Posts By: Dave Schools

What I Learned When My First Startup Failed

If you have the curse of the entrepreneur, then you are familiar with the insatiable need to launch something – to create something and get it out there.

General, How to Improve Your Company

“Should I Build an App?” – 8 Step Checklist

I ask myself this question a lot. I think I could make an app for everything. But after three apps, I’ve learned a process that helps me determine if I should build an app or not.

How to, How to Improve Your Company, Start

How to Launch Your Startup Online

You’re startup is ready. You’ve put in all the work to get your startup to where it is today. The MVP product is in order, your website is designed, and you are ready to launch your startup and get the word out. But how?

Fund, How to Get Funding

Crowdfunding – The Fastest Growing and Most Unusual Source of Startup Funding

America’s first major crowdfunding project was the Statue of Liberty.

Definitioner

HTTPS

Hyper Text Transfer Protocol Secure

Funding

This term is used synonymously with the words “financing” and “capital.” It refers to the amount of money that is needed for a business endeavor. For example, a new business owner may seek a certain amount of funding for their startup company. This “raised” capital can be used to launch their endeavor as well as to sustain their company until monetary profit can be generated.⁴

Startup

A startup is a new business venture / enterprise in its initial or early stages of development. These stages include the concept, seed, early, growth and mezzanine stages.⁶

Crowdfunding

“Crowdfunding” is the process of raising financial support for a venture via smaller amounts from many investors (“the crowd”), rather than the alternative pattern of larger amounts from a smaller number of supporters. Charities and philanthropies have traditionally employed both fundraising strategies (soliciting both the general populace, or crowd, as well as fewer wealthier donors), while businesses have usually taken the route involving fewer and larger supporters. Today’s internet has vastly increased the ability of fundraisers to communicate information, solicit and receive financial support from anyone on-line. Crowdfunding without the expectation of financial return, or with the promise of a specific good or service, are termed “donation-based” or “reward-based” crowdfunding, are in the nature of charitable solicitation or business marketing, and have never been illegal in the U.S. In contrast, soliciting funds in return for a ownership interest or expectation of repayment, are termed “equity-based” or “debt-based” crowdfunding (together grouped as “securities-based” crowdfunding), and have been until now governed (and effectively prevented) by federal and state securities law. One of the most significant parts (Title III) of the federal “Jumpstart Our Business Startups”, or JOBS Act of 2012 specifically enabled and legalized “security-based crowdfunding”, subject to a variety of regulations and restrictions.¹

Related Articles

Crowdfunding – The Most Usual Source of Startup Funding [Infographic]

5 Lessons on Startup Capital: Marathon Investments vs. Sprint Funding

Moving Series A Startup Funding from “Anguish” to “Accelerate”

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Posts By: Dave Schools

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