Bite-Sized Business Law Andrew Schwartz on Investment Crowdfunding
Today we are joined by internationally renowned equity crowdfunding expert Andrew Schwartz to discuss alternative routes of raising capital outside the typical venture capital model. Andrew is a Professor of Law at the University of Colorado Law School and a prolific writer, with his latest offering his new book, Investment Crowdfunding. In this episode, he gives us a thorough breakdown of what investment crowdfunding is and how it’s changing the investment landscape. He talks us through how one might go about setting up an investment crowdfunding campaign and what the benefits (and potential pitfalls) are of doing so. Andrew shares the three main goals of crowdfunding and explains the difference between standard and liberal crowdfunding models. Tune in to find out why investment crowdfunding is such a significant development for entrepreneurs and investors alike, and how it’s breaking down the barriers of the traditional investment model.
Key Points From This Episode:
•Today’s topic: Investment crowdfunding AKA equity crowdfunding.
•The potential of the investment crowdfunding model to democratize investing as we know it.
•An introduction to equity crowdfunding expert, Andrew Schwartz.
•Andrew explains investment crowdfunding and how it differs from the typical investment model.
•The key rules and legal restrictions of investment crowdfunding.
•How to set up an investment campaign on a crowdfunding platform.
•The difference between current investment crowdfunding and the Kickstarter model.
•Indiegogo’s unique model.
•The synergistic situation of raising funds via investment crowdfunding alongside VC capital.
•The stigma attached to equity crowdfunding in the early days.
•Examples of companies doing parallel fundraising with crowdfunding and VC capital.
•The benefits of the equity crowdfunding model.
•Syndication as a mechanism for governing the crowdfunding market.
•The difference between initial coin offerings and NFTs and investment crowdfunding.
•Andrew explains standard models and liberal models and how they differ.
•The three main goals of investment crowdfunding.
•How crowdfunding benefits groups who have traditionally faced barriers to starting businesses.
•How investment crowdfunding breaks down geographic limitations and biases.
•The potential pitfalls of the investment crowdfunding model.
•Andrew’s predictions for the future of the investment crowdfunding market in the context of recent bank turmoil and crypto bankruptcies.
•The snowball effect of investment crowdfunding.
•What drew Andrew to the equity crowdfunding space.
Links Mentioned in Today’s Episode: