Millennials ask – How to I get Started with Investing in Companies that are Crowd Funding their opportunities. Karen answers. Billions of dollars are being invested in companies raising capital directly from the public in legal equity based ‘crowdfunding’ methods — Still far under the total capital raised from angels and VCs… but by the
The Legalization of Equity Crowd Funding was the catalyst for the great Economic Democratization of the Capital Markets. Although crowdfunding started with reward based, the advent of the JOBS Act in 2012 introduced 4 ways to raise equity capital from the crowd. The expanded pool of additional investors are not your typical angel investors. These 4
Before the rules of REG CF were released, many companies would say they were raising capital through ‘crowdfunding’. Often they were not doing under the proper regulations offered through the JOBS Act or the SEC or their own state’s securities regulations. And, as capital formation methods of REG A+ become more popular, companies may cut
Investing through Reg A+ into private companies is not that well known by either traditional stock market investors or angel investors. Yet it offers pluses for both. Traditional stock market investors can review financials and company history similar to a publicly traded company, while also getting the benefit of the usual multiple that occurs
The traditional process of startups raising capital is highly inefficient for both entrepreneurs and investors, as most Angel Groups limit their prospects to their state or region and VCs invest in only a fraction of angel backed companies. The Good News: there is and organization that is disrupting that process by Creating an Ecosystem to Fund Innovation
You know you need to raise capital, but how? Do you go the traditional Angel Investor to VC that most tech companies follow or is one of the 5 ways to solicit for investment from the public (Crowd Funding) the best route for your company? In this episode of the Compassionate Capitalist Podcast, Karen will
