While most businesses have the potential for utilizing crowdfunding, many are simply not properly prepared to do so. Readiness is a primary key to success in the crowdfunding ecosystem and PowerCrowd works closely with its clients to ensure all required preparation is done well.
PowerCrowd prequalifies its business clients – and in so doing ensures that their expectations are in line with what is achievable. For example, early on in the prequalification process, client companies with intellectual property and related commercial applications will need to assess their market potential. The valuation process provides the market context and rationale for a corresponding, customized strategy and realistic targets for raising capital through crowdfunding. PowerCrowd focuses on Technology Readiness Level 8 and Level 9 companies (view TLR chart now) and also mature companies that would like to scale up their operations.
Prequalification also involves developing a plan acceptable to our client business that risk-mitigates inherent issues often associated with start-up companies and which can continue to hamper mature companies. A stage-gate business development process is prepared collaboratively and becomes a road-map for success. In this case, risks such as Intellectual Property protection and proper corporate structuring ensures that business founders are able to keep a higher percentage of ownership of their intellectual property. PowerCrowd’s corporate structuring solutions also help preserve equity while setting the foundation for added capital raises that may be required in the future as the business grows.
PowerCrowd’s solutions enable its client business to gain the confidence and trust in the crowdfunding ecosystem that serves their best interest.
PowerCrowd makes it much easier for investors to participate directly where value is actually created and leveraged. By registering with PowerCrowd and the online crowdfunding platform, investors can be prequalified easily and this process ensures full compliance with the associated regulatory agencies. Prequalification also means that investors can start at minimal investment, very low risk entry levels and, over time, become accredited investors – something which provides additional options as an investor including Sponsor positions with PowerCrowd which provide a secure rate of return.
For prequalified investors, prequalified investor, PowerCrowd helps takes the mystery out of crowdfunding investment opportunities while enabling investors to have much better information and line-of-sight to businesses which are launching or scaling up into the marketplace.
Sponsors – if you are an accredited investor, PowerCrowd can prequalify you as a Sponsor for its crowdfunding platform. This is a special investment position directly with PowerCrowd which enables Sponsors to underwrite the process of crowdfunding directly. It is a short-term (24 months or less), debt investment with a guaranteed return
PowerCrowd applies an onboarding methodology that ensures that there is a clear understanding of the business’s market potential, determines the type and level of business capacity required to meet the identified market opportunities and drafts a business development plan that optimizes the use of crowdfunding to meet stated objectives.
PowerCrowd’s step-by-step process is transparent and provides clients with a relevant and robust budget and full accounting for the resources required to optimize raising capital through crowdfunding. PowerCrowd recognizes that its client businesses do not always have the necessary resources upfront and, for this reason, Sponsors are utilized when necessary to underwrite these costs. Sponsors participate on a short-term basis using a loan facility to onboard PowerCrowd’s clients onto the crowdfunding platform and activate the investment process.
PowerCrowd works with business clients to generate a stage-gate development plan which risk-mitigates key issues including: corporate structuring; IP protection; intangible asset identification and insurance; pre- and post-cash flow valuations; building effective management teams; marketing and sales, among other areas which are critically important to the success of the business. The stage-gate development plan provides a 3 to 5-year outlook which anticipates any further funding rounds required to scale up and expand into new markets. PowerCrowd can then track and align with its client’s funding requirements to ensure timely raises through its crowdfunding ecosystem.
Investors and Sponsors can rely on PowerCrowd’s prequalification and stage-gate development processes to minimize investment risk and also to put in place the best conditions for business success. This translates into safer investments yet capturing higher returns along the way. PowerCrowd makes it possible to track the progress of its clients as they develop their businesses and this gives investors and Sponsors the edge on future investments with these businesses.