A Conversation with Chance Barnett

“I'm really excited to start to do that at scale at crowdfunder.”

“you can invest in a a long-term sustainable for-profit social Enterprise and not only invest for for profit but invest to help accelerate some purpose or impact”

“I've been massively impressed by what has been the exponential growth of crowdfunding.”

“I mean that's extraordinary yeah uh the Liberation and the velocity of capital um and I can't wait until it starts getting into the equity side of entrepreneurs.”

“I think we'll see big gains and how long does it take to put together deal terms and more standardization of that and less all over the place I mean accelerating the rate of doing deals. ”

“I see what what crowdfunding fits as uh a place in the investment ecosystem or you know the life cycle of a business is that it can be in some uh companies a great place for it to validate an existing set of traction model uh existing prototype that's working it's probably not a great place certainly in investment to raise equity for something that is barely started or an idea so that's not what we're focused on in crowdfunding fund uh crowdfunder but you will see companies servicing that very early stage startup space but I find that really high risk and that should be friends and family or you know risk Capital at the very small end so you have that Inception stage that's not really where Equity based crowdfunding will will be best serving the community it's in this place where someone has an existing product which could mean that they want to raise Equity but it could be what I think of as an ongoing concern a company that has cash flow and has had problems getting a $200,000 loan from A bank um and so they can serve as debt because they have existing revenues they're a small business and they have great customers but for for some reason they didn't have enough cash on hand to Warrant a loan from Wells Fargo right and so the community can come in and fund that small business to help it buy the additional inventory it needs so there's this but these will be Equity not loans uh no there'll be a large market and uh debt based investment Fant in crowdfunding so Equity is just one piece and Equity really only fits some of those highly explosive high growth companies where people are saying you know I'll ride longterm and give you some money and not look for a return short-term because I think the potential here is to scale and so that is often more innovation in Tech right um but that's not a great fit for a small business that is never going to have a 10x or 20x valuation right but they'd be willing to take on uh a loan at 7% and certainly and they have good good decent revenue and especially if they could go to a crowd and get it in 45 days without pitching Banks and investors one at a time what that what a blessing that would be yeah and then the other piece that's exciting is that uh you you don't have to be a small business to do this so you will see big Brands saying I I might want to pre-sell some of my products which Nike could do with a set of shoes and it would be I think a huge win but they could also capitalize either their own initiatives uh or partner initiatives and help bring investment or this more donation model crowdfunding so think that uh uh the fortune th000 companies I want to call them the Fortune 100 but some of the larger companies might actually come in and utilize this as a means for getting Capital it's fantastic Marketing in fact the Lin yeah let's talk let's talk let's dive in so we've been talking about the benefits the entrepreneurs let's talk about the benefits to the to the uh CEO the CFO who's looking to he got and you know might have a hundred million dollar billion dollar company what would they do with you so crowdfunding is inherently social meaning you're not looking to get a couple of investors to validate you and help you right off into the sunset and then try and get customers crowdfunding is in in a lot of ways a shortcut to getting customers and merging that with the process of financing or pre-selling what you're doing and that's a shift in the way business has been done uh I I would even go as far as in my utopian long-term ideal to say that you know there's this notion that you were either in or out of a company you were an investor and you had shares or you had nothing and what we're starting to see is a new set of relationships form around companies whether it's a corporation or nonprofit where people are able to align around that company and contribute or support whether that's through money whether it's through time whether it's through expertise and”

“I could certainly see a $50 million fundrise being done across accredited yeah uh the next year sure”

“if you actually if you actually go to an unemployed population set and can create something unique and valuable for them there is the greatest value exactly”

“that potential distribution list is several million at this point and growing”

“we're I think well positioned to be one of the broader players across three main vertical small business social Enterprise and”