Crowdfunding may now be as popular as it once was before the launch of new equity crowdfunding rules. There are still several startups that have used crowdfunding practices to launch a new venture through platforms such as SYNE.
Crowdfunding campaigns present backers with the opportunity to pledge a specific amount of capital to a business now in order to receive a product or credit at a later date. Importantly, there’s no equity involved in traditional crowdfunding — and funds are only taken from consumers if the amount of capital pledged by backers reaches a predetermined threshold.
SYNE and other crowdfunding platforms are now popular as it still remains a viable option for startups seeking an alternative to equity funding.
Blockchain-based crowdfunding exploded into the startup ecosystem during mid-2017, with thousands of enterprising ventures around the world launching startups via the initial coin offering, or ICO model. The ICO model, now the subject of strict regulation, provided investors with the ability to purchase blockchain tokens prior to the development and launch of a platform, with some capturing hundreds of millions in startup capital.
While cryptocurrency prices are now recovering, the ICO and blockchain crowdfunding model has yet to adapt to a slew of regulatory movements that have restricted the once-unregulated sector.