The software of the site fin7.com includes on its internal level already all the following functionalities for future activation:
Small business IPO procedure:
Possible future service extensions: IPO procedures and a Secondary Market might be activated later. |
Sell shares on fin7.com
like a small downgraded variant conforming to the concepts of an IPO on a securities exchange.
Sell shares as "Dutch auction":
The complex procedure of a Dutch Auction is a helpful solution. It enables to distribute in one go shares among several bidders with varying bids and quantities.
Reverse auction for loans.
Example for a loan: The investor will be the winner who offers within a deadline the lowest interest rate. Optional as a dutch reverse auction, to obtain the effect of bonds.
Reserve minimum result.
The project coordinator specifies a minimum result (share price, interest rate,...). This value is typically public. It cam also be hidden. If the result is below this level, the project coordinator is authorized to discard all bids and to start the procedure again.
Secondary Market for shares and loans.
The software already includes the required features to maintain a Secondary Market (Aftermarket), managed by software. This is a (very) downgraded version of a securities exchange. This might in the future perhaps enable to sell shares and participations among investors of businesses financed with the help of fin7.com .
Concepts have to be activated to hinder the risk of market manipulation. The markets per company are too small for working properly like with a securities exchange.
Conflict management and mediation.
Possible future success services for financed businesses. |
If earnings are high but not exceptional, conflicts are rare between investors and project coordinators. If a part of the money is lost, small disputes are frequent. The worst disputes occur if success is exceptional. - The recommendations for the contractual agreements will try to reduce such dispute risks as good as possible. For the remainder fin7.com
will try to implement some kind of helpful dispute settlement tools. The goal is that there should never be the need for a lawyer or a court.
Barter and cooperation circles among the financed businesses.
Based on probability statistics, cooperating business circles usually obtain an above average success. If within a community a small group lets money enter the group but hinders the money to leave the circle of privileged partners, this group has an increased success probability. This lasts as long as all the privileged members continue to be competitive or possess a monopoly.
By the way, this is the basic success principle of protectionism. Example: The successful modernization of French economy since WWII. This was successful until the protected French industry and service economy began to be not any more competitive due to its privileges. This was since approximately 1982. Statistics show a still ongoing process of deindustrialization and economic decline in France since then, but not for monopoly possessors like Airbus or the nuclear energy companies or the arms industry or tourism or local commerce.
Guarantee circles among complementary projects.
Mutual guarantee circles among small groups of projects might be helpful. This will be tried as soon as there are enough businesses financed with fin7.com .
An interesting approach might be to link complementary businesses which can protect their guarantee partners from losses just by choosing them as their service providers. - The goal of such guarantees might be to limit investor losses to the fees and losses from new life insurance contracts. The visible and hidden fees of such standard security investment might count for up to 20 % of the capital.
Guaranty concepts for a maximum loss of 30 % .
Possible future services for investors: Profit pool and loss hedging concepts. |
By some special combination with real estate mortgages the maximum risk of investors can be limited to approximately 30 %. This is a bit complicated on the contractual level. But it means that the losses of investors are limited to typical loss risk levels like usual for serious conservative segments of the financial markets. The 30 % are possibly covered by tax advantages. Investors who are sure to be willing to go this ways with 100&nsbp;000 or more US$ or EUR, please send a message to ok @ fin7.com .
To cover the initial significant agreement conception cost and the analysis of the taxation aspects, this can only be prepared in detail with investors who did already invest at least 10 000 US$ / EUR in one of the businesses agreeing to take part. These 10 000 could later be merged into the main agreement.
Loss hedging by some kind of insurance.
If the investor agrees to cover a significant part of eventual losses of his investment, an insurance agreement for the major part of the investment might be possible without excessive insurance fees.
Earnings pool among participating business owners.
If cooperating businesses have low earnings as well as high earnings, they can create an earnings pool for their investors. Think of a software company creating a new innovative user interface revolution for on-line shops, and the first 3 shops using it. The shop owners want that the software company continues to create software the interface revolution. But the license fees of 3 shops are not yet sufficient to finance the required huge software investment.
A profit pool might enable to distribute a part of the shop earnings to the investors of the software company even if the earnings in the software company are far below the annual spending. One day the shop investors might in turn be the winners of high earnings caused by the interface software revolution. This is the effect why such a pool can be helpful.
This example has a real background. A Berlin developer is working on such a revolution of the user interface, and is waiting for an investor. .
The services and features described here above will be activated step-by-step when considered suitable. |
The current site concept of fin7.com
is already prepared for these possible future extensions. But it is not sure if or when or how such advanced features will be activated. It is intended to approach these goals in small steps for those project coordinators who pay correctly the site fees.
Extended future services will only be available for those project coordinators who fulfilled the obligation to pay the moderate site fee for a successful search of investment partners. If you are an investor you should take care that the fee is paid.
There is intentionally no intention to control the money flow from investors to project coordinators. This is because there is no intention to be involved in any manner in the management of the business activities which will be financed. The service by fin7.com
is strictly neutral. This means a relatively limited control of the question if investors entered a project.
But investors and those receiving the money, both have good reason to make sure that the fees are paid. There is nearly no investment in innovative businesses without some later occasional problems. Only a lot of comparative experience and business knowledge can typically settle such problems. We will try our best to permanently extend a knowledge library how to settle the various problem types. In case of problems you will get access codes to corresponding solutions in the knowledge library.
So investors have good reason to take care that the project coordinator pays the site fees. It is the project coordinator and not the investor who pays.
Most of the services described above can already now be coordinated
- as a pilot project on a case-by-case basis. Minimum total investment for now for this: 50 000 US$ & EURO. For legal reasons, such services can not become an integrated feature of the site fin7.com .
Such additional services have to be located on a related site.
No Afttermarket (Secondary Market) for now? There is a solution:
Shares, participations and loans can already now be offered by yourself on fin7.com
to other investors. This is a Secondary Market on a simplified advertisement level.