Stop for a second and imagine what you could do if everybody (yes, everybody) was helping you. Unlimited possibilities! Anything could be done! However, in order for that to happen it might be required of you to be in the business of saving the earth (but maybe you are?).
For rest of us, we could still get a lot done with a little help from a few other people. Maybe you are in the business of selling something many can understand. And if all of those people end up investing little bit of money in your company, they all got an owners’ incentive to help you.
Let’s call this The Crowd Effect.
Let’s take an example.
Say you have a new start-up producing custom-made shoes based on individual measurements. If you run a crowdfunding financing round and get 200 individuals all over Europe investing in your company, you just got 200 new marketing agents.
In the old world, you were supposed to get this 1 M€ from one or two Venture Capitalists who said “they have connections” and therefore are “value-adding”. Ever heard these things before? Probably yes. So what happens after that? Afterwards you may find out they don’t really… Continue reading