StartUs Presents: Symbid

Describe Symbid in 50 words or less.

Symbid is The Funding Network™, where companies get funded and grow. We guide entrepreneurs to the right type of funding, alternative and/or traditional, while enabling investors to invest with full transparency on potential risks and returns. Symbid simplifies the way small businesses get funded with online investing, monitoring and data tools.

Why did you decide to pursue your own dreams rather than someone else’s?

I became a founder because nobody else did. Myself and my two co-founders were studying Entrepreneurship during the 2008 economic crisis. After graduation, we watched as all our classmates gave up on their business ideas and joined the corporate world – while complaining about the lack of bank financing. We knew their ideas and saw genuine potential, but clearly the banks didn’t. The traditional funding process of going to your bank manager for a loan wasn’t fit for purpose in our fast-moving digital age of unconventional, innovative business models. Symbid was founded in 2011 as one of the world’s first equity crowdfunding platforms to democratise small business financing for entrepreneurs and investors, taking the power out of the hands of the bank manager and their credit sheets. The launch of The Funding Network™ earlier this year, when Symbid began offering several types of traditional funding next to crowdfunding, was a breakthrough moment in our mission to disrupt the financial world in favour of startups and small businesses.

7 years from now: How did your startup change the world?

As a founder I envisage Symbid revolutionising the way entrepreneurs access capital, becoming a data-driven stock market for startups and small businesses. Linked to this, I see Symbid contributing to the democratisation of finance. Our technologies are lowering the barriers to entry and levelling the playing field between private (retail) and institutional investors. We will make high-level, top-of-market investment services more accessible to all kinds of customers, not just investment banks and high-net-worth individuals. Ultimately I hope Symbid can help to raise the financial literacy of the general public by opening up the world of investing to all, while simultaneously making it as simple and efficient as possible for entrepreneurs to get funded and get started.

In what ways do you measure your success and how do you make sure you don’t lose track?

Our main driver at Symbid are the entrepreneurs that come to us for funding. If they’re happy, we’re happy. Of course, our funding volumes are a key indicator of how we’re doing in a business sense – $192 million since launching in March – but as a team of entrepreneurs ourselves it’s what happens after funding that really matters. Seeing businesses we’ve funded grow and prosper, hire new staff, sign partnerships, launch innovative products and disrupt their industries is what really makes us feel like we’re doing something worthwhile, and doing it well. If our community of 32,000 private investors can share in this growth, as many have, even better. Positive feedback from our users is what we thrive on, and we believe in ongoing testing and optimisation to ensure our funding process gives entrepreneurs and investors the highest chance of mutual success. In this sense we’re big fans of the lean startup model.

Describe your typical working day from coming to the office to leaving it.

As a team we kick the day off early with a roundtable discussion about how our business is doing – every day. We love this because it forces everyone to wake up and acknowledge the existence of their colleagues! After that, who knows what happens. Every day is different, to some extent, except for the coffee. We’re a high-growth company and that requires a certain degree of flexibility and responsiveness. As a co-founder I do have external commitments, but mostly I prefer to keep my feet on the ground and in the office with the rest of the team. Like every entrepreneur my typical working day lasts twenty-four hours.

Already pivoted? Did customers use the investment crowdfunding platform like you imagined it in the beginning?

Our platform was built to match entrepreneurs and startups with early-stage investors, and that’s what it did for four years. Investment crowdfunding is experiencing exponential growth year on year and our platform grew with the industry. Our pivot towards a complete funding offering, adding traditional financing options such as bank loans and venture capital, was in line with our vision of professionalising “alternative” finance and simplifying the way small businesses get funded. Crowdfunding has huge potential but will never be suitable for all. Now we aim to guide entrepreneurs to the right type of funding for their business in the most efficient way possible, whether that’s investment crowdfunding or a bank loan, or both.

Bootstrapped or financed: What fuels your startup now and what will in the future?

We got through our bootstrapping phase a few years ago, thankfully. As a publicly listed company in the United States we’re financed on the open market. Our business is about building technology that enables a more transparent way of doing business for investors and entrepreneurs alike. The ultimate goal is to bring the financial insight and liquidity of the stock market to smaller, private companies. For us it was a natural step to go public. After several quarters of research and development we’re now bringing our diversified product portfolio to market and aiming towards a break-even point.

With ferocious competition and a booming trend to build new companies: How do you make sure you don’t get lost in the shuffle?

Our lack of direct competitors means we’re able to push ahead and focus on our business, rather than looking over our shoulder. Being a first mover does have its disadvantages, though, as nobody has been there before to make the mistakes. Our task is to convince the market that our unique business model is the future of small business financing. The key battle among online funding platforms, including investment crowdfunding platforms, is to attract the entrepreneurs as the investors will inevitably follow. We do this by listening to our users and constantly improving and adding to our service offering.

Put simply, The Funding Network™ is our attempt at simplifying the entire funding process for all types of finance. Investment (equity and loan) crowdfunding is still a key part of our offering, but now we also connect entrepreneurs to over 50 professional investors. We have moved on from crowdfunding to where we see the market heading in five-to-ten years time as bank financing continues to stagnate and investment moves online.

I believe our commitment to transparency and professionalism also differentiates us from the rest of the online finance market. Independent financial advisors guide entrepreneurs to the right funding for their business, while our monitoring tool gives investors real insights into the performance of businesses. In fact, we just became one of the first platforms to use an independent, professional risk scoring agency to set all our financing terms.

What do you look for in team members?

First and foremost, an entrepreneurial attitude. I want my team to be responsive, hungry and willing to learn. The right qualifications and experience are always a plus but far from essential. It’s the mentality of the individual that really interests me, and whether or not they can be their own motivation to succeed. Would they think twice about staying in the office late to fix an issue or meet a deadline? The moment you think you’re doing OK is the moment you begin to stagnate.

Why would a talent join your team?

To revolutionise finance, democratise investing and generally make the world a happier place for entrepreneurs and small business owners. Oh, and I guess we’re a young, international team that likes to work hard and play hard(er). Listening to new team members, one of the things that attracts them most about Symbid is the opportunity for self-improvement and learning. We try to grow people, as well as a business.

What was your most memorable moment so far?

The launch of The Funding Network™ on a 400 year-old colonial ship in the middle of Amsterdam on a cold, March morning is an experience I’ll never forget. Mainly because I was freezing to death while having to force a smile for the cameras. But then watching the responses pour in and hearing our message spread across national media made it (almost) worthwhile. Of course, the hard work was only just beginning, but seeing our funding volume hit $13 million seven days later was another champagne moment.