Crowdfunding Industry Group Launches Expert Community
The Crowdfunding Professional Association is working to take advantage of new federal rules allowing individuals to participate in equity funding of new ventures. Its new expert community is targeted at those looking to launch a campaign.
It’s hard to get a crowdfunding effort off the ground, but the key to success might be to have some smart people in your corner to help guide the campaign.
The Crowdfunding Professional Association (CfPA) is bringing together a whole bunch of those people with its Crowdfunding Expert Community Online, which it launched this week during its fourth annual Crowdfinance Summit, held Thursday in Washington, DC.
The association worked on the concept with the startup Brainsy, which helps put together knowledge-sharing networks. CfPA is promoting the community as a member benefit, with the goal of connecting crowdfunding professionals with entrepreneurs, investors, and others interested in the industry. Members will be able to locate and interact with experts in a variety of subjects, from community development to impact investing to blockchain technology.
“Streamlined, amalgamated, dynamic content is a key feature of great benefit to not only our membership, but equally useful to publishers, researchers, and analysts always looking for a comprehensive knowledge base,” CfPA President Scott McIntyre noted in a news release. “The ability to provide profile showcases and revenue opportunities for our qualified members is just icing on the cake.”
CfPA launched in 2012 after the Jumpstart Our Business Startups Act made it possible for individuals to make crowdfund investments in return for equity shares of the ventures they invest in. It worked with federal agencies as they developed regulations under law (which the Securities and Exchange Commission finalized in May) and is working to provide the industry “with education, professional networking opportunities, and the tools necessary to cultivate a balanced and healthy ecosystem that will accelerate capital formation and ensure investor protection,” the group states on its website.
As The New York Times reports, companies can raise as much as $1 million through equity crowdfunding each year—a fundamental shift in the way investing works.
CfPA says companies raised $34 billion through crowdfunding between 2015 and 2016. And since the rules took effect, 26 funding portals have been launched in the U.S.