Tuesday, May 10, 2016

How Can Crowdfunding Help Entrepreneurs?

On May 16, new SEC rules become effective allowing businesses for the first time to provide equity to investors through crowdfunding platforms. Given uncertainty in the funding market for startups, these new rules could be extremely useful to entrepreneurs. How? A new infographic published by the Office of Advocacy using previously unreleased research shows you how.

Early-stage funding is critical to the survival of innovative startups. Venture capital markets are a primary source of early-stage funding, but they are moving away from financing new startups.
However, crowdfunding offers startups unique fundraising opportunities to help them withstand this negative momentum. In addition to raising capital, crowdfunding can establish an audience for a product or service; both things strengthen an innovative startup, making a risky investment worth a second look from VCs.

See the infographic here.

New Advocacy Report: The Effect of Crowdfunding Performance and Outside Capital.

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