As Startups.com and Fundable founder Wil Schroter likes to says, “There’s not a lot of ‘fun’ in funding.”

Raising equity funding for your startup is a long, difficult, and often demoralizing process. However, if you’re successful, you walk away with money that will help your startup grow and become everything you hope it could become.

But despite these challenges, thousands of startups raise funding every year, implying that the potential rewards outweigh the guaranteed strife and risk. Here’s an outline of what a startup founder can expect at each startup funding stage.

Pre-Seed Funding

Pre-seed funding is the earliest startup funding stage, so early that many people don’t include it in the cycle of equity funding.

At this stage, founders...

Crowdfunding is not only a popular strategy for getting a product or startup off the ground, but also an increasingly viable one.

New legislation lets startups raise capital from the general public. Companies can now receive up to $1 million from non-accredited investors, prompting many businesses to enter the arena and, ultimately, attract more issuers.

What’s more, equity crowdfunding companies like Fundable make the process really easy for companies to raise money on their platforms, which has led to a big expansion in the space.

If you want to reach and inspire the crowdfunding community, video is a great medium. In fact, campaigns that utilize video crowdfunding pitches garner four times more funding than those that don’t.

While the in...

Congress passed the Jumpstart Our Business Startups (JOBS) Act way back in April of 2012 — and the startup world rejoiced. Finally, we’d be able to raise money through non-accredited investors, just like all of our friends were doing to pay for their EPs and trips to South America and medical procedures! Crowdfunding — which the startup world invented — was finally a legal option for startups.

So what’s so great about the American JOBS Act, anyway? The ability to raise equity crowdfunding without having to make a public offering is probably the most significant change that the JOBS Act made, of course. Any startup founder can tell you that raising money from friends and family — or, if you have the right type of product, running a crowdfund...

Just like there are many different kinds of capital round raises for businesses in all stages of growth, there are a variety of crowdfunding types. Which crowdfunding method an entrepreneur selects depends on the type of product or service they offer and their goals for growth.

The three primary types of crowdfunding are donation-based, rewards-based, and equity crowdfunding. This guide looks primarily at rewards-based and equity crowdfunding.

1. Donation-Based Crowdfunding

Broadly speaking, it’s correct to think of any crowdfunding campaign in which there is no financial return to the investors or contributors as donation-based crowdfunding.

Common donation-based crowdfunding initiatives include fundraising for disaster relief, charities...

Crowdfunding is a method of raising capital through the collective effort of friends, family, customers, and individual investors. This approach taps into the collective efforts of a large pool of individuals — primarily online via social media and crowdfunding platforms — and leverages their networks for greater reach and exposure.

Crowdfunding is a rapidly growing industry. Below, we explore key statistics including the average raise sizes, the impact marketing has on average raise, and the underlying demographics driving crowdfunding.

KEY CROWDFUNDING STATISTICS

Crowdfunding has Raised A LOT of Money

What may have seemed like a niche way to raise money at first is now a major force in fundraising. Worldwide, companies and individuals ha...

On a first foray into crowdfunding, a founder might find that things are more complicated than they thought at first. What are the best practices? What type of crowdfunding should they do? Which of the many, many sites should they go with? It becomes clear very quickly that while they might be experts in their fields, they’re certainly not crowdfunding experts.

There are plenty of perspectives out there on what to do and what not to do; plenty of crowdfunding experts who are offering their advice to new entrepreneurs. (If we’re being honest, there are probably too many.)

The same issue comes up: How do you know who to trust?

So a good plan when tackling a crowdfunding campaign is to ask the experts. From other entrepreneurs who have been t...

When it comes to types of startup funding, there are a lot of options to consider.

Startups in the early stages need to raise startup capital or funding to survive past the business idea (at minimum) but looking into all the types of funding can be overwhelming to a budding entrepreneur. If you've never heard about pre-seed funding, equity stake, or venture capital funds, we are going to dive into how to raise funds for startups, and the difference between all the funding sources out there.

So, what do all the types of startup funding mean? What are angel investors? How does series funding work? What does equity funding entail? What's the best way to land an investment from a venture capital firm? Is self-funding and crowdfunding actually leg...

Crowdfunding has become an increasingly popular way for individuals and businesses alike to raise much-needed capital. The relatively low cost of entry and accessibility of popular crowdfunding platforms have fueled this revolution in funding.

But while it might look easy — and seem like a no-brainer — to launch a crowdfunding campaign, there are strong pros and cons to consider.

Founders considering launching a crowdfunding campaign might wonder:

1. Is it worth it?
2. How hard will it really be?
3. What are the true pros and cons of crowdfunding?

To answer those questions (and a few more that people might not have even thought of), we reached out to our network of crowdfunding experts.

Our list includes founders of crowdfunding platforms, serial...

Crowdfunding may seem like a new idea, but it actually has a long and rich history with roots going back to the 1700’s.

However, modern day crowdfunding — where people and businesses raise small amounts of money from a large group of people, usually online — has its origins in 1997.

In this infographic, we look at some of the historical movements that led to the development of crowdfunding as we know it, as well as major events over the past two decades that have shaped modern day crowdfunding.

Infographic text transcript:

1700’s: The Irish Loan Fund

The Irish Loan Fund was established by author and Irish nationalist Jonathon Swift in the early 1700’s as a way to provide loans to poor but creditworthy people in Dublin.

The Fund was succes...

A lot of people confuse crowdfunding with crowdsourcing. While they are similar in that they both allow people to primarily leverage mass-community collaboration, they relate to two different things entirely.

So, what’s the key difference?

The short answer:

Crowdfunding is the process of sourcing money or funds from a group or groups of people.

Crowdsourcing is the process of sourcing information or skills or end products from a group or groups of people.

The long answer:

What is crowdfunding?

In a crowdfunding campaign, a person, business, or organization raises a relatively small amount of money from a large group of people. Crowdfunding is a method of raising capital through the collective effort of friends, family, customers, and indiv...