Equity Crowdfunding Blog

Author Archives: Emily Neuherz

Five Predictions for Equity Crowdfunding in 2014

Just some years ago the term “crowdfunding” was a foreign concept to many people who didn’t understand this new and alternative way to access capital. However, today the word has now become a part of the everyday business vernacular. In fact, businesses last year raised more than 5.1 billion dollars worldwide using this practice.

The Three Types of Equity Crowdfunding

crowd funding word cloud

Because most people tend to associate the term “crowdfunding” with platforms like Kickstarter and GoFundMe, many people assume that equity crowdfunding platforms (ECPs) operate just like they do. There are some similarities between those platforms and ECPs, but at the end of the day, sites like those don’t provide investors with a material return on investment.

3 Challenges Facing Equity Crowdfunding Sites

black-enterprise

The SEC released its proposed rules for Title III of the JOBS Act this past October that will eventually allow average investors to participate in equity crowdfunding for the first time much as they would on E*TRADE or other self directed investment platforms. These rules will come into effect sometime next spring.

While this new legislation will open the doors for a wider base of investors and revolutionize access to capital, it will now also present unique challenges to equity crowdfunding platforms (ECPs).

Here are three of the top challenges:

Free Research Report on Pandora

EquityNet (www.equitynet.com) has released a new free research report on Pandora Media, Inc. (NYSE: P) that includes 5-year projections, a valuation analysis, a comparison to other media companies, and a complete overview of the company. The full research report on Pandora can be accessed for free at the link below:

Free Research Report on Pandora

To view more free reports for 1,000+ young growth companies seeking investment:

see-reports-for-1000-companies

 

 

First Page of EquityNet Research Report on Pandora:

Pandora-BPA-small

To view more free reports for 1,000+ young growth companies seeking investment:

see-reports-for-1000-companies

EquityNet Helps Develop Program for U.S. Army

The following article is entitled “TATRC’s Technology Transfer/Commercialization Program could be a model for speeding viable medical innovations to the warfighter”.

The article describes how EquityNet helped develop an innovative technology transfer and commercialization program for the U.S. Army Telemedicine and Advanced Technology Research Center (TATRC).

The article and was originally published on Oct 6, 2012 in the US Army AL&T Magazine. The article was written by Ronald Marchessault Jr., Dr. Charles M. Peterson, and COL Karl E. Friedl.

Crowdfunding Industry Presentation

EquityNet’s founder and CEO Judd Hollas authored this presentation to aid in discussions of the rapidly emerging crowdfunding market. This slideshow explains the basics of crowdfunding and how it can benefit the fund raising efforts of entrepreneurs.

Topics include: • What is crowdfunding and how did it originate? • What impacts will crowdfunding have on entrepreneur fund raising efforts? • Crowdfunding success rates, including % funded, amount, and timing? • How to make crowdfunding a market success?

How to Make Crowdfunding a Success

Congress just passed the most significant legislation affecting entrepreneurs and investors since the Glass–Steagall Act back in the Great Depression over 80 years ago.  The groundbreaking Entrepreneurs Access to Capital Act, aka “Crowdfunding,” passed the House on March 8 and was included in the JOBS (Jumpstart Our Business Startups) Act that the Senate passed on March 22.

Crowdfunding connects large populations of entrepreneurs and investors in online marketplaces to offer businesses better access to investment capital.  It is a real game-changer for an industry that controls trillions of dollars of investment capital and that is the lifeblood of every young U.S. business, as well as the economic and social benefits these businesses engender.

A Comparison of Angel Investors and Venture Capitalists

Legendary Venture Capitalist John Doerr of Kleiner Perkins

Every year 20 million Americans are involved in starting or growing a young business.  Many of these entrepreneurs seek capital from equity investors – either Angel Investors or Venture Capitalists.

There are more than 1,000 Venture Capital firms operating in the U.S. managing over $1 trillion.  There are more than 2 million Angel Investors who control an additional $1 trillion in capital.  Between the two groups, they invest around $50 billion in young businesses each year.  Interestingly, this is only 2.5% of the total $2 trillion in capital under management.