While Crowdfunding gets most of its publicity due to massive campaigns for sexy devices on Kickstarter our US Crowdfunding expert David Drake says that increasingly companies like Fundrise are running projects that use Crowdfunding to fund real estate, in particular providing investors access to wholesale development deals and giving members of the community the ability to fund local community real estate projects.
ED: Funrise recently announced they have raised ~$30 million infunding from Chinese Social [...]
By David Drake
GroundFloor, a peer-to-peer real estate lending platform, is launching a landmark securities offering that enables crowdfunding of real estate transactions. This innovative move will allow approximately 43 million Americans in six states to invest in real estate in a way that wasn’t possible until now.
Lending money to a real-estate developer used to be something reserved for banks and other accredited investors. GroundFloor is changing the rules of the game, allowing individuals to become lenders in real-estate projects. The developers of such projects will pay investors interest on [...]
One of our regular contributors David Drake visited Australia last year speaking at a number of events on crowdfunding and equity raising, he interviews Paul Niederer CEO of Australian Small Scale Offering Board about their experience over the last eight years.
Even before crowdfunding became a global phenomenon on the rise, investors in Australia had already been funding startups through equity investments that work a lot like crowdfunding.
And they’ve been doing it for almost eight years: long enough to learn quite a lot about what [...]
by David Drake
Regulation A+, which is also known as Direct Public Offering, will significantly bring down the cost of raising capital for businesses. Such incidences like paying $250,000 legal fees when you raise $5,000,000 will no longer exist. Regulation A+ is expected to greatly influence direct public funding and give people an opportunity to raise capital more affordably.
Many people have been unable to start businesses in the States due to the strict regulations that have been in existence especially as far as raising capital is concerned. People have been paying thousands of dollars as legal fees on every capital they raise. This has always been the biggest [...]