HaloBoost uses an All-or-Nothing funding model with a slight twist: If a project seeking $100,000 or more falls short of its funding goal, rather than shut the project down, we give it another 15-days to secure gap financing through a bank loan or equity investment.
Simply put: we believe CROWDFUNDING AND TRADITIONAL FINANCING CAN AND SHOULD WORK TOGETHER.
We call this 15-day period THE ANGEL ROUND.
Like traditional crowdfunding, projects set a funding goal and a deadline to achieve this goal - “We’re looking to raise $1 million in 30 days.” At the end of the campaign, if the total pledges meet or exceed this amount, each Booster’s credit card is charged and the funds are released to the project.
Projects seeking at least $100,000 that fall short of their funding goal qualify for the Angel Round, a 15-day extension in which the project can secure outside financing to make up the difference. Once proof of funds is established, each Booster’s credit card is charged and all pledges are released to the project.
While a project needing $1 million might find it difficult to secure investors, a project with $900,000 in pledges becomes a much more attractive investment. And more projects funded means more jobs created, more cool gifts received, and more help generated for some great causes.