Best crowdfunding for startups

Crowdfunding – Is it Right for Your Business?

crowdfunding imageHeard the buzz about crowdfunding but not sure how it can help you finance your business? Is crowdfunding even right for you?

Here’s some information and tips that will help explain crowdfunding concepts and how you can take advantage of them to fund your business.

What is crowdfunding?

Crowdfunding is a collective cooperation of people who network and pool their money and resources together, usually via the Inter­net, to support efforts initiated by other organizations. Unlike angel investments, in which an investor takes a large state in a small business, with crowdfunding, you can literally attract a “crowd” of people – each of whom takes a small stake in a business idea by contributing towards an online funding target. This spreads the risk among backers and creates a strong network of support for your business. If you offer equity as part of your package, your investors can also become ambassadors for your brand.

With the tough economic climate, crowdfunding has become a popular and alternative method of raising finance for a business, real estate investments, projects or ideas and has become popularized online by sites such as Kickstarter, Wefunder, crowdfunder and RockthePost.

Caron_Beesley's Profile PictureIMPORTANT: Large crowdfunding investments are currently limited to SEC-accredited investors. Change is coming, however, and soon the investors like you and I will be able to enter the crowdfunding market. Currently, the amount an un-accredited investor can invest is capped at 5-10 percent of your income. More on this below.

Crowdfunding to become a lot easier for small businesses

Following up on from my last point above, it will soon become a lot easier for small businesses to raise money online via crowdfunding thanks to the signing into law of the JOBS Act by President Obama in April 2012. However, the SEC is still in the rule-making process and is due to publish final regulations before non-SEC-accredited investors can start financing small businesses. Final rulings are expected this summer.

More analysis

by Aeurelius

No. 6 Spending $15 billion on a program that would hire construction workers to help rehabilitate and refurbishing hundreds of thousands of foreclosed homes and businesses
This is TEMPORARY JOBS!!! and why in the hell is tax payers footing the bill for foreclosed homes? Are you a retarded or what?
No. 7 Creating the National Infrastructure Bank (capitalized with $10 billion), originally proposed in 2007, to help fund infrastructure via private and public capita
This does jack shit to create jobs. It is a slush fund.
No. 8 Creating a nationwide, interoperable wireless network for public safety, while expanding accessibility to high-speed wireless services
Private sector does internet better

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Nasce "Funditaly", piattaforma di crowdfunding cooperativo  — Verbania Notizie
Nasce "Funditaly", piattaforma di crowdfunding cooperativo.

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