Is crowdfunding right for you?
Temecula, CA (PRWEB) August 29, 2012
An informative webinar discussing the pros and cons of the new crowdfunding financing vehicle will be available to interested entrepreneurs and investors on Friday, August 31st at 10 a.m. PDT during the TriTech SBDC Freestyle Entrepreneur Forum. The Forum offers entrepreneurs at every stage of business a chance to discuss business issues with experts and like-minded entrepreneurs. The forum is held monthly throughout 2012 and will cover various topics. There is no charge to attend the event, but registration is required at http://bit.ly/PJ5kUj.
“The JOBS Act that was passed earlier this year is going to have a profound effect on how companies raise money in the coming years,” according to Jay Goth, senior consultant with TriTech SBDC. “While we are waiting for the SEC to interpret the laws and define the rules regarding this legislation, we have a good understanding of the general requirements and opportunities around crowdfunding.”
Crowdfunding will allow startup companies and entrepreneurs to raise money by posting their investment opportunity on SEC-registered online portals. Any interested investors may decide to invest in the companies, with limits on the amounts that can be invested set by the recent legislation. This is a complete change from the traditional early stage investing model, where only accredited or high net worth investors could invest in these types of offerings.
“People are looking at some of the fantastic successes companies have had on sites like Kickstarter and Indiegogo and they want to emulate that,” stated Mr. Goth. “While those sites only offer pre-sales or donations, new equity crowdfunding platforms will actually allow an exchange of money for equity. That’s a game-changer. What many entrepreneurs don’t understand is that there are some restrictions and caveats that may preclude an early stage company from actually using crowdfunding for their early funding plans.”
The webinar will review the key aspects of the JOBS Act as it pertains to crowdfunding, then discuss the good and possibly negative aspects of raising capital through this new medium. The webinar has been designed to be informative and thought-provoking and there will be plenty of time set aside for questions and answers. Interested entrepreneurs and investors are encouraged to register for the event at http://bit.ly/PJ5kUj.
About TriTech SBDC
TriTech Small Business Development Center (SBDC) works with high technology, rapid growth companies which have a very high impact on their local economies. TriTech offers consulting in areas such as identifying capital resources, commercializing new technologies, marketing products and services, and becoming investor ready. These services are offered at no charge to the consulting clients, as TriTech is funded through public and private sector donations. TriTech's mission is to make a measurable economic impact for the business community by increasing the profitability of enterprises. Economic growth depends upon entrepreneurs translating ideas and innovation into viable commercial enterprises. For more information, visit http://www.tritechsbdc.org.
Future Freestyle forums will present numerous opportunities for you to connect with successful entrepreneurs, angel investors, city officials, marketing experts, and others all free of charge. To stay informed about what TriTech is currently doing please visit our social media pages at http://www.facebook.com/TriTechSBDC, Twitter: @TriTechSBDC.
About Jay Goth
Jay Goth is a senior consultant with TriTech SBDC, offering business consulting services to early stage high-growth, high-scale companies in the Inland Empire of Southern California. He is also a principal of Redtail Capital, a business advisory practice that assists companies with strategic planning, capital formation, valuations, and merger and acquisitions. Securities offered through Independent Investment Bankers Corp. a broker-dealer, Member FINRA/SIPC. Redtail Capital is not affiliated with Independent Investment Bankers Corp. For more information, visit http://www.redtailcapital.com.