25. Innovating
or
Growing
Sustainable
businesses,
projects and
Pitch on
communities
Online www.Bloomvc.com
Light Touch
Big Impact
Demonstrate Crowdfund seed or
business model development
capital
26. The power of the crowd…
“Small gifts from many are just
as powerful as large gifts from
a few.”
Steve Case, co-founder, AOL
Bloom ... Venture Catalyst - growing the entrepreneurial eco-system
30. The Status Quo
A wealth of entrepreneurial talent
• UK has lots of great ideas
• Need to cultivate ideas into the next
Google/Twitter/GroupOn Google says searches for
• Often stifled by access to Money "business plan UK" have
increased by 60% over the
past year and searches for
"small business loan" are up
by 34%
31. The Status Quo
The Status Quo
• Venture capital difficult to find for smaller
requirements
• Debt finance hard to come by
• Business angels – limited investments
• Typically a syndicate each investing £10k - £100k
• What if there was a way to have say 5000 angels
each investing £10?
• What if anyone could become a business angel?
32. Crowdcube and Crowdfunding
What is Crowdcube?
• Crowdcube provides a web-based central hub for entrepreneurs to meet
micro-investors. It uses the power of Crowdfunding to provide a unique
service to two types of people:
• for entrepreneurs to source funding more accessibly than conventional
routes
• for smaller investors to have the opportunity to invest in exciting high-
potential businesses
“$100 invested in Microsoft at their IPO would now be
worth approximately $35k.”
33. Crowdfunding
Crowdfunding
• Crowdfunding is an approach to raising the capital required for a new
project or enterprise by appealing to large numbers of ordinary people for
small donations
• Social Media
• Crowdfunding examples
• Kiva.org - $325m funding raised, >777,000 lenders, ~800,000
entrepreneurs
• Kickstarter.com – >24,000 projects funded, > $250m pledged to-date,
2m people have pledged
39. Business model
Success so far…
Deals successfully funded
£5.1 million
funded so far…
£100,000 >30,000
largest single investment members
£2,547 £1 million
av. investment FSA Authorised
biggest deal
46. BC = Before
CrowdFunding
Sources of Finance For
Your Company...
Angels
OverDraft Seed /
Post Early
FFF Early Revenue Growth
Seed £10- £10- £100-£1m
50k £100k
47. BC = Before
CrowdFunding
Sources of Finance For
Your Company...
VC
Angels Growth
£1m-
OverDraft Seed / £25m
Post Early
FFF Early Revenue Growth
Seed £10- £10- £100-£1m
50k £100k
48. BC = Before
CrowdFunding
Sources of Finance For
Your Company...
PE
Mature
Growth /
Distresse
VC d
Growth Companie
Angels s, MBO,
£1m-
OverDraft Seed / £25m
M&A
Post Early £25m-
FFF Early Revenue Growth £100m
Seed £10- £10- £100-£1m
50k £100k
49. BC = Before
CrowdFunding
Sources of Finance For
Your Company...
Equity
Capital
PE Markets
Mature (ECM)
Growth / Exit,
Distresse Mature
VC d Growth,
Growth Companie Expansio
Angels s, MBO,
£1m- n £100m-
OverDraft Seed / £25m M&A £5bn
Post Early £25m-
FFF Early Revenue Growth £100m
Seed £10- £10- £100-£1m
50k £100k
50. BC = Before
CrowdFunding
Sources of Finance For
Your Company... Debt
Capital
Equity
Markets
Capital
PE (DCM)
Markets
Mature Public
(ECM)
Growth / Compani
Exit,
Distresse Mature es,
d Countries
VC Growth,
Companie Expansion ,
Angels Growth ££££’s
£1m- s, MBO, £100m-
OverDraft Seed / £25m M&A £5bn
Post Early £25m-
FFF Early Revenue Growth £100m
Seed £10- £10- £100-£1m
50k £100k
51. AD = After Debt Crisis
Sources of Finance For
Your Company...
FFF £1k
52. AD = After Debt Crisis
Sources of Finance For
Your Company...
CrowdFun
d
Seed/Idea
FFF £1k Prototype
£1k-£50k
53. AD = After Debt Crisis
Sources of Finance For
Your Company...
CrowdLoa
n
Expansio
CrowdFun n/
d Working
Seed/Idea Capital
FFF £1k Prototype £1k -
£1k-£50k £100k
54. AD = After Debt Crisis
Sources of Finance For
Your Company...
Crowd-
Investmen
CrowdLoa t Seed For
n A Good
CrowdFun Expansion Plan,
d / Working Growth
Seed/Idea Capital £10k-£1m
FFF £1k Prototype £1k -
£1k-£50k £100k
55. AD = After Debt Crisis
Sources of Finance For
Your Company...
ECM DCM
PE
£100 £££’s
£25
Crowd- m-
m-
Investmen VC £1m- £100 £5bn
CrowdLoa t Seed For £25m m
n A Good
CrowdFun Expansion Plan,
d / Working Growth
Seed/Idea Capital £10k-£1m
FFF £1k Prototype £1k -
£1k-£50k £100k
72. The Economy & Social Institutions Respond
• 1999 to 2013 – Broadband and
Mobile Technologies continue
to invade our lives
• 2013 -David and Goliath must
dance
73. Consumerisation of Technology
Ariadne advised Skype on business development activity in 2003 and 2004
The consumer's adoption of services is driving everything, reversing how new
products and services used to come to market through the enterprise.
User
Client Developer
Supplier
74. Raymond Kurzweil
The Singularity is Near
• Technology operates exponentially while our
minds operate linearly
• It took 89 years for the fixed line telephone to
achieve an adoption of 150 million users, but
only 38 years for the television to get to the
same point. The mobile phone achieved this
in 14 years, the iPod in 7, and Facebook in 5.
• 20,000 years of progress this century.
• At a certain point, we have to leverage
technology or artificial intelligence to continue
to model or predict the future
75. The David / Goliath Grid Model
Network
Strategic
Effects
Value
When partnering with, When acquired,
Ecosystem
1)Brings new 1)Can become
“David” - Digital Enabler
EconomicsTM –
shifting digital revenues
industry 2)Can reinforce or
players 2)Brings lean operating gain a position as
system Industry Architect
Consumer –
Data sets
become
prevalent
Network –
Orientation at
heart of the
consumer
insight Renting Operating System
Not Licensing to the industry
Vulnerability “Goliath” - Distribution Financial Value
Copyright - Ariadne Capital 75
76. Examples of Corporates engaging with Digital Enablers
Large corporates which are partnering and/or acquiring digital technology firms
include:
83. and Ecosystem Economics
• Google says that they organise the world’s information
• They actually organise the economics of the world’s information
• I, as a consumer of their search, am not given any economic upside in the search
transaction.
• They have built a multi-billion pound business using – albeit anonymously – my personal
data – aggregated with that of others, but releasing none of the economic value to me
• Their biggest Achilles Heel is if someone in the search space were to cut a different set of
economics for the consumer
• Ariadne Capital found that entrepreneur – John Paleomylites – founder of
BeatThatQuote, and sold his business to Google on the 4th of March 2011 for a 122 EBITDA
multiple for these reasons
85. has created The Mobile Money Ecosystem over the past 9 years
Cards
Processor
Payments
• Domestic
• International
Mobile
TopUp
Enabler
3rd Party
Providers
• Sharedealing
• Insurance Mobile
Operators
National
Use of standard Interfaces
Services
• Transit
• Utility
Other eg
Core • CRM
Banking Wealth • Database
Shopping
&
Loyalty
Bank Platforms
89. In 2013, “Network Benefits” accrue to those Firms
who understand their role in their ecosystem and
organise the economics for it
This in turn leads to exceptional returns for their
shareholders
89
90.
91. Individual Capitalism is the Force for the 21st
Century
“Capitalism was about empowered
authority which didn’t necessarily activate
the citizenry; the Internet stands that on its
head, and shifts the power to the
Individual
– making Individual Capitalism the force of
the 21st Century”.