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Founders and Funders are Matched via Newly Launched Growvc.com
Grow VC launched today via invitation-only private beta to enable early stage mobile and web startups to match with investors. The company aims to become the web’s first truly international community-based, open and transparent matching website for early stage investing, answering the problem of traditional venture capital being locally-focused, difficult to obtain, uninterested in smaller investments and structured by a rigid model. Emily McDaid, Head of Communications gave The NextWomen access as follows:
For the readers of The Next Women readers there is an unique code with 50 invitations behind it for a free membership. The code is TNWO50.
Web entrepreneurs who are in the process of finding seed money ranging from $10,000 – $1m USD, should find in the website a community where investors and startups are equals without borders. Grow VC is a web service for private investors, entrepreneurs, and start-up companies, where they can meet each other, discuss companies, business plans, and funding, rate companies and investors, and use tools to help investment process.
Similar companies that have launched recently are TheFunded, Angelsden, CMYPitch and E-factor. In the Netherlands Equitalis and Videoo launched last year to match companies and investors. But these competitors do no seem to bother the new startup: “Cmypitch is only partly based on matchmaking between angels and startups which is Grow VC’s core area. TheFunded is more of a reputation and voting service on VCs, whereas Grow VC is all about early stage funding and much of this will be through angels, not VCs, since VCs are primarily interested in larger deals – this is one of the big barriers to obtaining funding in early stage and one of the problems we are trying to combat. The reputation / commentary part is similar in Grow VC though. VatorTV has similarities in that it also enables startups to gain visibility and build profile with potential investors.
Having a truly transparent approach, Grow VC is founded on the premise that financial investment should be rooted in the same interactive, community-mindset that the Web 2.0 world is noted for. Hence an open, information-finding and reputation-building source is the heart of Grow VC’s groundbreaking model, according to co-founder and CEO, Valto Loikkanen.
“We call it ‘venture capital 2.0’ because it’s the first service with a live, continuous, interactive, open approach to funding,” said Loikkanen.
“Anyone who is passionate about finding and growing the Internet’s next big thing can benefit from joining Grow VC. We are growing a quality, vetted, and respected community and sustainable business model to support the Web’s next rock stars by giving power to the people”.
“Any startup who has become frustrated with the one-sided VC process, as well as any investor who needs one place to find new innovative companies, now have a community to call home.”
And Emily McDaid added: “Grow VC is squarely focused on helping mobile and web 2.0 startup stars secure early stage funding for their business. We are the first to atttempt this startup/angel matchmaking service globally and at low cost (we are a lot less expensive than some of the alternatives). By globally we mean our initial focus is on Europe, US and Asia. Also, we are very pro startup and treat startups and investors as equals. The service is meant to be one community for both sides to meet.
The primary benefit to a startup would be that they can connect with investors who *they want* to work with, no matter where in the world that investor is based. At the heart of Grow VC is the ability to meet and invest with individual investors (people not companies or groups) from anywhere who might have experience or drive to invest, and who can benefit from global divestiture of risk, almost like a kiva.org concept. Angels don’t have to already be in groups. They form their own profiles and their own reputations based on experience and what they’ve invested in previously. This gels with the concept that angels are not who many people think they are: they are not always HNW, retired bankers – they are anyone with an interest in business, of any age and education level.”
Both founders and funders need obtain an invitation to join the early private beta, whereby they receive a free membership (worth $150 or upwards in value, depending on the size of funding sought – the cost of membership when the service launches publicly in Autumn 2009) as well as five additional invitations they can pass onto their own contacts. Users can create profiles of themselves and their businesses to match-make with other members and discover investment opportunities. All users will be open for commentary from within the community to build their reputations. Third party partners will also join the community to provide the needed framework for funding, such as legal representation, accounting and other business services.
The public launch of Grow VC will include more innovative investment methods that will be revealed later in 2009. During the private beta, Grow VC is also launching a certified partner program, where local or regional startup enablers (incubators, event organisers, law firms, etc.) can get involved to become the primary local access points for members of their community interested in Grow VC.
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