If we are going to create a Cleantech Revolution to help to Save the Icebergs that I blogged about yesterday, we are going to have to make it easy for Green Startups to kickstart their businesses.
Having recently launched two companies EcoSmart Developments and Lean Lab, I am interested in getting some help with Crowd Funding to accelerate the process of "Getting Green Done"
Let's see what Nuggets we can discover from recently published blog articles, that can help us!
How Crowdfunding Is Changing The Way Startups Raise Money | Inc.com: BY ADAM HEITZMAN Co-founder, HigherVisibility@HigherVis
The emergence of Crowdfunding has allowed entrepreneurs the ability to get their business ideas financed easier than ever. Funding your idea may now be just a few clicks away.
For those who are unfamiliar, crowdfunding is a means of raising funds from large groups. Kickstarter is probably the best example of crowdfunding. You create your business plan and idea and then upload it to the website with a financial goal in mind, and people can give money toward your goal if they believe in your business.
There are two types of Crowdfunding
Receiving Rewards it is the traditional way of crowdfunding. It is a system where investors would get a reward in return for their investment. For example, if you donated a certain amount of money to an entrepreneur who was trying to launch a new board game, they might send you the board game as a thank you for your investment.
Equity Crowdfunding is the newer way of crowdfunding. As of 2012 and thanks to the JOBS Act, companies are now allowed to collect up to $1 million per year over the Internet, so with this type of crowdfunding those who contribute could become company shareholders. This is a great middle-point between reward-based crowdfunding and the older, traditional way of pitching ideas to investors in person.
According to the Ultimate Crowdfunding Guide from BankingSense, "If you're interested in an equity campaign, your business will need to be incorporated.
If you're on the fence about which type of crowdfunding campaign is right for you and how to get started, I recommend visiting the BankingSense guide for more detailed information."
You should also check out "How Crowd-Funding Is Changing Everything and What that Means for Your Start-up" This article is by the founders of FundersClub an equity based Crowd-Funding company.
Some Nuggets from this Article are"
Rewards-based crowdfunding can work well as a step towards de-risking customer demand and building a community of early adopters without giving up equity in the business.
For those who are unfamiliar, crowdfunding is a means of raising funds from large groups. Kickstarter is probably the best example of crowdfunding. You create your business plan and idea and then upload it to the website with a financial goal in mind, and people can give money toward your goal if they believe in your business.
There are two types of Crowdfunding
Receiving Rewards it is the traditional way of crowdfunding. It is a system where investors would get a reward in return for their investment. For example, if you donated a certain amount of money to an entrepreneur who was trying to launch a new board game, they might send you the board game as a thank you for your investment.
Equity Crowdfunding is the newer way of crowdfunding. As of 2012 and thanks to the JOBS Act, companies are now allowed to collect up to $1 million per year over the Internet, so with this type of crowdfunding those who contribute could become company shareholders. This is a great middle-point between reward-based crowdfunding and the older, traditional way of pitching ideas to investors in person.
According to the Ultimate Crowdfunding Guide from BankingSense, "If you're interested in an equity campaign, your business will need to be incorporated.
If you're on the fence about which type of crowdfunding campaign is right for you and how to get started, I recommend visiting the BankingSense guide for more detailed information."
You should also check out "How Crowd-Funding Is Changing Everything and What that Means for Your Start-up" This article is by the founders of FundersClub an equity based Crowd-Funding company.
Some Nuggets from this Article are"
Rewards-based crowdfunding can work well as a step towards de-risking customer demand and building a community of early adopters without giving up equity in the business.
“The advantage of equity crowd-funding with the right platform is that it can make the process of raising value-added capital more efficient for founders,” says Mittal. “When we founded the company, we did it with the goal of being respectful of founders’ time, allowing them to raise quickly but to still tap into a value-added network helpful for key tasks like hiring, forming partnerships, winning customers, and raising follow-on capital. It’s not just about the money or the transaction, these types of platforms can expand your professional network for growing your company.”
It’s important to clearly outline what the startup does, how the product or service works, and other details that potential investors will want to understand.” If you’re not prepared to answer these questions, then you should ask whether you’re ready to raise any capital.
Best Practices
1) Know who you are working with. As a founder, you should do your homework on who you raise money from both online and offline.
2) Be Ready. “Your company has to be at an appropriate stage to do well on a site like FundersClub,” "Because you’re raising capital online, traction and growth serve as important signals. Having strong customer testimonials helps, as does compiling any news or major press hits that you’ve landed."
3) Clarity is king.“You need to be crystal clear about what your product or service does and how it works. It’s your job as an entrepreneur to clearly communicate your business and its value proposition in a way that investors can understand easily and quickly.”
4) Cover the key points. “The information you post should be no different than what an offline investor would look for. Hit the main points: What is the idea? How does the product or service work? Who’s on the team? What key milestones have you hit? What are your metrics for success? What is the market size potential? What are the investment terms? How big is the round you’re trying to raise?
Ideally, you have a pitch deck that works without you being there to explain it.”
Good luck with launching your #Cleantech the IceBergs need our help!
For more information on how to build affordable NETZero homes visit our Blog at EcoSmart | Building the Future or for commercial the Integrated Designs | The Art of Project Delivery or for Lean Lab | Training and Workshops
Good luck with launching your #Cleantech the IceBergs need our help!
For more information on how to build affordable NETZero homes visit our Blog at EcoSmart | Building the Future or for commercial the Integrated Designs | The Art of Project Delivery or for Lean Lab | Training and Workshops
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