The success of the ASSOB platform, and the data compiled, has been quoted round the world as other nations push forward with the new approach for capital formation for startups and SMEs. ASSOB has helped raise over $140 million for more than 300 companies. The years of experience have generated much wisdom as to what works – and what does not.
Download the World Bank report on Crowdfunding here. The report cites the 2008 financial crisis as one of the main catalysts to the global interest in crowdfunding. See pages 18 & 46 referencing ASSOB.
A Debt & Equity Investor Aggregation crowdfunding platform:
A “powered by ASSOB” platform delivers a broad-based “Investor Aggregation” platform that not only handles equity raises, but also SME Bonds in the form of straight debt funding and other hybrid debt/equity instruments.
Transactions handled by a ‘powered by ASSOB” Investor Aggregation platform:
• Unaccredited (retail) investor equity raises together with accredited investors;
• Accredited equity investor only raises;
• Convertible Startup bonds either as a separate funding exercise or as a complement to an equity raise;
• Bond raises for established SME’s;
• SME managed Bond Funds.
Below are some details on the non-pure equity methods available on a “powered by ASSOB” Investor Aggregation platform.
1. Convertible Startup Bonds
A convertible startup bond is a debt/equity hybrid instrument that provides a simple and cost-effective way to raise between $10,000 to $50,000 to cover off the expenses involved in an equity crowdfunding campaign. Startup bonds are negotiated by private treaty, one-on-one between the entrepreneur and an early adopter or supporter with usually no more than a single bond certificate being issued. These are usually recorded on a “powered by ASSOB” Investor Aggregation platform as a reserved parcel of shares until they are converted when the equity raise actually opens.
2. Bond Raises for Established SMEs
An issue of SME Bonds is a way for more established businesses with strong cash flow to raise funds without watering down the existing investors in the company. Investors receive regular interest payments until the end of the bond term and receive their initial investment back at the end as well. SME Bonds are not without risk to your capital. Interest payments and forward looking financial projections are not guaranteed. These are usually recorded on a “powered ASSOB” Investor Aggregation platform under the tab “SME Bonds” It is here that “Bond Raises” for established SME’s are marketed and progress recorded. Those marketing the Bond Raise have the same tools available to them as available in an equity raising. The “powered by ASSOB” Investor Aggregation platform aggregates both those interested in investing in the bonds and those that invest so that at any time you can see the progress of a particular bond raise.
3. An SME Managed Bond Fund
An SME Bond Fund is an investor aggregation vehicle that provides investors with the opportunity to gain access to a diversified portfolio of growth SMEs. An SME Bond Fund is for those investors who like the income generated from share dividends and are attracted to the higher predictability of managed bonds in these uncertain times. As well as regular interest or coupon payments, bonds return your original capital on a predetermined date. On the “powered by ASSOB” Investor Aggregation platform these raises are recorded under the SME Bond tab. Each managed fund has its own raise. Prospects and investors are aggregated and monitored using the “powered by ASSOB” engine.
Whether you are raising equity, a hybrid of debt and equity or just a pure Bond play, a “powered by ASSOB” Investor Aggregation platform has the tools to make the job a lot easier and more effective for you. Please email us if you require further information or would like to get your own “Investor Aggregation” platform up and running.
ENQUIRIES: To enquire about establishing a ‘powered by ASSOB’ Investor Aggregation platform in your region, CLICK HERE
Investors in startups and early-stage companies never lose track of their shareholdings: Our Client companies can now choose to issue securities as digital securities (encrypted stock), meaning the securities can be uncertificated securities, the ownership and transfer of which are recorded on a cryptographically-secured distributed ledger system. These ‘encrypted stocks’ provide a way for your investors to track and never loose sight of their stockholding.