Crowdfunding – a boon or bane

According to SEBI, Crowdfunding shall be defined as solicitation of funds (small amount) from multiple investors through a web-based platform or social networking site for a specific project, business venture or social cause. SEBI is currently in the process of establishing regulations on crowdfunding. Once this picks up, it will be a boon to the SME/early-stage startups to raise funds from small-time investors. Types of crowdfunding: Social/Donation crowdfunding Reward crowdfunding Peer – to – peer lending Equity crowdfunding The first two shall be social funding and last two shall be financial return funding. Social media is going to play a...

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A must-read for every venture wanting to raise funds.

Every startup has to invest a lot of time and effort to raise money to scale and keep the business going. All the effort and time invested, could be for nought, if, one very important, but oft under-estimated aspect is ignored. That, is the compliance and regulatory health of any start-up. It includes everything from the start-up’s incorporation certificate to intellectual property rights. Every VC/Angel investor, before pumping in their money, will perform a due-diligence process. This process varies in tenure and complexity based on the industry, nature of transaction and also the stage of investment. Any deal is successfully...

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