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Crowd Supply innovates, legitimizes crowdfunding

Crowd Supply is a crowdfunding platform on steroids, adding fulfillment, warehouses, SEO power, and project timeline tracking to the sector, giving much needed legitimacy to a formerly flawed process.

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Crowd Supply: the next generation of crowdfunding

Kickstarter launched as the leader in the crowdfunding sector which is now growing to include various spins on the concept. Since its inception, Kickstarter has garnered the most attention and press, and is a winner for media projects like art installations, music projects, and other fundraising efforts, but in 2012 when the Pebble smartwatch put up a page on Kickstarter requesting funding and became the most funded project in the site’s history, raising over $10 million, problems arose. The smartwatch was a winner because it was so popular, but the company was so overwhelmed and surprised that they were not prepared for such a windfall.

Kickstarter is a truly helpful tool for fundraising, but beyond that, innovators are on their own to meet demand. Kickstarter wrote in 2012 an explanatory piece entitled, “Kickstarter is not a store,” meaning they do not play a role in getting any products to market, nor insuring that they make it to market, they are strictly a fundraising tool.

But what of the companies that need more than fundraising? What happens when product development is adversely affected? Enter Crowd Supply, the next generation of crowdfunding that goes so far beyond just fundraising, but puts a twist on the entire process by adding fulfillment, warehousing, progress tracking, and more.

Crowd Supply IS a store

Kickstarter wants you to know that they aren’t a store, but Crowd Supply wants you to know that they are. In fact, they are so much more sophisticated than the average crowdfunding platform that all projects are given a red light or green light by a PhD from the Massachusetts Institute of Technology (MIT) Media Lab.

Crowd Supply answers to some of the shortcomings of any crowdfunding site for products that don’t offer store functions, from how the project pages function to managing product fulfillment, tracking, returns, and more.

Crowd Supply funding works differently

One of the problems with crowdfunding sites is that the funding period lasts for a specific period, usually around 60 days, and fundraisers cannot access the funds before that period is up, even if they hit their fundraising minimum amount. Kickstarter, for example, does not release funds to be used for the product until 20 days after the fundraising date passes.

Crowd Supply’s President, Lou Doctor tells AGBeat that they answered to this conundrum by funding the project as soon as their fundraising goal is met so that they can begin production. If more funds are raised, they can scale to increase production, appealing to product developers who want nothing more than to get started.

Brands get the SEO juice and actual preorder pages

Another way Crowd Supply has put the crowdfunding process on steroids is by giving complete control to the fundraiser. Kickstarter is a massive SEO powerhouse and can give a brand a major boost, but because of their size and power, they inadvertently snag all of the SEO juice for the young brand’s name, as fundraisers cannot access their project page after the fundraising date passes to direct potential buyers to an order page.

Crowd Supply offers more than just a fundraising page, as each page that meets their goals is automatically turned into a preorder page, allowing brands to offer target delivery dates for batches of pledges so that no one is disappointed by endless delays (a bad start for any brand, we would add) as has happened with popular projects on other crowdfunding sites.

This setup is unique because most payment processors don’t want consumers to be at risk, so Crowd Supply mitigates consumer risk by allowing preorders to be cancelled for store credit, so funds are still collected.

Adding fulfillment and warehouses to the mix

The founders come from the e-commerce world and their existing companies will deliver $50 million in sales in 2013 alone, so what they’ve done is take the backbone of product development and added it as a layer to strengthen the crowdfunding platform. Genius.

They already have fulfillment for creators, warehouses, negotiated UPS rates, and can handle getting tracking information instantly to customers, handle return logs, etc. Most crowdfunding projects have to hire siblings and temps to slap stickers on packages in the inventor’s basement, with no real accountability to the consumer.

The company looks at their offering as ideal for serial project creators and assert that they are poised to have long term relationships rather than a simple one time event as the current crowdfunding world revolves around. We like to think of Crowd Supply as crowdfunding on steroids, built from the ground up for grownups.

Lani is the Chief Operating Officer at The American Genius and sister news outlet, The Real Daily, and has been named in the Inman 100 Most Influential Real Estate Leaders several times, co-authored a book, co-founded BASHH and Austin Digital Jobs, and is a seasoned business writer and editorialist with a penchant for the irreverent.

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Business Finance

Poindexter helps handle finances so you can focus on your business

(FINANCE) Poindexter is a startup that helps you manage financial questions so that you can build you business, not spreadsheets.

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Balance sheets, cash flow statements, compliant income. These are phrases you come across every day in the business sector that also bring another word to mind: confusion.

Luckily Poindexter is here to help. The startup was created as a resource to help businesses make profitable decisions that lead them to success.

Poindexter uses simple business modeling software to generate business plans that users can easily understand. It was built mainly for startups and small businesses that may not be in the position to afford a financial expert.

There is no need for prior financial or excel knowledge to use Poindexter.

Their motto is “build businesses, not spreadsheets.” They don’t want the technical side of finances to hinder businesses, so they are simplifying the process.

The software offers various features to create businesses’ specific financial forecasts. These features include tracking marketing expenses, estimating ROI, comparing alternative projects and defining customer acquisition goals. In addition, implementation is easy.

Just like every aspect of a business constantly changes, the budget must adapt as well.

Users of Poindexter are able to fine tune their budgets and test out assumptions. This allows for the software to help create a unique financial plan for success no matter what the business is.

Business owners can think of Poindexter as their automated financial planner. It will still offer all of the advice of an actual financial planner while you remain in complete control. For the creators of Poindexter, the goal is simple: to aid innovators in making smart and profitable business decisions.

They eliminate the hassle, and emphasize achievements that will keep you on track to reach your financial goals.

Anyone can try Poindexter for free. Fees will only start as you add more projects and premium features. The software will continue to be updated as they gather feedback from users.

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Business Finance

You just got an LLC and you’re ready to hire – 3 things lenders look for

(FINANCE NEWS) Yes, securing a small business loan of any kind is tedious and depends on varying lending organizations and business needs, but there is a list of general requirements small businesses should be aware of before getting knee-deep in conflicting information about lenders.

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Ready to lend a hand

If you are reading this, you probably have an LLC for your small business already, or money talk gets you going. If it is the former, let me say CONGRATULATIONS, and insist you pat yourself on the back in honor of your small business’s progression. Your arrival at a point where expansion is necessary is no small feat given half of small businesses fail in the first year. So, kudos to you.

Now, back to the money talk…

For LLC businesses looking to expand, please don’t fret about all of the information you’ve seen on the web. Yes, securing a small business loan of any kind is tedious and depends on varying lending organizations and business needs, but there is a list of general requirements small businesses should be aware of before getting knee-deep in conflicting information.

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The magic three

After some extensive research posing as the owner of imaginary businesses and annoying every loan officer who’d take my call, I’ve found three general lending requirements. I also provide a collection of the tangible information banks will likely review to meet those requirements. Take a gander:

Assets
Small businesses must have necessary assets: steady cash flow, financial reserves, personal collateral to support a variety of business fluctuations (i.e. unexpected employee loss), and a realistic pay off plan. These assets and financial safety nets are necessary for any lending organization to be confident in your business’s ability to support employee expansion in lieu of current expenses.

Proof of past
Just as you will come to expect from your soon to be employees, lenders want proof of the past and how you’ve managed past loans to align with your business goals. Historical evidence will further determine if your expansion is feasible, but also if it is worthy for the company to accept the lending risk.

Specific plans
Finally, be prepared to provide your small business’s explicit expansion plan, including how you arrived at your suggested loan amount and how you intend to divvy out the funds. It is important that you are as specific as possible in your projected numbers, seeing as one employee could make a $60,000 difference, and largely affect your expansion plan and financial need.

Before you go…

Now that you’re equipped with the magic three, you’re probably feeling empowered to walk into your nearest bank and demand your small business loan. Let’s first be sure you have all of the necessary information on-hand and ready to produce.

Lending companies that look for the magic three before investing arrive at their conclusion after collecting data from the following pertinent information:

– Proof of collateral
– Business plan and expansion plan
– Financial details
– Current and past loan info
– Debts incurred
– Bank statements
– Tax ID
– Contact info
– Accounts receivable information
– Aging
– Sales and payment history
– Accounts payable information
– Credit references
– Financial statements
– Balance sheet
– Profit and loss history
– Copies of past tax returns
– Social Security Numbers
– Assets and liabilities details

Now, my friend, do I release you as proud as a parent unto your nearest bank to secure your small business loan and begin growing your staff the way you’ve dreamed. I’m confident you will find the aforementioned information helpful in said quest, and would like to wish one last time (because it’s impossible to over-congratulate) a sincere CONGRATULATIONS on your businesses growth.

#LLCLending

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Business Finance

Yes, cryptocurrency pricing has been manipulated

(FINANCE) Research shows that some cryptocurrency value has potential to be manipulated by fraudulent bots. Welp.

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Yes, cryptocurrency price can be manipulated, thanks for asking. A new research paper in the Journal of Monetary Economics dove into how bad actors may be controlling the Bitcoin (BTC) ecosystem, and found that one person may have pushed Bitcoin from $150 to $1000 in 2013. One. One person.

Researchers Neil Gandal, JT Hamrick, Tyler Moore, and Tali Oberman published “Price Manipulation in the Bitcoin Ecosystem,” a paper describing how fraudulent activity likely influenced trading activity leading to increased BTC-USD exchange rates in 2013.

Their paper specifically analyzed suspicious activity on the (since shut down) Mt. Gox Bitcoin currency exchange. Mt. Gox used to be the hotshot for crypto exchange, with over seventy percent of worldwide bitcoin transactions taking place on its platform.

Late in 2013, the USD-BTC exchange rate spiked from around $150 to over $1000 in two months. There was also a period where over 600,000 Bitcoins valued at $188 million were acquired fraudulently.

Former CEO Mark Karpelès worked super hard to cover up the fraudulent activity, but Mt. Gox eventually met its Mount Doom and shut down in 2014.

According to the research, on days where suspicious activity took place, the exchange rate rose an average of four percent a day. Analysis shows that the exchange rate declined on days without suspicious trading activity.

Price manipulation was due in part to how thin the crypto market was in 2013. At the time, only around 80 cryptocurrencies were around compared to over 843 today. This made the market more susceptible to price manipulation.

Fraudulent activity was primarily attributed to Markus and Willy, two bots that appeared to be performing valid trades. However, the bots didn’t own the bitcoin they were using, so all the trades were fake.

When Mt. Gox was hacked and millions of dollars of Bitcoin were stolen, it was due to bots creating fake trades and artificially increasing BTC pricing.

The high volume of trades signaled heavy trading activity, driving up the exchange rate on Mt. Gox. The platform profited greatly from transaction fees from legitimate, non-bot trades. But even without fraudulent activity, exchanges were higher on days these bots were active.

Although it’s alarming that bots potentially jacked up prices, better security systems are set in place for crypto exchange now.

Blockchain keeps users responsible by keeping a record of anyone who changes or updates any element of a crypto transaction.

So while theoretically crypto pricing can still be manipulated, it’s a bit more difficult with the checks blockchain puts in place to identify all users and activity. It’s still worth staying vigilant though, because even with blockchain in place, cryptocurrency markets are not regulated.

This story originally ran on January 22, 2018.

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