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What is Crowdfunding?

Crowdfunding

FAQ

The Executive

Crowdfunding is an alternative way to raise capital for start up or existing businesses. Crowdfunding is not a new concept, but it has gained serious momentum in the past few years when the economy slowed and banks started to show reluctance in their lending and make it almost impossible to get a loan. As opposed to receiving capital via a bank loan or from a single investor or a venture capital group, Crowdfunding pools together money from the "crowd". Entrepreneurs find backers to support their product or service and this collective group of backers pool their money together (normally through an online portal) until the company or project is fully funded.

Crowdfunding does not replace or compete with angels, vc's, or banks, but rather fills in the missing segment of the start-up lifecycle cash flow effectively.

CrowdCo's are companies, startups or existing organizations seeking to use the processes of the Crowd in developing, funding, and selling their product or service. CrowdVestors are individuals who invest in some sort of crowdfunding (donation, pre-sale, perk, loan, equity).

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CrowdVesting - describes the act of investing (all forms) in the crowdfunding arena. The following key statement will guide and direct all decisions in this area: CrowdFunding enhances the CrowdCo by combining two critical early lifecycle events - seed capital and market assessment. Crowdfunding is a capital formation approach that reduces risk, increases market awareness, and provides advantages not available in other capital formation processes. Typically the CrowdVestor or backer, is an individual investor more concerned with a given product, service, or cause than with a purely profit motivated speculative investment. Therefore backers are uniquely aligned with the purpose of the organization seeking the funding.

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