Virtual Business Incubator: how it works

This is short description of Virtual Business Incubator. It's main structure, key parts and users. Basic processes are decribed. Virtual Business Incubator is considered in CrowdSynergy as main building block for National Innovation Ecosystem.

1. EEE
World of Virtual Innovation Ecosystem
and Virtual Business Incubator as it's core

A Positive feedback loop is created

REN

pPrezi

2. World of the Virtual Business Incubator (VBI),
the heart of the Global Virtual Innovation
Ecosystem

http://www.crowdsynergy.com/

3. The heart of the Global Virtual Innovation Ecosystem is a Virtual World
in which people implement their Missions and goals:

* introduce their ideas,

* participate in the evaluation and selection of other people's ideas,

* team up,

+ make deals,

+ work collaboratively to turn ideas into mature projects, invest and
manage assets,

+ participate in the World development.

http://www.crowdsynergy.com/

4. Clients & Users of Virtual Business Incubator (VBI) will have
different missions, however the central one is the
development of innovative idea and turning it into a mature
project or intellectual property that may attract investors and
add value to the World.

http://www.crowdsynergy.com/

5. Central Mission is accomplished by
Entrepreneur - the one who took the initiative
to turn the idea into reality.

http://www.crowdsynergy.com/

6. Entrepreneur is a key character of our World, and
everything in the World is created in order to support him,
boost his performance and help in his mission - turning
ideas into reality.

http://www.crowdsynergy.com/

7. Entrepreneur needs a team in order to
implement an idea.

Team members are professionals, consultants,
experts and mentors who help businesses to
accomplish it's mission.

8. Entrepreneur's Mission essence is to pass all stages from
the idea (initial validation by the experts and market; get the
team) to the collaborative work on a project and attracting
investments.

Professional's Mission essence is to become a member of
a startup team, and help an entrepreneur in the
implementation of the Central Mission which is
development of a project.

Investor's Mission essence is to find a promising project
with the charismatic entrepreneur and an effective team,
and help entrepreneurs in the implementation of the
Central Mission

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Thus, the mission of the Entrepreneur is a
journey through different Areas of our World
where he/she can get team members -
professionals, validate his idea, get crowd and
expert advice, collaboratively develop the project
and attract investors using crowdfunding and
other possibilities.

http://www.crowdsynergy.com/

10. The World consists of several
functional Areas in which
entrepreneur travels.

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11. The Map of the World

Gates of the World

y

Personal Area

m. Expert
Constructor == > Zone

Deals

Marketplace Constructor

m

e

Groupwork Zone

12. The Map of the World

Gates of the World

Y

13. This is the starting page of the project, which contains all users, regardless of their

future missions. In this Area, they can read the rules of the World, the strategies to

achieve their goals, they can better understand their needs and decide where to go
and what to do.

Main purpose of this Area is to help navigate in the World's Map, and to understand
an opportunities it provides.

As a result, each user chooses a strategy that fits his/her needs. If the user cannot
select a strategy, it can go to different sections of the World in order to skim the
activities of other users and startup projects.

If the user wants to develop his project, to join a project or make an investment, he
should register himself in the platform.

14. TC Wap UT tie VYUTIU —

Gates of the World

y

Personal Area

15. y

Personal Area

16. + This area (user's profile) is like a person's home, where he keeps his property, adjusts convenient
parameters in his personal environment. Profile acts as an electronic passport in our World

- In order to be eligible to carry out any action, the user must create a profile and fill it. Our World is
designed for collaborative work and creation of value, so all users need to understand who are their
partners,

- Profile Information is directly related to the Reputation of the user, and to the state of the user's account
balance.

+ After filling out a profile, the user can create his idea in the World (if he is an entrepreneur) or directly go to
the Marketplace (if he wants to join the project as a team member or investor).

- Entrepreneur's Way if go to the next area of the World - Idea Constructor.

17. D

Personal Area

Idea

Dereai > cl

18. Idea
Constructor

19. Majority of the projects is rejected not because of a poor quality, but because of the fact that entrepreneurs
can not convey the value and business model of their ideas. Adequate understanding of the problem is still
the key to our society.

Thus, entrepreneur enters Idea Constructor Area for creation an acceptable description of ideas, he can use
different tools (frameworks like Business Model Canvas or Lean Canvas or CrowdSynergy Canvas) in order to
get idea description and complete initial draft of business model with required quality. The value of staying
in this area is that at this stage entrepreneurs get a lot of questions about his ideas and has the ability to
think on answers. This is market validation of the idea

+ In the Idea Constructor Area entrepreneur first encounters with moderators who assess the completeness
of ideas before they are allowed to publish it in the Expert Zone. This is done for screening badly defined
and raw ideas to avoid wasty of valuable experts’ time

+ Thus, the world ensures that experts will not waste their time on spam. In this case, Moderator just check
the completeness of the description. If the moderator approves the description of the idea, the
Entrepreneur goes to Expert zone, where the idea gets first feedback from experts and crowd of the World

20. y

Personal Area

Idea Expert
Constructor. =] —

Deals

Marketplace
Constructor

nme

UN e

erez

21. Expert
Zone

22. + In the Expert Zone new Idea first enters the public section, which can be accessed by
community.

« Experts give assessment of an idea before it will go to Marketplace. Main goal for Idea
to stay in the Expert Zone is to get market validation and achieve certain level of
quality after which it could be published on the Market. There is no deals in the
Expert Zone, experts here give ratings and comments, put points for ideas.

+ Entrepreneur, based on expert opinion and advice, continue development of the idea
and adds relevant parts to its description.

+ Each iteration in the idea development creates a new dialogue with the experts and
increases the ranking of the Idea.

+ Expert Zone is the main instrument for the development and description of the idea.

23. Personal Area

Idea Expert
Constructor =] in

Deals

Marketplace
Constructor

—

N 7

Groupwork Zone
@erezi =

24. Marketplace

@erezi ur

25. + Market is a place where people sell and buy, review project proposals, work, and services.
This is a place where business meets with potential team members, investors, service
providers. This is a place where all interested users can subscribe to project updates,
people, events.

+ Idea come to the Market and become available to all community members. The idea gets to
the Market in order to attract members of the teams, experts, consultants, mentors and
investors.

+ All community members can see the idea and demand for resources from Entrepreneur's
side. Thus, they can offer their services if they want.

- As a result, a dialogue arises between entrepreneurs and interested members of the
community about opportunities to participate in the project. There are different means of
communication in the World such as emails, chat rooms, forums, video conferences and
rooms for Webinars.

+ Community members can use any means for communication both: delivered by the Virtual
World and those they were already familiar with.

+ If as a result of negotiations, entrepreneurs and potential team members can form teams
and go to Deal Constructor Zone.

26. Idea Expert
Constructor =} re

Deals

Marketplace
Constructor

_—>

N 7

Groupwork Zone

http://www.crowdsynergy.com/

Dereai

27. Deals
Constructor

@erezi A

28. + All members of the community may enter this Area in order to work collaboratively on
projects. They can also carry out transactions, defining the rights, duties, the amount and
terms of mutual obligations, the form of payment.

- The form of payment can be done in two ways: local virtual currency of the World or
equity investments (crowdfunding).

+ Any community member can see all the deals and the traffic on them from their user
profile.

+ Team members can jointly develop the project without signing deals, but in that case
Contribution Tracking System can't be turned on. Contribution Tracking System is a
dynamic review of efforts that have been put by all team members into the project. It
reflects contribution on the balance sheet of the project and user's profile.

+ If someone wants to provide services for projects not for the stake, but for money, he
has to make a deal.

+ When the transaction is done, the team goes into the Group Work Zone.

29. Deals

ketplace
Constructor

eh

N 7

Groupwork Zone

http://www.crowdsynergy.com/

Derezi

30. Constru

—

N 7

Groupwork Zone

http://www.crowdsynergy.com/

31. Marketplace

@erezi ur

32. Project becomes more mature and attracts attention of community and particular
members.

Gamification techniques and built-in reputation system allow to track formal ranking of
projects and their capitalization. At some point investors get attracted by team, idea, track

record of the project and start negotiation with founders.

Then investor can fund a project and get equity in exchange.

If they agreed on conditions they go to the Deals Constructor Area and sign an
Agreement.

33. Deals
Constructor

@erezi A

34. - In Deals Constructor Area investor and entrepreneur negotiate on deal's
conditions which is automatically reflected later on in the balance of the
project and user profiles.

+ From this moment investor should accomplish his/her obligations and
provide funding from his account to the accounts of team members.
Entrepreneur in return gives some share from his account's balance.

+ All operations are recorded in Deals Constructor and Contribution
Tracking System.

+ Investor get access to the Groupwork Area of the project when all
transaction have been accomplished.

35. Constru

—

N 7

Groupwork Zone

http://www.crowdsynergy.com/

36. Investor can carry out activities that are regulated by its role and terms of the
transaction, including:

- attraction of project manager,

+ financial manager,

+ lawyer,

- patent attorney,

+ team mentors,

- different agents.

Hence, he can attract needed resources for a team, and which can contribute
to the development of a project.

The main objective of the investor is to boost a project and increase its
capitalization.

At the same time investor search for other investors thinking about next
round of funding, if it is aligned with his/her strategy.

37. Next round of funding

If an entrepreneur and an investor found investors for the next round, there can
be two scenarios:

1) New investor registers in the World and all parties go to the Deals
Constructor Area. All transactions are carried out there.

2) If the investor want to move the project in a particular jurisdiction in its own
regional area, he can initiate a process of project's transfer.

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38. Project Transfer from the World
is a 7-step proces

1. First, a new investor registers in the system, and makes a deal in the Deals
Constructor Area

2. Fulfillment of obligations is done under the transaction in the World.

3, Then a new company is created under the jurisdiction of the Investor, to which
transfer will be implemented. All shares are equal to ones that have been
registered in the World based on the information of the Deals Constructor Area.

4, At the same time there is a registration of IP in the jurisdiction of the investor,
and record is made in the balance of the new company.

5. All funds and capital go are transferred from the balance of the project through
the national gateways into the right jurisdiction

6. The project is closed and get archive status in the World when all of the
obligations under the jurisdiction of the investor are executed, and all team
members have signed necessary contacts.

7. Agreement between the World and jurisdictions allows project archive for all
court issues.

39. Thank you for meeting our
World of Innovations!

40. Thus,
founder and team got:
- opportunity to meet each other
- opportunity of idea validation
and expertise
- initial funding
- opportunity to work
collaboratively
- next round of funding

http://www crowdeynergy.com/

Gerez

41. Professionals get
opportunity to work in
innovative project | startup
and get options in it.

http://www.crowdsynergy.com/

42. Investors get access toa
huge flow of projects and
highquality expertise

43. A Positive feedback loop is created

ENTREPRENEURS
CREATE FLOW OF
PROJECTS

PROJECTS ATTRACT
OPPORTUNITIES PROFESSIONALS,
ATTRACT INVESTORS,

ENTREPRENEURS MENTORS AND

SERVICE PROVIDERS

THUS, ENVIRONMENT
CREATES WHAT IS CALLED PEOPLE INTERACTION AND
INNOVATION ECOSYSTEM

CONSOLIDATION

WHERE MEMBERS OF STIMULATES CREATIVE
COMMUNITY CREATE IDEAS, AND INNOVATIVE
BECOME ENTREPRENEURS

ENVIRONMENT
AND TAKE PROACTIVE

POSITION . A

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44. CC >

OPPORTUNITIES
ATTRACT
ENTREPRENEURS

45. ENTREPRENEURS =
CREATE FLOW OF
PROJECTS

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46. > We

PROJECTS ATTRACT
PROFESSIONALS,
INVESTORS,
MENTORS AND
SERVICE PROVIDERS

47. PEOPLE INTERACTION AND
CONSOLIDATION
STIMULATES CREATIVE
AND INNOVATIVE
ENVIRONMENT

>

48. THUS, ENVIRONMENT
CREATES WHAT IS CALLED
x INNOVATION ECOSYSTEM
WHERE MEMBERS OF
COMMUNITY CREATE IDEAS,
BECOME ENTREPRENEURS
AND TAKE PROACTIVE

POSITION y

49. OPPORTUNITIES
ATTRACT
ENTREPRENEURS

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50. Feedback loop is closed.

Hence, spiral development of the system begins to unfold,
pulling in new and creative people.

Community is spread across regions, borders, countries.

51. np wow crowsynensy.com!

Thus governments and elites of
emerging economies get new way
of development and establishing
innovation ecosystem

@erezi

52. World of the Virtual Business Incubator (VBI),
the heart of the Global Virtual Innovation
Ecosystem

http://www.crowdsynergy.com/