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Madison residents use different crowdfunding methods to fund big ventures

posted Dec 6, 2014, 2:41 PM by J Shaw   [ updated Dec 6, 2014, 2:42 PM ]
MADISON (WKOW) -- It seems as though you can do just about anything on the Internet nowadays, even funding your own dreams with the help of strangers.  

Enter crowdfunding.  However, there are different methods, namely investment based and donation based.  Both are popular for different reasons and being used in the Madison area.  

Investment, or equity-based, crowdfunding just became law in Wisconsin in June 2014.  According to the law, businesses who decide to

http://www.crowdfundmadeeasy.com
use this model can only have investors from Wisconsin, and they typically have to meet some income requirement or have a minimum investment.  With the help of Monona State Bank, MobCraft became the first business in the state of Wisconsin to use this business model.  They had started their microbrew brand using crowdsourcing, letting their customers weigh in online about which beers they should brew.  "[Crowdfunding] was just another step in that process of really getting people behind our brand with a little more skin in the game," says Giotto Troia, of MobCraft.  

Meanwhile, donation-based crowdfunding is a method where almost anyone can participate on the donor or receiver side.  This model can be seen as a more passive way of fundraising.  Drew Hoernke, a dental hygienist student at Madison College, is using this method to help raise money for her service trip to Belize.  "[Crowdfunding has] made it possible. Being full time students, it's hard to work a job and keep the balance and keep income coming in," says Hoernke.  

Though faced with different ramifications, the founders of MobCraft and Drew Hoernke both agree that crowdfunding has helped them make their goals conceivable and would like to thank those who have already invested or donated. 

Posted from : http://www.wkow.com/story/27555004/2014/12/05/madison-residents-use-different-crowdfunding-methods-to-fund-big-ventures