crowd financing - any opinions/comments?
What would your SWOT analysis say for following kind of website?
phase 1: Get people/organizations who are looking for financing their projects.
phase 2: Get people who can provide finance to these projects (however small)
Arrange for pooling in the amount, financing and other legalities through this website.
I know this is too brief, but that's intentional, as I would like to provide more information based on your questions and inputs.
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This is a huge SEC compliance issue. – Tim J 14 years ago
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It might make compliance easier if you make it clear you are doing a taxable donation (as opposed to getting a valid share in a startup). But yeah, it's a huge can of worms you are opening if you make it anything other than a donation (with a relatively small maximum amount, too). – Gabriel Magana 14 years ago
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Thanks Tim and gmagana. I know it would have to fit in the local norms (India, in my case), and it would need to strictly comply with those. I'm glad to see from the posts below that, nevertheless, such concepts have already been implemented and do hold some promise. – Sandeep Satavlekar 14 years ago
2 Answers
There's already a site that does that: http://kickstarter.com Or do you mean something different?
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+1, and there are others depending on the vertical you're trying to get funded for. It's a great idea, especially since it's great for the world, but you'll want to know how yours will differ from existing sites. – Jason 14 years ago
Perhaps a look at Microplace (an ebay company) is in order here.
Don't just think that its only for third world investing - here's a group in texas that provides loans to small businesses.
Sure, they are broker-dealers / FINRA members - but that's the cost of doing business.
I would think that a "microISP growth" filter with some third party validation processes would work using this approach.
