SMASH FACTORY BET ON THE NEXT BIG IDEA Curated Business Inventions For The Savvy Angel Investor.
This all started off like all good ideas around a table full of beers, taking notes on bar napkins.
We had been discussing some of the product pitches that we’d recently seen.
Like always, some good, some bad. And we got to thinking that wouldn’t it be great If we could do it like Shark Tank…
Have you ever watched Shark Tank and wished that you could play?
You see the potential in a product or idea and know that with your knowledge, connections & capital you could really help make it a phenomenal success?
But right now, that’s just not possible for most Angel investors.
Shows like Shark Tank and The Profit already have their investors.
Traditional Angel investing is limited by regional access to deals.
But still… wouldn’t it be great, if there was a way to play in this type of investment field?
Angel and Private Equity investors make their money with deal flow.
They need to invest in a lot of deals to land one that succeeds.
Investors, good investors like to buy into products and market niches that they know and can help with making a success.
I read that in 2013 $20.1 Billion was invested by Angel investors.
But it is estimated that there was another $30 Billion left on the table due to lack of investment choices.
The pool of investment opportunities is limited by so many things… Most private investment is made in a small geographic area.
And most product inventors and entrepreneurs don’t know the process and are ill-prepared for a professional pitch.
The traditional investment system – brokers, dealers and promoters – are slow to change and behind in technology.
Angel investors typically find opportunities the same way they have for several decades.
Angel groups or investor networks, Associations, investment brokers, bankers and accountants.
It’s mostly word of mouth, in your local area and closed to a small network of people.
This limits the Angel investor’s access to a multitude of deals.
At the same time there are some really interesting events happening in the Angel investment space.
The JOBs act passed congress and goes into effect, uhm, sometime maybe this year.
This allows for more investors to participate in the small business sector.
Reality TV shows such as Shark Tank, West Texas Investor’s Club and Made In America are just a few examples of a growing interest and changes happening in early stage investment.
I call it “Investainment” and it’s emerged and you know is changing the way deal pitches are developed and promoted.
However, even though there are a multitude of shows, they also have their limitations.
There are a limited amount of investors and entrepreneurs that can participate in this channel.
Essentially, You’re Not Allowed To Play – only spectate.
Crowd Funding has emerged and is quickly evolving.
Online platforms such as KickStarter, IndieGoGo and KickFurther have become overnight sensations.
However, they too have several limitations. Kickstarter and IndieGoGo are not funding platforms but are donation platforms.
And none of them offer a solid platform for the accredited investor.
One where relevant business questions are answered to provide a clear understanding of the business and model and one where the Angel can take an equity stake in the business.
There are a few accredited online investor platforms.
Most specialize in software, Internet or new technology startups.
None focus on products or great service ideas.
And none provide any business development, manufacturing and fulfillment support.
And… All are boring.
So that’s how I came up with Smash Factory!
Smash Factory is an online platform for Angel investors that want to “Experience” investing.
So How Does It Work?
First. You apply and receive network approval based on your ability to invest.
Then Inventors pitch their ideas in front of a panel of investment experts I call “The Board”.
The pitches are scored from 1 to 10 based on their viability in the market.
We record the pitches in full and present them on a secure Smash Factory website for Investors to watch. Investors review pitches, request more information or present a BID.
Upon BID approval, a DEAL is made according to the Terms & Conditions.
The Board’s duty is to provide targeted questions that vet the idea, the market, the business model and most importantly, the Inventor’s ability to take it to market.
How cool is that, huh!
Just like you see the panel of Sharks do on TV.
Angel’s have the opportunity to watch these recorded pitches anytime they want to online and they can ask additional questions or request more information – right there.
Once the Angel is interested in an idea, they are allowed to place a Bid.
The Bid terms can be negotiated or accepted.
Once a Deal is made, the Angel and the Inventor can continue to utilize Smash Factory.
Because initially it was going to be a curated directory of business experts for marketing, sales, manufacturing, operations, fulfillment… Everything an Inventor needs to be a success.
And I’m not talking just any vendors either.
We’ve made sure these are the best-of-the-best.
If an Inventor is not yet ready for an official Pitch, they can sign up for an Advisor to help develop their idea until it’s commercially viable.
So, what makes Smash Factory special?
- The Live vetting process by The Board
- Business support through the Advisor network
- The Giving Back platform where we micro-fund ideas that help humanity
- And it’s gonna be fun!
We’ve positioned Smash Factory as an “Investainment” brand.
One where all Angel investors can play! We want to engage & entertain the user while providing access to excellent opportunities.
Man, Angel investors by nature are competitive, smart and connected.
And the best ones I know are sorta gamblers – but they are smart gamblers.
And Smash Factory is a perfect playground for people like that.
We are preparing to launch in May of 2016. And we are looking for Advisors, Board members and Investors.
Let your audience know that if anyone has interest, please contact Rob at robo@smashfactory.com or just get ahold of you for my phone number.