It’s not uncommon for farmers, ranchers, and landowners to fall victim to a foreclosure from the bank. In fact, there was a 40% decline in net farm and ranch income in 2015. So what other options can you visit before giving a bank control of your land? Trading some of your land equity for cash from an investor may be the best decision you make.
Read more4 Ways to Make Your Project More Attractive to Investors
When considering raising capital with crowdfunding for a farm or ranch operation, it’s important to think about your project’s appeal to investors. Do you have the returns and components that will make investors want to put money into your livelihood? While putting together a business plan and financial projections, reflect on these four ways to make your project more attractive to investors.
Read moreHow Equity Crowdfunding is Changing Emerging Markets
Crowdfunding has grown significantly in the last few years, especially in the United States and Europe. The equity crowdfunding market is valued around $1.7 billion annually with total value of deals invested per year to growth to reach $5 billion by 2022. Much of this growth can be attributed to developing countries adopting equity crowdfunding for their new businesses. Currently, developing countries, such as Africa and South America, have the highest percentage of individuals starting their own businesses with Nigeria having as high as 40% of total businesses. The problem for these startups is the lack of access to traditional banking. In turn, these startups have to get creative, which is why most will turn to equity crowdfunding as a way to raise capital. The World Bank has estimated that there is chance to reach up 334 million people in emerging economies through crowdfunding.
Read moreDebt-Based Crowdfunding 101
Generally, crowdfunding capital raise is structured as either equity or debt. Equity is issued as stock, representing a form of ownership in a company with no defined maturity date. On the other hand, debt capital is raised in the form of a loan or promissory note to be paid back at some point in the future, usually with a fixed interest rate. Debt offerings on equity crowdfunding platforms tend to be open for a shorter duration. Let's discuss the basics of debt-based crowdfunding and why investors should consider using debt instruments to better position their portfolio against market volatility.
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