Grow VC logo



Posts Tagged ‘Grow VC’

Grow VC affiliate model launched
Tuesday, February 9th, 2010
Google Buzz

As part of our software update today, we are excited to announce our affiliate model. The affiliate concept itself is no different to other affiliate marketing programs out there, but what makes our model unique is the way rewards can be calculated in our platform and the opportunities that can come with that.

Grow VC Affiliate Model

Grow VC affiliate model details:

  1. affiliate URL is used in a tweet or blog post that mentions Grow VC service
  2. startup founder finds Grow VC service via affiliates link and decides to register to our service
  3. later, founder decides to subscribe for startup profile in Grow VC to get funded
  4. startup becomes fully funded and goes after their market
  5. startup is successful and generates profit for investment they got from Grow VC (ROI),
  6. affiliate who’s link was used for startup to find Grow VC, is paid 1% of the Grow VC’s ownership ROI

This 1% is only calculated from the return on investment that Grow VC may get for it’s ownership and NOT from any other investments that may occur by other parties. That 1% from our investment profits may not sound like much, but think about being the affiliate in the next Google or Facebook and there is no limit on how many startups you an have linked to your affiliate ID.

As you can see from the details above, after we have launched our full featured service, Grow VC will also start doing direct investments to most interesting startups in the service. Full details will be announced on the 15th of this month.

How to get your affiliate URL

All you need to do is sign in (or register for your free account first, if you don’t have account yet). After signing in, go to your “account” -page (previously “settings”) and look for affiliate link section, on top of the right column, where you will be able to activate your personal URL and also see statistics of your affiliate URL’s usage. Details like how many times your link have been clicked and how many cookies have been served.

Any new user that clicks to your affiliate link, will come to Grow VC main page and is given a cookie that include your unique affiliate ID. If the visitor chooses to register to our service, their registration ID is then linked to your affiliate ID, and if that person then subscribes to create a startup profile, again their startup ID is linked to your affiliate ID.

Later on, we will list all of the startups that are connected to your affiliate ID in your “account” -page, under affiliate statistics, so that you know what startups have found their way to Grow VC using your affiliate link.

Using your affiliate link

You can use your affiliate link in your personal emails, twitter tweets, blog post, etc. when you mention Grow VC, but using it for spamming people in any way, is totally prohibited. In case of misuse, your affiliate ID will be suspended and all of your affiliate details will be removed, resulting the loss of previously earned connections.

Reblog this post [with Zemanta]
  • Share/Bookmark
Risk Assessment of Embedded Mobility Propositions
Wednesday, January 27th, 2010
Google Buzz

Today Jouko is giving a speach at the Informa Telecoms & Media’s Embedded  Connectivity conference in London. The conference is about bringing the entire ecosystem together to discuss the  prospects for incorporating connectivity into products and devices of the  future.

The conference will give operators and vendors  the chance to really understand how to deliver the benefits of connectivity to the wider technology industries as well as opening up limitless  possibilities for new consumer markets.

Below is Jouko’s presentation, where the topics include:

  • VC Market
  • Embedded connectivity solutions
  • HW and platform business
  • Web and mobile businesses
  • Go-to-market
  • Challenges of funding market
  • Mobile services funding
Reblog this post [with Zemanta]
  • Share/Bookmark
Future of Venture Capital
Saturday, January 23rd, 2010
Google Buzz
Silhouettes representing healthy, overweight, ...

Image via Wikipedia

Today I was reading one of my favorite VC blogs AVC by Fred Wilson about “The Venture Diet is Working“, where he says:

2010 will be an interesting year. If VC investments go back up to $25bn to $30bn per year, then the diet didn’t stick and we are back to an overfunded industry that will produce subpar returns on average.

If, on the other hand, the new normal is $15bn to $20bn per year, then the diet worked and we’ve scaled back the business to healthy levels.

This comment relates to he’s earlier post about the “Venture Capital Math Problem“, where he explains about the problem that – too much money will make the whole VC industry to under perform.

As this is one of the reasons we have started Grow VC, I wanted to point out that things are not the same everywhere. So here’s my take on the topic:

I think this is similar problem than it is with food. In some western countries there is too much food and problems that are associated with that, like obesity. Yet in many parts of the world, people are starving.

So if some markets in the world have too much money in VC, it does not mean there is too much money overall, it’s just wrongly distributed. I do understand that, there are also problems with having too much money per sector, so that nobody is getting good results, but that too is wrong distribution.

Early VC money should always be going towards new innovation and not to be “me too in the popular segment” – there are plenty of problems in the world for entrepreneurs to solve & VC’s to be successful.

If we think that “Four Years After Founding, Kiva Hits $100 Million In Microloans“, I feel that it’s a strong indication that entrepreneurship in all shape and sizes can be instrumental on reshaping our world for the better.

There is a big gap between what Kiva.org is doing and with these problems of having too much money in venture capital in some regions. For us this shows that there needs to be much better distribution, more transparency and more activity in this segment overall – and this is exactly where we are focusing our efforts.

Here’s my dialog with Fred, on the “Venture Capital Math problem” 8 months ago:

Me:

I think this just shows that money does not solve problems. The problem here is not too much money, but how it’s now distributed.

VC industry is starting to look like the newspaper industry ;) – better to wake up, the blogs are coming…

Fred:

What are the blogs of the VC business?Things like Y Combinator are great but they are feeding us even more opportunities so I see them as additive, Although I also see blogs as additive for the newspaper business if they’d just see themselves as curators and aggregators instead of content creators

Me:

I guess the closest thing to “blogs of VC industry” today are angel investors. But that’s for today. Also Y-combinator and the likes are great too and could be considered as “blogs of VC industry”. However their “next step” need to change away from just VC’s.

The fundamental change will become, when there are “platforms” for anyone to start a “blog for VC industry” and that’s what we are doing in www.growvc.com.

Overall, we feel that in long term the money will be spread to more potential start-ups and more of them will not go via IPO but just buy back of shares, mergers etc. with lower ROI. But that’s OK if the time for ROI is shorter and cost of management is lower.

So – be more direct, spread wider, lower the management cost, speed up the ROI cycle and you can accept lower ROI.

If you think about the structure of today, from where the VC money really comes from, you start to see the “big picture”. – basically it means that individuals like you and me pay for pensions funds etc. and these funds then invest to VC funds. VC’s then make investment decisions and “manage” the investments, all the way to take it public (hopefully). Basically just to sell it back to us…

When more people will start to understand this cycle because of more info and transparency online (if they are interested), people will not accept this structure. Because in the long run what matter is, if the companies in question sell what matters. And that is not a question of size.

Fred:

Got it
I hope this works
It would scale much better

Related to this topic, below is a very interesting speech given by Fred Wilson at talks@google. You need to spare an hour to look the whole video, but I feel it’s well worth it. Just have some popcorn & coke and relax.

What makes it interesting to me, is that those industries that are going to be disrupted by internet in the future, currently have same issues what Venture Capital does, yet for some reason those would not apply to VC industry.

Reblog this post [with Zemanta]
  • Share/Bookmark
Feature: Market trends
Friday, January 22nd, 2010
Google Buzz

While we are working hard to get our BIG core feature out really soon, I wanted to highlight one nice little feature in our service that we added in our previous updateThe Market Trends.

When the startup profile is listed in our service with related industries that the startup is working on, we can pull out real time information about what’s being said in twitter about those topics. – So those that are interested to learn more about what going on in each startups industry, will always have easy access to trending information.

Market Trends

Reblog this post [with Zemanta]
  • Share/Bookmark
Silicon Valley Venture Capitalist joins to Grow VC Advisory Board
Wednesday, December 16th, 2009
Google Buzz
It is my great pleasure to announce that Voytek Siewierski has joined to Grow VC Global Advisory board. Voytek is an Investment Partner at Mitsui & Co.Venture Partners, Inc., Silicon Valley Office. He is currently managing 12 portfolio companies for MCVP and has closed six deals during his 3 years tenure at MCVP. Before joining MCVP team Voytek was an Executive Director at NTT DoCoMo including 6 years in Japan and 3 years in the UK. After participating in the carrier’s IPO at Tokyo Stock Exchange he coordinated DoCoMo’s international technology partnerships including the partnership with Sun Microsystems that brought Java to mobile phones. Developed a number of successful value added mobile services with partners such as Walt Disney Corporation, Warner Brothers, CNN and others.
Voytek executed a number of international equity investments in cellular carriers in Europe and Asia and initiated a number of technology licensing projects between DoCoMo and mobile operators such as KPN Mobile in Holland, Telefonica in Spain, Boygues Telecom in France and KG Telecom in Taiwan. Between 2004 and 2006 he was in charge of all new business in Europe. His previous experience includes consulting and technology research in the United States and Europe. A visiting lecturer at the University of Oxford and judge in several technology awards programs, including Tech Pioneers of the World Economic Forum in Davos and Mobile Innovation Awards of the GSM Association. Holds M.A.L.D from the Fletcher School of Law and Diplomacy (Tufts University/Harvard). Graduate courses in IT and International Marketing at the Harvard Business School.
Voytek is a great addition to our advisory board, bringing an excellent reputation in the investment and business markets in Silicon Valley and Asia. He will give perspective and expertise from Silicon Valley, traditional VC investments, and very interesting Asian markets. Voytek is a person who is always open for new ideas and pragmatic to make successful business.
Voytek comments his new role: “New models are needed for seed investments and startup funding; especially solutions that make the whole startup ecosystem more global, effective and transparent. Grow VC is the most promising and innovate new model for early phase startup funding. Grow VC also helps traditional VC’s find better companies when they have got seed funding from the Grow VC community. Grow VC is an essential new element for the VC and Silicon Valley ecosystem.”

It is my great pleasure to announce that Voytek Siewierski has joined to Grow VC Global Advisory board. Voytek is an Investment Partner at Mitsui & Co.Venture Partners, Inc., Silicon Valley Office. He is currently managing 12 portfolio companies for MCVP and has closed six deals during his 3 years tenure at MCVP. Before joining MCVP team Voytek was an Executive Director at NTT DoCoMo including 6 years in Japan and 3 years in the UK. After participating in the carrier’s IPO at Tokyo Stock Exchange he coordinated DoCoMo’s international technology partnerships including the partnership with Sun Microsystems that brought Java to mobile phones. Developed a number of successful value added mobile services with partners such as Walt Disney Corporation, Warner Brothers, CNN and others.

Voytek-xsVoytek executed a number of international equity investments in cellular carriers in Europe and Asia and initiated a number of technology licensing projects between DoCoMo and mobile operators such as KPN Mobile in Holland, Telefonica in Spain, Boygues Telecom in France and KG Telecom in Taiwan. Between 2004 and 2006 he was in charge of all new business in Europe. His previous experience includes consulting and technology research in the United States and Europe. A visiting lecturer at the University of Oxford and judge in several technology awards programs, including Tech Pioneers of the World Economic Forum in Davos and Mobile Innovation Awards of the GSM Association. Holds M.A.L.D from the Fletcher School of Law and Diplomacy (Tufts University/Harvard). Graduate courses in IT and International Marketing at the Harvard Business School.

Voytek is a great addition to our advisory board, bringing an excellent reputation in the investment and business markets in Silicon Valley and Asia. He will give perspective and expertise from Silicon Valley, traditional VC investments, and very interesting Asian markets. Voytek is a person who is always open for new ideas and pragmatic to make successful business.

Voytek comments his new role: “New models are needed for seed investments and startup funding; especially solutions that make the whole startup ecosystem more global, effective and transparent. Grow VC is the most promising and innovate new model for early phase startup funding. Grow VC also helps traditional VC’s find better companies when they have got seed funding from the Grow VC community. Grow VC is an essential new element for the VC and Silicon Valley ecosystem.”

  • Share/Bookmark
Finance for Mobile and Internet Businesses event
Thursday, October 15th, 2009
Google Buzz

Innovation & GrowthToday we are at the Finance for Mobile and Internet Businesses event, that we organized together with the South East England Development Agency for promising start-ups and investors. This is just one of the examples of how we develop our cooperation with the local organizations that are helping start-ups grow.

Some of the main topics in our presentation today are:

  • Developing Global Internet Businesses – Challenges and opportunities
  • Web and mobile businesses: new retail business
  • Go-to-market
  • Challenges of funding market
  • Web and mobile services funding
  • Grow VC platform for Experts and funding – The first global concept
  • Grow VC Local Partner examples
  • Investment policy and our market position
  • Would you like to manage VC money?

Full presentation below

Finance for Mobile and
Internet Businesses
Reblog this post [with Zemanta]
  • Share/Bookmark
First service investment platform in the world: invest sweat equity globally
Sunday, October 4th, 2009
Google Buzz

Grow VC launched the service investment concept in this week. Grow VC is first global platform for service investment or “sweat equity” opportunities – so experts and investors can invest in startups using man-hours in addition to dollars, and startups can offer partial ownership in return. In practice it means that a startup can look, for example, a lawyer or PR professional and offer ownership to him or her. And experts can offer they services for ownership.

Sweat equity is nothing new. It has been typical for startups to attract people to do some work and also for board and advisor roles and offer them company shares. - What is new and unique is to have a global place to find the most suitable experts for a company and the best companies for each expert. If I set up a company in the UK, I might need an expert in the US and India. I can now enter my company details to the Grow VC services and indicate that I look for an expert with a specified profile in the US and India, and offer them 1% ownership. And experts can find globally companies that look for their services.

This is important for early phase companies and especially important in the current economic downturn. It is also important to have an open match-making service for this, otherwise companies and experts know only opportunities from their own networks. And it doesn’t always mean optimal fit, if you just take someone you happen to know. Web and mobile companies are very global nowadays, and they must find the best resources globally.

All you need to do to get started, is to register for free at Grow VC service.

This new feature is one important step for Grow VC to become the leading investment platform for startups globally. We continuously innovate new models for investments and funding. And in near future we can publish more new concepts. We also like to get your feedback and ideas. We are very interested to know, what kind of services could better help you to make investments or find funding.

Reblog this post [with Zemanta]
  • Share/Bookmark
Grow VC launches its public beta
Tuesday, September 29th, 2009
Google Buzz

29 September 2009 – Hong Kong and London – Grow VC, the global web service that enables transparent, easy early stage funding for web and mobile startups, has today launched its public beta.

New features in www.growvc.com include:

  • Open registration for any startup or investor, simply by visiting growvc.com – invitations are no longer needed
  • The industry’s first global platform for service investment opportunities – so investors and experts can invest in startups using man-hours instead of dollars, and startups can offer partial ownership for work. Grow VC is the first web service to enable the quid pro quo arrangements companies have been attracted to all over the world, especially during the economic downturn
  • ‘Market trends’ including Twitter integration, giving startups and investors the ability to track global market pulse and trending topics against companies and industries
  • ‘Talks’ and ‘Following’ capabilities to enhance two-way communication between users, be they startups, entrepreneurs, investors or experts
  • Beta promotion: free service during the beta (ending on 31 January 2010)

“We’re a dynamic, feature-rich global marketplace for startups to meet investors, and vice versa, with quality members who have made it through a strict vetting process,” said CEO Valto Loikkanen. “This public beta gives some of the most innovative conversational and community-building tools out there, to redefine web 2.0 funding models by speeding up processes and simplifying communications.”

One example of a startup that can be found in Grow VC is GeeWee.tv, a unique web and mobile advertising and PR platform. The Birmingham, UK-based startup converts business commercials into mobile videos that can be sent to phones. GeeWee.tv is currently seeking $150,000 in funding and has a pre-funding valuation of $1,350,000. The company is a finalist for the O2 X Male Entrepreneur of the Year award.

GeeWee.tv founder Joel Graham-Blake said:

“Grow VC is a whole new way of finding funding. As a startup, some of the conventional methods of sourcing funds (attracting VCs, applying for grants or asking our bank for a loan) weren’t in line with our business goals. With our Grow VC membership we are confident we’ll be able to find the right angel investor for us.”

Grow VC’s commitment to remaining the only international matchmaking site for startups and investors has resulted in a global advisory board developed in summer 2009 with industry luminaries Aron Bohlig in the US, Esther Barak Landes in Israel and Rahul Patwardhan in India. Each advisor brings extensive experience in funding technology companies. Their biographies can be found at www.growvc.com/about/us.html.

Grow VC’s beta promotion is projected to end by 31 January 2010, so anyone who joins during the beta can use the service for free until then, when normal fees will range from $150 to $900 USD annually. Grow VC will roll out more innovative features at that time including groundbreaking investment structures.

About Grow VC

Grow VC is Venture Capital 2.0, bringing the first truly transparent, international, community-based approach to early stage funding. Grow VC can help mobile and web 2.0 startup stars secure initial funding for their businesses ranging from $10,000 to 1m USD. Grow VC will not only connect startup entrepreneurs with ‘funders’ (investors) to help them discover their common interests, but also provide tools for the process and new transparent ways of doing things. Grow VC international headquarters is located in Hong Kong.

Press contact:

Emily McDaid

Head of Communications

emily@growvc.com

+44 7748 6333 55

Twitter: @growvc

v6m3d9crkp

Reblog this post [with Zemanta]
  • Share/Bookmark
The process from idea to competitive startup
Tuesday, July 21st, 2009
Google Buzz
Startup Financing Cycle
Image via Wikipedia

Building a successful startup from an idea to successful launch and beyond is a mysterious process for many. There is so much information out there and it can be very difficult to obtain what is the right information for you.

First, it’s important to understand that depending on what type of company/business you are starting or launching, the process can be very different. Also we have intentionally left products, customers and other business related parts out of this process outline, to be able to focus on the other aspects of startup development.

In our Grow VC service, we are focusing on the type of ideas and companies that cannot normally use traditional funding solutions like business loans. The reason why these ideas don’t fit that type of funding is that the idea is so risky that there is no other reasonable option than to try it on the real market, and typically this kind of companies have no material assets to be a collateral. So, some sort of risk funding is needed.

When it’s risky to see if the idea will gain traction and momentum, the only logical thing to do from a risk funder’s point of view is to minimize all the other related risks involved, making sure that the idea will have the best possible chance of success.

This usually requires ensuring the team behind it is great, the timing for the idea is right, competition is manageable, and the most important item, “protecting the idea,” would be possible. However, the last one is becoming very difficult in today’s fast changing world and also less meaningful if the business can quickly gain critical mass (like a user base). It is also more and more difficult to patent and protect ideas and components in our “open source world.”

So based on these assumptions, we have outlined the process of building a startup that would have an optimum chance of success from the funding and growth point of view. And we are building our service by focusing on making this process as effective as possible, with the best outcome, when looking at the long term goal of international success.

Building the successful start-up

This process is the core of our Grow VC service development. This can be over simplified and there are many other factors as well. But I think it’s important for us to explain the main process that we at Grow VC focus on.

Building the succesful startup

  1. The first risk to avoid is to be too dependent on one entrepreneur where one would have such ownership that he or she alone could make all decisions. So the core structure / ownership will need to be built, so that also looking from a funders point of view, there is more than one committed entrepreneur. So at least a core team of two or three is advised (since a 50/50 split can be problematic as well). More than three depends on the business model, roles, ownership %, etc.
  2. Other team members. The next step is getting various other contacts committed to support and offer expertise and funding when needed, without too much effort. These people can typically be friends, ex-colleagues, business contacts, family and other close contacts that you have built. They are the type of contacts that you know and they know you. So real trust is based on those relationships.
  3. Next you will need other outside experts that are not in your personal, inner circle. They are the ones bringing in the “outsiders viewpoint” and the contacts that would normally be out of your reach without a bigger effort. You must be able to convince enough of these types of people and get them involved with your start-up as well.
  4. When you have shown traction with external experts , and they are committed to help you by sharing their contacts and expertise and recommending you to others, your startup has reached a level where you are starting to look more appealing to funders. Of course, this is only looking at your startup structure and people involved with it. The value of the idea and the quality of your product must be competitive as well.

Many times the roles between your contacts, experts and funders are not that clear, i.e. in many cases your original founders may also be funders, experts can be funders, etc. But overall the type of structure you will have at the end should look something like the above.

In Grow VC we will have components that are linked to different kinds of funding models in this process, e.g. the different roles for founders, funders, and experts, and tools to manage the process in different stages. For all the other elements in this process that are important but not core for us, we are looking for partners to join us to provide various solutions, services and expertise.

Some of the roles for our partners are already well defined and some of them are more open or not yet defined. If you are interested in partnering with us, please contact us and let’s see how we can cooperate in order to make the experience even better for everyone.

What do you think? Let me know in the comments below, if you feel I have left out some crucial elements that should be added to this.

In future posts, I will go focus to each stage of this process in more detail.

Reblog this post [with Zemanta]
  • Share/Bookmark
Update – Grow VC private Beta
Friday, July 17th, 2009
Google Buzz
Tip of The Iceberg

By stargazr441

A warm welcome to all new readers and members in Grow VC. It’s now been a bit over two weeks from our first beta launch, that we had scheduled for the 2nd Q of 2009. So it’s a good time to share some of the things we have experienced.

During our developments, it’s always been very important for us to be able to keep our planned dates and milestones. So as we were approaching the end of June, we started to finalize the material and features we had ready so far and put up the initial private beta service and our main site.

In typical startup manner we were pulling long hours to get everything to the point needed for us to pull this off. When it came to the day of launch we still had some minor hiccups, and missed our target launch time by a few minutes.

Other than that small delay, we could have not asked for more than what we got for our initial launch response -  we were all extremely exited to see the first posts written about our service and see people lined up in our server hitting “reload” in their browser to see when it went live (my apologies for those who had to wait a few extra minutes).

Here’s some of the posts written about Grow VC so far:

ReadWriteWeb
ArcticStartup
Museum of Modern Betas
The Startup
London Calling
The Next Women
Open Gardens

After the big push on working towards the launch, going through this first beta launch, seeing the great initial response from the markets, seeing people registering to our service and immediately starting to give us feedback, I feel personally very humble to be able to continue our journey with you, so a BIG thanks for those that have helped us so far and those registering to our service and wanting to be part of our venture to “forever change the early stage funding model.” After all this is just the beginning! And we are here for the long haul!

Now – after the launch, first being just exhausted after all of the work and hoopla, then enjoying the launch, registrations and feedback we are receiving – to pulling all of this initial feedback and thoughts back together, we have been fixing bugs and adding new features as fast as possible. Also we have had to do some new features we had not planned and restructure some of our existing features. We are very exited to continue our work towards the next milestones in our road map.

As we are running our private beta, we are taking new registrations in limited numbers by invitation only and we have released some invitation codes via above sites.  We have also invitations available via different Grow VC LinkedIn groups.

We are doing this invitation model during private beta, to be able to make sure we can continue to develop our service in an organized manner and communicate with users to help make our service better for everyone.

The road ahead

As we have launched our private beta and there is something to put your head around, there is so much more that we can and want to communicate about our ideas and thinking about what Venture Capital 2.0 means to us. In coming posts we will start explaining more of our thinking and sharing our ideas. We’d also love to get your feedback comments and ideas, on how can we do better.

At the moment, there are a few of the original core ideas with matching feature updates to our service from the early days, that we are still holding onto, so we can release those later in a more official manner. You can expect these bigger releases, first this fall, and the next one by the start of 2010. The reason we are holding back on revealing these, is that there are important open negotiations going on with several parties around the world related to these announcements.

Other than those few bigger ideas, we want to openly share as much as we can about what we are doing and thinking, so those that want can participate and be part of the change we are doing.

We want you!

What comes to you, as a reader, user in our service, being an entrepreneur, expert or a funder, we could not think of a better and more valuable audience, that we would like to be able to serve with our solution.

  • as an entrepreneur in general and particularly in web and mobile space, I could not imagine better people that can really challenge us to do our best and give us the type of feedback that matters
  • as a funder, selecting start-ups that you feel have earned the extra resources, speed and/or visibility that you can help them to achieve by participate on funding and sharing your knowledge, contacts and expertise to benefit your joint venture
  • as an expert, putting all of your knowledge and skills to play an meaningful role, on making not only our service better, but also helping to build some extraordinary companies of the future

In our world that feels more unified by the day (at least in the online world anyway), there is no question that big changes continue to happen on so many fronts and that there will continue to be from small to extreme global problems that need to be solved. This is the exact reason why entrepreneurs are called to action by so many. Problems of all sizes need solving and industries of many types need serious restructuring.

We want to do our part by building a platform where new start-ups can have a seriously new launch-pad, that they can recognize as their own and you can help us develop it even better.

If you feel that what we are doing is important to you – we invite you to join us, via our service, LinkedIn Groups, FriendFeed and/or Facebook. To follow our progress, be sure to subscribe to our RSS feed and/or follow our Twitter feed.

There is so much that need to be done and so much you can do to help us – to help start-ups, starting right now by sharing your opinions and feedback below :)

  • Share/Bookmark