each passing generation, new forms of fundraising come and go. From private
equity in the beginning of the 20th century, to venture capitalism in the
1970s, methods are continuing to evolve. One that is newer to the scene -
crowdfunding - is likely here to stay.
the June issue of Entrepreneur magazine, author Michelle
Goodman highlights the efforts of three entrepreneurs you really need to thank.
Sherwood Neiss, Jason Best, and Zak Cassidy-Dorian are the new heroes of the
startup capital universe. Thanks to them, Congress legalized crowdfunding
investment, passing the JOBS
Act (Jumpstart Our
Business Startups) in 2011, thus allowing small businesses to raise up to $1
million through crowdfunding platforms. Although it has yet to be formalized by
the SEC, expect big changes and endless possibilities in the year ahead.
to Wikipedia, crowdfunding is the collective effort of individuals who network
and pool their money, usually via the Internet, to support efforts initiated by
other people or organizations.
how big is the industry? According to Massolution's
2013 Crowdfunding Industry Report - huge. Crowdfunders raised 2.7 billion
dollars globally in 2012 and that figure is expected to rise to 5.1 billion in
2013. One million campaigns were funded. Why not make yours the next one?
are the some of the major players, and the pros and cons of each one.
Limited ability to brand your fundraising page
pay: 4% for reaching your project; 9% if you don't
hundreds of new crowdfunding platforms being created each year, it's important
to do your due diligence and find out which one of these best suits your needs.
We encourage you to contact us today to discuss ways we can help bridge
the gap between your small business and the ever-evolving world of technology.