Long or Short Capital

This is a sponsored post from ReviewMe

What if there was an online market place for small time venture capital fund raising? Would that be something you might interested in? That is what the The Go BIG Network’s Venture Capital Funding provides. I love markets, so much so that I’ve played Monopoly games wherein we have created ad hoc derivative markets to better match the demand for complex financing of fictional real estate projects. But this market seems to be plagued by that which plagues most Internet marketplaces: Low quality listings. It’s unclear whether this because the quality controls of the site itself are weak or that this is just an unstoppable internet phenomena.

Take two listings available today.

Travel Packages worth $15,000 for one-time fee of only $1,295 /couple Around The Woprld Travel Packages
Recreation – Travel Packages and more…

Not only is this just an advertisement for some crappy spamlike vacation package, but they don’t even misspell “World.”

Real Estate Co. Seeks 250,000 for mulit unit projects Baxter Enterprise Investments, Inc
Funding needed for rehabing projects short term

Keep looking for $250k, because who would fund someone that much who can’t even take the time to review their 10 word title for mistakes.

But this doesn’t address whether this marketplace actually works. Does this market connect venture capital with those who need it? It’s difficult to say. But my gut feeling is that in the modern world, the types of businesses who would use this market are precisely the ones who are not capital constrained to begin with. Most online ideas are likely to be critical mass constrained.

The GO BiG Network itself is essentially a social networking site for VC’s, wannabe VC’s, wannabe VC funded entrepeneurs and wannabe VC funded wannabe entrepeneurs. From their about page:

The Problem We Solve

The startup community is highly disconnected. Startups, investors, job seekers and service providers all need one another to survive and grow yet at the same time they are hindered by their own lack of connectivity. Go BIG allows members of the startup community to connect faster by exposing all of the demands of the startup community in one place.

Recommendation: We peg The Go BIG Network’s Venture Capital Funding as market neutral; no harm to play with it just like the online C2C debt lending site Prosper.com. We can’t be short something that has no downside other than time. The catalyst for an upward revision of our sentiment would be the development of a critical mass market place. And if that critical mass market were to gain critical mass, we would expect this site to be bigger than eBay.