By JEAN EAGLESHAM
Investment Bankers have traditionally been the gatekeepers of access to the capital markets.
Investment banks will no longer be the gatekeepers to access to capital markets.
In this interesting article , Forbes asks the question ‘Is the Crowdfunding Bubble About to Burst?’ At SoMoLend, we certainly think so! We love that Forbes is recognizing the power of crowdfunding and the impact it will have on small businesses nationwide.
The Obama administration, not surprisingly considering its own success in gathering small donations during his campaign for the presidency, is supporting crowdfunding, a financing model that relies on collecting small sums of money from many people over the Internet. Crowdfunding has the sort of populist, common-sense appeal that resonates with free-market libertarians and champions of the working class. By marrying online social networks with finance, this model offers a more democratic model of finance, in which individuals can directly fund other individuals or businesses that they deem worthy, without going through a bank or Wall Street middleman.
Back in the gold rush days, the smart people were not the ones heading for the hills to dig holes.
A few weeks ago we did a piece about Ian Schuster lobbying congress to pass a crowd-funding initiative.
A proposed change in US legislation would allow everyone to invest in start-ups FANCY investing in the next Twitter? Or putting some money behind the new Facebook?
College can be stressful and time consuming, so how can you manage to continue your education and build a business? Well you actually have a lot more advantages than you may realize, and if you go through with it, you wouldn't be the first startup to start from a dorm-room. And, now that crowdfunding is main-stream, you really have no excuse not to try.
Change · Lending A new bill on the block will take crowdfunding (like that of Kickstarter.com ) and gives it a serious boost, allowing any Joe to invest in new businesses.
Image from Smallbiztrends.com
There are three main ways you can crowdfund. Here's a quick rundown.
Je zoekt 20.000 euro funding, maar krijgt geen lening van de bank en een investeerder vinden lukt ook niet zomaar.
Raising capital for a business or expansion of an existing business through a working capital loan from a bank or an equity investment stake is a tedious and often unsuccessful process.
TOP CROWDFUNDING ARTICLES
Interested in Open Innovation & Crowdsourcing? Follow Open Innovators on twitter or subscribe to the Open Innovators RSS feed!