Types of Crowdfunding
Popular crowdfunding platforms, like Kickstarter and IndieGoGo operate backer-based platforms similar to noisenights. In backer-based crowdfunding, backers who contribute a minimum amount usually receive the product or...more
Some interesting links we found across the web this week: How Pro Rata Works in Venture Capital Deals - VC’s suffer from FOMO just like the rest of us. ...more
From your local watering hole to Nordstrom’s, microbranding is making a big impact in retail. Microbranding is brand recognition experienced by small-scale businesses in a particular marketplace. The expansion of the internet...more
Based on research we deployed, here is a general report. Like any industry, 3D printing took a while to find solid footing, but in recent years it has gained notable attention. Since 2011, 3D printing companies raised...more
On January 29, 2016, the new Securities and Exchange Commission (SEC) crowdfunding regulation (“Regulation Crowdfunding”), further discussed here, will go into effect. The new regulation has been a long time coming. In 2012,...more
Soon startups will be able to use crowdfunding platforms to sell an equity stake in their business to investors in exchange for working capital. However, as explained below, this new capital pathway may be of limited utility...more
As directed by Congress under the JOBS Act of 2012, the Securities and Exchange Commission (SEC) recently adopted final rules to permit equity “crowdfunding,” characterized by the SEC as “a relatively new and evolving method...more
At the end of October 2015, the Securities and Exchange Commission finally passed new federal crowdfunding rules. Crowdfunders will have to wait until April 2016, when the new rules "go live," to raise funds. Here are four...more
With still about a week left to go, Hudway’s Kickstarter campaign, which began last Wednesday for its augmented reality vehicle accessory, already has over 6,500 backers pledging more than $450,000—several times its initial...more
“Crowdfunding”: In broad terms, it’s a decade-old means to an end for those with bright ideas and dim financials who hope to bring an inspired cause to market. As established as the practice is, with the more recent explosion...more
Kickstarter, the well-known crowdfunding website, recently made news by announcing that it has become a Delaware “public benefit corporation” under that state’s new (2013) PBC statute. For example, a New York Times headline...more
This post was originally written by Dylan Rochon, 2015 Foley & Lardner LLP Startup Connector. The term “crowdfunding” is closely associated with websites such as Kickstarter.com and GoFundMe.com. These sites provide a...more
Rarely has a capital markets concept been more ambiguous, and potentially more confusing, than crowdfunding. It seems that everyone has his or her own definition, which sometimes varies depending on the circumstances. ...more
Crowdfunding has created a revolution in the raising of funds for startup companies and for other projects, including both for-profit and not-for-profit projects. Crowdfunding is a process by which a company or project can...more
Most Kickstarter projects never reach the funding threshold, so funders never pay anything into the venture. However, as shown by recent enforcement action, agencies such as the FTC (Federal Trade Commission) have become...more
"Crowdfunding" is the collection of small amounts of money from a large number of people to fund innovative projects, artistic endeavors, and non-profit political and charitable causes through the Internet. Over the past...more
In Case You Missed It: FCC Adopts Significant Changes to TCPA Rules - Last week, in TCPA Connect, our newsletter devoted to cases and developments surrounding the Telephone Consumer Protection Act, we reported on the...more
Crowd Funding ImageThis is the second in a 3-part series about the use of crowdfunding in health and biotech start-ups. We started with the story of a tech start-up which set records for funding through a Kickstarter...more
Crowd Funding ImageThis is the first in a 3-part series about the use of crowdfunding in health and biotech start-ups. We start with the story of a tech start-up which set records for funding through a Kickstarter campaign,...more
Last week, the FTC announced its first legal action involving crowdfunding. For those of you who don’t know, crowdfunding is the practice of raising money for a project by seeking contributions from a large number of people,...more
“How do I get backers for my project?” - You see this question asked frequently on social media sites. The projects are sometimes serious, but have often advanced little more than a dream. The person seeking funds may...more
So you have a great idea for a new business but don’t have the money to get it off the ground. Equity crowdfunding is now a popular way to draw attention (and potential funders) to startups. But is it the right choice for...more
Philip Schroeder, Esq. discusses the types crowdfunding: • Donation Model Crowdfunding (e.g.) Kickstarter • Rewards Model Crowdfunding • Equity Crowdfuning o Sales to Accredited Investors...more
Undertaking any entrepreneurial endeavor can be a daunting task. It can get very complicated when doing so in a highly regulated environment, such as the one that governs the manufacture and sale of alcohol related products....more
Ask anyone who follows innovation what topics are hot and it is likely most of them will say “crowdfunding.” By now, sites like Kickstarter and IndieGoGo have created thousands of loyal followers. In recent months even the...more