What is 40billion.com?

40billion.com is the friends-and-family funding network for entrepreneurs, where members can raise capital for a business, invest money in 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 limited liability company, 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 investors - the people in their network - to contribute or loan as little as $50, 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 investors 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 invest from $50 to $10,000 each, as a contribution or loan towards starting the business. Investments can be made 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 contributions, 40billion.com collects the funds from investors (i.e., lenders and donors), and after the entrepreneur has raised at least $1,000 (per Raise), they will receive a disbursement of the amount raised (minus a service fee of 5-7%) at the end of the month in which the Raise ends. The funds can be deposited to a PayPal account, or a check can be mailed to the business.

For loans, 40billion.com makes it easy for entrepreneurs and investors to formalize a personal loan between friends or family members by customizing the loan and generating a promissory note (a.k.a., loan document or agreement) that defines the terms of the loan. The entrepreneur or investor can purchase the customized promissory note for a fee (from $2.95 to $99.95, depending on the loan amount), then print it, sign it, and decide how they would like to transfer the funds offline (e.g., via mailed check or in person).

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 success 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 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 investors - the people in your network - to contribute as little as $100 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 investors.

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 invest money?

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

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

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 invest?

The minimum Raise target is $1,000, and the maximum target is $99,000. That means you can raise 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 investor may provide as little as $50 or as much as $10,000 in a single transaction.

When will the funds be disbursed to me?

For contributions, 40billion.com collects the funds from investors (i.e., lenders and donors), and after the entrepreneur has raised at least $1,000 (per Raise), they will receive a disbursement of the amount raised (minus a service fee of 5-7%) at the end of the month in which the Raise ends. The funds can be deposited to a PayPal account, or a check can be mailed to the business.

For loans, 40billion.com makes it easy for entrepreneurs and investors to formalize a personal loan between friends or family members by customizing the loan and generating a promissory note (a.k.a., loan document or agreement) that defines the terms of the loan. The entrepreneur or investor can purchase the customized promissory note for a fee (from $2.95 to $99.95, depending on the loan amount), then print it, sign it, and decide how they would like to transfer the funds offline (e.g., via mailed check or in person).

Will I know the identity of investors?

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

Why is the website called a BETA?

The 40billion.com website is currently a "Beta" version, which means that it’s a prototype. We continue the process of undergoing changes and improvements to the site for the convenience of our users. Please excuse us if there are a few kinks in the system, and feel free to send us any feedback, suggestions or ideas for the future of 40billion.com. We’re building more exciting features every day. Thanks for using 40billion.com!