How to avoid fraud on crowdfunding sites

Of those contributors, 68 percent have given to a campaign to help a person in need. But, as with other kinds of giving, it’s smart to scrutinize the cause before you pull out your wallet. “The entire campaign was predicated on a lie,” Burlington County Prosecutor Scott Coffina told reporters at a news conference, according to NBC. GoFundMe told CNBC that donors to that “Pay It Forward” campaign will receive a full refund under the site’s refund policy. “If fraud occurs, donors get refunded and


Of those contributors, 68 percent have given to a campaign to help a person in need. But, as with other kinds of giving, it’s smart to scrutinize the cause before you pull out your wallet. “The entire campaign was predicated on a lie,” Burlington County Prosecutor Scott Coffina told reporters at a news conference, according to NBC. GoFundMe told CNBC that donors to that “Pay It Forward” campaign will receive a full refund under the site’s refund policy. “If fraud occurs, donors get refunded and
How to avoid fraud on crowdfunding sites Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-27  Authors: kelli b grant, seth wenig
Keywords: news, cnbc, companies, given, campaign, sites, told, refund, whithorne, money, mcclure, help, crowdfunding, avoid, policy, pay, fraud


How to avoid fraud on crowdfunding sites

If a crowdfunding campaign is part of your charitable plans for #GivingTuesday or later in the holiday season, take care to make sure your act of kindness doesn’t have unintended consequences.

More than 1 in 5 consumers (22 percent) have pitched in for at least one such project, which raises money toward a common aim via small contributions from a large number of people, according to a 2016 report from Pew Research Center. Of those contributors, 68 percent have given to a campaign to help a person in need.

But, as with other kinds of giving, it’s smart to scrutinize the cause before you pull out your wallet.

Earlier this month, prosecutors charged a New Jersey couple and a homeless man with second-degree theft by deception, alleging they worked together to perpetuate a scam that raised more than $400,000 on GoFundMe. Last year, the couple — Mark D’Amico and Kate McClure — created a “Pay It Forward” campaign to benefit Johnny Bobbitt Jr., claiming Bobbitt had given McClure his last $20 to help her get home after her car ran out of gas.

“The entire campaign was predicated on a lie,” Burlington County Prosecutor Scott Coffina told reporters at a news conference, according to NBC.

GoFundMe told CNBC that donors to that “Pay It Forward” campaign will receive a full refund under the site’s refund policy. Spokesman Bobby Whithorne said such misuse is rare — accounting for less than one-tenth of 1 percent of all campaigns — but that “one fraudulent campaign is one too many.”

“We have a zero tolerance policy for fraudulent behavior,” Whithorne said. “If fraud occurs, donors get refunded and we work with law enforcement officials to recover the money.”


Company: cnbc, Activity: cnbc, Date: 2018-11-27  Authors: kelli b grant, seth wenig
Keywords: news, cnbc, companies, given, campaign, sites, told, refund, whithorne, money, mcclure, help, crowdfunding, avoid, policy, pay, fraud


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Crowdfunding site Indiegogo lets firms issue new cryptocurrencies classed as securities

Crowdfunding website Indiegogo is launching a platform for companies to sell new asset-backed cryptocurrencies classed as securities. The company’s new service is hosting a sale of digital tokens on behalf of luxury ski resort St Regis, in Aspen, Colorado, with the cryptocurrencies being issued by a firm called Aspen Digital. “We have been working on our blockchain offering for a while now,” Rubin told CNBC in a phone interview. The company is working with crypto brokerage start-up Templum to of


Crowdfunding website Indiegogo is launching a platform for companies to sell new asset-backed cryptocurrencies classed as securities. The company’s new service is hosting a sale of digital tokens on behalf of luxury ski resort St Regis, in Aspen, Colorado, with the cryptocurrencies being issued by a firm called Aspen Digital. “We have been working on our blockchain offering for a while now,” Rubin told CNBC in a phone interview. The company is working with crypto brokerage start-up Templum to of
Crowdfunding site Indiegogo lets firms issue new cryptocurrencies classed as securities Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-08-23  Authors: ryan browne, pradeep gaur, mint, getty images
Keywords: news, cnbc, companies, working, issue, lets, investors, aspen, site, firms, cryptocurrencies, classed, securities, indiegogo, digital, offering, tokens, bitcoin, crowdfunding, sale


Crowdfunding site Indiegogo lets firms issue new cryptocurrencies classed as securities

Crowdfunding website Indiegogo is launching a platform for companies to sell new asset-backed cryptocurrencies classed as securities.

The company’s new service is hosting a sale of digital tokens on behalf of luxury ski resort St Regis, in Aspen, Colorado, with the cryptocurrencies being issued by a firm called Aspen Digital.

The development follows Indiegogo’s push into the initial coin offering (ICO) market in December, where start-ups sell new digital coins in exchange for established cryptocurrencies like bitcoin and ether.

The serious investing side of Indiegogo’s offering is a small portion of its overall business. But co-founder Slava Rubin said the firm is “hoping to see continued growth if this is what the market demands.”

“We have been working on our blockchain offering for a while now,” Rubin told CNBC in a phone interview. “It really goes back to our original vision where we wanted to democratize access to capital and bring investment all kinds of people around America and the world.”

Blockchain is the technology that underpins numerous cryptocurrencies like bitcoin. It maintains a continuously growing digital ledger of all cryptocurrency transactions, across a decentralized network of computers.

The company is working with crypto brokerage start-up Templum to offer the securities tokens, called “Aspen Coins,” to investors. With the first offering of its kind on the platform, investors will be able to indirectly own an equity stake in a real estate investment trust (REIT) that owns the St Regis resort, Indiegogo said. Investors will be able to purchase the digital assets with U.S. dollars, bitcoin and ether, the digital token of the Ethereum blockchain.

The sale is similar to a crowdfunding method in the cryptocurrency industry known as an initial coin offering (ICO), where blockchainstart-ups raise capital by selling new digital assets. Except, in this case, the sale comes under regulatory provisions, according to Indiegogo.


Company: cnbc, Activity: cnbc, Date: 2018-08-23  Authors: ryan browne, pradeep gaur, mint, getty images
Keywords: news, cnbc, companies, working, issue, lets, investors, aspen, site, firms, cryptocurrencies, classed, securities, indiegogo, digital, offering, tokens, bitcoin, crowdfunding, sale


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Societe Generale acquires renewable energy crowdfunding platform Lumo

Banking giant Societe Generale has bought renewable energy crowdfunding platform Lumo, it said in an announcement Thursday. Lumo, a fintech company from France, offers both businesses and individuals the opportunity to help finance a range of renewable energy projects in France. “Societe Generale is committed to the positive transformation of our societies and economies,” Pierre Palmieri, head of global finance and head of sustainable and positive impact finance at Societe Generale, said in a st


Banking giant Societe Generale has bought renewable energy crowdfunding platform Lumo, it said in an announcement Thursday. Lumo, a fintech company from France, offers both businesses and individuals the opportunity to help finance a range of renewable energy projects in France. “Societe Generale is committed to the positive transformation of our societies and economies,” Pierre Palmieri, head of global finance and head of sustainable and positive impact finance at Societe Generale, said in a st
Societe Generale acquires renewable energy crowdfunding platform Lumo Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-06-22  Authors: anmar frangoul, chesnot, getty images news, getty images
Keywords: news, cnbc, companies, renewable, generale, finance, impact, projects, lumo, transition, societe, energy, crowdfunding, positive, acquires, platform


Societe Generale acquires renewable energy crowdfunding platform Lumo

Banking giant Societe Generale has bought renewable energy crowdfunding platform Lumo, it said in an announcement Thursday.

Lumo, a fintech company from France, offers both businesses and individuals the opportunity to help finance a range of renewable energy projects in France.

The platform has been used to finance around 40 wind, hydroelectric and solar projects. The electricity output of these projects amounts to more than 260 million kilowatt hours, Societe Generale said, enough to meet the needs of nearly 100,000 homes.

“Societe Generale is committed to the positive transformation of our societies and economies,” Pierre Palmieri, head of global finance and head of sustainable and positive impact finance at Societe Generale, said in a statement.

“The energy transition is key to this transformation and a priority we share,” he added. “With this transaction, we are reaffirming our willingness to continually adapt our sustainable and positive impact finance approach by drawing on our innovative skills and pioneering spirit to support the energy transition.”

Societe Generale described itself as being “fully committed to the renewable energy sector” and is aiming to raise 100 billion euros ($116.4 billion) between 2016 and 2020 in order to finance the energy transition. Among other things, it is also targeting a 25 percent reduction in carbon dioxide emissions per employee by 2020, compared to 2014.

Alexandre Raguet, the co-founder and CEO of Lumo, described Societe Generale’s acquisition of his company as “a clear recognition of the relevance of our model.”

“We are very excited about joining the Societe Generale Group and exposing Lumo to the bank’s expertise that will take it to a new level in its development strategy,” Raguet added. “We will also be able to meet our goal to develop useful and tangible projects that have a positive impact on our environment.”


Company: cnbc, Activity: cnbc, Date: 2018-06-22  Authors: anmar frangoul, chesnot, getty images news, getty images
Keywords: news, cnbc, companies, renewable, generale, finance, impact, projects, lumo, transition, societe, energy, crowdfunding, positive, acquires, platform


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Crowdfunding, volunteering, trivia — and other unexpected ways to wipe out your student debt

3 ways to get other people to pay off your student loansAs student debt grows, so do the plans to squelch it. Some of the ideas are pretty creative: New Jersey, for example, is considering establishing a lottery for borrowers burdened by student debt. Other ways of getting money to eliminate your education debt don’t rely on luck, but rather require rolling up your sleeves or knowing historical facts. “All money you receive for volunteering or win on a trivia app or lottery is considered income


3 ways to get other people to pay off your student loansAs student debt grows, so do the plans to squelch it. Some of the ideas are pretty creative: New Jersey, for example, is considering establishing a lottery for borrowers burdened by student debt. Other ways of getting money to eliminate your education debt don’t rely on luck, but rather require rolling up your sleeves or knowing historical facts. “All money you receive for volunteering or win on a trivia app or lottery is considered income
Crowdfunding, volunteering, trivia — and other unexpected ways to wipe out your student debt Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-05-15  Authors: annie nova
Keywords: news, cnbc, companies, workall, pay, volunteering, wipe, lottery, volunteer, unexpected, win, crowdfunding, money, student, trivia, debt, ways


Crowdfunding, volunteering, trivia — and other unexpected ways to wipe out your student debt

3 ways to get other people to pay off your student loans

As student debt grows, so do the plans to squelch it.

Some of the ideas are pretty creative: New Jersey, for example, is considering establishing a lottery for borrowers burdened by student debt. Other ways of getting money to eliminate your education debt don’t rely on luck, but rather require rolling up your sleeves or knowing historical facts.

Keep in mind, however, that these endeavors aren’t free aid. The funds are taxable, even money from an organization in return for volunteer work.

“All money you receive for volunteering or win on a trivia app or lottery is considered income by the IRS,” said Mark Kantrowitz, a student loan expert.

Here are some of the ways to get other people to pay off your debt.


Company: cnbc, Activity: cnbc, Date: 2018-05-15  Authors: annie nova
Keywords: news, cnbc, companies, workall, pay, volunteering, wipe, lottery, volunteer, unexpected, win, crowdfunding, money, student, trivia, debt, ways


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Stormy Daniels’ crowdfunding campaign to battle Trump raises big money

In less than two full days, former porn star Stormy Daniels raised more than $150,000 through a crowdfunding campaign to help fund her legal fight against President Donald Trump and his lawyer Michael Cohen. Daniels’ lawsuit argues that the agreement is unenforceable because it was never signed by Trump himself. Daniels and Trump were allegedly referred to by the respective pseudonyms “Peggy Peterson” and “David Dennison.” The website hosting Daniels’ fundraising campaign allows parties involved


In less than two full days, former porn star Stormy Daniels raised more than $150,000 through a crowdfunding campaign to help fund her legal fight against President Donald Trump and his lawyer Michael Cohen. Daniels’ lawsuit argues that the agreement is unenforceable because it was never signed by Trump himself. Daniels and Trump were allegedly referred to by the respective pseudonyms “Peggy Peterson” and “David Dennison.” The website hosting Daniels’ fundraising campaign allows parties involved
Stormy Daniels’ crowdfunding campaign to battle Trump raises big money Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-03-16  Authors: kevin breuninger, gabe ginsberg, getty images
Keywords: news, cnbc, companies, legal, used, cohen, big, money, daniels, speak, crowdfunding, lawsuit, battle, trump, threatened, raises, campaign, stormy


Stormy Daniels' crowdfunding campaign to battle Trump raises big money

In less than two full days, former porn star Stormy Daniels raised more than $150,000 through a crowdfunding campaign to help fund her legal fight against President Donald Trump and his lawyer Michael Cohen.

The campaign, launched on Wednesday via crowdjustice.com, will collect pledges from Daniels’ supporters for 30 days. By 10:30 a.m. ET Friday, the online fundraiser received donations from more than 5,000 people totaling $152,304.

“People are very supportive of our position,” Daniels’ attorney, Michael Avenatti, told CNBC. “She’s honored and humbled by that fact.”

The White House and lawyers for Cohen did not respond to CNBC’s requests for comment.

Daniels, whose legal name is Stephanie Clifford, said donations will be used to pay her attorneys’ fees and other costs related to the suit filed March 6.

She is seeking to void a nondisclosure pact barring her from discussing an alleged affair with Trump between summer 2006 and 2007. Daniels’ lawsuit argues that the agreement is unenforceable because it was never signed by Trump himself.

Cohen, Trump’s lawyer, said he paid Daniels $130,000 in October 2016 as part of the nondisclosure deal — a few weeks prior to Election Day. Cohen later said that he made the payment with his own money using a personal home equity credit line.

The payment was delivered through an LLC set up by Cohen shortly beforehand. Daniels and Trump were allegedly referred to by the respective pseudonyms “Peggy Peterson” and “David Dennison.” Daniels said she offered to return her 2016 payment in exchange for the ability to speak openly about the affair but did not receive a response.

Trump has denied the relationship ever took place.

At a White House briefing last week, press secretary Sarah Huckabee Sanders said that an arbitration related to the nondisclosure agreement was decided “in the president’s favor,” linking him directly to the case. A Trump Organization lawyer secured a restraining order against Daniels as part of the arbitration in an attempt to keep her from speaking publicly, The Wall Street Journal later reported.

The website hosting Daniels’ fundraising campaign allows parties involved in legal action to raise money for lawsuits and other legal proceedings. Daniels said her lawsuit is part of an attempt “to speak honestly and openly to the American people about my relationship with now President Donald Trump and the intimidation and tactics used against me.”

Avenatti, in television interviews on Friday, said his client has been physically threatened in relation to her involvement with the president. He did not specify who might have threatened her.

In a statement posted on her crowdfunding page, Daniels called the arbitration proceeding a “bogus” attempt to hide the facts. Trump and Cohen “have threatened me with millions of dollars in damages ($1M each time I speak out) if I tell the truth about what happened,” she added.

In an update to the crowdfunding page on Thursday, Daniels said the money being raised is solely being used to fund her lawsuit. “I am not going to pocket any money. The money is being controlled at all times by my attorneys in a trust account,” she said.

The campaign launched Wednesday at 11 a.m. ET, according to Avenatti. He told CNBC there is no minimum target amount for the campaign.

Pledges ranged from as little as $5 to as much as $5,000, and many were accompanied by comments encouraging Daniels to “get him” or “keep up the fight” in her lawsuit.


Company: cnbc, Activity: cnbc, Date: 2018-03-16  Authors: kevin breuninger, gabe ginsberg, getty images
Keywords: news, cnbc, companies, legal, used, cohen, big, money, daniels, speak, crowdfunding, lawsuit, battle, trump, threatened, raises, campaign, stormy


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Some crowdfunding donors could be accidentally breaking tax laws

According to a 2016 Pew Research Center report, 22 percent of American adults have contributed funds to crowdsourced fundraising project. The market for crowdfunding is expected to grow to greater than $300 billion by 2025, according to Fundly, a crowdfunding website that promotes itself as a platform to “raise money for anything.” Yet the realm of charitable crowdfunding is a legal Wild West, and rife with pitfalls for donors and recipients. If crowdfunding donations can’t be immediately withdr


According to a 2016 Pew Research Center report, 22 percent of American adults have contributed funds to crowdsourced fundraising project. The market for crowdfunding is expected to grow to greater than $300 billion by 2025, according to Fundly, a crowdfunding website that promotes itself as a platform to “raise money for anything.” Yet the realm of charitable crowdfunding is a legal Wild West, and rife with pitfalls for donors and recipients. If crowdfunding donations can’t be immediately withdr
Some crowdfunding donors could be accidentally breaking tax laws Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-11-17  Authors: elizabeth leary, pradeep gaur, mint, getty images, -daniel borochoff, founder of charitywatch
Keywords: news, games, cnbc, companies, tax, legal, immediately, laws, crowdfunding, exclusion, according, shenkman, gifttax, donors, money, withdraws, recipient, accidentally, breaking


Some crowdfunding donors could be accidentally breaking tax laws

According to a 2016 Pew Research Center report, 22 percent of American adults have contributed funds to crowdsourced fundraising project. The market for crowdfunding is expected to grow to greater than $300 billion by 2025, according to Fundly, a crowdfunding website that promotes itself as a platform to “raise money for anything.”

Yet the realm of charitable crowdfunding is a legal Wild West, and rife with pitfalls for donors and recipients.

Shenkman said the gift-tax conundrum may arise when campaigns are organized by a friend or relative of the ultimate recipient, and the recipient will not be the one who withdraws funds.

Although the gift-tax exclusion allows individuals to give up to $14,000 to a given recipient, in 2017, without filing a gift-tax return, the money must be immediately available to the recipient to qualify for this exclusion (in legal parlance, it must be a gift of “present interest”). If crowdfunding donations can’t be immediately withdrawn by the recipient, they may not pass this test, Shenkman said.

“You have this absurd result, that people who are giving small dollar amounts may actually have a gift-tax reporting requirement that they may violate,” said Shenkman.


Company: cnbc, Activity: cnbc, Date: 2017-11-17  Authors: elizabeth leary, pradeep gaur, mint, getty images, -daniel borochoff, founder of charitywatch
Keywords: news, games, cnbc, companies, tax, legal, immediately, laws, crowdfunding, exclusion, according, shenkman, gifttax, donors, money, withdraws, recipient, accidentally, breaking


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Crowdfunding your home

Crowdfunding your home14 Hours AgoIs crowdfunding a new source of cash to help the housing market, or is it a too easy and risky way for homeownership without much “skin in the game?” Rick Sharga, Ten-X EVP and John Taylor, National Community Reinvestment Coalition, discuss.


Crowdfunding your home14 Hours AgoIs crowdfunding a new source of cash to help the housing market, or is it a too easy and risky way for homeownership without much “skin in the game?” Rick Sharga, Ten-X EVP and John Taylor, National Community Reinvestment Coalition, discuss.
Crowdfunding your home Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-10-13  Authors: david a grogan, kevin lamarque, david orrell, charles orear, getty images, matt cuddy, joshua roberts, chip somodevilla, getty images news, source
Keywords: news, games, cnbc, companies, risky, tenx, taylor, sharga, crowdfunding, reinvestment, rick, skin, source, way


Crowdfunding your home

Crowdfunding your home

14 Hours Ago

Is crowdfunding a new source of cash to help the housing market, or is it a too easy and risky way for homeownership without much “skin in the game?” Rick Sharga, Ten-X EVP and John Taylor, National Community Reinvestment Coalition, discuss.


Company: cnbc, Activity: cnbc, Date: 2017-10-13  Authors: david a grogan, kevin lamarque, david orrell, charles orear, getty images, matt cuddy, joshua roberts, chip somodevilla, getty images news, source
Keywords: news, games, cnbc, companies, risky, tenx, taylor, sharga, crowdfunding, reinvestment, rick, skin, source, way


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A new way to buy a home—crowdfunding the down payment

The idea is not just to raise money for the down payment but to add to the borrower’s existing funds. This can help eliminate the need for mortgage insurance, which is required on very low down payment loans. Sellers used to be able to assist buyers with the down payment, but that was prohibited after the financial crisis. No down payment loans are also largely gone since then, except for high net worth individuals in private lender programs not backed by the government. “Would you rather have s


The idea is not just to raise money for the down payment but to add to the borrower’s existing funds. This can help eliminate the need for mortgage insurance, which is required on very low down payment loans. Sellers used to be able to assist buyers with the down payment, but that was prohibited after the financial crisis. No down payment loans are also largely gone since then, except for high net worth individuals in private lender programs not backed by the government. “Would you rather have s
A new way to buy a home—crowdfunding the down payment Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-10-05  Authors: diana olick, getty images
Keywords: news, games, cnbc, companies, loans, borrowers, spend, homecrowdfunding, way, buy, money, payment, trying, lot, think, crowdfunding, gift


A new way to buy a home—crowdfunding the down payment

Most business crowdfunding platforms offer returns on the investment, but this has none — it is simply a gift. George said the individual gifts will be small, in the $50 to $250 range. The platform can be linked to wedding and baby registries.

“You’re going to spend $250 on a coffee making machine? If that $250 goes to a down payment of your home, at the very least, I improve your quality of life and the second thing I do is I give you some, today, some tax deductibility,” George added.

As an incentive for encouraging prospective homeowners to attend credit education courses and counseling, borrowers can also receive grants of up to $2,500 once they’ve completed the free classes. After that, the platform will match donations at $2 for every $1 raised, up to $2,500.

“Folks that go to counseling tend to be more informed, and they also tend to be better borrowers,” George said. “We’ve looked at this as advertising dollars and have said, listen we think this promotes homeownership, we think it’s something that we would otherwise spend either through the internet or through social media. We’ve put our money here where we think it has its best use.”

On the other side, contributors are also assured that the money will in fact go to fund the home purchase and can make their gift conditional on that.

The idea is not just to raise money for the down payment but to add to the borrower’s existing funds. This can help eliminate the need for mortgage insurance, which is required on very low down payment loans. Fannie Mae is calling it a “pilot project,” and will be watching the results closely.

“What we’re doing today is we’re trying to test and learn a variety of solutions because the preferences for today’s homebuyers have changed significantly, and there is no silver bullet to solving a problem that’s as hard as how do you find a down payment,” said Jonathan Lawless of Fannie Mae. “What we prefer to do is source ideas from all sorts of different places. Our customers are a major one, lenders who are dealing every day with people trying to buy homes, and instead of trying to take those ideas and spend three years trying to roll out a major change, we’d rather test and learn.”

Sellers used to be able to assist buyers with the down payment, but that was prohibited after the financial crisis. No down payment loans are also largely gone since then, except for high net worth individuals in private lender programs not backed by the government.

One of the biggest criticisms of lending during the housing boom and ensuing bust was that homeowners were able to finance their properties so easily, with little to no money up front, so they had no “skin in the game.” They, therefore, found it much easier to default on the loans when home prices crashed and walk away from the homes altogether.

This program walks a fine line between gift and equity. Some borrowers will add the crowdfunded equity to their own cash while others may not, depending on how much they get.

“Skin in the game is a little bit of a confusing concept. If you pay for your closing costs, is that skin in the game? Is it really down payment?” asked Lawless. “Would you rather have somebody have a lot of money in the bank after they buy the home and no down payment or the opposite? And so we still have a lot of questions and a lot to learn when it comes to the role of down payment.”

Lawless says it is all about savings — helping the homeowner avoid becoming house poor after their purchase. He says that makes the consumer safer than someone who is unable to generate any savings. Others argue that if you can’t save enough for a down payment in the first place, then you probably shouldn’t be buying the house.

“I have qualms with anybody getting a loan who can’t put some down payment down themselves. Those types of borrowers typically are one water heater away from missing their payments, going into default, maybe losing the house to foreclosure,” said Rick Sharga, executive vice president at Ten-X, an online real estate sales and auction company.

Sharga, a noted analyst during the foreclosure crisis, said that if a borrower can’t fund the down payment alone then he or she is likely not financially ready for the investment. He was not, however, entirely against the crowdfunding platform.

“If crowdfunding is a way to augment a down payment or to make a bigger down payment than you could make yourself, because then it will keep your monthly payments down or it will help you qualify for a loan that you might not have gotten without the crowdfunding, I could see the benefits of that,” he added.


Company: cnbc, Activity: cnbc, Date: 2017-10-05  Authors: diana olick, getty images
Keywords: news, games, cnbc, companies, loans, borrowers, spend, homecrowdfunding, way, buy, money, payment, trying, lot, think, crowdfunding, gift


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One start-up wants to dramatically lower the investing hurdles for the non-rich

One start-up — New York-based crowdfunding platform Rabble — is taking advantage of that, and has built a platform enabling investors to buy into private companies for very little money. Unlike other start-ups in this space — like Fundrise or Wunder Capital — Rabble lets investors get in for as little as $100. Generally crowdfunding platforms for investors have focused around two areas: real estate, or tech start-ups offering innovative products or services. The company’s investments aim to have


One start-up — New York-based crowdfunding platform Rabble — is taking advantage of that, and has built a platform enabling investors to buy into private companies for very little money. Unlike other start-ups in this space — like Fundrise or Wunder Capital — Rabble lets investors get in for as little as $100. Generally crowdfunding platforms for investors have focused around two areas: real estate, or tech start-ups offering innovative products or services. The company’s investments aim to have
One start-up wants to dramatically lower the investing hurdles for the non-rich Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-09-19  Authors: kelsey kats, source
Keywords: news, games, cnbc, companies, projects, investing, rabble, access, dramatically, investors, nonrich, investment, social, lower, platform, crowdfunding, startup, traditional, wants, values, hurdles


One start-up wants to dramatically lower the investing hurdles for the non-rich

You no longer need a million dollars to participate in a fundraising round for a start-up — the JOBS Act of 2012 changed that.

One start-up — New York-based crowdfunding platform Rabble — is taking advantage of that, and has built a platform enabling investors to buy into private companies for very little money. Unlike other start-ups in this space — like Fundrise or Wunder Capital — Rabble lets investors get in for as little as $100.

And by tapping people who are not accredited investors — generally people with a net worth of at least $1 million — Rabble gives young companies access to potentially many more investors than they could get otherwise, enabling the funding of projects overlooked by traditional capital.

Generally crowdfunding platforms for investors have focused around two areas: real estate, or tech start-ups offering innovative products or services.

Rabble’s investment focus is positioned somewhere between those two. The company’s investments aim to have the stability of hard assets, while also chasing innovative designs or business models that fall outside traditional investment categories. It’s also focused on social or environmental-conscious initiatives that have the potential to be high return.

“[The] shopping patterns of our target demographic — late 20s to early 40s, savvy, professionals — indicate a strong preference toward locally grown food, boutique clothing and apparel, and customized ways to spend their disposal income,” said founder and CEO Umber Bawa.

“At the same time, [investors] face a contradiction with their investments that do not align with their social values. We provide a platform to reconcile this divergence by providing our customers with projects that align with their values,” he said.

Rabble — which launched in July — screens projects based on both their social purpose as well as their investment viability. According to the company, it has had more than 250 sign-ups since the launch and an average investment size of $1,000.

The company’s first project, “Back the Comeback,” is an example, which backed developer Century Partners’ revitalization of some of Detroit’s historic neighborhoods. Funds raised will be used to develop a portfolio of 63 housing units across Detroit’s North End, Boston Edison and East English Village areas.

Bawa believes Century Partners represents a new type of developer, which is partially what attracted Rabble to the company

“They believe in Detroit, they have been tremendously successful with their first private real estate fund, and they believe that opening access to investment can be a building block for wealth creation and addressing some of the most intractable issues in the society,” he said.

Equity crowdfunding and this new era of fin-tech may help in solving a major societal problem: the growing digital divide. Bawa is excited that hardworking and driven people who may not have access to Silicon Valley or Wall Street now have the ability to fundraise from the millions of people who have a shared vision for development.

“This is the beginning of a tectonic shift in what types of ventures are funded — the time has arrived,” he said.


Company: cnbc, Activity: cnbc, Date: 2017-09-19  Authors: kelsey kats, source
Keywords: news, games, cnbc, companies, projects, investing, rabble, access, dramatically, investors, nonrich, investment, social, lower, platform, crowdfunding, startup, traditional, wants, values, hurdles


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Why women join the crowd: Gender gap in bank lending, VC funds narrow

Across 450,000 seed crowdfunding campaigns recently studied by PwC and The Crowdfunding Centre, women-led campaigns reached their funding goal more often than male-led campaigns. It revealed that 70 percent of women business owners have firms employing four people or less; for men it’s 56 percent. Women business owners surveyed by CNBC and SurveyMonkey were less likely to say technology innovations would have a positive effect on their business — 36 percent vs. 45 percent of male business owners


Across 450,000 seed crowdfunding campaigns recently studied by PwC and The Crowdfunding Centre, women-led campaigns reached their funding goal more often than male-led campaigns. It revealed that 70 percent of women business owners have firms employing four people or less; for men it’s 56 percent. Women business owners surveyed by CNBC and SurveyMonkey were less likely to say technology innovations would have a positive effect on their business — 36 percent vs. 45 percent of male business owners
Why women join the crowd: Gender gap in bank lending, VC funds narrow Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-07-20  Authors: lexie carmon, special to cnbccom, sean gallup, getty images, -aoife flood, senior manager of the global diversity, inclusion program at pwc
Keywords: news, games, cnbc, companies, women, femaleled, gender, men, lending, gap, narrow, crowd, funds, maleled, campaigns, funding, bank, business, vc, crowdfunding, owners, join, technology


Why women join the crowd: Gender gap in bank lending, VC funds narrow

Women entrepreneurs have a harder time raising money than men. The gender gap extends to bank lending, and in Silicon Valley men have the power and the purse strings.

As a result, more female founders are taking funding matters into their own hands. Women founders who use seed crowdfunding platforms aren’t just reaching their funding goals, they are doing so at a rate that’s better than crowdfunded ventures started by men. Across 450,000 seed crowdfunding campaigns recently studied by PwC and The Crowdfunding Centre, women-led campaigns reached their funding goal more often than male-led campaigns.

In the United States and U.K. — the largest markets for seed crowdfunding campaigns — 20 percent of male-led campaigns met their goal compared with 24 percent and 26 percent of female-led campaigns, respectively. Across nine of the largest global crowdfunding platforms, female-led campaigns were 32 percent more successful at reaching their funding target than male-led campaigns.

Crowdfunding connects founders of new ventures with financial backers to launch or develop a new business, product or service. Seed crowdfunding increased from $10 million in 2009 to more than $767 million in 2016, with backers from over 200 countries.

Even in the technology sector, where there are nine male-led campaigns to every one female-led campaign, female-led campaigns are more successful — 13 percent to 10 percent, respectively, the study found. The two highest-funded female campaigns were in the technology and the design sectors, while the two most popular — ranked by the largest number of individual backers — were in the technology and the food sectors.

Top 3 sectors for female-led campaign success

Entertainment & media: 30 percent Retail & consumer goods: 22 percent Hospitality & leisure: 21 percent

“It’s obvious that women are discriminated against in many different areas, including funding. What I love about crowdfunding is it democratizes access to capital and, more importantly, the playing field,” said Sherwood Neiss, principal at Crowdfund Capital Advisors.

Women owners represented about 40 percent of the 2,030 small businesses surveyed in the recent CNBC/SurveyMonkey Small Business Survey. The survey of 2,030 business nationwide found that women are more likely to run the smallest firms. It revealed that 70 percent of women business owners have firms employing four people or less; for men it’s 56 percent. Only 14 percent of women-owned businesses have 10 or more employees; for men it’s 26 percent.

The success of female founders doesn’t mean they are more likely to seek out crowdfunding as a source of business capital. Research shows that men tend to use crowdfunding more often than women.

More from the CNBC/SurveyMonkey Small Business Survey:

Getting a college degree? A majority of business owners don’t have one

How to crush your business rivals on Facebook

Almost half of small businesses still lack a website

“There’s a general lack of awareness to this new form of capital raising,” Neiss said. “Women don’t know. Men don’t know. But men know it more than women.”

Women business owners surveyed by CNBC and SurveyMonkey were less likely to say technology innovations would have a positive effect on their business — 36 percent vs. 45 percent of male business owners. But female business owners are slightly more likely to use social media for customer communication and advertising.

Men also raise a lot more money than women, even if their success rate is lower. Just under 90 percent of crowdfunded campaigns raising more than $1 million were male-led campaigns.

Aoife Flood, senior manager of the global diversity and inclusion program at PwC, said the dearth of women in the traditional financing world is a difficult hurdle to overcome — men lend more to other men.


Company: cnbc, Activity: cnbc, Date: 2017-07-20  Authors: lexie carmon, special to cnbccom, sean gallup, getty images, -aoife flood, senior manager of the global diversity, inclusion program at pwc
Keywords: news, games, cnbc, companies, women, femaleled, gender, men, lending, gap, narrow, crowd, funds, maleled, campaigns, funding, bank, business, vc, crowdfunding, owners, join, technology


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