An entrepreneur pitches his idea to investors and anything he says could make or break the deal. Ever heard of Dragon’s Den, the TV series? The experience can be nerve-wracking.
Enter crowdfunding – where the public can support an entrepreneur’s idea and get a reward in return. Kickstarter, Indiegogo, and other platforms have emerged on the web and has tremendously grown.
Taking a step further, equity crowdfunding has been introduced in some countries to give investors a chance to support a startup and own a piece of it as shareholders. It can be a huge risk as you are relying on the company’s ability to grow it to its full potential. Experts say 8 out of 10 businesses fail and that’s not encouraging to let go of your hard-earned money and not getting the return you were hoping for.
Despite the failure rate, startups and investors are still pushing forward. In this case, Rippr, a crowd loyalty startup and an Icehouse resident, is taking the plunge. It will be the first New Zealand startup that will raise public funds via Snowball Effect, an equity crowdfunding platform.
The platform is the first crowd loyalty model in the world. “It is based on the demand side, by bringing customers together and channeling their demand. It enables the connection between retailers and their customers to create win-win outcomes.” – Rippr
Rippr started with $100,000 of seed funding to develop the beta version. It was tested with 50 retailers in Auckland, New Zealand and their feedback has been positive.
It provides rewards that consumers actually want.
Rippr enhances the shopping experience for consumers.
Creates intimacy between retailers and consumers.
I’ve had the privilege to see it in action a few months back. A retailer would benefit, not only in increased revenue, but having a good retention and referral rate. The customer will be rewarded with “money” credits and not points, that can be ambiguous and probably can’t be claimed at all.
Currently, they have 10 retailers and have 3,500 active users participating in Rippr Crowds (a term used to get bigger rewards with a retailer). It is only going to grow from this point.
They will be launching very soon and I recommend signing up and give it a try. If you’re interested in investing, head on to their subscription page to get updates on the campaign.