Today, We Can Crowdfund Virtually Anything, Even Dreams
Today, we are in the Crowdfunding Era, an era where anyone with an idea or a concept can reach out to a limitless number of people to ask for funds.
The Big Q: Are you aware of the many advances that have been made, in the way people can conduct their businesses lately?
The Big A: There is currently so much information available via the Internet, that one can now do business and leverage affordable and sophisticated technology and tools via the Cloud, which can even allow you to compete with the big guys.
Perhaps one of the biggest changes is how businesses finance their growth these days, that is by crowdfunding.
And you can crowdfund your dreams with us.
Listen in (above) to find out more about what a NY-Ts best selling author calls the “Democratization of Lending.”
Real innovation is happening in pockets of activity scattered across the worldwide web.
The Big Q: What drives investors to put money at these projects?
The Big A: In Y 2016 there were multiple 7-figure crowdfunds, with some picking up many millions of dollars or the bitcoin equivalent, since bitcoin and other cryptocurrencies are a means of investing in some of these initiatives. As it is a truly international currency and with no controls on its movement or deposit limits, Bitcoin is the ideal way for investors all over the world to get involved.
This is a leading-edge sector and these are projects that would not have been possible just 5 years ago.
There is a Buzz for investors about being at the forefront of this democratic capital movement.
The sector has changed a lot in the last year, becoming more professional raising in the millions of dollars internationally
Nowadays the successful projects have a lot more information about the technology, the developers’ experience, and much better marketing.
The more transparent and professional a firm and its Team, the more they are likely to raise.
Crowdfunding Vs Securities
One of the major changes of the past years has been the evolving regulatory framework. Lines have been drawn between what is acceptable and what is not.
Crypto-tokens come in many different forms, some clearly are securities; they pay dividends or represent a share in the company.
Today, a solid White Paper includes both technical and business case, is the a starting point.
A professional website and marketing operation is Key if it does not look professional, it’s probably because it’s not and investors recognize that. Some or all of the developers and Team should be open about their identities they should publish their CVs or LinkedIn profiles and ensure there is no doubt they are who they say they are and that there’s full accountability.
Crowdfunders should have relevant and proven experience, and a strong track record in their chosen business area. As reputation counts for a lot in this world, far more than qualifications or education.
They should also be prepared to engage directly with the community, on Slack and message boards, and in videos and Ask Me Anything sessions.
All of this is really entry-level stuff for, and any project unwilling to do this will raise a Red Flag in the minds of participants.
With the growing regulation around this sector and savvier participants, there are fewer scam projects.
One alternative is a decentralized reputation system.
It is a community-based Know Your Customer process. It’s not perfect, but nothing is and it offers a different model to the traditional regulatory one, which does not work well in this sector.
We are really just at the beginning of this, and the future promises to be a big for Crowdfunding.
Have a terrific weekend.