......one website, under God [or more practically: under Google], with Funding and capital for all!
I think this could work if a few thinks can be sorted out...
1. this isn't another market, it's a private [members-only] investing firm open to small buisiness owners with reaslitic buisiness plans, big dreams, and innovative ideas.2. any buisiness accepting funding will be selling 40% or so stock in the company. Enough for the owners to stay in control, but enough for the members to have leverage, and a voice.3. members are not liable for any debts, nor is the site. all investments have a risk of loss, but not of more than you are comfortable putting in.4. in case of a company sale, i'll give an example. Company A. Started last year, and accepted $10,000 in funding (40%) of initial worth. Company A recieves a takeover bid last month and since the members own a large part of the company, they get to participlate in the voting over whether they think they would rather retain their shares, or get big dividends from the sale. If Company A sells for 1 million smackaroos, then $400,000 dollars belongs to the shareholders, to be ditributed according to how many $50 shares you purchases.5. The $50 share price is subject to change on a case by case basis. Or maybe i am just settling for the status quo. Okay. Say we don't have shares at all. Say Company B (i love all these generic enterprises, lol) makes 100 million in the first quarter, and so 40 million belongs to shareholders. Since you invested $200 and there is no set stake price, then the profit is divided up according to percentages. So if stockholders initially invested 10 million into company B and reap 40 million, then everybody will get 400% gains on their stakes, no matter how much they invested. invest one cent, get four...i guess a minimum of $10 would me practical.. 6. dividends will be paid quarterly, after a certain incubator period, but only after profits are substantial enough to continue growth. in other words, say Company C makes $10,000. If it needs all that money to buy a new ice cream machine to continue growing as a firm, then it doesn't make much sense to pay the investors now. Also, members may make offers for a stake of some value to another members through private messages7. all companies must stay in touch with investors by updating their "track records page" [ a blog, some charts, and a complete overview of the company, people involved, and buisiness model. If you don't like how things are going, then you can pull out at any time, to minimize losses.8. these things are just what comes to mind, and at this point, it's looking more and more like some new finacial institution. Obviously, i'd like it to be simpler. Bascially, i'd trying to provide your average 'venture capitalist' joe with some security and peace of mind that: A: he has a decent chance of success. a company with a good buisiness model, which can find it's niche ( not in a crowded market like search or something ) and the customers to support it, and has competent management has a decent chance of succeeding. B: he isn't going to lose the shirt off his back or be liable for a company's mismanagement as an investor.
C: peace of mind that these are real companies (not scams) that he can keep in touch with, stay somewhat connected (i like to call it "company personality": feeling like it's a cool family) with, and put real investment in. Not a novelty. Serious investment.
Real Venture capitalist firms try to predict what people will go for, by doing market tests and so on, and seem to have a decent track record. Some bright lights, some failures, but the lights shine brighter than the failures. The members are your market test. Plus you know that
While providing the average 'entreprenuer' joe with:
A: Some dough. The whole point.
B: an initial fan base. supporters. people who want the company to succeed.
C: a way to test his buisiness model and get a sense of what people really think of his product of buisiness. like learning to swim in a pool before swimming in the ocean with all the waves.
D: press and exposure. getting your name out as something new and innovative is the first step. if it intrigues me, i may investigate even if you don't get enough votes to approve funding.
Which reminds me.
Members will weed out the buisinesses based on buisiness plans, markets (not search, digg clone, etc., online games...enough of those) uniqueness, etc. by voting, first.
Then the buisiness will ask for a certain amount for 40% stake. this will vary.
Investors pledge an amount they are willing to invest. If the buisiness gets to the total they want, the funding is closed.
If they don't, they can re-structure thier proposal for a smaller, more reasonable amount.
well i got to go now.
this is sort of incomplete, but whatever. I need to think about it more anyway.
