Why does a company finance itself via Spreds?
When a company seeks financing, it often seeks funds (loan or equity) coupled with "Smart Money".
Companies generally look for various sources of financing, combining the financing provided through Spreds with other sources of financing. Each type of investor will be able to both complement the amount to be financed -and thus reduce their risk exposure- and support the company with their skills and network, including Spreds' crowd investors (who can also bring contacts and support the company with their ideas or as consumers).
EXAMPLE:
Company X seeks to increase its capital to 500,000 EUR.
- The project owners subscribe together to 100.000 EUR;
- Other investors (Friends & Family) subscribe for 50.000 EUR;
- Between 250.000 EUR and 300.000 EUR will be reserved for 2 - 3 institutional investors of the Business Angel type (professional investors) depending on the amount raised from Spreds investors;
- Between 50.000 EUR and 100.000 EUR will be reserved for Spreds investors.
WHY:
There are many reasons to go to the public to finance your project. Here are some examples:
- Crowdfunding is a source of funding;
- A campaign on Spreds is a form of marketing and communication campaign;
- Building a community of investor-ambassadors;
- Benefit from the collective intelligence;
- A campaign on Spreds is an excellent business card and a proof of credibility to be used with Business Angels.