Crowdfunding is a non-equity investment in emerging companies. It is based on micro-finance and is a new way to support entrepreneurs and those with great ideas. Community crowdfunding, then, bolsters the community and helps change the culture to one of support and understanding of small business as opposed to fearing the perceived instability of a smaller company. In Community Crowdfunding, the community decides which projects are of value to the community, and which are not. Giving back to the community is another key element to this new concept. Since each opportunity was started by the community, those that successfully fund their ideas through Fund St. Louis are expected to then support the community by helping fund another idea on this site.
In this way, we bypass the old mechanisms that are not encouraging to small business and bring matters into the hands of the community. It’s a great way to test concepts, to showcase our community, and to get the resources necessary and vital to the creation of your dream.
It’s a new concept in St. Louis, but based on a framework and idea that is working in other cities (and countries) and we think it will work fantastically here in our region to.