Equity crowdfunding, but votes take the place of investments. Those that voted on the most popular idea receive a payout

by Jbrahms33. Posted on Sep 17, 2020    26    13


Payouts come from a fee required to advertise a product or service on the platform.

Vote count would obviously have to be hidden so you don’t just vote on the most popular entry.

Thoughts?


Comments

IUBIU 1

I think certain cryptos already do this.

  Jbrahms33 2

How so?

IUBIU 1

I have seen similar concepts across the crypto scene. The first that came to mind for me was ARK with it's DPOS consensus.

paveltashev 1

Questions: (1) Who votes - investors or anyone who visits the website? (2) What is you business model? (3) Do you have investors and a business that needs funding in order to test?

  Jbrahms33 1

(1) Anyone votes. They get the satisfaction of playing the role of little investors without any risk. (2) Startups pay a small fee to be advertised on the platform, we take a cut and the rest is given to the smartest “investors” (3) I don’t have anything at this point. It’s in the earliest stages

paveltashev 1

(1) Not everyone has the expertise to invest. That means that the quality of the vote will be low. My suggestion is the voters to have rating. The consequence is that votes won’t be equal but the quality will increase. (2) I’d suggest freemium model. Founders list their startups for free and pay to be advertised and listed on the first page. Reason: sometimes founders don’t want to pay because they have limited budget and also asking them to pay before you build a strong brand is risky. Taking cut when the deal is closed is a good approach. How much will you take? Ideally 1-2% of the deal is good. What do you mean by “smartest investors”? (3) Ok, my suggestion is first to validate the hypothesis by attracting real investors. In that way you will know that the platform has market fit. The next step is to find a few startups and build an MVP and test.

  Jbrahms33 1

(1) I think everyone should be treated as an expert, even if they aren’t. But a rating system is a good idea as well. (2) the users are acting as investors and receiving the payout. The payout comes from the fee the startups pay to be advertised on the platform. It may seem like a counterintuitive approach, but with a possibility to get a payout for choosing the best ideas, you are much more likely to look closely at each submission. The smartest investors are those that pick the ideas with the most potential (3) that’s a good plan, thanks

BigPapiPR83 1

The problem I see is that the income would not nearly be enough to cover output. In efforts to bring inspiration and offer a more financially balanced society I have always tinkered with Crowdfunding in the name of creating small community based startup companies.

I believe that with unity we could empower people to start small family operated companies. The theory with a VOTING system is that majority votes will predict the financial success of the company. We would all be analyzing and reading short company Bio and elevator Pitch and between all the people voting the majority should be a good idea/plan. With this theory of using Crowdfunding and Votes to offer start-ups a clean slate of basically no overhead or risk....plus the fact we all votes majority then we can assume that the company has a good idea that will appeal to the masses just as it did by securing the majority vote. Here is where I am at now working the Crowdfunding formula that would put 100,000 CASH into the hands of a person to start a small community community company

At the moment I believe 100,000 Cash is enough to kick start a wide range of small community based companies like neighborhood Coffee Shop, Bike Shop, Flower Shop, Ice Cream parlor, Mobile Taco Truck or other food truck.

The formula I like now is one where 5,000 people unite into a " ENTREPRENEURS EMPOWERMENT APP " and basically when the very first 1,000 people donate 20 dollars each tge total is 20,000 dollars...... those 1,000 people after donating 20 bucks each Also write about what company they would start with the 100,000 Cash....they would write a small paragraph and can even have links to example their YouTube channel for in person explanations about how their company would operate. After all 1,000 people donate 20 bucks and then in the APP write their company Pitch then all 1,000 people recieve ONE virtual vote and now they must use tge vote on an Idea from the other 999 people. The Votes would be anonymous to everyone until the last vote is cast because then the company idea with the most votes is selected for the FINAL voting round. This would have to happen 4 more times and then the total people at Final table will be 5 people and then those 5 people recieve a Virtual Vote and the 5 use vote on eachother......most votes then that person now recieves the 100,000 to start the company.

The theory on voting is that majority usually will be voting into existence companies that are prone to succeed.

I dont know if it should be as the example above or more simple one example...... 5,000 people donate 20 bucks, write company spiel, then recieve 1 Virtual Vote to use on one persons company idea from the other 4,999 people. All votes are anonymous until the last person ....person number 5,000 when that person logs into APP and donates 20 dollars and votes then all will be released and everyone can see the persons idea with MOST votes to recieve the 100,000.

I like this because since everyone can see where votes went at the end it could create the transparency needed to continue. I envision this APP with example 100,000 people who downloaded it from Google Playstore free.... we dont need the 100,000 to start.....only 5,000 would be ENTREPRENEURS with 20 dollars. Since there are 100,000 people basically there can alot of times come forward 5,000 people with 20 bucks and a belief in there dream.

Another cool thing is that people can recieve comments and actually LIVE feedback about their company idea....example from 4,999 other people if you get 1 Vote and people actually took their time and wrote in comment section of your idea....that your idea sucks ...then maybe this idea you have wont survive in the real world or maybe just needs modified.

All in all I believe that this would be a great learning experience for many up and coming entrepreneurs. I hope some developers make this App like how I talk about it.

  Jbrahms33 2

Your idea sounds similar to something I would create. I have other posts here about early-stage crowdfunding platforms that give opportunities for ideas to grow with a similar mechanic mentioned in your reply.

I think the biggest problem is the complexity. Kickstarter took off because it’s designed like a simple marketplace and consumers are the demographic that keep it alive— albeit creative consumers.

If there was a simple platform where consumers act as “little investors”, then they can have fun being exposed to new ideas with a chance to make money and feel smart

FlashyGirlz69 2

The funding from marketing and paid promos are not going to be enough. You should try to get funding from the Hollywood rich and biz billionaires.

  Jbrahms33 2

It’s not exactly aimed to fund startups, more to give them exposure and incentivize people to look into them more and make profitable decisions. The money goes to the voters, not the startup

rmarte3 4

Sounds kinda of crazy! I love it. I'm in.

  Jbrahms33 2

Okay good, you’re hired