Marchmont network: business news | conferences | consulting
Marchmont blog Eng | Рус

Friday, February 15, 2013

Conscience Is In, Greed Is Out and Crowdfunding Is On


This op-ed by Victoria Silchenko, founder and CEO of the U.S.-based Metropole Capital Group and a member of Marchmont's Advisory Board, was first published at Huffington Post. Victoria has taken a pro-active stance in promoting crowdfunding--and not only in LA.

When I opened our monthly Global LAVA group meeting last Friday, I couldn't help but pronounce it out loud: "If anyone would like to know what the market trends are, check out our LAVA (Los Angeles Venture Association) meetings and see how packed the room is!" What made about 80 people meet at rather a vicious time -- 7:30 a.m. -- was not a question but a matter of fact: crowdfunding, our Global LAVA's topic of the month, is clearly on the minds of entrepreneurs.

The enormous impetus of the entrepreneurial community's decisive move toward crowdfunding -- the relatively new way to raise money via online communities -- is a result of the ultimate failure of the financial system that has proved to be dysfunctional for the most self-starters in the U.S. and globally.

In the past four years, according to the National SBA survey, almost half of small businesses have not been able to secure capital; 38 percent of small businesses had loans and lines of credit either reduced or revoked. As the most recent PWC Money Tree Report revealed, the investments into seed stage companies decreased by 31 percent last year -- the lowest annual seed dollars since 2003.

I believe there is a whole generation of the brightest and brilliant minds that have failed to obtain capital not because of their poor business models or lack of ambitions but because the VCs have primary focused on tech for at least past 25 years.

There is one more "catch." As a new study released by the Institute for Exceptional Growth Companies (IEGC) and Pepperdine University confirms, women-owned and foreign-owned businesses are 23 percent and 46 percent accordingly less likely to obtain venture capital.

While the fate of equity-based crowdfunding here in the United States is in the hands of the Securities & Exchange Commission (that was due to arrive with regulation rules last year but missed the deadline), rewards and donation's based crowdfunding models are getting their momentum. Why?

I would seriously argue that today, if you are a minority or represent any start-up but tech, and you look for seed capital, chances are crowdfunding is most likely the only option to go with.

After tirelessly trying to get the attention from Silicon Valley and local VCs to his SATORI Brands, an LA based international beverage start-up company, Daniel Regidor has recently turned to the on-line community. He started his first crowdfunding campaign on Kickstarter and presented the potential backers with an insightful video produced by the SATORI supporter Anthony Zuiker (a creator of the CSI TV series). In less than a week the company received almost 4,000 Facebook "likes" and on the day I am writing this post, there is $33K pledged toward the $60K goal.

If you are an entrepreneur and about to jump into crowdfunding websites, a note of warning: running a crowdfunding campaign is not easy and might be a grueling process. As Regidor confessed, without benefits of having an established network of friends and supporters in the media industry here in Los Angeles, the cost of his crowdfunding campaign would easily jump to $10K and more. He and his team are also in the dark on how to be featured on Kickstarter's main page, which increases the chances of being financed significantly. Lastly, the "all-or-nothing" model operated by Kickstarter means that if you haven't met a pre-set target, the money that you've been able to raise will be returned to the backers.

To date there are numerous other, primary niche crowdfunding platforms and not all of them have the "Cinderella clock." One of my favorite examples is WhenYouWish.com, a global reward-based crowdfunding platform with a focus on non-profits. The company is backed by John Mackey, the founder of Whole Foods Market and author of the recently published Conscious Capitalism. I love the book. At our Global LAVA meeting, the CEO and co-founder of When U Wish, Dave Harvilicz, was wearing a yellow t-shirt that had the tag "Team Conscious Capitalism" on. Harvilicz's motto -- "Forget big banks and government -- we, the people, can unite to bailout each other." Harvilicz and a team of other doers and disruptors are going to speak at our second annual Next Entrepreneurship and Global Crowdfunding Forum here in Los Angles on November 15th, 2013. Please mark your calendar. And let me know if you want the yellow t-shirt as well.

The rise of crowdfunding is not sudden. To date this new form of financing is the only form that directly connects passion with a market demand and a supply of capital. Add to this an emerging culture of transparency, thanks to the unlimited potential of thousands of blogs, discussion groups and e-mail threads that are on safeguard, and I bet you'll feel a welcome change in the financial system.

But most importantly, for most entrepreneurs crowdfunding is not just an option anymore. It is a necessity. And as we all know, necessity is the mother of invention. Stay tuned.

77 comments:

  1. The project might not have a place being funded by traditional investors or companies, or too risky for them to consider it. It might just be small, a one-off thing, or something else beneath the notice of larger, monied entities. Ascenergy

    ReplyDelete
  2. Pretty helpful material, PHP programming Help much thanks for this article

    ReplyDelete
  3. This comment has been removed by the author.

    ReplyDelete
  4. Home insurance covers budgetary misfortunes related with harm or loss of a property you possess. This arrangement gives money related assurance against catastrophes.
    http://firsttrackinsurance.com/homeinsurance

    ReplyDelete

  5. افضل شركة تنظيف منازل بالدمام
    شركة تنظيف شقق بالدمام شركة تنظيف شقق بالدمام
    شركة مكافحة حشرات بالخبر شركة مكافحة حشرات بالخبر
    شركة رش مبيدات بالدمام شركة رش مبيدات بالدمام
    شركة تنظيف بالخبر شركة تنظيف بالخبر
    افضل شركة نقل عفش بالاحساء افضل شركة نقل عفش بالاحساء
    شركة كشف تسربات المياه بالاحساء شركة كشف تسربات المياه بالحساء

    ReplyDelete
  6. I am not much into reading, but somehow I got to read nice information on your site. Simple to understand and helpful. We will look forward for your future updates.Thanks! power washing

    ReplyDelete
  7. That is so interesting to know about crowdfunding. Thanks!
    Anon | https://www.landscapingservicescolumbia.com

    ReplyDelete
  8. Amazing, this is a great article, Clipping Path Associate, is one of the best clipping path service provider around the world. tree removal

    ReplyDelete
  9. Crowdfunding is just the way to go if you have a small business but has the brightest potential. Site

    ReplyDelete
  10. Here are some strong argumentative words you should use in your essay. Take it as a good tip.

    ReplyDelete
  11. This is really great news. I shared this article with my colleagues too! https://www.newyorkhoodcleaning.net

    ReplyDelete

  12. نقل عفش

    نقل عفش من الرياض الى مصر نقل عفش من الرياض الى مصر
    نقل عفش بالدمام نقل عفش بالدمام
    نقل عفش بالاحساء نقل عفش بالاحساء
    نقل عفش داخل مكة نقل عفش داخل مكة

    ReplyDelete
  13. great information [url="http://www.lafayette-concrete.com"]concrete[/url]

    ReplyDelete
  14. This is a really great article! I hope you find this useful https://www.houseflipfunding.com/

    ReplyDelete
  15. Thanks for sharing this great information.| Check here

    ReplyDelete
  16. very useful informative information it really helps a lot ...thank you for sharing glass cleaning newcastle

    ReplyDelete
  17. I definitely agree with the premise of this article and relate to it personally.

    Thanks for the read!

    https://www.spartanburglawn.com


    ReplyDelete
  18. Great information! I always visit this site for a nice stuff to read. hammtreeservice.com/

    ReplyDelete
  19. Awesome information, glad to see this post. Check me here

    ReplyDelete
  20. At the point when I opened our month to month Global LAVA bunch meeting last Friday, I really wanted to articulate it for all to hear: "On Top leather jackets the off chance that anybody might want to realize what the market patterns are, look at our LAVA (Los Angeles Venture Association) gatherings and perceive how pressed the room is!" What made around 80 individuals to meet at rather a horrendous time 7:30 a.m was not an inquiry but rather an obvious truth: crowdfunding, our Global LAVA's subject of the month, is plainly on the psyches of business people.

    ReplyDelete
  21. How do you even start crowdfunding, I would like to with my
    glazier in coventry

    ReplyDelete
  22. It is important for medical science research paper service students to seek Medical Science Assignment Help from a reputable custom medical science writing company so as to be assured of good grades in their medical science essay writing services.

    ReplyDelete
  23. This is a great inspiring article.You put really very helpful information...
    rijschool zoetermeer

    ReplyDelete
  24. It is important for cultural studies coursework writing service students to seek Cultural Studies Writing Services from a reputable cultural studies assignment writing service provider for their cultural studies research paper services.

    ReplyDelete
  25. ROYAL BUICK GMC IN BATON ROUGE Thank you for choosing Royal Buick GMC! Our selection of new and used vehicles, along with an extensive variety of parts, accessories, and tires, will certainly blow your mind away. We take great pride in serving the Baton Rouge, Gonzales, and Hammond Buick and GMC drivers. Our financial experts will also help you with the best way to purchase your dream vehicle with utmost ease. Make the most of our hours and directions page to get to our Baton Rouge dealership. Royal Buick GMC is waiting for you!
    GMC Baton Rouge

    ReplyDelete
  26. Boxer shorts for men don’t have to be a boring purchase. Splash out on men’s fashion underwear that we have on offer. We have something for all men’s underwear styles - boxer briefs and boxer shorts for men as well as some more revealing men’s shorts to try. Looking slick underwear for men are truly unique for anyone who is looking to wow their partner by owning these mens revealing shorts
    men's fashion underwear

    ReplyDelete
  27. I have read your excellent post. I have enjoyed reading your post first time. Thank you...
    real estate investments in Raleigh NC

    ReplyDelete
  28. Thank you so much for ding the impressive job here, everyone will surely like your post.
    real estate sales in Raleigh NC

    ReplyDelete
  29. Online education writing services companies have come up with Online Education Assignment Help for education and teaching studies students in order for them to score straight A’s in their custom education research paper services.

    ReplyDelete
  30. Really nice and interesting post.information and enjoyed reading this one.
    private investigators Madrid

    ReplyDelete
  31. good post. Keep posting. Thanks for sharing.
    토토사이트

    ReplyDelete
  32. Thanks, very good post. Keep posting. Thanks for sharing.
    genf20 plus

    ReplyDelete
  33. When I opened our monthly Global LAVA group meeting last Friday, I couldn’t help but pronounce it out loud: “If anyone would like to know what the market trends are, check out our LAVA (Los Angeles Venture Association) meetings and see how packed the room is!” What made about 80 people to meet at rather a vicious time — 7:30 a.m. — was not a question but a matter of fact: crowdfunding, our Global LAVA’s topic of the month, is clearly on the minds of entrepreneurs. contact us

    ReplyDelete
  34. Really good content. I enjoyed the read. Thanks for sharing! louisville residentail concrete

    ReplyDelete
  35. Thank you for your post, today i find it finally. this post give me lots of advise it is very useful for me.
    Automotives Blog

    ReplyDelete
  36. Really good content. I enjoyed the read. Thanks for sharing! Biuro rachunkowe Toruń cennik

    ReplyDelete
  37. www.poltax.net
    Boxer shorts for men don’t have to be a boring purchase. Splash out on men’s fashion underwear that we have on offer. We have something for all men’s underwear styles - boxer briefs and boxer shorts for men as well as some more revealing men’s shorts to try. Looking slick underwear for men are truly unique for anyone who is looking to wow their partner by owning these mens revealing shorts

    www.biuro-rachunkowe-torun.net/
    www.biuro-rachunkowe-torun.eu/
    biuro rachunkowe Toruń

    ReplyDelete
  38. The industry source for precious metals investing
    Rare Metal Blog

    ReplyDelete
  39. Finding the best biological science paper writing help and Biological Science Writing Services is not easy unless one is keen to establish a reliable biological science research paper provider & biological science coursework writing services.

    ReplyDelete
  40. To seek the best Psychology Research Writing Services for those studying psychology writing services, it is important to hire award winning psychology paper writing help services.

    ReplyDelete
  41. Conscience is a fundamental part of humanity, if you would like to know more click here.

    Many thanks,
    Jack

    ReplyDelete
  42. What a beautiful article of what it is to be human, many thanks for sharing all that you do.

    Shaun @ Arb

    ReplyDelete
  43. We believe that as a part of our community we should always give back Tile Floors

    ReplyDelete
  44. Nice information, valuable and excellent design, as share good stuff with good ideas and concepts,
    Markets

    ReplyDelete
  45. Always so interesting to visit your site.What a great info, thank you towing in providence ri

    ReplyDelete
  46. Increasing GPA is the headache of every student, because , it is interlinked with the future progress and open a lot of opportunities to gain success in the life after completing the education. Select Dissertation Writing Services for getting a high GPA.

    ReplyDelete
  47. Nelson & Son Construction Service, Inc. is a custom home builder located in Arvada, Colorado and serving the entire Denver metro area as well as the front range from Fort Collins to Colorado Springs. They specialize in custom home building, new construction, design build services, and steel building construction.
    new home construction

    ReplyDelete
  48. Do My Homework small businesses have not been able to secure capital; 38 percent of small businesses had loans and lines of credit either reduced or revoked. As the most recent PWC Money Tree Report revealed, the investments into seed stage companies. assignment writers across the globe are well trained in their chosen field of study which reflects in multiple offer. It is important to choose the best one among the many.

    ReplyDelete
  49. Nice post! This is a very nice blog that I will definitively come back to more times this year! Thanks for informative post.
    genf20 plus vs hgh-x2

    ReplyDelete
  50. very well post really like it thank for sharing..
    Anthony Dietrich Gainesville VA

    ReplyDelete
  51. That's a Great Source of information. Thanks for sharing. Digital Marketing Vancouver, BC

    ReplyDelete
  52. Very interesting read. Can you share more ideas like this one? It can help our Brooklyn Hood Cleaning service a lot.

    ReplyDelete
  53. Thanks for the Share, This was so interesting! Longmont businesses

    ReplyDelete
  54. It seems like an educational blog which always some new information to visitors commercial cleaning service west palm beach and Enjoying every little bit of it and I have you bookmarked to check out new stuff you blog post.

    ReplyDelete