Wonderful way to borrow
One of the founders of the non-profit kiva.org, the crowdsourcing microlending site, Jessica Jackley has built on the idea and Kiva’s experience to establish a wonderful site for venture founders: profounder.com.
What’s wonderful is that loans are made from your network who are inspired by your pitch to back your new startup business. But rather than having to give away equity or get saddled with regular interest payment on a loan, the investor is repaid once the new company starts to make sales.
Profounder enables the entrepreneur to
- create a fundraising pitch
- invite friends, family, and community to invest online
- pay investors a share of revenues over time
- manage paperwork, legal compliance, and more.
Investors get a percentage of your revenue over the time period you choose. There is unlimited financial upside. Each quarter throughout the duration of your investment term, you will log onto ProFounder to report your quarterly revenues. Based on these, Profounder will pull the percentage you’ve chosen to distribute proportionately to all of your investors.
This way, there is no attention paid to the loan by the SEC and the whole process of acessing money is greatly simplified. If you want to learn a lot more about many other ways to use bootstrap finance, go to the Bootstrap Finance page of Startupowl.