edited by Peter/CXO Wiz4biz & Organizer, Silicon Valley Entrepreneur Meetup 9/15
Ralph Patterson – who recently retired from Funding Start-ups – gave this talk at Silicon Valley Entrepreneur Meetup on 9/10/15.
1. Crowdfunding has exploded in last few years both in number of Crowdfunding web sites, and in focus as well. You can find a Crowdfunding site for just about anything you want.
2. Crowdfunded projects may include creative works, products, nonprofit organizations, supporting entrepreneurship, businesses, or donations for a specific purpose (e.g., to pay for a medical procedure).
3. Why? The explosion of Crowdfunding has been accompanied by a greater desire for investors to find profitable ways to invest in start-ups, even those without revenue. They included new Angel & new VC efforts, the rise of “Super Angels” and others.
4. Requirements. Ralph talked about the requirements of Crowdfunding, including; how much money are you looking for? Do you have the right team? With limits on both topics.
5. Types of Crowd-Funding.
a) Equity crowdfunding – Investors receive equity in the company or entrepreneur that is raising funds. Nearly all investors are accredited investors.
b) Debt crowdfunding – The entrepreneur or company borrows money and must repay it (typically, with interest). Usually angels or other people in the crowd.
c) Property crowdfunding – Investors receive interest in the property from an owner who is raising funds. Usually ordinary investors.
d) Other crowdfunding – There are a number of other schemes in use – which are generally unique to particular services: perks, publications or rewards
Examples of each of the above divisions. They included foreign Crowdfunding sites as well as domestic ones. As you would expect, the bulk of them were US-based, but a sizeable number were in Europe, and elsewhere.
6.How to Find. If you are interested in Crowd-funding, go to Wikipedia and type into the search window “Compare Crowdfunding sites”. You will get about 75 sites with clear definitions of what each does & where it is based. All of the names of the sites are hot-linked to the appropriate web site, so you can learn more about them. Ralph Patterson LeslieandRalph@Gmail.com
Silicon Valley Entrepreneur Meetup is at
Denny’s, 1st & Brokaw (near SJC) on 2nd Thursday of the Month (next is 10/08)
7pm Dinner & Networking, 8pm Program (about Starting or Growing a Business)
Go to: http://www.Meetup.com/Entrepreneur-733/ to sign up.
Comments: about Crowd-Funding?