GamCrowd the gambling-specific crowdfunding and crowdsourcing platform that launched with a fanfare in early 2014 has decided to ‘practice what it preaches’ and has launched a crowdfunding campaign of its own.
The company is looking to raise £200k for 10 per cent of the Equity in the company on its own platform. CEO Chris North explained the reasoning behind the campaign; “we have been very keen from the outset to fund this via our own platform, we want to experience what we are encouraging start-ups to go through, test both the platform and concept for ourselves and bring in a wide range of shareholders who we hope will support the business.”
GamCrowd is an all-or-nothing equity crowdfunding site so if the money isn’t raised within the 60 days’ timeframe that the company has chosen then any pledges are returned. Investors need to be registered on gamcrowd.com by having completed a questionnaire and signed a declaration that they are sophisticated investors or High Net Worth investors. They will then get access to the GamCrowd pitch video, business plan and financial projections. The platform gives potential investors the chance to ask the founders questions about the business [these are all made public so other interested parties can share the same information].
Mr. North said: “The process of asking and answering questions exposes the start-up to “the crowd” often making positive contributions to the plan. The investors get to build a relationship with the company which will hopefully lead to on-going support for the business.”