@Tess,

Thanks for the comment -- let me provide some light on the subject so that everyone knows how our model works.

We work with a significant amount of small business owners from across the country (to the tune of 5,000-10,000/month) that are looking for some type of financing for their business. When the entrepreneur comes in the door, we consult each person to first determine what type of financing (debt vs. equity) is the most appropriate for that specific business model. Based on that initial conversation, we do a complete funding analysis to determine how “investable” or “bankable” the business is. On the debt/banking side, the initial analysis is $199 as it requires our team to both produce the report and covers the hard costs to pull both personal and business credit reports. On the equity side, the initial analysis is only $99 because we are paying our due diligence team to review your business plan, financial model, and investor presentation (this was the $99 that you refer to in your comments).

Based on that analysis, that really determines the next step. In the case where the business is “bankable,” we can then take them through our “Path to Financing” program and put him/her in touch with the bank that fits your business the best (each bank has different lending products that they push – which means that it’s not just about going to your local bank to get a loan). In the case where the business is “investable,” we look to get that business owner in front of as many investors as possible (through our Speedpitching & CrowdPitching events, website, email intros, etc.).

In some cases, the funding analysis tells us that business is not currently “bankable” or “investable.” In such cases, we offer to help them improve their current position through our personalized consulting process. Each package is customized to that business owner to help them through the difficult process of raising capital and/or getting bank financing.

When we say that our pitching events are free – does that mean that we will turn into a non-profit and remove all of our fees? Of course not – we would quickly be out of business. But, for those that want to participate in our CrowdPitch events, they can apply and participate (without going through any of our other process) without paying a dime.

While our model may not be perfect (who’s is?), we sincerely care about each entrepreneur and are doing all that we can to help them through the world of small business funding. In fact, over the past 10 days alone (since 9/18/2009), we’ve helped around 43 businesses obtain over $367,500 in small business financing (and those are just the ones that we know about – there are countless other deals that happen on a regular basis that don’t get reported). As you can tell, we are making a significant impact on the world of entrepreneurship/small business -- especially in one of the worst economies in years!

I hope that this adds some well-needed light to the subject. If anyone has any specific questions or comments or would like to find out more details, feel free to contact me at bblake “at” fundinguniverse.com.

Thanks,

Brock Blake
CEO
FundingUniverse

We are stoked to put our hat in the ring and show our support to entrepreneurship! We are especially grateful to the partners & sponsors that help to make it happen.

To be honest, the fees were never there to make money (it's not like you're going to get rich off of 5 companies paying $125 to pitch), they were there for 2 reasons:

1) to make sure that the entrepreneur has skin in the game and values the opportunity to pitch (so they come as prepared as possible). It seems that people don't place as much value on things that are free...

and 2) to make sure that the presenter shows up. I remember when we hosted a pitching event on behalf of the Dixie Angels and the Vegas Valley Angels. One of the local community development agencies "sponsored" a few companies so that they didn't have to pay a pitching fee. We had about 30 investors in the room ready to hear 10 presentations and 2 of 3 "sponsored" presenters didn't show up bc they had other "pressing" items. That's a hard pill to swallow after getting so many legit investors in the room. Up to that point and ever since, we have never had a "paying presenter" not show up.

Anyway... bottom line is that we are going back to making the CrowdPitch events free and are pretty stoked about it. Thanks to Brad & David for taking the lead!

Brock Blake
CEO
FundingUniverse

Yeah... that was crazy that Kerpoof didn't win the "best of show." It's goes to show how important a strong pitch can be. Obviously, Kerpoof had a cool company, but I didn't think that their presentation came off as well as it could.