Crowdfunding Options for Entrepreneurs

14,448 views

Published on

Rewards, Debt (P2P and P2B Lending) and Equity Crowdfunding. Fundraising options for entrepreneurs based on cash flow, funding goal, timing, development stage, etc.

5 Comments
24 Likes
Statistics
Notes
  • I have 1000 acres of land at Lagos, Nigeria very close to the sea and could be used as a tourist beach front with in built hotel or the dry land could be used for commercial ,industrial and shelter purposes.Some companies,hotels and estates are being built in this area presently.I need a partner/investor and i will be happy if you can advise me or partner with me.This is a bankable business as an investment of $80,000 dollars in this part of Lagos will give you returns and profit of land worth $350,000 within a month after the survey,plotting and charting of the land.All documents are legalized by the ministry and signed by the appropriate authorities and we equally work with a law firm that has its headquarters in Toronto,Canada.I will be expecting your reply.If any organization is interested,tey can contact me on frankokoronkwo@gmail.com or +2347061901797 for more information or your reply.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • SSE MY PAGE,CROWD-FUNDING: http://www.nextlevelx.com/index.php?siteid=elfiero13
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • SEE MY PAGE,CROWD-FUNDING: http://www.nextlevelx.com/index.php?siteid=elfiero13
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Dear Sir,

    We require Funding of 50,000 US Dollars to expand our Herbal Supplemental Industry. It will be helpful to society in giving Vitamin C to the needy people at low cost. If any organisation is interested, I would be most happy to associate with them.

    Thank you and looking forward to hearing from you.

    With regards,
    Dr P. Jayapala
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • build blog traffic

    http://buildblogsandtraffic.blogspot.com.tr/
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total views
14,448
On SlideShare
0
From Embeds
0
Number of Embeds
678
Actions
Shares
0
Downloads
204
Comments
5
Likes
24
Embeds 0
No embeds

No notes for slide

Crowdfunding Options for Entrepreneurs

  1. 1. >$50,000 <$50,000 REWARDS OR DEBT (P2P, P2B) EQUITY DEBT (P2B) or EQUITY $50,000-$500,000 You can raise significantly more funds You will not have monthly cash outflow (as in debt model) You will give up a small % of shares, so will keep the control over the company’s operations and planning The most time consuming out of three types of crowdfunding Significant upfront costs and – annual SEC filing expensesEQUITY Pros & Cons: Lending: REWARDS Costs – depend on the amount to be raised. Portal fees – 7.5%– 10% plus legal and accounting expenses, annual filing costs. Very time consuming and it takes months to get the funds In the case of fixed funding there is a possibility that you will not get any money Huge competition for backers’ attention on popular crowdfunding portals Not all types of businesses/products are a good match for the rewards type You keep your company’s ownership You can raise significantly more than your initial goal You can use the campaign for customer engagement, marketing and PR, pre-sales, beta-testing, crowdsourcing, finding potential partners, distributors and investors You don’t need to file extensive documentation (as in equity crowdfunding) or to have high credit score (as in P2P lending) or a profitable business (as in P2B lending) Costs – 7%-14% plus perk fulfillment and marketing expenses YOUR BEST OPTION Quick access to cash You keep your company’s ownership Costs: 0 (Kiva Zip) up to 15% for P2B and 7% to 35% for P2P Must have a good credit score (P2P) or positive cash flow (P2B) Monthly cash outflow AMOUNT debt (P2B) or equity Yes debt (P2P) or rewards or equity No <1 month equity rewards debt 3-5 months 5-10 months Month: 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | TIME STAGE rewards rewards debt (P2P) debt (P2B) equity (?) equity Startup Growth P2P Lending – for startups in need for immediate cash and means to meet payment obligations P2B Lending – for established businesses with positive cash flow to finance their expansion REWARDS – for businesses operating in B2C market with reasonably inexpensive and innovative but not too complicated products. Must have social appeal; be able to produce the product within several months after the end of a campaign EQUITY – for businesses that can’t (don’t want to) borrow money through P2B marketplace, companies in need to raise higher amounts of money. Must have cash upfront to fund the legal and accounting expenses and can wait for 5 to 10 month to receive the funds. Crowdfunding Fund Your Business What Type of Crowdfunding to Use to Fund Your Business www.CrowdfundProductions.com

×