Why would a company secure its financing via Spreds?
When a company is looking for financing, it doesn't need just cash (a loan or capital infusion) but also some ‘Smart Money.’
So it is strategic financing that companies seek when they come to Spreds. In the great majority of cases, the companies are appealing to the general public as a supplement to other sources of financing.
The company XYZ is seeking to increase its capital by around 500,000 EUR.
- The entrepreneurs themselves subscribe together in the amount of 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 (professional investors) type depending on the amount brought in from the investors of Spreds;
- Between 50,000 EUR and 100,000 EUR will be reserved for the investors of Spreds.
There are numerous reasons for appealing to the public to finance one’s project. Here are several of them:
- A campaign is a marketing and communication campaign;
- Putting in place a community of ambassadors-investors;
- Benefit from collective intelligence;
- Participative financing campaigns are an excellent visiting card and a token of credibility to promote oneself to the Business Angels.
Raising funds has never been easier, discover why here.