CROWDFUNDING 2017 & http://www.sprowttcf.com HIGHEST CEO SPACE RANKING AND WHY:
Venture capitalists tend to back entrepreneurial firms that reflect their own ideas and match their social and educational experiences. This type of financing has resulted in a concentrated amount of funds for business endeavors in specific locales. Venture capitalists are typically wealthy investors, investment banks and other financial institutions with similar interests.
Silicon Valley and Boston benefit greatly from venture capitalism, while struggling entrepreneurial startups across the country are suffering from a venture capital drought.
Also, 99% of all venture funding took place from family, friends, founder circles, and angels and not professional venture firms. Of the more than 1,000,000 new ventures created in 2016 in the USA, and the approximately one TRILLION dollars that went into venture FUNDINGS – less than 1% took place from venture firms. The Venture funding was primarily funding proof of concept ventures with BALANCE SHEET rounds funded. Almost 100% of raw concept venture’s seeking core seed round were REJECTED by professional venture firms who are not a MARKET for first round pre-proof of concept funding as a general guideline.
However, the start-up industry is changing with the expansion of crowdfunding platforms, such as Kickstarter, helping to level the playing field. A recent study from the University of California at Berkeley states that crowdfunding financing is now accessible outside of the traditional startup and technological landscape, with even the restaurant industry jumping into the crowdfunding action.
Crowdfunding Platform Expansion Leads to Nationwide Innovation job creation and economic growth in community unmatched from the professional venture industry. Increasingly the professional venture industry is exploring subsidiary expertise in their own crowdfunding sector as this new industry explodes with growth.
Still, founders can not market their securities to investors outside FINRA approved Portals of which less than a dozen exist in the world today. CEO SPACE ranked by Forbes online and INC Magazine in TWO PUBLICATIONS in January – as the top ranked business conference in the world – place our highest endorsement for FINRA reviewed PORTAL http://www.sprowttcf.com . Although SPROWTT management can not make the claims we set forth here – it is our opinion at CEO SPACE that SPROWTT is a decade more advanced in software and legal compliance automation protecting issuers and investors maximally, within a digital automation that makes breach of exemption regulations at state and federal levels so much less unlikely for both.
The AUTOMATED COMPLIANCE the founders of SPROWTT have built into the software lead the industry in our opinion which is why CEO SPACE suggests SPROWTT exclusively to our CEO CLIENTS considering a REG D 506 C round of funding or a first Crowd Funding SEED ROUND. We encourage our VENTURE institutional firms, brokerage clients, and law firm customers to explore SPROWTT as the industry leader, and in our opinion maximum LIABITY SHEDDING PORTAL SITE in this new industry sector globally.
Crowdfunding appeals to entrepreneurs and investors looking for a different tribe. Since many venture capitalists (VCs) finance people and ideas similar to their own, women and minority entrepreneurs can benefit greatly from crowdfunding expansion outside of the normal VC region. Also, VENTURE FIRMS waste your time and their time when they review raw concept IP plans without a balance sheet funding in place and a proof of concept to the development phase appropriate when seeking venture investing. A growing number of VENTURE FIRMS send their rejections to CEO SPACE where we help groom the firm for their later participation success as a partnership with VENTURE FIRMS. Our thirty-year success record speaks oceans to VENTURE FIRMS as does our top FORBES online and INC rankings in 2017 as a leader in this stage of exploding industry.
CEO SPACE CAPITAL SKILLS TRAINING is the # 1 ranked capital program in the world for CEO’s raising enormous sums, as well as early stage venture’s raising their first round. The next skill acquisition program under the new laws is March 12th in Orlando Florida at CEO SPACE first of five events this year. CEO’s seeking capital will come to this event from all over the world. For capital CEO’s become current and have such an easier process with the secret knowledge in their possession, which this blog can only be wading pool place the reader inside of. If you are raising capital – we so invite you to join CEO SPACE March 12th.
The study from UC Berkeley identified specific regions where the majority of financing from VCs are concentrated noting that less than 1% of ventures are funded by such firms. The average funding was The study analyzed data from 55,0005 Kickstarter campaigns and 17,493 venture capital investments that were similar in activities.
The researchers in this one study mapped the successful campaigns and financing from 2009 to 2015. The market in 2016 and 2017 is changing more than at any time in 100 years.
What the researchers found was that the Kickstarter campaigns ( source funding or prepaid pre-made findings for a product service or charity ) originated from all across the country and from areas not typically financed through venture capitalism. This includes the cities of Chicago, Los Angeles, and Seattle.
It is important to note that the FTC is examining full disclosure on websites in the future, where the 99% of promoters raise less than $ 500 dollars and are by % not the ratio to success. CEO SPACE has a % of success for venture founders at a ratio of from 65% to 87% depending on the industry category.
Venture capitalism was responsible for the financing of entrepreneurial firms in highly concentrated narrow areas and more advanced stages of development versus pure start-ups. As much as 50 percent of all VC financing concentrates in only four counties within Silicon Valley and Boston as sources for the capital.
The study took into account the relative intensity of the new source funding and even newer 2016 after the study – crowdfunding platform and venture capital funding in each region. Using this formula, the researchers could account for the differences in population and other factors that might skew the results.
The study did not detail the number of venture offers – almost all in source funding versus equity capitalizations – where – the offer to success versus failure was reported. A key statistic missing from this 2015 study.
Crowdfunding laws came into effect from the SEC nationally in the USA in May 2016. The first accredited classes on the new laws have been offered by CEO SPACE with leading security law firms assisting including attorneys with substantial staff experience at the SEC on a faculty.
The researchers found that areas with Kickstarter investments ( pre-buying items not yet made – source funding ) were located away from venture capitalist funding which is largely equity or debt funding models. For example, in the Bay area, VC funding is primarily focused in San Francisco and the Peninsula, but Kickstarter funding concentrates in Marin and Napa counties.
If you live elsewhere the study shows you are in a capital drought – unless you have THE SECRET KNOWLEDGE as to how to engage CROWD FUNDING or the NEW LAW to develop equity capitalization into your projects. New law relaxes general solicitation rules which assist larger funder’s as well.
According to the researchers of this isolated university’s study of data to 2015, the results could show an inequality in entrepreneurial funding in regions. In areas with Kickstarter technology campaigns, the study found that venture capitalist funding increased as VCs find these new ideas attractive.
Said in the way that makes the data more clear, consider this logic tree. As this new industry matures, the less than 1% that have MONEY behind the launch – and win – and have success numbers – now become a more attractive target for VENTURE FUNDING. So NOW venture firms watch as one new channel the CROWD Confirmations – that this or that – IS successful in the market as a risk reducer to fund new ventures versus venture direct submissions lacking such risk moderation. Though these are very few deals in a year – a handful on each platform perhaps.
CEO SPACE believes the source funding industry is new and rapidly expanding such that geo footprints – are rapidly expanding from the data reported in this one isolated study. A first
Other Crowdfunding and SOURCE FUNDING Platforms Expanding as this new market from the equity May 16th laws – and the earlier SOURCE FUNDING trend is simply globally EXPLODING.
The six-year study data from this first but isolated from UC Berkeley focused on Kickstarter as the crowdfunding platform, but others are expanding their reach across the country in hopes of reviving the entrepreneurial legacy while stimulating the economy and supporting charities.
Readers are invited to note that CROWD FUNDING is a legal term defined by the Congress of the United States and signed into LAW under the JOBS ACT of 2012 – which became effective in May 2016 with SEC REGULATORY FRAMEWORK. The legal term CROWD FUNDING applies to:
1. SEX REGULATED and STATE REGULATED new law making it easier to raise equity capital into ventures starting up or expanding their job creation and growth using the capital to do so.
2. Debt funding to achieve the same mission with relaxed rule sets.
3.. Convertible debt to equity securities.
The SOURCE FUNDING of pre-selling something that does not exist is often called CROWD FUNDING prior to the MAY 16th release of SEC LEGAL CROWD FUNDING REGULATIONS but is NOT CROWD FUNDING under the law. Source funding is SOURCE FUNDING and is NOT REGULATED BY THE SEC. SOURCE FUNDING is regulated by consumer protection agencies of the Federal Gov and States. NO ONE HAS YET REQUIRED SOURCE FUNDING PLATFORMS TO REPORT THEIR REAL RESULTS which CEO SPACE defines as 99% marginal promotions that lose money over cost raising $ 500.00 or less on average with a tiny % raising any larger sum and 99.7% raising larger successful funding.
The first platforms like KICK STARTERS do such a MASSIVE VOLUME already that they report their SUPER WINS and they are impressive and are creating the huge impact on a community. UC Berkley defined in a six-year window look into SOURCE FUNDING that – the wins are geographically limited and a VENTURE DROUGHT exist to most of the US 50 states from this form of new SOURCE FUNDING.
CEO SPACE notes that the SOURCE FUNDING PLATFORMS are increasingly better training their membership since 2015 and an ever greater percentage are winning. It is our conclusion that may not be inclusive of all the data to be totally accurate but in general apply the following to SOURCE FUNDERS:
1. Source funders need to stimulate with MONEY and LAUNCH CIRCLES to their own lists – enough promotion and repetition to exceed $ 100,000 of CORE SOURCE FUNDING at launch to trigger
2. The algorithm’s that the SOURCE FUNDERS use to preclude showing their CROWD versus the issuer – the crowd – that now demonstrating the issuer CROWD IS buying the offer – that 15% of the SOURCE CROWD Can now see the offer.
3. IF the 15% buys in the same ratio the launch into the issuer CORE CROWD created – continues the % will open from 15% to every higher percentage of the entire SOURCE CROWD until you have a SUPER WIN.
Said another way – if you chose a SOURCE FUNDING PROMOTION design enough money – PUBLIC PR – and continued launch round push – SUPER PUSH AT LAUNCH _ to assure the SOURCE FUNDING triggers to OPEN to their CROWD are realized and even then continue your PR to assure that % widen’s and holds to a SUPER SUCCESS. CEO SPACE teaches this model to our SOURCE FUNDERS who do better than average with this secret knowledge for the new industry. Which makes sense of course – or the SOURCE FUNDER says KICKSTARTER one of our CEO SPACE Favorites along with INDYGOGO – which carry our highest recommendation – do not BURN THEIR CROWD with failed promotion models the crowd will not buy.
Spread the word on this information which helps everyone.
The UC University report also conveyed data in its reporting that:
GoFundMe recently acquired CrowdRise to expand fundraising initiatives for charities. GoFundMe processed the transactions for CrowdRise during 2016, and the platform raised $100 million each month and grew 300 percent year-over-year. The acquisition increases the opportunities for social fundraising and charity fundraising. Still, the data failed to include the % of total promotions to SUPER SUCCESS in the 100 million which is vastly small % of total fundings on these platforms in our experience to date.
The Federal Government is considering RULES for this new industry where the SOURCE FUNDING PLATFORM would be required at some future date to REPORT the % of these totals on their website. CEO SPACE is encouraging the industry itself to report these statistics NOW and beat the new RULES as a consumer protection leadership. In either event, more consumer protection in a new industry is coming and will be helpful.
Other crowdfunding platforms that small businesses and entrepreneurs are using include Indiegogo, Fundable and RocketHub. Indiegogo launched in 2008 and announced in 2016 that it has added equity crowdfunding to open the door for small investors. However, CROWD FUNDING or equity funding must be offered only on FINRA approved and SEC REGULATED portal sites and any offer not on such regulated sites remains ILLEGAL. We believe the mature sites will use SPROWTT or license SPROWTT as the site is more advanced than they presently can provide and fully patented worldwide as the ultimate consumer protection offered in the market today again in our CEO SPACE considerable experience as the oldest largest small business growth model in the world today as ranked by Forbes online and Inc Magazine in 2017.
Fundable is an Ohio-based crowdfunding platform that attracts accredited investors for entrepreneurial businesses, such as InstaHealthy USA. Always check with FINRA to make sure that you are dealing with a LEGAL PORTAL as the liability to YOU as the issuer of equity is GREAT if you engage an NON FINRA APPROVED PORTAL which states and FINRA are shutting down as fast as they spring up in a brand new industry area. Check with the SEC at SEC.GOV or call the SEC CROWD FUNDING DESK before you take action is a good best practice today for the issuer seeking REAL CROWD FUNDING.
RocketHub offers traditional donation fundraising as well as equity-based crowdfunding through the ELEQUITY Funding platform and Bankroll Ventures.
Now entrepreneurial startups in smaller cities and rural areas have a chance to develop and share their ideas with crowdfunding platforms. Not long ago it was determined that U.S. entrepreneurship was at a 40-year low, but this may soon change.
The American entrepreneurial spirit still exists, it just needs a little financial help from its tribe.
CROWD FUNDING is evolving and is expected to be a 100 BILLION DOLLAR industry in forwarding years. Brokerage firms venture firms and more all coming behind leading LEGAL PLATFORMS like SPROWTT which we recommend be your FIRST CLICK in Crowd Equity funding at the URL set forth in the title of this BLOG.
We wish you great capitalization as you grow your ventures worldwide.
Berny Dohrmann – Chairman CEO SPACE INTERNATIONAL worldwide