CROWDFUNDING: Fundraising, how does it work with us?
- By mpcash
- On 29/07/2018
- Comments (0)
- In Crowdfunding
Fundraising by classical methods of crowfunding has proved high failure rates. MPCash changes the done!
Fundraising, a practice with strong growth in the world of entrepreneurship!
The fundraising is the mechanism by which a company or project developer raises funds from individuals or other companies, to revive his activities after difficult events, develop new products, or fund new projects. This activity is usually driven by Web platforms dedicated to crowdfunding. The project bearer must convince users of the viability of his project and offer attractive rewards to expect for a successful fundraising campaign. The general rule in force in the classic crowdfunding is the ''all or nothing''. Either you have a successful campaign, and you get the financial resources needed for your project, or the amount sought is not achieved at the end of the period, and the funds raised are returned to their subscribers; and you will need to look elsewhere. This makes crowdfunding as currently widespread, an adventure as interesting as random. The outcome is never safe for the project bearer, who ultimately may have to rely on traditional financial systems, that you know does not offer the most favorable financing conditions.
Maximum PubliCash, true to his vision for MPCash community, heard the distress cry of project bearers, especially ''small business'' young people, women, start-ups, who have no guaranty to present to the great finance. That's why, it created its own participatory funding or Crowdfunding 4.0.
How then does fundraising by the Crowdfunding 4.0 of MPCash work?
Crowdfunding 4.0 is the royal route to a safe funding of your project for sure; Jusf follow the steps!
- First of all, make sure you are previously registered on www.maximumpublicash.com or www.maximumpublicash.net then
- Submit your project to MPCash
- Our experts assess your project
This assessment consist of identifying scenarios from some key information of your project: Objective of fundraising, your personal contribution in Flash Box equivalent for the opening of the lift, desired date of availability of the funds, intrinsic value of the project, probable excitement around the project etc ... This is to determine as clearly as possible, how much participation taking units to the participatory electronic tontine of MPCash (Flash Box to 71% ROI) will be needed to raise the money you need, and in how many cycles or rotations of the tontine, in light of the overall dynamics of the moment, for the desired time frame?
We communicate the conclusions of the assessment to you and, if you agree, we set your project for fundraising through the participatory electronic tontine on MaximumPubliCash platform and, avail to you, your project codes;
- You subscribe and make your first purchases of Flash Box that validate the opening of the fundraising
- You advertise from the space dedicated to your project on the platform in order to mobilize MPCash members and the Internet users around your project.
- The contributions of internet users who reach us are systematically converted to Flash Box by our services until the number of required Flash Box is reached.
- Your fundraising is considered buckled when the latest Flash Box of the last rotation that allows to credit your balance of the targeted amount without further need to reinvest receive their ROI.
In the table below, we present a fundraising simulation, according to the basic model where it's actually the promoter who finances his project alone as a single contributor, just by exploiting the power of the system , which plays the role of an incubator that expands his own contribution through a number of investment cycles or rotations of the tontine.
Project Key Information:
- Total project cost = 8000 Euro
- Investment already made by the promoter = 3000 Euro
- Objective of fundraising: 5000 Euro
- Promoter’s contribution to start fundraising: 350 Euro (equivalent to 10 Flash Box with 71% ROI of the tontine)
- Desired time frame for availability of the funds: in 6 months
Conclusion of the assessment :
- Probable participation of contributors = low
- Significant contribution of the promoter, for raising funds even without contribution from third parties.
FUNDRAISING SIMULATION IN NO CONTRIBUTION MODE, WITH PERSONNEL INPUT OF 10 FLASH BOX FROM THE PROMOTER
(Amounts in EURO)
# Cycle / Rotation |
Number of Flash Box
1 |
Value invested / reinvested
2= 1x35 |
Return On Investment (ROI)
3= 2 + 71% (2) |
Available for reinvestising after fees (6%)
4= 3-6% (3)+6 |
Affordable No. of Flash Box
. 5= 4/35 |
Balance after reinvest-ing
6= 4-5x35 |
1 |
10 |
350 |
600.00 |
564.00 |
16 |
4.00 |
2 |
16 |
560 |
960.00 |
906.40 |
25 |
31.40 |
3 |
25 |
875 |
1 500,00 |
1 441.40 |
41 |
6.40 |
4 |
41 |
1435 |
2 460,00 |
2 318.80 |
66 |
8.80 |
5 |
66 |
2310 |
3 960,00 |
3 731.20 |
106 |
21,20 |
6 |
106 |
3710 |
6 360,00 |
5 999.60 |
171 |
14.60 |
7 |
171 |
5985 |
10 260.00 |
9 659.00 |
275 |
34,00 |
8 |
275 |
9625 |
16 500.00 |
15 544.00 |
444 |
4.00 |
9 |
444 |
15,540 |
26 640.00 |
25 045.60 |
715 |
20.60 |
10 |
715 |
25025 |
42 900.00 |
40 346.60 |
1152 |
26,60 |
What can we learn from this example?:
1. the contribution of the promoter to start fundraising accounts for 7%;
2. 84 Box Flash (71% ROI) are needed to cover the financing needs of the project. This means that if the promoter initially has this Euro equivalent, i.e. 84x35 = 2940 Euro, rounded to 3000 Euro, he just needed one investment cycle to achieve his objective;
3 this level is reached at the sixth rotation. The rest of the table up to 10 rotations demonstrates the potential of participatory electronic tontine in raising funds;
4. the time to 6 rotations is not defined, but at cruise speed of the tontine, this can be short and even very short;
5. any contribution from third party which might occur during this process frozen here on purpose, constitutes a disturbance (positive) that will only reduce the waiting period. So if by chance there is a strong involvement of users, the process could be reduced to 4, 3 and why not 2 rotations. This greatly shortens the duration of the fundraiser;
6. It is by taking into account all these contingencies that we estimate for medium size projects, that 3 months is a minimum setback to conclude your fundraising within acceptable timeframes.
In conclusion, this example very clearly shows that you may very well fund your project without expecting anything from someone else. The all issue is to get started with no more delay, with what you have right now and having as sole purpose and guide, your project.
With crowdfunding 4.0 MPCash, No more unsuccessful fundraising campaigns
Now, put all the odds on your side!
Pass the information around, everyone wins!