• SeedInvest’s due diligence process is no guarantee of success or future results. All investors should carefully review each investment opportunity and cancel their subscription within the allotted time-frame if they do not feel comfortable making any specific investment based on their own DD. Learn more about due diligence on the SeedInvest Blog (https://www.seedinvest.com/blog/angel-investing/how-to-assess-an-investment) and our vetting process in our FAQs (https://intercom.help/seedinvest/en/).

  • SeedInvest’s selection criteria does not suggest higher quality investment opportunities nor does it imply that investors will generate positive returns in investment opportunities on SeedInvest. Learn more about due diligence on the SeedInvest Blog (https://www.seedinvest.com/blog/angel-investing/how-to-assess-an-investment) and our vetting process in our FAQs (https://intercom.help/seedinvest/en/).

  • Diversification is only across multiple early-stage investment opportunities within the asset class. There is no guarantee that this program will lead to a well-balanced portfolio of companies across industry types or stages across the asset class. In addition, enrolling in this program will not lead to diversification across your entire investment portfolio. In order to achieve diversification, we do not recommend you allocate more than 10% of your entire investment portfolio to alternative assets.

  • Testimonials may not be representative of the experience of others and are no guarantee of future performance or success. No individuals were compensated in exchange for their testimonials.

6 Ways Industry Groups can Benefit from Equity Crowdfunding

With the release of proposed equity crowdfunding rules, many organizations (like TiE, AAPI, Entrepreneurs Organization, MIT Enterprise Forum, NASABA, NAPABA, CEO Council, AAHOA and ATDC), meetup groups (like New York Tech Meetup) and other communities should now consider how equity crowdfunding could be used to benefit their community. SeedInvest Halo offers a powerful solution that will allow these groups to quickly (with no coding) deploy their own private funding platform where their members can list, fund and close crowdfunding offerings.   Here are some potential benefits:

1.  Support the Mission.  Most groups are organized around a common cause or purpose.  Crowdfunding can help pool resources and support new ventures that propel this cause forward.  For example, AAPI’s mission to facilitate and enable Indian American Physicians to excel in patient care, teaching and research and to pursue their aspirations in professional and community affairs.  This mission would be furthered by helping to fund a medical device that helped physicians provide better care.

2.  Increase Engagement & Enthusiasm.  Crowdfunding campaigns are short periods of intense action, creating a lot of excitement.  Members will be more engaged on a day-to-day basis with causes to rally around.  This will strengthen the relationships among members, thereby building up the internal binding of the organization.

3.  Increase Deal Flow.  Successful crowdfunding campaigns almost always lead to a number of new business deals and partnership offers.  When members see a campaign, they will think through whether the issuer is a potential business partner and often reach out to the issuer to make a proposal.  This peripheral deal flow often is far more valuable than the money raised in the campaign itself.

4. Member Benefits.  Access to crowdfunding opportunities can be marketed as a membership benefit to people seeking to raise funds, invest funds or seek out new business partnerships.

5.  Revenue Opportunities.  Crowdfunding can help you monetize your community, though regulatory concerns will limit the types of compensation that can be earned.  Here are some examples for monetization:

  • Increase sponsorship opportunities from companies who successfully raise funds
  • Advertising opportunities on crowdfunding campaign pages
  • Opportunities for sponsors to provide services to issuers (i.e. legal, accounting, etc.)
  • Referral fees for non-investment deal flow (as described in #3 above)
  • Transaction fees or carried interest are possible, but would carry burdensome regulatory requirements and may not be feasible.

6.  Collaboration with other Groups.  SeedInvest Halo allows groups to open their campaigns up to other groups who may have an overlapping mission.  This type of two-way collaboration will strengthen the relationships among groups, perhaps leading to greater cross membership and joint event opportunities.

Halo currently is only available for accredited investors until the equity crowdfunding rules become effective (potentially by mid-2014).  For more information, or to schedule a demo of SeedInvest Halo, please visit http://gs.seedinvest.com/halo/.

What else?  How else could existing groups benefit from implementing crowdfunding within their organization?


This post was written by SeedInvest on September 6, 2016

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