http://betabeat.com Just another WordPress.com site Sun, 19 May 2013 04:58:29 +0000 hourly 1 http://wordpress.com/ http://s2.wp.com/i/buttonw-com.png http://betabeat.com http://betabeat.com/2012/06/everything-you-want-to-know-about-the-spring-2012-class-of-techstars-for-demo-day-slideshow/smallknot/#comments Wed, 13 Jun 2012 17:37:24 -0400 http://betabeat.com/2012/06/everything-you-want-to-know-about-the-spring-2012-class-of-techstars-for-demo-day-slideshow/smallknot/ http://nyobetabeat.files.wordpress.com/2012/06/smallknot.jpg New Yorkers can thank SmallKnot for the comfy new tables and chairs coming to Egg in Williamsburg or the shady awning slated for Kos Kaffe in Park Slope. SmallKnot is a platform that lets locals invest in their neighborhood small business. It’s not a concept limited to gentrifying Brooklyn, land of the artisinal everything, of course; SmallKnot recently opened in Greenville, South Carolina as well. While Kickstarter focuses on the creatives, SmallKnot (like its competitor Lucky Ant) lets loyal customers help out their local business, which might otherwise have to rely on high-interest credit cards or merchant cash advances. Businesses can post projects related to capital improvements that will spur growth and they get repaid in kind, with goods, services, discounts and perks. The seafood company Bon Chovie, for example, is offering donors things like a full day of fishing or fly fishing lessons. Over just a few months, SmallKnot has raised more than $30,000 from nearly 300 local investors, with requests from around the country.



SmallKnot initially launched as a lending platform, but cofounder Ben Rossen said the company switched gears after hearing from users that cash repayments weren’t a big motivation for investing. Mr. Rossen said it also opens SmallKnot up to a bigger base of businesses. “The reality is that many of these aren't particularly well-suited for business loans -- but they still have a passionate, engaged base that would support them in exchange for real value,” said Mr. Rossen. “Switching to in-kind returns allows us to work with many more of those than would be possible if we needed to rate their ability to repay.” Pure financial transactions are still a long-term goal.

]]> New Yorkers can thank SmallKnot for the comfy new tables and chairs coming to Egg in Williamsburg or the shady awning slated for Kos Kaffe in Park Slope. SmallKnot is a platform that lets locals invest in their neighborhood small business. It’s not a concept limited to gentrifying Brooklyn, land of the artisinal everything, of course; SmallKnot recently opened in Greenville, South Carolina as well. While Kickstarter focuses on the creatives, SmallKnot (like its competitor Lucky Ant) lets loyal customers help out their local business, which might otherwise have to rely on high-interest credit cards or merchant cash advances. Businesses can post projects related to capital improvements that will spur growth and they get repaid in kind, with goods, services, discounts and perks. The seafood company Bon Chovie, for example, is offering donors things like a full day of fishing or fly fishing lessons. Over just a few months, SmallKnot has raised more than $30,000 from nearly 300 local investors, with requests from around the country.



SmallKnot initially launched as a lending platform, but cofounder Ben Rossen said the company switched gears after hearing from users that cash repayments weren’t a big motivation for investing. Mr. Rossen said it also opens SmallKnot up to a bigger base of businesses. “The reality is that many of these aren't particularly well-suited for business loans -- but they still have a passionate, engaged base that would support them in exchange for real value,” said Mr. Rossen. “Switching to in-kind returns allows us to work with many more of those than would be possible if we needed to rate their ability to repay.” Pure financial transactions are still a long-term goal.

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