Vince Recordeau, 45 years old, had created a crowdfunding website called KissKissBankBank in 2009. In addition to be one of pioneers of this new kind of fundraising, he is part of leader in France and Europe.
In 2009, Vince Ricordeau, Ombline Le Lasseur and Adrien Aumont have not only created KissKissBankBank but they are at the head of three different crowdfunding platforms. The first one, KissKissBankBank, is aimed to innovating cultural jobs such as cinema, music or high-tech. Then, the creation of HelloMerci, a website made for micro-entrepreneur like nurseries, bakeries or even pizza chiefs as Vincent Ricordeau noticed.
Lendopolis is the third and latest project to directly investing in French SME.
Vince Ricordeau sincerely think that in long-term Lendopolis will allows already established companies in the market to find fundraising even if KissKissBankBank is still the most enabling platform to host IOT projects.
Today the firm has 14 members whereas they were only 8 to manage the three platforms last year. KissKissBankBank is currently looking to strengthen Lendopolis teams with new developers as well as experts in credit analysis.
In which context KissKissBankBank had been created ? Where this idea comes from ?
This is Ombline Le Lasseur that is at the origin of the idea of KissKissBankBank’s creation. She originally worked in the music world. The platform was created from a “general dissatisfaction” of the three partners against the “diktat” of big businesses music such as Universal or NRJ. Due to the birth of MySpace in 2003 then Facebook few years later, more and more artists had found some visibility on the Internet and had thus proved to the public. “We had noticed that in addition to talking about artists, we could also finance them ourselves.” For them that was the logical outcome of things. This idea was very efficient for musicians and was it also for the fashion and high-tech community. KissKissBankBank is in some way a combination of MySpace and Facebook and 80% of their traffic is generates by Facebook.
How this idea was received ? How have you succeed to finance your project ?
Vincent Ricordeau: “ At the beginning, 6 years ago, everyone thought that we were mad.” The creators of this crowdfunding platform had met a lot of hesitations from people who were not convinced and did not believe in, except those who were imbue with an “indie” culture. Fortunately, Vincent Ricordeau and his partners did not listen to the criticisms and continue to move forward. They finally quitted their own jobs to give the best of themselves in this project.
“The fundraising has been done in two times such as a crowdfunding: Vincent Ricordeau and his two associates were first collected €50 000 with relatives then €750 000 from X Ange, an investor.”
What did happened then ? What were the essentials steps at the launch of KissKissBankBank ?
The launch of the website was made in three steps:
- The legal part, to find in which category classify it since it was a brand new concept. This step took them about 3-4 months.
- The manufacture of the website had lasted about 8 months. This is the longest stage because none of them came from the web community.
- Finally, the substantive work with their close network (cinema, music, high-tech), to start sourcing the first projects.
Vincent Ricordeau tell us that KissKissBankBank took five years to be finished whereas it was provide only two. But above all, for 15 months, nobody believed it.
From September 2009 to December 2010, KissKissBankBank had only obtained €100 000 but from January 2011 to December 2011 it was €500 000. Then, in 2012, it was 2 millions, 8 millions, 18 millions quasi-exponential way. Now today, KissKissBankBank achieves €26,8 millions. They noticed from scratch, a curve of 300% growth per year.
Why such enthusiasm ?
Firstly, thanks to its name, a double onomatopoeia easy to remember :
KissKissBankBank. But also due to their huge offline network in Paris, which allowed quickly many partnerships. Secondly, according to its founder: “everyone needs to take a bit of freedom concerning his or her money, which brings nothing into the banks unless they are rich.” For the artists, it’s the desire to go at the end of their creativity, even if it does not work. In opposition to MyMajorComapny who at the beginning took some royalties from the artists, KissKissBankBank will not take on anything from cashed profits.
Is KissKissBankBank a leader in the IoT industry ?
“We are part of 5-6 pioneers so we have really create the buzz. We have more developed the wave than surfed on”. – Vincent Ricordeau – Founder of KissKissBankBank
Today, there are approximately 2 000 crowdfunding websites and they are one of the five pioneers. The founder of KissKissBankBank recognizes that “It will be difficult for us to defeat Kickstarter because the market is mainly American but certain products do not fit at all”. KissKissBankBank can be used as a “test” service for those who want to try a smaller market.
He claims also that “Kickstarter has a higher failure rate than KissKissBankBank’s one because there are too many products on the website that if the company does not put at least $50 000 on communication in addition to collected money, their campaign is destined to fail.”
Moreover, KissKissBankBank plans a partnership with a supplier to directly commercialize financed projects but it is impossible to know more about that… The deal is in progress.
What are the “significant” successes among the IoT ?
Many Iot held in the KKBB’s offices came from Kickstarter. But there was the huge success of the connected showerhead or the tracker of lost objects connected keychain. But according to Vincent Ricordeau, fan of music, the connected accordion Dualo was the most beautiful Iot passing through their offices.
Will the crowdfunding or participatory financing replace the loan system ? The finance ?
Vincent Ricordeau: “We are not attacking to anyone, neither banks, nor to State subsidies, we just filled only a vacuum”.
“We just want to prove to people that they are not force to pass in bank’s finance and we can help each others as invidious”. – Vincent Ricordeau – Founder of KissKissBankBank
Vincent Ricordeau is describing a real problem within traditional finance but insists that failing to replace it, which will be impossible, they may change it…