As my first business grew , I did what every entrepreneurial book and advisor, tells you to do – I went out looking for angel investment. Unlike Starbucks founder, Howard Shultz, who famously made 240 pitches before getting funded, I found several interested investors. I spent countless hours meeting them, discussing the value they could bring and the long term social and revenue aims for Give What You’re Good At.
After receiving a few conditional offers, I decided I didn’t want to take investment in the business. I considered a potential power struggle too much of a time drain and because I had set Give What You’re Good At up as a services led business – we didn’t need investment to earn money. Of course, the business could have grown more quickly with investment, but I considered my time was better used growing the community. Admittedly, I was also governed by my emotions. Give What You’re Good At is a social business matching professionals who want to give their skills with charities that needed them, I didn’t want the social aims to be lost in the pursuit of profitability – and I didn’t meet anyone who cared about the platform (non revenue making) as much I do. For those of you wondering, Give What You’re Good At makes money offline through a range of bespoke learning and development programmes.
As both an equity crowd funding investor and a entrepreneur raising crowd capital, I take a very different view on crowd funding.
Equity crowd funding is the process of raising small amounts of money from lots of investors for shares in a company. It’s a growing industry, with platforms such as Crowdcube, Seedrs and Bank to the Future reporting expotential growth.
A community maketh a business
For me, the value in crowdfunding is growing a community to incubate and peptuate a business. I’m crowd funding my second venture The Crowd Works to gain users for the platform, cultivate evangelical ‘Crowd Workers’ and streamline the iteration process. The value investors hold goes far beyond monetary. It is our hope that several investors will be keen to share their specialised knowledge and expertise to add value to their investment and join an exciting journey to revolutionise recruitment.
Focus on growing your business – not reporting or meeting angels
it is said that we only really need to do 20% of things to get 80% impact. The reach and scalablility of crowdfunding is very attractive. Instead of conducting 100’s of meetings, you can reach out to investors online and get immediate feedback. Many platforms also streamline the communication process with your investors and help them and you claim tax incentives.
Potential to earn 10 to 50 times return on investment
I have invested 20% of my portfolio in equity crowd funding ventures and this is my long-term personal strategy. Crowd funding is the smart way angels can find the next big thing, connect with likeable entrepreneurs and share passions and visions.
Crowd funding is revitalising the economy at a time when bank aren’t lending and public services are steadily dying off. It is accelerating angel investing and creating an entirely new market for investment crowdfunding for businesses. Join a crowdfunding community today. You’ll make a difference and help build a new and more collaborative economy.