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STAFF: Any plans to raise seeding funds?

 
onetimeuser
Posts: 378
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on 08/31/2012

I'm just curious as to whether or not Wizzley has financial backers, and/or whether they are going to be seeking investment at any stage in the future.

There have been some really interesting developments in both the UK and US recently where individuals are now permitted to invest in businesses irrespective of their financial status. Previously one would need to be a 'high net worth' individual, or have achieved an income exceeding $$$,$$$ or $,$$$,$$$ in the previous financial year.

In the UK this change has already happened, with sites such as Seedrs.com and CrowdCube.com emerging. It is likely that the various US equivalents will be permitted to accept investment from 'normal people' in January 2013.

If Wizzley does at any stage decide to raise capital in exchange for equity, would it consider using one of these sites to raise all of or a proportion of the required finance? 

It would be awesome if Wizzley contributors could have the opportunity to purchase a slice of the business. I think that such a move would be a great one on Wizzley's behalf, unless they have stacks of capital (probably being bankrolled by Chef Keem's seven figure Squidoo earnings :P).

If you were to hypothetically offer up 10% equity for $100,000, and 1000 people invested $100 each for a 0.01% share in your business, that's 1000 people with a vested interest in seeing your business succeed. They might, for example, feel inclined to read and share pages, write pages, or gain referrals!

To cut a long story short, would be awesome if the opportunity arose for site users to grab a bit of equity if the site ever decides that it needs to schmooze with creepy money men. 

onetimeuser
Posts: 378
Message
on 08/31/2012

I've been away for a while, by the way!

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chefkeem
Admin
Posts: 3394
Message
on 08/31/2012

You sure know how to come back with a bang, Ryan.  Laughing

Thanks for sharing your ideas. We'll definitely discuss them with the team.

Meanwhile, I must check on my Squidoo account. Last time I checked, the only "7 figures" were my WIP lenses.  Surprised


Achim "Chef Keem" Thiemermann is the co-founder of a pretty cool new platform called...um...er...oh, yeah - Wizzley.com.
onetimeuser
Posts: 378
Message
on 08/31/2012

Chefkeem, I believe that the term being used to describe this new phenomena is 'equity crowdfunding' or 'equity based crowdfunding'.

It's well worth looking into, there are a few US sites sitting there raring to go as soon as the floodgates open to the masses.

In the UK I'd recommend signing up to Seedrs.com and Crowdcube.com just so that you can get a feel for what this thing is going to look like in the US. 

The former was launched just a month ago and has already had three or four pitches complete (raise 100% of the required capital), the latter was launched a little over a year ago and has already seen 14 pitches complete.

Both have relationships with legal firms who deal with the legal stuff for a fixed rate fee. On Crowdcube I think this is £1750. 

So if a firm raised £100k, for £1750 the solicitors (/attorneys or whatever you call them) will formalize the investment (bargain). Same fee applies if £50k or £500k, whether there are 5 investors or 500 investors.

You will have to Google to find out more about the US sites getting involved, but this is a really exciting new phenomenon. 

Plus, there is nothing stopping the old school venture capitalists from using the platforms to invest alongside everybody else (in fact they do, I have seen many £10k to £20k investments from individuals, those are people with big money who like to spread their risk). The MBAs in the city are embracing it just as us normal folk are!

Anyway, food for thought!

Jerrico_Usher
Posts: 1210
Message
on 08/31/2012

I want a .01% steak in wizzley, where do I sign up with my 100.00? 


Jerrico Usher - The Grass May Be Greener On The Other Side But I Installed A Mirror Over There! :-) - Join Our Wizzler Chat Room created by the people for the people to the people
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chefkeem
Admin
Posts: 3394
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on 08/31/2012

We're not there yet, Jerrico.  Smile

Thanks for all the info, Ryan. We will definitely look into this.


Achim "Chef Keem" Thiemermann is the co-founder of a pretty cool new platform called...um...er...oh, yeah - Wizzley.com.
Jerrico_Usher
Posts: 1210
Message
on 09/01/2012

just showing support hehe


Jerrico Usher - The Grass May Be Greener On The Other Side But I Installed A Mirror Over There! :-) - Join Our Wizzler Chat Room created by the people for the people to the people
lobobrandon
Posts: 534
Message
on 09/01/2012

Too bad there's no like on the posts :)


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Kangaroo_Jase
Posts: 205
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on 09/01/2012

Just note folks, whilst an encouraging and very excellent idea. Something like this may take months and months to organize and legalize .

As each jurisdiction (re: country) has different laws pertaining to concepts like this, don't be so eager to quite jump on board yet.

 

Whilst this endeavor for Ryan (based in the UK) may work and be legal, such a venture and 'good will' for an investment from myself (based in Australia) may in fact, be illegal.


Not wanting to burst any bubbles, just realize some legal aspects thats all.

onetimeuser
Posts: 378
Message
on 09/02/2012

 

Kangaroo_Jase: 09/01/2012 - 05:25 AM

Just note folks, whilst an encouraging and very excellent idea. Something like this may take months and months to organize and legalize .

As each jurisdiction (re: country) has different laws pertaining to concepts like this, don't be so eager to quite jump on board yet.

 

Whilst this endeavor for Ryan (based in the UK) may work and be legal, such a venture and 'good will' for an investment from myself (based in Australia) may in fact, be illegal.


Not wanting to burst any bubbles, just realize some legal aspects thats all.

Indeed Jase, and that's a good point. 

It has been made legal for UK Citizens to invest in ventures irrespective of net wealth or income. As of January it becomes legal for US Citizens to do the same. If you are not a US or UK citizen then you are bound by the laws in your own country.

A US citizen is not bound to invest in only US ventures though, and a UK citizen is not bound to invest in only UK ventures..... so this is merely the start of something incredible.

That's 360 million English-speaking mostly internet using people in two very strong countries so far though..... that's a great start. Shrinking and increasingly less-powerful countries, but I think that's the point!

I am aware of this site though: http://www.assob.com.au

And while I've not done any digging, it appears to be an Australian equity based crowdfunding site. You would need to delve further into that yourself to determine whether that is restricted to investors of a certain status, but either way - looks like the model will be embraced throughout the West. 

I'm extremely excited by the model. I don't have a business to pitch, and probably never will have (I always build small-scale, I'll never have a single project profitable or large enough to be able to give away equity or reach the point where I can gamble with other peoples money)........ but it effectively brings private investment to the 99%.

Private investment brings average annual returns of 26% in the UK, stock portfolios 6%. Likely that the former will fall significantly when people start dabbling for fun (and can't read P&L's, balance sheets, cashflows, or pick holes in business plans)...... but still..... if/when I have spare money, it will be using this model as opposed to stocks and shares. 

Investing money that you can't afford to lose in an environment where less than 50% of businesses survive the first two years would be stupid........ so the 'law of averages' does apply.

onetimeuser
Posts: 378
Message
on 09/02/2012

 

Jerrico_Usher: 08/31/2012 - 10:57 PM

I want a .01% steak in wizzley, where do I sign up with my 100.00? 

I'd prefer a 12 ounce steak Chef, if you don't mind!

I like my medium, a little pink but no blood. I'd share 0.01% of that steak with Jerrico if I really have to!

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chefkeem
Admin
Posts: 3394
Message
on 09/02/2012

In order to get a steak, you'd have to slaughter a cash cow. Hmm...  Undecided


Achim "Chef Keem" Thiemermann is the co-founder of a pretty cool new platform called...um...er...oh, yeah - Wizzley.com.
lakeerieartists
Posts: 769
Message
on 09/02/2012

 

ryank: 09/02/2012 - 09:08 AM

 

Jerrico_Usher: 08/31/2012 - 10:57 PM

I want a .01% steak in wizzley, where do I sign up with my 100.00? 

I'd prefer a 12 ounce steak Chef, if you don't mind!

I like my medium, a little pink but no blood. I'd share 0.01% of that steak with Jerrico if I really have to!

Medium rare for me.  Boy, Ryan, you are just a font of information. 

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Paula Atwell (aka lakeerieartists) is the owner of an online art gallery, Lake Erie Artists Gallery and a freelance writer
Jerrico_Usher
Posts: 1210
Message
on 09/02/2012

I like mine medium rare as well so my .01% won't need any special treatment, well I do like a baker, double stuffed with all the fixins and scalloped potatoes... maybe throw in some green beans, corn on the cob, or peas for balance :)


Jerrico Usher - The Grass May Be Greener On The Other Side But I Installed A Mirror Over There! :-) - Join Our Wizzler Chat Room created by the people for the people to the people
Kangaroo_Jase
Posts: 205
Message
on 09/04/2012

Ryan,

 

Have had a look through the assob.com.au website and it is geared for Australian based non stock exchange listed companies.

 

But it is bang on the concept of yours as suggested for Wizzley.

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