THE SECRETS BEHIND CROWDFUNDING

I’ve been involved for the first time in a project for a crowdfunding platform and felt really excited about it. However what will be the next step? How to persuade investors? It’s worth to consider some tips that should be the guideline for everyone who starts this business . Firstly be aware of fake investors. Second, raising capital should be a step step process, avoiding to do it fully in one time. The strategy would be to have a small investment at the beginning based on crowdfunding and retaining more ownership thank’s to raising money when there is a real need. The main advantage is that there are a lot of equity owners  and it’s easy to attract consensus, however it’s hard to manage the human and emotional side. As result of it, in some situations investors with few rights can be converted in majorites and In addition, It’s really important to look at the relationship between financial implications and future rounds. Some tips may considered regarding crowdfunding and incude analysing if the main platforms (Kickstarter, Indiegogo), have a rating system for crowd investors. Moreover, other important thing is to determine their rights and finally  it’s necessary to build a transparent and accurate communication ’cause it would add the business more value and more effictiveness The Jobs Act (Jump start our business start up) provides a legislation that recognizes the rights of fair use for crowdfunding investors, while facilitating the formation of capital between them. In addition, people with lower income are included as potential investors and the final goal would be to increase of employment opportunities. Many law firms, especially in America have becoming to support the these new technololgy  in terms of sponsorship. Not everyone will succeed in this business but a few minds will and the secret will be to have a deep look at the intellectual property rights (Patents, Trademarks, Copyright, Trade Secrets) before disclosing an original project.

robertson/crowdfunding-jobs-act-what-to-know-before-you-raise-money.html

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