The biggest challenge that every entrepreneur faces today is obtaining funding. The traditional funding markets of Angel investors, Venture Capitalists, Bank Financing, SBA lending, Wall Street and other sources, have severely retrenched and are struggling to meet the needs of funding Good People with Good Ideas. Even in good economic times, their reach favors the few versus the crowd.
Crowdfunding by Donation or Crowdfunding for Equity represent an entirely new playing field for entrepreneurs and investors and can change the game of the collapsing traditional funding markets.
Entrepreneurs interested in shaping this future can join CfPA today and take control of their future. Why now? Powerful and tradition voices will shut down crowdfunding if they can. Now that the JOBS Act (HR3606) has passed, opponents are organizing and intend to lobby the US House and Senate to protect the status quo and demonize this new model. As an industry, we need to unite and insist on integrity, foster education and champion this new opportunity before others try to shut it down.
Understandably, the “old guard” and current financial institutions view crowdfunding as a threat. Just as the Internet threatened and disrupted many industry models, over time virtually all parties accepted and came to understand the Internet’s benefits and historic potential. Powered by Internet platforms, crowdfunding is a model that will do the same. It will be disruptive while fueling innovation, and CfPA is confident that virtually all institutions will eventually value its unique contributions.
In order for our voices to be heard, we MUST leverage the crowd and organize to ensure that crowdfunding flourishes and becomes a game changing financial platform behind EVERY entrepreneur around the world.