NY start-up Pave confronts student debt with crowdfunding site
- The founders of New York start-up Pave say that their site, launched Wednesday, will tackle student debt by connecting students and other young people launching careers with established professionals willing to invest money and mentorship, who would then receive a percentage of the student's future earnings for a predetermined period of time.
- Pave users (or "prospects") establish a profile by providing verifiable information like college major, GPA and portfolios or other evidence of their talent or work, and then list an amount they want to raise between $3,000 and $50,000 (the average is currently $20,000 to $30,000).
- The site performs a credit check on all prospects, sharing that information with backers, who are owed the agreed upon share as soon as their prospect starts earning an income and filing tax returns.
From the article:
Crowdfunding platforms across the web invite supporters to pledge money to all kinds of projects and businesses, but Pave, a New York startup launching Wednesday, wants its backers to invest in people. As student debt climbs and new crowdinvestment models proliferate, Pave’s founders say their site enables students and other young people launching careers to connect with more established professionals willing to provide money and mentorship. In return for their investment, backers receive a cut of the student’s future earnings over a predetermined period of time. ...
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