Mainvest — Reshaping The Landscape Of Brick-And-Mortar Financing
Connecting small business entrepreneurs with local investors who care, empowering communities and rebuilding the American Dream.
The Problem
Access to capital is the number one challenge for small businesses. Small-medium-business (SMB) loan volume dropped 69% following the Great Recession in 2008, and never fully recovered. Banks don’t know how to lend to early-stage SMBs. Institutional lenders often require steep collateral and an operating history before providing loans. Right now, banks tell communities which businesses they need. Mainvest believes that it’s time for the market to be able to vote with their wallets and build their own Main Street.
What The Company Does
Mainvest is the investment platform for Main Street, giving small businesses the tools they need to turn anyone including friends, family, and customers into active supporters and investors. Through Mainvest, every American, regardless of wealth or status, can invest, impact, and share in the success of small businesses across the country. As an online investment portal, Mainvest is able to serve both sides of the marketplace seamlessly, providing new pathways to capital for small business owners and democratizing access to investment for individuals.
Market
Small business financing is a $600 billion market in need of disruption. There are between 50 and 60 licensed funding portals utilizing RegCF right now, but there is only one using the revenue sharing note to focus solely on brick-and-mortar small businesses.
Business Model
Mainvest makes a 6% fee on successful raises, only making money when a business has a successful campaign. There are no upfront or investing fees.
Traction
The company’s user base has grown to over 30,000 users within the past 1.5 years with consistent quarter-over-quarter growth across both investment and business launch metrics. They have formed solid partnerships with cities, institutional lenders, non-profits, and small business development organizations around the country.
Founding Team Background
CEO and Co-Founder Nicholas Mathews previously worked across a multitude of roles at Uber, joining the firm in 2011 as one of the first 40 employees to launch the Boston market. During his time at Uber, Mathews built and scaled the New England marketing organization, implementing key initiatives that drove growth on a company-wide scale. Mathews is an expert in marketplace scaling, having developed many of the strategies used by Uber to accelerate liquidity across both sides of the platform. Co-Founder and CTO Felix Le Dem previously ran a software agency specializing in the development of MVPs for startups without technical co-founders. Before that, Le Dem worked at StreetShares, a fintech startup, as a software engineer and ScrumMaster. Co-Founder Benjamin Blieden previously worked as a manager of complex financial instruments valuation at Grant Thornton LLP. In this role, he managed a team of financial analysts that provided consulting services for a range of companies including startups and large publicly traded companies.
What They Need Help With
Mainvest is always looking for small businesses looking to raise capital as well as for investors across all levels of experience and status who are interested in learning more about investing locally through revenue sharing notes. They will be fundraising soon. Connect with the Mainvest team.
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