CROWDFUNDING—How it changes the field for everyone.
The passing of the recent JOBS Act included a small but extremely critical part concerning raising capital that will change the way many small businesses are formed and begin to do business in this country from this day forward.
The section regarding “crowdfunding” allows for something that previously was unavailable—offering equity investment in a small business, to a small group of people over the Internet, and advertising your request for capital to the general public. Until now using the internet to ask for investors was only the province of charities and creative endeavors. Now, the average small business can take advantage of that avenue as well to reach a wider potential pool of investors without the myriad of regulations and red tape that was involved previously.
Crowdfunding: IPO's For the Rest of Us
Crowdfunding is essentially an IPO for small business. Whether you need $20,000 or $1 million, crowd funding makes it legal for you to ask for funding, pool together a large group of investors who each contribute a small amount, and work it out with your investors without having to offer an IPO or register with the Securities and Exchange Commission.
Initial Crowd Offering – Introducing the "ICO"
A traditional IPO is a tool used by large, well-monied and well-connected companies to raise large amounts of money. It's not practical for a smaller company trying to raise less than a million dollars to launch an IPO – the expenses alone involved in floating an offering will exceed that. Crowdfunding introduces what we're calling an "initial crowd offering" – pooling together many small investors to raise up to $1million for start-up or expansion capital, in exchange for a financial return on investment. Instead of releasing your offering on the Nasdaq or NYSE though, you use a crowdfunding platform, which functions as a sort of "mini-stock market" but without the expense and burdensome regulations involved.
Cut the Banks Out of the Loop!
Banks – especially now – have very tight policies on small business loans. They're just not making loans for small businesses or startups any more. So-called "small business loans" guaranteed by the SBA are also difficult to come by, and if you are a young, uncapitalized company or start-up, you will find the SBA to be of little help. The fact is, most entrepreneurs can't meet the bank's requirements, but now they don't have to. If you can communicate your great idea to a group of potential investors, you can get funding. That's where we come in.
Let Us Help you Launch Your ICO
There is a lot more to raising money through crowd funding than simply listing your offering on a web site. Explaining the legality, the benefits, the risks, and the how to’s are critical to get everyone on board that can benefit from this opportunity and the sooner the better. Ugly Dog Media's Crowdfunding Jumpstart can do just that. Our business is making it easier and more understandable for you to get your business up and running as soon as possible.
To attract investors, you need to communicate your message in a very specific way. You need marketing documents, brochures, a private placement memorandum (PPM), and online assets that describe not only what your business value is, but why your potential investors should put their money into your ICO.
At Crowdfundingjumpstart.com we want you to be an educated client. Whether you are seeking investment capital or the one doing the investing, knowing what you’re getting into is key. We are available to guide you through the process, communicate your message, and attract quality investors to your crowdfunding project.
Give us a call today at 574-344-2056 and jumpstart your success!
Download our informative white paper about How Businesses Get & Keep Crowd Funding.
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Crowd funding is new and the window of opportunity to take the best advantage of it is now. Let us work with you. READ MORE
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