More and more founders are resorting to internet fundraising to generate funds for their businesses. These platforms are very new, having emerged as a direct result of the 2012 JOBS Act, which allowed entrepreneurs to openly promote their capital fundraisers and use equity crowdfunding to convert ordinary consumers into investors, whether or whether they were “accredited investors.”
Diversifying investment sources is also possible with online fundraising platforms. By supplementing traditional venture capital funds with equity crowdsourcing, creators may retain more strategic and creative control over their businesses than is generally achievable when depending on just one or two large investors. Startups may raise millions of dollars without giving investors a seat on the board of directors.
Although there are dozens of these fundraising platforms available today, their frameworks range significantly, and these variations can have a significant influence on a startup’s capacity to collect funds as well as explore strategic choices in the future. Platforms serve as a marketplace for investors to find promising entrepreneurs in fields ranging from robotics to SaaS, CPG, and more. The ideal situation for a company entrepreneur is to have as many qualities, interested investors evaluating their transaction as possible, as well as a clear strategy for raising their complete round once they have launched.
That is precisely why so many investors and business entrepreneurs prefer SeedInvest. SeedInvest, in comparison to other platforms, is quite meticulous regarding which businesses allowed financing on the platform. Consequently, in 2020, entrepreneurs raised an average of $3.3 million, which is greater than previous platforms in the past (Source: VentureBeat). A more effective fundraising campaign benefits both the founders and the investors. “We are the most thoroughly verified platform available.” “Who we partner with is incredibly important to us,” said SeedInvest CEO Ryan Feit. “Neither ideas nor programs are funded by us.” From a half-million dollars to over $20 million, we’ve collected money to fund everything from Seed to Series C.”
SeedInvest has built substantial trust with active and prominent investors, regardless of their check size, and this has been a crucial distinction for the company. Investors like to see spreadsheets, patents, and attractive names on the executive team, but they also have to trust their gut judgment and operational expertise when deciding which firms should receive funding and how much. SeedInvest excels in this area, as they have earned the confidence of a large number of investors. All of this implies that SeedInvest firms will be able to raise more money both during and after their online fundraising campaign. Startup investing is risky, and not every investment pays out.
Because they essentially helped develop the new rules, SeedInvest, through its wholly-owned FINRA/SEC licensed broker-dealer, can help founders and investors navigate these relatively new waters so well. Jan Goetgeluk, the founder and CEO of Virtuix, a virtual reality gaming company with Mark Cuban as an investor, is one of the startup entrepreneurs who SeedInvest has assisted. “We believe that by using equity crowdfunding, we can establish a community of individuals who have ownership in what we do,” Goetgeluk added.