Building a microVC Economy
Let all contributors participate in the success of a start up. Micro investors are granting a credit for their time and resources. Which can range from developing ideas to providing office space.
The idea is to have a platform:
- Which tracks all contributions made to build a startup
- All contributions get a price tag to get real value
- The contributions can range form ideas to office space or money
- The contributions are the investments of microVCs
- The microVC is not getting shares of the company neither is his investment a credit.
- The investment is an agreement about getting his contribution back with an profit or loss.
- The amount of the refund depends on the period granting the investment and the financial status of the company on payback day.
- The payback day can be triggered by events such as profitability or entry of large investors.
- Access to resources, expertise and know-how
- The startup idea is under a constant stress test by potential investors.
- The startup is building a supportive community
- From the beginning you know the value of the company
- Each startup is building from the beginning an ecosystem of entrepreneurs around it
- The investments are similar to a virtual currency with future profits.
- This is the base for a micro economy
First signs of such a micro startup economy can be seen in Berlin nowadays
How will your concept support web entrepreneurship?
Building a startup means to overcome challenges. Some of these challenges can be overcome by others in a better and faster way. Sooner or later you have the question where do you want to found you company and which legal status should it have. This is a typical question for a lawyer. The answer to this question could be crucial for your startup. So, how do you want to pay the lawyer? Money is mostly scarce in a startup but is this answer worth to give away shares of the startup, as some kind of remuneration?
Kickstarter showed us, there are many good people out-there who are willing to support startups. Their support can be money but many are also willing to invest their time, expertise, know-how and other resources such as office space. All these investments could be measured and priced. If an designer is supporting your startup with developing a logo, you can precisely tell how long it took him and what his time is worth on the market. This price could be the base of the designer's investment in your startup. The difference to a VC investment is that the micro investor does not get any shares in the company. Moreover, the micro investor gets a payback plan according to the performance or investments in the company.
Each micro investor has to be convinced by your idea. This is a perfect pitch training, which allows you to proof your concept. More micro investors a startup gets the bigger the supportive community of the startup will be, as every one wants his investment to pay off.
What kinds of resources will be needed to get this concept off the ground and scale it?
- A development team
- Technical cooperation with companies such as base camp
- Talent cooperation e.g. with startup-weekend
- Funding 50 000€
How could we get started?
1. Spread the idea
2. Research project management apps with an api suitable to be enhanced by this feature
3. Find developers willing to develop this plugin
4. Make resource estimation
5. Get funded through Kickstarter
6. Use the market entry strategy of Kickstarter