crowdfunding conference Award, donation investment CrowdFundingmentors, Jobs act
http://www.crowdfundingplanning.com Contact us: http://goo.gl/1k1D1 Call: Phone: 877- 448-4968 Email: Contactus@CrowdFundingplanning.com mentors: http://goo….
Video Rating: 5 / 5
Crowd funding can also refer to the funding of a company by selling small
amounts of equity to many investors. This form of crowd funding has
recently received attention from policymakers in the United States with
direct mention in the JOBS Act; legislation that allows for a wider pool of
small investors with fewer restrictions. The Act was signed into law by
President Obama on April 5, 2012.
When we look at successful individuals, or companies that achieve market
share beyond their initial dreams and plans, you can quickly see that
Timing is Everything. This is even more true about CrowdFunding.
Angel investments bear extremely high risk and are usually subject to
dilution from future investment rounds. As such, they require a very high
return on investment. Because a large percentage of angel investments are
lost completely when early stage companies fail, professional angel
investors seek investments that have the potential to return at least 10 or
more times their original investment within 5 years, through a defined exit
strategy, such as plans for an initial public offering.
Crowdfunding is a collaborative effort of individuals to pool resources,
usually via the web, to support entrepreneurial, cause or creative projects
initiated by other people, businesses, and community groups. People
sometimes confuse crowdfunding with crowdsourcing – another form of
community engagement to outsource tasks. The distinction is crowdfunding
raises money from people for an idea or something tangible and
crowdsourcing pays money to people for an idea or something tangible.
Criticisms were levied against the House version of the bill as “gutting
regulations designed to safeguard investors”, legalizing boiler room
operations, “reliev[ing] businesses that are preparing to go public from
some of the most important auditing regulations that Congress passed after
the Enron debacle”, and “a terrible package of bills that would undo
essential investor protections, reduce market transparency and distort the
efficient allocation of capital”.