Month: October 2016

Crowdfunding for Education

9 Websites for Successful Crowdfunding for Education

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Education is considered as the easy way to success in the 21st century. A graduate degree is just considered useless. It is the minimum requirement today. Unless you are Mark Zuckerberg of course! At least a post grad or a doctorate is required for a successful academic career. But the sad reality is that as the need for education is increasing, the price of education is increasing. It is almost impossible for a common student to get a degree from a good college. Here is where crowdfunding for education comes to your rescue.

Crowdfunding for education is the best way out for a regular student. Because not all students can grab a scholarship, right? Here are a few websites for successful crowdfunding for education.

#Adopt-A-Classroom

Adopt-A-Classroom is a unique website for crowdfunding for education. With this website, the donors can choose any classroom to donate to. Or if they don’t have a specific preference, the website itself chooses a class for the donor.

#ZeroBound

ZeroBound works on voluntary donations for education loans, etc. Different volunteers, organizations, etc. donate for crowdfunding for education. Also, the website has nominal fees. They 2.9% processing fee and $0.30 transaction fee on all transactions. Additionally, they even charge 5% service fee from the successful projects. And 8% service fee if the project does not reach the goal.

#Indiegogo

Indiegogo is an international crowdfunding website. It mainly works with reward-based and donation crowdfunding campaigns. Additionally, they even support crowdfunding for education. The fees range from 4-9% of the amount. Also, the charge some 3% processing fees and $25 wire fee for non-US campaigns.

#CrowdfundEdu

CrowdfundEdu is a website for crowdfunding for education. It was launched just this year. Yet, its success has made it feature on ABC,CBS, and Fox News. The site supports all types of education crowdfunding projects. Whether a student needs funds for tuition fees or admission or anything else. Students can use this website as a platform.

#ScholarMatch

ScholarMatch has a slightly different concept for crowdfunding for education. The donors collaborate with various organizational institutes. Then they filter the ambitious and hardworking students. And provide scholarships for their education.

#DonorsChoose

This website was founded in 2000 when crowdfunding was not even a popular term. This website allows public school teachers to post their fund requirements. And their donors like Oprah Winfrey and Stephen Colbert make sure to fulfill their requirements.

#YouCaring

YouCaring is a website for crowdfunding for education. This website does not charge any processing fees at all. However, you only need to pay the credit card processing fees. This website completely works on donations.

#Piglt

Piglt is a website for crowdfunding for education which allows individuals to raise funds for their education. The website allows individuals to post projects. Their various donors spare some amount for these projects. If the project becomes successful, the website charges a fee of 5%. Otherwise, it charges a service fee of 8%.

#IncitED

IncitED is a website just for crowdfunding for education. The creators believe that non-specific websites have no future. Thus, they have dedicated themselves to educational crowdfunding.

indian crowdfunding sites

Top 10 Indian Crowdfunding Sites 2016

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Crowdfunding is not a new name for the world. But for India, it is a newer concept. Crowdfunding is in its growing years in India. And it is gaining good popularity with time. Though India doesn’t have that much of experience with crowdfunding. Yet, there are a number of Indian Crowdfunding Sites which are even functioning globally. Here are a few most successful Indian Crowdfunding Sites.

#Ketto

Ketto is globally one of the most popular Indian Crowdfunding sites. The projects on the website focus on social causes, sports, environment, Women empowerment, Child Education, etc. The website has successfully raised more than Rs.1,00,00,000 (crore). Additionally, names like Google Grant, DASRA Social Impacts, CAP India, etc. are associated with it.

#Indiegogo

Indiegogo is one of the globally functional Indian Crowdfunding sites. This website works for non-profit causes. And it has successfully helped 15 million people from 223 different countries. Also, the website allows projects for music, education, design, films,etc.

#Rang De

Rang De is a peer-to-peer micro-lending platform. It helps rural entrepreneurs get low-cost loans with the help of various funders. A noteworthy point about Rang De is that 93% of the borrowers are women. Rang De is one of the non-profit Indian Crowdfunding sites. It has till date attracted 9,699 social investors. And these investors have made social investments worth approximately USD 7 million.

#WishBerry

WishBerry is one of the Indian Crowdfunding Sites which focuses on projects with creative niches. They have projects from the categories ranging from performing arts and music to technology and film. Though they cover a huge range of topics. Yet they have a success ratio of 70% which is fairly good.

#FuelADream

FuelADream is one of the Indian Crowdfunding Sites which supports reward-based crowdfunding. Though the company mainly focuses on projects with a creative niche. Yet, they also allow projects related to charity and social causes on their website.

#ImpactGuru

ImpactGuru is one of those Indian crowdfunding sites which supports all the 3 types of crowdfunding – non-profit, reward-based, and equity. It helps startups, NGOs, corporates, etc. to raise funds for their respective projects. ImpactGuru has successfully helped more than a 100 causes from 6 different countries.

#TheHotStart

TheHotStart is one of the newer Indian Crowdfunding Sites. Though it was just launched in 2014. Yet, it has shown some good success in the two years. It mainly deals with filming and artistic ventures. Additionally, it allows people to interact with each other. And helps them connect for a successful ally.

#Start51

Start51 is one of the Indian Crowdfunding Sites working at an institutional level. They have their own initiative program, “Crowdfunding Initiator”. They help creative ventures like dance, art, music, fashion, etc. to raise funds.

#FundDreamsIndia

FundDreamsIndia is not an independent website. In fact, it is a part of the digital web-business group Bluebiz Ventures Pvt. Ltd. However, it is not a large-scale website. But it helps people raise funds for personal or social causes and even life events.

#DreamWallets

DreamWallets is one of the Indian Crowdfunding sites which facilitates reward-based crowdfunding. Projects targeting a specific group of people are launched. And all the backers are provided with some rewards in a non-monetary way.

 

european crowdfunding sites

Top 10 European Crowdfunding Sites 2016

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In the past decade, crowdfunding has attained a lot of maturity in Europe. It has grown both quantitatively and qualitatively. More and more people have started using crowdfunding for a successful business. And more and more platforms are emerging to cater to the needs of these businesses. This increasing number of European Crowdfunding sites is beneficial for businesses. Since this is allowing them to choose a platform suitable for them. Here are the top 10 European Crowdfunding sites you can choose from.

#Funding Circle

FundingCircle is one of the European Crowdfunding Sites from the UK. When it comes to peer-to-peer lending in crowdfunding, FundingCircle is the undoubted leader. It simply connects growing businesses and potential investors. And thus, ensures profits for both. Additionally, backers have invested £285 million through FundingCircle.

#Crowdcube

CrowdCube is one of the European Crowdfunding Sites also from the UK. This website is world’s first equity crowdfunding platform. And it is the largest platform in Britain. However, this website only allows sophisticated and large-scale investors.

#FundedByMe

FundedByMe is one of the European Crowdfunding Sites functioning from Sweden. It is one of the first crowdfunding platforms which offers reward-based and equity crowdfunding. It helps the Europen entrepreneurs to receive cross-border investments.

#KissKissBankBank

KissKissBankBank is one of the European Crowdfunding Sites from France. This website is an internationally leading platform. Though a leading name, but this website only handles limited projects. However, all these projects are extremely creative, innovative and different from the crowd.

#Boomerang 

Boomerang is one of the European Crowdfunding Sites which has its base in Denmark. It is the largest platform for reward-based crowdfunding. And it helps artists, associations, and creative networks to raise funds from backers. Though there are many reward-based crowdfunding platforms. But the “collaboration through crowdfunding” feature of Boomerang makes it stand out.

#Derev

Derev is one of the European Crowdfunding Sites from Italy. It is an interactive platform for crowdfunding. Entrepreneurs can not only raise funds but also get feedback, suggestions, etc. from the backers or interested individuals.

#Companisto

Companisto is a crowdfunding website from Germany. Though the minimum amount to be invested in projects from Companisto is just €5. But its large network has successfully funded more than 30 startups. And investments worth  €6 million have been made through it.

#Wemakeit.ch

Wemakeit.ch is one of the European Crowdfunding Sites  functioning in Switzerland. It is a crowdfunding platform which helps creative industries to get funded. Non-profit organizations are also welcomed by the website.

#Goteo

Goteo is one of the European Crowdfunding Sites from Spain. Though the website supports reward-based crowdfunding. But it mainly deals with the projects meant for social good. Thus, it connects backers and projects which focus on social good like free knowledge, open code, etc.

#Symbid

Symbid is one of the Netherlands-based European Crowdfunding Sites.  The website systematically forms a cooperative bundle of all the shareholders. Thus, the company has to just deal with this bundle rather than individual investors. Additionally, this website allows backers to invest as little as €20 in some fast-growing start-ups.

 

tech crowdfunding

4 Commendable Tech Crowdfunding Projects

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It is not unknown that technology is one of the fields that has got a helping hand in crowdfunding. Tech crowdfunding has been quite popular recently. And people have been using it to the utmost. Tech crowdfunding has helped a lot of fantastic dreams come true. And the world has proudly witnessed their success. Here are a few amazing tech crowdfunding projects that have received global appreciation. Some of these were successful, while some others were not.

#Phree Smart Pen

We are the smart generation. We don’t need a pen and paper to note things down. All we do is take out our phones and type it out. But oh wait! Does that really happen? Well more often than not, it doesn’t. We forget what we were supposed to write. And the end.

That is where the Phree Smart Pen comes to help. It is a pen using which you can note down anything on any surface of the world. And the Pen would store it in its database. Cool stuff right?

OTM Technology, the creator firm, released a tech crowdfunding project for it on Kickstarter on May 12, 2015. They campaign ran for 45 days. And it managed to collect a whopping $1,065,761.

#HueRay Bicycle Grips

Cycles don’t have any headlights. This makes them more vulnerable to accidents. Quite unfair, isn’t it? The company HueRay! took this thought a bit too further. And they launched light emitting bicycle grips. These grips help you have some light around at night. They are USB-rechargeable and can also be removed when not needed.

HueRay launched  a tech crowdfunding project for these bicycle grips on Kickstarter on 29 May 2015. HueRay had pledged to raise some $90,000 for this tech crowdfunding project. However, they could just collect $25,685 in the set time. Though, it was not a successful campaign. But the idea of the project did receive a lot of appreciation.

#MIITO Eco-Friendly Kettle Alternative

Another amazing tech crowdfunding project was released by a company called MIITO. They released a glass-topped induction base meant for teacups or teapots, with a silicon-coated steel heating rod which is immersed in the liquid to be boiled.

The company claims that it is an “energy saver”. Since when you want just a glass of water, you can boil it within a minute with the MIITO kettle. While a regular kettle would take almost three minutes to heat up. This makes it an energy saver and an overall better choice.

The concept of the MIITO Kettle was well received. Also, the company managed to raise a lot with tech crowdfunding. MIITO launched their campaign on Kickstarter on 12 May 2015 for a period of 32 days. They had pledged a goal of €150,000. But since the concept was extremely well received, the company managed to gather a whopping €818,098.

#Flip! Intuitive Smart Stylus

Flip is an intuitive stylus which needs no batteries, no Bluetooth. It has a lot of features like “flip to erase” and  “palm rejection”. In short, it gives you the features of the stylus without the complexity.

This idea is greatly appreciated. Its campaign is currently running on Kickstarter. The company had pledged a goal of $7,500. With 22 days to go to the deadline, the tech crowdfunding project has already raised $69,061.

Crowdfunding and Social Media

Crowdfunding and Social Media – The Bond of Profit

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Crowdfunding is a name no one from the business industry needs an introduction to. While social media? It has simply become an important part of our life. While a layman can see no connection between the two.

But an entrepreneur can clearly see the relationship between crowdfunding and social media. In today’s internet era, this relationship can be very useful. If used efficiently, crowdfunding and social media can together create hundreds of success stories. First of all, let us understand the relationship between the two.

Crowdfunding and Social Media

Crowdfunding means raising money with the help of crowds for specific purposes. Though the definition seems quite simple. But its application is equally difficult. It is really a task to convince people to give out some money. Even in the case of equity crowdfunding. You have to convince them that your company is trustworthy. And only then you can see some results.

Here is when social media comes to your rescue. Social media is a platform where you can communicate with thousands of people at a time. One tweet, one status update, one picture! And your message can reach to thousands of people. And out of these thousands, even if a few hundreds get convinced with your campaign then too, it is a great number. Here are a few tips on how you can use crowdfunding and social media together.

How to use Crowdfunding and Social Media together?

If you use social media for your crowdfunding campaign, you can actually make it a huge success.

  • Find the right platform – Social media is vast. There are a lot of platforms of it. But when you want to use crowdfunding and social media together, you have to choose the perfect platform. Before starting the campaign, analyze the different platforms. Choose the one which is most used by your target audience.
  • Use a campaign hashtag – The best way to make people aware of your campaign is to use a campaign hashtag. Choose something catchy and make it trend.
  • Content Marketing – Social media is the best place to use content marketing. But when using crowdfunding and social media together, you have to take care of something. Make sure that your content is a proper blend of useful content and information about your company. It should be in a ratio of some 75:25.
  • Let your weeks have a theme – Instead of randomly posting any content on your social media, assign themes to different weeks. And then post content following just that theme.

How NOT to use Crowdfunding and Social Media together?

Though social media marketing is beneficial for crowdfunding campaigns. But there are some things you should never do when using crowdfunding and social media together.

  • Never ever ask for money straight away. Let your followers first know you before. Let them trust you first before you ask them to be your backers.
  • Choose who you are connecting with. Everyone on social media is not your potential investor. If you connect just with wrong people, then your purpose of using crowdfunding and social media fails miserably.
crowdfunding failures

4 Infamous Stories of Crowdfunding Failures

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Crowdfunding is a boon as we all say. It has helped many businesses flourish unexpectedly. It has helped many people grow and many many dreams come true. However, one thing which no one ever mentions while discussing the topic is, crowdfunding failures. Yes. Though there are many people out there who would tell you the benefits, tips and tricks, etc.

But no one will mention the crowdfunding failures. People sometimes think that it is disheartening or demotivating. However, in reality it is not true. You don’t need to get demotivated. Instead, you can learn from the mistakes those campaigns made. And thus, ensure that you do not repeat any such thing. Here are the most infamous stories of crowdfunding failures. Have a look at them. And you will learn a lot!

#Laser Razor

Laser Razor is a product which was launched by a company named Skarp. It has been one of the biggest crowdfunding failures. The company approached Kickstarter to launch their campaign. However, Kickstarter turned it down. Because the company did not even have a proper working prototype for the product.

Thereafter, the company approached Indigogo and relaunched its campaign. The “innovative” Laser Razor idea, managed to collect some $442,000. However, the company has already delayed the shipment dates. The reason behind this is probably that they did not have a functional prototype. And their device can hardly cut a hair or two.

#Crystal Wash 2.0

If you ask how much money it raised? Well, then it is not a failure in that sense. It managed to raise $268,000. But this is regarded amongst crowdfunding failures because it shows how companies like Kickstarter too can be careless about the quality of products they have.

This product is something really bizarre. It says that it can clean clothes by shrinking the water molecules crystal. This statement in itself is the most meaningless thing ever. Backers are complaining because they are not receiving the product. And the company is not even replying to them.

#Annihilator Customizable Car

Crowdfunding failures are quite common in the business world. Many campaigns either fail to impress or fail to deliver. However, this customizable car crowdfunding campaign was something out of the world. This campaign asked to raise a million dollars for their “car”. However, the theory of the car they portrayed was something too good to be true.

Most reports claim that this was some stupid joke. But it is quite bad for the people who did trust it and even fund it.

#Zano

Kickstarter has more often than not launched some crowdfunding failures. However, the Torquing Group’s Zano was the most embarrassing of them all. The Zano was meant to be a flying little baby drone. Though the idea was really successful and appreciated. It even managed to raise $3.4 million. But when the customers actually tried to make that thing fly, it never did.

The company declared itself bankrupt. And ended up being one of the biggest crowdfunding failures ever.

Crowdfunding failures in this industry are quite common. However, it doesn’t mean that crowdfunding is a bad idea. All it means is that you need to be more careful.

crowdfunding regulations

American Equity Crowdfunding Regulations 2016

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Equity Crowdfunding is probably the best friend of growing businesses. It is that innovative idea which has changed the fates of many entrepreneurs. With its increasing popularity, there are some negative things that are being added to the industry. The number of cases frauds and misuse of equity crowdfunding is increasing.

This it the reason why the American Government is constantly making efforts to formulate effective crowdfunding regulations. In order to make these crowdfunding regulations perfect, the government is periodically modifying the rules. Though the rules are quite effective. But there are some changes that still need to be implemented. However, here are the most recent American Equity Crowdfunding Regulations.

Crowdfunding Regulations for Companies

#A company can raise up to $1 Million in a time period of 12 months.

According to the latest crowdfunding regulations, a company can raise a sum total of $1 million in a year. No company can raise funds exceeding this limit. However, if a company wishes to raise more than a million, it does have an option. The company has to consider A+ mini IPO for the same.

#All the companies availing crowdfunding, have to make the following disclosures 
  • Legitimate current financial status of the company.
  • The target amount for crowdfunding, the deadline decided to reach the target, the parameters used to set the target and whether or not the company will accept funding after reaching the set target.
  • A detailed description of the company and details of how the company plans to use the funds raised.

Crowdfunding Regulations for crowdfunding platforms

#The crowdfunding platforms have to follow some updated crowdfunding regulations
  • All the crowdfunding platforms have to provide some education material to their clients. This should explain the process for investing on the given platform; Investment limits; Security measures taken for the benefit of the investors.
  • Additionally, all the platforms have to take certain measures to prevent the cases of frauds on their platform.
  • Also, the platform has to provide a communication channel allowing the discussion of offerings. And also provide the mentioned disclosures to all the investors.
  • The platform has to comply with maintenance and transmission of the funds. Also, it has to coordinate all the completions, cancellations, and confirmations.
  •  The platform even has to provide a notice to the investors post the investment commitments.
  • Also, a platform must accept investments from an investor only after the investor has .

Crowdfunding Regulations for investors

Apart from the companies and the platforms, the new crowdfunding regulations also limit the investments made.

  • In a period of 12 months, an investor can make crowdfunding offerings up to;
  1. If their net worth or annual income is more than $100,00 then they can invest the greater of:

– $2,000 or

– 5% of the lesser of their net worth or annual income.

2. If the annual income and net worth both are equal to $100,00 then they can invest 10% of the lesser of the two.

  • In 12 months, an investor cannot make offerings worth more than $100,000.

The updated American Equity Crowdfunding Regulations are made with many efforts. However, they do have some minuses for the companies. But they are beneficial for everyone from a larger perspective.

Crowdfunding equity

Crowdfunding Equity vs. Debt – Which is the Best Choice?

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Crowdfunding has become quite a craze these days. Social media, newspapers, etc. are focusing quite a lot on it. Off lately, people have even started understanding what this term means. But there is still a lot of confusion going on. To properly understand this, one must know the types of crowdfunding – Crowdfunding Equity, Crowdfunding Debt, Reward-based Crowdfunding and Donation-based Crowdfunding.

  • Crowdfunding Equity – Equity based crowdfunding works on the theory – People invest some money in a company, and in return they are given some stake in the company.
  • Crowdfunding Debt – In debt-based crowdfunding, the lender provides money to the company. While they receive a debt instrument that pays interest return.
  • Reward-based Crowdfunding – In reward-based crowdfunding, the backers get some rewards for investing in specific projects.
  • Donation-based crowdfunding – Donation-based crowdfunding simply functions like other donations where people donate some money for a cause.

While the last two are quite simple, crowdfunding equity and crowdfunding debt are a bit confusing. There are no regulations of the last two. But there are some rules which have to be followed from crowdfunding equity and Crowdfunding Debt.

These two different types are meant for different purposes. Though both of them are really good. But if used at proper places, they can be quite a lot fruitful. Let us understand both of them in detail. And even know which one is better for you.

Crowdfunding Equity

As mentioned above, in crowdfunding equity, backers get some shares of the company. Crowdfunding equity is a great option for the businesses who are unsure about the rate of success of their business. Their business might yield a profit in the longer run. But it might not be possible for them to fund the regular interests.

The good part about crowdfunding equity is that even middle-class people can now participate in this. Previously, only wealthy individuals could benefit from equity investments. But with the advent of equity-based crowdfunding, this problem has solved.

The minus point of equity crowdfunding is that the company gives away some stake to the backers. Sometimes young companies end up giving too much of stakes in an attempt to raise funds. This creates a disturbed and imbalanced situation wherein the company cannot function properly.

Crowdfunding Debt

Debt based crowdfunding is suitable for a company which is less stable in terms of revenue growth. As in the case of crowdfunding equity, they are not sure that their business would be fruitful.  Thus, even the backers might not be willing to fund them if they opt for crowdfunding equity.

Debt based crowdfunding doesn’t provide the security like equity crowdfunding. In crowdfunding equity, the backers are securing the goodwill of the company. Whereas in debt based crowdfunding, the lenders are more directed towards their payments.

This type of crowdfunding is more suitable for the people who have some assets to be mortgaged. And also have the adequate cash-flow to finance the interests.

Crowdfunding equity and crowdfunding debt, both are great ways of fund-raising. The best one for you depends on the type of company you own and the requirements of your company.

Crowdfunding Forum

Learn from a Crowdfunding Forum – The Best 5

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School Teachers always say that discuss the topic you are learning. You will understand it better. Well, to be honest, this fact is actually very true. Discussions with peers can actually give you a better insight of the topic. And this fact is true even for vast topics like crowdfunding.

But where can you find such discussions going on? The answer is crowdfunding forum. Yes! A crowdfunding forum is a place where you get to interact with entrepreneurs like you. A healthy discussion with them can indeed teach you a lot. And you can also know about the recent trends in crowdfunding. Here are some great crowdfunding forums. They will help you learn a lot for sure.

#BiggerPockets – Real Estate Crowdfunding Forum

BiggerPockets is a Real Estate Crowdfunding Forum. The best part of this forum is that it is an active one. Many people and companies are members of this one. Thus, you get a lot of knowledgeable crowds to interact with. You can join this online community for free.

All you have to do is enter your name, e-mail address, and password. The forums on this website are divided into various categories for simpler access. You can even read some success stories, member blogs, etc. on this website. And you can even share a discussion on Facebook, Twitter, and LinkedIn.

#Crowdfunding Forum

Crowdfunding Forum is a great discussion platform for all kinds of crowdfunding. The forums on this website have tags with them like creative projects, general crowdfunding questions, etc. You can register on this website for free using your e-mail address. You can even register by simply using your Facebook account.

This website even gives you an option of subscribing to their newsletter. All you have to do is subscribe for free using your e-mail address. And you will receive a weekly newsletter about the Crowdfunding Industry.

#Reddit Crowdfunding Forum

The Reddit Crowdfunding Forum is a place where you can discuss various topics like crowdfunding techniques, trends, etc. The good part about this website is that you don’t have to go through some irritating crowdfunding ads. Any ad posted on the website is marked as a spam. On the discussions of this forum, apart from some regular members, moderators are also present. These moderators give a direction to the discussion if it is going the wrong way. One can even contact the moderators for any questions or queries.

#KickstarterForum

KickstarterForum is another crowdfunding forum for a healthy discussion. As the site suggests, it is NOT affiliated with Kickstarter, Inc. A plus of this website is that you can subscribe for some weekly tips by them for free. The website is even very active. There are discussions going on on the website almost always. Many members actively participate in such discussions and guide the others.

#CrowdFundBeat – Canadian Equity Crowdfunding Forum

The CFB Crowdfunding Forum is a full-fledged discussion portal. It has many different options like Canadian Directory, Articles, Crowdfunding News, etc. The website has a beautiful design. And it is carefully divided into categories. Though the name suggests Canadian Crowdfunding. But the website even has information about crowdfunding in UK and US.

Crowdfunding Rules

Crowdfunding Rules for 2016 and their Impacts

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The modern day crowdfunding began in 1976. Dr. Mohommad Yunus started it in Bangladesh. The year 1997 say the first successful crowdfunding project. This makes it quite an old concept. But until the recent times, crowdfunding rules have not been given much importance.Since there were just a few people involved in it, there wasn’t much chaos.

But after it has gained some good popularity, there have been some frauds, issues, etc. arising. Thus, the government decided to lay out some basic crowdfunding rules. Since the system is quite new, the rules are being changed frequently. The recent crowdfunding rules and their impacts are as follows.

Since there were just a few people involved in it, there wasn’t much chaos. But after it has gained some good popularity, there have been some frauds, issues, etc. arising. Thus, the government decided to lay out some basic crowdfunding rules. Since the system is quite new, the rules are being changed frequently. The recent crowdfunding rules and their impacts are as follows.

#According to the JOBS Act, a company can raise up to $1 million with the Title III of equity crowdfunding.

The people involved with crowdfunding in any and every manner were hoping that the new crowdfunding rules would allow a campaign to raise $5 million. But the laws ended up to fix the limit at $1 million. However, there is an alternative for people wishing to raise money more than $1 million. They can go for Regulation A+ mini – IPO.

#The law regarding limit of investment says:

The law limits all the investors to (a) the greater one of $2,000 or 5% of their annual income or total worth, only if either the investor’s annual income or the total worth is lesser than $100k and (b) 10 % of the lesser of investor’s annual income or net worth, only if the investor’s annual income and total worth  are equal to or greater than $100k.

In either case, a person can invest only a sum of $100,000 a year. The crowdfunding rules have limited the investors to a certain amount. This can prove to be negative for entrepreneurs.

#’All-or-nothing’ Law.

According to the new crowdfunding rules, any business using equity crowdfunding has to follow the ‘All-or-nothing’ model. This means that the company has to fix a target before starting the campaign. If they are not able to reach that target, then they cannot keep any of the money collected. Even the costs borne for the campaign, have to be taken from the pocket of the entrepreneur. This law would ensure that people set a realistic and achievable goal for their campaign.

#The Law informing about the details to be disclosed. 

For every crowdfunding campaign, the entrepreneurs have to disclose some information to the people as well as to the Securities and Exchange Commission (SEC). The new crowdfunding rules have given a set of information that has to be disclosed mandatorily.

It includes the price of the securities, the method for determining the price, the target amount, the deadline set to reach the target and whether or not the company will accept investments in excess of the target. The companies even have to disclose the company’s financial condition, a description of the business and the specific use of proceeds from the offering, the information about officers and directors and owners of 20 percent or more of the company and annual financial statements.