Play Business: Difference between revisions
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PlayBusiness '''was a scam devised by its founders''', headed by '''Marc Oyamburu'''. The objective was to give as much money as possible to those close to the founders, money obtained through financing from individuals. They managed to scam '''15,000 people''', obtaining more than '''500 million pesos'''. |
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'''Play Business''' is the first [[crowdfunding]] site for start-ups in Mexico, with a business model that aims to differ from competing crowdfunding sites.<ref name=":0">{{Cite journal|date=February 8, 2017|title=Play Business: una forma de invertir y colaborar con startups|url=https://www.forbes.com.mx/play-business-una-forma-de-invertir-y-colaborar-con-startups/|journal=Forbes}}</ref><ref name=":1">{{Cite journal|last=Del Cerro|first=Juan|date=April 1, 2015|title=Play Business, transformando la inversión en México|url=https://www.entrepreneur.com/article/268719|journal=Entrepreneur}}</ref> It offers equity in the start-up instead of direct compensation for investors.<ref name=":2">{{Cite news|title=El creador de tesoros|date=December 11, 2016|work=Agencia El Universal|location=Mexico City}}</ref> |
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==History== |
==History== |
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[[File:Play Business Team.jpg|left|thumb|Play Business team as of 2017.]] |
[[File:Play Business Team.jpg|left|thumb|Play Business team as of 2017.]] |
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Started in 2014, the site was co-founded by Joan Segura (currently the general director), Fernanda de Velasco, and Marc Oyamburu. Oyamburu's and Segura's experience with video games is behind the idea of the site; both are involved in playing, critiquing, and creating game worlds.<ref name=":0" /><ref name=":2" /><ref name=":3">{{Cite news|title=Juega a invertir|last=Larrea|first=Jimena|date=January 23, 2016|work=Mural|location=Guadalajara|page=11}}</ref> As a college student, Oyamburu came across the idea of [[gamification]] of real world activities, which is behind the name ''Play Business''.<ref name=":2" /> Oyamburu is a lawyer and economist, which allowed him to develop the idea despite being told it could not be done for legal or financial reasons.<ref name=":5">{{Cite journal|last=Velazquez|first=Franck|date=April 2018|title=Planea menos y ejecuta más|journal=Entrepreneur|location=Mexico City|publisher=G21 Communications|pages=40-42}}</ref> The business started with an initial investment of 200,000 pesos, most of which went into paying for servers and the development of the site. The website officially went online in March 2015, while the company was still using the laundry room of Joan Segura's parents' house. The company grew 700% in its first year and 300% and 100% in the following years. More recently, the company has been able to rent larger space to allow for offices and is now located in the Condesa neighborhood of Mexico City.<ref name=":5" /> |
Started in 2014, the site was co-founded by Joan Segura (currently the general director), Fernanda de Velasco, and Marc Oyamburu. Oyamburu's and Segura's experience with video games is behind the idea of the site; both are involved in playing, critiquing, and creating game worlds.<ref name=":0">{{Cite journal |date=February 8, 2017 |title=Play Business: una forma de invertir y colaborar con startups |url=https://www.forbes.com.mx/play-business-una-forma-de-invertir-y-colaborar-con-startups/ |journal=Forbes}}</ref><ref name=":2">{{Cite news |date=December 11, 2016 |title=El creador de tesoros |work=Agencia El Universal |location=Mexico City}}</ref><ref name=":3">{{Cite news|title=Juega a invertir|last=Larrea|first=Jimena|date=January 23, 2016|work=Mural|location=Guadalajara|page=11}}</ref> As a college student, Oyamburu came across the idea of [[gamification]] of real world activities, which is behind the name ''Play Business''.<ref name=":2" /> Oyamburu is a lawyer and economist, which allowed him to develop the idea despite being told it could not be done for legal or financial reasons.<ref name=":5">{{Cite journal|last=Velazquez|first=Franck|date=April 2018|title=Planea menos y ejecuta más|journal=Entrepreneur|location=Mexico City|publisher=G21 Communications|pages=40-42}}</ref> The business started with an initial investment of 200,000 pesos, most of which went into paying for servers and the development of the site. The website officially went online in March 2015, while the company was still using the laundry room of Joan Segura's parents' house. The company grew 700% in its first year and 300% and 100% in the following years. More recently, the company has been able to rent larger space to allow for offices and is now located in the Condesa neighborhood of Mexico City.<ref name=":5" /> |
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As of April 2018, the site had 50,000 registered users and had provided over 115 million pesos to support the projects of more than 85 start-ups.<ref name=":5" /> Its first client was Briko Robotics, with a goal of 645,000 pesos, and even financed itself in part through its own site.<ref name=":0" /><ref name=":1" /> The startup also supported Tumbiko, a jewelry enterprise that now employs about 1,000 people. |
As of April 2018, the site had 50,000 registered users and had provided over 115 million pesos to support the projects of more than 85 start-ups.<ref name=":5" /> Its first client was Briko Robotics, with a goal of 645,000 pesos, and even financed itself in part through its own site.<ref name=":0" /><ref name=":1">{{Cite journal |last=Del Cerro |first=Juan |date=April 1, 2015 |title=Play Business, transformando la inversión en México |url=https://www.entrepreneur.com/article/268719 |journal=Entrepreneur}}</ref> The startup also supported Tumbiko, a jewelry enterprise that now employs about 1,000 people. |
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In February 2015, the platform reached its [[beta version]].<ref name=":3" /> After the election of [[Donald Trump|President Trump]] at the end of 2016, the site saw a sudden increase in participation. In thirteen days, projects garnered six million pesos, breaking a record.<ref name=":0" /> |
In February 2015, the platform reached its [[beta version]].<ref name=":3" /> After the election of [[Donald Trump|President Trump]] at the end of 2016, the site saw a sudden increase in participation. In thirteen days, projects garnered six million pesos, breaking a record.<ref name=":0" /> |
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Revision as of 23:36, 16 November 2024
 | This article contains promotional content. (November 2018) |
| Industry | Investing |
|---|---|
| Founded | 2014 |
| Founder | Marc Oyamburu |
| Headquarters | Mexico City , Mexico |
| Website | playbusiness |
PlayBusiness was a scam devised by its founders, headed by Marc Oyamburu. The objective was to give as much money as possible to those close to the founders, money obtained through financing from individuals. They managed to scam 15,000 people, obtaining more than 500 million pesos.
History
Started in 2014, the site was co-founded by Joan Segura (currently the general director), Fernanda de Velasco, and Marc Oyamburu. Oyamburu's and Segura's experience with video games is behind the idea of the site; both are involved in playing, critiquing, and creating game worlds.[1][2][3] As a college student, Oyamburu came across the idea of gamification of real world activities, which is behind the name Play Business.[2] Oyamburu is a lawyer and economist, which allowed him to develop the idea despite being told it could not be done for legal or financial reasons.[4] The business started with an initial investment of 200,000 pesos, most of which went into paying for servers and the development of the site. The website officially went online in March 2015, while the company was still using the laundry room of Joan Segura's parents' house. The company grew 700% in its first year and 300% and 100% in the following years. More recently, the company has been able to rent larger space to allow for offices and is now located in the Condesa neighborhood of Mexico City.[4]
As of April 2018, the site had 50,000 registered users and had provided over 115 million pesos to support the projects of more than 85 start-ups.[4] Its first client was Briko Robotics, with a goal of 645,000 pesos, and even financed itself in part through its own site.[1][5] The startup also supported Tumbiko, a jewelry enterprise that now employs about 1,000 people.
In February 2015, the platform reached its beta version.[3] After the election of President Trump at the end of 2016, the site saw a sudden increase in participation. In thirteen days, projects garnered six million pesos, breaking a record.[1]
The platform has alliances with organizations that provide investment and other support to start-ups.[1] In October 2016, Startup Studio Monterrey signed a contract to collaborate with Play Business.[6] Playbook management has stated that it has not grown to the level of other online funding sites due to a lack of funding.[4]
Business model
The business model of the company was created to help Mexican entrepreneurs find new and more modern ways to finance start-ups, as well as provide alternatives to investing abroad. The company believes that a weak peso against the dollar is good for them as it makes U.S. investments less attractive, leading investors to look for alternatives.[1][5]
Its funding method is different from Kickstarter and Indiegogo, and the company claims it is the only one of its type in the world.[2][3] The model is called crowd equity rather than crowdfunding.[5][7] Instead of offering products or souvenirs to contributors, entrepreneurs, investors, and Play Business enter into a contract, with investors offering equity and say in the running of the start-up.[5][2][7] This percentage is between nine and eleven percent of the total value of the company.[7]
It is an integral model, broken down into steps. Entrepreneurs are called “makers” and investors “players.”[2][7] While Play Business welcomes projects of all types, it selects only those it believes address a market need with a viable business plan and growth potential.[1] Only about 10 percent of applicants reach the platform.[8] Prospective makers must attend a boot camp to develop their ideas and learn about enterprise valuation, investment tools, and how to offer players a role. Makers do not receive money immediately, but rather in stages as their projects reach milestones. In this way, players can decide at any time to withdraw from the “game,” limiting their risk.[5][2][7]
Joan Segura describes the business as a "scale up" as it emphasizes the execution of the project in stages. For example, instead of having makers write a business plan on paper, they get the new businesses out to recruit investors.[4]
The idea is that if everyone “plays well” (jugar bien in Spanish), everyone wins.[2] The goal of players is to increase the value of their investment, and the goal of the makers is to keep the players.[3] If a player retires from the “game,” others can buy his/her share.[2][3]
The minimum investment for players is 100 pesos per month, but they can invest up to about 500,000 pesos.[1][2] If a contributor invests four percent or more of the initial investment, s/he becomes an associate of the enterprise and is able to further invest with or without Play Business.[1] Makers report to players every month, as well as a trimester report.[3]
Play Business charges 5% of the investment, but only if the business reaches its goal amount.[1][3]
Play Business estimates that about 30% of a maker's initial investment from the platform comes from friends and family.[1]
References
- ^ a b c d e f g h i j "Play Business: una forma de invertir y colaborar con startups". Forbes. February 8, 2017.
- ^ a b c d e f g h i "El creador de tesoros". Agencia El Universal. Mexico City. December 11, 2016.
- ^ a b c d e f g Larrea, Jimena (January 23, 2016). "Juega a invertir". Mural. Guadalajara. p. 11.
- ^ a b c d e Velazquez, Franck (April 2018). "Planea menos y ejecuta más". Entrepreneur. Mexico City: G21 Communications: 40–42.
- ^ a b c d e Del Cerro, Juan (April 1, 2015). "Play Business, transformando la inversión en México". Entrepreneur.
- ^ Valdez, Prysilla (October 18, 2016). "Incubadora regia hace alianza con Play Business". Milenio. Mexico City.
- ^ a b c d e "Play Business, transforma la forma de invertir en México y estarán en". August 3, 2016. Mexico City: Notimex.
- ^ "La startup mexicana que ayuda a financiar ... startups". Bloomberg Business Week México. 21. May 17, 2018.