Equity Crowdfunding for Investors: A Guide to Risks, Returns, Regulations, Funding Portals, Due Diligence, and Deal Terms (Wiley Finance) - Hardcover

Freedman, David M.; Nutting, Matthew R.

Hardcover

ISBN 10: 1118853563 ISBN 13: 9781118853566

Publisher: John Wiley & Sons, 2015

Synopsis

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.

About this title

About the Author

DAVID M. FREEDMAN has worked as a financial and legal journalist since 1978. He has served on the editorial staff of The Value Examiner since 2005. He is coauthor of the 1987 book Death of an American, about the Singer v. Wadman civil rights lawsuit in Salt Lake City.

MATTHEW R. NUTTING practices corporate law with the firm Coleman & Horowitt in Fresno, CA, where he advises on all facets of business law, including a special emphasis in rewards-based and securities-based crowdfunding. He is a director of the National Crowdfunding Association and served as its National Legal Affairs Director. He is also the cofounder of CrowdPassage.

From the Back Cover

Praise for
Equity Crowdfunding for Investors

"The authors of Equity Crowdfunding for Investors take a complex subject and make it simple. It is as entertaining as it is educational. It is, simply stated, the best book on equity crowdfunding that I have read."
—Jonathan Friedland, publisher of Accredited Investor Markets (AIMkts.com), partner in the Chicago law firm Levenfeld Pearlstein, and author of The Investor's Guide to Alternative Assets

"Equity Crowdfunding for Investors performs an invaluable service...giving much practical guidance on how to understand and approach participating as an investor in securities-based, and particularly equity, crowdfunding. It is also enjoyably readable."
—Charles Sidman, MBA, PhD, founding member of the Angel Capital Association and past president of the Crowdfunding Professional Association

An Authoritative and Comprehensive Guide to Equity Crowdfunding

"Few opportunities in life can generate personal wealth as profoundly as being a founder or early investor in a startup that achieves grand success."
—From the Preface

For anyone who wants to invest in the potentially high-return and often high-risk marketplace, Equity Crowdfunding for Investors + Website offers a practical and objective guide to the social and financial rewards of crowdfunding. Authors David M. Freedman and Matthew R. Nutting detail the ins and outs of equity crowdfunding and show how to budget for angel investments, set realistic expectations, select the industry, company, and development stage to invest in, conduct the necessary research, monitor the companies you invest in, and know when to cash out.

Whether you are new to crowdfunding investing or have experience as an angel investor, you can mitigate some risk and increase your chance of profit by tapping into the fundamental insight, investment strategies, and the commonsense approach outlined in Equity Crowdfunding for Investors.

From the Inside Flap

Until recently, angel investing—and the potentially enormous returns this strategy can generate—has been an opportunity available only to the wealthiest Americans. However, recent changes in the law have produced equity crowdfunding portals that allow the general public to buy shares in startups and fast-growing private companies.

Equity Crowdfunding for Investors + Website is an objective and authoritative guide to the social and financial rewards of crowdfunding. Written by David M. Freedman and Matthew R. Nutting—two noted crowdfunding experts—this comprehensive volume and its companion website offer the information, strategies, and guidance needed to understand this new universe of securities investing. Equity Crowdfunding for Investors explores the evolution of crowdfunding, from donation- and rewards-based crowdfunding to lending- and equity-based crowdfunding, and offers invaluable lessons about the risks, rewards, occurrence of fraud, and the wisdom (or madness) of the crowd.

Equity Crowdfunding for Investors details the best practices for finding, researching, evaluating, and buying into potentially profitable startups. The authors also show how angel investments can affect overall portfolio performance in terms of diversification, asset allocation, liquidity, and longterm financial objectives. In addition, the companion website includes the most up-to-date versions of equity crowdfunding resources, checklists, and tools to aid in making wise investment choices.

In the process of seeking financial returns and strategic benefits, angel investors can also derive social rewards: boosting community development, creating new jobs, supporting favorite products and brands, and helping good people make their dreams come true. Equity Crowdfunding for Investors is a practical guide for helping investors of all sizes achieve both financial and social returns.

Edition details

• Publisher: John Wiley & Sons
• Publication date: 2015
• Language: English
• ISBN 10: 1118853563
• ISBN 13: 9781118853566
• Binding: Hardcover
• Number of pages: 304