Also in this playlist...
This transcript is automatically generated
Good news for lunch for viewers looking to raise cash the FCC recently lifted its ban on advertising and solicitation.
Opening the floodgates for -- -- -- to fund -- on the wet.
Today CEO we have John Callahan co-founder I -- to tell you how you can raise capital online and grow your business in the process John thank you very much for coming -- So can you tell us a bit about what this SEC band being lifted means for startups and entrepreneur Norris when it comes to raising capital on the -- In the past if you wanted to raise money you have to register in what's a pretty expensive and burdensome process especially for small businesses.
What's the the band does is say that there's an exemption.
There -- you know of course can -- to raise money.
But in the past exceptions like that meant you have to keep deal secret it only -- people you knew.
Secrecy comes down we will deal with the lifting of ban and know all eligible investors should can you had confessed.
No eligible investors.
-- not everyone.
In the future we'll have crowd funding.
Where people can and guys that can invest small amounts of money -- In incomes but everyone prepared to speak right now it's just accredited investors.
Who who have incomes over 200003.
Owned -- forward with networks over a million dollars.
It's -- is that the -- restriction -- as far as this is concerned are there any other restrictions that entrepreneurs and snow.
That's an important restriction although when you think about that restriction it still means a big population -- -- accredited investors in this country.
But concede -- the real restriction that comes with that is that in the past.
Investor could just check off on.
On -- checklist that he was credited.
Good paying any accredited investor has to prove it.
And that documentation is gonna be burdensome for individuals do you think it does -- being lifted will lead to any -- -- for devious marketing practices.
The thing is that we will worry about to about that because now you're going to have it -- -- advertising.
-- for companies and the lot of them are going to sell homes that are going some really great and -- will be great.
You're going to have individuals who want qualified.
Say you know I won't get in on that to me and her perhaps.
The -- about -- -- qualification to good soundly if there's these accredited investors really need to be careful and that the process right.
And they do but one of the things about the process that we anticipate is that we you don't really opens the door for what we think the social poignant -- Where.
We're people are testing on -- and.
See you brought along a few tips for startups or -- viewers were looking to raise some money via.
I crowd or other crowd funding site to the Britney -- to do your work up front to explain a little bit more about that.
One of the things that it's -- -- keep in mind.
Is that being successful in your fund raising aspects -- important as having work product -- haven't -- quality control you wanna do it right.
And and so when you come to investors.
You have to put yourself in their shoes and -- you need to beat you need to build trust but if you haven't on the ground work which is.
Getting -- documentation together understanding what it's what it takes to communicate to -- investors.
Before you begin the process.
Then you're not going to be successful and you won't create the trust and that on -- relationship that's also key to that this.
Well that's -- number -- to create relationships this is important in every aspect of this that's why it's so important when it comes to raising capital via I crowd or other crowd funding platform.
Well and something like keep in mind is the real departure we have from the past.
Where people were at a distance from their investments from an absolute looked -- to see whether they have the four letters that -- -- to the computer.
A world where -- -- they have dollar to today that and -- big and as you can.
-- Understand that -- alienating experience what we have here.
With -- with this social finance is that people will have more direct communication with their.
With the off from work.
And what's more the guilt nor has a chance to build customer base from those people who enthusiasts.
From those people who you know who then could come from advocates but also -- think that.
-- for most companies this is not the only time they're going to need money if you have a loyal group of people who invest with you before that you have established.
You know those -- those close ties then you're you're going to be successful.
He can come back to them again except with and -- like this last -- he said be realistic and don't over promise.
Do that that's a a hazard that's.
Because of all of us involved in business you know or record your approach to.
And -- the things that we wouldn't be successful weren't optimistic.
And at the same time when you do your business plans when you communicate to investors.
You don't post move.
If you -- to -- so if you will of course.
And to and at the same time realize that there are risks that you're gonna have to do with the news if you're not candid about -- of the risks you face.
If you're not going to develop the trust with the with investors that -- -- great -- John thank you so much for coming inning giving those tips for our viewers -- been real pleasure thanks Kate very.
From New -- -- Roger is Fox Business stock cop.
Filter by section