Crowdfunding is about to get a lot more press in the United States. Once the SEC green-lights crowdfunding in early May 2016, there will be a flood of marketing related to the latest hot crowdfunding portals that ‘can find your business a million dollars overnight’! Don’t believe the hype. Crowdfunding can be a difficult, expensive and lengthy process.
Planning and effectively executing a campaign can be tough, even for crowdfunding veterans. It requires planning and effective outreach strategies. Most of the new funding portals facilitating SEC Title III transactions will feature equity campaigns that are nationwide in scope. Most of them will not succeed.
Worse, even for the ones that do succeed, the costs and fees associated with a campaign (including fees to funding portal itself) are likely to be so substantial that it may not be worth it for the vast majority of businesses.
What’s the alternative? For small and medium sized businesses with a local character, consider Intrastate Crowdfunding. Intrastate Crowdfunding stays out of the onerous and tricky SEC rules and avoids the substantial funding portal fees that come along with it. Couple that the ability to use customizable tools to fit the funding needs and essential character of your business, and intrastate becomes a much more affordable and effective manner of raising capital.
Talk to SparkMarket about how we can help facilitate your Intrastate Crowdfunding transaction.
Thanks for Your Continued Support,
The SparkMarket Team