What is Crowdfunding?
Crowdfund Better defines crowdfunding as:
“a transformational capital-raising process empowered by technology that turns the trust and goodwill of your network into funds to start or grow your business by allowing a large number of people to share small amounts of their social, creative and financial capital.”
The Crowdfunding Landscape includes three hybrids of traditional funding
personal causes & 501(c)(3) nonprofits
securities: debt, revenue-share & equity
- Regulation Crowdfunding (Title III) – raises up to $1,070,000
- Reg D (506c) – no limits
- Reg A+ – raises up to $50M
A new type of funding for businesses & creative ideas
contains elements of pre-sales, early adopter fan support, and friends/family funding
Who can use crowdfunding?
any stage of business: idea, startup, growth, established
any size of business – solo entrepreneur to Fortune 500
any kind of business – B2C, B2B, online, bricks & mortar, local, international
low barriers to entry – do not need a fully-developed business plan, a fully-formed idea or cash in the bank
few limits on how much can be raised – from hundreds to millions of dollars
How do I prepare?
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