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I want to get a capital, says start-up. Even if it may be beneficial to run lean for a period, sometimes it reaches the point when it is a must to look for enough cash to grow.

The entrepreneur who wants to start their business, they can look for the capital from relatives, banks, friends, venture capitalists and angel investors but few consider crowdfunding as a option.

We provide some helpful details about crowdfunding and you can decide afterwards if it is the right option for your start-up.

By using simple terms equity crowdfunding allows businesses to reach investors who are interested into buying equity in startup businesses or in small business owned by private people. Contrary to the average effort that you may have used on other platforms where the founders do not have to give up some percentages of the ownership in their company in order to get cash.

If you are looking to start campaign for equity crowdfunding, the following are 3 types of equity crowdfunding. You will also find 4 tips about how to maximize the benefits from the efforts you use with 10 valuable resources where you can find the capital.

Three kinds of crowdfunding equity

Equity I was developed by the SEC in 1996. It helps investors who have been accredited get access to investments opportunities on websites. A large number who invest within Equity I, rely more on the 506 Rule under the Regulation D. This lets them raise any amount of capital they want from any number of accredited investors. Equity 1 crowdfunding can suit the entrepreneur who would like not to be exposed to the public about their fundraising campaign.

Equity II is based on the Title II of the JOBS Act and it came into the effect September 2013 and it allows the entrepreneur to advertise the need they have for funding to investors. The founders who invest into this Equity II may raise capital of a unlimited amount and it may be from a unlimited number of investors that are accredited. All done by the use of the crowdfunding portals and advertise what they offer on the web. This is becoming the most popular type of the equity crowfunding and it exposes the entrepreneurs to a huge audience of potential investors. If you choose to use this option, you will be able to share your business idea with at least 6 million investors that are accredited in the US. Hollas continues by saying that the entrepreneurs who do not have a problem in advertising the needs they have for the funding and who are willing to confirm accreditation status for potential investors, they are good candidates for the equity II.

Equity III may be put into the effect by the end of 2014. With equity 3, unaccredited investors may participate and this means that at least 99 percent of the worlds investors will be involved. This equity 3 crowdfunding platform will be offering and selling securities over the internet. Entrepreneurs can enjoy access to more than 50 million Americans. However, the problem is that these investors may be lacking the sophistication needed in investments and this means that the entrepreneur will have to deal with many regulatory requirements. Four tips to help you in maximizing the benefits out from your fundraising efforts

1 Develop a solid business plan and model
Even if I like working business model compared to the business plan, the basics for both of them will remain always the same. The investors want to see that you have the traction, the customer validation and that they possess a solid plan in order to maximize the market opportunity. According to what Hollas said, there is no way to overstate the importance of a business plan that was well developed. It is not only used to get the fundraising for your business but it offers also a solid framework for the operations of the business, it helps in establishing the priorities and while it helps the company owner to valuate how much equity you may be having in the business that you can give away and still reach to your fundraising goals.

2 Prepare yourself in a legal way
If you are looking to raise capital but in exchanging the equity of the business, you will have to deal with many regulations and responsibilities. You have to do your homework and learn all about the 3 types of equity because each one will have its regulatory level with limitations of who should invest into your business and how much you are allowed to raise. You should also contact the a attorney since the Private Placement Memorandum or PPM is important while offering equity of your business. If you do this, you will be able to protect yourself at the same time protecting your company. It shows regulations under which offerings are being made and it shows the investors that you have a professional attitude about regulatory compliance offered by SEC.

3 Evaluate Crowdfunding platform
Even if the crowdfunding platform had simplified fundraising process, you will find that there is a large number that you may choose from. When you decide that you have to start with a crowdfunding campaign, you have to be aware that not all these campaigns had been created in the same way. You have to check if the platform policy in order to prevent fraud. It should also have a large investor population and provide different arrays of crowdfunding features.

4 Get to know your audience.
Most of the investors will be looking for companies that are in the industry that they understand. So you have to focus on investors who are in your niche first. Many crowdfunding platforms put the investors into groups according to the interests they have so you should use this feature to your advantage.

The following are some of the informational sources and free online tools that you may have to consider before you start with your crowdfunding campaign.

Calculator for the startup risk
The startup risk calculator can help the entrepreneur to understand better the risks at which their businesses are exposed to in order to improve their chances of success. The results that are generated by the use of this calculator are based on the real world data that have been gathered from at least 500,000 businesses around the North America.

Valuation calculator

This is a calculator that will help you to choose the accurate valuation of your business and it can help you to know how much equity that you should give away in order to reach your funding goals. The results offered by this calculator, are from the market data that was gathered from the EquityNet for over 3,000 businesses in North America

Crowdfund CPA is Crowdfunding Review or Audit cost calculator. The legislation needs that an audit can be conducted for the business that wants to raise more than 500,000 dollars and the reviews should be made for the business that it is over of 100,000 dollars. The calculator will help you to know how much the audit or review for the financials of your company may cost before you start with the crowdfunding campaign.

Crowdnetic: the news feed and market data of the crowdfunding. The website has real time data in the market that are being gathered from other crowdfunding platforms all over the world. It offers also the articles, news with original content of the industry given by the leaders in the industry about the state of community of the crowdfunding. The sites may also provide the details on large number of the ongoing crowdfunding campaigns and the tools used to screen the data about the crowdfinancing with different criteria used.

Nowstreetwire: It is powered by crowdnetic and it is a good source or educational content and news.

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