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As any of our readers can tell you we are amongst the biggest fans of the opportunity that crowdfunding presents for democratizing finance in the United States and around the world. Many of the industry leaders speak to the impact that crowdfunding will have on the not-for-profit sector, new product launched and of course everyone’s favorite technology. There have been literally thousands of articles speaking to the impact that equity crowdfunding will have on angel investors and private equity. We agree with all of these predictions, there is no question that crowdfunding will impact all of the above and others not named that have gotten no shortage of press. Here is our opinion:
The most positive impact crowdfunding will have on our economy and job growth will come from small local businesses in the form of franchise opportunities. The number one barrier individuals have to owning their own business is start-up capital. These are people who have worked in franchise operations for years, they run the business, understand the business and what it takes to succeed. Whether they manage a McDonalds, Subway, Dominoes Pizza or Ace Hardware, they have the know-how.
All these tens of thousands need is the start-up capital to open their own outlet, these are investments that are not being competed for by angel investors or hedge funds. These are not exciting investments but they are profitable ones. These investments put real people to work and put small, local businesses in business. Supporting local communities with their marketing efforts and growing local economies.
We believe that Sprigster.com gets this. They have started with donation based crowdfunding for veterans looking to own franchises. These donations are not necessarily game changing amounts but they certainly help. As equity crowdfunding rules are established by the SEC under the JOBs Act, Sprigster will transform in to an equity crowdfunding site focused on putting small business people in to franchise opportunities.
The “Boost a Hero” program is one to be applauded and a smart start allowing Sprigster to learn the business while we all wait for the equity crowdfunding rules. Great way to build their Crowd and begin to get the name Sprigster out there (we found them and normally we are contacted by crowdfunding platforms). Have a look at Sprigsters “Boost a Hero” program and bookmark them as a crowdfunding site to revisit once equity crowdfunding rules are written.
We will be watching this one closely, as again, we believe Franchise Finance through Crowdfunding will do more for creating jobs and driving change than any other function of the new democratized financial revolution.
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