Investing in entrepreneurs and start-ups has become a boom among small investors, especially since it can be done from small amounts and is within reach of a click. However, this type of investment still entails risks, as the law does not yet regulate it. Despite this growth scenario, funding projects or companies requires careful analysis of the project and the entrepreneur, since the more yield (profit) they offer, the greater the risk that the investor will take.
Evelyn Fermat will definitely no longer fund any project via crowd funding. Between August and September of 2012, he deposited $ 275 (about 5,000 pesos) to the foreign campaign Brightening Bike Lanes Worldwide, in Kick-starter of the United States. The company asked for 50,000 pesos and achieved a goal of 75, 417 pesos. In exchange, would receive 10 sets of lights for bicycles, the company’s flagship product, as they wanted to put them on sale at their bike accessories company.
It’s been five years since she lost her money and Fermat has not received a response or her lights. What she knew was that the company did not calculate the production and asked her to pay more for the shipment, after a while they stopped responding to her and other anchors. There is no guarantee of anything. When you decide to support these initiatives, you trust fully and blindly in what they promise which is why they are asking for money they must also commit. Carmen Murillo bought in 2016 shares of Surfing Digital, a start-up of which she did know her business model, but she did not understand it. The Mexican company offers online courses to improve sales strategies in business.
According to the Play Business platform, where Surfing Digital started its campaign, the company is valued at 7.5 million pesos and raised 749,967 pesos in exchange for 10% of its shareholding. Murillo invested in a 1,000-peso ticket, but plans to sell it on the secondary market. “I discovered that I do not like the industry in which I invested and did not finish understanding the project. She prefers the entertainment industry and things internet.
Investigate what the project is about identify yourself with your goals. Contact the entrepreneurs, especially if your participation as an investor is active request information on the progress of the company, that is, interest in the success of the company. In addition, you invest only the money you know you could lose Murillo said. Ivan Zavala, passionate about technology and cycling, met this year with, a company that manufactures vests with integrated technology for cyclists. After meeting with them, he found empathy in his story and “fell in love” with the product.
The company launched two funding campaigns at Kick-starter Mexico. The first financing period was from March 31 to April 30 of this year and the company requested 1,250,000 pesos, but only raised 11% (141,451 pesos). So its creator canceled the project on April 13, according to information of the platform. The second campaign came from May 23 to June 22 and out of the 40,000 pesos he requested, he only made 6,289 pesos.
The goals, in both cases, were not fulfilled because the entrepreneurs did not give publicity to the campaigns. That annoyed me a lot, because I did not see any commitment on the part of the entrepreneurs so that within three weeks of donating, he withdrew his $ 100 from funding. In return, Ivan hoped to receive a biker vest with integrated lights.
Do not be carried away by the product, as important is that and the market available, as is the profile of investors. Before putting money into play, the investor must interact with the entrepreneur, get to know them thoroughly so they understand and feel comfortable with their ideas and projects. Concepcion Moreno, an expert columnist in culture, interviewed plastic artist Javier in 2013, which planned to make a 200-kilometer walk between the coast of Catalonia in Spain and southern France. His objective was to make a performance on the exile of his grandfather, who was Spanish Republican pilot during the Civil War.
I would have loved to participate in that walk, but my way of being with him was to support him financially. I gave him 400 pesos and in return, he would receive a shirt printed with the author’s work. They never got in touch with me, nor did they give me my reward.