With the passage of crowdfunding earlier this year, a whole new realm of capital formation for entrepreneurs and investors was realized. And now that sections of the JOBS Act will be passing in January of 2013, the first equity-based crowdfunding offer will soon be hitting the market, allowing small businesses to raise capital by selling equity to the public. However, with so many crowdfunding platforms now in the market, it’s important for entrepreneurs and investors to understand which sites are the most reliable and credible so that everyone can crowdfund responsibly.
Below are the top 5 sites that are considered to be the best equity-based crowdfunding platforms to look out for in 2013.
1. IPOVillage.com – IPO Village is an organization that uses equity-based crowdfunding to bring exclusive IPO’s to the everyday retail investor, allowing “Main Street” investors to access stock that was once only reserved for the Wall Street elite. The organization doesn’t have to wait on the JOBS Act since they provide SEC registered offerings that have existing regulations already open to the public, including non-accredited and accredited investors alike. The site has already received over $1 million in pledges for their first equity-based crowdfunded IPO, set to go live in the coming weeks.
2. Seedrs - Seedrs is the UK’s first FSA regulated online platform for investing in startups, including equity-based crowdfunding investments. The site allows individuals looking for more tangible, rewarding, places to invest their money, beyond conventional financial institutions.
3. Crowdcube – Crowdcube offers a new way to fund start-ups and business expansion by crowdfunding for equity, giving entrepreneurs a platform to connect with ordinary people and raise venture capital. By attracting lots of investors who invest smaller amounts of money into a person, company, product or idea individuals can bypass the traditional ways of raising venture finance.
4. Earlyshares.com – EarlyShares is a leading equity-based crowdfunding platform that allows like-minded individuals to come together and pool their resources (i.e. knowledge, energy, commitment and, of course, capital) needed for entrepreneurs to succeed. This means friends, family, local community, and individuals across the globe can help fund business projects in exchange for shares of ownership (equity) in the company.
5. MicroVentures.com - MicroVentures is a platform that gives start-ups and existing small businesses access to early-stage capital investment or micro investments. The site merges peer-to-peer lending with the venture capital industry and provides opportunities for investors to offer funding resources to entrepreneurs and early-stage organizations that need capital to accelerate company development.
This article was submitted by Kimberley Brown, Senior Account Manager & Writer with Leverage PR