Discy Latest Questions

  1. Following are some of the distinguishing points between angel investors and venture capitalists: 1. An angel investor works alone but venture capitals are part of a venture capital firm. 2. Angel investors invest typically between $25,000 to $1,00,000 of their own money whereas venture capitalists iRead more

    Following are some of the distinguishing points between angel investors and venture capitalists:
    1. An angel investor works alone but venture capitals are part of a venture capital firm.
    2. Angel investors invest typically between $25,000 to $1,00,000 of their own money whereas venture capitalists invest $7 million on an average.
    3. Angel investors primarily provide financial support whereas venture capitalists provide guidance for your business/ startup idea along with financial support.
    4. Angel investors invest in early stage in a company. Venture capitalists invest in an early stage company or developed company depending on what the focus of their firm is.
    5. Angel investors don’t do a lot of due diligence given the money that they are investing is their own whereas venture capitalists have to mandatorily do due diligence as they are investing someone else money in the business idea.

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  1. Yes, you do need to pay taxes on crowdfunding. Its just like how it works for any other income, since its a part of your income you do need to pay taxes for it. There are also a certain rules regarding it, if you are using the accrual basis, you must report income when you earn it, at the time it isRead more

    Yes, you do need to pay taxes on crowdfunding. Its just like how it works for any other income, since its a part of your income you do need to pay taxes for it. There are also a certain rules regarding it, if you are using the accrual basis, you must report income when you earn it, at the time it is due to you or when you receive it, whichever comes first. Also, using the accrual method does not allow you to postpone the recognition of income you have received.
    Lastly I don’t think this income should be argued to be a gift , and if you still wanna argue on it then it should be a convincing case.

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  1. Hey Rayon, as the rule says that what goes around comes around so obviously you get a few monetary and non monetary benefits of being a crowdfunder. These benefits depend upon what kind of crowdfunding you are investing in. If its investment-based crowdfunding then you normally invest in a businessRead more

    Hey Rayon, as the rule says that what goes around comes around so obviously you get a few monetary and non monetary benefits of being a crowdfunder. These benefits depend upon what kind of crowdfunding you are investing in.
    If its investment-based crowdfunding then you normally invest in a business and receive a stake in return (normally shares).
    If its a Loan-based crowdfunding then you lend money to individuals or companies in return for a set interest rate.
    If its a donation-based crowdfunding then you donate to a person or a charity.
    And lastly if its a reward-based crowdfunding then you give money in return for a reward linked to the project or cause you’re supporting.

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  1. As crowdfunding is becoming popular currently for raising money in businesses. Here are few websites which gives some promising results: Best Overall site is Kickstarter and next Indiegogo, while the best for non profit crowdfunding is causes. There are a few more which you can check out for instancRead more

    As crowdfunding is becoming popular currently for raising money in businesses. Here are few websites which gives some promising results:
    Best Overall site is Kickstarter and next Indiegogo, while the best for non profit crowdfunding is causes. There are a few more which you can check out for instance if you are a creator then go to Patreon.
    If you are doing personal fundraising then go to GoFundMe.
    You can also check out CircleUp and LendingClub.

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  1. Yes Aakash, it does really work. Now the question is, does it always work? well a no for that. Crowdfunding is becoming a popular way to raise money and more than a billion dollar has already been raised through it. Not every crowdfunding is successful but the good news: Many are! Here’s some statisRead more

    Yes Aakash, it does really work. Now the question is, does it always work? well a no for that.
    Crowdfunding is becoming a popular way to raise money and more than a billion dollar has already been raised through it.
    Not every crowdfunding is successful but the good news: Many are! Here’s some statistics to show that how much crowdfunding really works.
    The average success rate of a crowdfunding campaign is 50%.
    78% of crowdfunding campaigns exceed their goal.
    You can also check out more info on this link-
    https://www.startups.com/library/expert-advice/key-crowdfunding-statistics

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  1. Some of the disadvantages of crowdfunding are as listed below: 1. The crowdfunding websites where you run your campaign allow you to utilize the capital only if your target capital is achieved. If your target capital is not reached even by a penny you won't get the capital. 2. Failure of a campaignRead more

    Some of the disadvantages of crowdfunding are as listed below:
    1. The crowdfunding websites where you run your campaign allow you to utilize the capital only if your target capital is achieved. If your target capital is not reached even by a penny you won’t get the capital.
    2. Failure of a campaign can affect your image negatively
    3. Crowdfunding cannot be opted to raise large investments.
    4. Crowdfunding is less appealing for Business to Business products.

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  1. Crowdfunding can be categorized into 4 types. They are Donation crowdfunding, Reward crowdfunding (non-equity based crowdfunding), Debt crowdfunding and investment based crowdfunding (Equity crowdfunding). 1. Donation crowdfunding: In this type of crowdfunding, people donate for social cause or a spRead more

    Crowdfunding can be categorized into 4 types. They are Donation crowdfunding, Reward crowdfunding (non-equity based crowdfunding), Debt crowdfunding and investment based crowdfunding (Equity crowdfunding).
    1. Donation crowdfunding: In this type of crowdfunding, people donate for social cause or a specific cause without expectations of getting anything in return.
    2. Reward crowdfunding: Rewards such as coupons, t-shirts, movie tickets are given to investors in return for the money invested by them.
    3. Debt crowdfunding: Here inestors expect the business to return money with interest. It is just like borrowing money from bank.
    4. Investment based crowdfunding: Investors invest money in return for stakes/ shares in business.

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  1. Hi Prashanth Crowdfunding is a way of raising money. It is an approach used to raise small amounts of money from large number of people to finance a project, cause or business. It is generally done via the internet. To raise money using this approach, you can use websites and social networking sitesRead more

    Hi Prashanth
    Crowdfunding is a way of raising money. It is an approach used to raise small amounts of money from large number of people to finance a project, cause or business. It is generally done via the internet.
    To raise money using this approach, you can use websites and social networking sites to attract investors by presenting them with a pitch on the platform.
    The investors can then decide if they want to invest in your project, cause or business or not.
    For in depth understanding of crowdfunding, you can read article on this link: https://www.feedough.com/what-is-crowdfunding-definition-websites-types-benefits/

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