CrowdfundInsider: The Need for Crowdfunding
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Crowdfunding has grown significantly as access to capital through traditional means like IPOs and venture capital has declined. While VC funding is still higher than pre-1995 levels, the flow of capital has slowed. Additionally, banks are loaning less to small businesses due to excessive regulation and risk aversion. This is problematic as small businesses are considered the growth engine of the economy. The document questions what will happen if an environment is not created for businesses to grow and prosper, using Greece as an example.
CrowdfundInsider: The Need for Crowdfunding
- 1. THE NEED FOR CROWDFUNDING 2012 CrowdfundInsider
- 2. 900 Dollars Raised greater than $50M Number of Offerings Dollars Raised less than $50M 675 450 225 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 DECLINE IN IPOS Access to capital via the public markets is on the decline. Increased regulation, volatile markets and other systemic challenges play a role. Source: SecondMarket 2012
- 3. VC DOLLARS HAVE DECLINED The 鍖ow of VC capital has slowed although it is still higher than pre 1995 levels. Source: The Kauffman Foundation May 2012
- 4. Loan Growth @ Small Banks by Supervisory Rating C&I and CRE loans under $1 million at small banks according to supervisory rating for three time periods: the four quarters ending in the second quarter of 2009; the four quarters ending in the second quarter of 2010 BANKS ARE LOANING LESS Crippled by excessive regulation and risk aversion banks are loaning less to small businesses Source: Federal Reserve Bank of San Francisco; August 2012
- 5. SMALL BUSINESS COUNTS According to the SBA - small Business is the growth engine of our economy. Source: SBA Small Business Advocate August - September 2012
- 6. HEY GREECE What happens to an economy that does not create an environment for business to grow & prosper? Source: Pinterest