01 // Background and Problem Statement

Background

'The U.S. Securities and Exchange Commission voted in October, 2015 to approve rules governing the sale of securities through online equity crowdfunding. With the new rules (collectively known as Regulation Crowdfunding), small and medium-sized start-ups can now raise capital for their enterprises by offering equity to anyone, rich or poor, accredited or unaccredited. This is great news for companies that have limited access to high net worth investors and institutions like venture capital firms.

Under the new rules, small businesses and startups would be able to solicit up to $1 million annually in crowdfunded securities investments.

In the US, three businesses are launched and $1,532 of venture capital is invested every second. That adds up to $48.3 billion annually. This means that startups can now pursue small-scale crowdfunding for initial investment rounds, rather than large singular investments traditionally supplied by the accredited investor. With this sea change in investing anyone with a bank account can buy equity shares in the next Uber, Pinterest, or Airbnb.

How do we create a investing platform that embodies this newly-broken barrier for entry while being fun, exciting and easy-to-use?

Problem Statement

People with small amounts of disposable income want to find ways to make their money grow, but traditional investments can be intimidating and impersonal to those just starting out. Startup equity is a great emerging investment opportunity for the everyday person, with opportunities for significant financial and emotional returns.

Potential investors need a way to get informed and discover businesses they can invest in. There must be a low barrier to entry, both in terms of cost/effort and in terms of domain knowledge.