup ecosystem, representing angel networks, incubators, accelerators, organizations, associations, universities, business communities, local networks and so on. These partners are global, representing in effect six continents.

The Networks Program Manager would also be involved in and in part responsible for the long term and business development of the networks program. This includes both strategy and operational responsibilities, with a real impact on global operations in the startup space, with various different applications.

The position is highly demanding and requires an apt talent for problem solving and communication. Entrepreneurial and high tech background is a plus, but prove to us you can handle it and achieve results – that is all that matters.

If this opportunity sounds like it fits you like a glove – you can apply here or find more information.

Know someone who would be prefect for this role? Then make sure to refer them to us!

As this post was great, I also want to build on it and also share our views on the points mentioned in the post.

“Some sites have disappeared; some companies have non-functional websites or websites that have not been updated since 2010. Among them are ChipIn, 33needs, Cofundus, and RaiseCapital.com.Before submitting a project, it is a good idea to contact the crowdfunding company by phone or email to make sure it is still operational.”

Image via Wikipedia

With this I could not agree more. Despite how big potential the market has in the future, it will start out small and take time to develop to the big volumes. Those who do not think their strategy all the way through and don’t consider parameters like, size of the market, the growth pace of the market and their position in the market, will soon realize that there is not enough market to survive.

That’s why we set our own market to be global from the day one. Knowing that any single market would just not be enough to start, but all markets combined could well offer enough volume as we build our venture while the markets evolve.

And yes, please do contact us any time you want. We have been here for a few years already, growing stronger each year. We will not be running out of money, because of the way we have structured our operations. We are committed to building and scaling this venture all the way. And since day one, we have been shooting for the long haul. To us, looking at the markets development and all the activities going on, sites coming and going is quite normal, as we continue on our tracks toward the future.

“There are a fixed number of people interested in investing this way and the demise of some websites may signal that too many intermediaries exist for the number of funders available.”

We realize that there is big value to have many operators in this space and we are not delusional to think we could be the only one. We already from early on decided that the tools we build, we will also offer to others interested to operate in this space. As clearly running the operations is different from running a software platform, developing the features and staying up to date with legal developments in this field. We focus on that latter part and we may as well share the tools for others to utilize. At the same time instead of dividing the market into smaller pieces with separate services, why not have all services connected, so everyone running their own service benefits from the volume of users and also the users themselves can visit any service they like with ease, as the services themselves may provide different value to the users.

To serve that purpose, we created the Networks model, where anyone can tap in to our tools, knowledge, global user base and so on. You can see from this comment in the early days on the AVC blog. This was in our strategy from day one and now that we have enough volume and trust in our platform, it makes sense to share openly.

“Equity crowdfunding — the expectation of getting a payback on an investment — is actually illegal in the United States. In “Need Funding for Your Company? Look Online,” I mentioned that the U.S. Securities and Exchange Commission considers crowdfunding to be a sale of securities, which would require that the crowdfunding website owners be registered as brokers. One site, MicroVentures, is a registered broker. Two others sites, GrowVC and SeedUps, have headquarters outside the United States, making them exempt from U.S. law. Other sites are in a gray area, saying that they only provide a meeting place for entrepreneurs and equity funders.”

While there are highly positive developments in the US legislation, with the highest level of support from President Obama and now almost unanimous House votes to allow crowdfunding, the day is just not yet here. Our decision to set our HQ in Hong Kong was a result of almost one year of legal due diligence before we launched our service. In fact, without the limitations or with lower risk, we too would have established our HQ in US.

In addition our micro investing model is not to be considered direct investing. At the same time our Networks model also caters to other needs, as well for the same startup ecosystem with tools like work investing (Sweat Equity), there are plenty of ways to use our service and also setup networks also in the US while awaiting the change in the regulation to be in full effect.

“One prominent crowdfunder, California-based ProFounder, was recently forced to cease operations by state authorities. “They were acting as a broker without being licensed as a broker dealer,” stated Preston DuFauchard, the commissioner for the California Department of Corporations. In August, the state agency issued a formal consent order to ProFounder to “desist and refrain” from engaging in securities transactions without registering as a broker dealer. Other states may not be as diligent as California, but all crowdfunding sites with an equity model are subject to SEC enforcement. ProFounder is now actively lobbying for changes to the securities law. Profunder’s home page now reads, “Profunder goes to Washington.” California authorities have halted the company’s funding activities.

Now someone could think that this makes us happy. The fact is that we salute our fellow entrepreneurs for their efforts to try to build a better world for startup funding and genuinely see that the future market is big enough for several good companies to operate in. And there is no market without competition. ProFounder was an excellent candidate for us to race against for the benefit of both services users.

Clearly we can’t just nod our heads and agree with everything, so here’s some perspective to this last part “Downside to Equity Crowdfunding?” that says;

While crowdfunding would provide another source of equity funding for small businesses, there are several potential drawbacks for entrepreneurs. Unlike contributions to one-off projects in which donors have no say in implementation, equity investors want, and are entitled to, some influence in the direction a business takes. Having hundreds of equity investors means you will be answering to hundreds of bosses. That’s time-consuming and costly to administer.

This is a valid point and all entrepreneurs going down this route should make it clear what the position they offer their “crowd” is? How much participation is expected or can be offered? The rules of action need to be communicated clearly up front.

However to be frank, no crowd investor should ever expect much more than what a single small shareholder can expect in a public company. Too much control or influence, would make the company impossible to operate, making all stakeholders lose. At best the crowd can support the company and help build its value, and that generates value for all the stakeholders. This can be as simple as buying products, recommending it to friends, tweeting and giving constructive feedback via the company’s normal feedback channels. Nothing more, nothing less needs to be expected from either side, as those functions are a normal part of good company practice anyway.

We at Grow VC have written in our own strategy that we aim to have at least 25% of the Grow VC organization belong to our users. This way we and our users know we are building this together. Further our business model is built to bring value to Grow VC, only when the startups in our platform succeed. We think that’s only fair and we like to be on the same side of the table with our users.

Moreover, startups that accept equity crowdfunding can expect to have difficulty raising additional funds from venture capital firms and other sophisticated investors if they have hundreds of small, less knowledgeable backers.

This could easily be the case if done with the wrong structures, but there are actually quite simple ways to make this a moot point. One of those is that all smaller investors are grouped to a separate investing company, that then makes the actual investment in the startup on behalf of the crowd. And that is exactly the way we manage the micro investments at Grow VC.

This way from the future investors perspective that “crowd” is represented by a single shareholder, where that arrangement is agreed on separately with the largest value for the company in mind. And again, that structure needs to also be communicated clearly by the startup before any actual investments are committed.

To be fair to Marcia, she actually did had a question mark in the sub headline, so I guess those two last parts were to be questioned anyway. In addition the post also talks about the new crowdfunding legislation that we have also covered here on our blog, but I really urge reading Marcia’s full post at Practical Ecommerce.

Alan Moore’s new book, “No Straight Lines: Making Sense of Our Non Linear World,” contains a thought-provoking collection of ideas calling for a more human centric, participatory society. In this episode, we discuss the rise of a more open and transparent economy and intellectual infrastructure.

Along with his role as Grow VC’s Head of Vision, Alan is an accomplished author and speaker. He has given talks at numerous events, including SXSW, and works with businesses to develop strategies and business plans to succeed in the non-linear world that is evolving before our eyes.

You can find the podcast here (right click to save as).

As always, reach out to me (brett@growvc.com) if you have anything to say about the episode or want to partner with the show in any way. Thanks for tuning in!

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Building on the previous blog post on Changing the World Can Be Boring,  another analogy popped into my mind that I thought I’d share. This especially refers to those ‘larger than life startups’. But I want to emphasize that there is no right or wrong startup type, it is just a choice by the team of what path they want to pursue.

Startups can be like space travel. Imagine taking a trip to the moon or Mars. The notion of going to outer space sounds really exciting, but the journey itself consists of a lot more than what the feature film will afterward celebrate. The process could look something like this: years of preparations and planning to choose your destination and outline your mission. When you launch on your trip, 99% of the time you will spend in a small cabin with your team. And you wont really notice the speed you’re traveling at, as the journey is so long and there is not a lot else that you can do other than help your team keep the speed and destination in sight.

Your team faces the bumps of the journey together, while there is a group of people on the ground helping you navigate and cheering you on. Only when you reach your destination does the world wake up to what has happened and cheers even louder (by comparison, this is when the market has emerged). Still you need to get back safely until you can call the trip a success. And that’s when the market has become the new norm that the mainstream recognizes. In many ways, this is like the journey of the startup that’s changed the world.

So when you’re preparing for your trip, you may want to do a gut check, if that is the journey you are prepared to do and commit to it accordingly. If not, you may want to choose a less challenging mission and just take a quick dip in pace with Virgin Galactic.

Image by Holger Zscheyge via Flickr

If you’re building a following or community of some sorts, which is again, for better or worse almost mandatory in most cases when attempting to change the way a larger piece of the puzzle in the world works, you’ll quickly stumble on the fact that communities are not built over night. Sure you can shout loudly and get many people’s attention quite quickly, however to retain the interest of these people you’ll have to build something valuable for them and not keep barking at the top of your lungs all the time. At the end of the day there is only one way of building an engaged following and community, and that’s one person at a time.

In the early days, the slower nature of growing a community can be a blessing in disguise. As you’re figuring out where to take your venture and what path is the most beneficial for your longer term journey, those that join you early on will help you in realizing that direction. Clouding this exploratory process with more and more people with noisy opinions may be detrimental to your mission, especially if they aren’t willing to forgive your early day fumbles. And you will have your fair share of fumbles, who do you want to be watching those?

The process of building a larger community is also a humbling one, as you attract individuals that start to champion what you are doing and learn to deal with many different types of personalities along the way. It’s a ton of hard work and getting to some sort of mass with an actual impact will take years. But rushing it, even with a thick wad of cash, can lead to many more problems that will need to be dealt with at some point.

We’ve previously also talked about the illusions with large press with successful entrepreneurs, which definitely play into the glamourous image associated with world changing ventures. There is also a little of the old ‘the grass is greener’ syndrom associated with looking at any one else’s progress, as you’re only seeing the flashy exterior and not what’s going on behind the curtains. Every startup and company ever built has breaks and pitfalls behind the curtains. Ask anyone.

At the end of the day, going after a world changing mission is a choice. There’s nothing wrong with building a venture and selling it off for someone else to run. It’s just a choice, like many other things in the entrepreneurs life. Which will fit your path? Who knows. But whatever choice you make, remember that a shot a at changing the world will require a lot of work, time and commitment before it’s over. It’s going to require everything you’ve got, but actually even more as you’ll have to bring in more and more people. And at the end of the day it might still not be enough. And even if you “make it big”, it might never be over.

So think carefully about what type of fight you want to take on. A wise man once said, “overnight success takes six years on average” and he’s probably not far off.

In our mentality to provide the startup with tools and a platform to manage all their stakeholder relations, not only with investors, but all other sorts of partners. With the networks functionality, these also include stakeholder networks, such as incubators, accelerators, angel networks, universities and so on. In the future with the development of our API, we see your Grow VC profile working as a backend to all your startups funding needs.

Have you found your startup buttons already? In your startup profile, you can choose from a variety of buttons to promote your profile and add these buttons to channels where you are active online. These buttons link back to your startups public profile which is visible for people without logging in to the service itself. The public profile contains limited information, but allows individuals to follow up in the service itself.

See some buttons below and find your own in your startup profile on Grow VC!

Now in its third year, Mobile Web in Africa continues to grow, making a bigger impact and bringing more people together with each passing event. If you happen to be tuning in from Johannesburg, make sure to hop over to the event, happening next week.

Listen to the episode here (save as for mp3 version).

Thanks for tuning in to the Grow VC Everyone Funding Startups Podcast! Make sure to get in touch with me (brett@growvc.com) if you have any questions or comments about the show.

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Silicon Valley is by far the most prominent local ecosystem for startups, but a lot is going on outside of that region. Looking at Los Angeles, Chicago, Boulder, Seattle, Boston, New York and so on, it’s obvious that ten years from now, we will have many thriving ecosystems that will look distinctly different than Silicon Valley, having rather enforced their own roots and their own DNA. Like chefs using local produce, ecosystems need to take advantage of the highest quality local resources at their disposal.

Los Angeles is definitely not a traditional startup powerhouse, but in the past few years a lot has started to emerge in LA and Southern California. The entertainment sector is prominent, but it also spills over to what types of startups emerge out of LA and also the resource pool around these startups. Not only startups though, there is a lot of capital in the entertainment space, and we’re seeing less-professional angel investors starting to get active. This is a good thing, as the “professional angel investors” represent only a minority of all individuals with the means to invest. Getting more and more people excited about startups will definitely get the crowd buzzing.

Local regions that have strong sectors represented, for example like the financial sector in NY and entertainment in LA, will be on to something once the bridges between these industries and startups are built. The average individual in these sectors have not traditionally had the opportunity to participate in startups, but as the market in the startup investing space (naturally including crowdfunding) evolves, these links become all the more important.

A small percentage of capital from large industries and sectors being channeled into startups is peanuts for these powerhouse industries, but the implication is huge for startups, employment and the overall economy. Look at the entertainment space for one. Building sustainable bridges between this sector and startups, to bring more access to good deals for potential investors is one key to unlocking a mainstream adoption of entrepreneurship within the local community.

For years and years we have been trying to replicate the Silicon Valley model in different regions. And not surprisingly, any copy and paste efforts have more or less failed. What’s inspiring is seeing local ecosystems foster what has made them thrive historically and empower themselves in a new way with entrepreneurship and startups. Ecosystems do not develop over night, nor should they. Yet with the right mentality and sustainable focus on connecting the dots, they will emerge stronger than ever in various different shapes and sizes.

Even though it’s still early days in most of these emerging startup hubs, hopefully in the future these hubs will have a distinct local connotation and expertise, where ecosystems are interconnected and leverage each other, rather than all trying to replicate one single working model independently.

During the podcast, we discuss Jonathan’s entrepreneurial background as wella as his path to GEW and the Kauffman Foundation. Make sure to listen in for entrepreneurial tips and Jonathan’s view of the crowdfunding market.

One thing you can say about New York entrepreneurs is that they definitely have guts. They have guts to take risks, to innovate and compete in challenging markets, but they also have the required street smarts to build an ecosystem that will stand out in the longer term. The startups we have watched and met have proven this to us time and time again – they are not stopping until NY is on the startup map. Big time.

Just like chefs use local produce, the startup ecosystem has to have a local flare to it. New York is a powerhouse in many sectors like finance and media, wherein there lies interesting dynamics to be uncovered for the future. When we talk about democratizing startup investing, it also relates to building an open ecosystem that caters to startups in their many stages of development. Like pieces of a larger puzzle, the ecosystem needs to be complete in its support for startups, because while entrepreneurs are driven individuals, it’s the larger community that needs to be leveraged to develop the large, global innovations of tomorrow.

Coming back to the notion of guts found in New York entrepreneurs, we believe this is a key in developing the local flare in the landscape. For entrepreneurs, by entrepreneurs in essence. The potential is there and entrepreneurs don’t wait for permission, but rather will pave their own way to create the future they wish to see (and have). And it’s clear that future incorporates New York as a powerhouse for innovation, but also new synergies in a broader ecosystem, in a way we have yet to see.

Startups are about drive and commitment. We have seen that in the eyes of the entrepreneurs in New York. Having a strong presence in the region and growing our troops on the ground, we are privileged to watch the entrepreneurs build their own chapter, one success at a time.

We also discuss CrowdConf 2011, the place to be for industry insiders. Make sure to head over to CrowdConf.com to learn more and catch up with videos and interviews from the event. The power of the crowd is transforming the way we all work and live so the lessons from CrowdConf will be extremely valuable.

Listen to the episode here.(save as for mp3 version)

Also in this episode is more information about the Grow VC Network Model and the U.S. tour that some of the members of our team are currently on. It is an exciting time for the crowdfunding market so stay tuned to the Grow VC blog for further updates.

If you have any questions or comments regarding the episode, feel free to get in touch with me at brett@growvc.com. Thanks for listening!

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“Startups are not micro corporations”, a quote best said by Steve Blank. You can’t apply the same structure and rules to a startup with a large corporation by just placing it on a smaller scale. In Steve’s context, he’s referring to business planning and customer development. It’s a good idea to look at how the same thought process can be applied to working in a startup. Knowing the difference between a startup and a corporation is crucial when it comes to working with a proper business mindset.

In large corporations there are positions that are advertised widely, also, depending on the job, there may be high competition among other applicants seeking the same position. For the most part, your position in a large corporation is already defined clearly from the start and everything you need like your tools and office is given to you specifically by the company. With all that said, keep in mind that it’s also extremely important to align yourself with the other employees: know how everyones agenda adds up, know what they do in the company, and know how to communicate efficiently with them. Large corporations and startups are completely different, so don’t treat them as a same entity.

Startups differ in that there are rarely any ads posted in the media. You’re expected to do more work; the more you can handle, the more responsibilities are then given to you. You know how in a corporation you get the tools and training you need to move up through the ranks? Well, in a startup you don’t have all those tools which means you may have to find your own training. You might even have to create it. You’re expected to learn as the startup moves forward and simply go with the flow for the most part. You’re really not loaded down with any work in a startup, you’re just expected to be productive. If everything is setup correctly and the startup is built right (compensation structures in place, right culture and so on), no one within the startup needs to worry about being “overly productive”; it’s expected each individual be productive anyways, as with any business of course.

So, there are both pros and cons within a startup and a corporation; but given that they are vastly different, it’s essential to understand how they both operate. Knowing where you are in a corporation and in a startup will make it much easier for employees to work with one another. Things may not be as black and white as expected, but if you have an entrepreneurial mindset you can do well in any structure no matter how small or large it is.

In this podcast episode, we speak with Andres Jaramillo, a startup veteran about his experience building a venture with the help of the Grow VC platform from Ecuador. Andres shares his story from looking for relevant global investors, to utilizing Grow VC in the early days for raising a $3M funding round to get the company off the ground and how the company has taken off since then.

Grow VC is working to build a global community of entrepreneurship by connecting founders with the resources and tools to help their businesses flourish. Latin America represents an exciting startup region and we at Grow VC look forward to further expanding our presence in the area.

Listen to this episode here (save as for mp3 version)

“First, Grow VC created a marketplace where anyone can look for funding or invest in a startup. Now we take the funding market to a totally new dimension: anyone can also create a startup community or funding network. Angel networks, incubators, investors and many other organizations can easily complement their current activity with an efficient online service”, states Grow VC Chairman and Co-founder Jouko Ahvenainen. “Our aim has always been to create #1 equity crowdfunding environment in the world. It doesn’t make sense that all parties build individual platforms as separate silos, where users are suffering to find them, learn to use them, build and maintain their profiles in each one of them. It is better to create a networked model where each party can create value and uncover synergies with other parties. We created this Network Model based on our users’ and partners’ vision for the future.” Ahvenainen continues.

Grow VC started to test the model with exclusive partners in September and now launches the Network Model for a public beta phase. Organizations interested in starting their own startup community, investor or crowdfunding network can apply to the beta program. Later, Grow VC will open a self-service model, where each organization can easily set up its own network from the online service itself.

Grow VC already has over 40 pilot partners that are running their own networks. These partners represent different kinds of startup, investment or incubator organizations, but also include universities, networks focused on local markets and niche specific networks. Partners are all around the world in the US, Latin America, Africa, Europe, Asia and Australia. The following examples illustrate the versatility of the networks:

OnSuccess – a startup and angel network from South Korea that is focused on global impact
BBDO Venture network – run by BBDO Germany, pioneering a new innovative way to look for funding and work with an advertising agency
Caypen Fund network – a network of entrepreneurs and investors in Southern California
New Enterprise Exchange (NEXT) – a startup network that works together with many parts of the South East Asian startup and investor ecosystem
NYC Business Networking Group – a comprehensive professional network in New York
Innovation Warehouse – formed by a group of entrepreneurs in collaboration with the City of London Corporation, providing a community and runway for businesses to achieve sustainability and high growth
Amity University – a startup and investor community of Amity University, the leading education group of India with over 80,000 students.
NextPerience – a creative incubator from Buenos Aires, Argentina
Greekers – Israeli startup community, green geeks network
ENOVA – Entrepreneurship Society of the New University of Lisbon, Portugal

“There is instant value of the network effect for network partners to start using our tools, with access to over 11,000 entrepreneurs and investors. Now users can simply take their profile from one network to another one with a few clicks instead of registering to individual networks and maintaining multiple profiles in various silos. Entrepreneurs and investors are busy enough with their real business, that they must not waste time creating multiple profiles and studying several systems. Grow VC continues to innovate and develop these tools and models with our network partners and also opens opportunities for any developers to build new tools and offer them to these network partners using the recently published API” comments Grow VC CEO Valto Loikkanen. “We are extremely humbled to already have so many great network partners signed up and share this vision with us”, Loikkanen continues.

Speakers at the conference include Philip Rosedale, founder of Second Life; Mark Gerson, Chairman of Gerson Lehrman Group; Jeff Howe, contributing editor at Wired Magazine who coined the term “crowdsourcing”; Charlie Cheever, founder of Quora; These are just few of the over fifthy speakers, from the hottest crowdsourcing companies, that will be present at the event.

During the conference the topics covered will be human computing, distributed labor, quality assurance and metrics, task design, worker motivation and incentives, labor and the law, computer vision, social and economic impacts 
and implications of crowdsourcing, work distribution systems, history of crowdsourcing, applications and innovative projects, limitations of crowdsourcing.

Using their own words, “CrowdConf brings together an international audience of scholars, executives, policy makers, artists, and technologists for a day of learning, conversation, and networking”. Come find out yourself!

CrowdConf 2011, event details:

Website: www.crowdconf.com

When:

• Workshops: Tuesday, Nov. 1 (10 a.m.–3 p.m.)
• Conference: Wednesday, Nov. 2 (8:30 a.m.–6:30 p.m.)

Where: Mission Bay Conference Center, 1675 Owens Street, San Francisco

For example, have you already included a video pitch and additional attachment material in your profile? And have you tweeted your profile link and shared it to your social media audience?

It is important to give enough information to potential investors and draw them into your venture. And it is not only about telling the facts, but your presentation style and your video can also tell about you as a person and about the startup company’s DNA. Those are also important components, when investors consider which startups are interesting.

It is also important to be active. Founders who have successfully used Grow VC have demonstrated their activity in the platform, for example Cintep raising $100,000 from micro investors or our biggest case had raised $3M in a single round. They were active in the service, by contacting investors, updating information regularly and bringing valuable news to investors. It is like any market if you are active, you have better chances to succeed.

Start it today, check your profile, update it and share the good news you have in your business.

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Failure is an integral part of ‘making it’, if you think of it like an ongoing process of trial and error. You will err in many aspects of the organization, but one that’s critical in the early days is getting the team right. The team itself is instrumental in crafting operations, but early recruits also set the tone of your startup culture and will impact the direction of the organizations mentality. Sooner or later in scaling your operations and organization, you will find yourself in a process of hiring and firing – that as uncomfortable as it may be, will make a huge impact if done with appropriate diligence.

One cornerstone of the entire process of staffing, is simply to keep your eyes open. Just like all things, you will have good calls and you will have your fair share of bad calls. Hopefully these will balance out in your favor. What’s most important is that you do something about the bad calls, as having the wrong people on your team will ultimately influence your working environment. If you approach building your organization with your eyes open and embrace the storming process of getting it right, people and responsibilities will start falling into place sooner or later, and some will naturally fall out.

If you’re honest about what’s going on in your organization, you will easily spot the misalignments within your ranks and be able to sort these out. Sure, some days your job will suck when you deal with these misalignments, but most of the time these decisions are easy to make. That doesn’t mean they won’t be unpleasant, but people tend to mix unpleasant and hard to make as one and the same. Which they aren’t by any means. And once you get past the unpleasant part, your entire organization will thank you in the longer term. Maybe not so explicitly, but you get the point.

Handling this change in the early days of an organization is naturally one with challenges, which further enforces the point of making sure you have the right team in place with the right attitude. In a startup, everything is uncertain and dynamic. People will come and they will go, which is the natural course of an honest approach, but also accentuates the uncertainty in your operations. Communication is key and it’s always good to explicitly enforce the culture you wish to build. And we could argue that you can always choose denial, but that’s not an option anyone should consciously choose.

If you manage to craft an entrepreneurial culture, that is driven by creating value, most of this organizational change should be quite apparent and expected for each and everyone on your team. Most of the time even, when you deal with a problem head on you will notice that they tend to start working themselves out simply by you addressing them and opening the line of dialogue. And problems are always better when directly dealt with, especially those that will have a big impact on your future as a team.

Don’t confuse hard decisions with uncomfortable decisions and don’t be afraid to make the uncomfortable decisions. Ultimately it’s up to you to make these decisions that matter, for the longer term mission.

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Piia-Noora Kauppi is an experienced politician from the EU, with a decade of experience from the European Parliament, but also a vast amount of global insight. She joined us to discuss the financial crisis, how the landscape in Europe has developed and how to build the future from an ongoing crisis.

Listen to the podcast here (save as for mp3 version)

In this episode we talk about Piia-Noora past life as a EU politician, her perspective on global events and the state of the European nations. Having such a vast perspective to draw on, she can see the opportunities presented by the unfolding crisis. We also talk about the importance of startups, her own perspective on entrepreneurship and how the world is developing on a global level.

At the start of November, there are opportunities to meet Grow VC founders in NY. You can read more here. Send us a message if you are interested, for example to info@growvc.com

Grow VC has its international offices in London, Hong Kong and Helsinki, and our team members on all six continents. Our aim is to create the Virtual Silicon Valley, a global community and ecosystem of startups and investors. In the Virtual Silicon Valley talented people around the world can create successful startups and investors can find opportunities anywhere in the world.

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The Economic Policy Institute put together data on income distribution across time periods that have seen large increases in wealth. When you look at these charts, it’s clear that some democratization is needed.

Look at the numbers from a decades growth between 1997 and 2008, all increase in value went to the wealthiest 10% of the nation. And the wealth increase is seen as a decrease of wealth for the bottom 90% of the population! Now that can’t be correct, can it? Re-visit the numbers as much as you like, the picture isn’t going to get any prettier.

The current ‘free market’ isn’t free at all. Information asymmetry is alive and well, and may indeed account for a lot of the wealth inequality. Not everyone has access to the same information and not everyone has the same connections. Just as in startup funding, not everyone has the possibility to participate in the best deals and as we’ve seen in the recent years, quality of deals can go a long way in determining how much wealth is created, but more specifically to whom that wealth is distributed.

Not everyone wants to be an investor in startups, just as not everyone wants to be an entrepreneur. It’s the way of the world and that’s fine, but who does the exclusionary mechanism benefit? The select few at least, but what about the rest of the nation and economic growth? Are we better off producing billionaires, than we would be producing 1 000 times as many millionaires with the same capital? 

It’s clear that the wealthiest 10% have done something right and there will always exist a new wealthiest 10%, but if we look at the entire spectrum of people, there are a lot of people that could do a lot of amazing things, if they had the slightest chance.  Many would make great entrepreneurs, with a drive that others would envy and maybe in a few years they would make great angel investors. But the barrier to participate in startups is way too high and for individuals looking to learn the name of the game, the costs of starting are enormous.

The good news? It’s changing as nations recognize the economic impact of new models. It’s changing because of the old models being recognized as ineffective for years to come. It’s changing because it needs to change.

Why? Because all efforts that pervert the free market will ultimately cause inefficiency and a shroud of other excess. Haven’t we seen enough in the past few years to recognize that this is not the future we want to see through?

Image by Br3nda via Flickr

Grow VC opened the Beta Program of our Open API for developers last week. We wanted to elaborate on the functionality in our podcast, to explain the impact and significance in the startup ecosystem and the open network that we are building.

In this podcast episode we talk about what the Open API program is, how we will proceed with developing the API, but also the impact and reasoning behind creating the API in the first place. Grow VC is not just about building one community, but creating a global ecosystem that caters to entrepreneurs and their needs, and helps them thrive in their journey to become successful businesses.

Listen to the episode on here (save as for mp3 version).

Listen to this episode for more information, other topical news and what’s coming up this fall. It’s an exciting time all around and the market will see a leap with the tools are introduced.

Image by Neil Wykes via Flickr

The downside of not knowing the order of things or what’s important in the beginning, is obviously that they will either try to do everything at once or start at the wrong end of the ladder. Either way this may end in crushed spirits and a lot of cash spent on things that take you no closer to your startup becoming a reality.

The counter-argument is obviously that each step you take, right or wrong, should result in some level of learning and enlightenment, yet at the end of the day some things you should be able to pick up from others.

What should an aspiring entrepreneur then do?

The first thing any entrepreneur should do is quite simple: start something and test it. If you’re building something online that’s simple to make a mockup of, then do that. If you’re making something more traditional, make something you can present, like a mockup on slides or even paper. It’s always easier to present your ideas if you have something tangible to show for. Even registering a domain goes a long way.

The reason for making a mockup is quite simple, you can test it. In the beginning all your ideas are built on assumptions and at the end of the day, you don’t know what will work ahead of time. You may think you do, but before you have statistics and data, remember to separate between what you know and what you think you know.

With a mockup, you can test it on your presumed audience and collect feedback on what you are doing. Presumed audience because you don’t know who your audience is either. Again, you may think you do, but test it outside that audience as well and see what they say. It might just be that you find your audience outside what your core assumption was or it might be that you uncover something else that proves valuable for your operations.

Why go to such lengths to test something that you “know” works? The short answer is, if it hasn’t been proven, you may well be wrong. And proven means statistics and customer data, not intentions or planned purchases, but preferably actual purchases in customer dollars. The more you test and the more you acquire real information about your market and customers, the less likely you are to shoot yourself in the foot.

Or you can look at it from another angle – any way you approach it, you’re going to be testing it at some point. If you can get the same information with a weekends work, rather than planning and sitting on your idea for six months, why not at least give the weekend version a shot? You can’t be worse off for putting the some gears in motion, however minimal the movement may be.

The other way to go about this is to start extensive planning, make up a fancy 30 slide pitch deck for your Menlo Park VC’s, put your life savings on the line and well – make a gamble. Either way you’re making a gamble, but it’s the stakes you control.

Testing your assumptions means risk mitigation. But at the end of the day it’s your call. Stick with wondering about the idea and never do anything, or start testing what you think you know.

“Our aim has always been to create #1 equity crowdfunding environment in the world. An important part of this mission is to make our platform and ecosystem open to all parties to develop services and businesses on top of the technical and legal framework we have created”, states Grow VC Chairman and Co-founder Jouko Ahvenainen. “We want to see that 3rd parties are able to run successful business by utilizing our platform and tools. Crowdfunding is technically and legally a complex environment and we have worked 3 years to build this functionality, so we can make it easy for 3rd parties to utilize our solutions.” Ahvenainen continues.

In the first phase developers can apply for the Grow VC API beta program and get needed specifications and support to develop applications and 3rd party services that utilize the Grow VC platform. During this beta phase Grow VC further develops the API and its documentation together with the selected beta partners. Anyone is free to apply to the API beta program. Developers can also meet Grow VC people during the “National Fall Tour” in New York, Los Angeles and Silicon Valley in early November.

There are already several parties that that are involved in utilizing the API. One of them is Silicon Valley based AHHHA™ that helps people to turn their ideas to profit. They can use the Grow VC API to get crowdfunding for startups that are created to implement an idea. AHHHA’s Founder and CEO Matt Crowe comments “I believe in the future of a more global ecosystem for early stage ideas, companies, products, and services through crowdfunding and Social Ideation and see the partnership between GrowVC and AHHHA as the beginning of opening up opportunities to more people around the world.”

Another example is German-American Globumbus that is founded by successful serial entrepreneurs and founders of Zanox. Globumbus develops a crowd sourcing type community for startups. Globumbus partner Thomas Hessler comments “The Globumbus team loves the passion for entrepreneurship seen in the Grow VC team. We will definitely use the Grow VC API with our ‘Global Crowd Network’ to cover the crowdfunding needs of our deals.”

The third example is Indian Innovation development community Planet Aikon (http://www.planetaikon.com). Planet Aikon can use Grow VC models to connect investment money and work investments (‘sweat equity’) as well as to handle the investment process in their community. Planet Aikon Founder and CEO Dilip Thomas Ittyera comments ”PlanetAikon sees the GrowVC community as important & complimentary for the next stage in the lifecycle of startups incubated within our community. We are happy to participate & partner with GrowVC in making this initiative a success.”

The API can be used for many different services and applications, for example: 1) other web services can use Grow VC functionality and transfer data to and from the Grow VC platform, 2) mobile and social media applications can offer crowdfunding and startup community functionality, and 3) Grow VC specific applications can help startups and investors in the investment process and portfolio management.

“The iPhone app was the first application that utilized this API. Now we are expecting to see many more applications, for example, other mobile apps and Facebook applications. We also see that 3rd parties can develop applications to analyze startup data and make investment recommendations, or they can link their existing startup services and communities to our service to implement an investment service”, comments Grow VC CEO Valto Loikkanen. “In the networked society success is achieved by working as a part of networks. Grow VC wants to develop one important part for startup and investor networks and work together with other parties. This API is one important part of this evolution. And we will soon publish other important components to enable Grow VC to become a part of all startup and investor networks.”

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Start of November, we will reserve time for our extended community in select cities in the US. We plan to stay on the East and West Coast and focus on hubs where we’ve got many stakeholders from our community. Naturally we are always happy to meet up outside these dates wherever you may be, but now we’re clearing our schedule for the benefit our extended network.

If you are interested in meeting up, there are opportunities for sit-downs and speaking engagements in the following regions:

• New York from 1 – 4 November
• South California and Los Angeles 4 – 6 November
• San Francisco Bay Area 6 – 12 November

During these times and places, we will reserve our time for exploring new opportunities and exploring mutual value between us and like-minded individuals and organizations. You can get in touch with us for opportunities at markus@growvc.com and we can set something up!

The US is a high priority for us as the market evolves. Recent months have been revolutionary for this field and there is a lot going on with the regulation in the US as well. Kris from our team shared his insights on the matter on our blog and elaborated on the topical discussion. We are excited for the development of this entrepreneurial nation and realize our mission to support it to the fullest. We are actively involved with various organizations and actors in the field, whom we support in bringing this market to life and re-invigorating the economy.

As the Networks program is publicly launched before the start of November, we want to reach out to our partners and stakeholders in select cities in the US. The Networks program is at the top of our agenda, as third parties may utilize the networks functionality for a variety of different applications. It can be seen as the cornerstone of deeper cooperation as well, by incorporating the platform to partners operations, it creates many opportunities between us and our partners.

With the progress this fall, we will also be opening a new funding round for Grow VC itself. If you have been following and want to join our journey, then send us a message and we can schedule a sit down. You can also sign up here to be kept in the loop.

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Look at your entrepreneurs and startup founding idols across the world. They are all oddballs in one aspect or another. What’s the commonality between them – they don’t really seem to care what others think.

Entrepreneurs will go through a variety of life-changing experiences setting up their businesses and breathing life into their vision until it transcends themselves as people. You can call it perseverance or hardheadedness, but bringing a vision to life requires a lot of guts and edge. That spark will make entrepreneurs stick out like a sore thumb in many situations.

Look at what artifacts and cultures they might promote or utilize, even those will distinctly vary from what some might find orthodox. But most of the time they are noticeable in their own appearance and activity, even to the extent to being hard to ignore. And ask any entrepreneur, that is a good thing!

The thing about pioneering new markets and building things that are not yet invented, following your passion will often lead to such extreme focus, that many things fall secondary to that focus. Entrepreneurs are not always the happy go lucky guys and girls, they can push and shove, enforce that focus until they seem borderline stubborn, as they will relentlessly follow what they believe in. Because they know what they are after and most of the times they will have a hunch of how they will get there. Or to put it another way, they will be aware of what doesn’t get them closer to their mission.

As an entrepreneur, you may find yourself sticking out in a crowd, be it because you don’t converge to the uniformity of the crowd or some more tangible reason, like you’re wearing two different shoes as you had to rush out the door after a few hours sleep last night. You will have to learn to excuse yourself, but also excuse others in the same position and attribute such folly to the simple fact that focus should triumph over menial errors. With various responsibilities and tasks, the alternative cost of performing a menial task to par might just be too high.

Focus is not always such a positive word. With scaling operations you will have to say no to such interesting cases, that are not relevant to you right now and you will have to ignore many interesting people, that are just not relevant to where you want to go. That’s the downside, but the upside is you will continue to make strides on your path to where you want to be. You will have to learn to bear the downsides of the proper focus, in order to be able to enjoy the continued success of it.

Iterative thinking and trial and error might also lead to some misfortunate embarrassments. But as long as you are making progress on the right path, why should you care about an embarrassment or two?

At the end of the day, ask yourself what is most important to you as an entrepreneur? If you focus all your efforts on that one path, and you forget a thing or two here and there, at least you know where your time is spent.

“I started a company in a country I’ve never been to, in an industry I’ve never worked in, making technology that’s never been built before in the biggest financial crisis for 100 years.”

– Nick Christy

We talked with Nick Christy, the founder and CEO of Cintep. Cintep has gone all the way from setting up with many challenges, to joining Grow VC and successfully raising nearly $100 000 via crowdfunding, to winning nearly $700 000 in the Green Challenge this year. Nick joins us in our podcast to talk about how he got here and what the path has been like so far.

Listen to the episode for Nick’s story, for how he utilized crowdfunding and raised a seed round, how he manages his relationship with the crowd investors and what that relationship is like. You’ll also hear about the hustle behind the entrepreneur, and the smarts of making it all a reality.

Listen to the episode on iTunes or directly here (“save as” for mp3 version)

Here is the link to the Green Challenge 2011 award ceremony, where Nick and his team are awarded the grand prize.

Are you passionate about creating user-friendly, efficient, and memorable web applications? Do you want to work in a customer driven environment? Enjoying creating experiences for thousands of users across many countries? Do you have an entrepreneurial spirit and genuinely want to be part of building the legacy of how startup companies are build and funded in the future? If so, we have the job for you! Grow VC is looking for talented and driven UX designers to join our growing global team.

The candidate must have excellent skills at articulating a problem, clearly documenting the solution in visual and written form, and at explaining the reasoning behind the design decisions in the solution.

Key Tasks and Responsibilities

+ Use qualitative and quantitative research techniques to review website performance
+ Design highly interactive user experiences in web and mobile applications
+ Develop scenarios, flow diagrams, conceptual diagrams, user journeys and wireframes
+ Conduct usability tests and expert reviews
+ Devise website architectures and capture them through site maps and process flows
+ Producing and maintaining user-interface and online experience specifications that drive revenue and delight consumers
+ Other duties as assigne

Required Knowledge and Experience

+ 3 plus years experience as a user experience designer, interaction designer, UI designer, or similar role
+ Fluency in best practices for web-based or mobile-based information architecture and design
+ Strong knowledge of usability principles and techniques
+ Excellent communication, presentation, and interpersonal skills
+ Experience working in a collaborative team
+ Proficient using design tools such as those in the Adobe Creative Suite

Apply here

Why do we say entrepreneurial?

Working with us is much like being a core part of an open source project, but you actually earn ownership in Grow VC from what you are building together with the rest of our team. In fact all our global team are working with this model, where all of us are committed to building this venture and creating something monumental.

Along the way, you will learn a lot about how startups are built and funded, what it takes to build a global venture and make meaningful connections. Being part of our team, we are naturally glad to help each other out now and in the future.

It’s possible to work remotely and part time, as long as the average hours per week are productive and purposeful for both us and you (over 15 hours per week).

If you have what it takes and are interested to build the future of startup funding, make your bid and / or send a message and we will send you more details. Grow VC also works with partner organizations in our development, for example software companies. For company partners of various sizes, that see the potential in what we are building, this model provides a way in to diversify the portfolio and operations, and naturally being part of building a global venture. For us, our partners are a core part of our team and have a real interest and stake in building the global network and community that is Grow VC.

[updated the picture on 25.01.2012]

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In a recent post on the importance of not only product, but personality, I started thinking of how it translates to the overall activity of a startup. All business graduates and MBA’s are quickly fluent in five dollar words such as mission, strategy and vision – but what do these mean to the average Joe who’s interested in your product?

The average Joe will not care about the growth curves and EBITDA of your startup business, despite how interesting you might think they are. All they might care about is the product itself that you’re selling, especially how it compares to other products and solutions in the market. As a fledgling startup you might not have what it takes to compete on price and scale, maybe you’ll compete on unique selling points, but this is where you can have your vision play a part in the way your product is perceived.

When it comes to wrapping your product in a great exterior, the story and vision behind the product can be a great addition. Users and customers will not necessarily remember to mention the product that did what it was said to do, but look at how vastly the stories behind the revolutionary brands are spun and how they echo through large groups of people. It’s the story that is passed on from person to person, not the functional product that did not disappoint.

How do you then craft yourself such a message? It’s easy. Having gone through the ups and downs of startups, there must be something that keeps you passionate about what you’re doing through sleet and storm. Find that core mission you are after and find a way to articulate it to your audience. Make them see the passion and the grand vision behind those EBITDA’s and growth projections. Show them the impact of what you’re doing and involve them in your story. Make them part of your future and give them something worth sharing with their networks.

Indeed there are many five dollar words that prove meaningless to ordinary people, but ultimately even many of these can be seen as tools to place your solution in a grander scheme of things. You can translate your product into something more than just a single product, to a part of a larger puzzle that will have a much larger impact on life as we know it. Employ the five dollar words to work for the product itself.

Average Joe’s might not care about your product or even your startup, but make Joe feel like he’s doing his part in the greater vision, then you’re onto something.

Listen to the podcast here(save as for mp3 version).

Helen is an expert in the mobile space, but only recently stumbled upon this hidden layer in the world. We talk about accessibility in general, why it’s invisible for many people and how it can be a truly lucrative market for apps developers and other entrepreneurs to keep in mind. For one, Helen says we like to think of it as a small niche, but it is actually a very large market. We talk about the workshops, some examples of products that have made a huge impact, but also about the mentality in the community and how to approach this market segment.

The London and Belfast workshops were held in September, here are links to the workshop pages. London workshop and Belfast workshop.

“We see the student demographic as a cornerstone in building the future of entrepreneurship and venture capital”, says Grow VC Chairman Jouko Ahvenainen. “It’s the students that are going to lead value creation in the new era, it’s them that have to point us in the right direction and lead the change. It all starts at the grassroots,” Ahvenainen continues.

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The Community Partner program covers 70 campuses from California to New York, from Washington State to Florida. The program activates undergraduates, graduate students and other academic professionals from schools such as Berkeley, University of Southern California, University of Colorado Boulder, Georgetown, the University of Texas and dozens more. The network has a reach of over potentially 10 000 entrepreneurs, which represents the programs short term goal.

“Students have a pragmatic attitude, applying trial and error to business can serve as a valuable business instinct for building ventures for the future,” points out Grow VC CEO Valto Loikkanen. “Grow VC has always been about democratizing startup funding for when the ‘Facebook generation’ grows up, which makes students and student demographic a clear focus for building the future of investing and startups. It’s with the students that we want to build the future step by step,” Loikkanen emphasizes.

The Community Partners will be incentivized to grow their own personal network, within campuses but also with partners in the startup ecosystem. “The program aims to weave together a net of entrepreneurial campuses, to further boost getting the right initiatives and startups off the ground in the US for more job growth”, elaborates Mr. Ahvenainen. For student entrepreneurs the program offers tools to advance their own ventures and activities, but also engage in building a support infrastructure for student entrepreneurs.

“We are looking forward to seeing the drive and talent of this entrepreneurial group,” states Mr. Loikkanen. “For those that exceed, they can earn a good position within a growing entrepreneurial organization in the future,” he hints.

Image by s_falkow via Flickr

In a post on fueling innovation and entrepreneurship on the White House blog on September 9, U.S. Chief Technology Officer Aneesh Chopra and deputy director for policy Tom Kalil described the crowdfunding proposal from the White House:

America’s most innovative companies need equity capital to grow and hire faster. As part of the President’s Startup America initiative, the Administration will work to unlock this capital through smart regulatory changes that are consistent with investor protection. This means reducing the disproportionately high costs that smaller companies face when going public, as well as raising the cap on “mini” public offerings (Regulation A) from $5 million to $50 million. It also means responsibly allowing startups to raise money through “crowdfunding” – gathering many small-dollar investments that add up to as much as $1 million.” Right now, entrepreneurs like these bakers and these gadget-makers are already using crowdfunding platforms to raise hundreds of thousands of dollars in pure donations – imagine the possibilities if these small-dollar donors became investors with a stake in the venture.

Kalil explained more about the proposal in a call with reporters after the president’s speech. “We’re looking for ways to “reduce the regulatory burden on the ability of high growth entrepreneurs to raise capital and go public,” he said. “We’ll work with the SEC to develop a crowdfunding exemption for companies looking to raise $1 million dollars or less.”

Kalil responded to another question from a magazine editor, and said that they have observed the tremendous success of existing platforms, where small firms could raise money as grants.  Clearly, Grow VC and firms like it are already highly visible on the White House radar.

The interest in crowdfunding regulatory changes isn’t limited to the White House.  Following President Obama’s administration’s proposal, Republican Representative Patrick McHenry proposed legislation in Congress to relax SEC disclosure rules on public offerings by companies seeking crowdfunding.

Under his bill, an unlimited number of investors could contribute up to $5 million to crowdfunded companies, but could not individually contribute more than $10,000 or 10 percent of their annual incomes.

The bill would also exclude crowdfunding investors from the 499-shareholder cap for private companies and remove the ban on general solicitation that exists in many current exemptions.

“In an economic environment in which lending to job creators and entrepreneurs remains dismal, we must find new and modern means for capital formation to ignite our sputtering economy,” said McHenry at a House Oversight subcommittee hearing last week.  This hearing was thanks in large part to Sherwood Neiss, and StartupExemption.com, who have been working tirelessly over many months to realize this regulatory overhaul.

Meredith Cross, the director of corporation finance at the SEC, also spoke at the hearing, and indicated that while the SEC has not reached any conclusions about how, or if, to update its capital-raising rules for private companies, she indicated an exemption could provide “real benefits” to the economy and small business markets in particular.

“If it’s viewed as a tainted market where people go to fraudulently steal money that won’t help anyone,” she said. “I worry about websites popping up all over the place and disappearing and then the money is gone.”  Further, Cross echoed the administration’s policy direction, in indicating that the SEC is also reviewing the ban on general solicitation and the cap of 499 shareholders for private companies.  Clearly, the biggest concern is the potential for fraud, but again, StartupExemption.com has crafted a detailed and well thought-out framework for preventing fraud and abuse.

All that said, the administration proposal doesn’t yet address preemption of state law.  Preemption is a U.S. legal doctrine that forecloses the possibility of conflicting and onerous state laws.  Absent preemption, a federal crowdfunding exemption will be far less effectual, because entrepreneurs will still have to comply with state regulations in every state where they accept investments.  The StartupExemption.com framework, and Rep. McHenry’s bill do address preemption, in a similar way to SEC Rule 506.  While this imposes some additional requirements for state registration, it would alleviate most of the costs involved in multi-state compliance.  There does not seem to be any reason why the Obama administration will not get on board with McHenry’s well-crafted proposal.

Additionally, the administration proposal doesn’t yet discuss whether crowdfunding sites will be exempted from treatment as brokers or investment advisers.  Again, this is dealt with by McHenry’s bill, but may need some additional details to ensure that Grow VC and similar platforms can keep working to grow the economy, empower startups, and create meaningful and long last job growth.

We are confident that meaningful regulatory change will be finalized soon, but there are still roadblocks that can slow it down.  We encourage comment and participation, both at GrowVC.com, as well as StartupExemption.com, the Sustainable Economies Law Center, and Crowfundinglaw.com.  Thanks again, and please share your ideas to build on this extraordinary revolution!

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This is a guest post originally posted in Talks, in the Grow VC platform, by Jerry Reynolds the founder and CEO of Rentul. Follow the previous links to Jerry’s initiatives in the community.

Are you the kind of person who thinks the best strategy to woo a girl is to tell her how awesome and smart you are? If so, quit now while you’re ahead. You should approach VC and Angel Investors with the same tact as the most sensitive girl you could imagine. Let’s imagine for a moment there are two equally beautiful girls in a bar:

The first girl has guy after guy starring at her breasts, telling her how amazing he is, offering to buy her drinks, alluding to how “good of a time he could show her”; only for the girl to the right thing… take the free drink and walk away. This is a day in the life of a VC and Angel Investor, 100’s of companies a week selling why they’re the next big thing and they deserve a million dollar investment. Entrepreneurs that spend all that time writing a 30 page business proposal and leading with it… only to never hear from the investor.

The second girl standing with her friend from above, catches the attention of a guy across the room. He makes his way over, grabs her hand and says with a smile “let’s dance”; chemistry builds and the dancing continues after the bar shuts down. This is a day in the life of a dreaming VC and Angel Investor, a company that grabs their attention and sells itself on its merits through a relevant demo or prototype. Entrepreneurs leaving investors wanting more, more information, more access, more knowledge about the mad people behind this captivating project.

You see, you’re not awesome until your prototype is awesome. So here is some food for thought; like sensitive girls, you only get one chance to make a good first impression to VC and Angel Investors. Don’t ruin that chance by being a self absorbed a hole. Don’t ask for things based on a plan. Build something, make your project real, tangible and able to stand on its own merit. Chances are, if a company does, the people behind it will have plenty of opportunities to talk about themselves to a very interested set of ears. And who knows, you might even get the biggest prize of all, an investor kiss in the form of a fat investment.

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What predicts failure for early stage startups? What is pre-mature scaling and how can startups ensure they are on the right path? Listen to this episode of the Everyone Funding Startups podcast for tangible tips on how to avoid the common mistakes entrepreneurs face.

In this episode of the podcast, joining us is Bjoern Lasse Herrmann of Blackbox, whose behind the Startup Genome project, research on what constitutes a successful startup. The  research has tackled more than 10 000 startups till date and they have some significant findings for all startups to consider and learn from.

Listen to the episode here. (or save as to download mp3)

We talked with Bjoern the major points in why startups fail, about the research process and the relevant findings from the research. We also discussed what pre-mature scaling is and how it’s visible in the startups everyday life. We also touched on some of the most typical causes of self-destruction for startups and what looks so commonplace, but is often missed.

CINTEP makes showers that give you more water at the showerhead but use 70% less water, energy and money than a conventional shower. Check out their profile in the community!

The company has been on our radar for a long time now, ever since they joined our community and successfully utilized the crowd to acquire funds. It has been a long road to reach this point, but the driven team was triumphed again and again on their mission.

Being visionaries in several fields seems to definitely have paid off.

Also, a big round of applause to all those that joined the company early on. You’re all indeed on a great adventure now, having reached such a significant milestone.

Big congratulations from all of us at Grow VC! We suggest you all follow CINTEP in the community, to keep up with all the amazing things they are sure to accomplish!

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Remember that expression, the easiest way to run a marathon is to tell everyone you’re going to run a marathon? Well the same applies to a lot of business practice, some of it less intuitive than others. How are you going to attract the right people and partners, if they don’t know what you’re all about?

Startups and business in general can get increasingly complex and entrepreneurs have such big aspirations, that they might just overlook the very basics of getting the word out and building that early traction. There are countless of examples where you can benefit a lot by getting just a little out there to the public. You don’t need to be extravagant, but you’ll have to be audible.

Recruiting is a great example. In building your web presence and brand, you will soon have hundreds if not thousands following your progress on a daily basis. These people are passionate about what you’re doing, they are early adopters and they are there from the very beginning. Why not share who you would need to your team, who you are on the look out for? Odds are this group of pioneers will have just the right person, with the right drive to join you.

So you can’t pay them, who cares? Use the Work Investment model that we have created and give him a stake in the company, step by step. For them, getting involved early on can be vastly appealing if they’re already sold on your vision.

Expanding your operations to a new market? Great! Why not start getting the word out about your new expansion plans? The Internet is global and your stakeholders could be anywhere! Have you looked at your Google analytics and wondered where that one Argentinian or Israeli came from? Why not put your appeal to work for you and attract them as your local representation in new areas. Soon you might have a flock of Argentineans or Israelis on your Google analytics. Why not, you have all the tools at your disposal.

It’s easy to get lured into thinking that everything requires a grand plan and strategic implementation yada yada. The truth is that it’s often the small things that will have the biggest impact. At least all of them combined for a long time. Imagine all the little tweets and blog posts building up for several years, it starts to also create a history for where you’ve come from, but also generates a timeline of your progress.

So while the grand plan is indeed important, don’t let it distract you for the everyday actions that can take you one step closer to building your dream team or entering new markets. Share your thoughts, your aspirations and call on your followers in the global market. What have you got to lose?

Big things are great, but lots of small things will ultimately lead to great things.

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Everyone has multibillion dollar ideas in their head, but very rarely does anyone do anything about that idea.

Matt Crowe joined us on our podcast to talk about his brilliant idea, having started Ahhha.com and bringing others’ ideas to market by leveraging the crowd. Matt has been active with many companies in the past, as both an entrepreneur and an investor and shared some of his largest learnings from his past career and ventures. We talk about ideas and execution, the perils of sharing ideas and how the world is changing in the global economy.

Listen to the episode here (right click and save as to download mp3).

At a given moment, everyone has great ideas that could turn into multibillion dollar ventures. But rarely do people act on these ideas and seize the opportunity. We explore peoples thoughts about sharing ideas and the value of execution of these ideas.

“Sarosh brings strong experience in the traditional investment and business angel world, which is of great importance as we expand our network and solutions. Just last week President Obama’s American Job Act presented important steps to enable crowdfunding in a larger scale in the US. We see this is an important step to develop the startup funding market, and Grow VC will play a key role in this process”, states Grow VC Chairman and Co-founder Jouko Ahvenainen. “Mr. Kumana has extensive experience from many investment areas and companies, from global real estate investments to Sand Hill Angels in Silicon Valley. Grow VC wants to open startup investing to more people, not only to traditional business angels, Sarosh’s experience and insight will be very valuable for us in this work.” Ahvenainen continues.

Sarosh Kumana is a real estate entrepreneur and angel investor based in San Francisco, with over 25 years of startup and management experience. He founded and ran a leading California government foreclosure brokerage and a mortgage brokerage company for over 15 years. He is President of Pacific Capital Management, managing member of Junglee LLC, and also manages several other private investment vehicles. He is a member of Health Tech Capital, a limited partner in numerous VC funds, and active with Sand Hill Angels in Silicon Valley as a Board Director.

Sarosh has a major commitment to global sustainability. He sponsors and supports a number of educational projects in the US and around the world through the Foundation for a Sustainable Future. Locally, he is actively involved in civic, community and political affairs, particularly involving housing and good government issues. Sarosh serves on the Ambassador Council at Global Footprint Network, and on the Advisory Council of the Don Jones Center for Entrepreneurship at Tepper Business School, Carnegie Mellon University. Sarosh received a B.Com. from Sydenham College, University of Bombay, and an MBA from Carnegie-Mellon University.

“Crowdfunding, seed-stage investment represents the next step in the democratization and globalization of the startup investment ecosystem. GrowVC has come up with a platform that can be used to accomplish this. Developing safeguards for fledgling investors, complying with the legal requirements of multiple jurisdictions, cross-border and domestic systems of sharing entrepreneur data, and enabling crowdsourced due diligence with security for all parties, are among the challenges that GrowVC faces in achieving its vision, and I am pleased to contribute to the process”, Mr. Kumana commented on his nomination.

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The scarcity of time in an entrepreneurs life is the underpinning for the needed focus in cultivating a startup. Your time is the most valuable resource you have, which is why it’s the most important to allocate that time where it counts and not start a new space exploration each month. You will stretch yourself and your team too thin. Naturally some exploration is key in startups, but finding the right path to commit to is as important.

Being on the ‘right path’ doesn’t mean you won’t meet only hurdles and challenges, but being the entrepreneur you are, you will also stumble upon other genuinely lucrative opportunities. And it’s easy to get lured into chasing these new opportunities, all the while balancing the demands of the path you’ve chosen. Eventually you will have to weigh your options, and decide if you are on the right path? If you are, then you will ultimately have to pass on the golden opportunity and realize it is simply waiting for someone else.

We could revisit the discussion of the value of ideas, but in some cases it might make sense to switch your path to explore new opportunities. But it’s important to realize that new opportunities will in fact set you back a fair deal and ultimately require a lot of ground work and commitment, and what’s not to say you don’t find a new golden ticket one year into the future? If you’re seeing opportunities everywhere, can you control yourself or do you need a blindfold?

Talk to seasoned entrepreneurs or angel investors and they will tell you over and over again that focus is an essential quality of building a successful business. It doesn’t mean running around blindfolded, but it does entail seeing opportunities for what they can sometimes be, distractions.

Therefore once you’ve committed to your core path, as an entrepreneur you will have to ask yourself how each of these new challenges fit into that path and do they in fact serve your core mission? If the answers clearly no, then that’s great. Share the idea and let it flourish with someone else. Then simply walk away.

If however you’re convinced you have stumbled on to the next big idea, then make sure you are the right person to commit to executing it and not just shuffling the cards to appear busy. After all, you’re then back to square one with a new path ahead of you.

Image by Cayusa via Flickr

Ever since we set up Grow VC as an long term quest, as described by some, we’ve intuitively known the market would develop according to our vision. Some obviously did not share our belief, but we were adamant. We didn’t know when, which is often the case for new ventures in new markets, therefore we started building the foundation for a long term, sustainable venture early on.

However, we are pleased to discover that the day we’ve been waiting for is on the verge of becoming reality. Announced on the 8th of September: The President’s American Jobs Act: Fueling Innovation and Entrepreneurship has made their view on the future of micro finance public. And it is indeed a positive view. Below is an excerpt from the full announcement, which can be found on the White House blog.

As part of the President’s Startup America initiative, the Administration will work to unlock this capital through smart regulatory changes that are consistent with investor protection.  This means reducing the disproportionately high costs that smaller companies face when going public, as well as raising the cap on “mini” public offerings (Regulation A) from $5 million to $50 million.  It also means responsibly allowing startups to raise money through “crowdfunding” – gathering many small-dollar investments that add up to as much as $1 million.  Right now, entrepreneurs like these bakers and these gadget-makers are already using crowdfunding platforms to raise hundreds of thousands of dollars in pure donations – imagine the possibilities if these small-dollar donors became investors with a stake in the venture.

The US Government has always been venturesome in building the future and will continue to set the pace for other leaders of state even in this area of micro finance. Making this field easier to approach by ordinary people and limiting the unnecessary complexities will be a key element of building the field of micro finance and its future. The implications of this are vast, mainly that of economic growth and more diversified prosperity, but it also calls for us to act now, to realize what want to see for the future.

Join us on this journey to democratize startup funding, by running your own Startup Network utilizing the tools we have created. We are accepting pilot partners to the process and will roll it out on six continents shortly. What we’ve set out to do is happening and it’s happening right now. What are you waiting for, the future’s knocking on the door?

“Burton is determined to help Grow VC establish a leadership position in the global startup funding space and in related communities. He can especially help us in collaborating with many Silicon Valley and European startup programs”, states Grow VC Chairman and Co-founder Jouko Ahvenainen. Dr. Lee has exceptional experience in working with venture finance, entrepreneurship education and innovation programs around the world including in Ireland, Finland, Denmark, Germany, Japan, UK, Switzerland, Spain, Austria, Czech Republic, Eastern Europe, Colombia, Panama, Jamaica, Barbados and Guyana. “Burton is recognized around the world as an expert in building scalable startup companies, and in developing entrepreneurship and innovation ecosystems; I would say he represents a bridge between many countries’ startup programs and Silicon Valley” Ahvenainen continues.

Dr. Burton Lee PhD MBA, is a technology venture finance and innovation strategy professional with over 15-years senior management, entrepreneurship, angel investor and technical leadership experience in seed-stage investments. He has also worked with venture-backed startups; major global technology corporations (GE, HP, DaimlerChrysler); Prime Ministers and US presidential campaigns; science, technology, innovation and economic development agencies (NSF, NIH, European Commission, NASA) and leading research universities.

Dr Lee’s management and entrepreneurship expertise includes a diverse track record in new venture investment, technology startup mentoring and operations, and innovation process management, including technology commercialization, corporate development, strategy and strategic alliances, federal and commercial business development and national science, technology and innovation policy. His areas of technical expertise include software (Web 2.0, Internet, mobile, cloud computing, Big Data, enterprise software), cleantech, bluetech (water-related innovation), nanotechnology, aerospace, transportation systems, and medical devices.

Following his nomination, Dr. Lee offered the following comments: “I am honored and delighted to receive this invitation to join the GrowVC executive team. Crowdfunding platforms, business models and communities are poised to make major breakthroughs in creating new paradigms – and improved access to risk capital – for pre-seed and seed stage startup investment in the next few years. I look forward to working closely with Jouko and Valto, and the rest of our executive, operations and legal team, to position GrowVC as a clear leader in this emerging segment of the global venture finance marketplace.”

Grow VC will announce another high profile advisor in the near future and also publish other significant achievements.

The Chinese market is indeed highly appealing from many points of view, from the growth of the market and the middle class, therefore the demand for the luxury market. But this is further living proof of long term investments, outside of what many would call the comfort zone. The world is changing at a rapid pace, and the most interesting investment opportunities are no longer down the road.

Affinity China is developing an exclusive luxury network for the Chinese market, providing luxury and lifestyle experiences for their members. You can find the full brief and announcement from Affinity China here.

According to Affinity China, the luxury market in China grew to over $26 Billion, which makes it a highly lucrative for their business model. Affinity China also released today a video describing this emerging market. You can view this video below. The world is indeed changing – are you ready?

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There is no denying that the mecca for startups, venture capital and angel investing, has long been Silicon Valley. The whole startup world knows this. But the smartest people in the Valley already know that a lot is happening outside the Valley and outside the US for that matter.

People like Dave McClure, founder of 500 Startups that organizes “Geeks On A Plane“, tour different parts of the global startup ecosystem and have made it a habit to make sure there is a group of SV people traveling different parts of the world to learn how the startup ecosystems are developing. All the while networking with like-minded entrepreneurial people in a travel setting, outside the usual day to day. Being taken out of ones comfort zone might even create longer lasting relationships than usual.

Also SV being the Mecca that it is, makes SV people warmly welcome around the globe, to share their views and latest startup Valley tricks. Those living and working on their startups outside the valley, this is just a temporary motivational and knowledge boost they get. For traveling geeks, after the travel there is a stretched out inbox waiting to explode and a lot of stuff to do, so pretty fast, those experiences and people met on travels will start to go unnoticed by the pure amount of own local work that needs to be taken care of.

The most common solution for developing the relationship beyond this encounter is the “go to Silicon Valley” approach. While that can work for some, it does not work for everyone and most definitely does not work for those trying to build and develop their own local ecosystems.

Many cities in the US outside Silicon Valley have the same exact issue as global cities around the US. Smart people like Paige Craig, angel investor from Sacramento evaluated his options and made a decision to not go to Silicon Valley to build his Angel investor profile, but instead decided to stay in Southern California and make that “his territory” to work on. As active as the SV community is, there is also a lot of noise, extreme competition for resources of all kinds and many people in the ecosystem that are looking to take advantage of those coming from outside the Valley. The shining beacon of success can lure one and another to the Valley ecosystem.

Getting back to the topic, there is no one solution that works for building a startup or to become a successful investor that gets access to good deals. There is just hard work and smart choices to be made depending on what is the best approach in each situation. The smartest people from the Valley know this very well and beyond just visiting other places they are actively engaging, building their networks and doing actual investments in companies beyond their own neighborhoods, regardless of what that neighborhood is, Silicon Valley or some other place.

The only simple fact that remains is that the real money, that originates from customers exists outside of any single city and that’s where the focus of the business needs to be. And for everyone on the globe the distance to the global market is the same, about two feet from their nose to the closest screen with access to the Internet. That is what ”global” is. It’s not what was described as “export” business in the old world or “going international”.  It’s none of those things. It’s the Internet and it’s global by nature.

When we launched the new version of the site, free and with new functionality in mid July, that was a huge hit. We’ve seen our metrics soar and received a lot of positive feedback. We’re also launching our ‘Networks‘ program with dozens of pilot partners and couldn’t be more excited about the fall. We’ve got some great things lined up for our community as we continue this quest to democratize startup funding!

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We have also set our eyes on the next target of 100,000 members. And we will reach that faster than the first 10,000 as we have the support of a strong community already in place. We hope you join us in celebrating that milestone in the future!

Our next big leap with the web site is the “Networks Model“, which means that in principle anyone can set up a startup network within our service, that brings value to their operations. We have over 30 interested pilot networks that we will bring this feature to market with and we believe it’s a game changer!

Want to get your own Grow VC Network, sign up here!

At the same time we are developing strategic cooperation models, for example working with funds and other types of investors in the financial market. We already have discussions in several countries, with pilot models in place, where local investors and funds would like to work with Grow VC. Especially with the turmoil in the traditional finance sector, it’s time to re-shape the market!

Now is the time to get involved if you see the future the same way we do. You can get involved by running your own network, partnering with Grow VC or joining our team for a variety of activities. There’s no better way to predict the future, than to create it.

On behalf of the entire Grow VC team; Thank you for your support so far! Here’s looking at the future!

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Get the podcast here (right click and “save as” for mp3 version)

In this episode we wanted to share some insight into what’s going on with Grow VC, in the form of a short podcast. The episode itself is straight-forward and straight to the point. Listen to the podcast for information on:

• The platform update in July and the reception
• Networks Pilot Program – how to get involved?
• How the finacial crisis plays into our mission
• Update from our key markets
• What we’re looking for to our team and our partners

They’ve made great strides and we’re glad to see it rewarded, as CINTEP has been selected as a finalist for the 2011 Green Challenge!

CINTEP makes showers that give you more water at the showerhead but use 70% less water, energy and money than a conventional shower. Check out their profile in the community!

Nick and his team will be in Amsterdam for the event on the 14 and 15 September and plan to continue their trip to the UK afterward. Make sure you book your meeting with the team ahead of time, as they are sure to be swamped with all the buzz around them!

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This post comes from ERP Market Analyst Derek Singleton of Software Advice. To view the full article, visit their blog at It’s Not About the Web Browser.

Want to submit a guest post? Do so here.

Most people tapped into the enterprise software community know that SaaS is the hot new thing – VC’s sure have dumped boat loads of money into the cloud computing phenomenon. And for good reason, the SaaS business model and approach to software completely changes the dynamic of enterprise software.

Much attention around cloud computing has focused on the innovation of a Web-based architecture. In the race to compete against SaaS companies, many legacy vendors with older client/server offerings have evolved their technology to offer Web-based deployment.

But the innovation of SaaS isn’t just about Web access to software. I can think of five other reasons that SaaS is disrupting the traditional in-house IT market:

1. Cloud Companies Attract Hot Talent - Highly talented people like to go where they feel appreciated and think they can make a difference. In addition to providing the opportunity to work for a small company and have your ideas implemented, SaaS companies have a culture innovation and a mission to grow.
2. Multi-Tenancy Simplifies Development - Building on an multi-tenet architecture makes the development and deployment of software much faster and easier. Where it might have taken a couple of years for legacy vendors to get all their customers to convert to a new version of software, SaaS is able to do it in a day.
3. SaaS Makes Buying Software Easier - Purchasing enterprise software is known for being a difficult process that’s accompanied by complex pricing schemes. SaaS providers eliminate most of that by publishing their prices, allowing credit-card purchasing, and offering free trial downloads to interested buyers.
4. The User Experience is an Obsession - The user experience takes center stage in the SaaS development model, after functionality of course. These companies have learned their user experience lessons from growing up with the Web, and they seek to make their enterprise software experience similar to searching through Google or using Amazon.
5. Younger Employees Get the Web - Many of the employees of SaaS companies grew up with the Internet. As a result, they’re familiar with the way the Web works and understand how to use it for sales and marketing. They aggressively pursue Web marketing tools such as SEM, SEO, and lead generation. Since more buyers are flocking to the Web for information, SaaS companies are in the right place at the right time.

The innovation of Web access is certainly a point worth commenting on, but it’s not the only thing that’s disrupting enterprise software as we know it. Of course, this is just my opinion. What are your thoughts?

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Grow VC is looking for a driven, creative host who is all about networking and growing their professional network. The host would be in an integral part of building Grow VC’s brand, but also engaging industry leaders in discussion.

The role itself will initially be to host and take responsibility for the podcast, where the aim is to build a longer term role in the organization itself with new challenges and opportunities. The host can be from a wide range of backgrounds, yet native English is mandatory. Preference is given to creative backgrounds, interest in media and new age communication, as well as naturally entrepreneurship, investing and all fields revolving around innovation.

Apply for the role here

Know someone who would be perfect for this role? Share this with them!

Below is more information on the Grow VC “Everyone Funding Startups” podcast:

The Grow VC ”Everyone Funding Startups” Podcast covers subjects in the funding market and entrepreneurship, with a focus on entrepreneurs, startup funding, micro finance, angel investing, venture capital and global developments. Episodes include discussants, often one guest is invited to join the discussion. The point of which is to provide valuable insight into relevant fields for entrepreneurs, but also early stage investors. Discussants include successful entrepreneurs, angel investors, venture capitalists, government representatives, startup incubators etc. The format of the discussion is free in nature and the discussants take an active role in the discussion.

The audience can be seen to include listeners from close to 200 countries, with the largest demographics of US and Europe based entrepreneurs and early stage investors. Episodes are published via iTunes, on the Grow VC blog and various podcast services on the web.

You can find the podcast here on iTunes

And for those curious, it’s not lightly I take this step back from the podcast. The podcast has been a great journey so far, since it’s inception and has grown to serve tens of thousands of listeners. However with this growth it’s time for someone else to hone it further, by being able to put more focus and a personal flare on the show – Markus

Steve Jobs held the now famous speech and TV ad in 1983, how incumbent companies always struggle to adopt new innovations and technologies.  Herb Kelleher (Southwest Airlines) and Michael O’Leary (Ryanair) have fought against local monopolies and authorities in the aviation industry and their work has had an important impact in enabling practically anyone to fly today. When e-commerce started to emerge Borders didn’t see online book sales as important, but continued to expand its store chain e.g. to the UK and Singapore, and now they are almost bankrupt and Amazon dominates book sales and many other categories as well.

In the finance sector we have seen the first wave of the Internet revolution. It has mainly consisted of the offer of new access channels to traditional services. You can wire money, pay bills and even buy fund shares online. But it hasn’t yet had too much impact on the traditional structures and business models. Fund management fees are still high, it is expensive and slow to transfer money cross borders and investment banks take huge fees. In 2008 many financial institutions were forced to start streamlining their operations, but there is still a lot of work to do. And we still await the real breakthrough of new models. For many ordinary people this means that they must pay high fees for banking services, services are often poor, investment instruments’ real ROI is low or negative, and many services are still very old fashioned, for example how to invest globally or transfer money.

There are several early phase companies in the finance sector that develop the new web 2.0 era (or whatever the right name is). Why can’t it be as easy as with PayPal to open a bank account and transfer money? Why don’t we have a lot of direct investment markets on the Internet without high management fees? Why couldn’t we build an investment group online with our friends and work like an e-fund and diversify our investments?

Often the answer is, because the regulators and incumbent finance companies want to keep the old models and protect them. They say it is better and safer for ordinary people; they don’t trust that ordinary people actually can be responsible or smart. It was the same before the French revolution, the establishment saw democracy as dangerous when ordinary people could not be trusted to make the right decisions. IBM didn’t believe ordinary people would ever need a computer, they thought a few computers for professionals is enough. And aviation authorities supported local monopolies and stated that state-owned-airlines offer enough options and are safer.

We are now starting to see this change coming to the finance sector. The traditional finance sector is really struggling. Yet it is not only about money, it is also about how people perceive banks, funds and finance consultants. People are losing their trust. Crowd funding plays a part in this development. The foundation is constantly being built, but the revolution doesn’t happen over night. We as a community, have got a good start and step by step also regulators and traditional finance companies start to understand our journey. It is important to develop the startup funding market to work well. But at the same time, it is as important that the investment market works well.

People need cost effective solutions to diversify their portfolios and instruments. Aren’t they also entitled to a decent ROI? The healthy investment market is a key element of each economy and while the old solutions are not sustainable, that’s why we want to work with all of you to build the future. You can start today by making a micro investment into a startup in Grow VC.

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“Never Stop Producing“, says Mixergy founder Andrew Warner. Andrew’s set up Mixergy.com, the service he wish he had running his own first company. With Mixergy, Andrew’s interviewed 600 startup founders and joins us to share highlights and learning points from his and others’ experiences.

Listen to the episode for Andrews story, but also the stories of hundreds. We also touched on many great points, like how Andrews investors missed out and how his passion for business helped him grow his business. Also get an insight into what are the topics that surface most often when talking with founders and what a “real” entrepreneur is, and why they should be celebrated as the true stars they are.

Listen to the episode here. 

Andrew also shares the story of his own company, from trying to get investors and even picking up a “Funding For Dummies” book to help him out, but to no avail. Listen to the episode for why his investors were undoubtedly kicking themselves years after and what he wish they had seen in him.

Image by TheBazile via Flickr

Recently left and right, everyone’s founding a startup! But so many are using having a startup and entrepreneurship in a synonymous way for having an idea or experimenting a little bit. Are you sure you even have a startup?

One way to separate a real startup from a glorified idea, is to ask yourself, is the entrepreneur behind the startup committed to seeing the startup through the next two to three years, even if it means going through the rubble? And further, specifically if it means going through the rubble.

Ideas alone are worthless and no one is going to jump in on an idea alone. Are you cut out for the journey, even if it means you won’t close that first million round of venture capital, or even if your idea doesn’t make it to the top of the App Store? Even if no one believes what you’re doing? Will you give up?

Naturally you’ll pivot and you’ll adapt, but you cannot rely on success early on to be able to make it work. Sure in some fields you’ll get usable metrics and statistics before others, but most of the time you’ll have to follow through on what you’ve set out to do. At least until you arrive at some tangible validation. How do you know you’re not crazy? How do you know the vision you’re chasing will come true? The answer is, you really don’t know. Good news is, no one else does either.

Every so often you hear an entrepreneur talk about their grand startup and bringing it to market in a big way. Then they stumble on the phrase, ‘I’ll do this IF..‘. What this most often translates to in reality is, ‘I won’t even start without this and that‘. This often refers to a stroke of luck of some sort, be it in the shape of funding or what not. If you aren’t going to breathe life into your startup and make it ignite into your full vision, how can you expect others to do so? How can you expect someone to trust you with venture capital or any sort of capital for that matter, if you’re not willing to see it through? Do you think there are no obstacles in a successful startup?

There’s a falsehood associated to how startups emerge and grow into widely successful companies and the truth of the matter is that there is no “IF” in the formula and sure, luck does play a (often large) role. But at the end of the day startups don’t happen – startups are made.

If you’re dreaming of your large Series A with your startup still in planning mode, without having made a commitment to seeing it through, think again. Startups aren’t daydreams, startups are as real as it gets. They are looking to be built from the ground up and need someone to step in, and take charge. And if you’re not ready to get real with the startup and kick it into action, it’s not a startup at all – it’s just a glorified daydream at best.

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Much like the Internet bubble cleaned up the streets at the end of the 90′s, the financial crisis will do for the current landscape. Hooray for the financial crisis, the world should learn to live like startups!

The current environment for employees can look incredibly daunting, with a high percentage of university graduates out of work, competition is also fierce for the few slots that remain. This can have a large impact even in the longer time span of individuals careers, so why not take matters into your own hands and step up your game in the startup space? Not everyone has to found startups, luckily joining them early on can be just as exciting an adventure!

No longer do we live in an industrial age, where churning excess products into the world is the source of value. The world has changed with software companies taking over markets and representing the most influential and value-adding companies in several different industries across the board. For the recent turmoil in the markets, we can expect at least as much positive to emerge.

There is no better time to start a startup, than now. We actually stated this over a year back and many are already reaping the rewards of the great landscape, as startup companies immediately focus on creating value without the distractions that may come from an environment of excess. Times like these create the most healthy startups and on the other hand, the unhealthy startups wind down quickly or end up not being started. Customer validation is key in an environment such as this one, but with less distractions focusing on your customers is also easier.

There will be a day when investors are no longer panic-struck, when customer spending brings optimism to the market. Having gone through the rubble in the market and emerged with your value creating, sustainable startup, that day will be waiting for what you started building early on. And those customers that you developed with early on will know your startup and be there to support you when it goes big.

The effect of the global development on a larger scale are also incredible. What we’re seeing on a global level, in the US, South America, Europe, Africa and all over Asia, is the new found focus on entrepreneurship. Startups are the driving force of large economies and present a great opportunity at the diversification of risk, from the larger stakeholder view. The impact of a diversified economy, especially as demonstrated in today’s landscape is enormous, especially judging from the wealth it can create in terms of employment, efficient use of resources and updated models for the current day and age.

The global economy and supporting institutions has to take a long hard look in the mirror and frankly, lose a pound or two of excess fat. The global economy has to become lean and able to foster the innovation that’s needed to avoid institutional meltdowns of the future.

It’s time to look at the financial crisis from a new perspective and forget the outdated models that are failing to meet the demands of tomorrow. It’s time to take responsibility of our futures and act, rather than only react to what’s spat in your face. If you don’t decide for yourself, someone else will.

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A recent white paper on Impact Investing by the The European Trade Association for Business Angels and Angel Networks, EBAN has researched trends in how individuals invest. In this podcast we touch on the research, but also research the EBAN conducts in general with Brigitte Baumann President of the EBAN.

Listen to the episode here.

Here is an excerpt from the publication:

The impact investing market is in its nascent stage and is growing. However, a clear ecosystem is not yet defined and therefore there is room for new entrants and new practices. The EBAN White Paper “European Early Stage Impact Investing” is a call to  support the growth, formalisation and integration of impact investing.

Further we discuss the potential and importance of Impact Investing, as well as some experiences from Brigitte who herself is an active, hands on angel investor.

In this day, we also had to touch on the economy. However, from both our observations we are optimistic of the direction of the world, not the belittle the challenges in the future. Listen to this and more on the podcast!

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This post is inspired by a conversation with an ambitious entrepreneur in New York, who’s focused on building his startup into a legacy. Not for an exit.

Talking to entrepreneurs on a global level, from all over the world, you acquire a privileged point of view. You start to spot that entrepreneurs are similar on many levels, they have many of the same challenges and they may solve them similarly or not. What you also start to spot is the stark contrasts. And the biggest ones exist between Silicon Valley and the rest of the world, “non Silicon Valley”.

What’s distinct in the Valley, is the abundance of Venture Capital, at least as compared to many other places. It is after all the best functioning ecosystem for Venture Capital. However, in that notion one can’t help wondering whether or not the ecosystem is designed by and for the VC’s? Some may argue that it’s a trivial point to be made, but rest assured that it flows into the behavior of the startup companies and the entrepreneurs mentality.

No where else do you hear entrepreneurs focus so much attention and effort on the exit itself. As if it’s some sort of Valhalla of startups, where each startup ends up in eternal glory. And at the end of the day it actually defeat’s its purpose, by acting and planning for your company to be sold from day one. If all goes well, startups are bought and not sold. Building your startup to be sold, may entail a steep degrade in its inherent value. Why are you building it to be sold? What’s wrong with your company, if you want to get rid of it so badly?

The Silicon Valley mindset has got a huge influence all over the world and entrepreneurs flock like pilgrims to California. Silicon Valley has a unique ecosystem in terms of the Venture Capital community that exists there. Yet also because of that, the market is quite crowded and if you’re looking to build a truly huge company, it might even be better to step outside the bubble. There are countless places where you might get better bang for your buck, farther along faster or any of the above. What’s sure is, you won’t be any worse off by considering it.

It was such a refreshing conversation where an entrepreneur planted his company’s future far into the next generations, where the grandkids could enjoy what the company had built. Maybe it was such a refreshing discussion, after the countless discussions that focus on VC round this, VC round that and eventually the exit. Indeed, he was not part of the Silicon Valley crowd.

Whenever you hear entrepreneurs relentlessly talk about the exit, like it’s the reason they wake up in the morning and the reason to founding their companies, you start thinking is this truly what they wanted founding the company? Is this the grand vision behind the company? Or are they in fact their investors puppets?

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We’ve all felt it and anyone that’s turned on the news has seen it; the global economies are in panic and all for good reasons. Debt levels are increasing burdens and un-employment can have long term ramifications. But in this ramble, let’s try not to spread that panic or speculate further, but rather ask ourselves, is this really what we want from our future? And if this isn’t the way, what is?

The global economic crisis is evidence that the models that once served a purpose, are no longer those that will cater for the growth of tomorrow. The same is true for not just the companies and entrepreneurs, but also investors and average households, if there is no money to be made for others than speculators on the stock market, where should you place your savings? Some may argue traditional asset and holdings, for example real estate – but let’s be honest, the liquidity just isn’t there.

For the sake of our journey with building a globally viable asset class out of startup companies, what’s going on in the stock markets and the global economy is further validation for why we’re pursuing our vision.

Startup companies are becoming increasingly important for the global economy and not just startup companies, but an effective ecosystem that understands and caters to startup companies and more innovation. It’s all part of an educational process, wherein we understand the foundations of startups better and can provide for them, so that in the future they can provide for us. As the financial crisis has aptly demonstrated, we are all interlinked in the modern era. But this need not be a burden, rather a privilege. By creating this ecosystem that spans throughout the globe, we are not just creating more startups, but we’re creating more entrepreneurial mindsets around the world.

No longer can we afford to be short sighted, chasing profits and pursuing short term gains. The economy needs more growth and the tools we have in place are just not catering for our future. Startups on the other hand are increasingly being recognized as a source of innovation, employment and further economic growth. Isn’t it time we started creating new models that understand the future?

Ask yourself, does what you see on the news represent the future you wish to live?

An optical illusion

Entrepreneurs tend to have a misconception of successful entrepreneurs, which isn’t odd if you consider the amount of news items a regular week on the success of their peers. However there exists a strong illusion in the successes of other entrepreneurs, and more particularly of the proportion entrepreneurs and their success.

In the early days of research in entrepreneurship and any sort of business research focused on ‘those that succeed’, a lot of psychologists (not to pass the blame) went about creating vast and often logical lists of traits that ‘the fortunate’ ones possess. It took some decades, but eventually this research was more or less discredited by the silent cases of those that possessed all the right traits, yet not their peers success. This silent library was not celebrated and it was not studied, which created a bias toward imagining that the ‘fortunate ones’ had done something differently.

Many similarities exist between that research and the tooting of the successes of entrepreneurs in the news. Now, we’re all for good reading, but one should always bear in mind that it does not represent a proportionate cut of entrepreneurs. There are an abundance of entrepreneurs out there that went through the movements and did just the right tricks, but still have little to show for themselves. At this point some are probably thinking that they did not give their all or they didn’t have their heart in it – but that would be wrong. There are individuals that do the right things, all of them, but with no luck.

What’s the point of this miserable ramble of probabilities and the uncertain universe then? Well, very simply it’s to highlight the one trait that does tie together all the successful entrepreneurs. Because there is indeed one characteristic to unite all these cases – they did not give up. Argue if you will all your psychological findings from the 80′s onward to present day, but if you examine it with enough diligence and realism, you’ll find that at least this factor is present. But it’s by far not a guarantee.

Entrepreneurship is getting its much deserved place in the headlines and entrepreneurs are celebrated as our generations biggest heroes, which by all means they should be. However there are a lot of those that go unnoticed, because they do not represent ‘news’ to our standard. This is not to say they should be disregarded by other entrepreneurs.

It would be good to keep in mind, not only the 10 successful entrepreneurs, but also realize the 150 000 unsuccessful ones (so far, fingers crossed) that correspond to those 10. This is just a fictional numbers game, but it should serve as a point. Don’t believe all you read about fancy tricks that you should and should not do, qualities that you should and should not possess – at the end of the day entrepreneurship is simple; never give up.

Hi Folks!

As some of you regrettably noticed, the Grow VC server was unavailable for several hours between Sunday and Monday. This was due to severe weather conditions, which did not take well with the Amazon’s servers that host the web application in Europe.

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Since the very beginning of building Grow VC, we have taken precautions to make sure that all your activity in the platform is safe.
We want to assure you that we have taken every precaution to address this issue and preventing similar issues from happening.

We regret this inconvenience to our members.

Sincerely,

The Grow VC Team

In this podcast episode, we talked with Bogy Skowronski about New Connect, an early stage stock exchange for growth companies in Poland. Similar to AIM in the London Stock Exchange, New Connect has a drive to become a larger solution for a recognized problem in Europe, the access to growth capital. We also discussed the growth plans, development across Europe and how entrepreneurship in central and eastern Europe has developed.

We touched on how the New Connect platform has developed since it’s inception in 2007 and what trends are emerging in investments, but also what is needed for going forward.

Listen to the episode here.