Will my idea of an alternative method of raising capital really work?
I can clearly answer this question with âyesâ. In the year 2005, an English teenager decided to finance his studies at university by raising money by means of selling pixels. As many know, going to university in England costs a lot of money. All in all costs can easily add up to Â£40â000 – Â£100â000, depending on what subject one is studying and at what university.
He did want to go and study but certainly did not want to end up with a horrendous student loan at the end. This is how he came up with the idea of selling pixels and earning his money needed to go to university. And he succeeded! Within approximately one year he received 1 million dollar from about 3â000 supporters.
So do I copy him? In a way, yes. But instead of just asking people for money, I actually sell my company shares and therefore I give people something back for their investment. I intend to use the money received to develop a gps collar for cats in order to reduce the number of cats gone missing every year.
People who invest in my company, can also directly benefit from the success of my company, since there is a high potential of the shares rising in value. It can even mean that a multiple of what was initially invested will be received back. And investors will know that they have helped from the beginning to develop aÂ gps cat collar which is suitable for any cat owner.
I am therefore not putting my own personal and financial interests first but instead I am focusing on solving the problem of missing cats.