Dienstag, 28. Mai 2013

The Equity Crowdfunding Killer App

Walt Robinson described it as “crowdfunding for grownups.”

He and his business partner, Scott Soltau, have launched a new business called BridgePointe Capital Markets, which will be in full swing next month.

Through its online finding portal, the company aims to connect investors to companies that need funding.

The idea is to bridge the funding gap between what community banks can finance and what small businesses need.

We consider it a higher evolution of crowdfunding,

Robinson said.

The gap

Combined, Soltau and Robinson have more than 50 years of experience in corporate finance, investments and commercial lending.

And they saw that some small businesses have trouble getting financing from community banks, which have become more and more regulated by the government. 

“I had a lot of frustration in community banking because I saw this funding gap—those deals that are one degree off,” Robinson said.

BridgePointe leaders are focusing on lower- and middle-market companies with revenues between $1 million and $50 million, Robinson said.

And they are aiming to provide between $250,000 and $3 million in funding—that’s the funding gap, leaders said.

For community banks to provide financing to a business, the business needs sufficient collateral and enough capital to carry out the business plan.

And new or small companies might not have that.

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