Crowdfunding to Double
The industry is booming, creating jobs, leveraging sales
The crowdfunding industry is booming. More than 1,250 online platforms worldwide raising $16.2 billion last year, up 167% from 2013, according to crowdfunding research firm Massolution. And global crowdfunding is projected to reach $33-34 billion in 2015, with $6 billion of that in the US, double that of last year.
The benefits to companies go beyond the actual funds raised through the revenues that are crowd funded; there is a marketing benefit that translates into sales. Crowdfunded companies (via rewards, equity or debt) increased quarterly revenues by Read more »
Crowd Funding Economics
Web 3.0 Community Financing meets Social Networks
There’s been a huge roar building around crowdfunding and the marketing implications are clear. The democratization of accessing capital sped through Congress at a speed previously thought unachievable, led by the Crowd Fund Advisors. Crowdfunding platforms raised almost $1.5 billion in 2011, doubled to $3 billion in 2012, and is predicted to double again to $6 billion in 2013.
Crowdfunding can take various forms: Lending, Reward, Donation, and Equity. The forms currently legal in the US include the first three. In lending crowdfunding, funders receive interest income from their loan and expect repayment of original principal investment. In reward crowdfunding, there is a non-pecuniary benefit. Donation crowdfunding provides for not return and is purely philanthropic.
Equity crowdfunding allows companies to raise startup capital by selling small amounts of stock online to a large number of buyers. Read more »
May the Equity Packages Be Forever in Your Favor
By Joseph Walker.
Joanna Bradley, IT Sales & Marketing Recruitment Manager, was interviewed for this story on evaluating opportunities at start-ups. This article was originally published on the FINS (Wall Street Journal Digital Network) website.
You’ve decided to join a start-up. You’ve gone through a rigorous interview selection process and have been deemed worthy of joining a small band of brothers dedicated to nothing less than ringing the Nasdaq bell and becoming millionaires many times over. Read more »