by Lea Strickland | Sep 10, 2016 | Glossary
Donation-based crowdfunding occurs when individuals provide a gift of financial support, a donation, to support a cause or project they believe in. The donors may receive a token gift in return for the donation.
by Lea Strickland | Sep 10, 2016 | Glossary
The executive summary is usually the first section of a business plan that provides an overview of the company, encapsulating the reason for writing the plan.
by Lea Strickland | Sep 10, 2016 | Glossary
A convertible note is a debt agreement (loan) at the time the investment in the business is made. However, the loan balance (principal plus interest) may be converted into ownership at a later date. Conversion may be triggered automatically when a new round of...
by Lea Strickland | Sep 6, 2016 | Glossary
Regulation D Crowdfunding occurs when businesses seek investment as either equity or debt. Businesses use on-line and traditional means to reach the “crowd of potential investors”.
by Lea Strickland | Sep 5, 2016 | Glossary
Equity-based Crowdfunding generally occurs when an investor receives an ownership interest in the company in exchange for his or her investment. Equity = Owner The investor becomes a shareholder in the company. Depending upon the type of shares/ownership interest the...
by Lea Strickland | Sep 4, 2016 | Glossary
Rule 501 of Regulation D defines an accredited investor as: Institutions and Businesses Banks, insurance companies, registered investment companies, business development companies, or small business investment companies; Employee benefit plans, within the meaning of...