New Source for Funds!

[bizdev]

http://Preneuraholics.com is now LIVE!

Preneuraholics Unite is a new funding source that uses peer to peer GIVING. Not loans.

Preneuraholics.com will bridge the gap for those that have not been able to obtain funding from bank loans (SBA or other), venture capital, angels or grants.

The premise relies on the power of unity. If entrepreneurs (preneuraholics) unite together to help each other, we can get our new small businesses funded.

If you need money, it's a must see.

***NEW INTRODUCTORY OFFER***

Any projects posted through March 1, 2010 will have their registration fee refunded in full if they receive no funding during their initial 16 week timeframe. You have nothing to lose and plenty to gain.

Donors are requesting more projects to choose from! Post your request now to qualify for the refund.

[bizdev]

We are getting ready to test the new website prior to launch. Stay tuned.

In the meantime...
The concept for this new funding source is revealed in the blog below. Take a look and tell me your thoughts.

This concept takes peer to peer lending and turns it upside down.

It's time for change! It's time to stop relying on old methods and shake things up! We need to come together to help each other.

[akula]

We are about 2 wks away from launching a new Internet platform that will provide a new funding source for startups.

Preneuraholics.com will bridge the gap for those that have not been able to obtain funding from bank loans (SBA or other), venture capital, angels or grants.

The premise relies on the power of unity. If entrepreneurs (preneuraholics) unite together to help each other, we can get our new small businesses funded.

More info can be found in the blog below. Take a look. If you need money, it's a must see.

Stay tuned!

good stuff

i've been a long term supporter of diversification for founders
i think entrepreneurs should finance other entrepreneurs for a lot of very important reasons
i hope u do well and learn from dozens of failed matchmaking ventures out there

it's very easy to screw this project up if you avoid implementing sound advice from people who seen these kinds of ventures flop over again again and again

what's your marketing strategy?

[akula]

ohhh crap, jst read your blog...bloody shame...all this good energy going to a complete waste when it could be applied elsewhere
....i take it you've neglected surveying your target market in starting this venture? why, sylvia? don't you want to know whether we'd use your product before you've spent all this time launching it? don't you want your project to be successful?

[bizdev]

You didn't explain why you went from "good stuff" to "oh crap...bloody shame".
What is it that suddenly bothers you so much?
You said you think entrepreneurs should finance entrepreneurs then you say my concept is a complete waste.

Please elaborate. I'm looking for the feedback.

[akula]

You didn't explain why you went from "good stuff" to "oh crap...bloody shame".
What is it that suddenly bothers you so much?
You said you think entrepreneurs should finance entrepreneurs then you say my concept is a complete waste.

Please elaborate. I'm looking for the feedback.

okey dokey sylvia...let's work through this one step at a time and get a positive outcome for you

1. the problem: what problem is Preneuraholics solving? ok, so from the founder's perspective, it's a financing problem, and from the donor's perspective it's a number of unquantifiable altruistic reasons....technically, not the best problem to be solving (i.e. it's unquantifiable), but..ok, we can tick that one off. tick for problem.

2. the solution: help startups raise finance through a platform for soliciting donations. that, of course, is really where the concept fails. it's an inelegant and an ineffective solution to the problem you're trying to solve...the solution fails for a large number of reasons including adverse selection and moral hazards (i.e. the solution will only attract bottom of the barrel entrepreneurs, or it will literally attract fraudsters who make up stories to solicit fraudulent donations)...plus there are a lot of other problems...not the least of which being the projected financial statements (i.e. Preneuraholics would need to be booking millions of dollars in donations before it can afford to support even 3 full time people on pay roll...something that even the most successful charities in the country have grave difficulties achieving..in other words, the venture is unsustainable because it has no realistic business model).

to move forward: do a survey to find out what percentage of entrepreneurs would donate money to others for the purposes of starting ventures. personally, discounting bullshit answers, i think the result will be a borderline 0%...for a lot of obvious reasons. however, you never know..maybe you've got a hit on your hands. maybe entrepreneurs are falling over them selves to give away money to anyone and everyone who wants to start a "business".

my advice to you: if you want to help needy entrepreneurs start businesses, do what works. start a microfinancing project like kiva.org. these organisations solve the relevant problem more effectively than your solution.

do you see the issues that i'm talking about?

[bizdev]

Ah, very good feedback. I am happy to address your concerns.

Firstly, do understand that each and every one of your points has been addressed in the design and concept. I worked on the concept for more than a year prior to proceeding.

The potenetial for fraud was one of the first issues I worked through. One way to control that problem is by charging a fee to post a request. A true business owner (or wannabe) will understand there is a cost associated with their business startup. The fee should be considered an investment in their business.

A requirement for anyone posting a request for funds will be their providing "proof" of startup. They should be able to show they have begun the process of startup by providing items such as domain name, business registration, financial statements such as startup costs, business plan (without proprietary information for confidentiality reasons) etc.

This is not a charity. Preneuraholics Unite is a business providing a platform for others to post their business startup projects. There is no need to book millions of dollars to run this website, nor will we need to book millions in donations to fund these start ups.

The basic premise is to bridge the gap for those that have not been able to obtain funding from bank loans (SBA or other), venture capital, angels or grants. However, we're talking about small businesses. Not million dollar ventures. It would be entirely unrealistic to think we could raise enough donations for anything other than a small startup. We're talking from $1000 - $50,000. While there is no minimum or maximum, obviously a smaller request will be more doable. That is the market we are targeting.

Kiva deals with microloans to 3rd world countries. And, interestingly, the money that is loaned does not go directly to the requestor. It goes to microloan "banks" that disseminate the funds. The money you loan may not be reaching the person you were attempting to help. But, that is a whole other discussion.

Preneuraholic Unite intends to help entrepreneurs in the U.S. Other organizations are doing their part to help the rest of the world.

As to whether or not entrepreneurs will be willing to help each other...the point of this concept is to attempt a change in the funding system.
With hundreds of thousands of us in search of funding, we should be willing to come to each other's aid. We should be understanding of each other's difficulties and hopefully be willing to give a little something out of our pockets to help our neighbor. It's tough times, we all know that. But if $5 or $10, multiplied over and over, can help one person start their business and we repeat this and can help many others launch their dreams, imagine how this can change the whole system.

Is it a pollyanna approach? It doesn't have to be. Look at all the folks out there that have asked for donations to help them get out of debt or raise money for college and have gotten thousands upon thousands of dollars for their cause.

Preneuraholics Unite wants to take the same idea but create a niche that fills the need for entrepreneurs in need of funding. We can do it people! We can create change!

[bizdev]

(i.e. the solution will only attract bottom of the barrel entrepreneurs,

So entreperneurs with achievable dreams (not million dollar enterprises) are "bottom of the barrel"? It's attitudes like that that have put business ownership out of reach for the avergage Joe and Jane. Whatever happened to mom and pop enterprises? That's who I want to help. That's who most of us are.

[ebforex]

Hi bizdev, I believe you have a winner here. This is a great idea. I too am an aspiring entrepreneur who has been having trouble obtaining funding for my small business. I truly hope this is a success!

[veikoh]

Why should any entrepreneur donate without having a return to his investment?

[bizdev]

Why should any entrepreneur donate without having a return to his investment?

Why would you need a return on a $10 "investment"? The return is in the satisfaction that you have helped a fellow entrepreneur. That's the point of small donations. Expecting a financial return is not 'shaking things up' and attempting to change the system. It would be a loan. That's not what Preneuraholics Unite is about.

[Sportsfan12]

Hi there,

If you believe in your vision, it can work. Just be sure to make your vision very clear to others.

The concept behind how your site will function has worked in other scenarios, so I think you have a shot.

The challenge is to get people to do something different/new and embrace change.

I am rooting for you!!!

--Reginald

[bizdev]

Hi there,

If you believe in your vision, it can work. Just be sure to make your vision very clear to others.

The concept behind how your site will function has worked in other scenarios, so I think you have a shot.

The challenge is to get people to do something different/new and embrace change.

I am rooting for you!!!

--Reginald

Thank you so much for your words of support!
Embracing change. That's it in a nutshell.
It's only not doable if we don't do it!
This can and will work.

[ZingerIntl]

I have a question.

With hundreds of thousands of small businesses and start ups looking for money, are you going to only be uniting the small businesses? Or are you going to open up to all the "employees" who can help get us "job creators" up and running, so in the long run they can always have a job? Reason I ask is RULE #1 in getting funded... Only ask people with the ability to fund you.

Now, I am not being selfish just honest and I raised all my own money and I did it the hard way. If, when I started looking for money, you asked me to donate $10 to Joe in Idaho, I woulda said, WHY? I am looking for the same thing as Joe? This seems anti productive to me. I can donate $10 to 8000 start ups, no one gets started, and I get nothing. Now tho, I spend many hours a week mentoring and investing in new entrepreneurs and their dreams.

If you go to the public and ask all the scared, lemmings (not to be rude) for $10 to help create more jobs in the country, which helps with everything in the country, then they will even hear the Pres talking about how entrepreneurs of today and tomorrow are the ones that are going to save this country. And for $10 donation this could multiply into hundreds or thousands of jobs near you.

I wish you great success.

[StealYourDreams]

Interesting.