Category Archives: Crowd Funding
Birchal flags the next evolution of Australias crowd-funding market with marquee capital raise announcement – Stockhead
The platform is targeting up to $2m in new funding, with cornerstone backing from a network of sophisticated investors.
Equity Crowdfunding (CSF) platform Birchal has established itself as the market-leader in Australias fast-growing CSF industry.
Now, its doing what it does best; giving investors simple access to invest in a high-growth company with scale-up ambitions but with a twist.
This time, the latest CSF raise announcement on the platform is for Birchal itself, as the company looks to consolidate its platform in whats now a major new sector in Australian capital markets.
Birchal will look to raise up to $2m in the CSF round, with cornerstone backing from a network of sophisticated investors including serial entrepreneur Dom Pym, who also co-founded the neobank UP.
With Birchal now taking expressions on interest on the platform, Stockhead caught up with Birchal Managing Director Matt Vitale to discuss the rationale for the raise and the companys outlook.
He highlighted that after 3+ years of strong growth, the business is already profitable and generating free cash-flow.
But strategically, the additional cash injection gives Birchal an opportunity to consolidate its business model as a core platform in Australias crowd funding industry.
We hosted 59 successful deals on our platform last year, so we expect that growth trend to continue. And it means we can become a very significant business over the next couple of years, Vitale said.
So the time really is now for us to accelerate into that opportunity.Since the establishment of Australias crowd funding sector in 2018, the industry has grown at around 70% annually, Vitale said.
Its now on its way to matching the UK sector, where crowd funding accounts for around 15% of broader venture capital activity.
Australia is still in its ramp-up stage, but based on the UK experience, it could be a material industry with a market size of around $500m by 2024, Vitale said.
But what we have the opportunity to do now is firmly establish crowd funding as a mainstream asset class. And when we think about what an asset class needs, it really exists on four key pillars.
To consolidate its platform, Birchal is looking to build out its platform to achieve the following four objectives;
For Vitale, the primary capital component is where Birchal has established itself as the leader in the Australian market.
Id argue the primary markets piece is probably the hardest piece of the puzzle to solve things like building an investor audience and pricing equity, Vitale said.
Its really hard and where we have an advantage is that weve been able to systemise it and repeat that success.
But for the industry to grow and be sustainable, we really need to build out an ecosystem of products and services to make crowd funding a viable and credible way for people to invest, build wealth and repeat the process recycling that capital and investing in other opportunities, he said.
So we spend a lot of time thinking about what the industry needs. What weve built is a really great origination machine, and now the market is demanding us to build these additional services.
Its actually a great place to be, and a great opportunity, and were going to deploy these funds to take advantage of it.
More broadly, Vitale said the build-out of Birchals service offering forms a key step in how crowd funding can play a key step in the future of Australias entrepreneurial economy.
I think in the early days, people thought crowd funding was primarily used by B2C companies offering products or services direct to consumers, but our experience is far broader than that, he said.
What its really driving and enabling is the growth of the entrepreneur economy, and a lot of people are really passionate about how that can contribute to Australias future.
He added that crowd funding also gives investors an effective way to allocate capital thats aligned with modern standards around ethical investing.
Weve got 130,000 users on our platform, who for the first time now have a simple and effective way to find startups that theyre interested in investing in, Vitale said.
So without getting too romantic about it, the growth of our platform is a real opportunity to change the economy and change the world from the bottom up.
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Birchal flags the next evolution of Australias crowd-funding market with marquee capital raise announcement - Stockhead
Crowdfunding Tips That Trigger The Emotion For More Giving – Digital Journal
The Owner Of Crowdfundur Announced This On His Twitter Page To A Large Audience
One famous crowd funders once said, Most giving is 80% emotion and 20% rational. The best way to get someones emotion is to tell a story. The owner of Crowdfundur is aware of this wise saying and has decided to implement it in the daily activities with clients. Thecrowdfunding marketing agencyannounced on Twitter the tips for successful crowdfunding. He reiterates the tips to trigger emotions for more giving.
Giving is a thing of the mind. Most people that give are more emotional than rational. So, one way to make people give more is to arouse their emotions over their rational thinking. We are Crowdfundur has four major characteristics that define our work. These are creation, motivation, dedication, and innovation. We are crowdfunding for startups, charity organizations, researchers, and more. We are open to attending to clients needs from all around the world. As an exclusivecrowdfunding agency,we always live by our words. We also offer one-on-one start to finish crowdfunding solutions to clients, said the owner of the agency.
There are many reasons people choose to work with us over othercrowdfunding marketing companiesaround. Our company has crowdfunding specialists. The experts here are known for their contributions in marketing, inventions, public relations business, and product development. With our 15 years in business, we have what it takes to crowdfund for businesses irrespective of the industry. Our esteemed customers are proud of our 98% success rate, and we are ready to give it that way. We are not part of the agencies that promise 100% compliance and success rate, but do our best to ensure results at any time, added the owner.
Visit the website at https://crowdfundur.com/ to get the knowledge about crowdfunding agency.
Information about the Tweet from Crowdfundur reached a large population of the public. Many people commented on the post. The comments center around the high success rate of the company. One of the happy Twitter users writes, Crowdfundur offers thebest crowdfunding promotion servicesthrough their qualified and experienced team of experts. The company can proffer solutions through their service. With the announcement of the best tips to record the best crowdfunding results from the owner, more people will be happy to contact them.
Crowdfundur is a renowned, exclusive, and trusted company in the crowd funding industry. They have the best approach to motivate their audiences into giving. Those interested in learning more about them, their services, expertise, and what they can offer at any time should clickhere.
Media ContactCompany Name: Crowdfundur LLCContact Person: SupportEmail: Send EmailPhone: (800) 862-4662Address:706 S Main St City: North CantonCountry: United StatesWebsite: https://crowdfundur.com/
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Crowdfunding Tips That Trigger The Emotion For More Giving - Digital Journal
MContent and PwC Collaborate To Showcase Cineverse to The World – PRNewswire
This week, a high-end launch event was attended by notable guests at Palm Jumeirah Dubai where MContent premiered their original co-productions titled "Ripple vs. SEC Saga" and "El Salvador vs. World Bank". The Cinema premier however was different from the norm as participants were seen glaring at the ocean sitting at a beach wearing their virtual reality (VR) headsets engaged in an immersive Cineverse experience.
Earlier in January 2022, the leading UAE conglomerate, Gargash Group, had announced a major investment in MContent, the world's first tokenised content ecosystem that aims to revolutionise the global content landscape. Designed to convert content viewers into content owners, the first-of-its-kind platform enables crowd funding of film production and capital-intensive content creators using Cryptocurrency, NFTs and the Cineverse. The platform has already funded 11 prominent film projects across 4 continents, and now, it plans to expedite the decentralised funding deployment in content creation using the parallel Cineverse economy.
Speaking at the event, Umair Masoom, Founder & CEO of MContent said, "The immersive cinema experience - designed in collaboration with PwC and showcased to our guests today has global scalability & mass adoption capability. By bringing the Cineverse to a global audience, MContent wants to increase funding & screening opportunities for thousands of independent film makers globally. As part of the decentralised ecosystem, MContent is launching the first-of-its-kind, fully monetised content consumption platform, aiming to drive sustainable earnings for content creators and viewers."
Reza Essop, PwC Middle East's Emerging Technology Leader believes that, "This is a brilliant example of the region's movement towards digital transformation and is very much in line with major wider initiatives such as Dubai Vision 2030. MContent has defined a practical application of emerging technology with the convergence of blockchain, NFT and extended reality (XR). We are incredibly proud to have facilitated this effort as well as enabled this vision from concept to reality and to a sustainable commercialised economy that can benefit many as well as lead the way for other out-of-the-box efforts."
The premier event was attended by GCC business community members, celebrities, film makers, influencers, NFT artists, movers & shakers, blockchain enthusiasts as well as some senior members of the Gargash Group who all became the first to experience the MContent Cineverse at the beach in virtual reality with two distinct original productions.
Also present at the occasion was Dr. Lamees Hamdan, leading Emirati entrepreneur and global opinion leader who recently accepted the position of Chairperson at MContent. On the vision of MContent Dr Lamees comments, "I love the disruptive nature of MContent, the ability of helping peoples dream become a reality. Where before there were barriers, and it was almost impossible for a small creator with big dreams to access production, studios and funding, at Mcontent we are giving the control back to the creators, where all of us are funding our own destiny and that is power. What we are seeing today is a manifestation of this new reality we are creating together."
The native token of MContent is currently trading at a Market Cap of over $100 million on more than six centralised and decentralised exchanges & the platform plans to fund 100 global projects by the end of 2022.
PwC has implemented and advised organisations across all industries on virtual reality (VR), augmented reality (AR) and blockchain technology, the fundamental components of the metaverse. The firm has also invested in virtual real estate on the metaverse platform The Sandbox and uses virtual world technologies to solve business problems. Jeremy Dalton, Head of Metaverse Technologies for PwC UK, said, "We now have a more immersive way to experience virtual worlds and a transparent way to transact within them. The convergence of VR, AR and blockchain to enable the metaverse concept has created opportunities and challenges for businesses across a number of industries."
Photo: https://mma.prnewswire.com/media/1754628/MContent_Cineverse.jpg
SOURCE MContent
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MContent and PwC Collaborate To Showcase Cineverse to The World - PRNewswire
DOQO magnetic wireless iPad keyboard case and hub – Geeky Gadgets
Apple iPad users searching for a multifunctional iPad keyboard case and hub may be interested in the DOQO. A refined iPad case specifically designed for the iPad Pro 11 inch offering easy attachment thanks to the integrated iPad magnets the case keyboard features an integrated hub at the rear. Offering USB 3.0 PD 20W for iPad, Two USB 3.0 5Gbps Ports 2K 60Hz HDMI Port and a handy SD card and TF card slot for storage expansion and easy transfer of images or video from cameras.
Early bird pledges are now available for the inventive project from roughly $139 or 104 (depending on current exchange rates), offering a considerable discount of approximately 27% off the recommended retail price, while the Kickstarter crowd funding is under way.
Were excited to tell you that you can now take your iPad Pro 11 to a whole new level of work functionalities. DOQO 3 is the ultimate case, keyboard, and hub that is designed to improve your workflow in every possible way, allowing you to make the most of your iPad as the work sidekick you always wanted it to be!
Do you want an easy way to use your iPad Pro 11 in any circumstance as you need it at any given time? With DOQO 3, you can simply snap your Apple tablet into the devices magnetic case, and its instantly ready to work like a convenient integrated working station with every feature you could possibly want to use.
With the assumption that the crowd funding campaign successfully raises its required pledge goal and manufacturing progresses smoothly, worldwide shipping is expected to take place sometime around August 2022. To learn more about the project checkout the promotional video below.
Snapping it out when you need your iPad right back to its original standalone state is as easy and fast as snapping it inthe magnetic case is designed to provide a seamless detachable experience that perfectly accommodates your iPad Pro 11 and lets you smoothly release it in a heartbeat.
DOQO 3 is equipped with a back magnet that is extremely powerful. It supports the detachable case function and ensures both the security of your Apple tablet and the stability of your work experience. You can make the most of your iPad with the peace of mind of knowing it will never bounce, fall off, or accidentally detach.
For a complete list of all available pledge options, stretch goals, extra media and full specifications for the , jump over to the official crowd funding campaign page by visiting the link below.
Source : Kickstarter
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DOQO magnetic wireless iPad keyboard case and hub - Geeky Gadgets
Global Crowd Funding Market Business Opportunities and Forecast to 2029 Crowd Cube Capital, Seedrs, Kickstarter The Grundy Register – The Grundy…
A market study Global Crowd Funding market examines the performance of the Crowd Funding market 2022. It encloses an in-depth analysis of the Crowd Funding market state and the competitive landscape globally. The Global Crowd Funding Market can be obtained through the market details such as growth drivers, latest developments, Crowd Funding market business strategies, regional study, and future market status. The report also covers information including Crowd Funding industry latest opportunities and challenges along with the historical and Crowd Funding market future trends. It focuses on the market dynamics that is constantly changing due to the technological advancements and socio-economic status.
Get free copy of the Crowd Funding market report 2022: https://calibreresearch.com/report/global-crowd-funding-market-183117#request-sample
Recent market study Crowd Funding Market analyses the crucial factors of the Crowd Funding market based on present industry situations, market demands, business strategies adopted by Crowd Funding market players and their growth scenario. This report isolates the Crowd Funding market based on the key players, Type, Application and Regions. First of all, Crowd Funding market report will offer deep knowledge of company profile, its basic products and specification, generated revenue, production cost, whom to contact. The report covers forecast and analysis of Crowd Funding market on global and regional level.
COVID-19 Impact Analysis:
In this report, the pre- and post-COVID impact on the market growth and development is well depicted for better understanding of the Crowd Funding Market based on the financial and industrial analysis. The COVID-19 pandemic has affected a number of market and Global Crowd Funding Market is no exception. However, the dominating players of the Global Crowd Funding Market are adamant to adopt new strategies and look for new funding resources to overcome the rising obstacles in the market growth.
Crowd Cube Capital
Seedrs
Kickstarter
Indiegogo
GoFundMe
Fundable
CircleUp Network
MicroVentures Marketplace
Have Any Query Of Crowd Funding Industry Report 2022: https://calibreresearch.com/report/global-crowd-funding-market-183117#inquiry-for-buying
Non-Equity Sources
Equity Sources
Small And Medium-Sized Enterprises (SMEs)
Large Enterprises
North America Market(United States, North American country and Mexico),Europe Market(Germany, Crowd Funding France Market, UK, Russia and Italy),Asia-Pacific market (China, Crowd Funding Japan and Korea market, Asian nation and Southeast Asia),South America (Brazil, Argentina, Republic of Colombia etc.), geographic regionAfrica (Saudi Arabian Peninsula, UAE, Egypt, Nigeria and South Africa)
The Crowd Funding report provides the past, present and future Crowd Funding industry Size, trends and the forecast information related to the expected Crowd Funding sales revenue, growth, Crowd Funding demand and supply scenario. Furthermore, the opportunities and the threats to the development of Crowd Funding market forecast period from 2022 to 2029. also covered at depth in this research document.
Get Complete Report for Better Understanding : https://calibreresearch.com/report/global-crowd-funding-market-183117
Further, the Crowd Funding report gives information on the company profile, market share and contact details along with value chain analysis of Crowd Funding industry, Crowd Funding industry rules and methodologies, circumstances driving the growth of the market and compulsion blocking the growth. Crowd Funding Market development scope and various business strategies are also mentioned in this report.
APPLICATIONS ARE OPEN FOR THE JRUE AND LAUREN HOLIDAY SOCIAL IMPACT FUND PROVIDING UP TO $1,000,000 TO BLACK-OWNED BUSINESSES AND NON-PROFITS -…
Our commitment to doing our part only grows stronger after seeing the life changing impact of the JLH Fund.
Kia Wells, a second round JLH Fund recipient and founder of Voices Corp., shared "Being a recipient of the JLH Fund grant has helped us to add new positions to increase capacity, scale services, and deepen our impact, as well as reduce the males in Marion County returning to the system. We are also able to increase economic mobility and both access and quality of education for our community."
Alexys Feaster, founder of The Kinship Advisors, is managing the JLH Social Impact Fund. She added, "The grantees in the JLH Social Impact Fund are immediately welcomed into this larger ecosystem, this community of support that we've built. Beyond the funding and mentorship, we have intentional partners and organizations that recognize our 360-degree model of providing funds, programming, and services. Major brands are now looking to us a leader in this space to collaborate with and build stronger communities focused on economic development."
An example of intentional collaboration is the JLH Fund's new partnership with Motorola andLenovo. The Lenovo Foundation has awarded support to the JLH Fund in the amount of a $50,000 cash donation. Motorola will donate 300 Moto G Stylus phones to help JLH Fund grantees incentivize their crowd funding campaigns and implement a "pay it forward" initiative, while also capturing content that documents their journey within their communities.
Working with Renee King, founder of FundBlackFounders, grantees receive coaching and training to expand their funding opportunities, including the creation of crowdfunding campaigns, that increase community engagement. King adds, "Jrue and Lauren are doing work that builds the foundation for these underrepresented businesses and organizations and the door is wide open for others to support them in this space."
Kara Still, founder of Prosperity Market and a second round JLH Fund recipient, shared "It is not just about the money - it's about the fact that we have a space where Black owners can be supported and uplifted."
Applications for the JLH Social Impact Fund are open now until Friday, February 25, 2022. To apply, visit http://www.jlhfund.org
For media inquiries, partnership opportunities or for more information, email [emailprotected]
About The Kinship AdvisorsThe Kinship Advisors is a Black woman-owned agency that closes the gaps and provides culturally connected strategic advisory for athletes, entertainers, and businesses resulting in greater impact in underserved communities, expanded brand development and transformative experiences. For more information, visit thekinshipadvisors.com.
About FundBlackFounders.com FundBlackFounders.comis a Black-owned and operated, socially conscious, rewards crowdfunding platform that allows everyday people to fund Black-owned businesses from start to profitability.
SOURCE Jrue and Lauren Holiday Social Impact Fund
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APPLICATIONS ARE OPEN FOR THE JRUE AND LAUREN HOLIDAY SOCIAL IMPACT FUND PROVIDING UP TO $1,000,000 TO BLACK-OWNED BUSINESSES AND NON-PROFITS -...
Soham businesses react angrily to claims of being run down – Ely Standard
Awarding 325,000 to Viva Arts for a business hub with the promise of 50 jobs has caused a backlash in Soham where a sports centre is crowd funding for 100,000 to repair its roof.
Cambridgeshire and Peterborough Combined Authority (CAPCA) signed off on the conditional loan from their 13m market towns initiative after East Cambridgeshire District Council successfully applied for the grant.
Viva narrowly won through the application process when its bid secured 75.8 per cent on an appraisal matrix (the pass rate is 75 per cent).
But it was comments made by Cllr Joshua Schumann, deputy leader at East Cambs Council, at the CAPCA board meeting that has enraged some residents.
Cllr Schumann said the location of the proposed new hub at Spencer Mill and next to the rail station was ideal.
"Very close to Spencer Mill is a small cluster of industrial units, which have become in state of disrepair and become unviable, he said.
Photo of Ross Peers sports centre roof being used in 100,000 crowdfunding repair plea- Credit: Ross Peers
Viva would develop that area, he said, and it would be helped enormously by the improved connectivity the station offered.
Mayor Dr Nik Johnson told him: You sound very passionate about it.
But one businessman wants to know Did you engage with any of the existing businesses prior to putting in the grant application with regard to how they could benefit or assist in your proposal?
Could you also address the issue raised around the parking and access to the mill?
Like most I would agree that money invested in Soham is beneficial.
Visualisation of Spencer Mill fully completed- Credit: Viva
But also like most I can't understand why existing facilities such as Ross Peers are having to crowd fund to repair their roof whilst money's invested elsewhere.
Would it not make sense for local council to invest in improving already existing community facilities?
Another resident felt that if the units had been empty for years how about repairing them and giving them to new businesses or businesses that are looking for new big units to rent?
And one other resident questioned why more help could not be found for the Ross Peers.
Our only multi sports facility and possible established community hub, Ross Peers is crowd funding for a new roof, said the resident.
Spencer Mill before its acquisition by Viva Arts- Credit: CCC
Isn't that where our district councillors should be directing their passion for grants?
Ross Sports has launched its crowdfunding bid for 100,000 and says it is looking at different ways of finding this sum.
So far, the fund has raised 145.
You can donate here
Cllr Schumann told one post on a Soham Facebook page that Im sure you have seen and appreciate that we have sadly lost a number of employment and industrial units around Mereside and many of these have been empty for some time.
I did not aim my comments directly at yours or any business and Im delighted that you and your business are doing well - long may that continue,
The more local employment the better, that is something which I will always welcome and support.
He added: Grant funding to support employment is available to a wide range of businesses and business people and Im sure youll join me in being pleased to see money being spent in Soham and the surrounding areas.
New look to Soham with opening day of Soham station last December- Credit: Archant
CAPCA says its 13m market towns fund is to ensure our towns remain vibrant and thriving places.
Hewdon Consulting Ltd of London drew up the appraisal report that recommended the Viva award.
If successful they are proposing to build a 3-floor extension to create flexible office space and enhance the functionality and facilities of all three floors, said their report.
This office space will be let to various groups from theatre goers, training providers, to business organisations and will help to secure a daytime income stream as opposed to solely an evening one, for the charity.
However, the 325,000 is conditional and Viva has been told to submit a suitable business case showing the rational for the project.
Viva will also be tasked with demonstrating how the 50 jobs are expected to be delivered by the project and where demand for the space is expected to come from.
Mayor Dr Nik Johnson at re-opening of Soham station. It was paid for by more than 20m provided by the combined authority (CAPCA)- Credit: Archant
They will also have to submit evidence of subsidy control (state aid) compliance and a detailed cost break down with details of a tender process and at least three quotations sought.
CAPCA says it also wants confirmation that all project revenue costs and any capital cost overrun will be met by Viva Arts and Community Group.
Viva told CAPCA it hopes to have been the project completed by December this year although Hewdon pointed out that planning has not yet been secured and contractors are still to be appointed.
The project is expected to be completed by December 2022.
The application was not submitted with a business plan showing how it will operate; source tenants from; and what its operating costs / charges are, says Hewdon.
And referencing risks, it adds that without the benefit of a business plan it is not clear how a community arts charity proposes to run a commercial operation providing business space with all the VAT and landlord and tenant obligations that accompany this.
Hewdon says the building extension is modest and should be relatively straight forward to deliver but it is still in the early stages of development.
The project is said to align strongly with CAPCAS opening up our town through better connectivity' theme following the opening of the new rail station.
The Town Plan aspires to use this an opportunity to attract businesses to base themselves here and develop the area around the station which this project will support, says Hewdon.
It says Viva Arts and Community Group have provided a list of grants received from March 2019 totalling 1.9m.
The new subsidy control bill has not yet received Royal ascent but has had its 1st reading in the Lords, says Hewdon.
The current bill permits 'services of public economic interest' at varying levels up to 15m.
If supported, an appropriate state aid (subsidy control) report is needed from the Arts group showing its compliance.
Viva says they do not propose match funding for this phase of the Mill redevelopment.
East Cambs Council leader Anna Bailey tweeted over the weekend that her party has a proposal coming to full council this month.
It will, if agreed, make capital funds available to support leisure centres in the district.
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Soham businesses react angrily to claims of being run down - Ely Standard
Kaibo Flex titanium alloy bone conductive headphones from $79 – Geeky Gadgets
The Kaibo Flex headphones also allow you to accept calls and support Microsoft Teams, Google Meet, Apple FaceTime and Zoom. Enabling you to use the bone conductive technology both at work and play. The headphones have been designed to securely stay in place whether you sitting in the office or running your favorite trail thanks to its titanium alloy frame and IP55 rating.
Early bird pledges are now available for the recently launched project from roughly $79 or 107 (depending on current exchange rates), offering a considerable discount of approximately 34% off the retail price, while the Kickstarter crowd funding is under way.
We want you to hear it all whether youre exercising outdoors, working from the local coffee shop, a multi-tasking parent at home or hard-of-hearing, our bone conduction headphones provide comfort and safety without sacrificing on audio quality. Bone conduction technology (BCT) works by sending sound vibrations to your inner ear through bone rather than the air in your ear canal. This means you can listen to your calls and music while leaving your ears open to hear your surroundings.
With the assumption that the Kaibo Flex crowd funding campaign successfully raises its required pledge goal and production progresses smoothly, worldwide shipping is expected to take place sometime around April 2022. To learn more about the Kaibo Flex bone conductive headphones project watch the promotional video below.
Kaibo Flex also features two convenient quick-charge options that we know youll love: a 5-minute quick charge gives you a whole hour of battery life while a 45-minute charge gives you another 6 hours.
For a complete list of all available pledges, stretch goals, extra media and more features for the bone conductive headphones, jump over to the official Kaibo Flex crowd funding campaign page by checking out the link below.
Source : Kickstarter
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Kaibo Flex titanium alloy bone conductive headphones from $79 - Geeky Gadgets
SupChina Have Apparently Raised US$1 Million From Crowd Funding. Is It A Good Investment? – Asia Business News – Asia Briefing
Op-Ed Commentary by Chris Devonshire-Ellis December 20th, 2021
SupChina, yes the guys who borrowed the China Briefing title for a while last year until legal action took place, have apparently raised just slightly over US$1 million in an appeal to raise five times that.
Having obtained revenues of US$515,335 in 2020, they value the company at a jaw-dropping US$45 million. Yes, you read that correctly a multiple of ninety times their actual revenues from their last accounts. Their 2019 figures showed revenues of just US$503,288, meaning their sales shot up by an underwhelming US$12,047 over the year.
Nearly half of SupChinas revenues came from Events promotion, with titles such as Beyond Shang-Chi (about Chinese superheroes), Reading The Red New Deal (about entertainment in what they term Xi Jinpings Nanny State), Landing A Job At A Think Tank (making the most of your China skills), and Is The China Career Dead? and so on. Its not really groundbreaking stuff, and geared more to the low end grad school type of content, although a handful have touched on standard content business issues. None of it is particularly original or essential, nor anything that isnt covered elsewhere on other free access blogs.
The nature of SupChinas primary content is the same, with current headlines reading: A Star Workers Suicide At Tencent, Another Trial For The DOJs Troubled China Initiative and Chinas Cultural Crackdowns indicating that SupChina hasnt really progressed much from being an opinionated outlet for sub-standard writing. So, what does an investment in SupChina and remember they have raised US$1 million from over 100 investors buy them?
The Sup China prospectus, issued in late October this year, can be viewed here.
I make the following points based upon the contents shown in their prospectus:
Risk FactorsSupChina say We are a China-focused news, information, and businesses services platform, we provide nuanced, authentic, and context-based reporting on China without bias. We believe SupChina provides superior information, perspective and analysis about China that is necessary for the time period we are entering one in which Chinas rise will steadily increase its relevance for all of us.
Investors then may be surprised to note the fact that SupChina is blacklisted as a website in China and that they failed to mention this in their investor prospectus.
I discuss other highly problematic issues within their prospectus as follows:
PropertyThe company rented property until August, 2020. Due to COVID limitations, the company decided not to renew the lease and currently conducts its operations virtually.
Read: SupChina has no material assets. We all work from home.
Current Trading SituationWe may not have enough funds to sustain the business until it becomes profitable.
If the company cannot raise sufficient funds, it may not succeed
Read: We may shortly become insolvent.
We are in a reputation-based business
Note: Their earlier 2021 legal dispute with Asia Briefing over their unauthorized use of the trademarked China Briefing brand.
The company is focused on being a China content as well as services provider.
Note: This is hard to almost impossible to accomplish when the SupChina website is China blacklisted.
Our websites and internal networks may be vulnerable to unauthorized persons accessing our systems, which could disrupt our operations.
Read: We do not possess and have not invested in sufficient internal website or security systems.
Our founder has control over all stockholder decisions because she controls a substantial majority of our voting stock. We are selling non-voting shares.
Read: Investors have no say in their investment.
No guarantee of return on investment
Exactly what it says.
You cant easily resell the securities.
Read: No-one is likely to be interested in buying this stock from you.
The companys management has discretion as to use of proceeds. Future fundraising may affect the rights of investors.
Read: You have no say in how we use your money. If we call on you as a shareholder to invest more money into SupChina, should you not do so, we may dilute your equity.
Investors in this Offering may not be entitled to a jury trial with respect to claims
Read: As part of your investment with us you have signed away the easiest opportunity of litigating against us for any reason.
Use Of ProceedsSupChina provide a breakdown of where investors money will be spent, without acknowledging any debt. Interestingly, they state they intend to allocate just 10% of proceeds into their highest revenue earning sector, their Events program, which is responsible for nearly 50% of their total revenues.
Otherwise, 30% of the total investment is allocated to future content, which basically means meeting salary overheads. Over half the proceeds are allocated to future marketing, unspecified product development and administration.
Financial statementsThe companys net revenue for the year ended December 31, 2020 was $515,335. Operating expenses in 2020 amounted to $2,134,761, an 11.7% increase from $1,910,446 in 2019. The companys net loss from operations was $1,595,498 in 2020.
The Company has incurred significant operating losses since inception. As of December 31, 2020, the company had a working capital deficit of $7,206,611 and negative shareholders equity of $7,200,611.
The company had approximately $303,707 cash on hand as of December 31, 2020. Currently, we estimate our burn rate (net cash out) to be on average $120,000 per month.
Meaning: SupChina is operating at a substantial loss. Currently, there was a shortfall of $1,595,498 in 2020, against declared assets of $303,707. Based on the 2020 declared figures, just for that year alone the company was in the red to the tune of $1,291,791.
Interestingly, Anla Cheng, the majority shareholder, issued a thank you email all the 100+ investors SupChina attracted so far last week for a very similar investment sum to the entire 2020 loss. Way to go Anla!
It appears fairly obvious where investors money will go and that is not consistent with the Use of Proceeds statement, which contains no provision for meeting existing debt. That is significant because nowhere in the Prospectus does it state that SupChinas existing shareholders plan to invest. So, who is covering up the losses? SupChina shareholders or their new investors? And if it is the new investors, how will any of the Use of Proceeds allocations be met? These points remain unclear and are not unreasonable questions for any investor to ask.
Employee CostsA 14.5% increase in employee expenses to $963,706
Note SupChina states it employs ten full-time staff, meaning the average employee overheads are about $96,370. That is at a level comparable with journalists employed at the Wall Street Journaland is roughly double that of the average journalists salary in the United States.
Investor PerksSupChina Swag T-shirt or Mug
We kid you not. But there are invitations to future events should there actually be any. So far, they have listed just three for 2022.
DividendsWe have never declared or paid cash dividends on any of our capital stock and currently do not anticipate paying any cash dividends after this offering or in the foreseeable future.
As it says on the box. Investors are highly unlikely to ever receive anything back.
Annual reportsThe company has not filed annual reports to date
There are no company reports publicly available to verify anything.
Current StatusIn June 2021 the company has run into serious financial problems
This is admitted to in a non-finance related clause named Dilution, buried on page 22.
To be fair to SupChina, they have listed with the fairly significant exception of their being China blacklisted, which they must be well aware of all the problems with their business. These can be seen above and are many. However, it is obvious the business model is not working, and it is hard to see how without any significant changes to this that it has any chance of succeeding. Of especial concern are the very high salary overheads and the fact they only expect to reinvest 10% of their prospectus income into their core business their events, which as I noted represented half their 2020 revenues. With just three events scheduled between now and April 2022 the prognosis does not look good.
Is There A Case For SupChina Misrepresentation? What is more problematic however for those people who have already parted with their investments, is SupChinas non-disclosure in their investor prospectus of their true China status.
The SupChina investment round is taking place within the terms of the US Regulation Crowdfunding program, governed ultimately by the US Securities and Exchange Commission (SEC). Within the rules for this are the following caveats for Disqualifying Events:
Disqualifying events include:
Many disqualifying events include a look-back period (for example, a court injunction that was issued within the last five years or a regulatory order that was issued within the last ten years). The look-back period is measured from the date of the disqualifying event for example, the issuance of the injunction or regulatory order and not the date of the underlying conduct that led to the disqualifying event to the date of the filing of an offering statement.
The SEC does not appear to make any distinction as to applicable jurisdictions under the phrase regulatory order or injunction, suggesting that Chinese injunctions against SupChina and the fact it is blocked in the country could apply. It would be an interesting point to debate should SupChina crowd funding investors feel this information was withheld, and had it not been, they may not have been persuaded to invest.
Within the SupChina prospectus, the name of the company, the term China, Chinese or SupChina appears 122 times. In reference to participation in China itself, the prospectus mentions numerous terms, amongst them:
China-focused news, information, and businesses services platform dedicated to helping the world understand China better by covering all news about the countrybusiness, society, culture, politics, and more.
A China-specific perspective
Featuring local Chinese sources and perspectives
A source of China-related information and insight
Around-the-clock content with contextual analysis
Again, these points can be argued. SupChina has no staff legitimately employed in China and is blacklisted there. If investors feel they should have been made aware of this prior to investing, complaints may be made directly to the SEC.
If I were given such a prospectus under these types of terms, I would view it as a desperate attempt to shore up the red losses and to try and persuade people to invest in an already problematic business model, that in SupChinas own words has serious financial problems.
Additionally, there is nothing in the prospectus that has any remedy for change. If a car is totally broken, theres no reason to keep filling it with gas. Unless you especially want a souvenir Mug or T-Shirt for doing so.
Readers can make up their own minds and view the prospectus themselves. The SupChina investor link is here.
Personally, it has to be one of the most outrageous investment offers Ive ever seen. SupChina, I strongly suspect on their prospectus and offering terms will not be around much longer. As for Jeremy Goldkorn, Kaiser Kuo, and the execrable Anthony Tao, good luck with pacifying those 100 small investors. Youre going to need it. Anla Cheng meanwhile appears set for a serious session with the scissors at her local hairdressers.
As a footnote, China Briefing turned down an offer from Singapore investors just a few weeks ago. Were not looking for investors.
Disclaimer
Any views or opinions represented in this blog are personal commentary, belong solely to the contributor and do not necessarily represent the views of Asia Briefing Limited or Dezan Shira & Associates.
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SupChina Have Apparently Raised US$1 Million From Crowd Funding. Is It A Good Investment? - Asia Business News - Asia Briefing
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Crowd Funding Market is Thriving Worldwide with Crowd Cube Capital , Seedrs , Kickstarter , Indiegogo , GoFundMe , Fundable , CircleUp Network The...