Crowdfunding is filling the funding void for early-stage companies

By Judd Hollas, founder and chief inventor, EquityNet
posted on

A little more than a year ago, President Obama signed the Jumpstart Our Business Startups (JOBS) Act into law. The JOBS Act was intended to increase access to capital for the innovative companies that produce the majority of employment growth and are otherwise starved for investment capital. These early-stage startups do not have access to traditional bank loans, and venture capitalists disproportionally fund growth-stage, high-tech ventures, leaving otherwise potentially lucrative and promising ideas out in the cold.

New data published by the crowdfunding platform I founded, EquityNet, shows that equity crowdfunding is already aiding the vast business community that was previously underserved by the traditional private equity community (VC firms and Angel investors). Based on an analysis of more than 1,000 companies that have used the EquityNet platform, some very interesting findings include: …

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Equity Crowdfunding: Next Generation of Angel Investors Is Not Sorry to Disrupt

By Victoria Silchenko, Founder & CEO, Metropole Capital Group
published on 6 May 2013

Nikola Tesla wrote once, “The present is theirs; the future, for which I really worked, is mine.” I can see this being quoted by any supporter of equity based crowdfunding (or crowdinvesting) — an innovative online tool that would give you a legitimate right to own a stake in a company you choose to invest in. Just like angels investors do.

Now, if you think you can invest too, join the club and have a nice … fight.

There are several equity-based crowdfunding portals here in the U.S. that are already operational such as AngelList, The FundersClub, EarlyShares or RealtyMogul. But since the private investors in the U.S. must fit an accredited investor profile (Rules 501, 505 and 506 of Regulation D) – there is only 1 percent of the population that is allowed to utilize such an option. …

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