Fact Card is a series of posts summarising crowdsourcing and public decision making initiatives relevant to our project. Please post a comment or email us with any clarification.
Launched in early 2012, Smallknot lets people invest in the small businesses in their community in exchange for goods, services, special perks and other benefits. Smallknot serves exclusively to the needs of local businesses looking to expand and grow but need a little extra capital. Banks often don’t lend to the smallest businesses and often projects like these get pushed forward.
How does it work?
- After finding an interesting business among the available campaign, users can invest in campaigns by choosing one of the offered returns. Money is charged only if the business hits its stated goal. Supporters will be contacted about how to claim their return.
- Project contributors do not earn interest on Smallknot. Supporters do not take any kind of ownership in the businesses they support.
- Smallknot retains a 10% commission on any successful campaign. In addition an additional 2.9% is charged for payment processing.
Citizens, local businesses, Smallknot Inc.
Active. Smallknot operates primarily in New York but are looking into expanding to other cities in the US.