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US Crowdfunding in 2014

Posted by on May 4th, 2015

Crowdfunding is the practice of raising money for a project or venture from a large number of people utilizing an Internet website or platform.  Funding from each individual can be quite small, $10 or less, although some projects have much higher minimums.  Projects include films, musical recordings, new companies, products, inventions, personal causes and many others.

Since the

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Crowd-Funding Success Usually Brings New Challenges

Many entrepreneurs seems to be convinced that the “crowd” of regular people using the Internet will somehow solve their startup funding needs, when they sense a lack of interest from accredited investors. Professionals maintain that there is plenty of money and equity for qualified startups, and funding marginal startups via any source will only make more people unhappy.

Well-known crowd-funding

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Is it legal to have a crowd-funding site that gives equity as reward?

In the United States, equity-based crowdfunding will not be legal until January, 2013 at the earliest, when the SEC issues its rules regarding the process. It will then be permitted, provided that it is done in strict compliance with those SEC rules, and the provisions of the JOBS Act, which was signed by President Obama earlier this year.

*original post

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Are there any crowd funding options for tech start-ups not tied to just supporting projects?

The U.S. Securities and Exchange Commission has very strict rules about who can raise investment funds for privately held businesses, and how they are allowed to go about doing it.  At the moment, this is primarily limited to raising money from very rich people who qualify as Accredited Investors, and with whom you already have a pre-existing relationship.

What should you know in order to start a crowdfunding startup in US?

Equity-based crowdfunding (that is, providing regular people with the opportunity to purchase stock in private companies) will not be legal in the US until the first quarter of 2013 at the earliest. At that time, any company planning to operate as a “funding portal” will have to comply with an extensive set of rules and regulations established by the U.S. Securities and

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Which angel investors are interested in crowdfunding startups?

Since equity crowdfunding under the recently passed JOBS Act will not be legal until some point next year, there is currently a great deal of smoke, although not necessarily a lot of fire, around new entrants into the space.  But taking a look at some operating US-based companies that currently come to mind when thinking about the space (Kickstarter, Indiegogo, AngelList, Gust, CircleUp),

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Which equity based crowdfunding startups hold the most promise / have the highest growth potential at this point?

Since no equity crowdfunding platforms under the JOBS Act will be able to even begin operations for another six to nine months, it is impossible for any of them to be “the market leader” at this point…even though every single one of them—as in a drawing room farce—is claiming the title.

And since the three logical big players (KickStarter, Gust

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Don’t Be Fooled By All The Hype For Crowd Funding

The new hot topic for entrepreneurs the last couple of years is crowd funding, which is anticipated to at least supplement, if not replace, the slow and mysterious process of current Angel and venture capital investors. The problem is that crowd funding means something different to everyone, and even I have been confused by the different ways the term gets

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What is the most viable model for equity based crowdfunding?

One of the following two:

Revenue-backed, interest-bearing notes with a kicker multiple The funds go into the company as a loan, and get repaid with interest by distributing a fixed percentage of gross revenues (say, 5%) among all the note holders. Once the base+interest has been returned to the investors, the company continues to pay out a percentage of revenues

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Will the most successful crowdfunding portals be restricted to accredited investors?

This is an interesting question, and one to which no one really has an answer yet. To some extent it will depend on what the SEC decides to do with the regulations surrounding the whole subject, which they have until the end of the year to write.

My personal guess is that the early stage funding world will likely trifurcate

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