Finding the funds to grow your craft business can be a challenging, daunting task.
If you are a serious entrepreneur in need of funds to grow your craft business, then ProFounder, crowdfunding platform may be the solution for you.
ProFounder is an easy-to-use online platform that allows your friends, family and others in your community to invest in your craft business.
“It’s not donations, it’s not lending; it’s investments. People are literally investing in the business so they can share in the upside if the business is successful.” explains co-founder Jessica Jackley.
ProFounder is changing the way entrepreneurs and small businesses raise investment capital.
With ProFounder, entrepreneurs can create a compelling investment pitch to offer to potential investors and a term sheet using template forms and compliance sheets. Then when entrepreneurs are ready, they can publish a business fundraising page and email invites to prospective investors. Friends, family and investors are able to make contributions and investments directly on the site. ProFounder handles the bookkeeping, and money transfers.
The cost breakdown of using ProFounder is as follows1:
- Free to Sign-up. Entrepreneurs create a fundraising pitch, draft investment terms, and access ProFounder’s compliance resources.
- $100 to host a fundraising page on ProFounder’s domain. This is paid only if you publish your business fundraising page.
- $1000 for ProFounder to help fulfill commitments to investors and help with the administration of investments, including facilitating e-signatures on term sheets, instruction on where to send funds, document storage, customer service, clear record keeping , and account maintenance.
ProFounder was founded in August 2009 by Jessica Jackley and Dana Mauriello.
Before ProFounder, Jessica cofounded and served as CMO of Kiva, which is the world’s first peer-to-peer microlending platform. Jessica holds an MBA from the Stanford Graduate School of Business with Certificates in Global Management and Public Management, and a BA in Philosophy and Political Science from Bucknell University.
Dana created a unique major at Stanford University, earning her BA in Product Development, and double-dipped to earn her MBA from the Stanford Graduate School of Business a few years later.
ProFounder officially launched in December 2010. March 2011 marked a milestone for ProFounder, their 10th successful entrepreneur closed the 11th raise on the site, putting the total amount of money raised on ProFounder to over $300,000 from 245 investors.
Several entrepreneurs and small businesses have used ProFounder to successfully raise money, from a candy store to a social enterprise to an online recruiting network. ProFounder can be used by incorporated, U.S.-based businesses looking to raise less than $1 million.
To learn more about ProFounder visit them online at www.ProFounder.com.
If you decide to give ProFounder a try, please come back and share your experience!
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NOTES:
1. ^ “How Much Does It Cost To Use ProFounder”. 2010-11-29. www.support.profounder.com. Retrieved 2001-7-16.
