Raise Capital With Private Investors

If you have launched your own startup, your first biggest challenge is to raise capital. Fortunately, you choose from a lot of options to raise the funds your business needs. Among all the sources, crowdfunding is one of the best ones as it helps redefine how startups can get off the ground. In this article, we are going to help you know the benefits of raising capital with private investors through a crowdfunding platform. Read on to find out more.

Benefits of raising capital with private investors

1. Funding is not equity-based

First of all, crowdfunding is not necessarily equity-based. Although startups have the liberty to use the equity in order to catch the attention of potential investors, It’s not required to give up ownership to collect capital.

The good news is that some platforms allow their members to apply a reward-oriented approach in order to raise capital. For instance, if your business deals in a specific product, make sure you hand over a few units to your prospective investors before you roll it out for the ultimate users.

2. Attracting potential investors is easy

With crowdfunding, you can attract a lot of potential investors without putting in a lot of effort. Although you can try for angel investors, keep in mind that this process can cost you a lot of time. The reason is that you will have to pitch your small business concept several times.

On the other hand, if you use a crowdfunding platform, you will have to post your business pitch in only one place. And this page will be ready by hundreds of investors from across the globe.

These platforms have a lot of useful features that may help startups collect funds from investors. So, attracting potential investors and raising capital will be much easier using crowdfunding platforms.

3. Higher visibility

Crowdfunding can help you make your startup more visible. Since marketing may consume a large chunk of your budget, it makes sense to use a crowdfunding platform instead. For potential investors, it’s easy to fund a crowdfunding campaign.
And these activities can help boost the visibility of your brand. Plus, you can also attract investors for your next funding rounds.

The Bottom Line

If you want to raise funds for your startup, crowdfunding can be the best choice. All you need to do is become part of a crowdfunding platform and you will be able to tap into the pool of potential investors. And this will help you kick start your business and make it a success in the industry.

Commercial Finance Funding and Identifying Zombie Banks

In the world of business finance funding, the colorful terms “Zombie Banks” and “Dead Banks Walking” have been applied recently to a number of commercial lenders. Although these discussions have an element of humor and entertainment, there is a practical aspect to them as well. Ultimately it is not likely to be in the best interest of a business owner to have extensive involvement with any of the banks which these terms describe accurately. In any case it should be beneficial for commercial borrowers to understand what constitutes a zombie bank and what they should do if they are working with a dead bank walking.For any business owner currently needing a commercial loan or working capital financing, the concept of “Dead Banks Walking” is likely to be an essential part of their decision. This description has been used by several sources recently, all with a similar reference point of banks which have already gone broke. This critical but apparently accurate assessment is largely derived from a straightforward net worth approach. Such an analysis recognizes that many banks have substantial assets which are either worthless or at least worth well below the values reflected on their books, with the resulting real current value being less than the current debts of many banks.Based on the evaluation of many observers who have realistically reviewed current asset values, most of the largest banks in the United States been shown to be worth even less than Lehman Brothers (which is already in bankruptcy). Many banks have compounded their public relations nightmare by demonstrating very little common sense in how they make commercial loans and spend money. If a bank is already worthless, it certainly calls into question how businesses and commercial borrowers will benefit by the government throwing money at these “zombie banks” in the first place. This controversy has been fueled by the failure of most banks to increase their commercial lending to business owners after receiving government bailout funds. Banks who have received bailout funds appear to be determined to hoard the money in order to preserve their own solvency rather than providing commercial finance funding to commercial borrowers.This raises several questions. The emerging consensus is that giving otherwise bankrupt companies (the dead banks walking) more cash does little more than cover the internal operating expenses for the zombie banks.First, should we really believe that a bank should be “saved” simply because it is so large? There appears to be a growing majority of the public which would suggest that these banks have already lost too much good faith to ever recover in response to some arguments that the largest banks cannot be taken over even if they are already insolvent.Second, is there a better way to solve the problem than giving insolvent banks more money? George Soros and others have recently described in detail how other banking systems have successfully handled mortgage financing. Even though residential and commercial real estate loans are thought to be at the heart of the current crisis, there is no real effort underway to revise this approach.Third, can business owners really afford to wait for the government to solve this problem? Although waiting a few weeks or even several months might be viable for a practical solution which results in needed commercial loans, the current logjam impacting business finance funding shows little evidence of subsiding that quickly. Prudent commercial borrowers should seek alternative sources for essential working capital financing such as business cash advances. In case it is not obvious from the discussion above, dead banks walking and zombie banks can be avoided when seeking new commercial financing.

The Best Books on Cryptocurrency

The Sovereign Individual ~ by James Dale Davidson and William Rees Morg

The Sovereign Individual is one of those books that forever changes how you see the world. It was published in 1997 but the degree to which it anticipates the impact of blockchain technology will give you chills. We’re entering the fourth stage of human society, shifting from the industrial to an information age. You need to read this book to understand the scope and scale of how things are going to change.

As it becomes easier to live comfortably and earn an income anywhere, we already know that those who truly thrive in the new information age will be workers who are not tethered to a single job or career and are location independent. The pull to choose where to live based on price savings is already more appealing, but this goes beyond digital nomadism and freelance gigs; the foundations of democracy, government and money are shifting.

The authors predicted Black Tuesday and the collapse of the Soviet Union, and here they foresee that the rising power of individuals will coincide with decentralized technology nibbling away at the power of governments. The death toll for the nation states, they predicted with extraordinary prescience, will be private, digital cash. When that happens, the dynamic of governments as stationary bandits robbing hard-working citizens with taxation will change. If you’ve become someone who can solve problems for people anywhere in the world, then you’re about to enter the new cognitive elite. Don’t miss this one.

Choice Quotation: “When technology is mobile, and transactions occur in cyberspace, as they increasingly will do, governments will no longer be able to charge more for their services than they are worth to the people who pay for them.”

Sapiens: A Brief History of Humankind ~ by Yuval Noah Harari

Whenever I want to impress on someone how good this book is, I ask: “Do you want to know the fundamental difference between humans and monkeys? A monkey can jump up and down on a rock and wave a stick around and screech to his friends that he’s seen a threat coming their way. ‘Danger! Danger! Lion!’ A monkey can also lie. It can jump up and down on the rock and wave a stick around and screech about a lion when there is, in fact, no lion. He’s just fooling around. But what a monkey cannot do is jump up and down and wave a stick around and screech, ‘Danger! Danger! Dragon!’”

Why is this? Because dragons aren’t real. As Harari explains, it is human imagination, our ability to believe in and talk about things we have never seen or touched that has elevated the species to cooperate in large numbers with strangers. There are no gods in the universe, no nations, no money, no human rights, no laws, no religions and no justice outside the common imagination of human beings. It is us that makes them so.

All of which is a rather magnificent preamble to where we are today. After the Cognitive Revolution and the Agricultural Revolution, Harari guides you into The Scientific Revolution, which got underway only 500 years ago and which may start something completely different for humankind. Money, however, will remain. Read this book to understand that money is the greatest story ever told and that trust is the raw material from which all types of money are minted.

Choice Quotation: “Sapiens, in contrast, live in triple-layered reality. In addition to trees, rivers, fears and desires, the Sapiens world also contains stories about money, gods, nations and corporations.”

The Internet of Money ~ by Andreas M. Antonopoulos

If the two books mentioned above help us to understand the historical context in which Bitcoin first appeared, then this book expands on the ‘why’ with infectious enthusiasm. Andreas Antonopolous is perhaps the most respected voice in the crypto space. He’s been traveling the world as a Bitcoin evangelist since 2010 and this book is a summary of talks he gave on the circuit between 2013 and 2016, all tightened up for publication.

His first book, Mastering Bitcoin, is a technical deep-dive into the technology, aimed more specifically at developers, engineers, and software and systems architects. But this book uses some choice metaphors to explain why you can’t ban Bitcoin or turn it off, how the scaling debate doesn’t really matter and why Bitcoin needs the help of designers to lock in mass adoption.

“When you first ride your brand new automobile in a city,” he writes, “you are riding on roads used by horses with infrastructures designed and used for horses. There are no light signals. There are no road rules. There are no paved roads. And what happened? The cars got stuck because they didn’t have balance and four feet.” But fast forward one hundred years and the cars that were once ridiculed are absolutely the norm. If you want to swim around in the philosophical, social and historical implications of Bitcoin, this is your starting point.