While the regulators in North America doddle along trying to come up with ways to protect investors from themselves (it’s now been almost two years since the JOBS Act became law), here, in a nutshell, are 10 reasons why equity crowdfunding will become very popular among businesses and investors alike.
- Less expensive – Small and medium size enterprises will have access to a much greater pool of funding at a fraction of the cost of the traditional and the often time and expense consuming prospectus requirements Continue reading
Raising capital for a business venture, no matter how you approach it, can be a challenging endeavor. Crowdfunding is a relatively new medium for attracting investors but although only in its infancy, it is fast becoming the way to raise capital for new or growing business ventures. The perception has been however, that pitching your campaign to the market through a crowdfunding portal is a foolproof way of raising the funds you need to move forward. And since you suddenly have access to millions of potential investors, why wouldn’t you think that?
Placing all your trust in a crowdfunding portal is not a recommended strategy. In fact, it’s not a strategy at all. To make the most of crowdfunding as an avenue to raising the capital you need, avoid these common mistakes:
Last Saturday, February 15th, Kickstarter, revealed that it had been hacked. While the hackers did not obtain users’ credit card information, it was announced that “accessed information included usernames, email addresses, mailing addresses, phone numbers and encrypted passwords.”
What does this mean for the crowdfunding industry?
What does this mean for crowdfunding?
Crowdfunding statistics are eye-popping. In less than 5 years, Kickstarter raised more than $1 Billion in pledges from more than 5 million contributors; that’s just one portal of over 600 portals worldwide! As an industry, crowdfunding has grown 1000% in 5 years and is predicted to grow 92% in 2014. But those numbers are primarily comprised of rewards-based crowdfunding models.
So how does equity crowdfunding fit in?
“More gold has been mined from the thoughts of men than has been taken from the ground.”
Napoleon Hill – Think and Grow Rich
We are at a crossroads in North America. The issue is not innovation or what some would call intellectual capital. There is more innovation going on now than at any other time in human history. We have more access to more resources then any of us dreamed possible just a few decades ago. And it’s getting more robust by the day. We don’t lack talent, and we don’t lack ambition or aspiration. We have the ability to collaborate on a massive scale. To ferret out talent, wherever it may be. What our intellectual capital is starving for is working capital. Continue reading
On the opposite palm, your essay might end in a demand actions centered on styles of cause and effect you might have identified. The reason and effect essay may possibly end in various ways. Remember the length necessities of the article. Inside this section you’ll discover samples of essays owned by different article sorts and etiquette of data formatting. Continue reading
The door to the vault of North American equity crowdfunding has cracked open thanks to the prescient actions of the Financial and Consumer Affairs Authority (FCAA) of the province of Saskatchewan. While various discussions are taking place between securities regulators across North America, FCAA’s securities division has taken a bold step forward by outlining a proposal that could benefit small business start-ups as early as this fall. Continue reading
Unlike massive corporations such as Microsoft, Daimler AG, or The Coca-Cola Company, which can afford to fund extensive market research before they rollout a new product or venture into an unknown market, small companies often do not have the financial resources to do this. While large companies are likely to continue spending millions on traditional market research and development, crowdfunding platforms offer smaller players a persuasive alternative.
Crowdfunding websites offer small and medium-sized companies the opportunity to raise capital Continue reading