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A Message from our Cofounder, Nam Vu, about our Wefunder Campaign

Those who know me closely know that I have a deep seated desire to help people that came out of my search for the meaning in life during my contemplative days in high school. I’ve always looked for ways to leave this world better than I found it and have been involved in various service activities. After a while, adulthood set in and service took a back seat to creating a comfortable life with the goal of one day having enough comfort to be able to dedicate service as a full time endeavor.

Then came Impact Hub Honolulu. Being a part of Impact Hub Honolulu has provided me with the opportunity to be of service and at the same time build a sustainable and thriving business. It is that dream that I think many of us have but didn’t think could be possible. At Impact Hub we can do well while doing good. It is possible.

We want to spread this message far and wide and help everyone do well while doing good. We recognize that it is much more difficult to think about and act on your intentions to do good in the world when you are struggling with rent and bills. Our approach is to help everyone to do well so that we can all do good and change the world.

By providing a place where our members can focus on their work and leaving the facilities needs to us, by providing mentorship and learning opportunities to grow their practice, by providing opportunities to join us in doing good, we hope to enable our members to make their own social impact; to democratize the work of social impact and put in in the hands of everyone to do their small share.

To help us spread this message, our plan is to build a network of 11 Impact Hubs across Hawaii to create a network of social entrepreneurs in Hawaii who join the over 15,000 social entrepreneurs that are already in the Impact Hub network, the largest network of social entrepreneurs in the world.

Today we publicly launch our Wefunder campaign to raise funds for our expansion plans. This is an investment NOT a donation. You will receive your money back through a revenue share plus a return. There is an early bird special for the first $125,000 invested.

We chose Wefunder because it aligns with our community building focus and enables our community to invest in our success was well as benefit from our success.

Please take a look and share widely. Together we can make change.

 

Investment Crowdfunding: Democratizing Investment for the 99%

Crowdfunding is a type of financial support that allows curious or excited individuals to pledge money to companies, people, or products that spark interest. And that interest is BROAD: the world of crowdfunding is incredibly diverse and has garnered some very interesting spinoffs, like equity and debt crowdfunding.

Crowdfunding became really popular about a decade ago: Indiegogo launched in 2007 and the other large platform, Kickstarter, launched in 2009. In the decade or so since, there has been a constant flow of campaigns and projects supporting projects both big and small. Some of the most successful campaigns have brought in hundreds millions of dollars, everything from cryptocurrencies, consumer technology, food, smart home items, and games.

Indiegogo and Kickstarter are the two most popular examples of rewards-based crowdfunding. In this type of crowdfunding, consumers will give funds in exchange for a reward, usually the product or service that’s being funding. This allows savvy consumers to give direct support to companies and products that have great promise, and ensures that they are early adopters of cool technology.

In 2017, Impact Hub HNL launched its first crowdfunding campaign on Indiegogo to raise scholarship funds for local groups and organizations who needed financial support. In the campaign the community contributed over $10,000, and we able to provide scholarships for 35 memberships, events, and programs, proving that crowdfunding can be a powerful tool for increasing equity.


Another type of fundraising is donation-based crowdfunding, which doesn’t ask for a return product or service. This includes sites like GoFundMe and Crowdrise, which often people use to raise money for themselves and their friends in need.

One of the biggest changes to the crowdfunding world came in 2015 with new rules that updated the Obama-era JOBS Act. This new ruling created exceptions to US securities and investment laws to allow anyone – not just accredited investors (ie: those with $1million net worth) – to become investors: thus, the creation of equity crowdfunding.

Equity crowdfunding allows ‘investors’ to give money to a company in exchange for shares, even if it’s just a small percentage. This created a huge shift in the investment world, and continues to democratize investment for the other 99%. Some examples of equity crowdfunding sites include SeedInvest, WeFunder, CircleUp, and StartEngine.

Another shift was the creation of Debt Crowdfunding (also known as peer-to-peer lending, or P2P lending). This model allows non-accredited investors to support individuals or businesses with direct financing. Examples of these sites include Prosper and LendingClub. These sites offer people a funding route that is not tied to banks, and gives investors an opportunity to support people and projects and earn money in return for their investment.

One of the most exciting things about both equity and debt crowdfunding is that they generate real results for both the investor and company. Debt crowdfunding can bring in returns of about 7%, which is on par with traditional investments. Equity crowdfunding can get startups off the ground with significant capital without the hassle of investors taking over the day-to-day of the company, it can be a great way to build a base of supporters, and offers a range of other benefits.

Of course, with any venture of this sort, it’s good to ensure that the company or product you are investing in (or supporting) has a good track record, is poised for successful delivery of product, or has good projections for return on investment. Any equity crowdfunding platform requires due diligence for the companies to be hosted on site, but it’s always good to do your own research before using your money. WeFunder explains that, “Startups either win big or go bankrupt. You could lose all your money. Consider them more like socially-good lottery tickets.”

Beyond just getting a cool, early-adopter product or receiving a good return on investment, crowdfunding is really a way to vote with your dollars for the world that you wish you see. This democratization of investment is key to building a world beyond traditional investment structures – most of which exclude women, people of color, lower income and otherwise marginal investors.

Voting with your dollars, whether for a product, service, or investment, allows you to expand your social impact and support businesses that align with your core values, which is has the potential for huge social, financial, and economic impact – something we can definitely support!