Equity Crowdfunding For Investors

Learn the ins and outs of equity crowdfunding with this informative guide Equity Crowdfunding for Investors is a comprehensive, objective, and authoritative guide to the social and financial rewards of crowdfunding. Before now, angel investing – and the spectacular returns possible in this asset class – has been off-limits to all but the wealthiest Americans. Now equity crowdfunding portals allow the general public to buy shares in startups and fast-growing private companies for the first time in generations. This book provides the guidance individuals need to invest wisely, tempering the excitement of leading-edge technology, innovative business models, and exciting new brands with thorough, practical know-how – including investor limits and requirements, portfolio strategy, deal terms, and much more. Readers will learn the pros and cons of investing in equity crowdfunding so they can make an informed investment decision, as well as best practices for finding, researching, evaluating, and buying into potentially profitable startups. Digital components include tables, graphs, comparison charts, screen captures, checklists, and other tools that further enable readers to make suitable investment choices. Equity crowdfunding is a new, exciting, and evolving way for growing businesses to raise capital and for average investors to buy equity in those businesses. It has been hailed as a "game changer" in the private capital markets, particularly the angel investment asset class, which includes angel investing. This book shows readers how to take full advantage of this new avenue of investment, without being taken advantage of themselves. Make smarter investment decisions Avoid being ripped off Find the best information available Understand the SEC rules and limits Equity crowdfunding can produce huge returns. It also comes with huge risk. Some companies will succeed, but many will fail. Everyday investors can mitigate some risk and increase their chance of profit with the fundamental insight provided in Equity Crowdfunding for Investors.

Equity crowdfunding is a new way for seed stage start-ups to generate initial capital and, as such, raises questions around the choices made by investors within this area. Understanding it is important for investor protection, as investors are generally unaware of the factors that can influence their decisions. However, investing in equity crowdfunding places the investor in a unique decision-making framework, in which resources such as images, videos and storytelling are all mobilized by entrepreneurs and platforms as tools of persuasion. This context thus seems to favor more holistic and emotional decision-making, rather than a process that is rational and analytical. Volume 1 presents a transdisciplinary theoretical analysis, combining different fields within the social sciences, primarily finance, marketing and psychology. In this second volume, an explanatory model is developed on the basis of this theoretical framework, which is then empirically tested using data from laboratory experiments. This book also proposes the original theory of emotional matching, which is both justified and substantiated. It personalizes behavior and offers a new perspective based on project characteristics and investor preferences.

When Facebook went public on the Nasdaq in 2012, many of Facebook's 3,000 employees became millionaires, and many more were handsomely rewarded for their dedication, commitment, and appetite for risk. The same is true of countless IPOs throughout history from Google to Microsoft. The investors, employees, and partners that "got in early" reached a height of financial abundance that many ordinary folk only dream of. Until recently, these types of startup investments were only accessible by the ultra-wealthy. They were hidden from ordinary investors, like you and me. Put simply, the government prohibited you from investing in early-stage startup companies. You couldn't just log onto an online marketplace and buy shares in the next hot startup, that is, until everyone already knew about it. For a while, investors found these traditional regulations to be satisfactory. It helped protect them from risky companies with experimental prototypes. But, as time went on, that assent turned into outrage. The world watched as companies, like Oculus, created the next generation of virtual reality technology and then got acquired by Facebook for $3 billion dollars. It might sound like a big win, but in reality, none of the 9,522 backers that pledged a total of $2.4 million to the Oculus Kickstarter campaign actually had any equity stake from the transaction. They were pledging or donating money, not investing it. They didn't really get a piece of the action. There's no doubt that the world that we live in has been transformed by companies like Facebook, Uber, Tesla, Google, Amazon, and many more. Now, for the first time in history, you can not only be a part of that change, but you can also profit from it. You can become the next stakeholder in a fast-growing startup company that's on the path for an IPO or major acquisition. This book is your passport into the new world of equity crowdfunding, where startups are raising money online from investors all over the world. You'll quickly learn about all the major platforms, what goes into an offering, tips for investors, and finally, you'll get a simple easy-to-understand breakdown of all of those confusing regulations.

Equity crowdfunding is a new way for seed stage start-ups to generate initial capital and, as such, raises questions around the choices made by investors within this area. Understanding it is important for investor protection, as investors are generally unaware of the factors that can influence their decisions. However, investing in equity crowdfunding places the investor in a unique decision-making framework, in which resources such as images, videos and storytelling are all mobilized by entrepreneurs and platforms as tools of persuasion. This context thus seems to favor more holistic and emotional decision-making, rather than a process that is rational and analytical. This first volume centers on the emotional and axiological determinants of choice. A transdisciplinary theoretical analysis is carried out, combining different fields within the social sciences, primarily finance, marketing and psychology. This state of the art leads to the emergence of an original theoretical framework for understanding investment choices in equity crowdfunding.

Please note: This is a companion version & not the original book. Sample Book Insights: #1 There is a difference between equity crowdfunding and the stock market. With equity crowdfunding, investors are not just customers but also shareholders of the company. #2 Equity crowdfunding is all about investing in a company, which offers a share of its equity to investors in return for money. The companies featured on these platforms are typically seeking funding, with a minimum investment requirement, and a maximum investment cap. #3 Equity crowdfunding campaigns need to come up with a valuation. There must be a great deal more in-depth information about the business model, whereas rewards crowdfunding is more focused on the product - not how much money it will make. #4 Equity crowdfunding is used by startups and growing companies to raise funds for growth. The money is deposited into the bank account of the company, which is used to finance that growth. Some founders want to know if they can use equity crowdfunding to sell some of their existing shares and cash out.

This book focuses on various types of crowdfunding and the lessons learned from academic research. Crowdfunding, a new and important source of financing for entrepreneurs, fills a funding gap that was traditionally difficult to close. Chapters from expert contributors define and carefully evaluate the various market segments: donation-based and reward-based crowdfunding, crowdinvesting and crowdlending. They further provide an assessment of startups, market structure, as well as backers and investors for each segment. Attention is given to the theoretical and empirical findings from the recent economics and finance literature. Furthermore, the authors evaluate relevant regulatory efforts in several jurisdictions. This book will appeal to finance, entrepreneurship and legal scholars as well as entrepreneurs and platform operators.

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.

This open access book presents a comprehensive and up-to-date collection of knowledge on the state of crowdfunding research and practice. It considers crowdfunding models and their different manifestations across a variety of geographies and sectors, and explores the perspectives of fundraisers, backers, platforms, and regulators. Gathering insights from a wide range of influential researchers in the field, the book balances concepts, theory, and case studies. Going beyond previous research on crowdfunding, the contributors also investigate issues of community, sustainability, education, and ethics. A vital resource for anyone researching crowdfunding, this book offers readers a deep understanding of the characteristics, business models, user-relations, and behavioural patterns of crowdfunding.