FAQs
About Launcht
- Who Uses Launcht?
- So, Launcht is just like __________?
- What is a social entrepreneur?
- So, social entrepreneurs start “non-profits”?
- So, the businesses on Launcht are all incorporated already?
- What type of corporation is Launcht?
- Is Launcht a “non-profit”?
- Where is Launcht based?
- When was Launcht founded?
- How long do businesses have to raise funds?
- What’s the overall timeline?
- Who is eligible to apply?
- How does Launcht make money?
Funders and Funding
- Who is allowed to fund a business on Launcht?
- How does funding work?
- Does the business I fund get all the money I give them?
- Are funders buying shares or securing a share of revenue in my business?
- Do I get an ownership stake in the companies I fund?
- How much can I fund?
- How much can I raise?
- How many businesses can I fund?
- Is my contribution tax deductible?
- What are my tax obligations?
- How can I support these businesses?
- What if the company doesn’t hit its funding goal?
- What does the business I fund do with my money?
- What if the business I fund doesn’t really “take off”?
- Do funders need to be a certain age?
- Do funders need to be in the United States?
- How much do businesses generally raise on Launcht?
- Why should I fund these businesses?
Businesses on Launcht
- What kind of businesses are on Launcht?
- Are all the businesses non-profits?
- Where are these businesses based?
- Who makes sure these social entrepreneurs do what they say they’re going to do?
- What are the categories of businesses on Launcht?
Rewards
- How do businesses earn rewards?
- What kind of rewards do businesses earn?
- How do funders earn rewards?
- If I want to offer a reward on Launcht, who do I contact?
More Information
About Launcht
Who uses Launcht?
Social entrepreneurs use Launcht to receive contributions from people who want to see them succeed and see their businesses have a positive impact on the world. Funders use Launcht to find out more about businesses that are having a positive impact in the world and give those businesses money to get started.
So, Launcht is just like __________?
Nope. Otherwise, we would be working for them or they would be working for us. We host competitive crowdfunding platforms for socially responsible businesses. We provide a bunch of very practical rewards to the businesses competing on our platform, to help them get what they need to get launched.
What is a social entrepreneur?
We define social entrepreneurs as founders of both for-profit and non-profit businesses that generate revenue by improving the state of the environment, education, public health, or society. These entrepreneurs are on the forefront of a movement to build businesses that are solving the biggest problems in the world.
So, social entrepreneurs start “non-profits”?
Sometimes. Generally speaking, social entrepreneurs can use any legal form of incorporation to structure their business. There are forms of corporation that are more commonly used by social entrepreneurs than others, but there isn’t only one. Social entrepreneurs commonly form: c-corporations, many kinds of non-profit corporations, LLCs, benefit corporations, partnerships, and many other types of corporations.
So, the businesses on Launcht are all incorporated already?
No. Some of them are incorporated and some are not. We accept businesses on our platform that are incorporated or unincorporated and anywhere from very early idea stage to having earned revenue from their business.
What type of corporation is Launcht?
Launcht is the first Benefit Corporation to have incorporated in the State of Vermont. Our legal status was approved on May 9th, 2011 and went into effect on July 1st, 2011. This legal structure allows us to protect our values and still be a c-corporation in most other ways. To keep this legal structure, we must pass an annual review by a third-party that certifies we are benefiting the world by increasing the flow of money to other socially responsible companies.
Is Launcht a “non-profit”?
No. Launcht is a for-profit taxable company legally incorporated as a Benefit Corporation in the State of Vermont.
Where is Launcht based?
We are based out of New York City.
When was Launcht founded?
Launcht was founded in October of 2010. We became the first Benefit Corporation in the State of Vermont on July 1st, 2011.
How long do businesses have to raise funds?
All businesses have 60 days to raise funds from the day their business page is published. Following our review of your application, we’ll notify you if you have been accepted. If you are accepted, you have a couple days to modify your business profile to make it more public facing or market ready. After you have made any such modifications, you will publish it. That is when your 60 days starts.
What’s the overall timeline?
You can sign up and create your business profile starting on October 14th. The link to sign up will be sent by WJF to the businesses accepted into the competition. Upon receiving that link businesses can begin creating their profile and will have 60 days to raise funds from the date their business profile is published. The three businesses that have raised the most by 5pm on December 8th will be advanced to the 2nd round of the WJF competition. Businesses can continue to raise funds after this date, up to their 60 day maximum.
Who is eligible to apply?
The platform is open to for-profit social enterprises that have a United States-based bank account. The primary business founder that registers to use the platform must be at least 18 years of age to apply.
How does Launcht make money?
Launcht makes money by collecting five cents out of each dollar raised on the platform.
Funders and Funding
Who is allowed to fund a business on Launcht?
Anyone over 18 with a United States based credit or debit card.
How does funding work?
As a funder, you can determine how much you want to give to a business after reviewing their business page on Launcht. Enter the amount you want to give the business in the box above the “Fund” button and click the “Fund” button. You will be guided through a couple more steps to complete your transaction with our credit card processor.
Does the business I fund get all the money I give them?
The full amount you contribute is added directly to the business’ total funds raised, which determines their rank in the competition. The business collects a bit less than the full amount you contribute. The business covers the cost of your credit or debit card transaction, which is levied by our credit card processor; this is currently 3.5 cents of every dollar contributed. Launcht collects 5 cents of every dollar contributed.
Are funders buying shares or securing a share of revenue in my business?
No, not at all. Your funders are, for all legal purposes, giving a gift to the business founders or business with absolutely no anticipated or implied return for their gift. From a philosophical standpoint, this gift is given to further the likelihood that the entrepreneur will be successful in their business endeavor and take part in solving some of the biggest problems in the world.
Do I get an ownership stake in the companies I fund?
No, not at all. Funders are, for all legal purposes, giving a gift to the business founders or business with absolutely no anticipated or implied return for their gift. From a philosophical standpoint, this gift is given to further the likelihood that the entrepreneur will be successful in their business endeavor and take part in solving some of the biggest problems in the world.
How much can I fund?
Technically speaking there is no limit to how much can be given to a business on Launcht. The maximum one time contribution is $1,900 and that amount can be given more than once. That said, we strongly encourage you to consult a tax-professional about the tax implications of giving away large sums of money. Specifically, we strongly encourage you to discuss the “IRS Gift Tax Limit” and other regulations with your tax-professional.
How much can I raise?
Technically speaking there is no limit to how much can be raised by a business on Launcht. That said, we strongly encourage you to consult a tax-professional about the tax implications of receiving large sums of gifted money. Specifically, we strongly encourage you to discuss the “IRS Gift Tax Limit” and other regulations with your tax-professional.
How many businesses can I fund?
A funder can fund as many business as she or he wants.
Is my contribution tax deductible?
No, not at all.
What are my tax obligations?
We cannot advise you on this. We strongly encourage you to consult a tax professional regarding giving gifts on Launcht.
How can I support these businesses?
You can support these businesses by contributing towards their funding goal and by telling everyone you know about what they are doing on Launcht! You can also support these businesses by giving them your time, emotional support, and anything else you can think of that will help them be successful. We encourage you to get to know and stay in touch with the entrepreneurs you fund.
What if the company doesn’t hit its funding goal?
Companies that do not hit their funding goals keep the money that they raise. We believe that even a small amount of money in the hands of a social entrepreneur can do a lot of good and bring their venture closer to success.
What does the business I fund do with my money?
The business describes what it intends to use your money for on the business page. Launcht does not verify or endorse the intended or actual use of funds raised on Launcht. Fund business that you believe will put the money to good use.
What if the business I fund doesn’t really “take off”?
There is no guarantee that the business you fund will be successful, however you or the business define success. Starting a business is a risky endeavor and its success depends on a number of factors. Your financial support is sure to help and your continued involvement and attention is sure to further the financial support you contributed. Stay involved with the businesses you fund.
Do funders need to be a certain age?
Yes. Funders must be at least 18 or older.
Do funders need to be in the United States?
Not technically. That said, funders must have a United States based credit or debit card.
How much do businesses generally raise on Launcht?
We are sure these businesses can do amazing things; the sky’s the limit. For guidance only, based on our research and estimates we figure businesses will raise between $5,000 and $12,000.
Why should I fund these businesses?
Because you believe in the entrepreneurs and the work they’re doing. Give because you believe that they can solve some of the biggest problems in the world.
Businesses on Launcht
What kind of businesses are on Launcht?
Launcht is for socially responsible businesses. According to us, this is any business that has a revenue generating model for improving the environment, education, public health, or society.
Are all the businesses non-profits?
No, our platform and competition is available to socially responsible for-profits.
Where are these businesses based?
These businesses are based all over the world, but must have an American bank account.
Who makes sure these social entrepreneurs do what they say they’re going to do?
Many, though certainly not all, of the funders of businesses on Launcht are people who know the business founders. This forms a natural level of accountability to be true to the people who care about, know, and support you. Beyond that, you and we stay in touch with the businesses that use Launcht and can see what they are doing. We give especially close attention to the businesses that are finalists in our competition and follow up with them annually to track their progress.
What are the categories of businesses on Launcht?
Businesses on Launcht strive to improve the world in the areas of the environment, education, public health, and society. A business must categorize itself as benefiting one of these areas in order to register on Launcht.
Rewards
How do businesses earn rewards?
Rewards are unlocked at $1,000 fundraising milestones from $1,000 to $10,000. At each of these benchmarks, businesses will have access to new rewards. Additionally, some rewards are made available as soon as your business is accepted to the Launcht platform. Businesses will retroactively and immediately receive any rewards negotiated and secured after you pass the the milestone for a new reward. We are constantly negotiating and securing new rewards.
What kind of rewards do businesses earn?
Businesses can earn many different types of rewards. At this time, most of the rewards are structured as discounts on practical goods and services of use to a business or business founder. Check out our partners, rewards, and badges webpages to see examples of the rewards we offer.
How do funders earn rewards?
We are currently negotiating rewards for funders with our reward partners. Please stay tuned.
If I want to offer a reward on Launcht, who do I contact?
You can contact freeman{at}launcht.com.
More Information
What if I frequently ask other questions?
Feel free to contact us at hereforyou [at] launcht.com.
Partners
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