3. Crowdfunding is by definition, “the practice of
funding a project or venture by raising many
small amounts of money from a large number
of people, typically via the Internet.”
4. Donations - Cancer Society Walk; First Giving, Crowdwise
No regulations on donations
Rewards based - Kickstarter, Rockethub, Indiegogo, etc
Non-monetary incentives
Pre-Purchase
Good for those with a product
Investment/Equity - SeedInvest. not yet approved in US
5. Loosened regulations on equity investments
Businesses can raise up to $1MM in 12
months
Net worth under $100K – up to $2000
Can advertise investments to public
6. No need to rely on banks
Credit score doesn’t matter
No monetary repayment
No limit on how much you can raise
7. You need a network
Learning curve
Costs in time, fulfillment and taxes
Family & friends may lose money
Work involved