With all this web traffic, it’s easy to see why so many organizations have taken to equity crowdfunding. But how do you really know if the equity model is a good fit for your organization?
Donation and rewards-based crowdfunding are still great options for many businesses and organizations. Donation-based crowdfunding is used most commonly by charities and other socially motivated organizations. Many for-profit startups – particularly those that are producing a tangible product which can be easily sent as a perk to donors – are still having success with the rewards-based model. Both models have the benefit of simplicity, and are essentially risk-free for both the startup and funder.
Most of the development in crowdfunding over the past year, however, has come in the equity sector. Even while the SEC continues to hammer out the finer points of the JOBS act, several states have taken the initiative of passing their own equity crowdfunding legislation. Meanwhile, organizations like CrowdCheck and Bancbox are working to make equity crowdfunding more secure than ever, leading more and more entrepreneurs to take advantage of all that equity has to offer.
Have a look at what Launcht’s equity platform can do for your organization.