Is Hyperfunding.com the best source of equity based hyperfunding or crowdfunding. What is Hyperfunding?
Let us share some of the similarities and differences between crowdfinancing and hyperfunding. This can explain why hyperfunding is the Official Equity Based source for large equity deals in Crowdfunding. We are truly limitless in deal size stay tuned to the development as we are making it easier to unite vendors, investors, upstarts, business ventures and crowd finance projects.
First, What is the difference between Crowdfunding and Hyper Funding?
Answer:
Crowdfunding pertains to donation based fundraising for businesses or creative projects via an online funding portal. Hyper Funding pertains to equity based fundraising, whereas equity ownership in a business is given in exchange for investment capital via an online funding portal as per the Jobs Act of 2012.
Loan to Equity (LtE) or Hyper Funding –
This form of Crowd Funding is based on equity ownership being given to contributors in exchange for their monetary investments. The JOBS Act of 2012 (Jumpstart Our Business Startups) enables the smaller or amateur investor(s) (up to 2,000 shareholders) to become “venture capitalists” of sorts in a more informal, low scale way.
Loans – donors loan money to the entrepreneur, which is paid back later, generally with interest
Equity – donors are basically given some amount of equity in the business that is raising the funds
The Wiki answer:
Crowd funding or crowdfunding (alternately crowd financing, equity crowdfunding, hyperfunding and equity crownfunding) describes the collective effort of individuals who network and pool their money, usually via the Internet, to support efforts initiated by other people or organizations. Crowdfunding is used in support of a wide variety of activities, including disaster relief, citizen journalism, support of artists by fans, political campaigns, startup company funding,[3] motion picture promotion,[4] free software development, inventions development, scientific research,[5] and civic projects.
Crowdfunding can also refer to the funding of a company by selling small amounts of equity to many investors. This form of crowdfunding has recently received attention from policymakers in the United States with direct mention in the JOBS Act; legislation that allows for a wider pool of small investors with fewer restrictions.[2] While the JOBS Act awaits implementation, hybrid models, such as __________ are using existing securities laws to enable the public in approved states to invest directly in clean energy projects as part of a crowd.
Crowdfunding has its origins in the concept of crowdsourcing, which is the broader concept of an individual reaching a goal by receiving and leveraging small contributions from many parties. Crowdfunding is the application of this concept to the collection of funds through small contributions from many parties in order to finance a particular project or venture.[6]
Crowdfunding models involve a variety of participants.[7] They include the people or organizations that propose the ideas and/or projects to be funded, and the crowd of people who support the proposals. Crowdfunding is then supported by an organization (the “platform”) which brings together the project initiator and the crowd.