The Ultimate Crowdfunding Guide

Crowdfunding (alternately investment crowdfunding, securities crowdfunding,  crowdinvesting, crowd financing, debt crowdfunding, crowdlending, equity crowdfunding, crowdsale, initial coin offering or security token offering) describes the collective effort of individuals who network and pool their resources, usually via the Internet, to support efforts initiated by other people or organizations. Crowdfunding also includes Peer to Peer Lending but some platforms have been re-labled as “Marketplace Lending” or simply “Online Lending” as a growing number of direct lending platforms are using institutional money or their own balance sheet to finance loans with a diminishing dependence on smaller investors.

In China, the largest market in the world, the term Internet Finance is used encompassing all aspects of online capital formation and Fintech.

The term crowdfunding may be used in support of a wide variety of activities but most importantly for online investing activities for issuers seeking investment capital.


 

The United States

 


The United Kingdom

Finland

France

India

 


 China

Singapore

Malaysia

Dubai (UAE)


Types of Investors

In the discussion of crowdfunding there are generally two types of investors in the United States: accredited investors and non-accredited investors.  These two groups operate by differing rules when investing.  In general, if you make less than $200,000 a year or are worth less than $1 million you are a non-accredited investor, although there are more complex rules that define these two groups.

What is an accredited investor?
What is a non-accredited investor?

The reason crowdfunding is an emerging topic in the United States is due to the JOBS act enabling non-accredited investors to invest in companies via crowdfunded offerings.  This means average citizens can contribute capital to companies without those companies having to deal with the typical bureaucratic overhead of selling stock on typical stock exchanges.

The SEC has published a report on the definition of an accredited investor and may be inclined to update the rule. 

Types of Crowdfunding

Investment Crowdfunding

A platform may crowdfund a diverse group of securities including debt, equity, SAFEs, revenue share, convertibles or more. Each of these offerings entails an expected return by the investor. Investment crowdfunding is most widely utilized in raising capital for early stage firms and real estate projects.

Initial Coin Offerings or ICOs

The advent of Ethereum fueled an entire new class of investments. Digital assets may now be tokenized security offerings of debt, equity, or, perhaps new type of asset in its entirety. This sector of finance is very much in its infancy but is experiencing rapid growth.

 

 

20 thoughts on “The Ultimate Crowdfunding Guide

  1. Pingback: Default Rates in Peer-to-Peer Lending Platforms - Funding Societies

  2. Pingback: Default Rates in Peer-to-Peer Financing Platforms – Funding Societies

  3. Pingback: Default Rates in Peer-to-Peer Lending Platforms – Funding Societies

  4. Our Company Provide (Interior Design, Exterior Design, Office furniture, Rest House, Restaurants, agriculture) materials to Our Country but it’s not enough. We have 25+ Years’ experience on architect and agriculture firm. Basically, Our Company wants to expand our business and I am sure it’s excellent idea. Minimum $2M amount need for our project. we have strong manpower and enough land to expand company.
    I can be reached anytime at +8801884502032 or at admin@karigorfurniture.com

  5. Pingback: TEEN NEWS, TEEN OPINON, PRODUCTS, SPORTS, SOCIAL , EDUCATION, BUSINESS, ENTERTAINMENT, SOCIAL PLATFORMS | Durrelliott

  6. Pingback: This Is How Founders Raise Money In The US | Rare Birds Con 2016

  7. pre launch. http://www.indiegogo.com/project/preview/9ab70bcc

    Hi there.

    A story with millions of your own adventure in it – looking for readers, writers, ghost writers, authors, editors, reporters, journalists, bloggers, influencers, entrepreneurs, sponsors like you who want to help by giving $ 1 or more and spreading this campaign and the story to the world.

    Together we can create “A story with millions of your own adventure in it”.

    With one dollar or more you can help to create a new entertainment industry and change the way you read a story. And every dollar you give to support this campaign I will return with perks worth tens, hundreds or even thousands of times.

    This is a new entertainment industry you must know.

  8. Pingback: Crowdfunding | KristJake.com – views on the landscape

  9. Pingback: The Ultimate Crowdfunding Guide - Crowdfund Ins...

  10. Pingback: 8.Crowdfunding, produzione e marketing: il caso Subbuteopia « Cinergie. Il Cinema e le altre Arti

  11. If you actually want a crowdfunding guide that can help you out, check out welcome.funderhut.com/crowdfunding-guide/

    Thanks!

  12. Pingback: Crowdfunding Mailbox: ICPooch for your Pet, Kordl 2 – Untangle Your Earbuds, Use Gestures + Voice to Control Your Home with Flowton Technologies | Hue Funder

  13. Pingback: The Ultimate Crowdfunding Guide - Crowdfund Ins...

Comments are closed.