Alternative way to finance Entrepreneurs

who is Melcion?

7 partners3 in the US, 4 in Europe

over 150 clients: there are entrepreneurs running 15M€ average revenuesin any industryin multiple countries: France, Spain, Switzerland, Belgium, USA (East and West coast), Singapore, HK, Philippine , mainland Chinaany size from 0€ revenue to public 250M€ revenues

what are Melcion partners doing?

helping Entrepreneurs by anywaysmeeting their client once a monthbeing available at any timefinding new ideashaving a different point of viewenabling the entrepreneur to take the helicopter view

we are payed on a yearly basis by a fee at the entrepreneur convenience

what is an Entrepreneur?

startup financing

the VC myth:business plan:1year of work for free50k of costpersonal expenses

raising capital:VC sifting 1 deal out of a 100 projects receivedif you visit 50 VCthat 50% chances

Executing:1 deal out of 10so that 5% compounded chances

Inc 500

a yearly selection of 500 US private fast growing companiesgrowth measured on a 3y periodfirst year with a 750k$ miniinc.comfor 28 years now, that's about 15.000

the demographicsgrowth : 8000% on 3yaverage funding: 75k$VC funded : 2 to 4%BA funded : 2%

reality check on VC

research from Pr O. Gottschalg and L. Phalippouover 25y, private equity fund is 3 point under S&P performanceso it can't be 1 deal out of 10 succedingit has to be 1 out 30 to 50

so chances for entrepreneurs raising equity with VC are <1%

startup financing

the VC myth reality:business plan:1year of work for free50k of costpersonal expenses

raising capital:VC sifting 1 deal out of a 100 projects receivedif you visit 50 VCthat 50% chances

Executing:1 deal out of 10 50so that 5% 1% compounded chances

what solutions?

sales

targetinghunt for the wounded elephant?not everyone is your ideal first client

pricingin marketing, price is defined as the highest your customer can and will afford

business model

less consumption

faster access to client solution

deal with suppliers/distributors

when it is not enough?

Entrepreneur CommonsEC financing

what is EC?

need to serve all the Entrepreneursbut we are only 7 partnersand there is up to 5M entrepreneurs in the US

Peer support is the answer

EC is a peer to peer support group organised by local chapter of 10 people.There is 17 chapters so farthey meet once a month2 hours meeting:each member is telling the others about one nice story of the month and one today's problem

next step for EC

peer to peer financing:

during the 30s, emergence of mutual bank is an entrepreneur initiativebut these initiatives turned into banks

now we have the opportunity to have a mix of mutual banks with web 2.0

what is the idea?

mutual guarantee fund is first step

entrepreneurs are feeding the fundentrepreneurs are deciding what project is eligible for a guarantee(need for a random selection due to a lack of resources)

then the selected project can have a bank loan with that guaranteebanks can using it as a way to have an automatic process

a real lending fund is next

how can you help?

initiating new EC chaptersraising money for the mutual guarantee fundhttp://www.indiegogo.com/Guarantee-Fund-for-Entrepreneur-Commons-2