Ownership for everyone

Posted on : Wed, 16 Sep App: Symbid

Got a great idea for a new business and need the cash to move it forward or are you looking to get in at the bottom and invest in a promising new venture? Whatever your position, symbid.com can introduce willing investors to entrepreneurs looking for start-up or growth capital.

Entrepreneurs sign up and set out the cash they need and the equity they’re willing to part company with in return for it. Investors sign in, take a look at the proposition and decide how much, if anything, they’d be happy to invest.

This is a Dutch business and therefore investment units are in euros. Investors signing in are able to see the proposition and a business plan covering the market, marketing and sales strategy, product detail and finance requirements. Many of these propositions include a short video presentation too. Entrepreneurs can choose to either have their proposition made public on the site or just provide the http://feedmyapp.com/review/ownership-for-everyone/ to selected prospective investors.

The concept here is crowdfunding of course, a sophisticated version yes, but crowdfunding all the same. Investments are made in units of €20 and the proposition stays open until the target is reached. Once reached, an investor becomes a shareholder in a new and separate legal entity with a stake in it equal to the proportion of his investment in the target amount. It is this new legal entity that buys the equity in the new venture.

Following a successful outcome to a proposition, symbid.com opens up a number of collaborative channels for investors to get actively involved in the business. This can include offering advice to the entrepreneur or management team and discussing issues with fellow investors. There is also the opportunity for investors to off-load their shares to a buyer within the same group, offering some of level of liquidity.

As with any investment vehicle anyone parting company with cash is advised to do some of their own due diligence on the party taking the money. The website states that the funds are under the supervision of the Symbid Trust Foundation and invested funds can be withdrawn at any time up until the proposition is fully funded. It is at this time that the separate legal entity is formed and the money wired to the entrepreneurs bank account less a 5% success fee.

ConclusionA slick and comprehensive way of putting investors and entrepreneurs together, and a sensible enough sounding way to wrap up the eventual share ownership. Buyer beware applies of course and investors need to be comfortable with where they’re sending their money.

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