My regular readers know that I invest via Kickfurther, an online platform that crowdfunds inventory for businesses. The way it is supposed to work is that a company makes an offer on the platform for a certain return over a certain length of time for use of the investor's money to buy inventory. In theory anyway, the investors buy the inventory and then give it to the vendor to sell, and once it is sold, the vendor repays the investors, plus gives them their profit.
I have been pretty active on Kickfuther for over a year now and tonight I sat down and crunched some numbers on the platform. I may have missed a couple or otherwise not have this completely accurate but hopefully this information is worth more than what you paid to read this blog.
Since its inception, Kickfurther has funded 353 offers. Of those, 69 were paid back before they were due, 41 paid out in equal scheduled installments over the length of the agreement, 22 were late repaying investors and 21 contracts have been cancelled for non-payment. That means almost 6% of the contracts on Kickfurther have been cancelled.
Kickfuther contracts are written with differing amounts of lead time, depending on the business. Since these are consignment sale agreements, the company needs time to acquire the merchandise and sell it before Kickfurther gets paid. Of the 353 contracts ever signed, 98 of them are too new to have a payment due. 42 companies are paying timely, four started paying before the contact called for them to do so and are ahead, 26 are behind where they should be but are paying regularly. 6 started making payments but have stopped along the way and 8 should have made payments but have not done so.
What about the cancelled contracts? Kickfuther refunded invesor's money on seven offers. Kickfurther has the inventory from three companies and is trying to liquidate it. On the other contracts they are negotiating, filing lawsuits and engaging in other collections activities. However, it does not appear that the merchandise was there for Kickfuther to seize. Hopefully the recent change to the "pack" system will make it easier for Kickfurther to track the merchandise and to make sure its investors get paid promptly.
If you would like to invest via Kickfuther, use my link and you get a $5.00 bonus and I'm eligible for prizes. If you have a business and are looking for financing, use this link and I get something