EQUITY CROWDFUNDING AND WHY WE CHOSE IT
Here at ScrapMyMap we have a plan, a plan to take the social travel market by storm. Our roadmap is clear and goals are set, but now we are at a point in our journey where we need to raise funds in order to move forward. Before I get into why we chose equity crowdfunding let me explain a little about ScrapMyMap.
Last year we launched a beta of ScrapMyMap, a new and innovative social network that allows users to create Virtual Scrapbooks to Document and Share Travel Experiences. ScrapMyMap has been beautifully designed with blogs, galleries, statuses, tips, maps and check-ins, which people can then share with others to help them gain travel inspiration as well as allowing users to reminisce on their own travel experiences.
Now we were very keen to crowdfund, we love idea that a number of people could help fund ScrapMyMap and it would also give us confidence to move forward knowing a number of backers believe in us. But we had a problem, we have no ‘reward’ to offer.
Traditionally crowdfunding works by the project owners giving away rewards to the backers in return for money. A great example is the Film Ferrania project… they saved an analog film factory managing to keep 35mm film alive for the next 100 years for photographers. In return for backing the project they offered rolls of analog film, but we had no ‘analog film’ to offer as we are a purely digital service. But we did have something even more exciting to offer…. equity.
We decided to use the Seedrs platform because it allowed us to crowdfund in return for a percentage of the company, no matter how small the investment. A shareholder then has partial ownership of the company and stands to profit should the company do well.
Once we raise the funding for phase two we will build our mobile platform as well as aggressively advertise and market the service. Things are looking promising for the future with our company currently being valued at £250k and predicted revenues of c.£1M by year three.
Obviously investing in any startup is risky business, but as both an investor and project owner I love the idea of equity crowdfunding. For me equity is the best reward that can be offered as you never know when you might buy 0.5% of the next Facebook.