Cortburg Speaks Retirement

CROWDFUNDING - Capital for the 21st Century

April 21, 2021 Miguel Gonzalez, MBA, AIF®, CPFA®, CRC® Season 2021 Episode 30
Cortburg Speaks Retirement
CROWDFUNDING - Capital for the 21st Century
Show Notes Transcript

In this week’s episode, Miguel Gonzalez shares how crowdfunding continues to gain momentum as more people search the Internet for financing and fundraising alternatives

INTRODUCTION

Welcome to Cortburg Speaks Retirement

An audio podcast about investing in the stock market, financial planning, money management and retirement planning.  Each Wednesday, we help investors at all stages of life learn how to potentially grow and preserve their money from first job through retirement.

Now here is your host, Miguel Gonzalez.

 

HOST

Good morning and welcome to the CORTBURG SPEAKS RETIREMENT audio podcast.   

In this week’s episode, I share how crowdfunding continues to gain momentum as more people search the Internet for financing and fundraising alternatives

One of the earliest examples of crowdfunding occurred in 1884 when funds ran short for building the Statue of Liberty’s pedestal. The publisher Joseph Pulitzer used his newspaper to appeal to Americans to donate the money needed to complete the pedestal’s construction. Over $100,000 in six months was raised from more than 125,000 people.¹

But it took the Internet to truly put the wind in the sails of this unique form of fundraising. According to the World Bank, crowdfunding in developing countries alone will reach nearly $100 billion by 2025.²

Crowdfunding Roots

Up until now, the primary use of crowdfunding has been to find donors to support the personal endeavors of artists, inventors and filmmakers. In return, donors may receive a perk, recognition, or a product as a form of gratitude. These tokens of appreciation are often tiered to be more attractive the larger a donor’s gift.³

Crowdfunding has not been generally viewed as an investment and thus has escaped regulatory oversight or supervision.

Crowdfunding Grows Up

Until recently, crowdfunding to solicit investments from the general public was not allowed. However, with the passage of the JOBS Act of 2012 and recent rulemaking by the Securities and Exchange Commission, the table is now set for raising equity and debt capital for businesses, heralding a new era in capital markets allocation.⁴

Crowdfunding sites are springing up like mushrooms following a heavy rain. Not only are they multiplying in number, but they are also beginning to specialize.

Crowdfunding continues to gain momentum as more people search the Internet for new financing choices and fundraising alternatives. It’s strongly recommended that you take the time to research and investigate crowdfunding sources before making any commitment.

Make sure to visit our website, www.CortburgRetirement.com. Our site is filled with educational videos, eBooks, publications, and financial calculators designed to help you learn more about your finances.  As you search our site, send us a note regarding any questions you may have about any particular investment concepts or products. We will get back to you quickly with a thoughtful answer.

This is Miguel Gonzalez, Retirement Specialist and Managing Partner, with Cortburg Retirement Advisors signing off for this week’s educational podcast.  

 

DISCLOSURES  

Opinions expressed are subject to change without notice and are not intended as investment advice or a solicitation for the purchase or sale of any security. Please consult your financial professional before making any investment decision. 

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

CRC conferred by The International Foundation for Retirement Education.

Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through Private Advisor Group, LLC, a registered investment advisor.  

Private Advisor Group, LLC and Cortburg Retirement Advisors, Inc. are separate entities from LPL Financial.

Investing involves risk including possible loss of principal.

1.       National Park Service: Statue of Liberty, 2017

2.       Forbes, March 15, 2016

3.       The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation.

4.       SEC.gov, March 10, 2017

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2021 FMG Suite.