Why Crowdsourcing Is Irresistible
Crowdsourcing fervor is in the air. A new account came out on the crowdfinancing industry from Massolution. Most notably the industry raised $1.5 billion in 2011 with $800 million or so coming from North America. Estimates are seen as double for 2012 in the $3 billion area. There are close to 500 crowd funding portals from estimates. The US market for crowd funding is just barely in its infancy.
The Jobs Act Bill that got passed in 4-5-2012 is getting nifty. Already there is lots of commotion going on in the air about crowdfunding. Every day new portals are popping up. Literally they are everywhere in LinkedIn. It is seen that the US market comprises 50% of the crowdfunding market. Now just imagine the US market legalizing the “for business crowd funding” model? The crowd funding market is easily going to grow hundreds of percent meaning it will go parabolic in growth rate. Friendster went parabolic then Facebook took over and continued the phenomenal growth rates. The year is 2012 and Facebook is still growing. Crowdfunding will be no different.
Considering this is so new, crowdfunding’s biggest opportunities are probably within the next two years but it’s growth will last for the next 10 to 15 years. Comparing crowd funding with the originator of the social network Frienster, which started in 2002 to the present is showing a very reasonable 10 year run. This financial revolution is very similar to the social network and will probably have a similar run.
Because of high regulation in the securities market, more and more businesses will go to the crowd for much needed capital. This is going to be the real growth. Small businesses, pink sheets, bulletin boards, and listed companies will all join the crowd. There is plenty of room for everybody. All eyes are on the US market. The reason for this is because ideas and innovation usually come out of the US market. The new financial gold rush.
Now it comes down to crowding $1 billion dollars. Who will be the first business to do this? Will it be an established public company? Or a startup? The race is on.
Hollywood Lavesta twats about the business markets and crowdfunding . She also writes about some of the crowdfunding debt gossip of the year. On her time off she fights on the coast and does athletics.
Employment Issues And The New Crowdfinancing Model
The extreme few yrs have been very inhumane to the humankind economies. The real estate bubble popped and affected all countries. Some states were affected more than others but in general all countries were affected economically. Various governments have been trying to stimulate employment in various forms. The US has been trying various forms of monetary policy to fix some of the banking problems such as quantitative easing I & II and Operation Twist. Although the government is trying to stimulate and fix the economy, one last arrow in the quiver is left. It’s called crowdfunding.
Short while ago in the USA the JOBS Act got accepted. The JOBS act which stands for Jumpstart Our Business Startups is meant to help small businesses raise capital easier via the crowd. Small businesses will now be able to legally solicit money from a large number of unaccredited investors without having to register with the SEC. This is powerful because an entire new group of investors will participate in new business formation that once didn’t exist.
Crowdfunding is a new form of financing . With advances in technology crowdfunding is now possible. The social network is now more powerful than ever. The social network makes crowd funding possible. Since so many people are connected online through various online networks, crowfunding is more prevalent with sites such as Kickstarter and Indiegogo exploding. The bigger the social network grows, the more power and possibilities of the network becomes. Viral marketing travels much faster then before. Everyone agrees that entrepreneurs are the key to job creation. The market is roughly $282 billion according to the Federal Deposit Insurance Corporation for small-business lending by US banks. The shift into the crowd funding market is huge. Some sites are showing 100 to 200% per year growth in crowd funding.
With this redesigned found way of capital creation, new businesses will have the opportunity to raise capital. From this capital, jobs will be created in various forms. Bill Gross from Newport beach California-based Pimco said “Jobs are being structurally destroyed. They have to start looking elsewhere”. This looking elsewhere means that individuals are becoming more creative and innovating new ideas such as a business startup ideas. These startups are going to the crowd funding model for much needed capital.
The economy has changed and so has the job market. People are now becoming more proactive in their own careers leading to more startups. These startups now have access to one of the most important ingredient which is capital. Welcome to the future of crowd finance.
Peera Lavestaauthors about the economic markets and peer to peer lending . She also authors about some of the venture capital investors topics of the hour. On her hours off she trots on the waterfront and does athletics.
I question What Enterprise Will Crowd Finance $1 Billion
With electronic components, creating capital is becoming easier, faster, and cheaper to raise. Crowd funding is breaking down the barriers. Technology is so cheap now and the social network is so big that crowd funding $1 billion is now possible. Everybody has cell phones, everybody has Internet access, everybody wants the new new thing.
Recently people have been able to raise capital quite quickly on crowd funding sites. I’m talking 5 million dollars in a matter of weeks from the general public. This is quite fast. Considering the industry is so new and so small. I haven’t even talked about the major players to be seen. The next few years is going to see the speed pickup and the amount of capital raised increased considerably. The beginning of crowd funding has just begun.
How will we get to one B dollars? Considering the market is so new. All the players haven’t arrived yet. We have several new players that will get involved. The major players on talking about are the institutional players. These players have major buying power. The players will be hedge funds, RIA’s, mutual funds, and high net worth individuals. These players are going to take the crowd funding to the billion-dollar level. It is just a matter of time before they have an interest or they are required to get involved in a new capital market.
With technology, raising capital is becoming easier, faster, and cheaper to raise. Crowd funding is breaking down the barriers. Technology is so cheap now and the social network is so big that crowd funding $1 billion is now possible. Everybody has cell phones, everybody has Internet access, everybody wants the new new thing.
Recently people have been able to raise capital quite quickly on crowd funding sites. I’m talking 5 million dollars in a matter of weeks from the general public. This is quite fast. Considering the industry is so new and so small. I haven’t even talked about the major players to be seen. The next few years is going to see the speed pickup and the amount of capital raised increased considerably. The beginning of crowd funding has just begun.
How will we get to 1 billion? Considering the market is so new. All the players haven’t arrived yet. We have several new players that will get involved. The major players on talking about are the institutional players. These players have major buying power. The players will be hedge funds, RIA’s, mutual funds, and high net worth individuals. These players are going to take the crowd funding to the billion-dollar level. It is just a matter of time before they have an interest or they are required to get involved in a new capital market.
Why would some investors be required to get involved in crowd funding? A new fund or ETF may be created and this will spark the requirement that they have to get involved in the crowd. When there is opportunities to be made and money to made they will show up. That is why they will be required to get involved in crowd funding.
The year 2012 could mark the birth of a new innovative crowd funding to the billion-dollar mark. Projects are raising capital faster and faster as time goes on. The social network is just beginning to show signs of its power in the capital markets. Keep this in mind the social network just started.
The question really becomes who will become the first company to crowd fund $1 billion? Maybe an apple going to the marketplace raising some debt? I doubt it they are making too much money already. ITunes is there printing press. But I’m sure there’s going to be some progressive company that is going to raise it and raise it quickly. I’m talking less than 30 days. Peace out crowd.
Annuities are becoming popular lately because most people don’t have pensions. This is the closest thing to a pure pension. Annuities are good because the risk is not on any state or government agency. You also have to keep in mind that taxpayers are not on the hook. This is one of the most beneficial things to switching to annuities because taxpayers don’t have to foot the bill anymore.
Just like the stock market a company uses an underwriter, the same will be true for the crowd funding model. There will be several underwriters that specialize in crowd underwriting. They will help out the business raise the capital fast and efficiently. The crowd funding model can be seen as a maze to new businesses that just want to grow their business. That is why the underwriter will be so important because they will have passed knowledge and experience raising capital from the crowd. These underwriters will also have a following that will help the crowd funding process faster.
Peera Lavesta jots about the stock markets and roth 403b . She also vents about some of the angel investor issues of the yr. On her years off she jogs on the strand and does athletics.
Crowdfunding Dangers And Perils
The economic shape of La schools is pretty sour. The last report showed that the California schools are in 40th place out of 50 states according to edweek.org. California is in pretty pathetic shape. It has cut and cut teacher pay and staff to the bare minimum bones. What this does is creates a shortage of educators. Layoffs in the educational system continue to this day.
Because of bureaucratic ways and unions the system in place barely kind of functioning. It needs help because times have changed. Pension plans that pay lifetime of pay are changing. These changes in the pensions will save some money. Old ways are sometimes hard to change. Especially when unions involved have to make both parties happy.
The clarification to this catastrophe is coming in the form of the crowd a.k.a. the social network of finance. Crowd funding will help schools raise the necessary capital to create an environment that is necessary for student achievement. Crowd funding is in its initial stages but is growing in different sectors. Crowdfunding will hit the educational sector with targeted niche geographical markets for funding soon.
Professors, staff, business development of schools will raise capital via crowdfunding. It will be a very niche market. But it will help those in that particular market that have a passion to help their own neighborhoods. Alumnis, faculty and staff, parents, sponsors and associates will all come together and participate in crowd funding projects for the school. It is very innovative and new.
Although crowd funding his new with participants such as kickstarter,indiegogo, treveri, and crowdcube, the changes will hit schools. Teachers need funding for their classrooms and they will find that with the financial crowd. Although it is new, people like to help each other out. The crowdfunding finance is the future.
Peera Lavestablogs about the economic markets and venture capital funding . She also authors about some of the crowdfunding issues of the hour. On her time off she runs on the seafront and does mind reading.
What the Parts Look like and Crowdfinancing
One of the most largest participant in the crowd will be the institutional player. Why are they the biggest? Because they have access to lots of capital. It is also disposable in various asset classes. Institutional players can be hedge funds, mutual funds, municipalities, insurance companies, government agencies, broker-dealers, and RIA’s. The institutional players consist of a very large group. They each have their own specialty but the thing that they have in common is being a participant in the crowd funding capital formation concept. Some say that institutional marketplace controls roughly 90% of the capital markets. Considering they are controlling 90% of the capital this will be a very large player in the crowd funding model.
Because information is so vital, the specialized researchers will help the crowd on making choices. These researchers will come from blog writers, advisors specializing in the crowd, broker-dealers with a research division, independent capital research firms, and newsletter writers. These researchers will be putting out research at a very quick pace. Considering the projects will probably be less than 45-60 days, their analysis will have to be quick and accurate. More than likely they will be very close with the company that is raising the capital or very knowledgeable of that industry and sector. Eventually these researchers will get a following and they’re following will follow each of their research reports and have great pull.
Just like the stock market a company uses an underwriter, the same will be true for the crowd funding model. There will be several underwriters that specialize in crowd underwriting. They will help out the business raise the capital fast and efficiently. The crowd funding model can be seen as a maze to new businesses that just want to grow their business. That is why the underwriter will be so important because they will have passed knowledge and experience raising capital from the crowd. These underwriters will also have a following that will help the crowd funding process faster.
The crowd funding portals will be the most important piece of the puzzle because this is the central location where the capital is being formed. The crowd funding portal will have various capital pits for the individual businesses that need capital. These portals usually have niche markets such as special industries, sectors, geographical location, and targeted investors. These crowd funding portals will be the central location where information and due diligence is moving back and forth from the project to the investor. The portal’s biggest influence will be about people that visit them. The more people that visit them the more chances the business has at raising capital. Since this is so new there really aren’t any big portals at the moment.
Peera Lavestatwits about the investment markets and angel investor . She also mentions about some of the angel funding debates of the month. On her time off she mudd wrestles on the shore and does athletics.
I Wonderment What Firm Will Crowdfund $1 Billion
With electronic components, raising fortune is becoming easier, faster, and cheaper to raise. Crowd funding is breaking down the barriers. Technology is so cheap now and the social network is so big that crowd funding $1 billion is now possible. Everybody has cell phones, everybody has Internet access, everybody wants the new new thing.
Recently people have been able to raise capital quite quickly on crowd funding sites. I’m talking 5 million dollars in a matter of weeks from the general public. This is quite fast considering the industry is so new and so small. I haven’t even talked about the major players to be seen. The next few years is going to see the speed pickup and the amount of capital raised increased considerably. The beginning of crowd funding has just begun.
How will we get to 1 billion? Considering the market is so new. All the players haven’t arrived yet. We have several new players that will get involved. The major players I’m talking about are the institutional players. These players have major buying power. The players will be hedge funds, RIA’s, mutual funds, and high net worth individuals. These players are going to take the crowd funding to the billion-dollar level. It is just a matter of time before they have an interest or they are required to get involved in a new capital market.
The year 2012 could mark the birth of a new innovative crowd funding to the billion-dollar mark. Projects are raising capital faster and faster as time goes on. The social network is just beginning to show signs of its power in the capital markets. Keep this in mind the social network just started.
The question really becomes who will become the first company to crowd fund $1 billion? Maybe an apple going to the marketplace raising some debt? I doubt it they are making too much money already. ITunes is there printing press. But I’m sure there’s going to be some progressive company that is going to raise it and raise it quickly. I’m talking less than 30 days. Peace out crowd.
Peera Lavesta posts about the fiscal markets and 403b to IRA . She also mentions about some of the 403b retirement plans debates of the weekend. On her days off she wrestles on the seaside and does exercise.
California Is Daydreaming And So Is CalPERS
Pensions are an at end of rope class. Why are they dying? They are dying because they go bankrupt. Social Security is probably the last pension in the US because all other state pensions are broken. I’m sure in the next few years you will be seeing some changes. California already wants to do a hybrid pension where the employee has more responsibility of their pension similar to a 401(k) in the private sector. These new changes will probably be appearing within the next one or two years. The old-style pensions are very unattainable. The closest thing to pensions are annuities. Annuities are for the private sector which probably will replace pensions. Annuities will shift the risk from the government agency and move it to an insurance company that specializes in risk.
Annuities are becoming popular lately because most people don’t have pensions. This is the closest thing to a pure pension. Annuities are good because the risk is not on any state or government agency. You also have to keep in mind that taxpayers are not on the hook. This is one of the most beneficial things to switching to annuities because taxpayers don’t have to foot the bill anymore.
The way these beneftis works say for example a teacher pays 8% of their income into the retirement pension, the school district pays 8.25%, and the state pays about 2%. So these pensions become very large over time. The employees have roughly about 19% going into their pension which is quite a bit of money. No other industry does this. The reason is because they go bankrupt because it’s paying so much money. Government pensions are one of the last there is. So enjoy it while you can.
Because the state pension for CalPERS has an unfunded liability, it continues to grow. Currently it’s about $64.5 billion. There were some pretty big sizable losses in 2008 and 2009. It was about $12.7 billion to the deficit. The market collapse of 2008 was not very good to pensions such as CalPERS. You have to consider these pensions are so large they can’t move in and out of the markets quick enough. It takes them sometimes six months to accumulate stock positions. When the markets do get very chaotic it’s very difficult for them to be nimble and quick.
Peera Lavesta facebooks about the financial markets and 403b to IRA . She also mentions about some of the 403 b maximum contribution gossip of the day. On her hrs off she kickboxes on the strand and does athletics.
The Washington Wine Industry And Crowdfunding
The next time you catch a glimpse of a barrel of wine you might want to ask yourself, did that bottle of wine come from the crowd? And if so, was it good or bad? Preferably it was yummy. More and more wineries are looking at alternative types of financing for their business. Because of this the type of financing, crowdfunding is becoming the new new finance. Hopefully your next bottle of wine came from the crowd.
Because of troubling business-related times, the wine labor will be more creative. Such creativity leads to crowdfunding. Instead of selling futures on wine, wineries will go to the crowd funding marketplace to raise capital and sell their product. Why would they do that? Well for one the fees are cheap. Second, you are expanding your user base of your product. Why wouldn’t that be good? A special select group of clients will get the first batch of future wines. Once it is out it is out.
Crowdfunding a vino is good. It creates cash flow when it is needed. It is a win-win situation. The winery likes it, the workers like it, and the clients like it. Making wine is very difficult because of the different seasons. Some years are good and other years are bad. You got to take the good with the bad. That’s why selling the wine inventory is so crucial when operating a winery.
Crowdsourcing a winery is good. It creates cash flow when it is needed. It is a win-win situation. The winery likes it, the workers like it, and the clients like it. Making wine is very difficult because of the different seasons. Some years are good and other years are bad. You got to take the good with the bad. That’s why selling the wine inventory is so crucial when operating a winery.
The next time you see a container of wine you might want to ask yourself, did that bottle of wine come from the crowd? And if so, was it good or bad? Preferably it was yummy. More and more wineries are looking at alternative types of financing for their business. Because of this the type of financing, crowdfunding is becoming the new new finance. Hopefully your next bottle of wine came from the crowd.
Taste like grapes, the wine industry is also evolving and innovating to change with the times. That is what makes the wine industry so beautiful. It is always changing and improving just like a palette.
Crowdista Fundistica talks about the financial markets and find investor . She also blogs about some of the looking for investors debates of the year. On her years off she boxes on the oceanfront and does exercise.
Enlightenment of Hollywood From Crowdfunding
In Hollywood there is a real cemetery called Hollywood Forever Cemetery. It’s a very ancient cemetery from 1899 or so, considering West Coast standards. It has some famous Hollywood people buried in it such as Rudolph Valentino, Douglas Fairbanks, Dee Dee Ramone, Johnny Ramone, and hundreds of others. During the summer you can also see movies in the cemetery. Usually niche or cult classic movies play. It is quite popular every year with the crowds getting bigger and bigger. Because of these new niche markets from technology, smaller independent films have a chance at the silver screen that once was only held by the large player.
The second-class budget silver screen usually run in the $500k to $20MM area. There will be a rise in this market because of the available funding from the crowds. It’s called crowd funding and it’s getting more and more popular for movies. If you go to sites such as Kick Starter or Indiegogo you will see a few movie projects at least once a week. This market is usually too small for the bigger players to enter to make money and too large for the smaller players to enter. With all this funding, there is starting to become a surge in smaller movies. When you look on Netflix you’ll notice more independent movies on their menu.
Because of automation, smaller low-budget movies have access to worldwide distribution. 10 or 15 years ago that didn’t exist. Today distribution to the world is here. Most of the low cost distribution is streaming type of distribution. Examples include Netflix, VUDU, Hulu, Itunes, Amazon, and many others. Technology has made it so that movies can be streamed and watched real-time without any lags. Because of this distribution, we’re able to see more and more movies from within the US and also international films.
Hollywood needs to look out because of carefree access to capital and distribution. The major movies and major production lines have major competition now. It is getting more common for a low-budget movie to become a blockbuster. When Blair Witch Project came out that was seen as an one hit wonder. Now, you got more and more movies like that blowing up. It is becoming common because technology is so good now these low-budget movies can compete with the majors because of low cost special effects and video quality.
The immediately after in time 5 to 10 years is going to be interesting for the motion picture industry. It may be another repeat of iTunes and the music industry. Except now the industry is movies. Hopefully Hollywood forever would not be a resting spot for Hollywood movie companies.
Crowdista Fundistica twits about the fiscal markets and crowd funding . She also blogs about some of the finding investors debates of the day. On her months off she runs on the coast and does yoga.
Everything Is Viewing On The US Crowd Funding
Who’s eyes are on crowdfunding? Well, the full planet is watching at the US market for business crowdfunding. Although business crowdfunding is legal in other areas out side the US, eyes are on the US crowdfunding new players.
People want to get in the investment return action. When was the last time you were able to participate in the next Facebook or Twitter? Those type of investments have been only available to the ultra high networth type of investors. Now the network is enabling the small mom and pop and friends and family members of the startup business to get involved.
Because itty-bitty investors will be in the hot action, institutions will want to get involved with the crowd. RIA’s to various hedge funds will get in on the crowdfunding deal mania. The safest deals will probably be debt type of deals because they will more then likely have some assets tied to the debt for security such as the David Bowie bonds along time ago. The records were used as colateral to the bond holders. Bowie wanted to buy back his prior records off the record labels. Thank god he did because Itunes came out and he banked out hard. The same will happen in the crowd but with a different deal.
Because there will be so many sites and deals, researchers will get involved primarly following the hot sectors and companies. They will also keep an eye on the consultants that put the deals together because of their crowd expertise.
Planning board will be the goto person for business’s that need capital fast and don’t want to hear about any obstacles the capital formation. The business knows it’s business while the consultant knows how to raise capital.
Overall new capital formation is arriving and business will get funded with a new capital vehicle called crowdfunding. Along the way, there will be several new players in the capital formation process that wasn’t seen 10 years ago. You have individuals, institutions, researchers, and consultants.
Crowdista Fundistica blogs about the business markets and peer to peer lending . She also writes about some of the 403 b maximum contribution topics of the day. On her days off she runs on the seaside and does Exercise.
