Online business-buying 'syndicate'

Hey,

I was just wondering what people think of such things (I know they already exist and this isn't a new idea)?

Let me explain:
- Basically, I'm talking about a collection of people who pool money together and buy businesses. Perhaps similar to private equity in some senses but I'm talking on a smaller scale and more accessible scale.
- Say, for example, that you have 10 people who all invest $1000 and with the combined fund they buy a few sites and/or domains.

That's the basic idea. I've been thinking that such a thing could potentially be successful, but perhaps more open too. For example, rather than having 10 people invest $1000 as per my example, you could have 100 people invest $100.

If a large enough pool of money was raised, I feel in the current climate this kind of thing could be successful. Perhaps split the fund up and have a certain amount allocated for buying online real estate (domains and the like) and a certain amount allocated for developing domains or improving existing developed sites.

I know there must be hundreds of people out there who'd love to be a part of something 'bigger' and this would be the perfect platform at a very accessible level.

Anyway what are your thoughts? Any examples of existing organisations like that described above? Could it be successful or do you think it'd be a case of too many cooks spoil the broth (ie. too many people to please and therefore too time-consuming etc)?

As I say, in my opinion it could be successful but the stumbling block is getting off the ground and convincing others to come on board (not to mention sorting all the legalities etc). Let me know what you think!

 

So it's basically Angel Investing online??? You should take a look at the venture capitalist industry- offline it's quite intense. They have a due diligence process, I got a copy of one and it was over 100 pages! + all the interviews they do.

It could work- you just need to have a plan on the types of business you want to invest in, how much is the maximum investment, how often you will send investors updates etc. Planning is the key.

 

Yes, along those lines. Although more a case of the investors themselves finding the opportunities (business, domain names) and working on them. Not sure if that makes sense exactly, but basically as far as I know business angels invest money in new businesses but don't own them outright or run them. The idea here would be for the investors to run the businesses. Of course, in reality what you'd rather need is a few people responsible for running the businesses on a day-to-day basis while the investors would be able to give their input but not actually have a hands-on role as such. So I suppose in this way the investors would be akin to angel investors.

Ah, I don't feel I'm expressing myself very clearly or concisely, but hopefully you get the general idea!

 

You don't make a lot of money online do you?

 

I make enough for it to be a worthy hobby. At the same time it's not my main income source. Your point being...?

 

Just as a note- your signature isn't working.....

If you can find some cashed up people in the JV section to join you, then it could possibly work- but as I said you need a plan on what websites you will invest in, and the ones you won't..... Also a set of criteria for investing is a good idea.

 

Thanks for the heads-up, fixed now. Thanks for the comments as well; this is something I'll think about and possible consider launching at some point this year. I'll see how things go!

 

It is a great idea. There is people doing it on the Warrior forum, with this thread called Flippa Buying Group. You can go ahead and form a group, I'm a website broker and I can help you guys out if you need profitable sites.