I received a press release from Shares.com that I found interesting. According to the title of the press release, the company is offering “Crowdfunded Domain Name Investment Opportunities.” I saw a similar press release for Shares.com for the art community.
Shares.com is obviously a great domain name, and although I first thought about stocks when I saw the name in the email subject, the branding seems to make sense. The email I received wasn’t personally addressed to me, and I am not sure who owns or is operating Shares.com.
I would personally need to do much more due diligence before considering a crowdfunded domain name investment (or selling a domain name in this manner). According to the Shares.com website, the company “will soon accept submissions on” things like start up businesses, properties, artwork, vintage coins, stamp collections, and other collectibles.
Here is the entire press release I received:
Shares.com Unveils Crowdfunded Domain Name Investment Opportunities
A new investment platform is preparing to offer investors an opportunity to own micro shares in high value domain names.
Shares.com is a concept that allows investors to pitch in and purchase high value domain names using the crowdfunding system for investment purposes. The platform aims to reshape the face of investment with its business model that allows investors to purchase shares of high value domain names where each share can be purchased for as little as £100 depending on the value of the domain name.
In 2014, the top reported domain sales included z.com: $6,784,000, mi.com: $3.6m, whisky.com: $3.1m and in the history of domain names top sales included: internet.com: $18m, hotels.com: $11m, fund.com: $9.99m. (Full list can be found here). However, not all investors can afford to buy a multi-million dollar worth domain name, but with Shares.com, each person can split the value of the domain name into smaller shareholdings, allowing a slice of the action for around £100. Once all shares are sold for a domain name, investors can place their shares for sale for a higher price on the Shares.com platform, which provides a platform for investors on any budget.
Ibrahim Sal, Business Development Director of Shares.com, says, “With the launch of Shares.com, we are combining the traditional method of investment and asset trading, with the new crowdfunding trend that has taken off around the globe.
Our group investment model is giving investors without immediate access to huge funds the chance to start their own portfolio of micro shares on the asset classes we cover. By clubbing together with other investors, shares.com members can be part-owners of a high value piece of art, classic car, domain name or collectible item.”
With the financial support received by 2 angel investors, the platform will be opening its virtual doors to UK based investors in October 2015. Shortly after UK launch it will be opening its platform to other countries in the European Union.
The team at Shares.com are also currently seeking domain investors, collectors, and high value domain owners that would like to list their domains for sale using the platform. Sellers all over the globe are invited to contact Shares.com if they have classic cars, domain names, art, antiques or other collectibles that they would like to open to buyers on the new platform.
By offering high value domain names to multiple investors in little shares, shares.com makes it an easier process to sell a domain name that would otherwise need to be sold to a sole investor in full. It is not only harder to reach investors with that amount of available funds but is also a lengthy process, whereas there are many more investors that can afford to pay as low as £100 and are much easier to reach.
10,000 micro owners of a Million dollar domain.
Ummm yeh ok. That’s called a recipe for legal headaches galore down the road.
Like the concept which can be refined, certainly fit for purpose.
FUSU.com tried something similar with domain names years ago.
It never gained traction. I’m surprised to see that the FUSU site is still up.
I like the idea. Wondering why nobody has done it yet. Shares.com itself is a domain like a dream itself.
I’m a bit skeptical with this concept but with time we shall see how it goes.
Sounds like a beautiful idea. But a difficult one to pull off!