Small Businesses Look to Crowdfunding to Fill Funding Gaps

Crowdfunding sites have started to be a big influx in interest from small businesses looking to raise capital; the Paycheck Protection Program is helping thousands of companies but many are still being left out; “It’s created an immense amount of business inbound,” said Nick Matthews, who was Uber’s senior manager in Boston before Co-Founding MainVest in March 2018, to American Banker. “Our biggest challenge is handling an acute increase in volume.”; depending on the crowdfunding platform companies are given an option of raising equity or debt capital; platforms have also been able to keep their investor base as they believe investors are looking to alternative assets; “The public is recognizing how crucial these businesses are to their everyday lives,” Matthews said. “That, combined with some of the crazy volatility in the public markets, means the idea of diversification into this asset class … has definitely become more attractive.” American Banker

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