Ever since the first non music related project went on the Kickstarter platform, crowdfunding has grown to new heights. After the JOBS act was passed last year, it became a blistering inferno of new startups, companies and websites. If you were looking for a good crowdfunding solution on Google you would come up with over 9 million results. Now there are new startups out there like StandOffer, and Athens Ohio startup 530Funds which are helping to make the crowdfunding space, easier to navigate.
530Funds opened up their beta on November 12th and are continually iterating to make the site exactly what the crowd needs, offering good information about available crowdfunding options. One of the main obstacles they have to overcome in building a platform like this is that every time they release another version, 10 more crowdfunding sites have popped up.
Also, at the present time, crowdfunding for equity is still not legal. Although the legislation is passed we are still waiting for the SEC to develop the regulations around crowdfunding for equity up to $1 million dollars. We interviewed a startup last Friday, from Richmond, called LendingClouds, that has sidestepped the SEC by offering royalties instead of equity.
We spoke with Richard Rodman, the founder of 530Funds. Check out the interview below.