Raise $50,000 to $5,000,000 With Crowdfunding

If you are into crowdfunding, you may have a lot of questions on your mind regarding this system of raising funds. One of the most common questions is related to the amount of money you can raise on a crowdfunding platform. In this article, we are going to answer this question. Read on to find out more.

On the web, you may have gone through insights and experiences of industry leaders, experts, and fundraisers. But as far as the maximum amount is concerned, it can be up to millions of dollars. So, the question is, what is the average amount of capital that can be raised through crowdfunding?

Regulation limits

First of all, regulatory authorities are responsible for setting and tone and defining the limit as to how much capital can be raised. Authorized crowdfunding platforms offer their services following specific rules, and they don’t exceed the maximum amount of money raised through the portal.

Generally, they stated this limit in the FAQ section or on a webpage on the crowdfunding platform. Given below are some statistics:

Before 2021, startups were allowed to collect $1,070,000 annually with Regulation Crowdfunding. However, the limit has been increased to $5M, which is good news for startups.

If you follow Regulation D, you can raise as much money as you can from accredited investors. Some platforms like Wefunder allow you to run Regulation A+ campaigns, free of charge. And you can collect up to $1 million at most.

Also, if you don’t know anything about the American regulation alphabet, you can go through the simple terms that are given below:

Reg A: it allows you to raise between $20m and $75 via Mini-IPOs, which is ideal for small issuers and young companies.

Reg D: It consists of a set of rules for large campaigns and projects that require a stream of unlimited funds. In such deals, only big players can take part.

Reg D: it enjoys more popularity unlike debt offerings and public equity. Generally, these campaigns are run through private funds, tech companies, and real estate.

Reg CF: It’s an ideal framework for startups that attract the attention of the public for capital collection.

According to the reports released by The Crowdfunder, the average amount collected against each Reg CF offering was $342k in 2020.

Wrapping up

As far as crowdfunding is concerned, only the sky is the limit if the limit is not regulated by an authority. Actually, the average amount collected via crowdfunding platforms varies depending upon the country, platform, and niche. So, no matter what type of startup you have launched, you can initiate a crowdfunding campaign to raise capital for your business and get it off the ground.

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5 Tips for Raising Funds From Crowdfunding

If you are going to start a crowdfunding campaign, you may wonder how you can raise funds quickly. In this article, we are going to talk about some crowdfunding tips that may help you collect more funds for your startup. Based on the type of platform and campaign, you can tweak and adjust these tips. Read on to find out more.

Tip #1: Do your homework

This tip may work for you only if you have enough time to prepare for these campaigns. Generally, it takes around 11 days to do the homework and get ready for the launch of this campaign. Based on your fundraising needs and campaign type, your time requirement may vary. Given below are some tips that may help you get ready:

• Get the best fundraising advice from the internet
• Opt for the best crowdfunding platform
• Consider other successful campaigns
• Find out how to ask for donations
• Decide if you should organize an event

Tip #2: Ask For funds Early

If you think you just need to launch a campaign page and funds will start pouring in, you need to think again. In the US, there are more than 200 crowdfunding platforms. So, what are the chances of your campaign being found?

So, what you should do is promote the campaign the same day you launched it, which will help you set yourself apart from the crowd. According to statistics, around 50% of startups collect most funds during the first and final 3 days of the duration of the campaign.

You can use the in-built sharing mechanism of your crowdfunding platform to get the word out about your startup. This may include Twitter, Facebook and email, to name a few.

Tip #3: Look for prospective investors

Look for investors who may be willing to provide funds for a certain cause. For instance, if you know a relative, neighbor or colleague who has lost a family member to cancer, chances are that they may be willing to provide funds for a cancer research campaign.

Tip #4: Be Clear about where the funds will go

If you want your prospective investors to trust your crowdfunding campaign, we suggest that you be clear about where the money will go. It’s even better if you be as specific as possible. By keeping your investors informed about your campaign, you can build their confidence and they will continue to invest more money in your startup.

Tip #5: Offer Incentives

For investors, incentives work like a charm but they work for specific campaign types. The good news is that crowdfunding campaigns are more successful when it comes to creative projects and adventures. Listed below are some popular incentives you may offer to your prospective investors:

• Free tickets to a game, concert or show
• Media shout-outs
• Handmade crafts
• Caps and hats
• T-shirts

In short, if you follow these crowdfunding tips, you will be more likely to raise a lot of more money for your start-up.

If you want to raise funds for your small business, you can run a campaign on a crowdfunding platform, such as WeFunder. This is one of the most popular platforms for raising funds for startups.

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Crypto Market Analysis

Cryptocurrency have been around for a while now and there are multiple papers and articles on basics of Cryptocurrency. Not only have the Cryptocurrency flourished but have opened up as a new and trusted opportunity for investors. The crypto market is still young but mature enough to pour in the adequate amount of data for analysis and predict the trends. Though it is considered as the most volatile market and a huge gamble as an investment, it has now become predictable to a certain point and the Bitcoin futures are a proof of this. Many concepts of the stock market have now been applied to the crypto market with some tweaks and changes. This gives us another proof that many people are adopting Cryptocurrency market every day, and currently more than 500 million investors are present in it. Though the total market cap of crypto market is $286.14 Billion that is roughly 1/65th of the stock market at the time of writing, the market potential is very high considering the success despite its age and the presence of already established financial markets. The reason behind this is nothing else but the fact that people have started believing in the technology and the products backing a crypto. This also means that the crypto technology have proven itself and so much that the companies have agreed to put their assets in the form of crypto coins or tokens. The concept of Cryptocurrency became successful with the success of Bitcoin. Bitcoin, which once used to be the only Cryptocurrency, now contributes only 37.6% to the total Cryptocurrency market. The reason being, emergence of new Cryptocurrencies and the success of projects backing them. This does not indicate that Bitcoin failed, in fact market capitalization of Bitcoin has increased, rather what this indicates is that crypto market have expanded as a whole.

These facts are enough to prove the success of Cryptocurrencies and their market. And in reality investment in Crypto market is considered as safe now, to the extent that some invest as for their retirement plan. Therefore what we need next are the tools for analysis of crypto market. There are many such tools that enable you to analyze this market in a manner similar to stock market providing similar metrics. Including coin market cap, coin stalker, cryptoz and investing. Even thought these metrics are simple, the do provide crucial information about the crypto under consideration. For example, a high market cap indicates a strong project, a high 24hour volume indicates high demand and circulating supply indicates the total amount of coins of that crypto in circulation. Another important metric is volatility of a crypto. Volatility is how much the price of a crypto fluctuates. Crypto market is considered as highly volatile, cashing out at a moment might bring in a lot of profit or make you pull your hairs. Thus what we look for is a crypto that is stable enough to give us time to make a calculated decision. Currencies such as Bitcoin, Ethereum and Ethereum-classic (not specifically) are considered as stable. With being stable, they need to be strong enough, so that they do not become invalid or simply stop existing in the market. These features make a crypto reliable, and the most reliable Cryptocurrencies are used as a form of liquidity.

As far is crypto market is concerned, volatility comes hand in hand, but so do its most important property i.e. Decentralization. Crypto market is decentralized, what this means is that the price fall in one crypto does not necessarily means down trend of any other crypto. Thus giving us an opportunity in the form of what are called mutual funds. It’s a Concept of managing a portfolio of the crypto currencies that you invest in. The Idea is to spread your investments to multiple Cryptocurrencies so as to reduce the risk involved if any crypto starts on a bear run

Similar to this concept is the concept of Indices in crypto market. Indices provide a standard point of reference for the market as a whole. The Idea is to choose the top currencies in the market and distribute the investment among them. These chosen crypto currencies change if the index are dynamic in nature and only consider the top currencies. For example if a currency ‘X’ drops down to 11th position in crypto market, the index considering top 10 currencies would now won’t consider currency ‘X’, rather start considering currency ‘Y’ which have taken it’s place. Some providers such as cci30 and crypto20 have tokenized these Crypto indices. While this might look like a good Idea to some, others oppose due to the fact that there are some pre-requisites to invest in these tokens such as a minimum amount of investment is needed. While others such as cryptoz provide the methodology and a the index value, along with the currency constituents so that an investor is free to invest the amount he/she wants to and choose not to invest in a crypto otherwise included in an index. Thus, indices give you a choice to further smooth out the volatility and reduce the risk involved.

Conclusion

The crypto market might look risky at first look and many might still be skeptical of its authenticity, But the maturity that this market has attained within the short period of its existence is amazing and the proof enough for its authenticity. The biggest concern that investors have is volatility, for which there had been a solution in form of indices.

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