The crowdfunding industry is expected to reach $93 billion by 2025.
In today’s business climate, a large portion of startup founders and entrepreneurs remain severely underfunded. This burden falls mostly on the shoulders of women and minorities who watch 98% of VC funding go into the pockets of men. Predominantly white guys, but you probably didn’t need the reminder.
Depressingly, one study showed that “since 2009, black women have raised just 0.0006 percent of the total $424.7B in venture capital for tech companies.”
That’s much less than even 1%. Gah! That’s a stark contrast to the lion’s share going to men, as we mention above. This inequality in funding has gone unchecked for decades, because most Americans are non-accredited investors, which shuts them out of ever gaining early equity in an emerging company. But recently, thanks to the JOBS Act, everyday investors can now invest using Federally regulated, online equity crowdfunding platforms.
Equity crowdfunding has changed who gets a seat at the table with regards to startup funding. Non-accredited investors participating in regulation crowdfunding, provides another avenue to raise money, beyond venture capitalists and angels; expanding opportunity for all.
Most startups tend to be in the tech sector, which is suffice to say the founders tend to be software developers or similarly focused. The marketing messaging for a startup is crucial and can make or break pitch decks and other financing opportunities. Yet, founders tend to struggle with marketing the most, because it’s beyond their particular skill set. It can take an outside perspective to help develop the best language, social media outreach strategy and more.
We invite any startup or development stage company looking for capital solutions to build their business, as well as any angel or early-stage investors looking to protect their investment with early liquidity tools, to contact us to learn more about the DigitalAMN growth ecosystem.