What are the advantages of crowdfunding my project vs. traditional financing?
If you’ve raised money from investors before, you know there are quite few things you’d need to do on your own to raise capital legally and effectively:
- Determine, draft and file the appropriate regulatory filings at the federal and state level.
- Determine and pay the appropriate fees required by each state.
- Determine and comply with federal and individual states’ legal requirements.
- Write and generate marketing literature.
- Obtain and pay for legal services to draft the subscription agreement, management agreement and other required contracts.
- Pay a legal services firm or communication firm to generate a legally-compliant private disclosure memorandum.
- Possibly pay a promoter or broker-dealer to assist you with fundraising efforts.
- Meet with individual investors, perhaps several times with each, and travel constantly to do so.
- Receive and process payments.
- After you fund the project, maintain ongoing communications with each investor and calculate the amount owed to each investor and timely pay each investor.
EnergyFunders manages all of this on behalf of our venture capital funds instead of you doing this for your investors.