VCgate
Crowdfunding - a welcomed alternate solution of funding

Many entrepreneurs think that venture capital or angel investments are the only means by which they can attract funds for their business. This is a truth that used to be valid until several years ago, when the concept of crowdfunding has been invented. 

Crowdfunding is a very different way of raising the funds that you need for your business. The elements that make crowdfunding different can be summed up like this:

- by creating a crowdfunding platform, you will have the benefit of raising money from the direct beneficiaries of your business.

- crowdfunding means receiving funds from persons on the internet to whom you will not have to refund the investment. There are no return rates when it comes to crowdfunding.

- crowdfunding allows you to raise capital without giving away any of your stock or management power.

All these elements make crowdfunding to be a very special way of raising funds that addresses especially to small business owners, but that can be used by all the entrepreneurs out there. Mastering a crowdfunding formula will guarantee the success of your company in a short period of time. 

How to choose international investors?

If you are an entrepreneur seeking for external funding, you have probably already thought about raising money from venture capitalist, angel investors or equity investors. But there are several aspects that should be taken into consideration when looking for an international investor.

You should consider aspects like the stage of development of your business, the geographic location of your potential business partner, the ways in which it could help you to have an investor who can actively get involved in the management of your company etc. Even though investors generally prefer to fund businesses that are located in the same area as them, as investors do not have an homogeneous spread in the world, they also accept funding businesses located in other regions than their own. This generally happens when the business idea which is presented to them is actually a very good one.

If you are looking for investors to fund your business, you should consider checking the VC Gate data base, which provides relevant data concerning investors and their funding habits. This software provides information about more than 5100 investors and data related to the way in which they manage to cover different areas in the world. 

Do You Want a job in Venture Capital? Here is a review of Mark Suster’s post on bothsidesofthetable:

http://vcfirms.wordpress.com/2010/11/11/venture-capital-firms-%E2%80%93-how-can-i-get-a-job-in-such-a-firm/

Learn more about Causes, the company that started its activity as a Facebook application and now has its own website:

http://www.vcgate.com/2010/10/18/causes-spreading-philantropy-online/

Find out how you can save on your next business plan:

http://www.vcgate.com/2010/10/08/save-on-your-next-business-plan/

A 6-step process that will help you raise money from Angel Investors:

http://www.vcgate.com/2010/10/07/video-how-to-raise-money-from-investors/