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Mythbuster: It’s Less Work for Startups to Raise Capital with Crowdinvesting

 Photo Credit: CFO Wise Traditional methods of raising capital are antiquated, inefficient, and extremely time consuming. On average it will take an entrepreneur anywhere from 3 – 6 months to close a funding round. But with capital raising and investing now available online (via crowdinvesting), everything should be faster and easier right? No more scouring […]

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Mythbuster: Investors Could Lose Money on Poorly Vetted Startups

Photo credit: Before It’s News When the SEC comes out with final rules and regulations on Title III (which allows for equity crowdfunding) sometime in 2014, the general public will be able to invest in private companies, something that’s been banned since the Great Depression in 1929. Soon everyone will have the opportunity to invest […]

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Mythbuster: Companies Using Crowdinvesting Won’t Have Chance to Receive Guidance From Seasoned Angel Investors

In finance, we often talk about the difference between a strategic and a financial investor. The difference between the two is exactly how it sounds – a strategic investor is one that has similar motivations and goals as the company seeking investments, while a financial investor is motivated by simply making returns through the future […]

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Mythbuster: Equity Crowdfunding Will Only Work For Early Stage Companies

Due to the recent release of the proposed regulations and clarity on the total amounts that are permitted under the equity crowdfunding or crowdinvesting exemption ($1.0 MM per year), there has been much conjecture and speculation that equity crowdfunding will only be viable for early stage companies and startups.  However, there are many reasons that […]

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Mythbuster: Startups Will Not Use Crowdinvesting Due To Costs & Complexity

Return on Change is elated by the SEC’s recent approval of proposed crowdinvesting regulations under Title III of the JOBS Act. Crowdinvesting will be a game changer for startups raising capital in the private securities market, opening up a potentially huge source of financing and allowing everyday investors to have a say in what companies […]

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Mythbuster: Startups Using Crowdinvesting Are Low-Grade

There are concerns that startups using crowdinvesting will be those that are unable to receive funding from the traditional sources such as angel investors or venture capitalists. It’s a concern that is without merit and neither speaks to nor considers the shortcomings of the existing system for early stage finance.  Additionally, we are assuming that […]

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Mythbuster: It’s Risky for Startups to Share Their Business Details Online

As an investment platform bridging early-stage startups with investors, we’re always in conversations with entrepreneurs and investors. And besides trying to help startups raise capital for their startups, one of the other areas we focus on is education. Just like social media changed the way we interact, crowdinvesting is slowly but surely changing the way […]

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Mythbuster: The Crowd Is Not Sophisticated Enough To Invest in Startups

Photo Credit: Myth: Crowds are dumb as often as not, or worse. This is our response to point #4 in the HBR blog post, “The Road to Crowdfunding Hell”   The Reality: Here are 2 reasons why the crowd is not as unintelligent as one may assume. (1) The Crowd’s Investments & Selections Are a Proxy for […]

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Mythbuster: Crowdinvesting Will Attract Less Favorable & VC-Rejected Startups

Photo Credit: Mobi Health News Myth: One of the paramount concerns in the field of crowdinvesting is whether there will be a noticeable depreciation in the quality of investment deals that will be made available once regulations are finalized. Companies that aren’t deemed “VC-worthy” will naturally gravitate to the crowdinvesting marketplace as a last resort, enticing […]

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Mythbuster: General Public Doesn’t Have the Stomach for Early-Stage Investing

Photo credit: Guerilla Stock Trading  Mythbuster: The general public doesn’t have the stomach for early-stage investing. Startups go through peaks and valleys constantly, and most investors don’t have the experience to know how to deal with this. While this (arguably) works for public companies, startups are far more fragile; backlash from a thousand scared and […]

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