UK startup Frostbox, which aims to be the Dropbox of social media, is offering up pieces of the company to investors -- but only those with Klout scores of 60 and above.
January 02, 2013 Posted by Karl Amstadt
The program, run via Wahooly, is based on the premise that publicity from such social media mavens should translate into equity in the company. Dana Severson, co-founder and CEO of Wahooly, says the share of equity is based on the amount of social media activity. Severson declined to disclose exactly how much of Frostbox is being offered, though typically companies offer equity in 1% to 8% of their companies. Wahooly partnered with Klout last year.
Like previous funding efforts, Wahooly skirts SEC rules by offering investors "points" rather than direct equity. In some cases, investors get gifts like an iPad Mini for their participation.
While standard Wahooly campaigns are open those with scores of 45 or more, this plan is a "social experiment (with Klout) to document the growth of a single company when people with extremely high influence have a vested interest in its success," Severson says. "This is a unique case that we're doing for both Wahooly and Klout's behalf."
Frostbox's business plan has a big social media element, which is why it is seeking bigger influencers. The idea behind Frostbox is that you can save all the data you post in social media. While some, like Twitter, have also begun letting you do the same, Severson says having a personal record might have some appeal. For instance a parent might want to keep records of all the Facebook posts they wrote on their kids' birthdays. "We expect Facebook will be relevant and around when [kids are ] 20 to 30 years-old, but that may not be the case," Severson says.
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