Learn About Investment Crowdfunding

What is equity or investment crowdfunding?
What’s the difference between investment crowdfunding & rewards-based crowdfunding?
How does equity or investment crowdfunding fit into my fundraising strategy?
What is the JOBS Act?
What are some examples of investment crowdfunding successes?
Can anyone invest in companies on Crowdfunder?
Does Crowdfunder comply with the securities regulations?
What does investment crowdfunding cost?


What is equity or investment crowdfunding?

Equity or investment crowdfunding in today’s environment enables Accredited Investors to invest in companies fundraising on Crowdfunder and gain ownership, or a promise of future returns.

Unlike other earlier crowdfunding sites, which have restricted people to simple donations or the purchase of a product or reward, Crowdfunder allows you to become an investor/shareholder in a company.


What’s the difference between investment crowdfunding & rewards-based crowdfunding?

Equity or investment crowdfunding enables accredited investors to invest in companies fundraising on Crowdfunder and gain ownership, or a promise of future returns whereas rewards-based crowdfunding you will only receive a “reward” for your contribution to the company. The $2B acquisition of Oculus VR clearly demonstrates the differences between investment crowdfunding and rewards-based crowdfunding.


How does equity or investment crowdfunding fit into my fundraising strategy?

Investment crowdfunding is a powerful way to help you structure your investment offering, tell your story, get new investors, and close your Round. We provide tools to help you package and present your investment offering, and take in investment.

Investment crowdfunding is a powerful marketing and engagement tool that is helping entrepreneurs raise money everyday. Check out our Equity Crowdfunding Success Guide in order to learn some tips on how to make a successful raise.


What is the JOBS Act?

The Jumpstart Our Business Startups Act (JOBS Act) was passed with bipartisan support by Congress and signed into law by President Obama in April 2012. Following on the success of donation-based crowdfunding, the JOBS Act now enables businesses to solicit funding from the general public – although only Accredited Investors are allowed to invest at the moment.

The JOBS Act also aims to expand investment opportunities to non-accredited investors, who have been historically excluded from this process. For the first time in our lifetime, every American will have access to invest in startups and small businesses and share in their financial success. The rulings that will allow everyone to invest in private companies is expected to take effect sometime in 2014.

See the Crowdfunder CEO on Forbes explaining the JOBS Act and its implications:

Title II of the JOBS Act: The Crowdfunder’s Guide To General Solicitation

Title III of the JOBS Act: Investment Being Democratized, Moving Online


What are some examples of investment crowdfunding successes?

Check out all of our successfully funded campaigns. Also, read about how Atlas Wearables raised over $1M with the help of Crowdfunder and how Bitvore Closed $435K directly through Crowdfunder.


Can anyone invest in companies on Crowdfunder?

At this point, only Accredited Investors can invest in companies that are fundraising on Crowdfunder. When Title III of the JOBS Act is passed, non-accredited investors will be able to start investing in early-stage startups.

The SEC provides more detailed information about the qualifications of an Accredited Investor.


Does Crowdfunder comply with the securities regulations?

The Crowdfunder investment platform is run in compliance with existing and new securities regulations including longer standing 506 offerings & exemptions, Title II of the JOBS Act allowing for public fundraising (General Solicitation), various SEC No Action letters, and laws governing international securities regulations.


What does investment crowdfunding cost?

There are different prices and costs associated with investment crowdfunding across the crowdfunding industry.

Crowdfunder has developed a simple subscription model, where entrepreneurs can activate a Deal and start taking commitments online from accredited investors. We do not take a percentage of total money raised.

It is free for Investors to sign up and start browsing the Deals available on Crowdfunder.

Here are the different Crowdfunder Plans available to entrepreneurs.


Learn More:

Investors

Entrepreneurs