Problems with Crowdfunding

Problems with Crowdfunding

Crowdfunding occurs when people network through the internet to raise money to support other people’s ideas or interests. Crowdfunding became popular when Obama signed the JOBS Act bill in April.  Since then, sites like Fundable and Kickstarter have garnered media attention.  Not all information about crowdfunding has been positive.  The Harvard Business Review’s article The Road to Crowdfunding Hell explained some of the problems associated with the process.

The Wall Street Journal’s article Crowdfunding Efforts Draw Suspicion contains some of the latest problems.  The SEC was supposed to review the rules for crowdfunding by January 1.  They missed this deadline. In the meantime there may be some people who have taken advantage of the situatoin.  “State regulators already have taken or considered enforcement action against a handful of companies for allegedly exploiting online fundraising to commit fraud—or simply jumping the gun on the planned rules changes.”

There have been a large number of websites dedicated to crowdfunding.  Over 9000 sites include the word in their website name.  “Crowdfunding enthusiasts say the number of websites being registered reflects the pent-up demand for the financing targeted by the JOBS Act.”

The concern is that there is a lot of interest without a lot of control. “The association of securities regulators says the JOBS Act doesn’t do enough to protect investors.” Crowdfunding Insider claims Education is the Best Weapon Against Crowdfunding Posers.

The following video explains:  The JOBS Act and its impact on crowdfunding.

Related Articles:

• Crowdfunding Options from Fundable
• Top 30 Links for the Successful Entrepreneur
• Top 7 Ways for Entrepreneurs to Obtain Funding
• Improve Your Karma with Microlending
• Plays Games to Finance Education
• Funding Options from Kickstarter

Marketers Target Impatient Customers through Smartphone Quick Response QR Codes

Quick Response or QR codes are the latest bar code system that allows customers to use their smartphones to obtain discounts, gather information and even order products ahead of time so that they are ready upon their arrival.  For an instant gratification generation, these new codes can connect customers to products faster than ever before.

Companies are putting these codes in their advertisements and on their products so that customers can scan them with their smartphones and gather more information, find out about discounts or even order the product.  Although these codes aren’t that new, companies are starting to use them more due to the increased frequency of consumers using smartphones.

It’s simple to install an app on a phone. In fact some even come with the app pre-installed.  Wall Street Journal reported, “Scanby Inc., a New York company that develops and manages QR codes, estimates that 30 million people in the U.S. have a code-reader app on their phone.”

Companies like Ethical Bean are taking advantage of the code to get their coffee products into their customers’ hands more quickly.  Customers simply need to order their coffee through the use of these apps and it will be ready when they arrive to pick it up.

These apps can also give more information about the products being purchased.  Customers can find out recipes, ingredients and more.  The Wall Street Journal had some statistics about the use of these codes:

• 32% of consumers in a recent survey said they’ve used a QR code
• 70% plan to use QR code again or for the first time
• 53% are motivated to use it by getting a coupon, discount or deal
• 52% are motivated to use it by getting more information

Related articles

• Target: Customers on the Go (online.wsj.com)
• QR Code:  Why You Should Be Using it to Promote Your Business

The Human Brain: Gender Differences in Intelligence and Maturity

Rueven Bar-On, a leading expert in emotional intelligence, reported that “no differences appeared between males and females regarding overall emotional and social competence.”  That is not to say that both sexes were identical.  “Females appear to have stronger interpersonal skills than males, but the later have a higher intrapersonal capacity, are better at stress management, and are more adaptable.”

Scientists have now looked at the brains of both sexes at the age of 10, 16 and 20 to see if there truly are differences in maturity levels between the two.  WJSOnline reported “Although boys’ and girls’ brains show differences around age 10, during puberty key parts of their brains become more similar.”  By measuring the brain’s cortex and how it may change as boys and girls age, the National Institute of Mental Health Child’s Psychiatric Branch studied 284 people and found “boys’ and girls’ brains, on average, differ significantly at age 9, but by the time the participants reached 22, the brains of the two sexes grew more alike in many areas critical for learning.”

Some interesting differences in Gender Development noted in the article included:

Gender Development

Some typical milestones and when boys and girls tend to hit them:

At birth: Girls are a few weeks more mature neurologically and have more advanced hearing. Boys on average weigh half a pound more.

First words: Girls typically utter their first word at 11 or 12 months, one month ahead of boys.

Vocabulary: At 18 months, girls on average know 86.8 words, more than double boys’ 41.8 words. By 30 months, boys’ and girls’ language skills have converged, at about 500 words.

Walking: Caucasian girls and boys tend to walk around 12 months. African-Americans walk sooner, at nine to 10 months.

Potty training: Girls are fully trained by 36 months, according to one study. Boys took a bit longer, training by 38 months.

Onset of puberty: For girls, the process can start at age 9 to 10. For boys, it’s closer to 11 to 12.

Source: WSJ research

Related Articles

• As Little Girls and Boys Grow, They Think Alike (online.wsj.com)
• Are Humans Getting Dumber as Our Brains are Shrinking? (drdianehamilton.wordpress.com)

Top 50 Venture-Funded Companies for 2011

The Wall Street Journal had a couple of very interesting articles about start-up companies and their ability to obtain funding.  The following list of top 50 venture-funded companies for 2011 came from one of those articles.  Of particular interest to me was the ease that some young entrepreneurs are finding in terms of ways to obtain capital, should their startups be technology-based.  Everyone is looking to get in on the next Facebook or Google.  Entrepreneur Aaron Levie, 26, was able to raise $48 million in less than 3 weeks for Box.net, his online storage company.  Check out what WSJ.com claims are the top 50 start ups for 2011 below:

Source:Dow Jones VentureSource

Related Articles

• The Top 50 Venture-Backed Companies (online.wsj.com)
• The Next Big Thing: Which VC Firms Hold Top Bragging Rights? (blogs.wsj.com)
• Founders Gain Clout in Venture World (online.wsj.com)