Online Capital Formation
KoreConX
We do write a lot about the democratization of capital because we believe that everyone should be able to participate and share in the benefits, whether as entrepreneurs, brand advocates, innovators, or investors (both accredited and non-accredited). What we may be missing here is that Regulation CF (RegCF) has matured over the past decade, and it is time to look at it in a more complex way.
For many individuals, the word “crowdfunding” still evokes Kickstarter as a Top of Mind idea. Entrepreneurs that need money to launch a product pitch their ideas online and people can contribute based on a variety of rewards listed on a website. But that is far from being a regulated entity.
RegCF helps companies turn investors into shareholders. Companies and product makers are not selling their stories anymore. They are selling their stock. And that is why we feel the word “crowdfunding” doesn’t encompass the whole idea behind it.
That is why we put together our KorePartners, like Sara Hanks (CEO...more
Introducing the CfPA Ecosystem's ChatGPT BOT -- Power to the People?
In the past week, the public release of OpenAI’s ChatGPT, an artificial intelligent "bot" has garnered a lot of press and attention. As with many leaps forward in technology, people are struggling to understand the impact it will have on society and in some cases, on their very own lives or livelihoods.
If you ask ChatGPT whether or not AI could have an impact on the field of investment crowdfunding, it will tell you:
"Yes, it is possible that AI could have an impact on the field of investment crowdfunding. AI can be used to process large amounts of data quickly and accurately, which could be useful for analyzing potential investment opportunities and making predictions about their success. Additionally, AI could be used to automate many of the tasks involved in managing a crowdfunding campaign, such as identifying potential investors and tracking progress toward fundraising goals. However, it is also important to consider the potential drawbacks of using AI in this contex...more
The Competitive Moat in Crowdfunding = Owning the Community
Dealmaker
If you’re trying to build something (a company, a product, a service) and not simultaneously building a community, then the future is likely dim. Customer acquisition costs have never been higher due to App Tracking Transparency (that’s a whole other post - explainer here) alongside increasing competition because it's never been easier to start a business in a world of AWS, 3PLs, Shopify, open AI models, and other software tools that are essentially a business in a box.
This is why community matters. Community by its nature is a group of like-minded individuals coming together, and this ultimately can equate to built-in distribution. And I cannot stress this enough: distribution is the best and biggest competitive moat. In some sense, distribution is all that matters; you could have the best product/service in the world, but without a distribution moat you’ll be left high and dry.
A great example of this is in the newspaper business – once upon a time the printing presses and physical ...more
