In the age of social media networking and personal brands, a new form of fundraising is gaining significant traction. Whether you are a paleontologist seeking financial assistance for fossil excavation, or a musician looking to fund your first album, people are turning to crowdfunding as a way to realize projects, spread awareness about a cause, or even cover medical expenses. The New York Times articles collected in this volume give a sense of the great variety of crowdfunded projects, the particular advantages or drawbacks of the method, and the potential challenges and controversies that can arise from crowdfunding. Features such as media literacy questions and terms help readers understand how the reporting of the topic has developed.
This book discusses the concepts, types, models, and patterns of crowdfunding to provide a comprehensive portrait of this newly developed market-based financial tool. In addition, it examines a number of economic theories to help readers understand the proliferation of crowdfunding, reviews empirical works to find gaps in the literature, and outlines future research directions. A unique feature of this book is that it discusses Japan’s crowdfunding approach, which is somewhat different from that of the Western countries, by highlighting a specific crowdfunding platform (Music Securities) and a crowdfund-backed firm (SABAR restaurant). Further, it explores the suitability of Japan’s crowdfunding approach for addressing the financial needs of SMEs in developing countries,using Bangladesh as a representative case. Finally, the book identifies some lessons learned from crowd funding so as to advance research into this phenomenon, and to make it efficient and sustainable. As such, the book will benefit novices, academics, researchers, and policymakers interested in crowdfunding technology.
Crowdfunding: Fundamental Cases, Facts, and Insights presents fundamental knowledge on this maturing economic field. Assembling and arranging datasets, case analyses, and other foundational materials on subjects associated with crowdfunding, the book systematically, comprehensively and authoritatively provides access to a consistent body of crowdfunding research. With the crowdfunding industry now consolidated, this core reference can serve as the basis for research projects and applied work. Presents a complete scope of crowdfunding areas in the international landscape Combines economics with international business, management, law and finance Enables practitioners and researchers to compare regulatory frameworks, best practices and market opportunities Includes a freely available website of supplementary pedagogical material
This is the first book of its kind to systematically integrate crowdfunding in the entrepreneurial finance research field and extend the current debate to show how crowdfunding can be leveraged as a strategic tool to grow new ventures. Utilising original empirical evidence of companies that have raised funds via crowdfunding, it discusses the value-added services that the crowd provides to entrepreneurs, as well as how and under which conditions crowdfunding helps company development by facilitating subsequent access to critical financial and non-financial resources from external stakeholders. The first part introduces the most popular models and tactics for a successful crowdfunding campaign and illustrates the characteristics of the crowdfunding phenomenon and its evolution across the world during the last decade. The second part of the book, demonstrating how crowdfunding can be a starting point to seed financing, illustrates and discusses how entrepreneurs can use crowdfunding as a strategic tool for accessing subsequent resources from external stakeholders – showing the benefits, beyond capital, that entrepreneurs can gain from the crowd, as well as potential risks. Crowdfunding for Entrepreneurs is particularly useful for academics, advanced undergraduate and postgraduate students in entrepreneurship and innovation, entrepreneurial finance, strategic management, as well as professionals interested in how crowdfunding can be utilised as a strategic tool to create competitive advantage.
A groundbreaking book on the growing trend of crowdfunding Crowdfunding has gained considerable traction over the last few years. By combining the Internet/social media with equity-based financing, it is poised to usher in a new asset class that will change how early stage and small business financing transactions are consummated. Author Steven Dresner, Founder and CEO of Dealflow.com, understands the nuances of how crowdfunding can help companies gain much needed access to capital, and now he shares those insights with you. Engaging and informative, this book will serve the needs of a global audience comprising entrepreneurs, financiers, and other professionals. It skillfully addresses the market dynamics that are catapulting crowdfunding into the mainstream and explores essential issues ranging from planning an online campaign, post-transaction management, and business planning to securities law and tax issues. Puts the business of crowdfunding in perspective with a look at the current marketplace, overview of important data, and legitimate concerns Examines effective techniques for communicating with the crowd Details equity-based financing and other sources such as debt instruments Contains contributions from a wide array of individuals involved in the worlds of finance, law and accounting, social media, marketing, as well as DealFlow Media's own staff Crowdfunding affords-start ups and other smaller businesses better access to capital via the Internet/social media. It also allows an investor of any size to back a business of their choosing. This new book will show you what this process entails and how it can benefit everyone involved.
The integration of technology into entrepreneurial initiatives has led to the use of online communities to raise funds for projects and ventures. Through the use of social media platforms and the social web, crowdfunding has provided an innovative, large-scale fundraising solution for both personal and professional initiatives. Strategic Approaches to Successful Crowdfunding brings together a collection of research-based chapters relating to the use of the social web to raise funds and provide financial support for start-up companies, individual pursuits, and philanthropic endeavors. Focusing on a diverse set of topics relating to e-commerce, capital investment, peer-to-peer lending, digital philanthropy, and virtual communities, this timely publication is an essential reference source for academicians, researchers, professionals, and graduate students interested in understanding the dynamics, best practices, and managerial solutions for drawing funds and financial support from online communities.
The must-read summary of Kevin Lawton and Dan Marom's book: "The Crowdfunding Revolution: Social Networking Meets Venture Financing". This complete summary of the ideas from Kevin Lawton and Dan Marom's book "The Crowdfunding Revolution" shows that crowdfunding is an innovative, collaborative way to fund projects: it is the fusion of social networking and venture capitalism to obtain funding for worthy causes, get capital for companies in exchange for an equity stake or to pre-sell items to fund production costs. In their book, the authors suggest that crowdfunding has the potential to be even more successful than traditional methods. This summary explains how you can take advantage of collective IQ and wallets, and how to implement this new type of investment model. Added-value of this summary: • Save time • Understand key concepts • Expand your knowledge To learn more, read "The Crowdfunding Revolution" and discover the new, exciting route to funding.
|Author||: Igor Micic|
|Publisher||: Anchor Academic Publishing (aap_verlag)|
|Release Date||: 2015-02|
|ISBN 10||: 3954893630|
|Pages||: 108 pages|
This book aims to take stock and systemize existing knowledge on crowdfunding while providing overview of the industry, its regulatory environment and advancing the insight into the role of crowdfunding in the startup lifecycle. It is adopting an exploratory and phenomenon-based approach which is deemed appropriate when investigating rather new phenomena. Furthermore, the research combines survey and interview methodologies to assess the opinion and real-world behavior of different stakeholders in crowdfunding marketplace and identify gaps requiring further academic consideration. Empirical data was gathered using multiple interactive web-based questionnaires distributed to different stakeholders and “informed general public” mainly through the social networks (Linkedin, Facebook and Twitter) and direct solicitation of entrepreneurial associations, networks and online communities. The study conducted relies on both qualitative and quantitative analysis in attempt to find data patterns useful in future research and establish some managerial and policymaker recommendations based on limited evidence collected. The work adds value to this field through a 3-fold contribution: Taking a look at crowdfunding through the prism of SWOT analysis of the practice itself and Porter’s 5 forces analysis of crowdfunding platforms industry. Providing evidence in favor of implementing various degrees of regulation based on different crowdfunding categories, using the Italian case of equity-based crowdfunding regulation as a model. Finally, it yields some interesting findings on relevance of crowdfunding in the venture startup while pointing out key motivators which make entrepreneurs consider this fundraising option. In addition, related policymaker/managerial implications are exposed and academic literature updated with reference to contemporary developments in this dynamic field.
Crowdfunding Advice True Advice: How to Kickstart Your Crowdfunding Projects and why I won't do it again! John P. Apple is a Pen Name used by the author to remain anonymous. This is the second book published to date on advice. Her first book has been very successful "Workplace Bullies Suck..." where she advises the best way to overcome workplace bullies, the author chooses to remain anonymous only to protect her identity so she can say it like it is. He/She draws on her experience to help others with her candid advice not necessarily to sell books, but to help others from the mistakes, and hands on experiences she has endured to better someone else's life. He/She is a very successful entrepreneur and enjoys helping others thrive like she does.
Currently, a new potential paragon of fundraising and financing, in particular crowd funding (CF) attracts a lot of attention. Basically, CF is an open call for capital, mainly via the internet, where the desired campaign can be evaluated and financially supported by a large group of individuals, the crowd. The matchmaking process between campaign creators and potential investors is mainly established by a standardized CF platform (CFP). Scientific discourse on CF is still nascent, since existing studies and papers focus on the potential of CF and its basic principles. Florian Danmayr addresses crowd funding platforms as object of his analysis and contributes to the body of literature by enhancing knowledge on the composition of the CFP market.
|Author||: Thomas E. Vass|
|Publisher||: First Edition Design Pub.|
|Release Date||: 2014-09-15|
|ISBN 10||: 1622877233|
|Pages||: 82 pages|
The purpose of this book is to describe how an established technology company or an entrepreneur can use crowdfunding to raise capital from accredited investors. The book is targeted to small private technology companies, usually with less than 10 employees, and with more than 3 years of operational experience. Within the category of equity crowdfunding, there is a sub-category called "accredited investor" crowdfunding, characterized by investments made by investors who expect a profit, and generally will continue to support the enterprise over a longer period of time than the venture capitalist. Generally, the goal for the amount raised would be around $1 million. As is the case for most of the Reg D capital raised in 2012, the use of the capital is for business growth and expansion, in such items as new staff, sales and marketing, and new capital equipment. From a technological point of view, the capital would generally be used to improve an existing product or service, called a sustaining innovation. The book covers the steps and executive or entrepreneur follows to prepare and execute a crowdfunding project. It provides a detailed analysis of the 10 accredited investor crowdfunding websites currently in operation. This book is not about donor-based crowdfunding, or its near cousin, non-accredited investor crowdfunding. This book is intended for CEOs of technology companies and technology entrepreneurs who would like to learn more about this new technique of raising capital.
The SEC has lifted an 80-year ban on general solicitation. For the first time, start-ups can use public solicitation and public advertising, including online, to sell private offerings. This handbook discusses these changes and how to take advantage of them.
Crowdfunding is a Quick Way to raise Money for almost any Need... If you do it Right!
|Author||: Mario Lurig|
|Publisher||: Mario Lurig|
|Release Date||: 2013-09-05|
|ISBN 10||: 1300684267|
|Pages||: 35 pages|
Unlocking Kickstarter Secrets is your guide to creating a successful Kickstarter or Indiegogo project. The e-book offers guidance, tips, and tricks for creating, marketing, and fulfilling your project goals. Do you want to learn how to determine how much money to raise? What kinds of rewards attract backers? How to use pricing to your advantage? Learn these answers and more with this concise guide to crowdfunding.
|Author||: Steven Wolf,Eugen Kraemer|
|Publisher||: GRIN Verlag|
|Release Date||: 2015-09-04|
|ISBN 10||: 3668040605|
|Pages||: 28 pages|
Seminar paper from the year 2015 in the subject Business economics - Investment and Finance, grade: 1,3, The FOM University of Applied Sciences, Hamburg, language: English, abstract: In the past years the number of startups increased continuously. Often it is the case that a startup doesn’t have the financial power to realize a business and if an investor or a financial institute refuses to support the startup many good ideas can fail already at the beginning. Therefore it is necessary for startups to find new ways for financing the business ideas. Crowdfunding is one method for financing and investing which nowadays reaches a high popularity and growth among innovative people, groups and companies. To get a better understanding of the whole context this term paper investigates the different perspectives and actors of crowdfunding to give an answer to the actual aim. The aim is to analyze whether crowdfunding is an appropriate way of gaining funds for startups or not. In the first part the theoretical information is provided. This includes definitions and differentiations of used basic terms like crowdfunding and crowdinvesting as well as the different forms of crowdfunding. Also in the same part the functionality and the historical development of crowdfunding will be shown. In chapter 3 the actors of crowdfunding – the startups, the investors and the platforms – will be described. This part will focus on the different reasons, aims and other important aspects for each of the actors. An overview of advantages and risks for startups and investors will be given in the fourth chapter. To have a better impression about the different crowdfunding forms, levels and scales, the fifth chapter will show some examples of successful crowdfunding campaigns. Based on all researched and derived information, the last chapter will give a summary and conclusion to the aim of this term paper.
|Author||: Katharina Hauck|
|Publisher||: GRIN Verlag|
|Release Date||: 2016-07-25|
|ISBN 10||: 366826676X|
|Pages||: 43 pages|
Bachelor Thesis from the year 2015 in the subject Business economics - Investment and Finance, grade: 1,7, University of Applied Sciences Bielefeld (Wirtschaft und Gesundheit), language: English, abstract: Crowdfunding platforms give space to private persons and organizations to publish their projects online and ask for financial support. These projects can be either for profit or non-profit. Although data can, once put online, go viral in no time and become known to many people, there is still much effort needed to create an outstanding project which provides added value to the donor and is thus worth supporting and sharing. By far not every crowdfunding project is successful, and many fundraisers do not yet have the know-how to reach enough funders for their projects. Others even neglect to engage in crowdfunding in the first place, as new possibilities always come along with confusion and insecurity. The central aim of this thesis is therefore to examine how web-based crowdfunding projects must be designed and presented in order to satisfy prospective donors’ needs. The main focus lays on the initiation of the funding process. Prospects shall be convinced to become contributors to a crowdfunding campaign in a sustainable, long-term oriented manner. In order to come to the right conclusions, it is necessary to analyze both the fundraisers’ and the funders’ point of view. First of all, it needs to be clarified how crowdfunding works and what possibilities there are for German fundraisers to realize their campaigns in the most satisfactory manner. Several donation-based crowdfunding platforms in Germany offer different tools and features for their users, being both fundraisers and funders. Furthermore, it will be defined who must be addressed by crowdfunding campaigns and whether these people differ from regular offline donors. To become more specific, the German donors and their preferences in giving will be investigated, concerning both offline and online fundraising. For a more profound analysis of the donors’ insights, one has to go back to the very roots of charity and philanthropy: What motivates people to donate to charity? Both the funders’ characteristics and the fundraisers’ possibilities will be brought together when elaborating the incentives to contribute to a crowdfunding campaign. The design and content of the project page as well as the features of the crowdfunding platform should match the basic motives for becoming a donor. Some of the features already being offered by the platforms fulfill this precondition. In addition, there is potential for new tools making a contribution more probable and assuring long-term relationships to donors.
Fully updated in February 2014, this is the definitive book on equity crowdfunding for startups ie. selling shares in your company using Title III of the JOBS Act. Raising venture capital has become easier, with the passage of the JOBS Act. It's new, it's different, and it's big! The SEC is about to release its final restrictions over the next two months - so now is the time to get on-board. Selling shares in your startup through CrowdFunding is a big deal. It's going to totally change the whole way venture capital is raised. CrowdFunding has been used for causes and projects, but the new Act allowing you to crowdfund your startup takes it to a whole new level. This book is for entrepreneurs to quickly understand what they need to know and where to find it. It's more than about using KickStarter or IndieGoGo to collect the cash. You need to set up a real company with real customers and real cashflow. This book covers what you need to do to make crowdfunding your startup a success. The book has 5 sections: 1. How Crowdfunding Works for Startups. After a quick explanation of how crowdfunding came to be, the book looks at how crowdfunding fits into the field of venture capital. Then it addresses how the JOBS Act has changed things, with a detailed commentary on the 10 most important changes. The chapter ends with suggestions for where crowdfunding would be best used, and perhaps not so well suited. 2. Setting up a Company Worth Funding. You have to get the dogs to eat the dog food (i.e. will customers buy?), and you have to do it better than the competition. Investors expect you to make money. You can't wait forever; you have to lift off quickly. And you need to get the boring stuff, like legal documents and company status, right. 3. Raising the cash. Making the company attractive to investors - means understanding how crowdfunding works for them. Then readers are taken through the critical part of putting a value on the company and pricing its shares. Get this wrong and you will work for years for nothing, or you won't get funded. Then you have to build trust, reach investors and collect the money! 4. You have the cash - now what? Well, now you have the money, you have to perform and build all that value your promised! You are going to have to spend a lot of time talking to investors. Since few companies raise all they need the first round, you have to spend time looking for investors for the second round. And then, critically, for your investors, you will have to reach the liquidity event, when investors can cash out.5. The Future of Crowdfunding for StartUps. It could all go horribly wrong (but we don't think so) and you need to be ready to answer criticisms. Here the book helps you figure out what to say. The book then speculates on the possible bright future for crowdfunding for startups. It is all so new that many possibilities are opening up. It makes sense to see them before others do. The full text of the JOBS Act and the CROWDFUND Act are appended. Rupert Hart is uniquely positioned to write this book, with experience in venture finance and running, startups. He worked with Hermann Hauser, founder of ARM, the company that designs the chips for the iPhone. He worked with IDEO on new ventures. He helped set up E*Trade UK. He has run several startups. He is the author of "Recession Storming: Thriving in Downturns through Superior Marketing, Pricing and Product Strategies" which was #1 in books to do with "Recession" on Amazon.com for 3 years. He has appeared in the International Herald Tribune and BBC TV's Business Breakfast. He holds an MBA from INSEAD, one of the world's top business schools.This is the book to buy!Please note that the SEC is still weighing in on some aspects of the JOBS Act, restricting certain aspects; Please check www.sec.gov for latest rulings. You are advised to take legal advice before starting your crowdfunding campaign.
More than $2.7 billion in crowdfunding is raised every year by charities and non-profits. Rewards-based fundraising is used to launch books and theatre productions. Debt crowdfunding is used for personal debt. Equity-crowdfunding is gaining traction but is struggling under a regulatory burden in the US and Canada.