$2 Billion Exit Brings Equity Crowdfunding to Forefront

CF vs Kickstarter

What’s the difference between Crowdfunder & Kickstarter? 9,500 Oculus Rift supporters just found out.

FOX asked our CEO to talk about Crowdfunder in the wake of the big backlash right now from people who donated to the $2.4M Oculus Rift campaign on Kickstarter. Those supporters didn’t get any benefit from Facebook’s recent acquisition of Oculus for $2 Billion.

Had the $2.4M that Oculus raised to launch the company been investment via Crowdfunder, then we estimate those backers would have gotten a 200x return on their investment.  Because Oculus raised via Kickstarter, which doesn’t offer investment, the 9,500 donors to Oculus just received a pair of virtual reality goggles and other “rewards”. Here is a simple breakdown of the differences between rewards-based crowdfunding and equity-based crowdfunding.

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  • Kickstarter is a rewards-based crowdfunding platform
  • Way to fund creative projects
  • Creators keep 100% ownership of the work
  • Backers receive rewards for their contributions

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  • Crowdfunder is an equity crowdfunding platform
  • Way to fund startups, social enterprises and small businesses
  • Entrepreneurs give up an equity stake in their company in exchange for investments
  • Investors will have the opportunity to profit financially from their investment

Although Kickstarter and Crowdfunder are both crowdfunding platforms, they are quite different. Kickstarter is a way to fund ideas and creative projects by giving backers “rewards” while Crowdfunder allows people to invest in companies in exchange for equity. Learn the tricks on how to run a successful Crowdfunder campaign in order to get the most out of your fundraising efforts.

Crowdfunder

Crowdfunder is where Entrepreneurs and Investors meet. Join a global startup community of 200,000 members who are raising capital with our 15,000 accredited investors who are investing in startups alongside renowned lead investors.