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Equity Crowdfunding

Why is Valuation Important in Equity Crowdfunding? When youre an entrepreneur, there are a lot of things to consider. Even if you have other professionals doing a number of tasks on your behalf, there are aspects you have to look into. One of these is valuation. Valuation is defined as an estimation of your companys worth. Its not easy to determine a companys value, but it is highly important. eres why! 1. Keeping your investors; " company shouldnt be over#valued. Once you go overboard, theres always a higher possibility that you will lose your potential investors. $o keep them close, always maintain a reasonable and realistic valuation of your startup. . !a"ing #orre#t de#isions when investors depart; When investors want to trade their stocks or when they want to get hold of their return on investment %&OI', you shouldnt be left behind. $his is one of the best times to arrive at a correct decision of your companys worth # for your own benefit as well as your investors. $. %roviding regular and a##urate updates; In a company, you and your investors are not the only ones involved. (eep in mind of your employees, advisors, etc. In one way or another, they are dependent on your company as much as you do. )o, give them regular and accurate updates on your companys worth means a lot to them. &. 'usiness planning for future growth

"s an entrepreneur, youll want to see your company going on a brighter path in the future. $hus, it is of utmost importance for you to be aware of valuation. $his way, you can come up with the best strategies for the future of your business. In sum, valuation is an important aspect of ones company. It affects your strategies, decisions, success or failures. Equity Crowdfunding in Europe Equity Crowdfunding in Europe as in other places is constantly changing, with that in mind, it's time for a status update. Statistics show that when a small business reaches a certain point, usually needing more than about $ !!,!!! to $ ,!!!,!!! they can get into a lot of trouble. "ost ban#s refuse to lend to businesses trying to e$pand when they are still young and this leads %usiness &wners searching for other alternati'es. (t's no wonder then, that they turn to Crowdfunding for a solution, in this case, Equity Crowdfunding. )he appeal of ha'ing 'arious smaller in'estors is growing on a daily basis. *hen it comes to crowd funding, smaller in'estors mean anything from $ + to $+,!!!. &f course with Equity Crowdfunding, the sta#es are raised a lot higher. E'eryone nowadays would lo'e to get in on the ground floor of a business that is about to )a#e ,light. -ight now, the rest of the world is loo#ing to Europe for guidance and assurance. .ccording to a document titled...-egulation/of/Crowdfunding/in/0ermany/ the/12/Spain/and/(taly/and/the/(mpact/of/the/European/Single/"ar#et, which is a'ailable 'ia Scribd345, the European Crowdfunding "ar#et is said to ha'e more than doubled in the years of !44 / !4 . )he 'alue of the o'erall Crowdfunding is up around one billion euros. Since 6uly of !47, (taly has become the first European Country to ha'e -ules and -egulations regarding the use of Equity Crowdfunding.3 5

&f the $ .8 billion that was raised world wide last year, only $449 million was raised for Equity Crowdfunding. :on't let those numbers fool you, that's still up ;4< from !44. )hat's only a =ump from =ust o'er $9> million to $449 million and an increase to >. < of the o'er all Crowdfunding "ar#et. ?owe'er, these details tell us that people are catching on to the possibility of ha'ing others fund their pro=ects, with a reward in return for the in'estment of course. Crowdfund (nsider shared a 'ery cool infographic that shares different data on :ollar ,igures.375 0oing bac# to the Status of Equity Crowdfunding in Europe, you'll be interested to #now that the dollar figure is e$pected to e$ceed $+.4 billion in !47. Considering that it is already towards the end of !47 as of this writing, we can e$pect huge results. (f you did the math again, that's roughly a + < increase from !47. "eaning, we can e$pect at least a +!< increase in the Equity Crowdfunding department as well. )his pushes the number up to around 9. <. (f the increase #eeps up at this rate, we'll see the mar#et for Equity Crowdfunding e$ceed the 4!< margin of the o'er all mar#et, by the year !4+. )hose of you who are in business or are loo#ing to get into business, should #now by now that you're not really doing that great if you're not grasping more than 4!< of your target mar#et. @our target audience is always important to ta#e into consideration. (f we loo# at the infographic mentioned abo'e, then we can see that the ma=ority of people gi'ing to Crowdfunding range in the + / >> age groups. "ar#eting is always the bac#bone of any company, as well are age groups. Europe is currently leading the way in the Equity Crowdfunding world, as well as in the o'er all Crowdfunding world. Crowdfunding in general is growing on a steady basis. (t could 'ery well be our future, in a world where ban#s collapse and people loo# to other funding solutions. -egardless of how you choose to loo# at Crowdfunding in general, it's always been with us in one form or another. @ou can be certain that it's here to stay.