Latest news with #backers
ABC News
4 days ago
- Business
- ABC News
Concerns over 'ethical' internet scheme
It was pitched as the opposite of the dark web, an "ethical" version of the internet raising as much as $19 million from backers sold on an Australian man's promise of the "Lightweb". But after 12 years and funds from up to 2,000 "mum and dad" members from all over the world, the Lightweb still has not launched.
Yahoo
02-08-2025
- Business
- Yahoo
Crowdfunding for business: The basics
Key takeaways Crowdfunding for your small business allows you to fundraise money through individual investors interested in your project You can use different types of crowdfunding, including donation, reward, debt and equity crowdfunding Depending on the platform, you may or may not have to pay back the funds, or you may give rewards to investors based on how much they invested with you Crowdfunding for business allows you to raise capital online by gathering small contributions from backers worldwide. Instead of relying on traditional loans, you tap into public interest and draw in small investors who resonate with your project or business vision. These contributions can be donations, rewards-based investments, equity stakes or even debt financing. The Crowd Data Center has tracked almost 926,000 crowdfunding projects since January 1, 2014. Of those, nearly 24% were fully funded, with an average amount of $244,604 raised from approximately 347 backers, averaging $705 per pledge. These numbers show that crowdfunding for your small business can work well when you understand the benefits, risks, and legal rules involved in launching, funding and receiving money from a campaign. What is crowdfunding? Crowdfunding for a business involves a fundraising campaign, which is typically time-limited. The fundraising business publicizes its efforts and requests contributions for startup costs or a specific project. There are websites specifically for these types of campaigns. While crowdfunding websites take a percentage of the money raised as a fee, crowdfunding donations don't have to be repaid like a loan. Crowdfunding companies will often take on some (or all) of the vetting requirements for investors, conducting due diligence on the company's financials, licensure and business planning. Platforms also host a space for fundraisers to publicize their projects, making multimedia and social media sharing easy. Getting access to contributions may be an 'all-or-nothing' gamble, according to Candid Learning, an educational platform focused on philanthropy. Some platforms only send you the funds if your campaign reaches its goal by the time it ends. 'Less than half of all crowdfunding campaigns reach their goals,' the organization advises, cautioning readers to educate themselves about a platform's fine print, guidelines and restrictions before committing to an agreement. Types of crowdfunding for business Before launching a campaign, you must decide which crowdfunding type your business plans to pursue. There are four common types of small business crowdfunding. Donation You've likely seen donation-based crowdfunding campaigns on social media. These campaigns commonly support charitable causes, such as helping with someone's medical bills or replacing a family's property after a natural disaster. The popular platform GoFundMe allows individuals and community nonprofits to raise donated funds this way. Some businesses will seek donations through crowdfunding, especially if there is a strong local interest in the product or cause. These crowdfunding efforts do not provide anything in exchange for donated funds, and donations are typically comprised of many small contributions (as low as a few dollars per person, in some cases). Debt Debt-based crowdfunding operates like getting business loans from multiple lenders. Contributors will commit a certain amount with the expectation that the fundraiser will pay back the funds — usually plus interest — within an established time frame. The microloan platform Kiva works this way, with the added twist that loans are interest-free. Reward Reward crowdfunding is popular on Kickstarter, which hosts creative ideas and products. These crowdfunding projects offer contributors rewards at different giving thresholds — commonly a digital badge or sticker for smaller contributions and a tote bag or t-shirt at the next level up. Top-tier rewards for major contributors to these campaigns can be lavish: Trips, celebrity meet-and-greets or free or early-release products. Equity Equity crowdfunding for your small business is a standard business model for entrepreneurs looking to fund startup or investment costs. This type of crowdfunding exchanges short- or long-term equity in the project or company in exchange for an investor's initial contribution. This type of crowdfunding for startups can be especially beneficial when accompanied by mentorship, as entrepreneurs can gain valuable insights that increase their chances of success and financial stability. As with all crowdfunding, participants in this model run a risk — in this case, the possibility that their chosen venture may not gain value in the future. This type of crowdfunding is regulated by the U.S. Securities and Exchanges Commission. Bankrate insight According to the 2024 Small Business Credit Survey, around one-third of firms applied for and received funding from sources other than lenders. Three percent used funding from equity investments, including contributions from friends and family, with 20 percent coming from angel investors, 10 percent from venture capitalists, and three percent from equity crowdfunding. Only one percent of firms sought financing through donations or fundraising. Popular crowdfunding platforms for businesses There are many options for new and established companies looking to source small business crowdfunding. These include: Kickstarter: This is a reward-based platform for creative concepts. Small businesses may use Kickstarter to raise money for projects like an innovative small appliance or an independent film. Indiegogo: This crowdfunding site is geared toward elevating technology projects. Past campaigns have included hovering cameras and e-bike accessories. StartEngine: Formerly SeedInvest, StartEngine is a crowdfunding platform for startups and private companies. With access to over 1.8 million potential investors, it provides tools, guidance, and resources to support every stage of your campaign and improve your chances of success. Limiting your campaigns to a certain time frame can help drive momentum and create a fear of missing out that compels investors. Not all crowdfunding efforts are time-limited, though. One ongoing crowdfunding host is Patreon, where creatives and content creators can build committed memberships of supporters. These supporters pay a monthly subscription fee in exchange for exclusive content and access to their favorite creators. How to crowdfund for a business If you're looking to crowdfund, there are a few steps you'll want to follow. Here's how to crowdfund a business. 1. Clarify your idea and audience The first step toward success is to decide what you're asking contributors to fund and what audience you'll be asking. If you're looking to crowdfund a specific investment or project, is it something for which you'll source broad contributions? Knowing whether you plan to pitch to local community members or like-minded entrepreneurs worldwide will inform your campaign's style and goals. At this stage of the planning process, you want to conduct market research to assess your competition. 2. Decide on your goals and timeline Next, decide how much funding you will need to raise to make the project — whether that's producing a certain product or buying a storefront — a success. Realistically, how long will you need to publicize your campaign and raise the money? Also, consider how long is too long for potential backers to wait if they commit early in the campaign. According to research from the funding platform Kickstarter, campaigns typically perform best when the duration is shorter, such as 30 days or less. At this stage of the planning process, you may consider what type of crowdfunding best suits your business needs. 3. Choose a host platform After researching which platforms host projects similar to yours, be sure to comb user agreements and fine print before selecting a host site. Different platforms will have different guidelines and requirements regarding project type, funding timeframes and what happens if you do not reach your full fundraising goal. Fees also vary by platform. 4. Tailor and share your story The most successful crowdfunding projects for small businesses have a strong narrative behind them. Be sure to enlist the help of talented storytellers throughout your campaign. The more you can compel possible investors through background information, foundational research, and appealing multimedia content, the more likely you will reach your fundraising goals. 5. Wrap your campaign and follow up with contributors Once you've ended your small business crowdfunding campaign, follow up with those who have stepped in to contribute. Whether you reach your goal or not, these investors will want to know what happens with the project next. If you promised backer rewards, deliver them in a timely manner to avoid souring your company's reputation. Keep good records of who contributed and at what level. Leverage the relationships you build for future business. Pros and cons of crowdfunding for small businesses The pros and cons of crowdfunding for your business include: Pros of crowdfunding Crowdfunding allows your business to gain the funding it needs without using a traditional business loan. Its benefits include: Depending on the platform and type of crowdfunding you use, you may not have to pay back the money donated to your business. This allows you to gain positive cash flow without having to worry about a monthly loan payment. You won't have to repay the funding with donation, reward or equity crowdfunding. That said, debt crowdfunding works like a business loan and does need to be repaid. Rather than putting all your eggs in one basket, crowdfunding expands your pool of investors to many individuals. Most fully funded crowdfunding campaigns will have hundreds of investors backing them. Especially with equity crowdfunding, this means that you won't be giving too much power to any one individual investing in your business. You're already promoting your business for the crowdfunding campaign, and people invest with you because they're interested in what you have to offer. These investors can be a great customer base that you can sell your product or service to once you've launched your business. Since crowdfunding isn't a business loan and you may not have to repay, crowdfunding platforms won't check your credit history to determine your creditworthiness. But keep in mind that your business's reputation is on the line. If you're using rewards-based or equity crowdfunding, you want to reward your investors in a timely manner by delivering on your promises. Debt crowdfunding may or may not use your credit history, but either way, it's important to repay the loan on time. Cons of crowdfunding The downside of using crowdfunding for your business is that you may not receive full funding, and you'll have to promote your campaign heavily. These and other downsides to consider: When crowdfunding your business financing goals, there's no guarantee that you'll get all the funding your business needs. According to The Crowd Data Center, about a fourth of projects receive the full funding that they were expecting. You may want to expect your project to not receive the full funding. You can either set your goals higher than your needs, or you can try to find other funding sources to finance your business. Some crowdfunding platforms charge fees when you run a successful campaign. For example, Kickstarter charges a 5 percent fee for all donated funds. You'll also pay a payment processing fee of 3 to 5 percent each time a person donates to your campaign. Kiva is a platform that doesn't charge any fees or interest on the invested amounts, but you will need to repay the money from investors. Since crowdfunding uses many single investors, you'll need to promote your crowdfunding campaign to everyone you know. You may spend time on social media promoting your campaign to friends, family and followers interested in your business. Some crowdfunding platforms like Kiva also have their own network where you can promote your campaign. Crowdfunding works best when you have many connections to people who might be interested in your venture. As you're promoting your idea to the public or to individual investors, those investors may get interested in your business idea in another way. They may try to create a similar product or service and go to market themselves. This can take away the market advantage that you may have, especially if you have an original idea not seen on the market yet. Alternatives to crowdfunding for your business If you don't have the time to run a small business crowdfunding campaign without guaranteed results, there are some alternative lending products worth considering. These options include both money that needs to be repaid and funds that are yours to keep. Grants: You may find small business grants for your industry at both local and federal levels of government. Grants must be applied for — and there will be a wait time — but the money doesn't need to be paid back. Business credit cards: Like personal credit cards, business cards offer a revolving line of credit. Business credit cards can have an introductory interest rate or other rewards and perks. Additionally, if you don't carry a monthly balance, you won't be charged interest. Business lines of credit: A line of credit is also revolving, but it operates similarly to a loan. You'll apply through a traditional bank or online lender who will deposit money into your account when you request a draw. Loans: Startup business loans are also a good option for new businesses. Some lenders only require a few months in operation to qualify. Business loans are dispersed in one lump sum to give you an instant boost in cash flow. Bottom line Crowdfunding for your small business can be an innovative and attention-grabbing way to garner fast support for your business or latest idea. Be sure to do your homework on the front end, ensuring your effort is unique enough from any potential competition. You will also want to research your hosting platform to ensure a good fit and your funding goals to ensure they are realistic and worth the effort. Frequently asked questions about small business crowdfunding Can I used crowdfunding to start a business?Yes, you can use crowdfunding to raise capital to fund your business startup or a specific project for your business. How much should my crowdfunding goal be?Be sure the goal for your crowdfunding project covers the total cost of your effort and any fees or commissions your funding platform charges at the end of your campaign. Do you pay back crowdfunded money?You may need to pay back crowdfunded contributions, depending on what kind of campaign you run. Donation-based crowdfunding usually operates without contributors expecting repayment; debt-based crowdfunding projects assume future repayment plus interest. 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Bloomberg
22-07-2025
- Business
- Bloomberg
Figma's Auction-Like IPO Set Up to Capitalize on Strong Demand
Figma Inc. is running its IPO more like an auction than a traditional listing, in an effort to wring the most out of its highly anticipated public debut. The San Francisco-based company is asking prospective investors in its initial public offering to precisely state the number of shares they wish to buy and at what price, according to a person familiar with the matter. Figma and some of its backers are seeking to raise as much as $1.03 billion in the listing.
Bloomberg
26-06-2025
- Business
- Bloomberg
JC Flowers-Backed Jefferson Capital's IPO Raises $150 Million
Jefferson Capital Inc. and some of its backers raised $150 million in an initial public offering, pricing shares at the bottom of the range. The company, which buys charged-off consumer debt, and the investors sold 10 million shares for $15 apiece, according to a statement Wednesday. The shares were marketed in a range of $15 to $17 each, an earlier US Securities and Exchange Commission filing showed.
Geek Dad
25-06-2025
- Business
- Geek Dad
A Conversation with Kickstarter and Crowdfunding Tabletop Roundup
Earlier this week I got to chat with Asher McClennahan, the head of games at Kickstarter. I was curious to hear how tariffs had affected things like the number of projects launching or being backed, and also whether some of the 'tried-and-true' advice about launching projects is actually true. As far as tariffs go, McClennahan said that there definitely were some publishers who held off on launching projects earlier this year in favor of waiting to see what things would be like later, but the number of games projects launching is still pretty steady. Kickstarter did add a tariff calculator so that project creators could set things up to charge for tariffs later, taking out a little bit of the unknown, and while we don't know what will happen with China tariffs after the 90-day pause, he expects we may see another boom in project launches this fall from all of the publishers who postponed things earlier. And while anecdotally a lot of people said they were hesitant to back projects when tariffs were so high, the numbers show that folks are still backing things about as much as usual. That makes sense to me: the publishers and backers most affected by the high tariffs earlier this year were from the projects that funded last year and were in the process of delivering now—for those, it was generally too late to turn that ship around. For projects launching now, I think the expectation for a lot of backers is that things may be resolved by the time these games hit the water—fingers crossed that they're right! One of the things I've heard from publishers is about ideal windows to launch projects, both in terms of the time of the year and the day of the week. McClennahan said there's a lot of anecdotal advice about avoiding January as a launch date—it's right after the holidays, after all—but he said the numbers don't necessarily support that. Projects that launch in January (and there are still a good number of them) seem to do just as well overall as in other parts of the year. Another launch tradition is that tabletop games generally launch projects on Tuesdays—probably 90% of the Kickstarter games I review launch on Tuesdays, so I asked if there's any data to support that theory. McClennahan told me that the vast majority of games launch on Tuesdays, so it has become a bit of a self-fulfilling prophecy: there simply aren't enough game projects that launch on other days of the week to have enough data to say for sure whether other days might even be viable. The good news for tabletop game creators is that people are still out there backing games, and something like 70% of all game projects hit their funding goals. (From my own small sample size, I also know that a lot of creators who didn't fund the first time have found success after making some changes and relaunching later.) Another piece of good news is that it's not just huge projects that are hitting their goals, though those are the ones we tend to hear about the most. Smaller, more niche projects are also getting funded all the time; McClennahan said that Kickstarter's recommendation features seem to work, and backers are able to find the projects that they're interested in. Of course, Kickstarter isn't the only game in town—Backerkit and Gamefound have both had a lot of success in attracting backers and raising funds, and they offer different types of features for both project creators and backers. But it does seem like Kickstarter's first-mover advantage is still pretty strong, and fans of crowdfunded tabletop games haven't stopped looking for games there. With that, I've got a few crowdfunding projects to highlight today—mostly games that I haven't gotten to play yet myself, but things that caught my attention and looked like they could be fun. New to crowdfunding? Check out our crowdfunding primer. My head has been destroyed, but my right arm has a spirit overlay that increases its damage. (Prototype shown) Photo: Jonathan H. Liu Mechromancers by Witchway Games There's only about a week left to go in this campaign for a 2-player card battle game. You play as 'mechromancers,' building spirit-powered robots and pitting them against your rival. You use deck-building to build up more powerful attacks and defensive capabilities, but you can also power up the parts of your robot with Soul Overlays (transparent cards that boost the part in various ways). When a part loses all its health, the mechanical part is destroyed but the spirit remains, giving you more spirit points for abilities and upgrades … but if all four parts are destroyed, you lose. I did get to try a prototype of the game, and I liked the various ways you can build up your bot: will you go strong on offense or shield up? Or maybe you try to get some more card draws so you're ready for whatever your opponent throws at you? The artwork has a cartoon feel, and the transparent overlays are a nice touch too. There aren't any ways to repair damage and the game ramps up as parts get destroyed, so each fight is pretty quick and then you can reset and try again! Paperback Adventures Volume 2 from Tim Fowers Paperback Adventures is a deck-building, word-making, rogue-like game where you spell words to battle monsters and eventually face off against various bosses. I reviewed the first volume back in 2021 when it was on Kickstarter, and Tim Fowers now has a second volume launching on Gamefound. It adds one new character, Iron Knee (each character has their own unique deck and abilities), and also introduces the Binding Nexus that lets up to 4 people play together. The original was for 1 or 2 players, though the 2-player mode still felt mostly like two people playing a solo game next to each other. I'm curious to see how Binding Nexus mixes things up! Clash of Clans: The Epic Raid from Maestro Games The mobile game Clash of Clans already made the jump to a graphic novel series (I just wrote about the latest book earlier this week), and now it's also going to be a tabletop game! Alas, I haven't gotten a chance to try this one at all, but it's designed by Eric Lang and Ken Gruhl, and includes both elements of building up your town and army and sending raids to your opponents' towns. There's a ton of optional add-ons so it's definitely not a cheap game, but looks like it could be fun! Pet Names from Pink Tiger Games This is the eighth game from Pink Tiger Games, a company started by my friend Ami Baio with games that are all about conversations and being kind. Pet Names gives you a bunch of cards to mix and match to create cute nicknames for your friends, scoring points if you can come up with the favorite of the round. The game also comes with a little plush fox bag to carry the cards! Trouble on the Tempus from Minor Disaster Games This campaign only has about a day left to go—if only you could time travel to give yourself more time to think! In the game, that's exactly what you get to do: you're on a spaceship trying to repair the Hyperdrive, dealing with a series of disasters. But if things get too hairy, you can time travel back to the beginning and try again … except now there's a new paradox in the disaster deck. I'm a sucker for time travel stories, and I really like the way this one handles the concept: all the disaster cards will be in the same order, so if your team can remember the order of the disasters, you should be able to plan for them. But if you time travel too much, you'll tear time itself apart. Casual Game Insider It's hard to believe that Casual Game Insider is preparing for their fourteenth year! I remember when they first launched, there wasn't a common industry term for quick, accessible games, but now I talk about casual games all the time. The quarterly magazine is switching to digital-only this year, and includes spotlights on some cool games, interviews with various folks in the game industry, and everything from tips on hosting a game night to attending your first gaming convention. Each issue also has a free game included—though I guess with the digital magazine you'll need to print it out yourself. Liked it? Take a second to support GeekDad and GeekMom on Patreon!
