How the Crowdfunding Site Peerbackers Got Its Start Co-founder Sally Outlaw talks about how her site helps fledgling businesses find the money to get started.
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I was watching a prime time news program with a story about the first web-financed soccer club in England. This venture's backers were upset that only the billionaires owned sports clubs, so they reached out to the masses for small contributions. The club would take all the funding, buy players and build their own team. Within the first 48 hours, they raised $400,000. When I saw this, I thought, "Man, why isn't this being applied to entrepreneurs?"
At the time, I was trying to raise money for another venture. That's when the market was very difficult, with bank financing unavailable and the economy bad. You would meet with investors and they wouldn't get back to you. It was very difficult being in control of your own destiny.
I ran across Kickstarter and IndieGoGo, but they were focused on creative endeavors--films and music. I didn't see anything out there 100 percent dedicated to entrepreneurs. A lot of companies are not geared for the ROI that angel investors want. Crowdfunding seemed like the only viable way to get some startups funded, including my own. That's really the story of how we started--out of my own frustration.