I recently stumbled into a post from Chelsea Rustrum on Hackernoon entitled, 7 Equity Crowdfunding Myths, Debunked. It was short and sweet but did an outstanding job of summarizing many of the points we’ve been making to both small business owners in search of capital and potential investors that want to support local businesses in North Carolina.
For the sake of this post, I’m going to repost the seven myths with a little original commentary but be sure to take a look at Chelsea’s original post for additional context.
The recently enacted NC PACES Act has created an exciting opportunity for North Carolina small business owners to raise up to $2 million in capital and a unique investment option for North Carolina residents.
This relatively new option can be a boon to entrepreneurs, if done right.
Educational institutions, nonprofits, and small businesses typically benefit from receiving a financial grant. The process for applying for a grant can be relatively simple, but many times complex. Applicants create a competitive application (full with a business plan and original idea), find a funding source (a government or private institution), ensure that all requirements are met and satisfied, then submit and hope to be accepted. Although, getting a grant accepted is extremely hard, and this leaves many people and businesses in need of an alternate funding source.
Access to capital has emerged as one of the most consistent challenges facing small business owners and entrepreneurs nationwide. The fact is the majority of small businesses trying to compete in today’s economy fall into an abyss of a funding gap – somewhere between multimillion dollar venture capital and angel options that cost a fortune and smaller amounts needs that are unserviceable through grants or fall on deaf ears at the vast majority of banks.
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