Wednesday, July 29, 2009

Report from July - New VC Vistas iBreakfast

"Who Moved My VC?"

Steven Arnold, Arnold IT

Allan Young, PCMexchange
Slava Rubin, IndieGoGo

Open Season for Open Source
Entrepreneurs looking for new funding got an eye-opener to the future at the July iBreakfast. Top of the list - according to Steve Arnold, is that open-source is becoming a mandate for all government-related RFPs. If you are going after of City, State or Federal money - these are the magic words.

For Entrepreneurs looking beyond the tight VC market - where many, many deals are chasing very selective investors offering low valuations - PCMexchange holds hope for the future. Here Entrepreneurs can raise money directly from pools of investors online. While this technique has been tried (Wit Capital to Prosper) sooner or later the SEC has moved in to shut them down.

But now we are seeing a new way of dealing with this.

PCM Exchange uses a new combination of techniques - it is founded by a broker-dealer and only accredited investors get access to the site. But it is it open to all entrepreneurs. The advantages for investors are that they can vet the entrepreneurs as a group - saving them from multiple due diligences. For the investors, the site will offer a kind of stock exchange thereby offering liquidity for their holdings.

IndieGoGo offers a crowfunding source for film and digital content. The trick here is that the pubic does not buy equity on the film only the equivalent of sponsorship or bragging rights.

Additional report by Guilherme Cunha

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