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Ask for money for your projects: Click here:   fin7.com "Flash speed": You can immediately and instantly register your project needing to be financed. 20 minutes are sufficient. Boring preparation is not required. Just get started, type your description, and the job is done. New. Every day software improvements are implemented on fin7.com . Improvements and additional features wanted? Suggestions to: ok @ fin7.com Your ideas are welcome. We are proud to have the in-house skills to implement them. But sorry to tell the truth, even more welcome is your money as future co-investor of fin7.com . Contact: ok @ fin7.com (a) For paid services related to the content of this page. (b) If you want to invest in this site or in fin7.com or in various related sites. (c) If you want so suggest modifications of the text. For example to respect legal aspects; or just in order to improve the "international" English language level of this page to "true" English. - Please copy the original text into your email. Then please add the rectification.

You can use fin7.com for crowdfinancing.

fin7.com can be used for crowdfinancing.

This means: You can simpliy within your description supply all information which is typical for crowd funding sites. There is no no long input procedure for this.

Do not confound crowd "financing" with crowd "funding".

Crowd funding: The money has gone - forever.

Crowd financing: The money should be paid back in the future or should result in paid interest or in some participation in the profits of the business.

"Crowdfinancing": The meaning and the history.

Since 3000 or more years... See the end of this page text for the details.

During the next days the functions for "crowdfinancing" will be added on fin7.com

Planned for the next days. - Please see also the information page:

You should also view the information page about "crowdfunding" (hence not "financing" :

» crowdfunding - on fin7.com   EN DE FR

Your choice of amounts on fin7.com for crowdfinancing.

Minimum amounts recommended for crowdfinancing on fin7.com

It is recommended to set the minimum amount to 200 US$. It would be extremely difficult for a small business to deal on the accounting and support level with 1000 "investors" with a contribution of only 20 US$. In fact, the average value on some crowdfinancing sites had been measured here with 300 US$ or EUR.

A minimum amount of 200 US$ / EUR is a good minimum level to catch all possible investors. 300 or 500 US$ / EUR would be a better minimum amount under the point of view of accounting and administration during many years. But you will in this case not catch those investors who want to limit there spending to a mind-size level of spending.

People are willing to spend up to 200 US$ or EUR based on relatively emotional consumer considerations. This is why products in luxury shops for average consumers typically have prices below the 200 limit. Above this limit people tend to examine the project in detail. But most consumers are unable to make a reliable business risk evaluation. So this does not help them to make a decision. It just makes that they mostly will do nothing above a 200 limit.

On the other hand, if you want to keep your business free from the typical later support and service problems with consumer type investors then it is a good choice to set the minimum investment to 500 US$ or EUR. But this might cause that your campaign would perhaps not collect enough money.

Higher amounts should be a multiple of the smallest amount.

Let us say that you fixed the minimum amount as 200 US$ / EUR. Then an additional option of 700 would be a bad choice. An option of 800 might be a good choice.

You should always keep in mind to standardize in the long run the used financial instruments. In this case the smallest amount like 200 would become the basic unit. The amount of 800 would correspond to 4 units, hence to 4 "shares". It is important to observe this since the beginning. If your business might grow, you should be prepared for a smooth transition of the past shareholders into your new extended capital stock. This reduces bureaucratic accounting needs and the risk of legal disputes.

What is "crowdfinancing"?

"crowdfinancing" is the small equivalent of selling shares or bonds on an organized stock exchange.

More precisely, company shares or company bonds are sold for the first time. The official regulated form of this is in case of company shares the IPO, the initial public offering. - So far there is no "secondary market", no "aftermarket", for the financial instruments of very small companies. Among other aspects, there are significant risks of illegal manipulation of ratings for financial instruments with small markets. When a market is extremely small, there is no "market" in the sense of economic theory.

History: For bonds the first proof goes back to the Mesopotamian cultures.

For shares the first proof goes back to the Roman civilization 400 B.C.. Organized financial markets began in Europe since 1600 when the significant risks of ship transport and of colonial companies had to be shared: "shares" of the capital stock.

Since 100 or more years, permanently increasing regulation excludes small companies and startups from such organized forms of financing.

This is an important political error for the case of small businesses. For small businesses such intensive regulation does not fit. The regulation requirements cost far more than the small capital amounts to raise.

The solution? - Since 2011 crowdfinancing is becoming a more frequent activity on the web.

Reminder: Europe is not the only place of developing and advancing human civilization....

China probably reached the state of organized civilization and economy for many aspects earlier than the Mediterranean region and was ahead during thousands of years.

Thousands of years before both there was probably a highly developed civilization in the region of the Sahara which is perhaps the initial origin of both. We do not know this until now because it is too difficult to discover the traces of what is probably the mother of developed human civilizations. It is very probably that the investment needs required some form of past crowdfinancing. During the beginning desertification significant investment was required to try to survive. The Garamantes civilization in the Sahara, probably the last surviver, supplies proof of the adopted investment instruments.

This was detailed here in order to supply proof that crowdfinancing occurs whenever investment need occurs.

The regulation of the financial markets has only large size companies in mind. This has since at least 100 years excluded small businesses from this natural access to financial resources. In recent times banks and public funds have definitely failed to cover the financial needs of small innovative technology businesses in most developed countries. Crowdfinancing on the Internet restores the very natural solution for innovation and for technology projects and for inventors and new entrepreneurs.

Cordfinancing: There are basic problems involved.

They can be resolved by concepts of free interaction between the agreement partners. -_Ys2_ The site fin7.com tries to supply legal and well balanced solutions for this approach. In this case the problem risks can be balanced by careful individual agreements.

This eliminates a lot of problems but causes the need that an expert should assist for the coordination of the agreements. - The major advantage is that there is no restriction which businesses might benefit. In addition, all types of financial resources can be used and can be mixed. If properly conceived, a smooth transition is possible to increased financial support. Financial agreements can be kept scalable conforming to the success speed of the project.

Cordfinancing: There are basic problems involved.

They can be resolved by concepts of free interaction between the agreement partners. -_Ys2_ The site fin7.com tries to supply legal and well balanced solutions for this approach. In this case the problem risks can be balanced by careful individual agreements.

This eliminates a lot of problems but causes the need that an expert should assist for the coordination of the agreements. - The major advantage is that there is no restriction which businesses might benefit. In addition, all types of financial resources can be used and can be mixed. If properly conceived, a smooth transition is possible to increased financial support. Financial agreements can be kept scalable conforming to the success speed of the project.

Other crowdfinancing sites mostly use very different concepts by organizing a permanent shareholder community.

This solution is apparently working well for collecting contributions. It is surely an efficient solution. But it restricts the variety of investment concepts. It therefore requires careful selection of projects which fit into the scheme. So this concept can only settle the financial needs of a small segment of projects lacking financial resources.

The company of the initial crowdfunding site is for many years some kind of hidden venture capital investor. The many private shareholders are in the economic role of refinancing, not of directly financing. But it differs from an traditional investor community for a venture capital company. This is because the mane shareholders hold shares of one single company and are in a contractual manner related to it. This increases their rights but reduces the effect of risk balancing. On the other hand, risk balancing can be obtained if the shareholders opt to finance this way many of such businesses at the same time with smaller amounts instead of betting with all their money on one single company.

A hidden problem is involved, too. In case of the usual failure quote of new small businesses there might be difficult conflicts in 5 years or so. It depends from the agreement details of the contract package if such difficulties can be settled easily.

There are no working financial markets of the debt or the capital stock of such small companies. There is no secondary market for it. This has a simple reason: It is close to impossible to create properly working markets for such very small companies with a limited number of shareholders, most of them being not professional investors. Crowdfinancing sites handle these aspects mostly in a coherent and credible manner. The advantage and also disadvantage is that the new business has a strong partner for mediation. The business owners do not have an unlimited freedom to negotiate with their investors because the relationship is not direct. In addition, if there are 300 investors with an average investment of 300 US$ or EUR, negotiations for later perhaps needed agreement modifications are close to impossible.

The typical crowdfinancing sites are a perfect solution for a specific segment new businesses.

Some setbacks have been specified. The advantages are clearly more important then the setbacks. If your project fits for this type of crowdfunding, make use of it.

All those who can not go this way and have not been selected, can try to succeed in some other manner. - Crowdfinancing is as for 2012 in Europe (example: Germany) involved in less than 1 from 10 000 projects searching for money. The other 99.9 % have to try other solutions.

One of these other solutions is: fin7.com

There are various other solutions. When reading all pages about such topics on this site, you will be able to understand why so many companies and organizations promise money but not for those who really need it and not for the projects which really merit it. It will save you a lot of time and deceptions when you read and observe all this experience of many others. You can concentrate your efforts on the small and very very extremely small remainder of really efficient and fair and competent financial resource providers for your project.