I have this idea for a peer to peer Venture Capital type company.
Let me explain.
There is a huge gap in the way a multi-national company gets started like a Walmart or AMAZON.com, and the type of business I want to help get started.
I want to start a peer to peer funding company that lets people from all around the nation fund small startup companies.
Im talking about real small mom and pop type startups.
Like a local 7eleven or a carwash.
This is how it would work:
It would be sort of like the peer to peer prosper.com or moneyclub.com except you would be bidding on owning a small piece of a business instead of getting returns on a loan.
Lets say Joe Blow wants to start a carwash in his local town that cost 2.5 million to start.
Joe Blow does not have the 2.5 million, nor does he have the 15% to put down for SBA loan or 20% for a standard bank loan.
He puts up a listing on my website with his business plan. He list all his research and tells everyone the cost, car count, margins etc... Basically he makes his case for his potential business.
He decides to sell 50% of his busiiness. So if it cost 2.5 million to start his listing will be for 50% of that or 1.25mill.
At that point a 30 day auction takes place just like prosper.com
Members of my website would have the option of buying $500 shares for part of Joe Blows car wash. How ever many shares each person decides to buy, thats how much of Joes carwash he would own.
When you bid on a business on my website you become a part owner of said company.
You will make profits off your money if the business is successful or lose your investment if it fails.
If Joe Blow ever decides to sell his business you would get whatever % you have invested in a check for the % of the sale price.
You could potentially get a paycheck every month for the rest of your life if the said business is a success.
You could also sell your shares of Joe Blows carwash to other members if you want out.
It basically works exactly like the stock market except its used to help help fund small business startups that are not nearly big enough to have an IPO on a stock exchange.
Or you could say this is like a Venture Capital firm that uses peer to peer lending to help the start ups instead of just a few rich people putting up huge chunks of money.
I could go into much more detail but thats the general idea.
What do you think about this?
Let me explain.
There is a huge gap in the way a multi-national company gets started like a Walmart or AMAZON.com, and the type of business I want to help get started.
I want to start a peer to peer funding company that lets people from all around the nation fund small startup companies.
Im talking about real small mom and pop type startups.
Like a local 7eleven or a carwash.
This is how it would work:
It would be sort of like the peer to peer prosper.com or moneyclub.com except you would be bidding on owning a small piece of a business instead of getting returns on a loan.
Lets say Joe Blow wants to start a carwash in his local town that cost 2.5 million to start.
Joe Blow does not have the 2.5 million, nor does he have the 15% to put down for SBA loan or 20% for a standard bank loan.
He puts up a listing on my website with his business plan. He list all his research and tells everyone the cost, car count, margins etc... Basically he makes his case for his potential business.
He decides to sell 50% of his busiiness. So if it cost 2.5 million to start his listing will be for 50% of that or 1.25mill.
At that point a 30 day auction takes place just like prosper.com
Members of my website would have the option of buying $500 shares for part of Joe Blows car wash. How ever many shares each person decides to buy, thats how much of Joes carwash he would own.
When you bid on a business on my website you become a part owner of said company.
You will make profits off your money if the business is successful or lose your investment if it fails.
If Joe Blow ever decides to sell his business you would get whatever % you have invested in a check for the % of the sale price.
You could potentially get a paycheck every month for the rest of your life if the said business is a success.
You could also sell your shares of Joe Blows carwash to other members if you want out.
It basically works exactly like the stock market except its used to help help fund small business startups that are not nearly big enough to have an IPO on a stock exchange.
Or you could say this is like a Venture Capital firm that uses peer to peer lending to help the start ups instead of just a few rich people putting up huge chunks of money.
I could go into much more detail but thats the general idea.
What do you think about this?