So, all these new companies that have been started- from where did they obtain their initial capital?
Tag Archives: crowdfunding
When YOU are the Venture Capitalist
I’ve spoken many times about the changes coming to venture funding companies. But, the point of view I’ve presented has always been from the entrepreneur’s side.
It’s Legal!!!!!
Way back when, we helped several clients raise funds from “accredited investors” using SCOR (Small Company Offering Registration) programs. (These were often called U-7s, since that is the form that is employed for the offering.) This limited the capital raised to $ 1KK, but often provided just what they needed to “capitalize” on their markets. And, in at least two of the cases, provided the investors magnificent returns when they were acquired. (The other companies still provided a return to their investors, but more along the lines of a 10 to 14% gain.)
R&D funding is getting kickstarted
I’ve written about crowdfunding before. And, most of you know it for its use in consumer products and creating parks. But, there’s a great interest in having the public help scientists and engineers bring technical products to market. Especially since our government has been cutting back on the funding of R&D over the years.
4 Mile Run
I have written about crowdfunding and B (benefit) companies. I even have a few clients that are considering the marriage of the two concepts. And, while these clients are getting their ducks in a row, folks in my home town are already picking the ball up and running with it.
Should you? Or shouldn’t you?
Your new product is ready- but, you don’t have enough money to bring it to market. Do you search for angels? venture capital? crowdsource? That last choice is the new one, the one made possible by the Jobs Act (reported here), where you convince folks (typically LOTS of folks) to provide you with a small amount of money (each, but it should be lots in total). Typically, those folks want something in return. There are internet sites that makes crowdsourcing all possible. Kickstarter, Indiegogo, AngelList are three such sites.
Does the JOBS Act make sense for you?
Rapidly growing companies. Companies with a great new product. Both of these sorts of entities typically have a need for capital. Banks generally don’t loan money for capital needs. Those funds come from friends and family, angel investors, or venture capitalists.