Crowdfunding is a way to raise money by asking many individuals to contribute funds, for a specific business venture or cause. The contributions can be in small amounts, say $1, or large amounts such as in the thousands of dollars.
"Rewards" Funding Example: Carmen's small business sells jelly made from fruit picked from her family's New Mexico farm. To keep her business afloat or to help it grow, Carmen can turn to the Internet to seek online donations from the public who contribute small amounts of money and expect nothing in return. Carmen sends a sample of her jelly as a thank you; large donors might even get a jelly named in their honor.
NOTE:InvestNewMexico.us is the portal that provides Reward Crowdfunding and support services for our clients.
"Equity" Funding Example: Carmen's jelly orders far outpace her production capability. She needs to hire people and move out of her house to meet demand. New legislation has directed the SEC to write rules that will change how Carman can raise money online. Once the rules are written, Carman will be able to use the Internet to raise up to $1 million each year by selling investments in her company to thousands of investors. Because Carman will be issuing shares in her company in exchange for investment capital, her supporters are no longer donors; they become investors and will expect a financial return on their investment. We have provided a short video on our home page, simply click on the green banner tab at the top half of page to watch.
NOTE:InvestNewMexico.us has partnered with WeFunder.com to provide Equity Crowdfunding, please link to the WeFunder offerings in New Mexico on the InvestNewMexico.us Home Page.