Crowdfunding needs to be smart and also safe

Opportunities finds its own way and its own, the question is from which door it paves in is the point to be focused. There were years, when lots of entrepreneurs and startups were looking for a cornerstone, to erupt as businessman of the era; on the other hand there were money handlers who were finding out their way to augment their money but did not prefer to manage any business.

Opening doors of investment and funds for startups, in year 2012 American President Barack Obama signed Jump start Our Business Startups (the JOBS Act),which gave a way out to one of the appealing and enthralling system of crowdfunding- a platform from where small startup or business entrepreneur can raise their capital funds from any anonymous investors through online. After sanctioning the treaty, certain websites grabbed as an ultimate opportunity and created their online portal to bring investors and startups together. Through Internet and other social Medias, crowdfunding took the complete attention in the mind of money providers and money raisers.

It was been also surveyed that this medium had paved the door of equity crowdfunding pretty before when the law was signed- the pool of “sophisticated investors” or high capitalists who entrusted their capital on trustworthy project. It has been also reviewed that early equity crowdfunding used to bring forth larger returns to the investor.

**Note : to be listed in equity crowdfunding, there are different strategy of qualification which was need to be cleared and registered

Initially when the treaty was passed, it was paused for a year by Securities and Exchange Commission which an intuition of allowing the crowdfunding investment on a large scale. Though the law was not up to action, yet there were corporation who laid their hands in such online capital portals to invest on projects they believed.

After allowing the law official in the market, there was a huge rush of non-endorsed individual investors to acquire trade with companies and startups, even for companies it turned to be a golden opportunity to have a direct platform to unite with investors without the trouble of venture capital presentation. This scope of raising capital gave a greater chance to surplus their investment. It has been surveyed that the profit gained has surpass the $5 billion target which will be more than double in year 2012.

Though it is a great platform for mutual benefits, investors need to be quite alert while trading with projects and entrepreneurs. It will be a smart way to choose projects that are apparent, preferably with a good back report of standing on previous work stories.

Before trading with each other, investors and Startup Company should make sure the features of capital raising platform, it is good to check their expertise years, security tactics, selection criteria, access compatibility and availability of enquiry services are the main focus while obtaining one.