Johannesburg - Crowdsourcing might just be the next moneyspinner in the internet space.
The concept is about methodologies of sourcing creative solutions and opinions from a community of creative minds. It as simple as that, but its applications can be quite varied. Crowdsourcing solutions can vary from fund sourcing to technology innovation to design.
Earlier in October, Eran Eyal and Eric Edelstein of Fashion Evolution received R4m in venture capital to expand their Springleap.com business. The funding came from a private funder, Lord Duncan Barratt, who believed the business model could be as big as Facebook and Twitter.
Springleap.com was launched 18 months ago has become the largest crowdsourcing website in South Africa, as well as one of the most popular crowdsourcing websites internationally.
Fin24.com chatted to Eyal to find out a bit more about the business.
How does crowdsourcing work in practice?
Imagine a large firm such as a beer company wanting to create a new name for a beer. By using our web-based platform, they can have a community of people wanting to get involved.
The creative side of the community will conceptualise new names, and the general community will interact with the brand on multiple levels, such as voting on the various names and commenting and discussing ideas around the brand.
Have you always wanted to be in business for yourself?
Pretty much so. Eric and I have been friends for over 28 years, and one of my first memories was us working at the flea market selling our comic and book collections. I also grew up with a brother who is an entrepreneur on steroids.
He sold his company to Datatec at a very young age and became the youngest director at Datatec ever. He recently sold his company Cura for around $19m. I started my first business at the age of 20, coaching MDs and CEOs in the use of computers and applications.
What has been the biggest challenge getting your business and brands off the ground?
We headed into uncharted territory as no one else in South Africa had created, tried and tested solutions and platforms of this nature.
This became a bold adventure for us. Some matters presented massive challenges we saw suffocating numerous potential competitors from even getting off the ground while we were at work.
Would you describe South Africa as an ideal environment to start a tech business?
Yes! Especially in Cape Town where there is a very strong technology development and social networking environment, as well as venture capital companies which have a special interest in investing in technology companies. They don't call it the "Silicon Cape" for nothing."
What makes you get up in the morning?
Coffee. Really good coffee. I am a creative type and our business really throws creative solution and problem-solving situations at us every day. It's like problem-solving Nirvana. That, and I get to work with one of my closest friends building a very exciting business.
Any business person you admire, and why?
I admire quite a few business people. My brother, Avi Eyal, an extremely successful entrepreneur. I admire him for his amazing business acumen and problem-solving abilities coupled with an extremely ethical reputation.
I also admire my business partner Eric Edelstein for his incredible knowledge of internet marketing, achievements, persistence and belief in people and their abilities to the point of willingness to invest in them. Eric also shares an admirable trait with my brother: the ability to cut straight to the core of matter.
Where do you see your business going in the next few years, and what are going to be the biggest drivers of success?
Maybe a very big buy-out or listing on the stock exchange.
Our biggest drivers for success are that we have a deep understanding of what communities want, how they react to different stimuli and what technological and vertical solutions should be brought to bear coupled with the backing of a powerful team of creative, hungry entrepreneurs.
Ultimately, the solutions are systemic of the cause - the founders and their synergistic mindsets and methodologies.
- Fin24.com