Learn the ins and outs of equity crowdfunding with this informative guide Equity Crowdfunding for Investors is a comprehensive, objective, and authoritative guide to the social and financial rewards of crowdfunding. Before now, angel investing and the spectacular returns possible in this asset class has been off-limits to all but the wealthiest Americans. Now equity crowdfunding portals allow the general public to buy shares in startups and fast-growing private companies for the first time in generations. This book provides the guidance individuals need to invest wisely, tempering the excitement of leading-edge technology, innovative business models, and exciting new brands with thorough, practical know-how including investor limits and requirements, portfolio strategy, deal terms, and much more. Readers will learn the pros and cons of investing in equity crowdfunding so they can make an informed investment decision, as well as best practices for finding, researching, evaluating, and buying into potentially profitable startups. Digital components include tables, graphs, comparison charts, screen captures, checklists, and other tools that further enable readers to make suitable investment choices. Equity crowdfunding is a new, exciting, and evolving way for growing businesses to raise capital and for average investors to buy equity in those businesses. It has been hailed as a "game changer" in the private capital markets, particularly the angel investment asset class, which includes angel investing. This book shows readers how to take full advantage of this new avenue of investment, without being taken advantage of themselves. * Make smarter investment decisions * Avoid being ripped off * Find the best information available * Understand the SEC rules and limits Equity crowdfunding can produce huge returns. It also comes with huge risk. Some companies will succeed, but many will fail. Everyday investors can mitigate some risk and increase their chance of profit with the fundamental insight provided in Equity Crowdfunding for Investors.
Foreword ix Preface: The New Angel Investors xv Definitions of Key Terms xxv Acknowledgments xxvii About the Authors xxix CHAPTER 1 The Foundations of Online Crowdfunding 1 CHAPTER 2 Equity Offering Platforms (under Regulation D) 19 CHAPTER 3 Equity Crowdfunding 49 CHAPTER 4 Intrastate Equity Crowdfunding 69 CHAPTER 5 Deal Flow 81 CHAPTER 6 Angel Investors 95 CHAPTER 7 Equity Crowdfunding Portals 117 CHAPTER 8 How to Invest, Part I: Portfolio Strategy 135 CHAPTER 9 How to Invest, Part II: Identify Suitable Offerings 153 CHAPTER 10 Equity Crowdfunding Securities 163 CHAPTER 11 Deal Terms 175 CHAPTER 12 How to Invest, Part III: Due Diligence 205 CHAPTER 13 How to Invest, Part IV: Funding and Postfunding 233 CHAPTER 14 Liquidity and Secondary Markets 243 Epilogue: Trends and Innovations 253 Equity Crowdfunding Resources 255 About the Companion Website 259 Index 261
