Category: Crowdfunding
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Predicting success of small business crowdfunding campaigns
The ability to forecast success of a proposed crowdfunding campaign is becoming more important in the practice of advising small businesses today in both the for-profit and nonprofit sectors. I spend an increasing portion of my available reading time on this topic, including a book on my iPad right now “Social Startup Success” by Kathleen…
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Invest Like a Venture Capitalist
One of the most overlooked tax savings strategies is to avoid federal income taxes on large capital gains. Allowing investments to grow tax free over decades can result in tremendous growth in wealth and is one of the most reliable paths to a tax-free retirement. This tax-free capital gain tax strategy is employed by almost…
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Charging bull and defiant girl at the bayshore
This sculpture exhibit and the associated story in The Wall Street Journal this week perfectly symbolize for me where we stand today in the evolution of humanity. It strikes a chord with me personally having transitioned from Wall Street to environmental advocacy and now facing the threats of institutional power. This week the small business…
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Crowdfunding update at year end 2016
Yesterday the National Law Review published a concise and useful update on Regulation CF crowdfunding written by Samuel Effron. The article summarized the results of the first six months of Regulation CF crowdfunding (July – December 2016). I exchanged emails with the author. We agree that crowdfunding is still in its infancy and we have too…
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Another risk for crowdfunded products
Crowdfunding Insider warns that if a successful crowdfunded product is easy to copy, it will be copied and offered at a lower price by Chinese manufacturers. The risk is that crowdfunding companies put their best ideas online for public viewing before they have any developed markets or brand loyalty. Customers who found them online can…
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Small business equity crowdfunding video
A good introductory video explaining small business equity crowdfunding by NextGen Crowdfunding. (At least, IMO, it is as good as a video that consists solely of a lawyer and a business guy in blue blazers sitting talking to each other can be). The 10 minute conversation recorded last fall covers many important points including a short…
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Evaluating the risks and rewards of small business crowdfunding
I’m now loosely tracking 17 activity different US-based small business crowdfunding portals. This excludes all the portals intended for personal or charitable crowdfunding that would bring the total to 31. The number of investment options continues to grow and the field continues to grow more complicated. The risk to investors remains high and grows in…
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More warnings of crowdfunding fraud
“There was a time when a fool and his money were soon parted, but now it happens to everybody”. Yesterday GrindTV ran an article about more crowdfunding fraud. Investment without responsible independent financial oversight leads to disaster. That’s why the accounting profession exists. Investors simply need a healthy dose of reality here. The most basic…
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Arizona small business crowdfunding
Arizona joined the growing number of states that allow small business equity crowdfunding within its borders on terms that do not violate federal securities laws. The state’s new small business crowdfunding law went into effect this month. FundMyBusinessAZ.com is a site that operates under a new law signed by the governor that paved the way for…
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Another reason to stay clear of GoFundMe
In a post titled “Fraud in Crowdfunding” I’ve written about the ridiculously high rate of fraud on GoFundMe campaigns. Some third-party evidence suggest that the majority of campaigns on that site involve some type of fraud, deception or mismanagement. The scams reported target both the project sponsors and those who fund the projects. Simply put,…