But it helps businesses get started, the way many entrepreneurs' first business angels were Visa and MasterCard. Right now Lending Club doesn't offer loans directly to businesses. These marketplaces appeal to both lenders and investors.īy aggregating loans, they can at least in theory offer better terms to both sides, and manage risk better through data. Kickstarter helped raise $8.8 million for entrepreneurs in September and is fast-growing, with many projects exceeding their goals as the great infographic above from Bloomberg BusinessWeek shows (click to enlarge).Īnother model is peer-to-peer lending marketplaces like Lending Club. Once the number of pledges hits your goal, people's credit cards are charged and off you go. So, if you want to self-publish a book, you might set a target goal of $10,000, promise an autographed special edition to those who pledge $100, a regular special edition for those who pledge $50 and a regular book for those who pledge $20. Entrepreneurs on Kickstarter don't sell equity in their companies-they basically seek donations or pre-payments for perks. ![]() Kickstarter is a startup that helps creatives of any kind raise funding for entrepreneurial projects. ( We interviewed AngelList co-founder Naval Ravikant here.)Īnother exciting example is Kickstarter. AngelList is not technically crowdfunding-it just makes it easier for startups to get accredited investors' attention and get funding-but it is certainly an early step in that direction. There are non-tech companies listed on AngelList, along with companies from around the world. And it has also been expanding horizontally and geographically. AngelList has seen torrid growth on the back of rising early-stage valuations in Silicon Valley. One of the most exciting such examples is AngelList, a " for investors and startups" that lets startups vie for capital from angels and (increasingly) VC firms. ![]() But it's finally happening.ĭirect crowdfunding via equity financing is still a big no-no, because SEC rules make it difficult for non-accredited investors to invest in startups. Projects funded by Kickstarter (click to enlarge)Ĭrowdfunding startups has long been a dream deferred.
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