Danny Kelman of Crowdboarders Speaks on Social Investing
Posted on March 31, 2014 by Michael Ibberson Updated March 31, 2014
Michael Ibberson Of CrowdClan speaks with Danny Kelman, CEO of CrowdBoarders, to talk about his latest venture and how he plans to integrate a social networking platform directly with crowdfunding.
Michael Ibberson of CrowdClan.com: Social networking and crowdfunding are two of the same. CrowdBoarders’ combination of the two is a particularly interesting idea. Right now, CrowdBoarders offers a variety of neat features: Could you highlight a few major benefits in becoming a Crowdboarder? How can a crowdfunder extent these benefits to their campaigns?
Danny Kelman of CrowdBoarders.com: Firstly in our mind crowdfunding and social networking couldn’t be further apart, one of the main differentiators we have seen from people raising the money they are looking for and failing isn’t based on the merit of the idea but their own networks. People have friends on facebook and followers on twitter, but could you tell me the average of one of your twitter followers last four investments, what industries they were in and where they spend the majority of their time looking for investment opportunities? No of course not. This is where CrowdBoarders comes in, crowdfunders who want to be fully immersed in a network of visibility and endless capabilities become crowdboarders, the rest simply remain on their first generation platforms.
Michael Ibberson: As CrowdBoarders is currently invite only, what stand-out qualities do you look for in an applicant?
Danny Kelman: This is only because we are pre-launch, we are inviting people who want to create crowdboards first so people will have things to look at when the site is live. Once we launch anyone will be able to become a CrowdBoarder.
Michael Ibberson: CrowdBoarders advertises “no time deadlines.” As well, you allow members to post investment opportunities for free. What inspired these decisions and what has been the audience’s general reception? They seem to set you apart from a lot of other portals.
Danny Kelman: Raising money for free doesn’t exist in todays world, because currently crowdfunding companies are building their businesses off of a financial model, not a technology one. We have analyzed a lot of markets and their migration from offline businesses to online one in particular being ticket sales, you wouldn’t dream of charging an artist or concert promoter a % of their ticket sales so why an entrepreneur with their idea.
We have found the most open way to generate revenue to build our network is to charge those investing a small processing fee instead of taking a massive portion off of the person raising funds. This way it all ads up the same but this way the person creating the CrowdBoard receives what they are looking for and the person investing knows exactly how much of their money is actually being invested and how much is being paid in fees. So someone building a crowdboard to raise $100,000 would actually receive $100,000 instead of $95,000 and someone investing $50 wuld invest $50 and pay $6 in processing fees. We have always found an honest and up front approach to business is always key in building success.
We didn’t want to focus on raising money quickly; we are focused on raising money correctly. If you have a great idea who says it has to raise money within a month, maybe your industry isn’t ready for it but it is the next great idea of next year. CrowdBoarders isn’t trying to copy the traditional model of crowdfunding, in fact you will see everything done on our site differently and we believe for the better and this is what our patents protect.
The general perception of the audiences we have been speaking too, and the conventions we have been doing is normally “oh, of course” we have made some very simple changes to the way people can raise money online and from the feedback we are receiving I think people see it as the same way we do. People are very confused about this industry I always get asked questions about sites and what they specialize in, it has been our vision to bring them all into one network with all sorts of fundraising from loans to equity, charity and reward happening in one place putting crowdboarders at the center of the action being able to be apart of everything that is going on. The constraints and limitations of crowdfunding have been lifted with crowdboarders we have built a site where people have freedom.
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