StartUp Beat

E.Factor, based in New York City, exists in the online business networking market (think LinkedIn, Ryze, etc.), and was founded in 2007 by Adrie Reinders, Roeland Reinders and Marion Freijsen.  The three had previously collaborated on two books about entrepreneurship before starting the site, which differentiates itself with its focus on entrepreneurs.  StartUp Beat recently did a Q&A with co-founder Adrie Reinders to find out more about the company.

SUB: What primary need does E.Factor address?

Adrie Reinders: Actually, it’s four needs that all entrepreneurs have in their lives—build your business; find funding; save costs; and expert advice and information.

SUB: What exactly can entrepreneurs do on the site?

Adrie Reinders: Entrepreneurs can find funding, get expert advice, network, live chat, post classified ads, post multimedia ads, sell goods and services, attend events, and have access to resources and tools that one needs to help grow their business.

SUB: How do you make money?

Adrie Reinders: From premium memberships, sponsorships and our own Satellites that allow us to bring groups to the platform based on a white-label basis.

SUB: Please explain what the Satellites are, and how they work.

Adrie Reinders: The Satellites are white label community networks that allow the content and information to be controlled by the network owner.  For example Cambridge University’s Judge Business School has a satellite (http://cambridge.efactor.com) which it uses to communicate with students and alumni and allow them to connect in a community sense.

SUB: How did the idea for the company come about?

Adrie Reinders: The E.Factor is a unique global community for entrepreneurs, by entrepreneurs.  Roeland Reinders, Marion Freijsen and myself, all serial entrepreneurs, founded the company after the success of our jointly-authored book on networking, “The N Factor.”  We began writing a second entitled “E.Factor”—the topic being entrepreneurship, and as a way of gathering insight and feedback and sharing information, we set up a web site.  The concept of sharing information amongst entrepreneurs proved to be so interesting that we decided to broaden the scope and use of the site to entrepreneurs globally.  It proved to be the beginning of something wonderful—the E.Factor.

The E.Factor is a virtual economy and a network comprised of one factor—growing businesses.  By giving entrepreneurs and investors tools both online and offline, our members can connect, promote and find funding all in one location.

In addition to being an online platform, the E.Factor holds 100 events per annum, in keeping with its founders’ belief that business relationships are built on face-to-face contact and trust.  The E.Factor team believes in sharing knowledge and helping others, and recognizes that as a group you are stronger than on your own.  We believe all entrepreneurs have some unique piece of knowledge or an extraordinary skill with which they can help other entrepreneurs.  Bringing that together is what we call the E.Factor—that extra something, which is almost indefinable but which can make all the difference.

SUB: How do customers use the service?

Adrie Reinders: Both online and, of course, by attending events and coming to the E.Factor lounges where they can meet other E.Factor members.

SUB: Who do you consider your competitor(s)?

Adrie Reinders: No one out there that is covering all aspects of what we do, from online to offline, with the different services.  There are no real competitors that encompass all of the services that the E.Factor provides to its members.

SUB: How has the company been financed to this point?  Who are your investors?

Adrie Reinders: 25 percent of equity sold to friends and family, other then that self-funded.

SUB: How many customers do you have, and what markets do you target?

Adrie Reinders: 50 thousand members in 3 months, considered the fastest growing social network out there.  Our targets are entrepreneurs, small businesses and investors.

SUB: How much do you charge for E.Factor memberships?

Adrie Reinders: We offer “Business Class” memberships for $15 per month, and a premium “First Class” membership for $50 per month.