What is a startup? Is it a group of friends united by a great idea and the passion to bring it to life? Is it the development arm of a major corporation, where skilled innovators have permission to go fast and break things? Does a start up, by definition, disrupt – changing industries, lives, perhaps the planet – with its arrival, or can a startup thrive in the world as it is right now?
In 1615, our namesake, Galileo Galilei wrote, “I discovered in the heavens many things that were not known before our own age.†With a telescope aimed skyward and the focused power of a great mind, Galileo made discoveries that transformed the way we understand the universe.
In 2016, entrepreneurs and business owners gained access to a new funding source. Under Title III – Regulation Crowdfunding of the 2012 JOBS Act it’s possible for start-ups and established businesses to raise up to $1 million from family, friends, community members and other non-accredited investors. And under Title IV, known as Regulation A+, you can achieve much higher funding levels – up to $50 M. This fundraising needs to happen via a FINRA-registered web portal, and as of this writing there are thirty-four (34) approved.
There’s a critical advantage inherent in being the first to market, for a start-up or early stage company it’s an imperative. With that in mind, many entrepreneurs rush into the process – only to find that investors and other funders have lots of unexpected questions that need to be answered before they’re willing to commit. Providing those answers often means addressing fundamental business issues, including operations and marketing strategies. While this necessary work is being done, windows of opportunity can and do close.