First Funder

First Funder is a partner-based crowdfunding platform for small businesses and non-profit organizations. First Funder partners with entrepreneurship programs and other community-based organizations to source campaigns. Community partners include: C-E-O, the Rocky Mountain Micro Finance Institute, Young Americans Center for Financial Education, Bradley University: Turner Center for Entrepreneurship, and Community Food Share.

History

First Funder was launched in the Fall of 2012.[1] First Funder's business model leverages partnerships with entrepreneurship programs, such as business incubators, business accelerators, and universities, as well as small business development centers and [non-profit]s, who allow their participants to run crowdfunding campaigns through First Funder.[2] Startup businesses can then connect with existing communities to help secure funds, and funders are able to track the progress of the campaigns they have invested in. First Funder receives 5% of funds raised for campaigns.[3]

Market

Currently, the SEC has not set rules in place for equity crowdfunding. As such, only accredited investors (those investors with a net worth of at least $1 million) are able to trade cash in exchange for equity in listed startups. The SEC is expected to complete and submit rules for crowdfunding by January 1, 2013 under the JOBS Act.[4] At that point, First Funder will then offer equity-based crowdfunding as well via its platform for both accredited and unaccredited investors.

Investors and advisors

First Funder is privately held. Its angel investors include angel investors John Daltner and Nancy Pierce, as well as Joseph Zell, General Partner with Grotech Ventures.[2]

References

  1. ↑ Barron's http://online.barrons.com/article/SB50001424053111904294104577631472073678432.html. Missing or empty |title= (help)
  2. 1 2 First Funder http://hupictz.tumblr.com/. Missing or empty |title= (help)
  3. ↑ First Funder FAQ
  4. ↑ Tech Rockies http://www.techrockies.com/first-funder-launches-crowdfunding-site-with-angel-backing/s-0045022.html. Missing or empty |title= (help)

External Links

First Funder homepage

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