Microfinance

Raising Capital with an Internet Go-Between

Raising Capital with an Internet Go-Between Entrepreneurs often come across finance brokers of various kinds, including many on the Internet, but I recently met Hall T Martin who founded TEN Capital in Texas. Hall T has created an organization that has been very successful in raising capital for new ventures in Texas. I forecast that we will see more of this kind of new Go-Between, elsewhere in the United States or across the globe, if TEN Capital doesn't get there first. What is special abo...

Startups Using Crowdfunding

Startups Using Crowdfunding Two friends have started businesses, one for profit and one a non-profit, that combine crowdfunding with other techniques. One in the US and one in Europe, and in totally unrelated fields. The first concerns nature conservation and the second concerns the maker movement. What is interesting is how both have used the process of social media and crowdfunding to go about changing the world in their separate spheres. Just like how manufacturers of wind turbines use sim...

$1.2 million a day

$1.2 million pledged daily at Kickstarter Entrepreneurs cannot avoid considering Kickstarter for startup funding, now that they pull in more than $1.2 million a day in pledges. This is especially true for small tech startups. Crowdfunder Kickstarter had 4,497 projects successfully reaching their funding goals from January through March, 2014.  One billion dollars have been pledged to Kickstarter projects, as of March 4. But they are not alone. Crowdfunding is now one of the most significant so...

Startup Funding is a Scary Business

Startup Funding is a Scary Business Startup Funding is a scary business. That's why many entrepreneurs shy away from introducing external capital, for fear of diluting their equity stake. Others go down that route and regret it. Some try to jump on the wrong source of funding at the wrong stage. To understand something is to render it less scary. Entrepreneurs who are passionate about their product or serving the needs they have identified know what they are doing in those domains, but once the...

Crowdfunding Growth Is Huge

Crowdfunding Set to Grow 92% in 2014 Crowdfunding Growth is Huge. In the past 5 years the crowdfunding industry has undergone remarkable growth – estimated to be around 1,000% – while, at the same time, it has provided around $10 billion in funding to startups and small businesses. The crowdfunding industry’s exceptional growth is not likely to slow down this year either, since, according to early forecasts, the market is expected to grow by an additional 92%. The main drivers for this year’s...

Crowdfunding Meets E-commerce

        Inspired by a family history for entrepreneurialism and with fresh ideas on micro-financing from his time at Business School at Westminster University, Alessandro Rovati and two childhood friends, Francesco Fumagalli and Francesco Gatti, developed an idea for an e-commerce app that allowed users to invest in pre-production product concepts. Crowdrooster.com was the result.  The idea quickly evolved beyond a product-centric app into a crowdfunding community. A c...

Ten Thousand Projects Financed

Ten Thousand Projects Financed In 2011, the year of Kickstarter's second birthday, the crowdfunding site recorded nearly 11,836 successfully funded projects (about 44% of all the projects submitted) with more than $99 million pledged. The year showed phenomenal growth over the previous one when 3,910 successful projects were launched with $27 million pledged. Kickstarter is already the world's largest funding platform for creative projects. The majority of projects on Kickstarter are cr...

Entrepreneurship crowdfunding dream is coming true

Entrepreneurship crowdfunding dream is coming true The US House of Representatives has passed, by a walloping majority (407 t0 17), the Bill called HR 2930: Entrepreneur Access to Capital Act. It now needs to pass in the Senate, but is hardly likely to fail. This new legislation is very important for the vast majority of entrepreneurs seeking to raise up to $5 million in equity funding, by means of crowdfunding. Crowdfunding is a way of raising relatively modest sums of money on the Intern...

Crowdfunding may get a Congressional boost

Crowdfunding may get a Congressional boost In September, President Obama included a crowdfunding exemption in his proposed jobs bill, and there is a bill in congress (HR 2930 McHenry) that proposes a very similar exemption.  It is elegant in its simplicity! It includes  provisions that: creates a crowdfunding exemption from the federal registration requirements for offerings of up to $5 million with each investor investing a maximum of the lesser of $10,000 and ten percent of the investor'...

Raising finance meets brand marketing

Raising finance meets brand marketing Profunder.com, the brainchild of Jessica Jackley, co-founder of kiva.org, it the tip of a silver-lined iceberg. Crowdfunding is a significant way to go for people who want to start a business. Crowdfunding is using the Internet to pitch your project to a mass audience, or just your friends and family. Raising money for your startup can be a huge and often unsuccessful effort. Crowdfunding, crowd finance or raising crowd capital can be a much mor...