funding business & start-up captial

[bizz]

it's very hard finding start-up capital nowadays. especially young entrepreneurs with gread ideas have a hard time getting capital from the banks. was thinking about forming something like a credit union with about 10000 youngentrepreneur members. this way, entrepreneurs won't have to go to the banks anymore. they'll just have to submit their business plans / ideas and we'll all vote on the best business ideas. everyone would contribute $50 - $100 on a monthly basis towards the fund. that's $500'000 - $1'000'000 every month. with this amount of money we could invest in start-ups or buy businesses and share the profit. that's just a basic idea. what do you think. hope you guys can come up with more and better ideas.

[elliottrobertsje]

I am interested what kind of revenue stream will this create for investors I would be really interested in helping you get this going please contact me with more information.

[daveb1]

What happens when the business fails and makes no money? Who controls the decision making with 10,000 people having there hand in the cookie jar. I know you mention voting but I think it would be hard for investors to constantly check back in to vote on their favorite projects and voting is also easily rigged on the internet. It sounds like you want to create some form of crowdsourcing. I would look at the many crowdsourcing websites that currently exist and maybe tailor a spin off based on a crowdsourcing platform that already exists. Finding 10,000 people to give you a $100 a month seems very ambitious. How would you plan on convincing that many people to give you that much money when they can make there private investments with probably a higher return at a fraction of the cost. It's a cool idea it just seems there are a lot of details that would need to be sorted out as well as some serious start up investment just to get a functioning website and marketing campaign off the ground. There will probably be a few legal issues and other business concerns you will need to sort out as well as the logistics of an idea of this magnitude will not be easy.

[bizz]

thank you daveb1 for your reply. first of all this fund is not only going to be for me but for all the youngentrepreneurs investing in it. the profits are going to go to every investor who invested in a venture. not asking anyone to give me money. we'll all agree to contribute towards our fund. this is going to be no crowdsourcing venture but a profit based business which makes money for those funding it. secondly i don't think we are going to be more than 5'000 members. probably less than 4'000. 10'000 was just an example / idea. before we invest in a start-up or a business we're going to do a lot of research and go through financial reports. and if the investments should fail then we'll liquidate the company or acquire it and resell it. don't you think even the largest VC funds in this world make bad investments and end up liquidating the companies. it happens to many succesful VC's who invest huge amounts of money and if they fail they always find an exit strategy and get their money back. ofcourse we are going to have someone take care of the finances, legal issues, administration activites and so on. but is this something impossible to do??? we as entrepreneurs shouldn't give up. all the big corporations look impossible to start but they started from somewhere, so should we. regards bizz