What is 40billion.com?

40billion.com is the social funding network for entrepreneurs, where members can leverage their social networks to raise capital for a business, fund a business, or find resources to build a business. Our management team has tons of real-world finance and entrepreneurship experience. We’re concerned about the $40 billion gap in startup business funding, so we created this website and service to increase access to startup funding by allowing entrepreneurs to raise money from ordinary people they know and trust – i.e. family and friends. We are also a Delaware corporation, headquartered in Georgia. For more information, see About 40billion.com.

How does this work?

It’s easy. Our platform helps entrepreneurs raise capital for their businesses from friends, family and other individuals in their social network. First, entrepreneurs fill out their online business profile, describing themselves and providing insight into their business goals and funding needs. Then they ask potential funders - the people in their network - to give, contribute, or lend (no equity investments yet) as little as $25, or as much as $10,000, towards their target. 40billion.com simply facilitates the process, helps collect the funds (for contributions), generates a custom promissory note (for loans), and allows funders to track the entrepreneur’s progress in building their business. We handle all the details and simplify everything. For more information, see How It Works.

What are the terms and fees?

Anyone who views a Raise may offer from $25 to $10,000 each, as a contribution or loan towards the business. Funding can be provided in various increments up to the funding target, but the entrepreneur sets the funding target. 40billion.com does not facilitate equity investments or sales of stock or shares of companies.

For gifts/contributions, 40billion.com allows funds to be collected by the entrepreneur either through PayPal online payments or by mail. The funds can be deposited directly to a PayPal account designated by the entrepreneur, or checks can be mailed from funders directly to the business' address.

For loans, 40billion.com makes it easy for entrepreneurs and funders (i.e., lenders) to formalize a business loan between friends or family members by generating a custom loan document (a.k.a., promissory note or loan agreement) that defines the terms of the loan. Each borrower and lender can view their loan document, print it, sign it, and decide how they would like to transfer the funds offline (e.g., via mailed check or in-person). There is no charge for this service.

How can it work for me if I have no family and friends?

You might think that you do not know people who have the money and want to help you, but surely you do. Think of people beyond your personal family and friends: friends of family, friends of friends, relatives of friends, co-workers, neighbors, church community, or anybody that thinks highly of you and your abilities. They want you to succeed in your business, and they might help you because they think highly of you or want to be involved in something new and exciting.

It’s easy. Our platform helps you raise money and find resources for your business from friends, family and other individuals in your social network. First, you start a Raise by filling out your business profile. Then you ask potential funders - the people in your network - to contribute as little as $25 or as much as $10,000 towards your target. 40billion.com simply facilitates the process, making it quick and easy to help you collect the funds. We handle all the details and simplify the process of managing multiple funders.

40billion.com combines the power of microfunding - helping individuals raise money through multiple relatively small transactions - with social networking via the Internet.

Who is eligible to raise money?

To raise money on 40billion.com, all you need is an idea for a US-based business, whether you are an experienced entrepreneur or just starting out. You must be at least 18 years old with a valid US address.

Who is eligible to fund a Raise?

Anyone who is invited by a current member, whether an entrepreneur raising money or a funder who has provided funding. Because 40billion.com facilitates private funding networks, each funder must be invited by someone they know who is a member of a Raise. Once you’re invited, you can provide funding. You must be at least 18 years old with a valid US address.

Are you pulling a credit report when I raise money or fund a Raise?

No. We do not request your social security number, and we do not check your credit report. Your credit is none of our business (pun intended).

What are the minimum and maximum amounts of money I can raise or fund?

The minimum Raise target is $1,000, and the maximum target is $99,000. That means you can set a funding target of as little as $1,000 or as much as $99,000 for your business. This should be enough for you to get started on the first stage of your business.

Any individual funder may provide as little as $25 or as much as $10,000 in a single transaction.

When will the funds be sent to me?

For gifts/contributions, 40billion.com allows funds to be collected by the entrepreneur either through PayPal online payments or by mail. The funds can be deposited directly to a PayPal account designated by the entrepreneur, or checks can be mailed from funders directly to the business' address.

For loans, 40billion.com makes it easy for entrepreneurs and funders (i.e., lenders) to formalize a business loan between friends or family members by generating a custom loan document (a.k.a., promissory note or loan agreement) that defines the terms of the loan. Each borrower and lender can view their loan document, print it, sign it, and decide how they would like to transfer the funds offline (e.g., via mailed check or in-person). There is no charge for this service.

Will I know the identity of funders?

Yes. Because 40billion.com facilitates private funding networks, each funder must be invited by someone they know who is a member of a Raise (i.e., the entrepreneur, a funder, or someone who has been invited to fund the Raise). The entrepreneur is able to view the names and contact information of everyone who invests in the Raise.

Who are potential friends-and-family funders?

• People you know directly. You probably know hundreds of people, and each person is a potential funder. This includes parents, aunts, uncles, brothers, sisters, cousins, alumni, classmates, business associates, coworkers, church members, club members, in-laws, babysitters, accountants, attorneys, bank tellers, customers, etc.
• People in your extended network. This includes friends of relatives, friends of friends, relatives of friends, etc. You might not know these people directly, but you can be introduced by someone that you do know.

How do I ask friends & family for startup funding?

• Be confident
• Talk about your business and the opportunity in a conversational way
• Ask for business advice, initially, not for money
• Ask them to be a "silent partner" if they want to come along for the ride
• Have your elevator pitch and your business plan summary ready
• Ask them to recommend people who have experience in your industry and who can help you by joining your Board of Advisors
• Follow up with multiple phone calls, lunches/coffees, and presentations EVERYDAY

How much is raised through friends & family?

• Entrepreneurs should be able to raise up to $100,000 at the friends & family level
• Twice as much money is raised at the friends & family level (seed round) than at the angel level every year in the US - according to the Univ of Hew Hampshire - by some estimates, over $100 billion in friends and family funding

Why raise funding through friends & family?

• Get the initial money you need faster and with fewer restrictions. Use the money to get started before launch, forming your company, paying your salary for the first year, patenting your technology, developing and testing your product or service, etc.
• Get practice and experience raising money. This experience will help you later when you need to raise more money through angels, VCs, or banks.
• Get feedback and encouragement from people you know. Your friends & family will be your biggest cheerleaders and may even become your first customers!

How many friends & family do I need to contact?

• As many as possible! Every additional contact will increase your chances of success.
• On average, you can expect only 1 out of every 15-20 people will provide funding. So, if you contact 100 people, you may get 5-7 actual funders; if you contact 300 people, you may get 15-20 funders.