Here is an article about some obvious and creative ways people are funding their start-ups. I know that the last group talked about crowed funding which as an interesting alternative to the typical money raising methods, but I also thought this list suggested some other ideas that I wouldn’t have thought of and think you guys might find interesting.
http://www.forbes.com/sites/martinzwilling/2013/03/06/10-more-creative-ways-to-finance-your-startup/#20e569a52f0d
One aspect of crowd funding that has troubled me, and which there seems to be some press about, is what happens if the company doesn’t fulfill their promises. What if they dont actually create the product which they have promised. How are they kept responsible to those people who funded them.. That’s why I think these alternative ways to finance a start-up are so important.
The SEC final rules “Regulation Crowdfunding” provide safeguards against this sort of thing
Obviously, retaining equity is really important for the owners of startups. I am unsure of how the Jobs Act will affect this. One of the biggest benefits, besides raising capital, of the crowdfunding website Kickstarter, was that the companies could retain equity. Now, if investors have the option of crowdfunding for equity, they may prefer that option. That means that companies that were using crowdfunding websites and retaining equity may now have to give up equity to raise money.