Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
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Craig Asano
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The Future of Equity Crowdfunding
Invest directly in innovative consumer web shops
A unique Dutch initiative: equity-based crowd funding for web shops.
On September 4th 2014, StoreCorporation will start a unique initiative to invest directly in fast-growing privately-owned web shops.
Crowd funding is no longer a new concept for web shops, but private individuals directly co-owning multiple web shops through investment is.
The acquisition of capital with a large mass of small investors is an innovative form of (online) financing with incredible potential. StoreCorporation crowd funds differently; here, you participate directly in the share capital of the enterprise and its web shops.
Direct investment in privately-owned businesses is usually a cumbersome affair; every transaction must pass through a notary and the drafting of official contracts is required.
StoreCorporation has chosen a simpler path; one that is fully covered legally and is unopposed by the Dutch financial supervisory authorities (AFM and DNB). Now, investing in an as of yet privately-owned business is a piece of cake.
What is the secret to this simplicity? The StoreCorporation has chosen to utilize a tried and true Dutch legal form: the co-op (Cooperatie U.A.). This is a form where its members are in charge and participate in the capital, but without a larger amount of accountability than the invested amount of money.
Equity-based crowd funding for web shops
How does it work? After a successful crowd funding, the StoreCorporation establishes an investment co-op co-op (Cooperatie U.A.), which gains a share capital in the company.
The investors all gain membership of that investment co-op, which eventually becomes the owner of all the shares of the company. Transparency of the organization is safeguarded by a graduated system of ownership and influence. One can compare it to market-listed stock certificates, where the investor owns the certificate while the actual share is held by an administration office. The difference is that with StoreCorporation, investors have more input and influence than holders of stock certificates because they are co-owners of the investment co-op who determine its policies, have full voting rights and selects its board of directors.
Limited share risk
Of course there is the usual risk that comes with undertaking and applies to all investments in companies. If the StoreCorporation can no longer meet its obligations and goes bankrupt, its investors will lose their invested money. However, because the StoreCorporation invests in more than ten web shops, the risk is minimalized.
Invest directly in innovative consumer web shops
Also of interest is the attention playing in the back ground, for example from abroad. We have tested our story on several crowd funding web sites and the attention we have gained is remarkable. Several groups have already come forward to become shareholders in the StoreCorporation.
At http://www.symbid.nl/ideas/5879-storecorporation, anyone can invest and therefore profit of the present and future growth. One share can be bought for 20 euros, so truly everyone can come on board and profit from the growth in web shops and this new way of doing business!
The Future of Equity Crowdfunding
Invest directly in innovative consumer web shops
A unique Dutch initiative: equity-based crowd funding for web shops.
On September 4th 2014, StoreCorporation will start a unique initiative to invest directly in fast-growing privately-owned web shops.
Crowd funding is no longer a new concept for web shops, but private individuals directly co-owning multiple web shops through investment is.
The acquisition of capital with a large mass of small investors is an innovative form of (online) financing with incredible potential. StoreCorporation crowd funds differently; here, you participate directly in the share capital of the enterprise and its web shops.
Direct investment in privately-owned businesses is usually a cumbersome affair; every transaction must pass through a notary and the drafting of official contracts is required.
StoreCorporation has chosen a simpler path; one that is fully covered legally and is unopposed by the Dutch financial supervisory authorities (AFM and DNB). Now, investing in an as of yet privately-owned business is a piece of cake.
What is the secret to this simplicity? The StoreCorporation has chosen to utilize a tried and true Dutch legal form: the co-op (Cooperatie U.A.). This is a form where its members are in charge and participate in the capital, but without a larger amount of accountability than the invested amount of money.
Equity-based crowd funding for web shops
How does it work? After a successful crowd funding, the StoreCorporation establishes an investment co-op co-op (Cooperatie U.A.), which gains a share capital in the company.
The investors all gain membership of that investment co-op, which eventually becomes the owner of all the shares of the company. Transparency of the organization is safeguarded by a graduated system of ownership and influence. One can compare it to market-listed stock certificates, where the investor owns the certificate while the actual share is held by an administration office. The difference is that with StoreCorporation, investors have more input and influence than holders of stock certificates because they are co-owners of the investment co-op who determine its policies, have full voting rights and selects its board of directors.
Limited share risk
Of course there is the usual risk that comes with undertaking and applies to all investments in companies. If the StoreCorporation can no longer meet its obligations and goes bankrupt, its investors will lose their invested money. However, because the StoreCorporation invests in more than ten web shops, the risk is minimalized
How it works you can see on http://www.symbid.nl/ideas/5879-storecorporation
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