The Good, the Bad & Excellent of CrowdFunding

CFB News Desk, Crowd funding: Can this overcome the funding challenge? August 18, 2014 By, IKENNA OBI, The major challenge for every average entrepreneur is securing funds to finance a business idea. The banks are reluctant to give loans; possibly because they are afraid the loans may become homing pigeons. Family, relatives, friends think the ideas are not worth their money. And you don’t have enough to even set the business idea in motion. Frustration sets in and the idea dies. This experience is common and proves that absence of funding is largely responsible for the dearth of entrepreneurs. goodbadreviews In recent years, crowd funding seems to be gaining traction as a credible solution to the challenge of funding for start-up ideas. What is it all about? Are there any demerits or challenges with this funding mechanism? Start-Up Digest sought for clarifications. Read and be informed Crowd funding is asking a crowd of people to donate a defined amount of money for a specific cause or project in exchange for various rewards. There are three general categories crowd funding can fall under: Equity, Donation, and Debt. Equity-based crowd funding is asking a crowd to donate to your business or project in exchange for equity. Donation-based crowd funding is asking a crowd to donate to your project in exchange for tangible, non-monetary rewards such as an ecard, t-shirt, pre-released CD, or the finished product. Debt-based crowdfunding is asking a crowd to donate to your business or business project in exchange for financial return and/or interest at a future date. The Good •Crowdfunding is useful for a variety of opportunities, whether fundraising for disaster-relief, creative projects, creating a salable product, or creating a start-up. •Crowdfunding platforms allow you to market your project, generate interest, and receive funds. •Crowdfunding backers can provide useful feedback about your project. •Once you get a solid base of support, there is no limit to the amount of projects you can fund. The Bad •Crowdfunding your project exposes your ideas to potential copycats. •Crowdfunding platforms may limit the amount of funds you can receive. •Crowdfunding regulations and taxation can be difficult to work with. The Excellent •Crowdfunding is not limited to certain kind of project, there is no discrimination! Only great ideas! •Crowdfunding can be fast, efficient, and effective if done right. •There can be little risk involved compared to other business ventures. •The more creativity and fun you have, the more likely you’ll get funded.

Tags: , , ,


ForbesHow Crowdfunding Can Supercharge Your Campaign In 2016ForbesThey say that there are about 7.45 billion people living in this world right now. Imagine that if you could get each of these seven-and-a-half billion people to contribute one cent to your project, well, you know what I [...]

How Crowdfunding Has Changed the Startup GameSingularity HubCrowdfunding has become a multi-billion-dollar industry, funneling millions of dollars into thousands of projects. Technology in particular is one of the leading categories on popular fundraising platforms like Kickstarter an [...]

The GuardianCrowdfunding: the new buzzword for academics needing research moneyThe GuardianArchaeologist Dr David Petts, from Durham University, has also used crowdfunding, raising almost £25,000 to fund a project on Lindisfarne, off the Northumberland coast. The dig, in June, led to [...]

Crowdfund InsiderWhen It Comes to Retail Crowdfunding, SAFEty FirstCrowdfund InsiderOn September 22nd, Crowdfund Insider published a post summarizing the arguments presented in our new essay entitled “Crowdfunding and the Not-So-Safe SAFE“ (forthcoming in Virginia Law Review Online). [...]

CNNMoneyDorothy's fading red slippers saved by $300000 in crowdfundingCNNMoneyThe ruby red slippers worn by Judy Garland in the beloved 1939 film "The Wizard of Oz" are set to undergo a major conservation effort following a successful crowdfunding campaign. The Smithson [...]

Airbitz, BitPay, and Wefunder leverage bitcoin and new US ...Brave New CoinEquity crowdfunding platform, Wefunder, recently started accepting bitcoin. On the same day, popular bitcoin mobile wallet provider Airbitz announced the ...and more » [...]

BloombergCouples Desperate For Children Turn to Crowdfunding FertilityBloombergCrowdfunding has become a popular mechanism for many couples who can't afford the high costs of IVF, or adoption and surrogacy. “It's not an easy thing to share publicly,” says Crystal Barrett, 33 [...]

Equities.comEntrepreneurship in the Crowdfunding EraEquities.comBrandon Adams & Greg Rollett are the co-hosts of Ambitious Adventures: Reality TV for Young Entrepreneurs, so they've learned a thing or two about how to start a business. Here, Rollett and Adams talk entrepreneu [...]

Kiplinger Personal FinanceRaise Money for Personal Bills on Crowdfunding SitesKiplinger Personal FinanceWhile crowdfunding is often associated with business start-ups, many people are finding it a fruitful way to raise money for personal needs. Sites such as YouCaring, GoGetFunding, G [...]

AZCentral.comTiny companies lure investors under Arizona crowdfunding lawAZCentral.comInvestors who make bets under the state's one-year-old crowdfunding law certainly have the potential to get in on the ground floor, but they must be patient and might not receive any returns. Th [...]

CFB Finance

Press Release

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 |