How to use KarenCrowd?

1. Build your funding plan: Make the case for why funding your project is the donor’s best use of their donated money. Use KarenCrowd assistance in finalizing your plan in accordance with best practices to ensure successful funding of your project.

2. Launch it to the World: Utilize the power of your sphere of influence to spread your project far and wide. The easily sharable and user friendly project will lay out the case for funding and allow for easy funding in whatever amount the investor wishes to give.

3. Track Funding Progress: KarenCrowd’s real time tracking of your fundraising project keeps you and your investor in the loop with your funding progress.

4. Keep investor in the Loop: Post updates and have a database of investor contact information to keep them up to date with your execution progress. KarenCrowd communication tool is second to none.

5. Get Valuable Feedback: Receive instant feedback on your funding project through the comments section of your project. Instantly communicate with investors and mentors, answer their questions, and get them comfortable with your projects.

How do I prevent potential investors from stealing my idea?

It is rare for someone to care enough about your idea to steal it.  Furthermore, investors want to invest, not execute and operate companies. An idea without execution is worthless. If you are still worried, much of your KarenCrowd project profile input is optional.  So, leave sensitive information off of your profile.

Is KarenCrowd just for high-tech and high-growth businesses?

No.  KarenCrowd is designed with flexibility to accommodate all ranges of private businesses, whether it's an international biotech company or a pre-revenue software start-up. Although we support all types of business to come and create their project but we must say that mostly technology empowered companies are more likely to attract investors, raise fund and have successful project.

What is due diligence process for startups?

Let’s say that you have successfully raised the fund for your business. Before we complete the documentation and transfer the funds to you, we will conduct a straightforward due diligence process on your company. This process is not meant to make an investment judgment about your business—the investors have already done that—but rather to make sure the company is set up correctly and certain legal matters are in order. We will send you a short due diligence request list and, based on your answers, we may ask you for follow-up information. We will also speak with your directors and may do some other checks. If you respond promptly to our questions, we can usually complete this process quite quickly.

How should I start as an investor?

Upon logging onto the platform you will be able to view the businesses available for investment. You will initially see summary information about the businesses that are currently seeking capital through KarenCrowd.com. You can click through any project summary to see additional information about the business. The detailed project is the information upon which you will make an investment decision with respect to the business. All projects on the platform are created either by a KarenCrowd member acting as an entrepreneur or by us.

What is an investing Process on KarenCrowd?

When you choose to make an investment through the platform, you will have all the legal documents post project success in the legal entity or arrangement that operates the business which we refer as an "investee company". Also after logging into the platform you will be able to access a section called "Portfolio" which shows your history as an investor with us.

When you make and pay for an investment through the KarenCrowd platform, the amount of money you have invested will be transferred to KarenCrowd till the last moment of relevant project.

How I can cancel my investments?

For the period between when you make the investment and when it is completed, the money is still available for you to withdraw but once the investment is completed, the money will be transferred, along with the money committed by other investors, to the investee company. You may cancel your investment on any project before its deadline but you will not receive all your money back.

In the case of some investments, you may have cancellation rights for a specified period of time before the deadline of the project. If your exercise a right to cancel under such Investment Agreement, we could not be able to refund 100% of the amount of your investment to you. KarenCrowd.com reserves the right to take a 5% of it to cover transaction, administration, tax, etc. costs.

Does KarenCrowd guarantee my investment?

No, although we will review every project that you see on the platform but you should note that in the case of factual statements, the evidence we review is provided by the business, and while we take reasonable care in our review we do not audit it, which means that we may not be able to, and will not be liable if we fail to, identify forged or altered evidence or information or deliberately misleading or inaccurate statements. You should further note that in the case of aspiration statements or statements of opinion or belief, the nature of early-stage businesses is such that they are likely to have high ambitions, and we may approve statements that convey those ambitions even where we do not have a view on whether it is likely that they will be fully realized, and approval does not convey a belief on our part that it is likely that they will be fully realized.

Our approval of a project does not mean that we are recommending that you make an investment in the business, that we believe the business is likely to be successful or that we take any responsibility or will in any way be liable to you if the business is not successful. The investment decision with respect to any investment through the platform is yours and yours alone. Other than what is contained in the project, we have not reviewed or approved any information about the business, including any information discussed in the Q&A section that accompanies a business's project or on websites that are linked to from the project (such as, without limitation, the website for the business or the social media profiles of entrepreneurs or of the business itself), and you may not rely on any such information in making your investment decision.

Should users invest money in one business or small amounts in multiple businesses?

We think that the better practice is to diversify by investing small amounts in multiple businesses. Because the distribution of returns from early – stage businesses is highly skewed - meaning that the majority of startups fail, and most of the profits come from a few big successes - investors are more likely to make a profit by investing in a number of businesses in the hopes that the successes of a few outweigh the losses of the rest.

Do I need to be part of an angel group, or can I invest on my own?

You do not need to be part of any group to invest. The increasing popularity of Crowdfunding is bringing more and more individual investors into the private domain.  There are hundreds of individual investors using KarenCrowd.

Who is mentor in KarenCrowd?

A mentor is a person or friend who guides a less experienced person by building trust and modeling positive behaviors. An effective mentor understands that his or her role is to be dependable, engaged, authentic, and tuned into the needs of the mentee.  

In KarenCrowd we believe that a mentor is a person with more experience in business, or simply in life, who can help an entrepreneur hone her or his abilities and advise him or her on navigating new challenges. A mentor can be a boon to an entrepreneur in a broad range of scenarios, whether they provide pointers on business strategy, bolster your networking efforts or act as confidantes when your work-life balance gets out of whack

KarenCrowd provides a platform for mentor to come and became a member and fill the “Mentor’s Profile”. Mentors will share their experience and expertise with us and will be authorized by KarenCrowd to send mentorship comments on the projects pages.

KarenCrowd will provide a certain indicator to differentiate their comments among others so a Project creator will know which comment is more serious and could follow-up with mentors on each stage.

How to maximize the mentor relationship?

Once you've established a connection trough KarenCrowd, and there is interest from both sides, it's important to build a relationship over time. One way to do this is to check in regularly by comments section in KarenCrowd platform. Mentors should love to see your progress and take pride in knowing that their input has been helpful. Send a monthly note that reminds them of your past conversations and updates them on your progress.

You may also ask new question in these messages to ensure the conversation continues. It's important to keep these check-in messages short and to the point and not ask for too much at a time.

What is Equity Crowdfunding?

Equity Crowdfunding is a type of Crowdfunding where the investor receives ownership (i.e. “equity”) in the company in exchange for the investment.  Equity Crowdfunding is different from reward-based Crowdfunding sites, where backers only receive a product or service gift from the company, not company ownership. Today, equity Crowdfunding is possible only for accredited investors. That means all participants must fill a questionnaire in KarenCrowd.com to be an accredited investor.  The most common way a person qualifies is by meeting certain level of income or net worth.

Why do businesses need to raise investment?

When an entrepreneur starts a new venture, they usually need money to turn the idea into the beginnings of an actual business that can reach out to customers and later-stage investors. Depending on the business, this capital might allow them to build a minimum viable product (technology startups), buy equipment (manufacturing startups), lease space and acquire inventory (retailing startups), hire a great team, expand their market and customer acquisition efforts, and so forth.

How should I start?

First you must sign up to become a KarenCrowd member. You can find Sign up link on the top of each page. Next step would be to read Guides which we provided to help you chose your way. These Guides show you process for each type of user.  If you have any questions on the process or how to get started, contact us at info@KarenCrowd.com.

How KarenCrowd helps entrepreneurship community?

At KarenCrowd, we hold ourselves, our startups and our investors to very high standards because we want every company that raises funding on KarenCrowd to be set up with the best chances for success in the future. Achieving success for a startup often means being able to go on and raise follow-on funding from large angel syndicates or venture capital firms and eventually go on to a successful merger, acquisition, private equity investment or IPO.

We’ve always set our legal standards at the level needed to be compatible with the rest of the startup funding ecosystem. This means putting in place very specific investor protections, contractual agreements and making sure that all the paperwork is in order.

Please read the Terms of Service which is available at the footer of website. These terms provides a quick summary of the investment process and key terms in the fund raising way. We also gave some explanations about the use of a nominee structure to align the interests of the company, the crowd and future investors.

As always, we’d love to hear your feedback and thoughts on how we can make things simpler, easier and clearer for everyone involved in the process of discovering and investing in great startups. Please share your ideas with us via info@KarenCrowd.com.

What is the difference between Equity Crowdfunding and Reward based Crowdfunding?

As Crowdfunding has emerged in recent years, there has been a good deal of confusion between reward-based and equity-based models. The former is about purchasing goods, the latter a type of investment, and while it’s obvious to some that these are very different things, many others treat them as one and the same.

One area where this confusion has been particularly pronounced is in the view that reward Crowdfunding and equity Crowdfunding can work on the same structures and involve the same (lack of) interaction by the platforms after the funding is completed. The argument goes that on Kickstarter, a reward (such as a watch) gets shipped, and the platform has no further involvement – so in equity Crowdfunding a share certificate can get shipped, and that’s the end of it.

But investing is very different from buying a product, and what happens after the deal is “completed” is far more complex when there is an investment involved. A different structure – one where the platform doesn’t just disappear from the picture, but instead takes the actions necessary to ensure that both investors and entrepreneurs benefit from the deal – is necessary. That, in a nutshell, is what the KarenCrowd nominee structure is all about.