Sponsorist featured on CNNMoney.com

Sponsorist has been featured on CNNMoney’s “Innovative financing for small business owners” feature as one of five companies that has raised funding in unconventional ways. I used crowdfunding site Peerbackers.com to raise money for the beta development of the site. Read the entry below or click here to read the entire article.

“Crowdfunding worked for me”

Owner: Rosston Meyer
Location: Lake Worth, Fla.
I was about six months into developing Sponsorist.com, an online marketplace where businesses can buy and sell sponsorships from one another, when I realized I needed about $10,000 to get beyond the beta version. I tried talking to my local bank but because I didn’t have any sales, it wasn’t willing to help. Then I remembered meeting members of Peerbackers.com at a tech event a year earlier. So last summer, I began to put together a pitch including how I planned to grow and brand Sponsorist.com. Peerbackers is a lot like Kickstarter, a crowdfunding site where you post your project and, in turn, friends and complete strangers can contribute money to help you grow your business. So I posted information about Sponsorist and started to spread the word through e-mail and Twitter to anyone I could think of. Peerbackers.com posted my project details on its homepage, which attracted even more traffic. Eventually, a total of 15 people agreed to back my site — two of which I had never even met — helping me raise $2,500, a quarter of my goal, in just eight weeks. I’m sure I annoyed a bunch of people by asking them for money but crowdfunding really worked for me. I was able to pay a developer to add just enough functionality to create a beta version. In return, Peerbackers.com took a 5% cut of the money I raised, and I sent my project backers T-shirts as thank-yous.