Crowdfunding no bonanza for small businesses

Discussion in 'Wall St. News' started by dealmaker, May 14, 2018.

  1. dealmaker

    dealmaker

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    Crowdfunding no bonanza for small businesses
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    Begun two years ago with some big hopes, the option for small businesses to court investors through crowdfunding hasn’t turned into the windfall its supporters predicted. Some 438 companies have raised $105 million since May 16, 2016, when the first websites where companies’ shares are sold began operating, according to the consulting firm Crowdfund Capital Advisors. “... It has not been the bonanza people have been expecting,” says David Lavan, a former SEC attorney who’s now with Dinsmore & Shohl in Washington, D.C. (finance-commerce.com)
     
  2. Part of the problem is the belief that if you build it they will come. The truth is that you have to spend a considerable amount of time and money to market a crowdfund raise.

    I do it for many of my realestate ventures and it has worked very well. Just know that there are not horses of people browsing the net looking to throw money at you. You must go find them.
     
    dealmaker likes this.