June 19, 2015
Whether you are in the process of building a tech startup or are an experienced angel funder, it can be extremely beneficial to gain quick access to the right projects and people to help bring your dreams to fruition. After all, there are new startups being created every single day, and this creates stiff competition for the available investment dollars. Additionally, angel investors can be the launching pad for a viable startup idea, but they need to be able to connect with the right deals. This is where DreamFunded steps in and helps bring like-minded people together to take startups from the concept phase to actually launching their products or services.
How Does DreamFunded Work?
DreamFunded enables accredited investors to choose from vetted startup projects. To be given the status of accredited investor, it is necessary to have either a minimum annual salary of $200,000 or a net worth that exceeds $1 million. As long as potential investors can meet these terms, they will be able to browse through each of the startups that DreamFunded has agreed to work with.
Not just any startup will be given space to look for investors via their platform. Instead, startups that wish to get involved in this program must pass the prescreening process. In the traditional investment world, individuals who are willing to provide financial backing for a startup are required to do all of their own due diligence. DreamFunded takes care of this step by conducting everything from background checks to an analysis of the competitive environment. In other words, the startups that are listed on DreamFunded are not guaranteed to become successful, but they do have all of the right components in place to make them a wise investment opportunity.
What Sets DreamFunded Apart?
It is usually necessary for an angel investor to make a significant financial contribution in order to get involved with a startup. However, DreamFunded is taking this in a new direction by letting their members invest as little as $1,000 per project. Another exciting aspect is that they are planning on eventually expanding their reach to allow any adult to invest in the Silicon Valley startups that pass their vetting process.
DreamFunded was launched in 2014, and it quickly became so successful that the company’s CEO, Manny Fernandez, was given the Startups Showcase “SF Angel Investor of the Year” award. Co-founders Fernandez, Rexford R. Hibbs, Darnell Kemp and investment mentor Bill Payne also recently received kudos for DreamFunded by Entrepreneur when their company was named one of the 25 Businesses That Make Life Simpler for Other Businesses. These achievements have led to a membership base of more than 4,000 accredited investors.
Although there are certain to be some projects vetted by DreamFunded that do not hit their goal, this definitely seems like a less confusing and more secure way for investors to pick startups. Thomas Edison once said that “opportunity is missed by most people,” but DreamFunded gives both sides of the equation the ability to take calculated risks that could lead to major rewards.
Image credit: Christian Rondeau/ Flickr
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