Crowdfunding

 

The Crowdfunding Industry

Collaboration on the web, for every endeavor, is an area of exponential growth. Crowdfunding, or collaborative funding via the web, is one of the standouts for growth in this evolving collaborative economy. How big is crowdfunding? The crowdfunding Industry Report by Massolution put out data showing the overall crowdfunding industry has raised $2.7 billion in 2012, across more than 1 million individual campaigns globally. In 2013 the industry is projected to grow to $5.1 billion.

Some of the most interesting developments in crowdfunding include investment crowdfunding which involves individual investors becoming becoming shareholders in a private company, localization, which is funding focused on participants in specific cities and neighborhoods, and mobile solutions. For our purposes, HFS only focuses our effort in the area of funding for private companies.

The JOBS Act that was passed in April of 2012 paved the way for investment crowdfunding. Private companies can now publicly advertise their offerings and sell shares to non-accredited investors (with limitations). This legislation opened the door to the world of collaboration on the web which is experiencing exponential growth.

Investment crowdfunding, where businesses seeking capital sell ownership stakes online in the form of equity or debt is a capital formation model that allows individuals to  become owners or minority shareholders in multiple private companies. And this type of crowdfunding is growing a market for impact investing in socially responsible enterprises, marrying the worlds of entrepreneurship and philanthropy, and helping a broader base of investors to back companies for both profits and purpose.

peopleCrowdfunding is creating an entirely new market for individual investment in tomorrows businesses across a wide variety of industries. Please contact us today if your private Company would get involved, join a crowdfunding community and get your Company funded. There are hundreds of communities available and we can help you create the documentation, presentations and introductions to help get your company funded.