Have you ever watched Shark Tank or been on Kickstarter? You probably know how hard it is to pitch your idea or product to a group of potential investors in order to make it come true. Luckily, San Francisco-based RocketClub has a solution for startups to attract investors and shareholders.
Originally founded in 2014 and designed/ created by Erik Chan and Paul Chen, RocketClub is different from crowdfund websites like Kickstarter for allowing people who do tasks a small share in the company while Kickstarter only gives rewards for financial investments by people who find the project interesting and not allowing contributors to participate in what they fund.
“Kickstarter’s goal is to fund creative projects through offering supporters rewards. RocketClub is different in that we help connect startups with early adopters through making them part-owners with a stake in the company.” -RocketClub
For a $0.00 initial investment, you can accumulate points by completing tasks such as giving feedback, reviews, referring people, sharing on social media and product testing and if you earn a certain amount of points, you can exchange them for Stock Appreciation Rights which is a small percentage of stake in the startup.
“Money is not the only resource startups need — we help to provide them with early believers. Our mission is to make startup ownership available to everyone. Afterall, user adoption is the lifeblood of all products.” -RocketClub
RocketClub’s idea is to capture the attention of a startup’s early users so that they can start using it and help grow the startup so that it can go mainstream via the contributors’ social media or referrals.
With RocketClub slowly growing, Erik and Paul have decided to post their startup on the platform so that anyone can join in on this intriguing idea. With a 1% stake in the company invested in the campaign, it is set and equal to about 100,000 points so if you were to have 100,000 points, you could exchange that for 1% equity in the company and you are eligible to trade your 1% for the equity value paid in fiat currency when the company is acquired or goes public.
Do you have a startup that needs help? Are you willing to give up at least 1% to get people to spread news of your startup? This might be the best tool for you.