Tag: Crowdfunding for Startups

crowdfunding 2016

Crowdfunding 2016 – What to Expect?

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Introduction to Crowdfunding

Almost five years ago, crowdfunding online was a concept in its early adoption stage wherein it reported to about a size of $880 Million in 2010. Soon it picked up its pace and grew to a value of almost $16 Billion in 2014 with an expected figure of over $34 Billion by the end of 2015. Crowdfunding as a phenomena has been growing drastically giving an opportunity to new companies and startups to not just raise capital but showcase their product prototypes and convey the right message across to their target audience.

Taking the growth spree into mind, Crowdfunding 2016 aims to be standing at an industry of about more than $65 Billion which aims at capturing a plethora of market share when compared to VC.

Crowdfunding 2016 goes head-to-head against VC 2016

As per the market statistics, it has been noted that while Venture Capital grows at an average rate of almost $10 Billion to $15 Billion over a year, crowdfunding has been at a rampant growth rate of almost double year-on-year. Although, equity crowdfunding can be related to Venture Capital and it won’t be wrong to say that VC is a part or type of crowdfunding but Crowdfunding as a concept offers much more options for individuals or companies to raise capital using donations, rewards and other schemes. It is also a matter of fact that when we look at Crowdfunding 2016, scalability is very important as the Crowdfunding platforms are open to scalability depending on their structure and model whereas on the other hand Venture Capitalists cannot scale which puts them behind the concept of crowdfunding.

Platforms play a key role in Crowdfunding 2016

Over a period of time, various platforms like Kickstarter, MyEfunder, Indiegogo, Crowdfunder etc. have emerged as the strong backbone of the crowdfunding industry. It is believed that these portal will ensure more and more ideas to become a part of Crowdfunding 2016. These platforms enable the interested parties to:

  • Reach directly to their target audience
  • Showcase ideas and products at mass scale
  • Help generate funds from target audience
  • Get mentorship support from industry leaders

Crowdfunding 2016 impacted by New Regulations

As with every other upcoming concept happens, new regulations are being formulated around Crowdfunding 2016 in order to ensure investor security as well as transparency by regulation authorities around the world. This empowers the equity investors and will also open newer avenues for the startups in order to raise money from anyone in Crowdfunding 2016.

Conclusion

Eventually, as we see an industry which was originally VC dominant is being completely taken over by Crowdfunding and it will make easier and accessible capital raising for startups from all kinds of industrial backgrounds, more lucrative in Crowdfunding 2016. Also, investors from all over the world would want to be a part of the Crowdfunding 2016 with the levels of growth and opportunity in picture.

Share your opinion on how Crowdfunding 2016 would shape up as the year proceeds.

Crowdfunding

Crowdfunding – The need of the hour for Entrepreneurs

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With more and more alternative ideas for financing projects, entrepreneurship is scaling new heights. Crowdfunding is one such alternative scheme for raising funds for indigenous projects, in fact it is termed as one of the best available option in the market. This article gives a brief introduction to the concept of crowdfunding followed by why crowdfunding should be a preferred way to finance projects?

Crowdfunding – A Quick Introduction

Crowdfunding- as evident from its name,means funds from a crowd or a group of people. These people fund the projects in some trade-off. This Trade-off classifies crowdfunding in to two kinds: Rewards based crowd funding and Equity based crowdfunding.

A Rewards based crowd funding is the one in which the funder enjoys the products and services of the company in return for the funds offered.

An Equity based crowd funding is the one in which the investors gets shares of the company in return to the invested sum of money.

The terms and conditions could be well settled by the parties in any way they find best suited. It could be either of the two categories or a mix of both.

Crowdfunding – A wise option for funding

The idea of crowdfunding is simple but the complex part is to propagate the idea of the start-up amongst the lot of potential funders. The latter is facilitated by mediators known by the name of crowd funding platforms. Working through these platforms for crowd funding,the project could be one of the wisest decisions in the course and following points will elaborate the idea.

  1. Funding projects made easy: A budding entrepreneur might be well aware of the tedious processes followed and conditions applied when dealing with bank loans. In crowdfunding through platforms, there are very minimal processes involved and that too in a paperless, time saving manner.
  2. A self-introspection tool: A crowd funding idea implemented vide platforms provide popularity index of the idea implemented in the start-up and gives a vague picture of its future performance. Owing to the performance of the project in gathering support over the platform it can be reshaped.
  3. Lower are the risks involved: The kind of response over a crowd funding platform can be deemed as market survey and hence, can be considered as an indicator of risks involved with project. This helps to prepare better, well before the launch.
  4. Worldwide Success: Since there is a vast propagation of idea through a crowd funding platform, a lot of people get connected to it as they become a part by funding the project. The success of the project thus becomes a success for many.

This articles definitely clears some air about the roundabouts of crowdfunding thereby giving a deeper insight to the concept and its more than one functionality.

what is equity

What is equity and how is it related to crowdfunding startups?

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Finance is one of the biggest hurdles, an entrepreneur has to face while setting up the foundation of his start-up. Some of them are able to bridge the financial gap through bank loans, some through connections to investors, but still a majority of them are in a fix for accumulating finance for their new set-up.

To their rescue comes the concept of crowdfunding; to be more precise equity crowdfunding. The question here in your mind might be what is equity crowdfunding? What do sites like Kickstarter and Myefunder do in this context? But before that, let us first understand what is equity?

What is Equity?

Equity has different meanings in finance and accounting, but here we would answer the question what is equity with common reference to both. Finance equity is the difference between the asset value and liabilities of the organization and in accounting it refers to shareholder’s equity when the financial equity is divided amongst the shareholders.

Equity  Crowdfunding

After clearing the air about what is equity, let’s focus on the question what is equity crowdfunding? Well, it is an alternative way of funding start-ups and small businesses, in which broad groups or individual investors interested in the idea or prospects of the start-ups can inject funds in it , in exchange of ownership of shares of the company. As the business bears fruit with time, the investors are in direct profit with shares of the company in their hand.

The Crowdfunding Platforms

The questions of what is equity and what is equity crowdfunding have already been answered; now moving on to the third question what is equity crowdfunding platform all about? Indeed, equity crowdfunding helps a budding business grow, but the probability that the entrepreneur would dream of contacts of people interested to fund their idea, is almost negligible (until the entrepreneur is of the race of super humans). To this situation crowdfunding sites like Myefunder.com come to the rescue. These platforms are the link between the entrepreneur and investor.  Crowdfunding websites provide opportunities for both the parties to grow and flourish. It is not only the initial funding which can take place on the crowdfunding platforms of Kickstarter and Myefunder.com ,  but also the investment required for subsequent growth of the company i.e. follow-on investment.

In the crowd of increasing start-ups it is quite difficult to reach that unique idea for establishing a successful business, but if analysed deeply a proper source of funding is indeed a crucial issue for the start-up. This article, surely must have given answers to inquisitive minds about the questions “What is equity?” “What is equity crowdfunding?” and “What do equity crowdfunding platforms like Myefunder do?”

An interested entrepreneur in need of funds for his start-up can go to the depths of this process of investment by directly visiting the webpage of the crowdfunding sites and further by contacting agents of crowdfunding platforms like Myefunder.com.