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Thursday, January 27, 2011

Small Business Fundraising Online

Recently launched startup ProFounder (www.profounder.com) is a site where small-business entrepreneurs can raise funds through a community- based approach. People seeking to raise money can conduct a private or public fundraiser. Users can raise funds from friends, family, and the community, or solicit funds from the general public. Setting up a fundraiser requires some simple financial information. With public fundraising, you can also choose a nonprofit to partner with; that partner will receive the remaining money made after the investors have  been paid their maximum cap, which is 100% of their initial investment.

The design is intended to spread out financial risk among many parties, thus reducing the risk assumed by any one individual. And because users can set their own terms, they have more control over the process.

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