Crowdfunding: An Effective Investment Tool for You?

This month’s Hannah Grimes Times theme was Crowdfunding: Is it an effective investment tool for businesses, like yours, to use?  What are the possibilities and hazards? Will the JOBS Act help or hinder your use of this tool?  View these articles and share your thoughts about crowdfunding below:

New Law Lets Small Businesses Use Crowdfunding

By Joyce M. Rosenberg,Originally Posted at Businessweek

Crowdfunding is a method of raising money from a large number of people and it’s generally done online. Charities have been using it for years — the Internet and social networking sites such as Facebook have made it possible for them to reach millions of donors. Companies in India have also used crowdfunding to raise money.

The JOBS Act: What You Need To Know

By Catherine Clifford, Originally Posted at

The ink is still drying on a piece of legislation that President Obama signed today, and the new law is good news for entrepreneurs seeking capital. Here’s a rundown of what is in the law and why it matters to you and your business.


From RocketHub’s Crowdfunding Bootcamp

Changing the World Responsibly

By Candace Klein, Originally Posted at CSRWire

As a business owner who is directly affected by this legislation, I want to be able to invite borrowers and peer lenders onto my site as quickly as possible. However, my interest is for the best interest of my customers – borrowers and lenders. I want to be a pioneer in an industry that will be hailed a century from now as the new era for small business access to capital. I want to be remembered by future generations as a CEO who truly cared for the small business borrower (and lender).

Three Models of Crowdfunding

Originally Posted at The Business Alliance for Local Living Economies

Donation Model

Campaigns gather hundreds of small donations to achieve a financing goal (growth/expansions or start up). Donors choose their benefactors and feel good about contributing to an economic or artistic endeavor.

Reward Model

Supporters make a monetary contribution in return for a reward of some sort.  The rewards can be wholly intangible, such as being identified publicly as a supporter, or a t-shirt.

Equity Model

Investors receive an interest in the profits of the business that they are helping fund.  A crowd funding exemption to SEC regulations has been signed to law.  What impact will this have on Main Street?

BALLE Conference

Watch the Archives of BALLE’s Webinar Series: Accelerating Community Capital

For the first time, a growing number of investors are considering local options. With a new generation of local investment institutions and supportive public policies, literally trillions of dollars could move from Wall Street to Main Street, creating millions of new jobs and helping to build vibrant local economies.

What are the most promising new models to connect your local businesses with local lenders, investors, and donors?… Review pioneering efforts around the country with respect to local banking, credit unions, slow-money investing, cooperatives, self-directed IRAs, local investing clubs, and local stock exchanges.

Want to watch one of these archived webinars at the Hannah Grimes Center? Contact us.

Thre Models of Crowdfunding