How to Survive in Equity Crowdfunding

LawCloud discusses the current crowdfunding landscape and how democratization will impact the future.

Video Transcript

Seth Gordon: My favorite thing that you said is, is the idea of the marketing behind everything and the mass exposure. I think one of the biggest things that I've seen is a lack of preparation on the marketing side of things for people. And that's why.

Tom Loutrel: Good point.

Seth Gordon: We've seen some people go down in flames pretty early because the competition for it is going to continuously rise. The cream will definitely rise to the top in this. And survival is a matter of obviously having the best setup. But it really has to deal with exposure and marketing yourselves. If you go in, you don't have enough capital to really maintain yourself for at least a year or two, and you don't market yourself well to investors, you will flame out far before that two years is done. I've seen it happen already.

Tom Loutrel: Yeah. Now that that's a really great point. And, and what's disappointing. We'll tell you what it's disappointing about equity crowdfunding is that three, three companies control the whole thing and there needs to be, there needs to be 20 companies that big, is really what it needs. I mean, that, and it's a long haul for all these other companies that are trying to be that big. And I think there's a lot of good ones that are well-funded that will get there. But it's disappointing the three companies that have 85% of the market share, 75% of the market share or whatever, whatever it may be. We all know there's three companies. What is it Republic, StartEngine, and Wefunder.

Seth Gordon: Yep. Yeah, absolutely. Well, and I think that that's, what's exciting about the new Reg. CF or I should just say like the SEC updates that they've done is that, you know, we talk about democratizing access to private investments. This really democratizes the ability for more crowdfunding portals to exist now. I think that the ability to succeed at this point is, is going to be elevated as a result of that, because the most strategic, the most tactical best prepared well-marketed companies are the ones that are going to survive.

Related Videos

WealthSign Demo

WealthSign is the first E-Sign solution designed entirely for Capital Raising. WealthSign was built to save time, grow with your team, and deliver a streamlined subscription automation process.

From Questions to Solutions: Why a Reliable Tech Platform Partner is a Win-Win

CalTier Realty Fund discusses the value of having a responsive, reliable tech platform partner and why their team loves working with WealthBlock.

How WealthBlock Facilitates Investments Using a Self-Directed IRA with "Mind-Blowing" Speed

CalTier Realty Fund talks about WealthBlock's ease of use and how it's helping them streamline investing for investors using a self-directed IRA.

How Technology Turbocharges Real Estate Investing

CalTier Realty Fund talks technology and some of their new developments in the REIT space and international investing.

If you think about an elegant solution of keeping resources organized, being more efficient, and a manager that may not have the time or the team to manage 50 investors, you have to herd these cats, so to speak, into one area and get the deal done. I think WealthBlock is that solution.

Chris Shen

Founder, Revere

Schedule a Demo

We'll unpack what you need and provide a solution!