Kickfurther! A New Stream of Investing that Supports Small Businesses

kickfurther logo zeona

So we’ve all heard of Kickstarter right? If you’ve been living under a rock, their website describes them as: “Kickstarter is a funding platform for creative projects. Everything from films, games, and music to art, design, and technology. Kickstarter is full of ambitious, innovative, and imaginative ideas that are brought to life through the direct support of others.

Everything on Kickstarter must be a project with a clear goal, like making an album, a book, or a work of art. A project will eventually be completed, and something will be produced by it.”

So that’s cool, donating money to make someone’s dream come true. Websites like Kickstarter or GoFundMe are my favorite way of giving back, because I actually understand the final product or use case rather than donating to a charity that I may not trust to use the funds appropriately. 

But what if you could go further? Or Kick...further! (cheesy? I know right!) Well now you can. Now you can not only support these small businesses and creative ideas, you can also invest in them and make a pretty return in the process. 

A little about Kickfurther: “Kickfurther helps companies that sell physical goods raise funds to pay for production OR leverage the inventory costs for working capital. They do deals for $20k to $500k+ with custom timelines and payment schedules for each client.” 

With the stock market beginning to take dives, many people are looking for some fun alternatives to put their cash. I am here to share those options. =)

 

*Of course, I am still making my regular contributions to my Vanguard Index funds and believe you should too and yet here’s a nice way to make some side cash while helping out the little guy. * 

 

Today, I have David Koifman, VP of Sales & Business Development from Kickfurther here to answer my questions about the platform. 

 

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ZM: Thank you David for taking the time to do this Interview with me today. How did you get involved with Kickfurther? 

DK: Thanks for inviting me Zeona, pleasure to connect! I got involved in the financial technology startup world about 6 years ago with another company here in Boulder. After seeing that company grow from 6 to 60 employees in 4 years, I was ready to do it all over again:) An intro to our CEO came through a former colleague. Once I understood how Kickfurther is solving the funding need for growing product businesses, I couldn’t pass it up!

 

ZM: Where did the idea come about? 

DK: The idea came as a direct result of our CEO, Sean, experiencing the pain that many product businesses experience when they grow quickly: the more product they sell, the more inventory they then need to buy! It’s a great problem to have, but can be devastating if you are turning down growth opportunities because you can’t afford your inventory. Sean couldn’t fund his production effectively, and created Kickfurther to do so by eliminating the banks and customizing the deal structure to address the needs of the business that needs the funding.

 

ZM: Adam, our mutual friend says you work directly with the company’s who will be placing investable offers, what is the vetting process like? 

DK: We look at a number of elements that pertain to each business’s supply chain and sales history. We aim to reduce the risk in each deal by confirming that the business has a well tested supply chain and strong channels to sell the inventory that is funded. We also look at a number of more traditional risk elements like credit score, tax returns, and bank statements.

{ If you have a Product Business and are thinking of applying for Kichfurther please note these requirements: the company must produce non-perishable physical goods, have at least $150k in sales in the last 12 months, and a minimum 600 personal credit score. -- If you would like me to make an intro for you and your business email me! }

 

ZM: If someone reading this had a product they would like funding for, would they have to have the whole promotion mapped out, or do you help them create the offering? What is the application process like? 

DK: We walk each client through the process step by step. We understand their funding objectives and then create a customized deal structure in order to ensure they have the funds they need to pay for their inventory and then the payback timeline corresponds with when they project to actually sell the goods that we are funding.

 

ZM: Back to the Investor point of view, why do you think this is a good place for people to invest? 

DK: The stock market is pretty volatile right now, so I think it’s good practice to spread out exposure. Kickfurther is a place where an individual can back companies they want to support and earn profits in that process. You basically “play Shark Tank” from your laptop. However, rather than buying equity which takes years to materialize, our average deal has a full payout in under 6 months

 

ZM: What sort of returns are your users seeing? 

DK: Our average IRR is over 18% annualized and average ROI is over 7% annualized. Choose wisely and your own returns could be significantly higher! Icing on the cake is that you can buy in with a credit card. That means that you earn points and get an extra month of float while earning profits.

 

ZM: Yes I saw that I could invest with a CC on your website! While this can be dangerous for those investing money they don’t have (never recommended), for those of us who like Credit Card hacking, it’s an amazing perk! Are there any additional fees for using a CC? 

DK: Regardless of how you participate in a deal, Kickfurther charges a 1.5% withdrawal fee when you pull funds into your personal bank account (so no additional CC fees). You can continue to back deals by recycling funds from your KF account without being subject to any fees, so you only pay when you pull out.

 

ZM: Can you walk us through an investment? What sort of information the potential investor would receive, how long they have to decide, what steps they would need to take? 

DK: The best place to start is our Co-Ops page, where you can see every deal we have ever funded. We usually post 2-5 deals per week, ranging from $20-$500k. Minimum buy-in is $20 for some deals, and as high as $1000 for some others, it really depends on the products we are funding. Some of our more established client’s deals fund in minutes, so it’s good to be subscribed to the new deal notifications and log in when you see one. They always go live at 3pm MST (5PM EST). My advice is to spread out your exposure and participate in multiple deals rather than going all-in on one or two.

 

ZM: I believe you are a relatively young company, where do you see you guys going from here? 

DK: We have been around for 5 years, so while there is a lot of growth in our future, we have ironed out a very strong vetting process and have a solid performance history. Our vision is to make funding more accessible to product businesses that have demonstrated their ability to grow, create earnings opportunities for individuals otherwise less involved in the world of investing, and to disrupt traditional banks and outdated inventory financing solutions. 

 

ZM: Anything else you would like to add / mention? 

DK: If anyone wants to speak with me directly or someone on my team, please contact Zeona and she will make the direct connection. 

 

Thank you so much David for sharing this Investment platform with us and working hard to find us incredible companies in invest in. I’ve already created my account and can’t wait to try it out!

 

Looking to get a little bonus cash to get started? Join Kickfurther here through my referral link and we’ll both earn $10 to invest. Yay!

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