Crowd Sourced Funding, Pitching, and Entrepreneurs

Social Collaborative Business Ventures

SocialCollaborativeVentures

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This is a follow on to an earlier concept, Crowd Sourced Venture Capitalism. The key is to establish a collaboration of entrepreneurship where many people can get involved and own various levels of the process of bringing a business concept to life. Ultimately the survival of a business is dependent on the team that executes. It is this understanding that has fostered a more elaborate plan than simple crowd sourced investment.

The concept is founded upon a four tier architecture, with nonexclusive subgroups:

  1. Idea Mavens
  2. Social Venture Investors (Crowd Sourced)
  3. Entrepreneurs or Developers depending on the nature of the concept
  4. Venture Fund Managers to Oversee projects

Idea Mavens

This role is characterized by folks who come up with ideas behind new business areas. Not only are they responsible for coming up with ideas, but must have an effective pitch with a well developed plan for the execution of that business concept. The crowd sourced venture investors are the ultimate authority on which ventures are funded and which ideas are abandoned.

Social Venture Investors

This group represents the group of people that have the spirit and desire of angel investors or venture capitalists, but much less liquid capital to invest or risk in a single startup. Their level of investment is small individually ($5-10k) but in aggregate they could represent billions of potential of investment dollars.

Entrepreneurs, Developers, The Business Executors

These serial entrepreneurs represent the primary caretakers of the business ideas developed and selected by the social venture investors. They are selected by the social venture investors and matched with an business/project that they have chosen to champion.

Venture Fund Managers

I described these important folks in my earlier post, but any good venture firm could fulfill this need.

The system will require a complete track record of venture firms with representation of their current strategies and holdings. Arguably, the greatest value of venture firms is not the cash they provide, but the powerful networking and many years of practical business experience they leverage for the success of any of their portfolio companies. Leaders in the field of startups Fred Wilson, NYC venture capitalist icon and Paul Graham, Y Combinator early investment hub leader , freely share their greatest lessons learned. The business of picking great startups isn’t magic, it’s a complex but practical problem space and is rooted in the philosophy of industry change, or disruption and investing in several startup groups. In my layman’s understanding, what it boils down to is choosing and cultivating both leaders and teams with the right mindsets and strategies.

Here’s a short video where I talk about the concept:

*Post Updated thanks to the Vladimir Vukicevic’s comment on the missing piece of the puzzle, the venture fund manager.*

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  • http://twitter.com/Vukicevic Vladimir Vukicevic

    It's an interesting concept. I've heard similar ideas before – and I think the biggest argument against it is the difficulty for the crowd sourced VCs to manage the new startups.

    Maybe if you threw in some sort of voting or rotating board member seat so that the many VCs can pick one capable member to steer the ship.

  • http://www.victusspiritus.com/ Mark Essel

    Thank you so much for pointing this out Vladimir. In my original post I suggested such a Venture Fund Manager but failed to include that very important role in this concept. I updated the chart and will update the post shortly. Good going sir!

  • http://www.growvc.com valto

    So funny how the internet works. I found your site via Zemanta, via ping to one of our posts. Not only is it great tool when writing posts, but also finding new related blogs of others.

    At Grow VC we have been working with this type of idea for a year now and just end of June we launched as private beta. Yet after year of hard work behind us we are just starting with this and we have so much still to do.

  • http://twitter.com/Vukicevic Vladimir Vukicevic

    No problem. It's a good concept. I wouldn't be surprised if there are different groups around the world already trying it out – as valto's post indicates.

  • http://www.victusspiritus.com/ Mark Essel

    Blog an ye shall receive. Great news valto, which site is your business? I'd love to read more about it. How goes the journey, is there anything we independent bloggers can do to help?

  • http://www.growvc.com valto

    Indeed. The site is http://www.growvc.com and you can read about our journey so far, from our blog at http://www.growvc.com/blog – We are currently in private beta.

    Naturally we welcome everyone that is interested to join us, to help develop our service better, give us feedback and ideas. Also we are willing to cooperate in various levels. And if nothing else, spreading the word is highly appreciated :)

    If you would like to get an invite to our private beta, please let me know.

  • http://www.victusspiritus.com/ Mark Essel

    By all means shoot me an invite code if you would be so kind. You can reach me at messel at gmail dot com.

  • http://www.growvc.com valto

    So funny how the internet works. I found your site via Zemanta, via ping to one of our posts. Not only is it great tool when writing posts, but also finding new related blogs of others.

    At Grow VC we have been working with this type of idea for a year now and just end of June we launched as private beta. Yet after year of hard work behind us we are just starting with this and we have so much still to do.

  • http://vukicevic.blogspot.com/ Vladimir Vukicevic

    No problem. It's a good concept. I wouldn't be surprised if there are different groups around the world already trying it out – as valto's post indicates.

  • http://www.victusspiritus.com/ Mark Essel

    Blog an ye shall receive. Great news valto, which site is your business? I'd love to read more about it. How goes the journey, is there anything we independent bloggers can do to help?

  • http://www.growvc.com valto

    Indeed. The site is http://www.growvc.com and you can read about our journey so far, from our blog at http://www.growvc.com/blog – We are currently in private beta.

    Naturally we welcome everyone that is interested to join us, to help develop our service better, give us feedback and ideas. Also we are willing to cooperate in various levels. And if nothing else, spreading the word is highly appreciated :)

    If you would like to get an invite to our private beta, please let me know.

  • http://www.victusspiritus.com/ Mark Essel

    By all means shoot me an invite code if you would be so kind. You can reach me at messel at gmail dot com.