Digital Finance ecosystem is emerging. It is changing all finance services. Resource sharing, partner networks and APIs have very important role in the ecosystem. Grow VC Group companies offer solutions and services to enable digital finance.

1. Grow VC Group ++
www.growvc.com ++
@growvc ++
Enabling Digital Finance ++
Copyrights © Grow VC Group 20151
The Great Disruption of Digital Finance:
Emerging New Networked Ecosystem for Investing and Lending
New York – London – San Francisco – Hong Kong

2. Finance and
Services Infrastructure
Data, Research &
Consulting
Grow VC Group
Worldwide pioneer and leader
in the crowd investing, peer-to-peer and digital finance enabler
Hong Kong - London - New York - San Francisco - Milan

3. Global leader of digital finance groups
■ Started its operations in 2009 being the pioneer to start digital finance service
■ Grow VC Group was the first in the world to launch an online startup equity
investing service in the world
■ The group includes 10 businesses
■ Grow VC Group companies have more than 100 active customers with millions of
end users globally having launched new digital finance services
■ The main hubs are in London, New York, San Francisco and Hong Kong
■ Several its companies are leaders in their own areas, e.g. Crowd Valley,
DealIndex and TradeUp Capital Fund
People
■ Grow VC Group’s management and founders have been listed as top influencers
in the world in digital finance, Fintech, crowdfunding and digital business
■ Our key people are serial entrepreneurs who have experience to launch several
new companies and products around the world to consumer and business market
■ Our people have been in executive roles to launch international corporates’
products to new markets and build data analytical approach for go-to-market and
sale
■ Totally almost 100 people
Grow VC Group
FinTech Firm of the Year
Award Winner 2015
3

4. Grow VC Group Partners
4

5. Ecosystem finds its shape and
companies their position
The Great Disruption
5

6. Finance Sector Challenges
6
1. Finance crisis in 2008 started a chain reaction that
impacted regulation, credibility and business models
of banks
2. More regulation and more requirements for capital
have limited banks’ capability to lend for business
customers
3. Digital currencies and especially the underlining
technology, like blockchain, enables new ways to
make transactions without payment processors and
banks
4. People and companies are more critical towards finance
institutions and service costs, e.g. in fund raising, wealth
management and asset management
› Leads to try alternative providers
› Crowdfunding and p2p lending have emerged
5. Goldman Sachs has estimated that the alternative finance
addressable market is $3.3 Trillion
6. Average growth rate of the UK alternative Finance market is
159%
47%
68%
23%
49%
UK US
Level of confidence in banks
2008 2013
Source: Edelman Trust Barometer
350m
873m
2337m
0
500
1000
1500
2000
2500
2012 2013 2014
The UK alternative
finance market growth
Source: University of
Cambridge and EY: The
European Alternative Finance
Benchmarking Report

7. Fragmented Fintech Map
7
Mobile
payment
Digital
currency
Online
trading
Crowdfunding
Finance
advisory
services
P2P
lending
To have a real ecosystem, different technology components
and services must work together seamlessly.

8. Fragmented Emerging Market
8
Customer demand
§ Customers want their financial services faster,
cheaper and continuously available
Platforms
§ Hundreds of online platforms, especially for
startup crowdfunding and P2P lending have
emerged
§ Most of financial services have their own
platforms
§ In principle the platforms are quite similar,
although some differences in assets and
investment model details
§ Most of the platforms would need more volume
to offer more value and become a real business
Other factors
§ New innovations, like payments, digital
currencies and their technology, have
several different models and no standards
§ The regulation and requirements in
different countries are different
§ It is hard to get data to make investment
analyses, decisions and finance products for
the new markets

9. Many Forces Drive Disruption
9
Digital Finance Disruption
Digital payments
Currencies & Platforms:
enable transactions
Online investing and
lending services:
transparency & direct tx
Regulation:
more for
banks &
enable digital
finance
Globalization:
more int’nal
finance
services

10. Value chain fragmentation
and cohesion
The API Ecosystem
10

11. Value Chain
11
Process
Phase1 Phase2 Phase3 Phase4 Customer
interference
X Ltd. X Ltd. X Ltd. X Ltd. X Ltd.
Y Ltd. X Ltd. K GmbH. Z Plc. Z Plc.
Pre Digital Era
Post Digital Era
• In pre digital era companies were able to manage alone the whole infrastructure and
implement all services for customers
• Telecom, banks, manufacturing companies
• In post digital era the value chain is provided by different providers
• Parties specialize into specific part of value chain which brings cost efficiency
• Also development and innovation is thus faster
• Example:
• Apple’s App store welcomed also other parties to build apps when Nokia
stubbornly tried to do all alone and failed

12. Application Program Interface
12
API (application program interface) is a technical solution
on how different applications discuss with each other
• It is a set of routines, protocols, and tools for building
software applications
• The API specifies how software components should
interact and APIs are used when programming graphical
user interface (GUI) components
Examples:
• Windows has many API sets that are used by system
hardware and applications. When you copy and paste
text from one application to another, it is the API that
allows that to work
• YouTube API: Google's APIs lets developers integrate
YouTube videos and functionality into websites or
applications
API technology links the fragmented value chain
Y Ltd. A GmbH. Z Plc.
API API

13. Case Example
13
Investor
Platform offering added
value through webinars
and articles
Cheaper platform
without any
additional services
Platform with
robo-advisor
Data
Provider
Ltd.
Back Offices Ltd.
(KYC, payments, etc.)
Investment
Product
Bank Plc.
Marketing
Ltd. a)
b)
c)
APIs

14. Ecosystem Projection
14
Digital Back Office Services:
• Authentications, transaction processing, user accounts, transaction history, reporting
• Assets and their securities, ownership ‘tables’, finance instrument models
• Interfaces to 3rd party components, databases, ‘blockchain ledger’processing
Payment
processing
Credit RatingID verification3rd party
services
Blockchain
‘type’ services
Investing
Service A
Investing
Service B
P2P Lending
Service A
Users: Private & Institutionals
MarketData
Services
Wealth
Management A
Secondary
Market
Service A
Asset
Management A
Syndicate
Service A
Digital Fund
Service A
RiskManagement
and
insuranceservices

15. API Ecosystem
15

16. Players in the Digital Investment Ecosystem
16

17. Discussion
17
Where is your place in the networked ecosystem?

18. Market trends
Next wave
Seven theses for incumbents
Digital Finance Market
18

19. Market Trends in Digital Finance
19
Customers
§ Customers want their financial services online
§ Faster, cheaper, continuous access
Service Providers
§ More services for different verticals
§ E.g. based on asset class, investment instrument,
special data
§ More horizontal services
§ E.g. asset, portfolio and wealth management
§ But less services for each individual vertical and
horizontal position
§ E.g. not thousands of real estate or startup
crowdfunding services
§ All services become more international
§ Each service must offer real unique added
value in its position
§ Some services, like back offices and data
services, are linked between all services
§ Digital currency and their technology can
make solutions more decentralized
§ However, there are still many
uncertainties in this development e.g. due
to regulation and reliability of the services

20. Next Wave
20
1. Consolidation of crowdfunding, investing and lending platforms
2. New value added services like wealth management, portfolio
management tools, data services and risk management products
3. More digital finance instruments, e.g. data--managed fund services
4. Mixing of private and public markets in portfolio and wealth
management
5. Combination of data science and artificial intelligence create totally
new era for finance products (and complex questions for regulators)

21. Seven Theses for Incumbents
21
1. Digital services make services become more
effective the need of middle-men is decreased
à smaller fees to fewer parties
2. More data oriented approach for many
services and products with better transparency
à harder to make business only based on
right contacts and information
3. Decreasing entry barriers
à more competition
4. Technologies enable direct transactions
between parties (P2P)
à less need for ‘centralized accounts and
transaction services’, i.e. banks
5. Private and public markets become more similar and
linked to each other
à many digital services are linked to both markets
6. Mandatory to find own unique positions in the new
ecosystem
à hard decisions to abandon something
7. Technology and data competences are important
à need to change people

22. Summary
22
§ Finance is in the beginning of the same digital revolution that other industries have
gone through (Uber, Amazon, Netflix)
› The time and cost efficiency advantages of digitalization for both clients and service providers
are undisputable
› “Everything that can become a platform will become a platform”
§ It is crucial to find your place in the digital finance ecosystem
§ The value chain disruption means more partners and less solo
§ The big finance institutions have started to taken actions to be part of digitalization and alternative
finance market, but it is also hard for an incumbent to make the transition for a new era
§ Digital finance will be one of the biggest industry disruptions during the next 10 years

23. Crowd Valley
1. Digital back office for online investing and lending
2. Open API
3. Manage your investor network with sophisticated and robust tools. Your
standalone admin dashboard allows you to monitor activity on your
client side application via the open API
4. Know Your Client, ID Verification, Data Room, Payment Procedures
5. Get to market efficiently with your online investing or lending
application. Build your client-side application and focus on your end user
experience
6. Leverage a centralized back office, with global third party integrated
services, and let us deal with complex access controls, infrastructure and
security protocols
Grow VC Group as Your Partner
23
How can Grow VC Group companies help you to succeed in the digital era?
DealIndex
1. Leading data aggregator from alternative finance market
2. Intelligent deal and data dashboard for the global digital
investment market
3. Find global private company opportunities across platforms
at a glance and manage your portfolio of private company
investments
4. Enables you to make informed investment decisions backed
by extensive analytics, data and research
5. Essential tool to understand the alternative finance market

24. Grow VC Group as Your Partner
24
Grow Advisors
§ Digital finance professionals providing advisory,
project management, workshops, personnel training
TradeUp Capital Fund
§ The leading digital U.S. export finance service to raise
capital for globalizing company and invest in high-
growth, export-driven companies
Crowdcitee
§ Asia and Europe based crowd investing platform
specialized in access to real estate assets and
promoting diversification through investing globally
P2P Safety
§ Finance, hedging and risk management instruments
for digital finance to make online investing and lending
easier and safer
Kapipal
§ The most global donation and reward crowdfunding
platform that allows people to fund personal causes and
life-events
Startup Commons
§ Enabling governments to connect, manage and
benchmark Startup ecosystems, accelerate innovation,
entrepreneurship and to attract Foreign Investments
Crowd Index Fund
§ A new way to create a fund with crowd investing and
p2p lending for investors that want to participate with
the crowd by investing like in a fund
Commoditarian
§ The ultimate trading platform for real, physical
commodities, conveniently delivered or stored in insured
vaults around the world
How can Grow VC Group companies help you to succeed in the digital era?

25. Grow VC Group
growvc.com
info@growvc
ENABLING
DIGITAL
FINANCE
25