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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. Lack of checks and balances on startup valuations. But don’t be misled – these are just the cream of the crop.

Equity 411
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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

Reasons for funding. ? Scale up your operations. One of the most prominent reasons for funding is to scale up your operations, for expansion and achieve economies of scale. Now you may want to scale up your operations or expand your presence. The third reason is to fund your short term operational expenses or working capital.

Startup 150
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5 Crowdfunding Concerns Worry Professional Investors

Startup Professionals Musings

According to more recent statistics , fewer than a third of all crowdfunding operations end up being successful, and the rest have to return anything they do collect. Lack of checks and balances on startup valuations. A startup that is listed on a crowdfunding platform gets no formal pushback or negotiation on its declared valuation.

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On the Road to Recap:

abovethecrowd.com

One key to this population growth has been the remarkable ease of the Unicorn fundraising process: Pick a new valuation well above your last one, put together a presentation deck, solicit offers, and watch the hundreds of million of dollars flow into your bank account. By January of 2016, that number had ballooned to 229.

IPO 40
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How to Fund a Startup

www.paulgraham.com

A lawyer I asked about it said: When the company goes public, the SEC will carefully study all prior issuances of stock by the company and demand that it take immediate action to cure any past violations of securities laws. Another concept we need to introduce now is valuation. Startups valuations aresupposed to rise over time.