Crowdfunding A Successful Way Of New Venture Financing

There are plenty of crowdfunding platforms and all of them seem to provide a great possibility for inventors, entrepreneurs and creatives to reach out to their audience for financial support for their new projects or ideas. "Crowdfunding - A successful Way of New Venture Financing?" is providing an overview over the main elements of the new venture creation process, with a special focus on crowdfunding, the different crowdfunding models and their success factors. Who is an entrepreneur? Are there different types of entrepreneurs? Which are the important resources for a new venture and how can entrepreneurs use crowdfunding as a tool to successfully fund a new venture? What are common funding possibilities for a new venture and what role plays crowdfunding? What was the main difference between crowdfunding financed new ventures that failed after the crowdfunding campaign and the new ventures that managed to become a successful operating company? This book, written by Alexander Pascal Borner, combines everything and is focused on identifying the key elements for the success of crowdfunding-financed new ventures.

THE GROUNDBREAKING NEW METHOD FOR RAISING VENTURE CAPITAL THROUGH SOCIAL NETWORKS “The declaration of independence for our industry!” —MAT DELLORSO, WealthForge Inc. “The Crowdfunding Revolution should be on the mandatory reading list for everybody active in the industry or for everyone who’s planning to be.” —CROWDFUND NEWS “Kevin Lawton and Dan Marom have done a great job. . . . A must-read for everybody entering the field of crowdfunding!”—GIJSBERT KOREN, Smarter Money “We recommend this book highly to anyone who is fascinated by this new methodology for funding projects and endeavors. . . . A wonderful read.” —BRIAN MEECE, RocketHub “Read this book if you want to catch the next wave!” —FRED BRYANT, WealthForge Inc. “A must-read for anyone interested in the early stage funding process.” —MANDAR KULKARNI, pluggd.in “The Crowdfunding Revolution offers fundraising inspiration for small business owners and aspiring entrepreneurs.” —BUSINESS2COMMUNITY “The Crowdfunding Revolution offers fundraising inspiration for small business owners and aspiring entrepreneurs.” —SMALL BUSINESS TRENDS YOUR POOL OF INVESTORS JUST INCREASED BY 2 BILLION . . . Since the day the first human being approached a prospective investor, the province of capital allocation has been controlled by a small and entrenched minority. All this has changed. Now, the power of the Internet—particularly social media—enables anyone to connect with more investors in less time than it used to take to connect with one. The investing pool is open, everyone is in—and The Crowdfunding Revolution shows how to get to the forefront of the new world of venture financing. This groundbreaking guide explains how the explosive growth of connectivity is obviating human-to-human networks and centralized planning of capital allocation—and describes how crowdfunding can be used to tap into a “collective intelligence” for far superior results. Providing a wealth of information that will make your crowdfunding efforts more efficient and productive, the book is organized into three thematic sections: THE ROAD HERE: A thorough overview of what crowdfunding is—and how and why this radical new approach is replacing traditional means of venture financing THE CROWDFUNDING CAMPAIGN: Proven methods for marketing to the crowd, setting clear objectives, building a crowdfunding team, and communicating in a way that inspires action THE ROAD AHEAD: The crowdfunding ecosystem, intellectual property issues, mining collective IQ, new investment models, and regulations More than 2 billion people globally are now active online—and that number is guaranteed to grow at an extraordinary rate. The Crowdfunding Revolution explains all the ins and outs of raising investment capital by using social media and new technologies to draw small sums of money from an almost countless number of sources. Organic. Transparent. Decentralized. This is crowdfunding. This is the future. Read The Crowdfunding Revolution and become the first expert in your crowd on this radical new approach poised to supplant age-old venture financing methods.

Secure Funding to Start, Run, and Grow Your Business! Starting a business is a journey. From the moment you come up with an idea for the next great product or service to the ribbon cutting and grand opening, you will travel a long, sometimes winding, road toward success. And like any other trip you take in life, this one costs money. While many startups begin with cash already in the bank (lucky them!), most aspiring entrepreneurs have to somehow come up with the cash to build their dreams, whether they choose to borrow, bootstrap, crowdfund, or go with venture capital. Discover: Bootstrapping tips and strategies to help you self-fund your business like a boss Traditional lending options and costly traps to watch out for The basics of borrowing from friends and family, the right way How corporate incubators and accelerators can give your business a jump-start The in and outs of launching a successful crowdfunding campaign Get the inside scoop on how to get the money you need and discover dozens of sources of capital.

A groundbreaking book on the growing trend of crowdfunding Crowdfunding has gained considerable traction over the last few years. By combining the Internet/social media with equity-based financing, it is poised to usher in a new asset class that will change how early stage and small business financing transactions are consummated. Author Steven Dresner, Founder and CEO of Dealflow.com, understands the nuances of how crowdfunding can help companies gain much needed access to capital, and now he shares those insights with you. Engaging and informative, this book will serve the needs of a global audience comprising entrepreneurs, financiers, and other professionals. It skillfully addresses the market dynamics that are catapulting crowdfunding into the mainstream and explores essential issues ranging from planning an online campaign, post-transaction management, and business planning to securities law and tax issues. Puts the business of crowdfunding in perspective with a look at the current marketplace, overview of important data, and legitimate concerns Examines effective techniques for communicating with the crowd Details equity-based financing and other sources such as debt instruments Contains contributions from a wide array of individuals involved in the worlds of finance, law and accounting, social media, marketing, as well as DealFlow Media's own staff Crowdfunding affords-start ups and other smaller businesses better access to capital via the Internet/social media. It also allows an investor of any size to back a business of their choosing. This new book will show you what this process entails and how it can benefit everyone involved.

An increase in the restrictions on the availability of funding for new and growing businesses in the aftermath of the global financial crisis has been accompanied by the emergence and growth of crowdfunding as an alternative method of raising capital. Crowdfunding contributes towards the disintermediation of the finance market as funders and promoters are brought together directly, democratising both fundraising by businesses and investment by individuals. This book extends entrepreneurial finance research to the study of crowdfunding. Contributions review the history, status and future of crowdfunding, analyse the patterns of fundraising, assess the potential of crowdfunding for the financing of social ventures in particular, and discuss the regulatory implications of recent developments. What is clear from this collection is that the crowdfunding space is still evolving, institutional forms are still developing as models are refined, new institutional collaborations (e.g. between equity platforms and business angel networks) are emerging, and new challenges, particularly regulatory challenges, are being encountered. While crowdfunding is not a universal solution for SME finance in a post-crisis financial landscape, it remains too early to determine whether crowdfunding represents a large-scale transformation of the early stage risk capital market or a minor addition to it. This book was originally published as a special issue of Venture Capital.

This accessible text provides an insight into the growing global trend of crowdfunding as a source of entrepreneurial finance. Grounded in academic literature, this book looks at the micro and macro issues within crowdfunding, from the entrepreneur’s access to finance at the business level, to the role of government in regulating the market. It helps the reader develop a sound understanding of crowdfunding as a source of finance, the crowdfunding process and potential options when faced with start-up funding issues. A range of international case studies of successful and unsuccessful crowdfunding campaigns help readers to apply theory to real-life scenarios. Readers are also supported throughout the book with chapter objectives and summaries, key terms, discussion questions and further reading guidance. Instructor materials such as slides and test questions are available as digital supplements. Crowdfunding and Entrepreneurship will be a valuable resource for students of new venture creation and entrepreneurial finance, as well as entrepreneurs exploring crowdfunding as an option for business development.

Bachelor Thesis from the year 2018 in the subject Business economics - Investment and Finance, grade: 1,0, University of Mannheim (Chair of Strategic and International Management, Prof. Dr. Matthias Brauer), language: English, abstract: The landscape of entrepreneurial finance is currently subject to a process of transformation, driven by globalization, technological advancements, regulatory adjustments, and the emergence of winner-take-all markets. These factors jointly pave the way for new forms of financing, which differ significantly from traditional forms in terms of investor structure, experience, and behavior. To analyze how startups can ensure financial coverage in the light of these changing conditions, this review compares strategies of attracting traditional and new types of investors from a signaling perspective. In business practice, this topic is highly relevant, as many young startups require substantial amounts of external capital to grow, but often have no objective firm data to provide to investors. Thus, the selection of effective “soft” signals about startup quality, preferably aligned with the preferences of the respective investor group, can decide about short-term survival and long-term performance. Findings include that the most promising signaling strategies for traditional forms of financing are based on startup characteristics, i.e. what a firm is. In contrast, the most effective signals for new forms of financing are based on startup actions, i.e. what a firm does. Moreover, while personal networks have been found to be highly relevant for traditional forms, online networks increase the funding prospects for new forms of financing. Through a consolidation and analysis of the current state of research in leading management, entrepreneurship, and finance journals, this review aims at providing a comprehensive overview of the issue and identifying avenues for future research.

The integration of technology into entrepreneurial initiatives has led to the use of online communities to raise funds for projects and ventures. Through the use of social media platforms and the social web, crowdfunding has provided an innovative, large-scale fundraising solution for both personal and professional initiatives. Strategic Approaches to Successful Crowdfunding brings together a collection of research-based chapters relating to the use of the social web to raise funds and provide financial support for start-up companies, individual pursuits, and philanthropic endeavors. Focusing on a diverse set of topics relating to e-commerce, capital investment, peer-to-peer lending, digital philanthropy, and virtual communities, this timely publication is an essential reference source for academicians, researchers, professionals, and graduate students interested in understanding the dynamics, best practices, and managerial solutions for drawing funds and financial support from online communities.