The easy way to get started in crowdfund investingCrowdfund investing (CFI) is going to be the next big thing on Wall Street. U.S. investment banks, brokerage houses, and law firms are gearing up for the creation and regulation of new financial products that will be available to the general public starting in early 2013. The introduction of these products will revolutionize the financing of small businesses and startups for these key reasons: Entrepreneurs and small business owners, who have had difficulty obtaining capital through traditional means (such as bank loans and angel investors) in recent years, will have access to investors around the world through social media.For the first time, investors (so-called "unqualified investors") will be able to purchase an equity stake in a business or new investment vehicle.The Securities and Exchange Commission (SEC) is overseeing the creation of online portals that will allow entrepreneurs and small investors to connect. When these portals go live in 2013, "Crowdfund Investing For Dummies" will be on the front line to educate business owners, other entrepreneurs, and investors alike."Crowdfund Investing For Dummies" will walk entrepreneurs and investors, like yourself, through this new investing experience, beginning with explaining how and why CFI developed and what the 2012 JOBS says about CFI.Entrepreneurs will find out how much funding they can realistically raise through CFI; how to plan and launch a CFI campaign; how to manage the crowd after a campaign is successful; and how to work within the SEC's regulations at every stage.Investors will discover: the benefits and risks of CFI;how much they can invest; how a CFI investment may fit into a broader investment portfolio; how to provide value to the business or project being funded; and how to bow out of an investment when the time is right."Crowdfund Investing For Dummies" is an indispensable resource for long time investors and novice investors alike.
This is a good primer on crowdfunding written by the same people who brought the US legislation. It is a little US centric, but my main quibble is that it has dated a bit. The book was written before equity crowdfunding started for real, so what the authors describe is a little idealised. Its not to say that what they say is useless - much still applies - but only that the market has evolved and is perhaps a little different now.
Although the title suggests it is about investing, most of the book is for people who are raising funds. The section on how to invest was particularly thin. I'd like to see an updated second edition, rather than this one.
Great overview of crowdfunding from the guys who seem to have brought us the JOBS Act. Covers a lot of aspects of crowdfunding specifically but it seems to largely be relevant to anyone seeking funding and also for people investing in crowdfunding campaigns.
This book is related to another post I did on Kickstarter which can be found at http://scratbag.me . Crowdfunding is getting people together online to either invest in your business or give to your charity. Usually you either give them a portion of your business, much as with venture capital or with smaller amounts give them a gift like a signed book. The law in America to allow crowdfunding went through in 460 days from its inception which is relatively fast. At that time banks were heavily reducing how much they lend to businesses due to the recession. Crowdfunding requires a certain transparency in running the business as you normally have to let investors know even if you make a serious error. It levels the playing field between corporations and start up businesses. If you can convince people you have a good idea, the world is your oyster, There is a list of crowdfunding websites at http://crowdfundprofessional.org & there is a crowdfunding website at http://crowdfunding.com. Often people like musicians and authors can get books and albums financed on these sites. Something good about crowdfunding is if someone is a fraudster word gets around these sites quite quickly. Also there are websites that enable investors to lend money to projects in the developing world and generally a high proportion of these are paid back. Normally if you invest in a company you must hang onto the stock for at least 12 months and in practise it's normally a lot longer. Also the stock is often difficult to resell. I did enjoy this book and I think it appears quite accurate in what it says.
If you are looking for a way to get rich through crowdfunding, Crowdfund Investing for Dummies is NOT the book for you. It is an honest look at Crowdfunding and has sections for the investor and the entrepreneur. The authors, Sherwood Neiss, Jason W. Best, and Zak Cassady-Dorion, developed the framework used in the 2012 JOBS Act, which set legal guidelines for crowdfunding.
The book starts with a brief history of crowdfunding, as well as the 2012 JOBS Act, and gives a good description of what it is. Then it presents several chapters for the entrepreneur, detailing how to launch one's great idea into a crowdfunding venture. The final chapters are for the investor, detailing the regulations involved, the pitfalls, and the pleasures.
I was vaguely interested in the possibility of crowdfunding. Silly me, I thought I just had to throw money at an entrepreneur, and if the great idea truly was a great idea, I could then wait for the dollars to come in. I didn't realize that I may be expected to help market the idea or provide other types of support. Crowdfunding is not a passive activity.
I am really glad I read this book. I haven't decided yet if I will actually do some investing in this manner, but I feel much more informed about what will happen should I choose to do so!
To start off, I just didn't quite "get" the whole concept of crowdfund investing. It was so...different...that I wasn't sure if it was fish or fowl. Its a new way of funding projects & startups that may not qualify for "traditional" funding. It uses social media too, and in a different way than most of us do. Most importantly, like all "For Dummies" books, it explained the concept in clear terminology.
While I'm not embarking on the reinvention of the pet rock, and have nothing in the works for crowdfunding to come into play personally, I feel much better understanding the concept. It's also a way for the "little guy" to make a difference with a relatively small investment, and then help fund something that is near and dear to them. I really like the concept once I understood it better.
Once again, a "For Dummies" book has prevented me from being the dummy. I'm glad I got the book, and it is definitely worth reading, even if you are not an entrepreneur or big time investor.