Massolution defines four categories of crowdfunding platforms (CFPs) Equity-based crowdfunding Lending-based crowdfunding Reward-based crowdfunding Donation-based crowdfunding Our survey respondents were asked more than 30 detailed questions relating to the participants on their platforms, the functionality of their platforms and their fundraising activities for the calendar years 2009, 2010 and 2011. Further datawas gathered via direct communications with 135 CFPs and significant secondary research. The survey was conducted under strict non-disclosure rules; hence all the data in this report is aggregated or averaged. Our research identified that nearly US$1.5B was raised by crowdfunding platforms globally in 2011. The participating CFPs represent
. . . → Read More: CROWDFUNDING INDUSTRY REPORT (ABRIDGED VERSION): Market Trends, Composition and Crowdfunding Platforms
|
||||||
|
For the past couple of decades, venture capitalists have had the upper hand. They’ve had the funding and, traditionally, they’ve held most of the power in the startup ecosystem. But, Fred Wilson, managing partner of Union Square Ventures (and beloved blogger), believes that balance of power is shifting (As noted in Stacey’s take on a similar notion advanced by the Kauffman Foundationearlier Tuesday.) And as it does, venture capitalists themselves must rethink their role. Speaking to a crowd of entrepreneurs at the Grind work space in New York this morning, Wilson said that since the mid-1990s institutional investors have poured $30 billion AngelList has become a popular way for new startups to raise seed funding. In some ways related to the opening up of investing via the JOBS Act, AngelList is designed to level the playing field for entrepreneurs seeking funding. The website enables any startup to raise funding by pitching to angel investors or requesting meetings, all online. Entrepreneurs in the past have needed a referral or connection to pitch a top angel. And for investors, they now have a more efficient way of meeting and learning about entrepreneurs and their startups. Investors also “follow” other investors, to see what deals they’re Similar topics at:  Angels, Finding Angels, Super Angels, Web/Micro Loans & Crowdfunding  Angellist, jobs act When the Jumpstart Our Business Startups (JOBS) Act passed recently, many columnists and bloggers began weighing in with varying opinions, and some conjecture that may have muddied the waters. As I’ve written before, thousands of us entrepreneurs will benefit from the law. This could become a very viable and exciting way for small companies to raise capital. But not yet. The Securities and Exchange Commission (SEC) has nine months to draw up the regulations. As regular readers know, I’ve been writing about crowdfunding to raise investment capital since February 2011. My dream was shattered almost immediately by my trusted attorney, Crowd funding enables entrepreneurs to raise money in relatively small amounts from large numbers of interested investors. In the sum, substantial amounts of money (as much as a million dollars) can be raised for each startup company. Recently, entrepreneurs in many countries have been soliciting investment through “crowd funding” websites designed specifically for fundraising purposes. But, in the US, only wealthy accredited investors* have been allowed by the Securities and Exchange Commission (SEC) to invest in entrepreneurs and their startup companies (without extensive disclosure of th The JOBS Act, signed into law last week, stands for “Jumpstart Our Business Startups.” So how will the bill directly impact small businesses and start-ups themselves? The Journal’s Angus Loten points to the bill’s support for “crowd-funding,” a way for small businesses to raise money. Under the bill, Loten writes: Start-ups can raise up to $1 million a year by pitching to thousands of small-dollar investors online with little disclosure beyond a rough business plan. (They can raise up to $2 million if they provide audited financial statements.) Read the transcript to see the chat session. The Act provides for a new category of a transactional exemption, ……., for transactions involving the offer or sale of securities provided the offering meets three conditions: 1)the aggregate amount sold to all investors is not more than $1,000,000.00, 2)the aggregate sold to any investor does not exceed the greater of $2,000.00 or 5% of the annual income or net worth of such investor (if either the annual income or the net worth of the investor is less than $100,000.00), and 10% of the annual income or net worth of such investor, not to exceed a maximum amount sold of $100,000.00 (if either the annual income or net worth of the investor is more than $100,000.00), and 3) the transaction is conducted through a broker or “funding portal” Crowdfunding promises to give some startups access to capital they wouldn’t have had otherwise, but it could set up unwary entrepreneurs for a headache. Crowdfunding is a way of raising capital that involves getting small amounts of money from a large number of investors. A new law, called the JOBS Act, changes the formerly donate-to-my-cause-for-a-tote-bag industry into a popular way for small companies to raise the cash in two ways: It allows businesses to raise money from investors in exchange for a piece of their company (equity) and it allows non-accredited investors (regular Joes and Janes like your neighbor and The Crowdfunding Accreditation for Platform Standards (CAPS) program is an initiative by Crowdsourcing.org to promote the adoption of best practices for the operation of crowdfunding platforms. Designed to protect both crowdfunders (people pledging or investing capital) and fundraisers (people raising capital), the CAPS program’s mission is to foster the sustainable growth of the crowdfunding industry to provide much needed capital for projects and initiatives, start-ups and small businesses. Supported by an advisory council of leading platform operators and industry experts As Obama signs the JOBS Act into law, crowdfunding becomes legal and companies get more flexibility in going public. Here’s the good and the bad. |
||||||
|
Copyright © 2012 TheStartup411 ™ - All Rights Reserved 47 queries. 0.455 seconds. |
||||||