[Sean Cash]

I wanted to know if anyone out there was potentially interested in a system that allowed individuals to syndicate as little as $25 per deal. Would that would be interesting to all the starving reps and underwriters out there?

Forget about the resources it would take to administer it and transaction fees. If you could get into MCA deals for as little as 25 bucks a pop, would you?

[cardinalequity]

I'm sure most will even those that already syndicate more money. Is this hypothetical or is a back end in place for this already?

[fma123]

Good idea for those who want to start small and keep growing...it's a start...

[Sean Cash]

I'm sure most will even those that already syndicate more money. Is this hypothetical or is a back end in place for this already?

A little of both. Am trying to get some feedback here. :]

[ADiamond]

I wanted to know if anyone out there was potentially interested in a system that allowed individuals to syndicate as little as $25 per deal. Would that would be interesting to all the starving reps and underwriters out there?

Forget about the resources it would take to administer it and transaction fees. If you could get into MCA deals for as little as 25 bucks a pop, would you?

I would give it a shot and I know a few other people that would eat it up because of the lessened exposure, but then I ask myself - what's the sacrifice for lessened exposure? If I had an option to do it in deals that didn't tie the money up for more than 4-6 months at a clip I would do it.

[Drizzle]

Sounds like scared money, and scared money doesn't make money.

[Joseph Esparza]

Syndication has a double edge. It has held "Pay-offs" hostage in some cases, leaving the ISO stuck for months till his book of business clears [and other such similar stories prevail]. At $25 per deal, it's penny-stock with a great return.. I like the concept, and if it were wide spread - it would balance the playing field a bit.

[GMFunding]

Definitely think a market is here for this.

[Funder Mark]

What kind of returns would we be talking about, over what term? Would need more information.

[Chambo]

who would be running it and how much mgmt fee?

[channin19]

I wanted to know if anyone out there was potentially interested in a system that allowed individuals to syndicate as little as $25 per deal. Would that would be interesting to all the starving reps and underwriters out there?

Forget about the resources it would take to administer it and transaction fees. If you could get into MCA deals for as little as 25 bucks a pop, would you?

Lending Club for MCA Transactions.

How would this differ from what FundersCloud was supposed to be?
How much of an impact would the fleshing out of the JOBS Act guideline have on a market like this?

Just thinking out loud.

[J.Celifarco]

I think there could be a huge demand for something like this. Like everything else it would come down to how it is setup, the transparency of what is happening with the money and of course the return that you get on the money.

[Jared_Weitz]

Great Idea but I think it exists in many places already. Moreover, when you make a sole business out of raising money from individuals or even businesses for a return I think there are huge legalities involved. Def something I would explore with you though

[Chambo]

Jared's right, make sure you don't fall under FINRA's or SEC's investment vehicle standards.

[Sean Cash]

Lending Club for MCA Transactions.

How would this differ from what FundersCloud was supposed to be?
How much of an impact would the fleshing out of the JOBS Act guideline have on a market like this?

Just thinking out loud.

FundersCloud had a cool idea their first time but they immediately succumbed to the bigger players. Every time I would put $500 or $1,000 in a deal, I would find out later that it got cancelled because "a funder decided to fund the whole thing themselves." This happened over and over. There were questions as to who would be the real funder, who would collect, what contract it would be on etc. Nobody was sure what recourse they had and people just wanted the entire deal for themselves.

This system would be different. Think of it as like a master syndicate pool where the fund buys into a percentage of a funder's deals using its own equity. The fund then effectively sells notes to people in the industry. The pool might fully fund the deal, part of it, or none of it depending on what people think of it. It won't matter though because the fund's own equity is in regardless.

30k deal funds, 5k allocated to the syndicate fund. Fund sells member dependent notes to as little as $25 or maybe even $5 to anyone who wants in the deal. The note is solely backed by the performance of the deal. It's a note.

Of course it could be structured a little bit differently. Again I said this is part hypothetical. Lending Club has to file each note issuance with the SEC but they can sell them to regular people who don't need to be accredited investors.

There are a surprising amount of ISO/funder hybrids out there and small funders whose funding is limited by their own lack of capital. If they're doing under a million a month in funding, nobody wants to look at them. It's a catch-22. You can't raise capital unless you're funding a lot and you can't fund a lot unless you raise capital.

On the other hand, there are thousands of people in this industry who work on salaries or can't afford to put in 5k per deal. They want to be part of the market but it's out of reach for them. Even $1,000 or $500 per deal is probably too big. But you can leverage the masses by getting people in for small amounts.

How it would be managed and what the fees would be is a different conversation. What the regulatory requirements are is also another discussion. Basically I am trying to gauge how much more of the industry would like to be involved in funding, even if it's just a couple bucks here and there. Most people are not making 300k +/year. If you could choose deals to throw down for (based on limited info of course so that people don't steal deals), and do it for small dollar amounts would you?

How many underwriters, openers, and admin staff visit this site every day to learn but can't afford to be a syndicate?

[Sean Cash]

What kind of returns would we be talking about, over what term? Would need more information.

MCA returns: 1.15 to 1.49

They would be MCA deals. Each deal would have its own terms.

[CASHCASH]

Interesting concept!

[Zach]

I got 5 on it!

[GRP Funding]

I got 5 on it!

$25 is the minimum

[Zach]

$25 is the minimum

Ah.... too rich for my blood!!!

On a serious note, this sounds like a great way to raise capital. Turn an MCA shop into a p2p investment mechanism. Surprised people haven't done this on a large scale yet (a la, fundingcircle).