A place to find a advice on second income.
I get asked, why did WBwso go
down the route of taking onboard 5000 small investors?
WBWSO opted to seek funding
from 5,000 Angel investors rather than from a few investors
subscribing a large sum each.
It is a question of control and flexibility. Large investors will usually dictate to the company and try to influence how the company functions - ‘tail wagging the dog’ - which no self respecting entrepreneur wants to happen. Such investors could also demand, not unreasonably, shares to support their ‘risk’ investment, providing them with an equity in the company and it’s business. (If you have seen the BBCs Dragons Den program you will know all about this!)
Five thousand small investors cannot exert such demands on the company and whilst it may create an ongoing management issue, relating to the interests of a large body of investors, the appropriate software will accommodate such considerations. This leaves the management free to move the company in the direction of their choice, so long as they uphold their arrangement to the 5,000 Angels.
The only uncertainty at the outset for WBWSO was whether they could find 5,000 Angels, who will supply collectively, adequate funding to create the catalyst for their business operation. This WBWSO have done with your help and the referral incentive.
In three years time WBWSO can fulfill it’s obligation to the 5,000 Angels and steam off into the future without any outside influences in the company and 100% equity for the original entrepreneurs. Whereas the other option saddles them with shareholders for the duration and a much reduced equity in their company and their idea. This is such a special opportunity that I 'shout from the roof tops' to those people who haven't yet purchased a package or even registered with WBwso to DO SO!
