It took four years for the Title III of the Jumpstart Our Business Startups Act (JOBS Act) to be officially enforced on May 16, 2016. Investment crowdfunding in the US is heavily regulated as compared to the UK, where regulators have been slightly more lenient which has resulted in Crowdfunding being widely viewed as a success in the UK.
The Congressional “Father” of Title III of the JOBS Act, Rep. Patrick McHenry, introduced the “Fix Crowdfunding Act” into the House of Representatives. Its provisions are focused on Keep reading this post
When you are launching a crowdfunding campaign, you have to create a following, attract supporters – and you need to start working on that before the campaign is live. Richard Swart, director of research at the Program for Innovation in Entrepreneurial and Social Finance at the University of California, Berkeley, found that campaigns that successfully raised $100,000 spent at least 200 hours preparing for a crowdfunding effort and an average of 136 hours managing it – all before pledged funds hit the bank. “To reach the funding target, the first 30 percent of funds needs to be committed before the campaign goes live,” Swart says.
Start with writing down who your ideal customer is and who your ideal funder will be. Focus on real data about customer demographics and online behaviour, along with educated guesses about their personal histories, motivations, and potential concerns. Keep reading this post
This week StartWise met with Nigel Sharp, Global Entrepreneur-In-Residence at CU Boulder (a program sponsored by Brad Feld), Advisor at Boomtown Accelerator, Blackstone Entrepreneurs Network and Analyst at the Venture Capital Analytics program at Rockies Venture Club.
Nigel supports students, staff and faculty’s entrepreneurial efforts and the University’s business acceleration programs and classes, as well as helping to internationlize the Boulder startup ecosystem. In this interview we discussed equity crowdfunding and opportunities it could create.
Some of our favorite quotes from Nigel:
“Equity crowdfunding will make people Keep reading this post
If you are looking to start investing in private companies, you need to understand what happens after the investment and how to manage your portfolio.
What Happens After You Invest?
Depending on the range of factors such as the performance of the startup, the terms of your investment, the terms of any subsequent financing rounds, and the terms of any liquidity event the are a few possible outcomes of your investment which include: Keep reading this post