Does Investment Crowdfunding Really Work? How Can You Make Crowdfunding Work for You

From angel investing to crowd funding, everyone wants to raise money for their new business adventure and it’s quite understandable. It is so tough to get the necessary funding to get your small business off the ground and for most they have a great idea but can’t make it work as their funding is poor. That is why more and more are choosing to look into crowdfunding and it’s certainly a stunning idea. However, does crowdfunding really work to get proper investment and if so, how can it work for you?

Venture Capital Can Be Raised With Crowdfunding

Home-based businesses as well as thousands of potential entrepreneurs want to raise some capital to get their ideas off the ground and it isn’t as difficult as you would think. Crowdfunding has really taken off in recent years and it’s all down to how effective can be. So, will it be possible to get the investment you need? Well, yes it is but it isn’t just as simple as you would think, there needs to be several things done on your part in order to gain the trust of the investors and to raise the capital. Investment crowdfunding is a wonderful idea and it really is something that works for you as well.

You Must Make a Strong Case for Investment

If you want to attract the investors and actually help them part with their money, you have to make a case as to why they should invest in you. Now, these investors are regular people, not millionaires and usually invest only twenty or thirty dollars at a time (they can choose to invest whatever they like) and you have to entice hundreds. This isn’t impossible but you have to make your advertisement standout from the rest and it’s important to get your investors. It doesn’t matter if you want to look into angel investing or another investment route, you have to make it clear what your goals are and what you want to achieve. Click here !

Offer Investors something they’ll appreciate

Investors want to see something in return, they are not going to get a share of the profits but they want to know they’ve done their bit. It wouldn’t be a bad idea to offer maybe a thank-you in the form of a gift such as a t-shirt with your logo on it or something similar. This is actually something which many will appreciate and it shouldn’t cost too much either. These free-gifts can also help entice others to invest with you too. Venture capital isn’t impossible to raise but you have to give something back.

Crowdfunding Can Work If You’re Willing to Do the Hard Work

When it comes to crowdfunding, a lot of people aren’t overly convinced this will offer them enough money to get their business started. However, there is the real potential for this to work and it can even go into buying some of the most necessary pieces of equipment to get your business …

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The Rise of Investment Crowdfunding

So tempting when you think of crowdfunding thinking purely in terms of Kickstarter; the project where candidates only a freebie or two from the startups they’re backing and the buzz from seeing a project they believe in making it to market. In the recent years, there has been a crowd-investment platforms groundswell particular with the passing of Jobs Acts 2012.  The rise in platforms enabling investors opportunity o club together and invest in buy-to-let and even commercial properties. The investors in some platforms are able to support all from legal battles to university education.

The common thing in all of these is that they offer citizens a chance to bunch together with other people to support a project expected to yield the good rate of return.

Crowd-investing

It’s one of the interesting platforms, although its remains at the margin of a much larger crowd-investing movement. As revealed by CrowdExpert there several platforms offering investors the chance if backing interesting companies using the approach.

The platforms generated $2.1 billion startups investing in 2015 and have shown considerable growth in 2016.  Crowdfunding has been labeled potentially the most disruptive of all the new modes of finance and World Bank predicting that crowdfunding investment increase to $96 billion by 2025.

The questions to review are;

  • What is equity or investment crowdfunding?
  • The difference between investment crowdfunding and the rewards-based crowdfunding?
  • How does investment crowdfunding fit your fundraising strategy?
  • What is the JOBS Act?
  • What are some examples of investment crowdfunding successes?
  • Can anyone invest in companies on Crowdfunder?
  • Does Crowdfunder comply with the securities regulations?

What of equal funding?

The growth is supported by leveling effects crowdfunding has on who can attract investment, the study showing women can do better when it comes to crowdfunding. The success is largely attributed to the fact that women are better at telling a story to persuade investor for the backing of the project.

The road to success

The significant of appealing to the heart plus head is reinforced by a study done. The results showed things such as good audio-visual support use is critical to a successful win fund-raising via the crowd. Experience and the previous record of the success proved crucial success markers.

Understand the sources are important as the crowdfunded projects have limited access to market data than typical private equity investors. For private equity investors, you have to follow a rigorous due diligence process to access the quality of startup help, thus crowdfunding backers rely more on the information on the campaign web page.

Building trust in the market

The crowd based market are fairer, to achieve the growth levels predicted, they will need to ensure high trust levels both in the quality of fundraiser and in the due diligence or simply worthiness of the lender. It’s argued that the hint of distrust arising in the industry placing the firm brake on growth levels, especially during the early stages with a legal status of the industry is yet to be fully formed.

The …

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Angel Investing Vs Crowdfunding: How to Raise Money for Your Startup?

Angel investment and crowdfunding have both become popular methods to raise money for start up businesses and it isn’t hard to see why. Today, there are sometimes limited options available when it comes to injecting money into a new business because let’s face it; there are not many people who are willing to take a risk. However crowdfunding and angel investing could provide most with a new and exciting way to raise cash for their start up.

What Is Angel Investing?

Angel investments are simple. The people who offer angel investments are usually individuals with business experience and usually have their own company. The typical investors have a high net-worth and are happy to lend a hand to newer businesses. However, in exchange for the investment money they will take a stake of the business. Basically you get an investment and they take a few of the company’s shares. This means they have a stake in the business. Angel investing can be one individual or a group of individuals looking to invest.

Is Angel Investment Risky?

This isn’t a loan so that when someone invests money into the business they are not going to demand repayment. In a sense it isn’t overly risky because the investors have an idea of what they are getting into. This is technically an investment for them and as most will know investments is always a risk. However, for business owners and those looking to get their company off the ground, this can be a good option to consider. Of course, while you might not be the one who takes the risks, there is still an expectation to succeed and sometimes investing companies or individuals are hands-on.

Raising Cash with Crowdfunding

Crowdfunding is a lot different from angel investments. Anyone can raise money through the use of crowdfunding websites and platforms but there are some restrictions. Usually businesses can’t raise more than one million in a single year and the fees can be a little problematic. However, this can be great for those who don’t want a partnership and don’t want to have that added pressure of succeeding within a year. Investors can be anyone from all walks of life and when they visit crowdfunding websites and see an idea they like the look of, they invest. Find out more here.

Which Is Best?

To be honest, both Angel investing and crowdfunding are impressive. They offer different things which can in fact be great. It doesn’t make the decision harder but rather less complicated. As most will understand, every business is different in terms of what they need to run and how they operate. Some businesses will benefit from looking at angel investments while others will benefit from crowdfunding. It comes down to the individual business.

Make an Informed Decision

This is not going to be an easy decision to make because you want to raise money for your start up business but want the method which is suitable. Now, if you don’t want to …

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Crowdfunding for the Real Estate Sector: A Viable Option?

Since long Real Estate has remained a dream for the poor to be looked upon as an opportunity to invest in. When we talk about the rich, however, it must be mentioned that although there are ample opportunities for them to park their spare cash into, right from stocks and securities to trading into bonds and what not, real estate has been one such option that has succeeded in remaining elusive even to them. Land has a lot of riders tied to its name! Read more http://crowdexpert.com/

Traditionally one had to exclusively depend upon their personal social network to zero in on really fruitful opportunity when it came to investing in real estate. Even if one managed to find one such prospect the real problem was that only a handful would be lucky enough to be able to shell out $50,000 to $100,000 at once to grab it.

But now since the crowdfunding game has been generous enough to the real estate industry many can convert their dreams to reality. It’s pretty easy how it works, using an online platform one can pool in their money with other big or small investors to fund a project. Crowdfunding is a viable option for investments in real estate or even to raise the needed capital to make a project, reality! The amount of benefits it brings along are priceless.

Due to its online presence, geography is just distance on paper. One can invest their money sitting in their house in New York investing into a project in San Francisco, California.

Crowdfunding for the Real Estate Sector A Viable Option

Now you don’t need to have heaps of cash or a record of having earned more than a fortune for the last couple years. You can be a player for as little as $1000 and find your way up.

There is little to no paperwork involved, moreover there are websites which work as online platform for investment and they maintain your investment track record right within the website itself. Click here to read more info about investment platform.

It works as a vantage point from where you can see the entire globe! Due to it’s online presence you can now move away from just your vicinity and look for really lucrative options anywhere in the world.

As technology gets more and more interweaved with the real estate sector we will continue to see rising opportunities come to life, opportunities which once never existed. In an industry where numerous new businesses are esteemed by the cash that is started through investment, business visionaries have gotten to be dependent on development. Truth be told, it’s a “development at any cost” mindset that regularly assumes control in numerous commercial enterprises.

The issue is, for some businesses; stand out beyond any doubt fire approach to ensure unchecked development at bad quality. Value and land crowdfunding isn’t not at all like a considerable measure of different commercial ventures in that regard. Due tirelessness regularly implies turning down most potential speculation thoughts in light of the fact that …

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The Pros and Cons of Crowdfunding

Crowdfunding is one of the most lucrative ways for startups to fund their projects, which is why it is gaining a lot of popularity these days. It especially helps novice entrepreneurs in getting the preliminary capital needed to get their business idea moving and might even lead it to the fruition stage. However, that doesn’t mean one must blindly trust any funding platform as anything that seems beneficial definitely has certain risks attached to it. One must act wise enough to identify the risks of association which finds its way in with such opportunities. Below we list down some of the pros and cons of crowdfunding:

PRO: Leverage

You choose how to put up your business thought for sale to the public. You get to dictate your way forward. Similarly you have control over how to market your idea and how creatively and innovatively you want it to go.

PRO: Resources

Tracking potential investors, VCs and others could be cumbersome and takes a lot of time to materialize. On top of that you first need to meet them in person, present your idea and then will there be any progress. However, when it comes to online crowdfunding, it might be a little difficult at first but once your pitch is in place you can expect results to follow soon. Read more http://www.newyorker.com/magazine/2015/05/18/tomorrows-advance-man

PRO: Customer Base

Offline hunting for potential customers especially for thriving businesses can prove to be a task. Given that you do not know people and they don’t know you, but if your business is set to be funded by an online platform, your going gets easier as you already have a group of people who believe not just in you but your product. The word of mouth proves to be the best channel to market your products especially when it comes from people who are already influenced by your offering. Click here to read more info about customer base.

The Pros and Cons of Crowdfunding

CON: Complexity

When the idea is simple enough to digest an online setting can work wonders for your project, but if your business plan has a lot of complicated and intricate details or research involved then you may end up converting the initial excitement with which investors take up the seats, to worry with which they vacate the hall.

CON: Free Hand

Soon as you get the funding you may find yourself in position wherein it may be impossible for you to make fundamental changes to your project idea, if you so decide. You may even find it difficult when you get hit by delays as this may jeopardize your reputation with the investors.

CON: Approach

If your idea is set to benefit end consumers you stand a better chance of getting funds as it is easier to empathize with such ideas and the benefits it will derive to the end consumers. However if your idea is targeted at businesses your odds are lesser.…

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Equity Crowdfunding: Set to Change the World

Evolution doesn’t necessarily mean that we leap through our present in a blink of any eye and soon look back upon our past, which looked like the future just a few years ago. Two totally different ideas targeted to different audiences and appealing to different segments can come to compete with each other and only a few far sighted people can foresee that. Read more http://www.nytimes.com/2015/10/31/business/dealbook/sec-gives-small-investors-access-to-equity-crowdfunding.html?_r=0

To make you understand better I would give you an example of the airline industry. It targets two types of audience:

I P eople who travel from A to B for business activities
II P eople who travel from A to B for non-business/Leisure activities

When video conferencing arrived in the world, little did we know that it would soon bring down the business that airline industry has garnered over the years targeting the people who travel around the world for business. Now they can just connect with each other through their laptop screens and the purpose is served, the need is fulfilled.

Similarly, I think equity crowdfunding is a game changer. It is unlike any other means of crowdfunding we have seen in the past, be it angel investments or venture capital funding. It will not just create more of what the above two bring to the table but it will show us the third dimension. It will give the common man the power to use their money by aiming it to the right opportunity.

Equity Crowdfunding Set to Change the World

SEC Approves Title III of JOBS Act, Equity Crowdfunding with Non-Accredited

With SECs green signal to the title III of the JOBS ACT the game is set to change and we will see its effects in the next 3 to 5 years. It empowers routine investors for the first time in the last eight years to put their capital into new startups (early stage companies) which in turn will route huge sums of resources to the small businesses on the rise. Back in 80s when you bought shares on the stock exchange you had to pay a big fat amount as broking fees, but then came along websites like TD Ameritrade which gave straight access to trading. We are witnessing the same change today. Click here to read more info about Equity Crowdfunding.

There has been a lot happening contemplating this move. The smartest of the lot of institutional investors are already ploughing their money into business portals and platforms which will support equity-based crowdfunding. The institutional investors are not the only ones there are many other big media houses, social media companies and other businesses who are procuring equity mass-funded infrastructure.

If we date back to the age when man molded brass and copper coins that was when the world realized for the first time ever that there can be trade other than barter as well. It marked as one of the defining shifts up the rung for humanity on the pyramid of trade and commerce. Approval to non-accredited investors is set out to do just that.…

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