The year 2014 has arrived, and many people are asking whether this will be the big year for crowdfunding. The answer to that question is possibly. Kickstarter is the most popular crowdfunding site in the world.
While it has a number of advantages, it also has its disadvantages. When Kickstarter first started, it was a way for artists to raise money to support their projects. Soon after Kickstarter got started, consumer technology companies started preselling proposed products so that they can raise the funds needed to create them. There have been a number of successful crowdfunding projects that have made $10,000 or more. In fact, many projects have made over $1,000,000.
Kickstarter Returning To Its Roots
However, there is a catch. It is one thing to raise resources. It is quite another to deliver on the promise of new innovation. There are several new projects that have successfully launched on Kickstarter, but a large percentage of them are having problems. That is why Kickstarter is returning to its roots. It will once again be a way for creative people to raise money to support their creative projects, not for the promotion of new products.
The ability to raise capital over the Internet by selling stock is known as equity crowdfunding. Equity crowdfunding is very popular around the world. However, it was illegal in the United States until recently. In the past, equity crowdfunding was only possibly through highly regulated and expensive public offerings.
In 2012, congress passed the Jobs Act, and that made equity crowdfunding legal inside of the United States. The reason that Securities And Exchange Commission does not like crowdfunding is because investors could possibly be cheated out of their money. For most entrepreneurs, initial public offerings just are not realistic. Most entrepreneurs are restricted to raising capital through people they already know.
What Gary Spirer Has To Say
Gary Spirer is the author of the book, “Crowdfunding: The Next Big Thing.” In the book he discusses the Jobs Act Was passed in 2012. He has stated that he is very excited about the future of Crowdfunding. In the past, it was very difficult for investors to find the best deal. However, since the Jobs Act was passed, people now have the ability to advertise and market offerings. This will make it easier for people to raise money.
This new law also provides people with two options. They can continue to raise money like they were doing in the past. Companies also have the option of openly advertising their private offerings.
Internet technology is also making crowdfunding a lot easier. One of the things that people can use to make crowdfunding a success is Questionmime. Questionmime is a tool that uses mobile and interactive video to measure and engage viewer feedback on a company product or deal. By using assessments, quizzes, polls and lead generation forms, companies will be able to find what investors like about their product.
Case Study : 5-Roads.com
Many websites exist that enable crowdfunding. Of these numerous resources, only a few stand out in popularity and in terms of success levels.
5 Roads.com is a new social networking platform focused on activities and events that ENRICH THE COMMUNITY.5 Roads.com enables broader reach, enhanced retention and deeper engagement for organizations and also offers personalized, profile based activities for individual members.5-roads.com dreams of providing an exciting and accessible platform for crowdfunding as well.