AImagine that you know a talented, ambitious chef who wants to open a new restaurant in your neighborhood. Unfortunately, she doesn’t know any wealthy investors and doesn’t have many wealthy friends. It’s unlikely that she’ll raise the money she needs.
Cut to community-based crowdfunding – the same chef might not know wealthy investors, but she does have a large community of colleagues, friends and family, and an extended social network of people who like and respect her.
With her business and financial plan in hand, she goes on a crowdfunding platform like crowdfunder and puts her investment offering out to her network and her local community.
Within a few weeks, she has raised the first 20% of the funding she needs. With the initial funding she received, and the people who put up the money, a strong social signal is created for others that this is an interesting opportunity worth exploring … when those people follow on, her restaurant has all the funding it needs.
Not only does investing in local businesses appeal to this new class of non-accredited investors, it can and will often take place within existing relationships and communities of people who know, respect and trust one another. The outcome? Stronger communities and stronger local economies.
I believe that crowdfunding has a higher evolution beyond random offerings on the Web – one that is all about connecting real people in real communities, where trust and reputation are front and center in the process.
Invest in Your Community
Investing in your community and people you know is the “killer app” for crowdfund investing in the U.S., and it’s an idea whose time has come.
Will you be part of this revolution in finance? Will you strengthen your local economy by looking into nearby small business investment opportunities?
Crowdfunding platforms like ours at crowdfunder.com will focus on helping local businesses connect with their local communities online.
So get engaged in your community: join a platform, play a role and be part of this unique time in history.
Entrepreneur, Investor, Adventurer. CoFounder CoinCircle. Founder & Chairman, Crowdfunder. Catalyst in equity crowdfunding legislation & JOBS Act.
