Tag: Equity Crowdfunding

Evolution on Equity Crowdfunding

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Venture Bonsai, established in 2010, has accumulated long experience in helping entrepreneurs raise equity funding from private investors. Venture Bonsai has been the leader of equity crowdfunding and now the company is pushing the concept to its next stage along various directions. Company’s mission has always been to create new and innovative funding mechanism for startups and growth companies, a market the company has successfully helped develop since its inception. Based on that experience, and guided by the long-term plans, the company is now moving Venture Bonsai to a novel service concept.

The Venture Bonsai Platform integrates smoothly into the well established processes already in place at most financial institutions. Our approach supports a gradual evolution towards a model where every step of an investments into an unlisted company can be assisted with the appropriate online tools. Advanced features such as virtual data room, social media integration, investor emails and share subscription calculator ensure that these services can be run for your investors in a managed way. These key tools enable a smooth and consistent investment process with a large number of potential investors.

Read more at www.venturebonsai.com.

The Crowd Effect

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Are you an entrepreneur?

If yes, stop for a second and imagine what you could do if everybody (yes, everybody) was helping you. Unlimited possibilities! Anything could be done! However, in order for that to happen it might be required for you to be in the business of saving the earth (but maybe you are?).

For rest of entrepreneurs, we could still get a lot done with a little help from a few other people. Maybe you are in the business of selling something many people can understand. Or even better, are you in the business of creating a product or service that thousands of people would buy once ready? And if all of those people end up investing little bit of money in your company, they all got an owners’ incentive to help you.

Let’s call this The Crowd Effect.

Let’s take an example.

Say you have a new start-up producing custom-made shoes based on individual measurements. If you run a crowdfunding financing round and get 200 individuals all over Europe investing in your company, you just got 200 new marketing agents.

In the old world, you were supposed to get this 1 M€ from one or two Venture Capitalists who said “they have connections” and therefore are “value-adding”. Ever heard these things before? Probably yes. So what happens after that? Afterwards you may find out they don’t really know so many people in your industry, maybe in some other industries. And getting connected to a friend of theirs who happens to run a shoe shop doesn’t really take you anywhere. You end up using big portion of this 1M€ you just raised in sales and marketing.

How about re-thinking the whole thing with The Crowd Effect? Imagine getting that 1M€ from those 200 people, who one way or another are interested in your business. Maybe they see it as a good business opportunity or maybe they are in that business themselves. But for sure, the day after they invested in you, they all start marketing your company’s products like never before.

That’s something you cannot buy with money!

But that’s not all. You suddenly may find out that you also have 200 market sensors active. With the right communication tools (not to make it your full time job) you can learn what kind of shoes people really want (market research), what kind of sales channel opportunities there are (advice) and probably some useful piece of advice as well.