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With crowd funding, social media becomes a powerful tool

With crowd funding, social media becomes a powerful tool

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Published by Crowdsourcing.org

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Published by: Crowdsourcing.org on Apr 02, 2012
Copyright:Attribution Non-commercial

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03/20/2013

 
With crowd funding, social media becomes apowerful tool
By: Erik Siemers , April 2, 2012
Thought leaders in Portland’s startup scene have generally praised the
legislationsent to President Obama last week  that would make it easier for companies to raise equity capital from large groups of smallinvestors.
With “crowd funding,” startups would be able to more easily seek equity
investors in places like Facebook. And most of the peopleI spoke with
 expect the practiceto make it easier for small companies to raise capital from a class of investors who have, until now, largely been shut out of the process.Shelly Gunton,executive director of the Center for Innovation &Entrepreneurship atPortland State University , believes the real advantage comes in the freedom to use social media to attractinvestment.
“The beauty of crowd funding is it can provide you with a very diverse
and passionate group of funders who are putting money into yourcompany because they truly
 believe in what you’re doing and supportyou even though they’re not accredited investors,” Gunton said. “If you’re smart, you’re gong to leverage that group of investors (reached
through social media) as your advocates and passionate believers.

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