Brisbane based high school friends launch innovative new start-up, aiming to connect investors with entrepreneurs whilst providing free automated legal documentation that would ordinarily cost tens of thousands.
And no, it’s not like every other ‘crowd-funding tool’ in the marketplace – it’s a real game changer.
Benjamin Norman and his team have identified a significant gap in the crowdfunding market. Where other platforms simply offered a place for investors and entrepreneurs to connect, they’ve delivered a platform aiming to create more tangible value for both parties.
CoFunders is different in that once an investor and entrepreneur connect and engage in a partnership, they provide entrepreneurs with standard form contracts that would usually come at an individual cost upwards of $10,000.
“We are constantly amazed at the number of start-ups and entrepreneurs entering into relationships without taking stock of their legal needs and requirements. By not investing the time and effort into understanding the implications, they risk suffering later on in the relationship” said Mitch, CoFunders’ resident start-up legal expert.
“We wanted to deliver more value to entrepreneurs and start-ups using our platform. Sure, we provide them with a free profile and access to a network of validated investors, but there are plenty operating in that space”, said Ben.
He continued “By offering standard form contracts that they would usually have to pay for, they can take the 10,000 odd dollars and put it into growing their business. This might mean investing in marketing or advertising or potentially buying equipment or resources they needed to set-up.”
CoFunders have invested heavily in the development of a leading-edge platform for investors to communicate and engage with each other.
“Getting the platform right has been a significant undertaking. We partnered with a leading digital agency to develop something unique. We wanted to create a seamless environment where business transactions could occur fluidly and most importantly, transparently – the entire user experience is important to us”, said Ben.
“From a technical perspective, we’ve been lucky to align ourselves with a partner who understands our vision and has gone above and beyond to work collaboratively with us to achieve our dream platform”, he continued.
Another key point of difference is that entrepreneurs and start-ups using the platform are not liable for any expenses at all. They only need to set-up and manage their profiles on the platform.
CoFunders innovative model means that the only costs incurred are when investors decide to invest funds into one of the listed start-ups on the platform in return for some equity. CoFunders take a 9% commission on the total investment made by the investor into the start-up with the entrepreneur having no further costs.
By completing the business transaction within the CoFunders ecosystem, entrepreneurs can have peace of mind that they can negotiate and transact without the burden of knowing a huge legal bill is heading their way.
CoFunders has officially launched as of mid-July and are actively seeking entrepreneurs and investors to register on the platform.
“We want innovative businesses seeking expert advice and funding from seasoned investors looking for their next opportunity. Although our focus is being a “match-making service”, the CoFunders site will also be an educational hub. We’ll be releasing informative content on how entrepreneurs and investors can take advantage of seed/growth capital to scale and grow”, says Ben.
If you’re looking to market your start-up and seek funding, or if you’re an investor looking for validated early-stage businesses, the team at CoFunders encourages you to register today.