STARTUPBIDDER

Startupbidder is a new company out of Dusseldorf, Germany, that provides crowdfunding for startup entrprenuers. Traditionally, crowdfunding sites focus on pre-sales of products, which deny any upside for investors should the company become successful. The large number of small investors, often numbering in the thousands, pose regulatory problems for companies seeking to sell shares in early investment rounds. Startupbidder solves this problem by providing founders with direct capital from a... ngel and venture capital investors. Accredited investors, known on the site as dragons, review each company, asking questions and making comments. If an investor findsthe company meets their investment needs, they place a bid to fund the company in exchange for a percentage of ownership. The entrepreneur may then accept this bid or counter offer with their own bid. This process goes back and forth until the investor and entrepreneur agree on a price and percentage for the investment. They then exchange legal documents and sign the formal investment agreement, transfering funds to the company. In addition to being a fundraising platform, Startupbidder also provides services to the entrepreneur to make it easy to listand value their company. There is a one-click process to import their company from CrunchBase, AngelList, or Startuply. If they are an application company, they may import their app from the App Store, Google Play, Windows Marketplace, or the Chrome Web Store. Once imported to the site, an entrepreneur can access tools to aid in creating a valuation, an investor presentation, and a Business Model Canvas. These tools not only aid an entrepreneur in developing their business, but also increase the chance of obtaining funding from investors. Crowdfunding is one of the latest buzzwords in investment. The success of Kickstarter, Indiegogo, Crowdcube and others have brought many entrants to the market. There are a lot of different approaches floating around and it remains to be seen how crowdfunding is going to work for startup companies, especially the new regulations being promulgated by the SEC. But it's a field with promise and one that has the potential to revolutize early-stage company investment. We'll be keeping an eye on Startupbidder to see if they can find success in the crowdfunding market.More