Crowdfunding to support a great idea or cause isn’t a new phenomenon. In fact, one could even go on a limb and attribute crowdfunding to Joseph Pulitzer’s campaign for building the pedestal on which the Statue of Liberty stands in the 1800s. Modern day crowdfunding has taken the world by storm and platforms like Kickstarter and Indiegogo have thrust this financial model into the mainstream. These campaigns, often playing on emotional or patriotic sentiments, encourage people to collectively pool in money to reach a financial goal within a limited time frame. If a financial goal is met, funders may get a tiny memento or reward as a gesture of appreciation. But what if you could have a bigger slice of the pie?
Crowdinvestment for grownups
Crowdinvestment, or equity crowdfunding (for grownups), enables the general public to collectively pool money to support existing, growing businesses and SMEs and in return receive equity in the business. Rather than having your name floating around in the credits of a super cool indie flick, you actually have the chance to hold shares in a business you believe in and potentially be part of the next big thing. This is where Eureeca comes into play.
We are a crowdinvesting platform which is the brainchild of former investment bankers and entrepreneurs, Chris Thomas and Sam Quawasmi. Unlike donation based crowdfunding platforms, Eureeca enables real investments in businesses and provides average individuals the chance to earn equity in a business. We understand that other crowdfunding models follows the reward-based platform where backers or supporters pledge for projects in return for rewards; there is no exchange of equity. Eureeca launched out of the UAE and is currently focused on Middle East based businesses but our platform is global, meaning we are able to accept funding proposals from SMEs even outside of the region.
How it works
Each business application submitted to us goes through a rigorous process of checks to ensure that the business exists, operates, is sound, and is fit for funding. The SME submits their business plans and projections for a crowd of investors to review online and invest in a business they believe in. From the investor perspective, Eureeca is a platform that is sector agnostic, meaning that we showcase a wide array of businesses in sectors that operate beyond the scope of typical investment platforms (recycled plastic, anybody?). We are also more accessible for the average investor. Our platform is transparent and allows potential investors to make informed decisions and investments for as little as USD100, meaning more people can be a part of a business’ growth.
US President Obama’s JOBS Act has helped further consolidate the legitimacy of equity crowdfunding by facilitating the growth of crowdinvestment platforms. Our very own success story Nabbesh has seen the ultimate power of the crowd — their business reached their funding target in just 12 days!
We’re here to fill the gap for businesses who are caught at the crux of post seed financing and the need to scale by giving them the necessary tools, funding and mentorship they need in order to thrive in the post-recession market.