Is Equity Crowdfunding an Oxymoron

oxymoronWhile people wait for the SEC to implement rules for equity crowdfunding authorized under the JOBS Act of 2012, many companies are racing forward with project based crowding. Research just published in an Amazon Kindle book “Is Equity Crowdfunding an Oxymoron” indicated that entrepreneurs with some prior track record are much better off raising capital via rewards based crowdfunding than trying to attract venture capital. Besides not giving up ownership the campaigners can raise the money more rapidly than going the venture capital route.

Crowdfunders with the most success are developers who already have a product on the market. The Veronica Mars campaign on KickStarter raised $5.7 million from a fan base estimated at 2 million. Many venture capital firms also require a company to have some prior sales before considering funding a venture. In fairness to VCs, they provide a lot more than just money to the ventures they back, and the book examines these services.

Equity crowdfunding is already underway in the UK. Early results at Crowcube.com indicate that the average amount raised is about a quarter of a million dollars. The top business categories for companies that have been funded are; retail, food and drink, and professional services. If the UK experience is an indication of what’s to come in the US, companies funded by equity crowdfunding will be local service businesses rather than companies with major technology innovations. Only 7 percent of the companies funded by Crowdcube were classified as technology companies

If you are an entrepreneur seeking funding for a new venture or an investor searching for new profitable opportunities you should read this book. Crowdfunding is being used to raise money for everything from the latest video game to renewable energy projects. The four types of crowdfunding and key components of a crowdfunding campaign are described. The most important factor to success in crowdfunding is uncovered.

While some people wait for the SEC to set rules for equity crowdfunding authorized under the JOBS Act other people are moving forward with project, based crowdfunding. Project crowdfunding is proving to be a preferred alternative to traditional equity financing for many ventures. However, crowdfunding is not for everyone. The funding process used by venture capital firms and angel investors is compared to crowdfunding to determine which funding alternative is best for a new venture.

Equity crowdfunding is legal in several countries outside the US. The operations of the largest crowdfunding platform, Crowdcube, are described and a profile of the companies funded to date is provided. Finally, the book explores the possibility that crowdfunding may be replacing the void in business finance created by commercial bankers who have all but abandoned small business.

You can find the book at:

http://www.amazon.com/s/ref=nb_sb_noss?url=search-alias%3Dstripbooks&field-keywords=Is+Equity+Crowdfunding+an+Oxymoron&rh=n%3A283155%2Ck%3AIs+Equity+Crowdfunding+an+Oxymoron

[Source: Thomas Miezejeski @ CrowdfundingPr.Org]

http://www.crowdfundingpr.org/a-comprehensive-look-at-equity-crowdfunding/

HEADLINE NEWS

U.S. News & World ReportNo Cash for Hate, Say Mainstream Crowdfunding FirmsU.S. News & World ReportThe block on mainstream crowdfunding is just the latest blow to far-right activists operating online. In the last 24 hours, neo-Nazi website the Daily Stormer had its domain regi [...]

ForbesWhat Works In Equity Crowdfunding -- Insights From ResearchForbesAs we have recently celebrated the fourth anniversary of the signing of the JOBS Act into law, it is a good time to take stock of the effect that the legislature had on equity crowdfunding in the United States. It [...]

Technical.ly BaltimoreArbit took to crowdfunding to seek out investorsTechnical.ly BaltimoreThe Baltimore-based social polling company is seeking to raise a maximum of $425,000 through equity crowdfunding, a funding instrument that was first officially made available last year with re [...]

Crain's Cleveland Business'Smaller' gifts can go long way for Clinic's crowdfunding platformCrain's Cleveland BusinessFor an institution accustomed to securing multimillion-dollar donations, Cleveland Clinic's latest fundraising effort has some relatively [...]

ForbesMoney Makes Small Businesses Go Round: Ensuring Access For AllForbesIn 2008, a new form of financing — rewards-based crowdfunding — premiered. With money raised on crowdfunding platforms like Indiegogo and Kickstarter, startups and companies with a new product idea connect direc [...]

Manchester Evening NewsManchester video company Juke Media supports crowdfunding campaignsManchester Evening NewsNuuk Digital have raised over £12m creating and designing crowdfunding campaigns in just 18 months, including campaigns for Smacircle – an e-bike that fits in your backpack [...]

EE TimesEngineer Looks to Crowdfunding to Stoke Kids' Interest in ElectronicsEE TimesProtoBricks launched on the Indiegogo crowdfunding platform Tuesday (Aug. 15). The goal is to raise $100,000 within the next 40 days to bring the product to the shipping stage, expected to begin [...]

Indiana pioneers crowdfunding community projectsWTHRA downtown Greensburg mural made possible by community donations, Patronicity.com, the Indiana Housing and Community Development Authority and other local organizations, as seen on Aug. 3, 2017. (Main Street Greensburg Photo via ... [...]

CNETKickstarter alternatives: Choosing a crowdfunding platform - CNETCNETCNET@Work: Before launching a crowdfunding campaign, it's worth exploring the differences between Kickstarter and its competitors.and more » [...]

Global Crowdfunding Market 2017-2021 - Market to Decline at a CAGR of 16.96% - Research and MarketsBusiness Wire (press release)Global Crowdfunding Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market [...]

CFB Finance

Marketwired

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

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 |