Anyone who is new to Solar crowdfunding. Whether you’re a business owner needing to raise money, or an investor seeking new opportunities, here you’ll find an overview of Solar crowdfunding to help you make an educated choice.
Nirvana Foundation organizes equity crowdfnding platform for entrepreneurs and everyday investors. Bringing investors and entrepreneurs together, Nirvana simplifies the investment marketplace. It removes traditional barriers to investing and sourcing capital. Launched in 2015, equities is leading the way for crowd funding in India
Our mission is to increase the accessibility of capital to private Indian companies to help them succeed.
Enable Indian companies to raise capital in an intuitive, simple and social way.
Give people the opportunity to invest in Indian companies
Nirvana Crowd Funding is a two-way process. It allows companies to raise capital from a large pool of investors, and enables investors to acquire company shares that were previously inaccessible to the general public.
We utilize an all-or-nothing funding model, whereby the company only receives capital upon reaching their funding goal.
If the goal is not reached, capital is returned to investors.
Entrepreneurs profile their plans and set a funding target.
Investors commit money to their preferred opportunities.
If funding targets are reached, the capital is transferred to the issuers. WHAT IS CROWD FUNDING?
Crowd funding is a phenomenon that employs a concept known as ‘ the wisdom of the crowd’, whereby the general population is consulted to validate an idea. In the case of crowd funding, their validation is evidenced by a willingness to contribute funding. With a large number of people contributing, the amount of collective capital as significant. This makes crowdfunding ideal for attracting funding for ideas and projects that people feel strongly about.
Crowdfunding differs from the traditional approach to business finance. It offers a simple and comprehensive platform for entrepreneurs to pitch their business to interested investors without the extensive costs and limitations of traditional debt and equity financing.
THE GROWTH OF CROWDFUNDING
2011 ————- 1.5 Billion Dollars.
2012 —————- 2.7 Billion Dollars.
2013 —————- 5 Billion Dollars.
TYPES OF CROWDFUNDING
DONATION : people donate money to help fund a charitable or community focused project.
REWARD : people pledge money to a company in return for a reward (for example the first run of company’s new product or service). There are no financial or equity returns.
DEBT (Peer-to-peer lending): People lend money to people or business, and the loan is repaid with interest.
EQUITY: Companies raise money by issuing equity, letting the crowd become shareholders. Companies essentially sell shares for money to grow their business. EQUITISE IS AN EQUITY CROWDFUNDING PLATFORM HISTORY OF CROWDFUNDING
1700 Century – Jonathan Swift “the father of microcredit” funds the Irish Loan Fund
1800 Century – More than 300 programs in Irland lend small sums to individuals for short periods
1976 – Dr. Muhammad Yunus pioneers modern micro financing
1997 – British rock group “Marillion” raises $60,000 through online donations to fund their US reunion.
2001 – “Artist Share” becomes the first documented crowdfunding platform for music
2005 “Kiva” becomes the first micro lending, peer-to-peer.
2008 – “ Indiegogo” launches to enable people to donate funds.
2009 – Kickstarter” emerges as a new way to fund creativity through crowdfunding.
2014 – Equities – Capital from the crowd! Entrepreneurs with a great company, whether it’s an early stage business or an established company needing capital to grow. BENEFITS OF EQUITY CROWFUNDING
The online crowfunding process is simple and transparent. Businesses can present campaign in a centralized and efficient manner, without needing to create multiple documents or pitch separately to different investors.
Investors are able to view multiple campaigns and manage their investments using a single platform.
Crowfunding platforms allow a more flexible approach to finance, unlike traditional fundraising methods of debt and equity financing. Entrepreneurs can obtain funding without burdensome costs and regulatory controls.
Investors are able to purchase shares of previously inaccessible private companies.
SOCIAL PROOF AND VALIDATION
By presenting business ideas to the mass market, entrepreneurs can validate their concept through the wisdom of the crowd. Successful ideas will attract more investors, giving companies the opportunity to refine and reflect on their concept, and giving investors the chance to identify the most promising projects.