KIVA Co-founder Jessica Jackley’s young start up ProFounder has won $50,000 in the Summit Series Pitch Competition. Profounder is a website that uses crowdsourcing to find equity and capital funds for entrepreneurs. In this competition, the winner was chosen by the audience. Crowdsourcing with Profounder may not bring huge investments, and has its own limitations, but it works well to provide the growing number of small homebased and lifestyle start ups the human and financial support they need. For larger start ups looking for larger capital infusions, Profounder type crowdsourcing is also a great way to build a network of support and evangelists during the beginning stages of funding. Profounder uses a debt and revenue system in which sources get their money back based on how well the company is doing, it can accommodate capital raises up to $1,000,000. Through providing a crowdsourcing service Profounder can also markets itself and acquire customers in the process of funding. the company that gave the prize, Presumed Abundance, has a funding system in which after its companies become sucsessful, they angel fund a new set up companies with the money made, thus “paying it forward” and creating more entrepreneurial ventures. In this new and more complex landscape of funding, groups like Profounder and Presumed Abundance are providing innovative processes of capital infusion and regeneration.
KIVA Co-founder's New Crowdsourcing Start Up ProFounder Wins $50,000 in Pitch Competition
SOCAP Global May 27, 2010
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