To finance their capital, companies have different options: personal contribution, profits put in reserve, fundraising, etc. Traditionally, during fundraising, it is Business Angels, and venture capital funds that invest in companies.
But these investors are looking for companies with high growth potential and in which they can have a decision-making role. They will also require heavy paperwork and accounting documents, making their decision process long and time consuming.
The emergence of numerous crowdfunding
Today, we are witnessing the emergence of numerous crowdfunding (crowdfunding) capital platforms to welcome a new type of investor: individuals. These platforms for linking project sponsors in search of funds, and potential Internet investors, can democratize access to corporate finance: both entrepreneurs and shareholders, because the process, deadlines and requirements are usually lightened.
These numerous crowdfunding capital platforms stand out by different criteria: type of projects supported (creations, development …), business sector (fashion, sport, tech ..), financing mode (co-investment with professionals of the investment, preferred shares …) etc. There are also platforms that specialize in financing through the contractor’s network, called E-Money.
The E-Money has always existed
But its market potential is untapped in France. Indeed, 75% of the investments of crowdfunding projects come from the network of the entrepreneur. According to a study by MoneyTree and the National Association of Seeds and Venture Funds, 140 billion dollars are invested each year in lovemeney (by the 3F: Family, Friends and Fools). That’s 3 times more than the venture capital, government and Business Angels combined.
This method of financing in E-Money is today facilitated by the development of new modes of communication related to the Internet and social networks. It is therefore possible to easily and rapidly mobilize the extensive network of knowledge of the entrepreneur through their presence on the internet.
Based on these observations
The Good Finance platform decided to position itself on the E-Money market. Created in France for over a year, and recently, internationally, Good Finance offers a web application through which a company can, in a few hours, launch a multi-channel communication campaign and manage interested investors to fund it.