The VENU model: when co-investment meets community fundraising

Introduction

For a long time, the financing of a company or an ambitious project always followed the same patterns: equity, bank loans, or raising funds from professional investors.

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These models remain powerful, but they also have their limitations. They concentrate power in the hands of a few and leave little room for more open forms of involvement.

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However, in some cases, the most committed members of a community could be sensitive to the idea of actively contributing to the development of a project... and also sharing the benefits. This type of involvement, which is more direct and more concrete, often promotes a long-term commitment, well beyond the purchase or the occasional support.

The story behind this strategic choice

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At the origin of VENU, there is a simple but powerful intuition. J.W. Roth, the founder, is not a trained financier. He comes from the world of events and music production. For years, he observed the difficulty of setting up ambitious projects in medium-sized cities: building a concert hall or an amphitheater remained a risky bet, often hampered by the lack of flexible and adapted financing. Banks took few risks. Traditional investors imposed strict conditions. And the public institutions were moving at a slow pace.

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Roth then reversed the logic. Instead of looking for a few big investors, he chose to reach out to those who had the most to gain from the success of the project: the public. The fans, the locals, the concert goers. He imagined a model where these people could not only buy tickets, but also become co-owners of a cultural place, by investing from a few dozen dollars.

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This first bet gave birth to the Ford Amphitheater. Faced with enthusiasm and solid financial results, Roth decided to structure this method under a dedicated entity: VENU. With a clear ambition: industrialize this community model to finance dozens of places throughout the country.

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A hybrid model: between co-investment, private equity and community

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What makes the VENU model so unique is its ability to articulate three logics that we rarely see coexisting in the same device. It's not just about financial diversification. It is a new way of considering the link between a project, its stakeholders and its sources of financing. VENU does not choose between community involvement and economic rigor. It combines the two, adding a layer of agility unique to the world of alternative investing.

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The first dimension is that of co-investment, in its most concrete form. Each cultural site launched by VENU is structured as a project in its own right. It mobilizes a specific investment vehicle, with a clear objective, defined steps and an expected return. This operation is similar to that of club deals: targeted collective contributions, combined for a single operation. Except that here, the circle of investors is not closed. It is public, accessible, and potentially unlimited.

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The second brick is based on private equity foundations. Investors are not simply making a contribution. They buy preferred shares, with a fixed dividend of 8%. These shares can be held, resold, or converted into common shares of the company. This mechanism makes it possible to reconcile efficiency and stability. It gives investors a real place in the long term, with a perspective of valuation if VENU grows as expected.

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The third dimension is undoubtedly the most innovative: it is community logic. Entry into the capital is voluntarily open to everyone, starting at 15 dollars. The rewards are not only financial. Some investors receive privileged access, VIP invitations, and symbolic awards. The challenge is not only to make an investment profitable. It is to be part of an adventure, to support a project in your territory, to associate personal satisfaction with a collective dynamic.

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This intersection creates a unique value proposition. Structuring reassures the most cautious profiles. Accessibility is attracting a new generation of investors. Emotional anchoring stabilizes commitment, even in riskier phases. By combining these three levers, VENU goes beyond speculative logic. It proposes a model where economic performance is born from the cohesion of a community around a project that makes sense.

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How can a business be inspired by it?

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The model put in place by VENU is not reserved for cultural or event actors. It opens a path for any company that has a committed community, a loyal audience or a network of partners who are naturally inclined to support its development. This can be about an independent brand, a media, a content creator, an impact company, or even a franchise in full expansion. The main thing is to have a clear vision, a structuring project and a desire to share the value created with those who already contribute to it.

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Concretely, this means designing each fundraiser as an autonomous operation. Like a club deal, a company can create a dedicated legal vehicle to finance a new product, the opening of a location, the development of a service or the establishment in a new city. This vehicle defines the rules of the game: amount to be raised, type of actions proposed, associated rights, estimated duration of the commitment, and exit or conversion procedures. It's about structuring seriously, but without excessive complexity.

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This model makes it possible to go beyond traditional crowdfunding platforms, which are often limited to symbolic rewards or pre-sales. Here, the public really becomes a co-investor, with a share of the capital and income prospects. The entrance ticket may remain modest, a few dozen or hundreds of euros, but the experience becomes much more engaging. Those who invest are no longer just consumers, they are development allies. They have an interest in the success of the project, and this is profoundly changing the nature of the relationship with the brand.

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For this model to work, there needs to be great clarity in communication. It is not a question of promising mountains and wonders, but of opening up a space for real commitment. Explain the risks, assume the logic of co-construction, value transparency at each stage. This strategic choice can transform a circle of passive buyers into a community of convinced ambassadors. And in an environment where acquisition is becoming more and more expensive, this loyalty through investment can become a highly effective growth driver.

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The challenge of the platform and cost control

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Adopting a structured community financing model also means rethinking the technical tools on which it is based. Too often, companies turn to external platforms that already exist, whether from the world of crowdfunding or private equity. These solutions have the advantage of simplicity, but they have limitations: high fees, standardized interface, little room for maneuver in the relationship with investors, and above all, a strong dependence on a third party.

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To go further, it becomes strategic to create your own platform. A personalized, white label interface allows you to control the user experience, adapt processes to your needs, and manage your fundraising campaigns directly, without interference. It also gives you the opportunity to tell your project in your own way, to align your discourse with your values, and to build a more lasting relationship of trust with your investment community.

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In the long term, this autonomy is synonymous with efficiency. It reduces the costs associated with intermediaries, streamlines operations, and reinforces the overall coherence of the brand image. It also makes it possible to lay the foundations of an internal financial ecosystem, which is both agile, secure and aligned with the company's ambitions.

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Conclusion

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The model proposed by VENU is no longer a matter of experimentation. It provides a solid, structured and already proven path for those who wish to raise funds in a different way. What this company has shown is that community funding can go beyond symbolism. It can become a strategic lever to build, develop and retain. Above all, it can create a new alignment between those who have a vision and those who believe in it to the point of wanting to participate financially.

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This model is aimed at a new generation of actors. Brands that unite, content creators that innovate, franchises that seek to develop without multiplying loans. Anyone who has understood that their community does not only want to consume: it is ready to commit, to invest, to be involved in history.

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And the good news is that this model is now available. It does not require building a gas plant or relying on a single partner. Thanks to simple SaaS tools, like the ones we develop at Fraktion, it is now possible to create your own investment platform, manage your operations, and structure co-investment campaigns in your image. In complete autonomy. And with a collective ambition.

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