Regulation Crowdfunding is now a year old and there are more than 29 Funding Portals. Regulation Crowdfunding is the process by which a company can raise up to 1 Million dollars by selling securities in small amounts to a large number of non-accredited average American wage earners, who are now, crowd investors.
This is a big deal for all of us!
Because of the Jobs Act we now have the legal right to invest in companies which in the past we had no access too until they went public. Regulation Crowdfunding imposes a host of requirements on companies, investors, and intermediaries. And so for Crowdfunding to reach its greatest potential we must do a much better job building awareness and education to the million’s of companies, investors , and professionals who still know nothing about these regulations and requirements or frankly anything about how crowdfunding works,how they can benefit, and the role they can play to increase its long-term success for them and the industry.
Notwithstanding the many requirements, regulation crowdfunding offers a distinct advantage over the traditional capital raising processes for entrepreneur’s, startups and small business owners because finally regardless of your contacts and connections or your location, you now have access to a large pool of 100’s of millions of potential investors online, with billions of dollars of discretionary money who may now want to invest in you ! The greatness of crowdfunding is not in it’s potential to replace traditional fundraising, rather as an additional source of capital to increase the overall pool of capital available to innovative entrepreneurs and to create proof of concept utilizing the wisdom of the crowd, which is a great validation for those professional investors, or bankers that may invest after the crowd. And that’s a great thing for everyone now and long into the future. For regulation crowdfunding to live up to its greatest potential of leveling the playing for access to capital, for job creation and equal opportunity to private investments on the ground floor ( where the real money is made), we must first win over the hearts and educate the minds of a wide variety of stakeholders willing to take some risk.
You need to get ready and educated to participate, and we can help.
Because the future belongs to those who believe in the power of their dreams and act on them.