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Fund Your Startup with Prosper

Fund Your Startup with Prosper

I was listening to Startup Nation’s podcast yesterday, and they featured Prosper, a website that’s the “eBay for peer-to-peer funding.” The idea seemed interesting, especially to someone forming a startup.

The basic premise is that you can borrow money from a group of peers instead of through a bank. The peers are all investing, and then bidding each other down to the lowest agreed-upon percentage base. (Check out their site for a better explanation). So, in the end, you could have a need for $5000, and maybe 50 people will offer up $100 each, with a return rate of 7% or some such.

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The benefit to borrowers is that the rate is competitive to banks, but the level of acceptible risk is determined by the people loaning money, and not some big formula. The benefit to lenders is that you feel good giving to specific projects (borrowers have to “pitch” their ideas), and have a strong sense of sharing the risk of loaning with fellow investors. Think of it as being micro-investors.

But there’s more to this idea for life hackers to consider.

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Investing in Each Other– Are you a developer trying to launch a startup out of your bedroom? Maybe you’re at the point you need a few servers instead of trying to simulate a million users on a laptop. Prosper does the whole social networking thing to a neat end. You can join GROUPS of investors, so that there’s an added “peer effect” for the borrowers to want to give the money back. If you’re all in the “Firefox Developer Network” (I made that up), you as a borrower might feel worse about not paying back a loan given to you by your peers in the same community.

Borrowing to Start Up– You as a borrower can get some money from peers, build your infrastructure, make some money (because your business model has a way to make revenue, right?), and then pay that money back into a community of like-minded investors. When you’re done and making money, maybe you will choose to invest back into the community that helped you.

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Because you can sign up to offer as little or as much of your own money as you’d like, you know the full level of your risk as an investor. Because borrowers must be approved by their peers, it’s a better sense of connectivity between the borrower and the community who gives the money out.

I’m saying that the beauty of this system is that it’s money towards specific projects with a lot of thinking and intent behind both parties, and that strikes me as a way to negotiate that’s more centered in the people involved. The “hack,” if there is one, is that this network might prove easier to use than a traditional funding source, and might return better rewards to those involved.

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Prosper — [via Startup Nation]

–Chris Brogan writes about self-improvement at [chrisbrogan.com]. He just launched the New Media School project in beta. Check it out and give some thoughts and feedback.

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Last Updated on March 29, 2021

Life Insurance: A Secure Way To Protect Your Future.

Life Insurance: A Secure Way To Protect Your Future.

Life is a journey full of ups and downs. No one can actually predict what might happen the next moment; there are times where the happiest moments do not even take a second to turn into the gravest. Planning for your future can help you face such unwelcomed but irrepressible situations with much ease. We all want to make every memorable event of our life more special and to cherish all those moments happily and worry less, you must financially plan your future. But no one has control over life and death. Who would wish to see his family suffer in his absence? Insurance hands over the financial jeopardy of life’s happenings to an insurance company.

Importance of getting a life insurance

No one has control over life and death. Nobody would like to see their family suffering in an absence, and that’s why many people recommend life insurance. A life insurance plan is one of the best ways to secure the future of your family, even against those financial troubles after an untimely demise. These plans are safe and credible, and you could trust them for your family’s better future.

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On the other hand, a life insurance policy is a contract between a company (insurance provider) and policyholder in which the insurance provider ensures to pay a certain amount of money to the nominated beneficiary in case of the policyholder’s death during the term of the agreement. There are different types of insurance plans, and it is important for you to know the benefits of those plans such as a funeral, medical or some life expenses provided they are mentioned in the agreement.

Choosing the right insurance plan

If you’re about to select an insurance plan, you should consider some important factors:

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  • The time at which you start investing in a program and the number of family members you want to get insured. Obviously, a married man with two children has different needs compared to a single one. The number of persons who are dependent on an individual also varies from person to person.
  • The next thing you need to consider is you and your family needs. What are your child’s dream, your retirement plans, for how long would your dependents need financial support, any personal injury, etc. And do not forget those events or situations that will surely demand a huge sum of money.
  • The next thing one must consider is your current income. You should preferably choose a plan which you can afford.

Now you must be having a pretty clear idea of how to choose the best plan for you. Further, you should also compare various plans offered by different companies and numerous sites available online that help will you to compare them.

Differences between life insurance plans

Here’s a short brief of some plan categories you can choose according to your needs:

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  • Term Insurance Plan – You have to pay once, and your nominee gets the paid money under your misfortune demise. It ensures a person for a fixed time. If you survive the policy period, you do not get your premiums back.
  • Whole Life Policy – This plan continues for your lifetime. Under this, the policyholder has to pay regular premiums, until their death.
  • Endowment Policy –  In case the individual dies during the tenure, the beneficiary gets the amount assured. If the person survives the policy tenure, they gets back the premiums paid with other investment returns along with several other benefits.
  • Money Back Policy – In this a portion of the money invested is returned to the investor at regular intervals. If you survive the insurance term you get the entire amount back; else the beneficiary receives the entire sum assured.
  • ULIPs – These are the life insurance plans that offer you future security plus wealth creation options.

Many people do not opt for whole life policy and endowment policy because of the high amount of money you need to pay, while others may prefer to opt for these if they have a high life expectancy. Surely you will find the best one for you.

So what are you waiting for? Plan for your future and live a happier and carefree life today.

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Featured photo credit: aryehsampson.com via aryehsampson.com

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