Interesting concept here – www.growvc.com – entrepreneurs can now raise money from the community, kiva style. And they can invest their money into other startups to diversify their risk. With some strong on-ground facilitation (and an incentive model for the same) this can work…
Thoughts?
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A similar model is run by Helyos Partners (http://www.helyospartners.com/ ) in Europe. They have offices in Geneva, Madrid and Luxembourg and they work closely with European centers of innovation, like Lausanne based EPFL. They started as a regular set of Business Angels and evolved into exactly the above mentioned structure by late 2008. It may be interesting to talk to them to understand their experiences, and to explore cooperation opportunities. Anyone interested in talking to them can get in touch with one of the three founding Partners – Emmanuel Fournier, or can contact me for personal introduction with him.
It remains to be seen how this will evolve…Looks like they have to do a lot of number crunching to arrive at how the returns will be split if and when the returns do come out positively….
Implementation needed in India…who will bell the cat?
That is a very good idea – except I’d prefer the money raised to be a loan versus stake as there will be a lot of them.On the other hand, isn’t this like issuing stocks of your company.All in all, a great idea
Interesting concept,
This sounds like it may help many little startups however I feel the preperation startups go through when seeking funding in the traditional methods from Angel investors or VCs is very benificial in itself. Creating a proper business plan and exploring your companies focus and goals should not be over looked.