Just like last year, the Live Crowdfunding Experience has sparked interest from startups the length and breadth of Norway.
We’re receiving many questions from curious entrepreneurs, so we took contact with Aleksander Langmyhr from FundedByMe, who in collaboration with Technoport, Innovation Norway, Kunnskapsparken Nord-Trøndelag and NTNU Accel, organises The Live Crowdfunding Experience.
Hello Aleksander. We have many exciting companies that have expressed interest in the event, while being a little unsure of the process. Can you explain how it works?
Hey, I can! The concept of equity crowdfunding is the still new so it’s understandable there are many questions. One can look at FundedByMe as a very good tool for companies considering raising capital to test interest in the market.
Let me take you through our process step by step.
Firstly, the company creates a presentation on the FundedByMe website. Those startups chosen for the Technoport event will be closely monitored by us to ensure they create the best possible presentation.
Do companies need this help?
Often they do. We have seen many good (and not so good) presentations on our site. I have personally worked with creating this type of presentation when I worked with the purchase and sale of large businesses, so the startups get a high level of help.
After companies have developed their presentation and are happy with it, they can publish it on the website. This is what we call “go live” on our site.
When your company is live on our site, anyone can view the presentation. If they think it’s interesting enough that they will consider investing, they can indicate their interest. This is done by pressing “invest” and indicating the sum they wish to invest.
So money is not transferred straight away?
Correct, there is no money transferred. It is only an indication that you are interested if the company chooses to fetch money at a later date. We see that almost all investors who express their interest do join the share issue, if and when the company implements it.
This leads me on to the next phase. When the company is “finished” on our platform, we have 45 days by default, so they see how many people have expressed an interest in investing.
And for how much …?
Yes that’s right, how many are interested in investing, and how much they have collectively indicated that they want to invest.
Sometimes the interest is very high and sometimes the interest is lower than we hoped for. Either way, the use of FundedByMe gives the company a good basis for deciding whether they choose to raise money or not.
After this process we come to the last step. When companies are finished on the platform (after about 45 days) they will decide whether to accept the investment offers or not.
So the startups can pick and choose?
Yes. If the company chooses to follow through with a share issue, they invite only the people they want to have as investors. If they are not experiencing enough interest and choose not to pick up the money, this of course is entirely up to them.
One last question, would you recommend companies to apply as a participant to Technoport 2015 in March?
Hehe, leading questions, but of course, yes! Normally, FundedByMe takes a percentages of money that companies choose to retrieve. For companies that are selected to participate in the Technoport event there is no charge at all, it’s completely free!
Everything is free?
Yes, everything is free, from our assistance to prepare a good presentation to the use of the platform itself. There are no direct costs for the startups, because our event partners Innovation Norway, Kunnskapsparken Nord-Trøndelag and NTNU Accel cover the cost.
In addition, participants will get a lot of attention through pitching on stage at Technoport 2015, in front of hundreds of people, just look how it went with Assistep Last year. Their participation did they subsequently received investment from a seed fund, in addition to over half a million kroner from investors who had expressed interest via the platform.
The deadline for applications is 15th December. See full details of the event and how to apply here.