In a recent article published by CTV News, it seems as if an innovative idea, the Air Umbrella, is about to be brought to life with the backing of anonymous donors. After learning about the time value of money and how a company is financed either through debt or equity in class, this Air Umbrella campaign and article intrigued me.
The prototype Air Umbrella – set to be manufactured in 2015 with enough financial support
Through the Canadian-based site, Kickstarter, a project called “the Air Umbrella” has been garnering attention from people across the nation — with some even donating (a total of $28,000 thus far) to the project to get it started. Usually, start-up companies are financed by the owner’s self-equity or through family members (aka “love money”). However, this site allows users to take that to another level by asking citizens around Canada for financial support to get the company started. As Bench Co.’s co-founder Mr. Menashy stated when he was raising money for his start-up, “raising this sum enable[s] [you] to move out of the beta phase of [y]our company and focus on product market fit before scaling up.”
KickStarter – an avenue to fund your company with another method
Instead of going through the process of scrambling for cash, asking your family, or going to the bank — which is highly unlikely to lend you money without a proven track record –this website gives users an alternative outlet to follow their dreams and pursue their interest in entrepreneurship by an alternative method known as crowd-funding.