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How to Minimize Risk When Crowdfunding on Kickstarter

How to Minimize Risk When Crowdfunding on Kickstarter

To date, more than $680 million has been raised on Kickstarter, as crowdfunding becomes an increasingly viable option for startups to raise much-needed funds without the help of VCs, angels or banks. For a young, bootstrapping startup, crowdfunding is often seen as fast money that will help you build out the product or app you and your team have always dreamed about. Whether or not a project ultimately reaches its funding goals, it’s still relatively quick and easy to post your pitch and see what happens. However, amid all of the hype and excitement surrounding crowdfunding, some of the less glamorous (but extremely important) aspects of running a business often go…

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Popularity of JOBS Act continues to fall according to research by BDO USA, LLP

Popularity of JOBS Act continues to fall according to research by BDO USA, LLP

Chicago, IL – According to a new study by BDO USA, LLP, one of the nation’s leading accounting and consulting organizations, only 14 percent of capital markets executives at leading investment banks believe the JOBS Act is having a positive impact on increasing the number of IPOs on U.S. exchanges. A majority (58%) say it isn’t positively impacting IPOs, while just over one-quarter (28%) believe it is still too early to evaluate the impact. Of those who don’t believe it has had a positive impact or have yet to decide, more than two-thirds (68%) predict the law will never achieve its desired goal of increasing the number…

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University of Toronto Professor: Preparing for the chaos of equity crowdfunding

University of Toronto Professor: Preparing for the chaos of equity crowdfunding

Equity crowdfunding is not yet legal, but when it is, expect a period of “chaos” before those involved learn how to make the most of its benefits and minimize its risks, say University of Toronto researchers. “There’s no question that there will be fraud and that some investors will lose money, but that’s true in every market. This is a new market and we suspect there will be a steep learning curve for all participants – entrepreneurs, investors, crowdfunding platforms, and regulators,” says Ajay Agrawal, an associate professor of strategic management at the University of Toronto’s Rotman School of Management who has written a paper on the…

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What A Map Of Kickstarter Usage Tells Us About America

What A Map Of Kickstarter Usage Tells Us About America

There’s an outstanding new paper out on NBER today by Ajay Agrawal, Christian Catalini and Avi Goldfarb that looks at the simple economics of crowdfunding sites like Kickstarter, where people post project ideas that they hope to get funded from the masses. While the whole paper is absolutely worth a read, one map at the end gave us a fascinating look at who is getting all that Kickstarter money and for what.  Check it out:   Some of the more interesting findings: California and New York dominate when it comes to funding, especially in both the arts and technology. Minnesota is also a hub of tech funding,…

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U.K. Charity creates Crowdfunding Directory To Help Navigate 30+ Local Platforms

U.K. Charity creates Crowdfunding Directory To Help Navigate 30+ Local Platforms

How many crowdfunding platforms is evidence of a crowdfunding bubble? Well, when an organisation feels the need to launch a directory to list and detail all of the crowdfunding options in a single market it’s perhaps a sign that exuberance for crowdsourced financing is running a little high. Nesta, a U.K. charity focused on promoting national innovation, has launched just such a directory, detailing the U.K.’s crowdfunding landscape — and all, by its count, 31 current crowdfunding platforms up....

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