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Crowd-Sourced Capital

calleynye.com

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Re: Crowd-Sourced Capital

#21

Post by adrianwaj »

siliconcalley wrote: post #4

@mkn That's a great idea, but the point is that I don't have the money to build it. How do you raise money for a site to raise money? And I am extremely dedicated to this idea right now. @gz The idea is fully developed, I just don't want every aspect of my business to be public before I have a concrete product built. And to "so when the $25k runs out, what?" Isn't that question the cornerstone to every investment eve…

There is a site that started in Australia that allows people to trade services for equity. Check it out: http://www.webequity.com.au. Note, just over a week ago they launched an international version.

Also, you could setup a pledge system, whereby money is called upon from pledgers only once a certain amount has been pledged. http://www.sellaband.com does this to help musicians do albums. Here, you could have say a few high profile angels or personalities to whom you've pitched make an initial pledge and then others might follow. The amount isn't that important, it's their profile/reputation. The site that could help is http://www.pledgebank.com.

Also see:

http://www.fundable.com http://micropledge.com http://www.chipin.com and maybe even http://TipJoy.com.

The good thing about doing purpose built fundraising site for startups is that a lot of the marketing work would be already done for startups that want to use it. In other words, the startups gathered in one spot would attract the investors.

Re: Crowd-Sourced Capital

#22

Post by gz »

siliconcalley wrote: post #18
gz wrote: post #14

Earlier quoted context omitted.

Thanks for your response. Sorry if I was sarcastic but honestly that's how it spontaneously came out and certainly it's nothing personal. My point regarding the $25K was that some people may be concerned about your ability to raise capital so perhaps this is something you should address (otherwise put: why crowd-sourcing in the first place?). If your idea is fully developed then I misinterpreted the following stateme…

An idea can be fully developed but still have to change. There's an iterative process involved in all startups, and it has nothing to do with the development of the idea and has everything to do with limitations, competitive edge and strategy. Startups iterate all the time, and it does not mean the first idea didn't have merit. If you sit down and really think about what I'm doing, in a purely business (not money) so…

As far as the development of ideas goes I agree with you. But what you state above is not what comes through in your blog post. But then again I am but one sample from your readership.

Regarding your last question here are some things you could say without revealing much while providing valuable insights:

1) we will differentiate ourselves by hiring k top scientists and attacking the problem algorithmically something that hasn't been done been before (or we'll hire k top marketers, you get it)

2) we will provide the service for free in a market where everyone charges for subscriptions (or the other way around, doesn't matter)

3) we will be able to charge less because we have identified this and that way to be more efficient.

4) we have xyz superstar coder/designer/etc in our team.

I could go on. But the point here is dual really: not only you are giving people more info about what you are doing (without revealing much) but you are also telling them you've done your homework (market research, etc).

Regarding the 20 reasons you are doing it this way, yes, I realize there are reasons (marketing is probably #1, great story to tell) but again I think you will benefit from explaining. What I am trying to convey is that there is a positive correlation between the effort you are perceived having put into this thing and the confidence/money you'll get.

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