Getting Started with Crowdfund Investing In A Day For Dummies
by Sherwood Neiss, Jason W. Best, and Zak Cassady-Dorion
Getting Started with Crowdfund Investing In A Day For Dummies
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Copyright 2013 by John Wiley & Sons, Inc., Hoboken, New Jersey
Published simultaneously in Canada
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Manufactured in the United States of America
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Introduction
C rowdfund investing is an exciting new business financing opportunity created by the JOBS Act that was signed into law in 2012. It taps into the power of the crowd by connecting entrepreneurs and small business owners with investors via LinkedIn, Facebook, Twitter, and other social media. And it offers small investors the chance to purchase an equity stake (or to fund debt) in small, private businesses run by people they know and trust.
Crowdfund investing occurs via online funding portals: websites that host investment campaigns and collect investor pledges. An individual can invest only a limited amount each year in these campaigns (to mitigate investor risk), and a campaign must be funded completely in order for the business to receive investor dollars. The U.S. Securities and Exchange Commission is charged with regulating the crowdfund investing industry and will announce industry regulations in early 2013.
If youve got a great concept, a solid business plan, and vibrant social networks, you may find that crowdfund investing is a great fit for you. Reading this book is your first step to figuring out if thats the case.
What You Can Do In A Day
In a day, you can get yourself up to speed on the opportunities that crowdfund investing presents and the legislative guidelines that you must follow. You can start to visualize the size and makeup of your ideal investment crowd, and you can discover how an online funding portal will support your campaign. You can even start working on your campaign pitch by drafting a headline that succinctly states your goal(s) and considering what youd say to an investor in a video that explains who you are and what you want to accomplish.
Be realistic: You cant set up a brilliant crowdfund investment campaign in a single day. But you certainly can lay the groundwork for what may become a vital source of funding for your business after the crowdfund industry debuts in 2013.
Foolish Assumptions
We assume that youre coming to this text with at least a little business acumen. Maybe youre already running a company, or youve got at least a draft of a business plan in hand. With that said, we avoid jargon and focus on the fundamentals here, so even if this is the first book you read about business financing, you wont have any trouble following along.
Icons Used in This Book
Throughout this book youll notice small graphics in the margins, called icons. These symbols are meant to draw your attention to particular ideas.
This icon denotes information that can ease your efforts when starting a crowdfund investing campaign.
To avoid a common misstep, heed the advice offered in a paragraph accompanied by this icon.
These tidbits are worth tucking into your mental filing cabinet for future use.
Take a break from the text for a quick exercise designed to help you get a better grasp of crowdfund investing. This icon shows you what to do.
When you see this icon, head to this books companion website at