Neil Young’s PonoMusic crowdfunding again, this time offering equity

By Stuart Dredge, Musician Neil Young’s new venture PonoMusic raised $6.2m on crowdfunding website Kickstarter earlier in 2014. Now it’s turning to the online crowd again, this time offering stakes in the company.

Crowdfunder-Featured-Pono-Music-600x366

PonoMusic, whose online store selling high-resolution music downloads and a device to play them on will launch later this year, hopes to raise at least $2.5m on the Crowdfunder site.

A minimum investment of $5,000 will secure a small stake in the company, which is valuing itself at $50m.

The new campaign was officially launched today, although it was launched quietly at the start of August. More than $1.4m has already been pledged, with the campaign due to end on 1 September.

“We are already seeing that this is a growing trend, where companies who successfully run Kickstarter campaigns then want to give those backers a chance to invest through an equity crowdfunding campaign,” Crowdfunder chief executive Chance Barnett told The Guardian.

“This opens up a much bigger pool of capital for the company and also allows the people that are most passionate about the company – backers – the opportunity to invest.”

Barnett suggested that equity crowdfunding will help PonoMusic avoid the criticism faced by fellow Kickstartee Oculus VR, when it announced that it was being bought by Facebook earlier this year.

“Oculus sold to Facebook for $2bn after raising millions via Kickstarter. Those who backed Oculus never got the opportunity to invest, and there was a significant backlash when it was sold,” said Barnett. “Pono isn’t making that mistake with the music community.”

Young launched PonoMusic’s Kickstarter campaign in March in a keynote speech at the SXSW conference in Austin. The company hit its $800,000 goal within hours, and by the time the campaign closed in April, it was the third most successful Kickstarter ever.

More than 15,000 people pledged enough to pre-order the PonoPlayer device, with the first units due to ship in the final quarter of 2014 – by which time the company’s downloads store will also have launched in the UK, US and Canada.

Young co-founded PonoMusic, but in July he also became its chief executive, replacing previous CEO John Hamm.

http://www.theguardian.com/technology/2014/aug/13/neil-young-ponomusic-crowdfunding-equity

HEADLINE NEWS

Telegraph.co.ukThe biggest crowdfunding failuresTelegraph.co.ukThe popularity of equity crowdfunding has exploded in the UK, with platforms such as Crowdcube and Seedrs having raised hundreds of millions from investors wanting to buy a slice of an early stage business. But such invest [...]

VentureBeatHow crowdfunding will transform inner citiesVentureBeatIt's been only six months since Regulation Crowdfunding was legalized, and it's already proving to be highly successful funding source for new businesses. 50 percent of companies that have closed on their fina [...]

Israel's Insulog launches crowdfunding campaign for smart insulin ...FierceBiotechInsulog launched a crowdfunding campaign for a connected insulin tracker for diabetics who use insulin pens.and more » [...]

ForbesThree Tips For Chinese Startups Launching In The U.S. Market Via CrowdfundingForbesEntering international markets has always been challenging, but some Asia-based companies have a found a surprising new strategy: crowdfunding. Three of the largest crowdfunding campaigns this sum [...]

Crowdfunding: A Welcome Resource For ResearchersUtah Public RadioCrowdfunding is a term you have probably heard recently. The idea is to solicit a large number of small to medium donations in order to fund some kind of project or product development, and there are many online platform [...]

wwlp.comMaking sure you're giving to trustworthy crowdfunding effortswwlp.comKNOXVILLE (WATE) – There are more than a thousand GoFundMe and other crowdfunding sites to help people who lost everything in the Gatlinburg wildfires. How do you know you're giving to someone who r [...]

SprudgeRaw Material Are Crowdfunding A Coffee Mill In ColombiaSprudgeThis is not a call-out, it's just a fact, and I include myself among the accused. If you live in a city and like going to coffee bars, chances are you spend more time thinking about what's happening inside [...]

ForbesHow Asia Is Adopting Crowdfunding From The WestForbesEntrepreneurs of the Kickstarter crowdfunding platform make a demonstration with a picture of football player Luis Figo during the Web Summit at Parque das Nacoes in Lisbon on November 8, 2016. PATRICIA DE MELO MOREIRA/AFP/Get [...]

The IndependentThe Supreme Court Brexit case only happened because of crowdfunding – and you won't have heard of the people ...The IndependentWhen you volunteer in a legal aid clinic, you see how many people aren't able to access justice because of a lack of funds. Crowdfund [...]

Cosmopolitan.com4 Women Who Prove You Don't Need to Be Rich To Start Your Own BusinessCosmopolitan.com“It's a ton of work, but the wonderful and challenging part of crowdfunding is that there's no barrier to entry,” she says. “It's open to everyone.” Brown views he [...]

CFB Finance

Marketwired

  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

CrowdFund Beat Media

WATCH: Crowdfunding Securities Lawyers & RegA+ Boot Camp ln.is/www.youtube.co…

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |