The United States appears to be experiencing something akin to the California gold rush by way of gifted entrepreneurs championing unique and previously inconceivable startup companies centered around truly innovative and genuinely interesting ideas and practical applications. An incredibly interesting facet of Obama’s JOBS Act sets to make a proverbial “wild west” of these ideas and endeavors. However, according to Entreprenuer, “equity crowdfunding is best for suited individuals who are attempting to raise large amounts of money.”
Concord Monitor shares that any potentially interested investor can lay a claim on equity within a private company seeking to be funded via equity crowdfunding. Though there are limits on investing capabilities monetarily, equity crowdfunding seeks to effectively bridge the gap between seeking powerful investment money and attempting to amass liquidity through kickstarters and fundraisers.
As far as pure profit is concerned, equity crowdfunding doesn’t appear to be a trade in which people can frequently hope to get rich overnight. Yet, as this industry continues to play out and evolve, individuals can invest in utilizing consultants in order to dually simplify the entire process and attempt to maximize profits. The employment of this consultant completely depends on which type of experience investors are seeking and exactly how much money they’re willing to spare for this cause.
Equity crowdfunding, at its core, provides intrigued investors a chance to get behind and immediately become involved with a company or product they truly believe in and have a desire to assist in. Clearly, those who benefit the greatest from this trading function are those spearheading or heavily involved with these budding businesses, as they are receiving desperately needed funding through those who often genuinely believe in the validity or practicality of what they’ve put their time into constructing.
In the age of technology, equity crowdfunding is rapidly transitioning into a rather streamlined process through the crowdfunding platform, Crowdcube. Crowdcube recently announced an upcoming iOS app which will simplify this uncharted land of opportunities, allowing users to view business pitches, receive notifications for newly-available opportunities and other features which are set to make equity crowdfunding a user-friendly scape wherein investors are encouraged to support fledgling and intriguing concepts at the ground level.
This article was written by Michelle Guilbeau of Examiner.com for CBS Small Business Pulse.