Crowd Valley COO Paul Higgins facilitated a workshop on crowdfunding in Berlin on May 25th with a group of entrepreneurs, investors, and finance professionals at the fifth SDW Gründer- und Unternehmerforum (Founders and Entrepreneurs) conference.
Some of the most intriguing discussions that ensued involved entrepreneurs running companies with significant intellectual property behind them in sectors such as biomedical technology, which require significantly more capital than a typical early-stage startup.
As we see more and more Crowd Valley customers operating crowdfunding platforms or peer-to-peer investment marketplaces in niche industries, it is interesting to think about the role of these platforms for companies whose most important concern is to protect the privacy of their technology assets.
There are usually three points during a crowdfunding process at which an entrepreneur would submit information about the company:
For an entrepreneur of a high-tech company looking at crowd-based investment, the concerns about sharing critical information publicly are understandable. But due diligence during the closing process of a crowdfunding round is not necessarily very different from due diligence from a more traditional angel or venture round. If your investors would expect to see certain information before they invest directly then they will most likely expect to see the same information when investing through a crowdfunding platform.
However, entrepreneurs can reduce this risk by choosing the right platform for their funding round, which focuses on their sector and attracts investors who will understand the proposition and concerns about sharing too much information.
You can see Paul's full presentation on SlideShare here:
Crowdfunding in Europe from Grow VC, part of the Grow VC Group
As we see more and more Crowd Valley customers operating crowdfunding platforms or peer-to-peer investment marketplaces in niche industries, it is interesting to think about the role of these platforms for companies whose most important concern is to protect the privacy of their technology assets.
There are usually three points during a crowdfunding process at which an entrepreneur would submit information about the company:
- When applying to join a crowdfunding platform, to help the network operator decide whether to allow your listing on their site;
- When completing one's profile, to help potential investors understand one's proposition; or
- When going through due diligence, to help potential investors make a final decision.
For an entrepreneur of a high-tech company looking at crowd-based investment, the concerns about sharing critical information publicly are understandable. But due diligence during the closing process of a crowdfunding round is not necessarily very different from due diligence from a more traditional angel or venture round. If your investors would expect to see certain information before they invest directly then they will most likely expect to see the same information when investing through a crowdfunding platform.
However, entrepreneurs can reduce this risk by choosing the right platform for their funding round, which focuses on their sector and attracts investors who will understand the proposition and concerns about sharing too much information.
You can see Paul's full presentation on SlideShare here:
Crowdfunding in Europe from Grow VC, part of the Grow VC Group
About the author - Paul Higgins
Serial entrepreneur with an operational background in finance and technology companies. Paul was previously responsible for the development of the Crowd Valley product suite as part of the Grow VC Group.
Paul is a regular speaker on new financial models and crowdfunding and has been involved in working with Crowd Valley’s pioneering customers across the financial services sector, as well as advising global institutions such as the World Bank and national regulators such as Italy’s CONSOB.
Paul has over a decade’s experience working in various operational, sales, marketing, and product roles within technology companies, including two B2B startups that have achieved eight-figure exits following 100% year-on-year growth. He started his career in product development and testing roles at IBM’s Hursley Research Lab in the UK before going on to eBay, UBS, and Barclays.
Paul holds an M.A. (Hons) in Computer Science and Philosophy from Churchill College, Cambridge University. He has lived and worked in Texas in the US and Portugal, and speaks fluent Portuguese and French.
Serial entrepreneur with an operational background in finance and technology companies. Paul was previously responsible for the development of the Crowd Valley product suite as part of the Grow VC Group.
Paul is a regular speaker on new financial models and crowdfunding and has been involved in working with Crowd Valley’s pioneering customers across the financial services sector, as well as advising global institutions such as the World Bank and national regulators such as Italy’s CONSOB.
Paul has over a decade’s experience working in various operational, sales, marketing, and product roles within technology companies, including two B2B startups that have achieved eight-figure exits following 100% year-on-year growth. He started his career in product development and testing roles at IBM’s Hursley Research Lab in the UK before going on to eBay, UBS, and Barclays.
Paul holds an M.A. (Hons) in Computer Science and Philosophy from Churchill College, Cambridge University. He has lived and worked in Texas in the US and Portugal, and speaks fluent Portuguese and French.
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