Crowd funding by giving away a part of your company to your first customers. Learn how VacuVita has done this.
Crowd funding is a way to collect funds from members of the public who want to support a (creative) project or new undertaking. Because every person who participates contributes a manageable amount of money, the risk undertaken per crowd funder is kept low, while the total collection would be enough to start the project. This makes crowd funding an attractive way to support product innovations.
As compensation to the crowd funder, they are often presented with a gift or with the option of acquiring the very first editions of the innovative products that they have themselves supported, sometimes at a discount.
In a few countries, crowd funders are also able to purchase shares in the company that is handling the project. With these funds, the company can then implement the project, and upon success, share the profit and growth with the new shareholder. In many countries, though, for example, the US, this form of crowd funding is not yet allowed by the government. Although President Barack Obama signed the JOBS Act in april of 2012, that will make American crowd funding projects and the sales of shares possible, the SEC (US Securities and Exchange Commission) has not yet reached that far.
Most crowd funding projects are run via special websites; crowd funding platforms that are set up to bring crowd funders together with projects. Some known websites are Kickstarter and Indiegogo; American crowd funding websites with millions of visitors. Crowd funding is a growing phenomenon in other countries, but as of this writing it hasn’t gained the same popularity as inside the US.
In crowd funding, there are different forms of payment possibilities. Generally, the crowd funding website collects the payments and only passes them on to the entrepreneur when the amount needed to start the project is reached. When the entrepreneur sells the products as a reward or a gift, more money can be retrieved than is needed, in case more products are sold. The entrepreneur must then take care that he creates enough capacity for production so that everyone gets a product sent to them. However, when buying shares, the amount is limited, since no extra shares will be given out during the crowd funding period.
As a crowd funder, you have the benefit of being one of the first in the world to own an innovative product, often at a discount. However you will have to wait a few months for the product because it still has to be produced. But you have made it possible for the product to be made, which is something to be proud of in itself. Therefore, it is always nice to be kept up to date on how the project is going, either via the website or the newsletter of the entrepreneur.
If you become one of the first shareholders in a crowd funding project, you will have the benefit of sharing in the explosive growth of a young company. If the business will be succesful, you will have a bigger return on investment than the shareholders who jump in when the company is already up and running. At the same time, however, you are also taking a bigger risk and it is more difficult to sell your shares.
If crowd funding does not raise the amount of money required, all the crowd funders who have already participated will get their money refunded. The amount that VacuVita needs to raise is built up from the purchases of the crowd funders and from the capital generated by selling shares (as is explained below). On the VacuVita Monitor Page, you can see -through the use of meters and graphs- at which stage the project is, as well as what the financing needs of VacuVita are.
VacuVita combines several known methods to decrease the risk for the crowd funder, while still maintaining a good financial balance for the company. Therefore, VacuVita is ready to share more than is usual, since who cannot share, cannot multiply.
VacuVita will give every buyer of a VacuVita system, a share in the company. The buyer thus becomes a shareholder, and upon successful financing, receives the purchased product at a substantial discount.
Although the shareholder can receive only one share as a gift, they can, of course, purchase more on their own. Via the Dutch platform, Symbid, shares can be purchased for € 20,- each. If you believe in the future of this sustainable product and wish to invest in it, it is easy to show your support through this online method.
The distribution of shares will be carried out in The Netherlands, where Symbid is established. Symbid provides a legally-controlled structure for ‘shares distribution’ to crowd funders. Symbid does not have as many visitors as an International website such as Indiegogo, which is why VacuVita is using both Indiegogo and Symbid for its purpose. Because Indiegogo doesn’t allow the trading of shares through their platform, people can’t get shares directly through Indiegogo. However, VacuVita gives away a company share to all customers that bought a VacuVita system, under one condition; The customer is permitted by his government to receive the shares. Be aware, that distribution of shares is regulated differently in different countries, and you can only receive shares or buy shares in accordance with the terms and conditionsof the Symbid Platform, through which we distribute the shares. The Symbid method of shares distribution is explained at www.symbid.com. When persons aren’t allowed to receive a company share, because their government forbids them to, they are given a free set of Covero’s Small by VacuVita.
VacuVita, with this combination of offers, is aiming to attract more crowd funders, increasing the value of the company, which will, in turn, benefit shareholders. The company is built up by the crowd and is also shared with the crowd.
VacuVita is also putting a unique marketing campaign in motion: VacuVita will raffle a substantial package of shares among all who register (for free) to the brand and promote VacuVita. If you do not have sufficient funds to purchase shares or to buy a VacuVita system, you may still support this innovative business by spreading the word to friends via social media. Participation is simple, with just a few clicks. Among all these promoters, VacuVita will raffle 2,500 shares with a current estimated value of $ 75,000*. Instead of emitting 2,500 shares to an investor and spent the money on advertising, VacuVita will raffle the same package of company shares between all promotors. The objective of the campaign is to stimulate our crowd funding campaign and to increase the share value for all shareholders through brand awareness.
Not already registered? Participate now, help promote us and be entered to win 2,500 shares!
*This value is based on a successful crowd funding project and a value of 20,- a share. Thise value is subject to fluctuation. More about the VacuVita crowd funding project can be found at www.symbid.com
The number of shares that VacuVita will make available is limited. In total, the company will distribute 125,000 shares, of which 17,500 shares (14%) are made available to crowd funders, through Symbid and the share raffle. The company will be valued at € 2,500,000 after successful crowd funding. This includes the contributions of angel investors, the product itself, goodwill, intellectual property, patent position and expectations of the future (obtained from market research).VacuVita will use the crowd funding period to add information about new aspects, such as sales figures, product acceptation, distribution opportunities which could all lead to more valuation insights.
Valuation issues are especially interesting for people who want to buy more shares. The crowd funders who receive a share as a gift or win the block of shares at the raffle have nothing to lose, after all; they get a good product at a discount or have paid nothing at all in the promotional campaign.
- Be the first to receive a sustainable VacuVita system
- Receive a promotional crowd funding discount on your purchase
- Become a shareholder in the early stage of the company
- Profit, as a shareholder, by our joint online campaigns
- Enjoy fresh food for longer and save money with your VacuVita.
- Your investment is probably tax-deductible (this can differ by country)
Join us in helping a young and innovative company bring a sustainable product to the market.