Crowdfunding Still Wild Wild West
As you know, I teach entrepreneurship and one of the classes I teach is Venture Funding. While we delve into the VC world, we know that that is not the path of the majority of ventures. So we look at all the options both dilutive and non-dilutive.
As I was teaching that part of the class, I realized the option I knew least about was Crowdfunding, So I enlisted the help of my class to crowdsource, if you will, a better understanding of the vehicle and where it fits into the start-up funding landscape.
In the end, the most significant conclusion we were able to draw is that crowdfunding is still very much in it’s infancy and anything goes (for now). As we wait for the legislation from the SEC (and later the court tests) that will shape what this looks like, it is unclear whether crowdfunding will reach it’s full potential – lower barriers to equity for start-ups.
As it stands now, Our conclusions were that currently the major players are Kickstarter and Indiegogo.
Go Get Funding
How does it work
How much do they charge
What kinds of projects get funded
How much is being raised? Biggest? Smallest?
What are people giving away
Any insights as to what is popular on this site or what works?
Do some meta research/reviews (What is your site good for/what is it not good for?)
Examples of successes
- ·Have 1 person do some research into the JOBS act. Where are we with being able to use equity.
- ·Have 1 person look into best practices for marketing. May need to be just for the top sites.
- ·Have 1 person someone look into watch-outs or negative press. Why you would not want to use crowdfunding.
- ·Have 1 find us a list of crowdfunding successes and/or personal stories of “how they did it”