Skip to Content
Crowdfunding: A Guide to Raising Capital on the Internet
book

Crowdfunding: A Guide to Raising Capital on the Internet

by Steven Dresner
March 2014
Intermediate to advanced
272 pages
7h 26m
English
Wiley
Content preview from Crowdfunding: A Guide to Raising Capital on the Internet

CHAPTER 1

Crowdfunding: A Historical Perspective

Jason Best and Sherwood Neiss

Crowdfund Capital Advisors

Crowdfunding, simply put, is pooling the financial resources of many individuals to convert an idea into a project or business. Instead of relying on a few large donors, it requires many small ones. This chapter steps back in time to understand what happened to this form of financing, why it's “new all over again,” and why it's emerging as one of the hottest topics in global business financing. It reviews the risks that led to changes in U.S. financial laws in the early twentieth century and how these laws had the unintended consequence of shutting off capital markets to many startups and small businesses. It discusses how advances in the Internet and technology have allowed us to safely go back to where we started. Today's crowdfunding enables anyone to use the Internet to gauge the value of people's ideas and use online reputations and their own judgment and experience to make their own decisions about which ideas have the best chance for success.

Crowdfunding Isn't New

Crowdfunding is a new way to do something old. It uses the Internet to facilitate capital formation in much the same way that communities financed transactions as far back as 3000 B.c. Prior to the advent of banks and other financial institutions, wealthy families and rulers provided loans to individuals in communities to finance everything from businesses to infrastructure. Financial instruments not unlike ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.

Read now

Unlock full access

More than 5,000 organizations count on O’Reilly

AirBnbBlueOriginElectronic ArtsHomeDepotNasdaqRakutenTata Consultancy Services

QuotationMarkO’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.
Julian F.
Head of Cybersecurity
QuotationMarkI wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.
Addison B.
Field Engineer
QuotationMarkI’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.
Amir M.
Data Platform Tech Lead
QuotationMarkI'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
Mark W.
Embedded Software Engineer

You might also like

The Crowdfunding Revolution: How to Raise Venture Capital Using Social Media

The Crowdfunding Revolution: How to Raise Venture Capital Using Social Media

Kevin Lawton, Dan Marom
Raising Entrepreneurial Capital, 2nd Edition

Raising Entrepreneurial Capital, 2nd Edition

John B. Vinturella, Suzanne M. Erickson

Publisher Resources

ISBN: 9781118492970Purchase book