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5 Equity Crowdfunding Reflections Before You Sign Up

Startup Professionals Musings

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of those demanding angel investment groups and venture capital organizations. In equity crowdfunding, no investor is representing their own interest. Lack of checks and balances on startup valuations.

Equity 411
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Using crowdfunding to validate demand

The Equity Kicker

There is a good post up today on Segment.io describing how they used Kickstarter as a lean startup tool to validate demand. By definition, a successful Kickstarter campaign has a ton of people who’ve already put their money where their mouth is. First the background: Kickstarter is the perfect way to validate an idea.

Demand 156
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[Interview] Michael C. Fillios, Author Of “Tech Debt 2.0™: How To Future Proof Your Small Business And Improve Your Tech Bottom Line”  

YoungUpstarts

That definition is nearly 30 years old, and hadn’t evolved with the pace of technology changes, from mainframe computers to the Internet to the cloud, and much more. My team and I felt it was important to revisit this definition, and in particular, with an emphasis on small to medium-sized businesses. Tech Debt 2.0

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5 Priorities Before You Bypass Professional Investors

Startup Professionals Musings

As an advisor to many entrepreneurs, I still hear frequently the irrational exuberance that crowdfunding is the quick alternative for startups that are passed over by overly demanding angels or venture capital investors. Crowdfunding to gauge demand is not recommended, since failed campaigns don’t usually recover later.

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5 Crowdfunding Concerns Worry Professional Investors

Startup Professionals Musings

Most of the experience so far has been cash versus the equity feature defined by the JOBS Act – Equity Crowdfunding (Title III) , introduced back in 2016 with 685 pages of rules. In equity crowdfunding, no investor is representing their own interest. These groups are now largely run by volunteers at no cost to entrepreneurs.

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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development. It is going to cost a lot of money just to get the initial batch of products to test the market and would definitely require external funding. Equity investors.

Startup 150
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5 Ways Crowdfunding Is Not A Panacea For New Ventures

Startup Professionals Musings

As an advisor to many entrepreneurs, I still hear frequently the irrational exuberance that crowdfunding is the quick alternative for startups that are passed over by overly demanding angels or venture capital investors. Crowdfunding to gauge demand is not recommended, since failed campaigns don’t usually recover later.