What Is Crowdfunding?
Crowdfunding provides an online marketplace that matches small and medium-sized companies needing to raise capital with individuals looking to invest in promising new Products, Services and Real Estate.
Here at Crowd WallStreet, we not only see crowdfunding as an alternative way for companies to gain access to capital but also an opportunity for minorities to participate in a wealth building platform that has never been presented to us in history. This wasn’t always an available option due to strict securities regulations.
In 2012, the JOBS Act was created to ease securities regulations and to opened up the private funding of U.S. small businesses. As the JOBS Act continued to evolve, it allowed more investors, especially minority investors to participate in equity contributions to private companies. Before, you had to be a wealthy and an Accredited Investor to participate in these type of investments. The JOBS Act has made it possible for all investors, accredited or not, to invest in certain private offerings right here on Crowd WallStreet.
Types of Crowdfunding Regulations
Navigating through the different regulations can be confusing when you’re trying to raise capital for your business. There are 3 types of crowdfunding requirements that includes Reg A+, Reg D and Reg CF. Below will help you understand the differences.
Best suited for Growth Stage companies that have proven product market fit and traction.
Regulation D offerings are private raises, making them available only to accredited investors and limited to retail investors.
Benefits for investors
The benefits of crowdfunding extend beyond companies being funded, crowdfunding also benefits investors. This gives people a sense of contribution, community, and purpose. Crowdfunding also provides the opportunity for portfolio diversification. With our platform you will have opportunities to invest in different industries and sectors.
Benefits for companies
Crowdfunding is an alternative way to finance a company. It is also a is a great marketing channel to gain early adopters and potential brand advocates. One of the greatest obstacles for small businesses and startups is bridging all the holes that a business might have at an early stage. You can engage with the community and gather comments, reviews, and ideas by having a crowdfunding campaign.
Crowd WallStreet created its very own University to help our community learn more about the crowdfunding space. Everything provided in our University is for educational purposes only.