Want to invest in a business but not sure how to start? Ever dreamt of being on Shark ank or Dragon’s Denbut as one of the people with the money making the decisions? A UK crowd-funding site is giving budding investors that chance.crowdfunding marketing
Syndicate Room is one of the new crowd-funding sites springing up and offering ordinary investors the chance to invest in businesses on the same terms as ‘Angel Investors’ such as Hermann Hauser, one of the original creators of Acorn Computers and, subsequently, a veteran new-business investor.crowdfunding advertising
The site sources interesting new ventures that are then introduced to confirmed and vetted angel investors signed up to the site before being opened up to other investors signed up on the site. “The angel investors go: ‘You want £500,000 and I like your idea but I don’t want to be at risk for more than £200,000,” says Gonçalo de Vasconcelos, co-founder and chief executive officer (CEO) of Syndicate Room. “Chances are they’ll also invite some mates, so say they get £300,000 together. The rest goes to the crowd who get exactly the same terms on the exact same share plan.”indiegogo marketing
This allows regular investors to receive the same terms as a veteran without the skills, knowledge or leverage a veteran would have.
Syndicate Room launched last summer and estimates that it will have raised over seven million pounds which will have been invested in 10 companies. The idea has taken off quickly and de Vasconcelos estimates that Syndicate Room will be the second-largest equity crowd-funding site in the UK by the end of the summer – in terms of equity raised.kickstarter marketing
The site averages around £450,000 per company investment, with a £1,000 minimum investment – higher than many other crowd-funding sites. This is because Syndicate Room falls into a slightly different category than many others. Instead of being aimed solely at new start-ups, Syndicate Room aims to take care of companies that fall into the equity gap that develops between seed funding and venture capital (VC).kickstarter project
“Crowd-funding sites are great for that first round 50k but are largely limited past that level,” says Tom Britton, co-founder and chief Technology Officer (CTO) at Syndicate Room. “VCs are getting less risk adverse but there is still this huge gap until about two million that needs to be filled.”CrowdFunding advertizing
As with other crowd-funding sites, Syndicate Room has yet to see an exit. But with the businesses it finds funding for naturally further down the line than early-stage companies on other sites, it is more likely to see a quick exit, Britton adds.CrowdFunding marketing
And with serious investors involved – whether called angels, dragons or sharks – chances are higher that the companies receiving money will continue to succeed.
Posted from: http://www.forbes.com/sites/freddiedawson/2014/06/27/the-crowd-funding-site-that-lets-you-play-with-sharks-or-dragons/