Essays on Differences between Equity and Non-Equity Crowd-Funding Assignment

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The paper "Differences between Equity and Non-Equity Crowd-Funding" is a good example of a marketing assignment. Anytime the word crow-funding is mentioned, many people instantly start thinking of about the international internet-based platforms like Indiegogo and Kickstarter. These are some of the most famous platforms which have obtained and build their crowd-funding reputation mostly by funding social drives and creative developmental projects. At a time, they could even go the extra mile to fund businesses by means of rewards model whereby the accessible proprietors’ tender concession on their products, acknowledged commodities, and others such as perks that do not give up a portion of the company. Crowd-funding investment is both non-equity and equity-based.

Considerably, it can take another dimension such as profit-sharing as well as a hybrid dimension. The initiation of this kind of investment platform was started by Grow VC in February 2010. In the US, the currently initiated equity crowd-funding operational platform is Equity Net, while the earlier ones include Crowd Cube and Seedrsin  in the United Kingdom. Crowd-funding previously involved a crowd or a large number of people pooling some funds together with an intention of helping and providing support to an individual person, small growing businesses, of simple companies.

A couple of years ago, the most famous kind of crowd-funding was the donation such as harambees and the fundraising. On crowd-funding platforms such as Kick-starter, a massive crowd of people offers financial endowment to developmental procedures or ideas. Typically, this was done in return for a product as well as service bequest from the beneficiary. Introduction. Equity crowd-funding absorbs the concept of investment that gives room for individual shareholders to seek to put for an ultimate financial gain in the business.

As a result, equity crowdfunding has been accorded much of attention since the Jumpstart Our Business Startups (JOBS) ACT legislation which was passed by Congress while vowed into law in 2012. Unfortunately, equity crowd-funding is not an open forum but a confidential platform which is only made to stand firm by accredited shareholders. This simply implies that all the investors should have to comply with the standards and attributes stipulated by the Securities and Exchange Commission (SEC) in the United State of America.

For one to be termed or be mandated to be an accredited investor, the individual should meet the income worth and net worth standards as a means of qualification. Sometimes many of the business people wonder why should there be a crowd-funding form of investment. In order to tackle this worry, first, we must understand that crowd-funding is typical upsetting modernism. For instance, when in the offline platform, it is extremely very hard for the shareholders to point out and put their savings in a private business firm. Under this state, the process consumes a lot of time to network in order to become a viable deal because even the investment minimums are actually very high.

Therefore, for the investors to solve the calamity, crowd-funding circle-ups were established to simplify the process. With this crowd-funding platform, now investors see it easy to realize their opportunities, evaluate data, and get involved in management panels to pose queries and commence their meticulousness starting by private platforms.

Reference

Lists:

Hurst, S. (2014). New Zealand's FMA Ready to Grant the first Licenses to Equity Crowd funding Platforms. Crowdfundinsider.com

Luzar, C. (2014). Brief: New Zealand VC Expresses Optimism about Equity Crowd funding. Crowdfundinsider.com

Pullar-Strecker, T. (2014). FMA to Grant First Equity Crowd funding Licenses. stuff.co.nz

Gareth Pyburn. (31 May 2014). Hong Kong: Crowd funding (Equity-Based) In Asia-Pacific: Legal and Regulatory Ambiguities without an Analogous Us JOBS Act Exemption.

Retrieved from http://www.mondaq.com/x/316998/Securities/Crowdfunding+EquityBased+In+AsiaPacific+Legal+And

Neiss, S. and Best, J. (2012). Why the Jobs Act is a Win for Entrepreneur’s and Investors, Inc., March 28, 2012

Gerven, D. (2009). Prospectus for the public offering of securities in Europe set: European and national

Collins, L. and Pierrakis, Y. (2012): The Venture Crowd. Crowd funding Equity investment into Business

Best, J., Neiss, S. and Jones, D. (2012): How Crowd fund Investing Helps Solve Three Pressing Socioeconomic Challenges legislation in the member states of the European economic area. Cambridge: Cambridge University Press

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