Startups Can Get Crowdfunded by Accredited Investors with RockThePost
Thanks to sites like Kickstarter and Indiegogo, many small businesses have made their first products with the help of crowdfunding. However, due to these popular crowdfunding sites’ openness to the public, those who fund a business’s project cannot get equity from their investment. Backers can only receive rewards such as products or free services for their contributions. This practice often discourages backers from offering larger amounts of money to startups since their contribution is more akin to a gift than an investment. Cool product RockThePost changes the crowdfunding model by applying it to a group of accredited investors rather than the public at large. On RockThePost, startups that are looking for funding and seed capital can post company profiles and short pitch videos. RockThePost’s community of investors can then browse through different startup pitches and make funding offers through the website. This also allows a startup to pitch their company to multiple investors at once conveniently. This process saves the business important resources in its early stages. The money and time a company saves from finding investors and developing individualized pitches can go into other needs such as office IT support and product development.
Interestingly, RockThePost’s business model was not viable or even legal until very recently. In 2012, congress passed the JOBS Act, which lifted some restrictions on startup investments. One of the restrictions that the bill lifted was the ban on general solicitation. This means that startups can now advertise that they are raising capital publicly. Lawmakers instituted this change so that businesses could reach the ears of more potential investors who could help them get off the ground. RockThePost lets startups reach a wide variety of investors by giving them a direct platform to solicit funds from a large community of investors. With their public and open platform, RockThePost should be able to help more businesses raise funding. The funding of these businesses could increase the creation of jobs and help fuel economic growth.
RockThePost also provides benefits for investors and not only startups. Normally, smaller investment firms and lower-profile individual investors run into trouble finding promising startups. This situation is due to most young businesses targeting only high profile investors. Since RockThePost makes startup pitches available to any accredited investor that wants to see them, low-profile investors will have a more level playing field. Any accredited investors that want to invest but have technical trouble with the RockThePost website should seek computer support for help.
RockThePost’s application of crowdfunding principles to equity-based investing could make big differences for the world of tech startups. How big those changes are will only become apparent as time passes.
About RESCUECOM:
RESCUECOM provides computer repair and computer support, 24/7: Meeting every tech support need including data recovery, virus removal, networking, wireless services, and computer support for all brands of hardware and software. For computer support or information on products, services, or computer repair, visit https://www.rescuecom.com or call 1-800-RESCUE-PC.
For More Information, Contact:
David Milman
CEO
david@rescuecom.com
1-315-882-1100