Raising the Bar on Financing With Crowdfunding

Online, April 19, 2011 (Newswire.com) - Small businesses, entrepreneurs and startups need not worry that the reluctance of Big Banks to lend to their smaller brethren spells doom for the future of financing. Douglas Castle, Chairman and CEO of TNNWC Group, LLC, calls on small businesses of America to turn away from traditional financing and turn toward one very viable alternative: crowdfunding.

"Crowdfunding derives its strength from the very essence of entrepreneurship: Raising capital from others who share your vision," Castle explains. "Crowdfunding captures the passion and the fire of realizing a vision in which everyone can participate."

The concept of crowdfunding has gained in popularity and interest in recent years as everyone from non-profits and music groups to politicians and artists look for alternative means of financing for their endeavors. TIME Magazine describes it as "one part social networking and one part capital accumulation."

For Castle, the simplicity and the power behind crowdfunding is its appeal to like-minded individuals and organizations. "Most participating investors in crowdfunding efforts are non-wealthy, non-institutional individuals who simply believe in the management, objectives or intentions of the offering entity," Castle says. "Many of them are, in fact, entrepreneurial individuals who would like to participate in other entrepreneurial companies for either altruistic reasons, or to obtain a direct return on investment from a private company, assuming that the company is successful."

Castle adds that crowdfunding's essence makes it a perfect fit for the capital needs of many startups - small businesses that create much of the fuel for the economic engine so vitally needed in America today. "The mechanism is incredibly simple," Castle says. "An entrepreneur, executive or spokesperson of an emerging enterprise or growing business makes an offer (generally in the form of a brief request or polite solicitation followed by some additional information to those parties who indicate that they may be interested in participating) to the public through postings on various social media groups, opt-in subscriber lists, business networks, blogs, websites and other internet-based communications forums to raise money for some specified purpose."

Castle offers an important caveat, however. "If the purpose is to raise funds specifically for investment in the issuing entity, and if the investor is not involved in the management or affairs of the company, one potential complication might be the need for compliance with federal regulations and state laws governing offerings of securities. If you are, in fact, making an offering of securities, you must make the necessary regulatory and state ("Blue Sky") filings."

"However a crowdfunding system is created, it is born in almost exactly the same spirit and vision with which we launched TNNWC," he states. "At TNNWC, we offer members such funding opportunities as specialized finance and venture capital, options not found in traditional banking venues."

Castle and Adam J. Kovitz, Co-Chairman and Founder of TNNWC, LLC, established their organization with a goal of a global organization based on mutually beneficial relationships and symbiotic partnerships. As services offered by other businesses are identified for TNNWC members, they are added by way of strategic partnerships.

Membership in TNNWC is free.

About TNNWC Group, LLC: TNNWC Group, LLC is a comprehensive media and services provider conglomerate which addresses the needs of entrepreneurial businesses, emerging enterprises, and growing companies. Services provided include venture capital, building customer traffic and loyalty, and assisting companies with cultivating international connections and customers.

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Repeat Contact Information:
Contact Person: Kent Martin
Company Name: TNNWC Group, LLC
Telephone Number: 888.317.6495 Ext.703
Fax Number: 914.517.5944 Email Address: [email protected]
Web site address: http://www.tnnwc.com