Good Finance is a platform specialized in equity-crowdfunding, facilitating the financing of start-ups and growth SMEs , by giving individuals the opportunity to become shareholders of these companies.
In a context where funding sources are much less accessible than before, private or professional investors finally have the opportunity to “boost” the real economy, while shaping their wealth as they see fit.
The site was conceived in this logic: to offer a real power of decision to the investor as well as a great freedom of action to engage with other members of the community (entrepreneurs as investors) to support a specific project . Any intermediary is removed, only you estimate where it will be possible to obtain interesting gains.
Sean Cole, founder and President of Good Finance, talks about the evolutions and challenges of crowdfunding
How does the investment process work?
When registering, the future investor is invited to select start-ups. Some are fundraising, others are called “pre-collection”. We will come back to this term soon after.
For those who are in collection, the investor can invest directly, from 1 000 $ (variable according to the company) in the start-up of his choice. A simple verification of the identity and the investor profile is necessary. The amount invested is transferred to an escrow account (thanks to SurePay, a payment solution with a banking status and accredited by the GFI) and released to the company’s capital increase account at the end of the year. the operation.
Investment in SMEs generally allows to benefit
Note that the investment in SMEs generally allows to benefit from tax cuts (to be simple, the rules are as follows: 50% of the amount invested on the GFI, and 18% of the amount invested on the IR). The crowdequity platform offers a “tailor-made” SME tax exemption simulator taking into account all the factors at this address.
With regard to “pre-collection”, this is a phase where companies are collecting signs of interest from investors. This is the moment when they confront the market and the community. We can say that this is one of the great strengths of crowdfunding: validate a concept, study the feasibility of an action. All the interest of this phase is that we know in only a few weeks if it is possible to go further in the process. If this step is validated, the collection begins with a base of interested and identified investors.
Towards a new financing method: the loan
From the first quarter of 2015, a new product will appear on the platform. Still on the crowdfunding model, private and professional investors will have the opportunity to lend directly to businesses . These loans will take the form of a bond issue with an annual yield between 6% and 12% over a period of 2 to 5 years (depending on the risk profile of the company and the duration of the project). Companies, loans will range between $ 100,000 and $ 1,000,000.
Good Finance already offers entrepreneurs to be contacted for a file study. It should be noted that this funding model also involves risks. To reduce this risk, the selected companies must be profitable (or highly capitalized) and have existed for at least 2 years.