Crowdfunding: Is Entrepreneurial Acceleration Headed Our Way?

By Peter Baron,

The more I look into crowdfunding, specifically the coming of equity crowdfunding, the more I’m intrigued by the democratization of capital infusions it should soon represent for entrepreneurs.
For those who are unfamiliar with it, “crowdfunding” refers to networks of individuals who pool their money through websites to support the efforts of individuals or organizations. Crowdfunding today covers a great deal of ground: disaster relief, art projects, civic projects and more. Congress legislated “equity crowdfunding” in 2012, and the Securities and Exchange Commission is in the process of writing the rules to coincide with the JOBS Act’s full implementation this year. The result will be the ability of startup companies to sell small equity portions to large numbers of investors.
Crowdfunding-SeedUps-200x125

And this may in a way return us to the roots of business origination. All businesses have historically begun with entrepreneurial undertakings, with someone getting an idea about a product or service that others need, and pursing its development as a means to earn a living. In simpler times, growth came from appealing to individuals.
For example, someone might be really good at baking bread and would set up a small operation with a modest purchase of an oven, flower and other supplies. The initial capacity might accommodate 20 loaves at a time, all sold for profit. By putting some of that profit back into the business to increase capacity – another oven and more ingredients – the baker could increase production to 40 loaves at a time. And so it would go, with the business steadily growing on the capital others were contributing, individual bread purchasers essentially funding the business.
Equity crowdfunding will in many ways be the modern version of that. The baker didn’t have to shop an idea to investors to get a major cash infusion in return for a substantial portion of the business, but rather took in money directly from multiple individuals. Equity crowdfunding is a similar approach to getting an idea off the ground. Investors put a little money in and metaphorically buy a loaf, allowing entrepreneurs to do what they’ve done throughout time: establish a business and fund growth by selling a product. It democratizes investing, with capital generated by entrepreneurs offering something to everyday individuals – an entirely new access to capital from people who will have entirely new access to equity.

Read more at http://www.business2community.com/startups/crowdfunding-entrepreneurial-acceleration-headed-way-0989623#sVwGDZsh7OJgKrHF.99

By Peter Baron,is principal of Carabiner Communications, where he acts as a senior-level consultant, offering advice to clients on such aspects as product positioning, lead generation and nurturing, digital marketing and how to leverage the latest trends. Through more than two decades of technology marketing and PR experience, Peter has the skills to recognize new opportunities and help clients prepare strategies accordingly. He has worked with companies across the technology ecosystem, spanning telecommunications, networking, healthcare technology, mobile computing and myriad software solutions. Peter received a bachelor’s degree in Journalism and PR from the University of Utah. Contact Peter at pbaron@carabinermktg.com.
Read more at http://www.business2community.com/author/peter-baron#U07gBKHRQYRjatLC.99s=”title” style=”color: #333333;”>By Peter Baron

Tags:

HEADLINE NEWS

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news [...]

NPRAfter Outcry, Crowdfunding Site Patreon Backs Off Plan To Raise ...NPRThe popular crowdfunding service Patreon has backed off plans to change its payment structure, after widespread, vocal and passionate opposition from creators and their fans. Last week, the site announced it woul [...]

TechCrunchHow hate speech crowdfunding outfit Hatreon crept back online ...TechCrunchIf you want to make a living creating white supremacist content, you're probably not going to do it via sites like Kickstarter and Patreon, which prohibit hate speech. Fortunately there's Ha [...]

EntrepreneurWhy Some Small Business Owners Are Turning to Crowdfunding to Save Their CompanyEntrepreneurMany owners of beloved local businesses, especially in pricier cities, have been forced to swallow their pride and appeal to their customers in times of crisis -- a process streamli [...]

CoinDeskKickstarter ICO? Don't Count On It Says Crowdfunding Leader ...CoinDeskThe company most widely associated with crowdfunding, Brooklyn-based Kickstarter, has no plans to get into the initial coin offering (ICO) business. Coming in response to the news yesterday that compet [...]

ForbesCrowdfunding Do's And Dont's From iFundWomen's Karen CahnForbesDuring our conversation, she was transparent in sharing that her first software company, VProud, failed because she “did everything backwards” and spent too much time trying to perfect the product. “Pe [...]

CryptoCoinsNewsCrowdfunding Giant Indiegogo Looks to Make ICOs MainstreamCryptoCoinsNewsCrowdfunding platform Indiegogo has a plan to help initial coin offerings (ICOs) break into the mainstream, even as the U.S. Securities and Exchange Commission (SEC) is ramping up its oversight of [...]

WRAL Tech WireBack story: How, why investor Mark Easley brought crowdfunding platform Localstake to NCWRAL Tech WireRESEARCH TRIANGLE PARK – Earlier this week, WRAL TechWire broke the news that Triangle investor and crowdfunding advocate Mark Easley was bringing Localstake, a crowdfun [...]

Crowdfunding via Customers: Is This The New Startup Capital?Customer ThinkWith more and more companies in a variety of sectors developing new crowdfunding campaigns, it makes sense to ask whether crowdfunding is likely to replace startup capital in the near future. Crowdfunding is qui [...]

TechCrunchFormer Gawker employees are crowdfunding an effort to buy Gawker.comTechCrunchWhile Univision acquired most of Gawker Media's sites last year (and renamed them as the Gizmodo Media Group), the deal didn't include Gawker itself. In fact, BuzzFeed reported last month [...]

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 |