FUTURE OF FUNDING #3 – MORE INVESTMENT CROWDFUNDING
Karl Dakin
I help you overcome challenges to raising capital. Take advantage of my Motivated Money Method to identify those investor candidates that are most likely to invest. Top expert in fundraising.
QUICK CALENDAR
TUESDAY, NOVEMBER 12, Successful Funding show, 8 am Mountain Time / 10 am Eastern Time (after Daylight Savings time shift) – Andy Sherbo – Entrepreneur Education on Funding
WEDNESDAY, NOVEMBER 13, Don Cohen show, 9 am Mountain Time / 10 Eastern Time – Business Development
TUESDAY, NOVEMBER 19, Successful Funding show, 8 am Mountain Time / 10 am Easter Time – Dr. Tom Frey – Future of Entrepreneur Funding
ASK CAP
?In collaboration with Knowledge Avatars, I have trained an artificial intelligence avatar (not a bot) on matters related to funding within a concept-based learning management system with backup provided by Chat GPT. This avatar is available 24/7/365 for free to answer questions on matters related to funding at:
?CAP was asked:
“How may expanded investment crowdfunding change the capital industry?
CAP responded:
“Expanded investment crowdfunding can significantly impact the capital industry by democratizing access to capital and investment opportunities. It allows startups and small businesses to tap into a broader investor base beyond traditional venture capitalists and banks. This increased access can lead to more innovative projects receiving funding. For investors, it offers the chance to diversify portfolios by investing in early-stage companies previously inaccessible. Overall, expanded investment crowdfunding can enhance market liquidity and foster a more inclusive capital market.
FUNDING HAPPENINGS
The SuperCrowd posted an article titled Funding Change: How Impact Investing Meets Small Business Crowdfunding . This is an excellent article on how an investor can achieve a two-fer of return on investment plus impact.
FUNDING POINT – FUTURE OF FUNDING #3 – MORE INVESTMENT CROWDFUNDING
I expect that more small businesses and communities will become aware of and engage in investment crowdfunding (Reg CF or state versions).
I expect that more people will realize that they can be investors through investment crowdfunding.
The result of these two movements, away from classical pitches by small businesses to angel investors and community project charitable pitches to foundations, will be significant.
Organizations seeking funding may expand their field of vision from less than 3% of the population with a funding record of less than 2% of the opportunities being funded to 100% of the population.
In 2022, the US adult population was 258.3 million. That means that only 7.8 million people qualify as ‘accredited investors’. The SEC places this number higher at 18.5% of the population (which is calculated on a couple or household and not individually) who hold $1 million or more in assets (excluding their primary household) or earn jointly $300,000 or more per year. I think this number is grossly overstated, and from a practical standpoint, getting a couple to agree on an investment is statistically rare.
Of the 19 million plus people who could invest as angels, only 369,000 people do so, according to the Center for Venture Research at Peter T. Paul College of Business and Economics at the University of New Hampshire .
Of the 33.3 million small businesses in the United States, they are competing for investments from only 369,000 people that meet the definition of an accredited investor. This explains why investment pitches to angel investors succeed less than 3% of the time.
According to CrowdWise, in 2020, over 358,000 individuals in the United States invested through equity crowdfunding platforms.?Since 2016, when the SEC finalized federal investment crowdfunding regulation, in four short years, the number of investors through investment crowdfunding nearly matches the number of angel investors.
?As more people become aware of the ability to invest in businesses in their backyard and the benefit to their communities from these investments, it is expected that the number of investment crowdfunding investors already exceeds active angel investors and this advantage will increase.
SUCCESSFUL FUNDING SHOW
LAST TUESDAY, on my Successful Funding show, I hosted Eric A. Hanson , a professional entrepreneur. We discussed improving the capital industry through offering more extensive education on financial literacy.
You may see a recording of the show at:
COMMUNITY REVITALIZATION SHOW
THIS MORNING, I was the guest on the Community Revitalization show. The topic of the show was ‘integrated investment.’ This topic is a key component of the design of the community investment funds planned by RCI Community Funds. In short, every dollar invested in a community is intended to achieve the greatest impact possible toward building community wealth. Stephen Shaff and Bill Huston co-hosted the show.
You may watch the recording at:
DON COHEN SHOW
YESTERDAY, I was the guest on the Donald Cohen show, where we discussed business negotiations. Don and I looked at negotiations as a needed and beneficial way of developing relationships that may result in a ‘deal’ and that the best deals provided a true ‘win-win’ relationship.
You may see a recording at:
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Karl Dakin, the Capital Coach
Dakin Capital LLC
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1 周Empower My Journey: Overcoming Disability and Hardship to Share Innovation AI Expertise. https://lnkd.in/g5d9tsdv This fund is not only essential for helping me find employment but also for enabling me to address my hearing and communication challenges, so I can thrive in professional environments once again (onsite). I am offering to volunteer my 3 months of employment for free, and use this GofundMe funds to pay and prove my worth and demonstrate my ability to bring real value to any business. My goal is simple: to show what I can do, and after proving my skills, to transition into a full-time, salary role. This is my last resort, but I believe in my expertise, and I am willing to invest in myself if someone will give me the chance. ? I specialize in: Data Science Analytics Computer Vision (Medical/FinTech) Generative AI (Chat GPT, LLM, LangChain) Customer Engagement & Retention Strategies Leadership and Team Management with a focus on diversity, empathy, and collaboration ? I am a natural problem-solver with a passion for growing businesses by increasing customer engagement, improving retention, and building brand loyalty.
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2 周Karl, your insights on the growth of investment crowdfunding resonate deeply. It's exciting to see a shift that empowers more investors and supports small businesses and communities. Your expertise in fundraising is invaluable in guiding us through these changes. Keep up the great work!
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2 周Money is the easy part. Sharing it is a global problem. Inflation pays bills, but as it rises so does newer larger bills.
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2 周That's going to be veary interesting event thanks for sharing this karl Dakin best wishes to each and everyone their ?????????????????????????
I help you overcome challenges to raising capital. Take advantage of my Motivated Money Method to identify those investor candidates that are most likely to invest. Top expert in fundraising.
2 周Investment crowdfunding is on the rise.