Earlier this month, I visited the Forbes 30under30 Summit to announce the newest offering from the world’s first collaborative lender: Able Start. Born from popular demand, Able Start allows credible entrepreneurs with viable business plans to use the Able platform to raise 100% of their funds through custom loan agreements with their friends, family and fans. Founders keep all of their equity and set their own terms and interest rates.
We started our beta phase of Able Start by talking with millennial entrepreneurs because 56% of them say they want to start their own business - and many are naturally in their earliest stages of fundraising. Like their more established counterparts, they are negatively impacted by the credit crisis and lack access to the funds they need to turn smart ideas into reality.
I was curious to learn more about their fundraising strategy - and especially about their experiences borrowing (or not borrowing) from friends and family. Our sense at Able is that it can feel awkward - and get messy - but that it can also be the stepping stone that gives an entrepreneur the opportunity they need.
My conversations showed me we may be on the right path…
Here are 4 examples of millennial perspectives - and the ways that Able Start corresponds.
You shouldn’t turn your friends and family into debt collectors. Able Start allows you to protect your relationships.
At Able, we think your backers deserve interest - but we think you should set your rates. Able Start allows you to do just that.
Able Start gives you a secure way to turn belief into capital.
When you need funding, but aren’t comfortable sharing equity with investors, Able Start takes the awkwardness out of borrowing money from friends and family.