By Viva Sarah Press
For Yaron Shenhav, CEO of SolCold, an Israeli startup that developed groundbreaking technology that cools buildings without electricity, it was clear early on that he would raise funds for the company via both venture capital and crowdfunding routes.
After launching an online equity crowdfunding campaign on the Exit Valley platform earlier this year, investors from Singapore, South Africa, the United States and Israel started pouring in to back SolCold’s patent-protected light-filtering paint coating which uses the sun’s heat to cool down buildings.
Shenhav is one of a growing number of entrepreneurs to jump on the trend of mixing fundraising options. He was looking to raise some $2 million in total.
He explains that his company will not have a product for at least another two years, and as such, could not crowdfund with the likes of Kickstarter or Indiegogo. Instead, SolCold has chosen the equity crowdfunding route and is offering “investment in return for company shares.”
So far, the campaign has generated over $330,000 from 26 investors for SolCold.
The global crowdfunding phenomenon really took off in 2008. It began as a reward-based platform for small businesses and independent creators and tended to cull small investments.
In 2012, equity crowdfunding changed the ballgame. Whereas previously only venture capitalists, business angels, and wealthy people could invest in new companies or startups, equity crowdfunding gave more people interested in investing an opportunity they didn’t have before.