Name: 33needs
Quick Pitch: 33needs helps socially conscious startups raise money through small investments from ordinary people.
Genius Idea: Crowdfunding is changing the way ideas, projects and even films get funded. The model gives people the power to vote with financial donations for the ideas they want to see come to life. 33needs is a two week-old startup with a similar purpose, but on its platform, those who contribute funds become investors in the startups, instead of just becoming donors.
As seen with Kickstarter, startups can set up shop on 33needs to raise a set amount of funding in an allotted period of time from a community of unknown contributors. Unlike Kickstarter, 33needs startups have a social mission — though they’re still for-profit — and contributors can help them raise funds by making financial investments in denominations of their choosing.
The investments are not your traditional equity plays. Instead, contributors get a percentage of revenue for a set amount of time. For instance, a startup could offer its 33needs investor community 5% of its revenue over the course of three years.
33needs takes an all or nothing approach to social investing. If a startup reaches its goal, 33needs takes 5% of the funds raised. If the startup fails to raise the funds specified, investors get their money back and 33needs also walks away empty handed.
The crowdfunding model has been proven time and again, but 33needs approach is still being vetted by Internet denizens. Two weeks post launch, there’re no successful funding stories to report.
Fo under Josh Tetrick,...
