If you’re a small startup that has been pounding the streets and banging on the doors to raise a round of funding, you know how tough that can be. And with the success of Kickstarter.com, you probably wonder why there aren’t more online social crowdfunding solutions that caters more to small businesses. Well, you may want to check out Startup Stock Exchange then.
The Startup Stock Exchange (www.startupstockexchange.net) is a global funding solution for startups and small businesses that allows them to raise money from potential investors worldwide instead of going to angel investors or VC firms. The idea, of course, is frightfully simple. A small business can sign up on the site for approval to be listed, and once (or if) approved, they can reach thousands of investors across the globe. The startup can decide how many shares to sell, and can raise money in various stages. For simplicity, there’s only one standard funding application used for all investors, so the startup don’t have to tailor presentations or investment forms for every potential fund source.
So unlike Kiva or Kickstarter, for Startup Stock Exchange you actually own a piece of the company you invest in. The fun part begins when more companies and investors get on the platform. Investors can buy and sell shares from one another – just like a regular stock exchange – so with enough capital you can actually trade for and own many little bits of different companies worldwide.
This will probably be one of the most risky investment vehicles ever, but it’s still a great idea that helps startups raise funds and allows non-affiliated, individual investors to invest into the startup and small business ecosystem. It’ll be interesting to see what your Startup Stock Exchange portfolio looks like!
Startup Stock Exchange is slated to open officially in the third quarter of this year.
