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Are You Suitable for Equity Crowdfunding?

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Are You Suitable for Equity Crowdfunding?

By Startup Valley (334 words)
Posted in Equity Crowdfunding on December 18, 2013

There are (1) comments permalink

Equity crowdfunding is a new way for startup companies to finance their entrepreneurial endeavors as well as for individuals to be able to invest in these private companies. In the past, this type of investment was reserved for the wealthiest among us. Nowsmaller investors are being introduced to this genre more regularly. With equity crowdfunding, many non-accredited investors can invest small sums of money to fund startup businesses in return for shared equity.

How Does Equity Crowdfunding Benefit Entrepreneurs?

Equity crowdfunding benefits those who are starting new businesses in several ways, including the following:

  • Financing a new venture through a different vertical for those who have had difficulties obtaining startup funds from traditional investors or sources
  • It keeps new companies from going into debt via startup loans when they are first getting on their feet
  • Crowdfunding platforms can help founders facilitate introducing new ventures to the marketplace through various social media networks
  • The interest that a successful crowdfunding campaign can gather may result in significantly stimulating the economy to break industry standards

Additional Benefits of Equity Crowdfunding

Small businesses are very important for several reasons, but it has been difficult for new entrepreneurs to qualify for small business loans. Lenders have money, but they are being extremely selective when it comes time to grant loans, and a lot of people are unable to meet the stringent requirements that lenders are placing before them. Now that they have an alternative to applying for business loans with traditional lenders, entrepreneurs can get their businesses started, which can mean more jobs will be created.

The Crowdfunding Platform

President Obama signed the Jobs Act to allow equity crowdfunding to be something that is accessible to more than just traditional lenders and wealthy investors. StartupValley is a crowdfunding portal that allows you to browse the listings of new ventures at your leisure and determine which one is right for you.

Comments (1)

Grace Kim posted on: December 26, 2013

Equity crowdfunding will open up new opportunities for entrepreneurs who are looking for capital. 2014 will certainly be interesting for this. This crowdinvesting mythbuster series is helpful for those with doubts about equity crowdfunding.

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