Checkout this on Equities.com: ​4 Factors To Consider Before Investing in Crowdfunding Deals

4 Factors To Consider Before Investing in Crowdfunding Deals

“Don’t jump into that deal before thinking through these points!”

https://www.equities.com/news/4-factors-to-consider-before-investing-in-crowdfunding-deals

Sent from Mail for Windows 10

  1. The writer of this article admits that equity crowdfunding is a “misnomer”. The reality is most crowdfunding is outright donations followed by debt capital.
  1. If equity crowdfunding is occurring then the time and cost of due diligence to verify if they are ALL accredited investors is required. But not required in DPO finance.
  1. True PPM securities equity finance means you as an investor would have to wait at least 5 years to be paid. But if no M&A or IPO occurs you may never get paid back.
  1. Crowdfunding despite the hype is nothing new. It mimics DPO’s or Direct Public Offering’s which have successfully existed for decades and are a tradable security that can be resold on secondary markets should the investors want to sell shares. No accredited investors are required as everyone can participate.
  1. Here is our prior blogpost 3 years ago on DPO’s; http://SinCityFinancier.wordpress.com/2014/05/06/nytimes-com-seeking-capital-some-companies-turn-to-do-it-yourself-i-p-o-s/
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s