Tens and thousands of workers around the world have been told to work from home as governments take action to prevent the spread of COVID-19, aka Coronavirus. This means most office-based employees are now remote working for the foreseeable future. It is up to the organizations and companies to ensure that their employees feel supported during this unprecedented situation.Remote working has now taken over approximately all employees by enabling them with the technology and flexibility to do their best work from home. As quoted by the Head of Digital Transformation for Public Health England, <a href="https://uk.linkedin.com/in/harveyneve">Mr. Harvey Neve</a>, ?Remote working is an opportunity for people to embrace the way life is nowadays. There isn?t just work and life; there is life, and the outcomes you?re on the hook for at work are part of your life as well.?However, if you are planning to prepare your business for remote working effectively, a lifetime of sharing memes isn?t enough to qualify your employees are ready to embrace the change. Let us now discuss how to prepare your business for remote working effectively.Changes in the Workplace Due to CoronavirusEach day we all learn ways to adapt to the work from home culture, as we are practicing social distance and self-isolation in response to the COVID-19 pandemic. Here in the US, while most of us are speculating on the length of this shutdown and when we return to everyday work lives, the reality is that the virus has changed how we work by forcing us to adapt to working from home.This pandemic has shown more employees working from home by relying on chats, emails, videoconferencing, and phone calls to communicate with colleagues quickly, instead of meeting face-to-face physically at the workplace. Being online all the time has changed the typical workday of eight-hours with employees setting up clear boundaries, apportioning their leisure time, family time, and sleeping hours. Otherwise, they risk a tiring day and spending reduced quality of life.<img src="https://iaxds62ruoojbg1k4180.cleaver.rocks/images/posts/743855e37ad4763794eeeeb4e8671e95.jpg" alt="">Changes at Workplace Due to Coronavirus<a href="https://en.wikipedia.org/wiki/Kevin_Roose">Kevin Roose</a>, a work-from-home evangelist, told everyone within earshot about the benefits of avoiding the office- no commute, no futile meetings every day, and no distracting co-workers. While researching the pros and cons of remote work for his upcoming book about human survival in this age of automation and artificial intelligence, he has now come to a very different conclusion: 'Most people should work in an office, or near other people, and at any cost avoid solitary work-from-home arrangements. Except for new parents, people who aren't well-served by the traditional office set-up, and those with disabilities for whom remote working is a good option.' <a href="https://www.nytimes.com/2020/03/10/technology/working-from-home.html">[1]</a>Now we should abide by the health guidelines and not force our employees to work at the office during this pandemic. We should also remember that there are millions of professionals for whom remote working is never a viable option. Working from home offers creative ways to form work communities and build friendlier relationships with colleagues. The comfortable one-on-one video meetings, virtual happy hours, and blurred work versus personal identities increase the employees' ability to be authentic and bring them together virtually while everyone is practicing social distancing.With the changes in the employees' work lives brought by the pandemic, companies and organizations have been shown how to operate their business more effectively through remote working.Are These Changes Permanent or Temporary?As per the world leaders across many countries fighting with Coronavirus, we have to learn to live with this virus. Lockdown forever isn't an option as economies of many countries are reeling under the current pandemic situation. However, work from home is not always a feasible option for some businesses and organizations that need physically present employees to get their manufacturing and construction work up and running. Many fields of work lack their workers to continue with the unfinished work, which has been stalled due to the government's order of implementing a nation-wide lockdown across many countries worldwide.Also, employees who are currently working from home, fully wired on their smartphones, laptops, and other devices, seem to have jumbled up their schedule altogether. This happens as they have to take up the responsibility of both their home and work while working from home. It involves juggling between scheduling a virtual meeting with their colleagues, booking groceries online, doing household chores, and spending quality time with their family. Moreover, some of them are complaining of fatigue and tiredness due to increased screen time with binge-watching and irregular sleep hours during their self-isolation time at home. <a href="https://www.livemint.com/news/india/brace-for-work-from-home-side-effects-the-lockdown-lifestyle-woes-11588057916893.html">[2]</a><a href="https://en.wikipedia.org/wiki/Adam_Grant">Adam Grant</a>, American Psychologist, Professor at the University of Pennsylvania, and the best-selling author and host of the podcast, <a href="https://www.ted.com/podcasts/worklife">WorkLife</a>, studied how to make work better. In a recent interview for the Podcast of '<a href="https://podcasts.apple.com/ie/podcast/world-vs-virus/id1504682164">World Versus Virus'</a> with the World Economic Forum, he said that owing to the current pandemic environment redesigning the jobs seems a necessary step to be taken as a change in the workplace.<a href="https://www.weforum.org/agenda/2020/04/here-s-how-coronavirus-has-changed-the-world-of-work-covid19-adam-grant/">[3]</a> Now that means you have to make the workplace more motivating, try to build cultures of creativity and generosity in teams, or even try to make the entire organization more productive.As leaders in the industry, you should grab this opportunity to give your employees more control over their jobs and hopefully discover that you can trust them to manage their schedules. You may want to become more hands-on in learning about your employees' strengths, interests, values, and motivations. The enforced work from home culture due to COVID-19 has made most organizations worldwide embrace it and continue to experiment with new ways of working post-crisis.Though it may seem like some employees won't return to their workplace even after the pandemic gets under control, it is too early to come to any conclusion regarding whether these changes are permanent or temporary.How Can A Company Help Its Employees with Remote Working?As the workforce is now more distributed than ever, teams and workers become more flexible and agile. As per the statistics, about 50% of the US population works remotely. Also, around 80% of remote workers have reported experiencing less work-related stress. So, you should ensure to help your employees with remote working using the right tools and imparting proper training to support your team during such hard times.There are video conferencing tools that bring close to an in-person experience with excellent video and audio quality that's user friendly. Some video conferencing tools include Zoom, Google Meet, Appear.in, Google Hangouts, and Join.me. The number of online chatting applications has revolutionized today's companies' working standards, as these have created an enormous shift in their internal communication. Some of the best chat apps include Slack, Chanty, Yammer, and Workplace, by Facebook.The most critical areas you should consider when looking to invest heavily in remote working solutions include the file storage tools while making sure it reduces the onboarding time with the software. The best file storage tools include Google Drive, Microsoft OneDrive, and Dropbox. Productivity or Project Management tools will provide you with stats that prove your employees are more productive when working remotely. Todoist and Trello are the best project management tools out there. <a href="https://blog.smarp.com/remote-work-20-ways-to-engage-and-connect-with-your-remote-employees">[4]</a>How Can Employees Set Themselves Up for Success in A Remote Working Environment?Setting up a calendar and scheduling management can help your employees set themselves up for success in a remote working environment. Collaborating with others while working remotely through project management tools and software is another way to keep track of the work completed by your employees and reward them appropriately for their efforts.Suppose you are looking for employee engagement with remote working. In that case, you should invest in rewards and recognition software that will effectively recognize your workers' outstanding efforts without leaving your table. Vantage Circle is the best option to consider when it comes to rewards and recognition. It is a fun and engaging way to reform your company cultures and employee engagement.Vantage Circle is an easy to use software to help you engage with your employees, which will eventually improve your company's culture.<a href="https://blog.smarp.com/remote-work-20-ways-to-engage-and-connect-with-your-remote-employees">[5]</a> It provides your workers with features to appreciate each other that appears on everyone's feed. This public appreciation will empower your employees for success, even when they are in a remote working environment. Vantage Circle is an employee engagement on the go software that ensures every effort of your remote workers gets recognized.Learning from The BestThough we have been provided numerous benefits of remote working that help get back on the hours lost in transit, the real challenges involve making this option a viable solution for all kinds of business, especially during a pandemic. On the upside, work from home makes the employee feel happier and thus more productive. But the downsides include your employees not having fewer distractions but a different one, it can negatively impact their work-life balance. Though they could feel liberating, they'll find themselves lonely and isolated.

Anjali Prabhanjanan

Premium reporting on technology, startups, VC funding, and software from Techfastly tagged with Business. Read about trends and strategies for Business.

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Remote work is a growing trend where employees are given the freedom to do their job from anywhere in the world. Learn how to prepare your business for remote work effectively!

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How to Prepare Your Business for Remote Work Effectively

<h3 id="overview">Overview</h3>Direct-to-consumer pharmaceutical advertising (DTCPA) refers to marketing and advertising pharmaceutical products directly to the consumers as patients, opposed to specifically targeting healthcare professionals. The term DTCPA refers to advertising prescription medicines via mass media communication platforms such as television, radio, magazines, newspapers, and online platforms. Most countries ban any sort of advertising of prescription drugs directly to the consumers.Direct-to-consumer pharmaceutical advertising is only legal in the US and New Zealand but is subject to regulations concerning the balanced disclosure of a prescription?s benefits in comparison to its risks including the side effects and contraindications. Typically, the regulations for DTCPA are applied to advertising materials describing the indications and benefits of the prescription and may be more lenient to advertising materials that don?t discuss its uses.There are ethical and regulatory concerns surrounding DTCPA, explicitly the extent to which these ads may unduly influence the prescribing of the prescriptions based on consumer demands when in some cases, they may not be medically required or other cheaper options are available. Critics of the DTCPA have argued that excess money is spent on marketing the medications, instead of research and development in the US. The ad spending by the pharmaceutical industry reached US$5.2 Billion in 2016. [<a href="https://en.wikipedia.org/wiki/Direct-to-consumer_advertising">1</a>]<h3 id="types-of-direct-to-consumer-pharmaceutical-advertising-dtcpa-">Types of Direct-to-consumer Pharmaceutical Advertising (DTCPA)</h3>The Food and Drug Administration (FDA) in the US defines several common types of DTCPA for prescription medication.1) Product Claim AdvertisementThis is the most common DTCP advertising that identifies the drug name and trademark brand name of the medication and summarizes the efficacy and risks of the drug.2) Reminder AdvertisementGenerally, it serves to build brand recognition instead of promoting the drug's uses and benefits. Though this type of DTCPA ad can provide information about the price or dose, however, it avoids making claims. Moreover, it cannot contain any information or imagery of the drug itself, including benefits or how it functions, but may still contain a call to action urging viewers to ask their doctor or seek an external resource for more information. The reminder ads may include themes that vaguely allude to the drug's purpose.For instance, a reminder commercial for the erectile dysfunction drug Viagra featured the show tune "Good Morning" and scenes of a man happily walking to work, emphasizing a sexual innuendo in the lyric "it's great to stay up late".3) Help-seeking AdvertisementThis is more of an awareness campaign for a specific medical condition instead of marketing the drug name or treatment. So, this type of advertising includes information about a medical condition and encourages individuals to see a doctor or seek an external resource such as a website or a phone hotline for more information. These external outlets may in turn be used for promoting specific prescription options. Usually, these types of DTCPA are used as preliminary marketing for new drugs.Often, the reminder and help-seeking ads are used by the pharmaceuticals to bypass the more onerous restrictions such as the required listing of side effects, or outright prohibitions on product claims advertising. This is because of the types of DTCPA doesn?t focus on promoting the drug itself. In some cases, a campaign may mix both of these ads, with one ad discussing the condition, and another, similarly-styled ad, mentioning the product but not the condition, letting the viewers infer the association between the ads. [<a href="https://www.investopedia.com/terms/d/direct-to-consumer-advertising.asp">2</a>]<h3 id="regulation-in-the-us">Regulation in the US</h3>Direct-to-consumer advertising of drugs has been legal in the USA since 1985, but only really took off in 1997 when the Food and Drug Administration (FDA) eased up on a rule obliging companies to offer a detailed list of side-effects in their infomercials (long format television commercials).Under the regulation in the US Food and Drug Administration (FDA) requires all DTCPA information:<ul><li>To be accurate and not misleading</li><li>To make claims only when supported by substantial evidence</li><li>To reflect the balance between risks and benefits</li><li>To be consistent with the FDA-approved labeling</li></ul>As per the FDA, the direct-to-consumer "product claim" advertisements for prescription medication must include information on their major side effects and contraindications in the main body, with a "fair balance" of benefits to risks in its coverage. Unless these prescription drugs are given "adequate provision" at a variety of different outlets, the DTCPA ads must also include a "brief summary" of all risks related to the medication.Typically, in print ads within magazines, this summary is given on a second page. The print ads must contain a standard notice that instructs the patients to report negative side effects to the FDA's MedWatch program.Whereas, in the ads carried on broadcast media, such as the radio and television commercials, only the major side effects of the drugs are listed, and the ad contains blurbs directing viewers to where they can obtain more information, such as on a website, phone hotline, or a current magazine issue.If the drug is subjected to a boxed warning from the FDA, it indicates a serious risk. So, the warning must be reproduced in all advertising materials, and reminder ads for the drug are prohibited. Further, the ads that do not make any health claims do not fall under the FDA's jurisdiction, but can still be regulated by the Federal Trade Commission. [<a href="https://en.wikipedia.org/wiki/Direct-to-consumer_advertising">3</a>]<h3 id="what-can-you-say">What Can You Say?</h3>The FDA has rules for what drug ads MUST tell the consumers. The FDA criteria include:<ul><li>At least one approved use for the drug</li><li>The generic name of the drug</li><li>Not be a false or misleading advertisement</li><li>Include the facts about the uses of the advertised product</li><li>Present a fair balance of information about the risks and benefits of the drug</li><li>A brief summary of the risks of using the drug or the important ones under certain circumstances [<a href="https://www.acsh.org/news/2018/05/30/guide-television-drug-advertising-13030">4</a>]</li></ul><figure class="kg-card kg-image-card kg-card-hascaption"><img src="https://iaxds62ruoojbg1k4180.cleaver.rocks/images/posts/fca343fda97e2ee2899b07608fc3dffa.jpg" class="kg-image" alt loading="lazy"><figcaption>Correct Prescription Drug Product Claim Ad. Image Source: <a href="http://www.fda.gov/">www.fda.gov</a></figcaption></figure>1) This product claim ad identifies the fictional drug's brand name- Arbitraer and generic name- misvastatium.2) It accurately states an FDA-approved use for the drug, in this case, Arbitraer is approved to treat seasonal allergy symptoms.3) It says Arbitraer is a prescription drug.4) This ad as a whole provides the required "fair balance" of information about the risks and benefits of Arbitraer.5) The man on the beach who is pictured in the ad is in the approved age range for users of Arbitraer. So, this ad reinforces that the drug is for adults 18 and older and is not for use in children.6) As required by the Food and Drug Amendments Act of 2007, this print ad includes the statement "You are encouraged to report negative side effects of prescription drugs to the FDA. Visit MedWatch, or call 1-800-FDA-1088."7) This print ad includes a "brief summary" of all the risks listed in the drug's FDA-approved prescribing information.8) This ad directs the reader to seek a doctor's advice about taking Arbitraer. The pharmaceutical company has included this statement to ensure that a consumer will not think he or she is qualified to make the prescribing decision.9) This ad provides sources of further information, such as a website and a toll-free telephone number. [<a href="https://www.fda.gov/drugs/prescription-drug-advertising/product-claim-ad-correct">5</a>]<h3 id="what-can-you-not-say">What Can You Not Say?</h3>When the industry?s use of direct-to-consumer advertising was challenged in the US in January 2008, it led to an investigation of several advertisements including the one featuring Robert Jarvik rowing a boat for Lipitor by Pfizer. A month later Pfizer pulled that ad and Ian Read, President of worldwide pharmaceutical operations of Pfizer, expressed regret about people getting the wrong impression. Later the pharmaceutical industry announced that it will update its voluntary standards for direct-to-consumer advertising. Moreover, it pledged to stop using actors to play doctors, and to ensure that the endorsers who said they had used a particular drug had actually done so. [<a href="https://www.who.int/bulletin/volumes/87/8/09-040809/en/">6</a>]<figure class="kg-card kg-image-card kg-card-hascaption"><img src="https://iaxds62ruoojbg1k4180.cleaver.rocks/images/posts/61fd9d680b489e45ef1247bf89f8c07c.jpg" class="kg-image" alt loading="lazy"><figcaption>Incorrect Prescription Drug Product Claim Ad. Image Source: <a href="http://www.fda.gov/">www.fda.gov</a></figcaption></figure>1) The image of the young girl in this fictional drug ad is misleading because Arbitraer is approved for use only in adults 18 years of age and older.2) Though the claims must be supported by data from well-designed studies, consumers may not know if such studies exist and show this specific stat. If the FDA determines that claims are not supported, it will take action to have the ad fixed.3) This ad falsely states that the fictional drug Arbitraer is approved to help control asthma symptoms while in the correct product claim ad it is approved to treat seasonal nasal allergy symptoms.4) This ad shows a specific stat that the consumers may not know about whether such a study exhibited this data. Moreover, if the FDA determines that the ad claims are not supported, it will take action to have the ad fixed.5) This ad presents the risks of Arbitraer in small type size and positions this information far from where the benefits are discussed. This makes it harder for the reader to notice and read the risks of this drug. So, this product claim ad doesn?t follow the "Fair balance" needed to specify the risks and benefits of the drug.6) This ad does not include the "brief summary," that includes additional required risk information that should be present in print ads by the Food and Drug Amendments Act of 2007. Usually, a brief summary is given as a statement "You are encouraged to report negative side effects of prescription drugs to the FDA. Visit MedWatch or call 1-800-FDA-1088." [<a href="https://www.fda.gov/drugs/prescription-drug-advertising/incorrect-product-claim-ad">7</a>]Additionally, pharmaceuticals can choose whether or not to disclose other information such as the drug?s price, if insurance plans will cover the cost, the number of people the drug has helped, if the drug is necessary, or if there?s a cheaper generic version or an older medication that works well. [<a href="https://www.goodrx.com/blog/prescription-drug-advertising-regulation-united-states/">8</a>]<h3 id="dtcpa-and-online-ads">DTCPA and Online Ads</h3>Most marketers are beginning to recognize the enormous potential of DTCPA and online ads as it reaches millions of potential consumers globally. Though a vast majority of DTCPA budgets are still allocated to traditional media such as the television, magazine, newspaper, and radio, the marketers are beginning to shift some of their promotional expenditures on digital promotions including product Web sites, search engine marketing, online display advertising, mobile advertising, and social media campaigns.With the health-related information searches ranked as the third most common activity among the online users in recent years, the drug marketers have also increased their expenditures for marketing efforts on the Internet. The pharmaceutical industry spent $59 million on DTC advertising and promotion on the Internet in the year 2003, and now the spending is estimated to have grown to $1 billion. That?s because the online channel of promotion promises to be lucrative as the data show a 5:1 return on investment for online DTCPA, which is targeted better than print or television ads in reaching the intended audience. [<a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3278148/">9</a>]Though the FDA has not yet issued formal guidelines for online DTCPA, it did send warning letters to over a dozen pharmaceutical manufacturers for company-sponsored search engine links that failed to mention the risks of the product. So, now the drug company-sponsored links include the indication or the name of the product and not both. In the absence of regulation for DTCPA and online ads, the drug companies have asked the FDA for guidance regarding what is acceptable especially when advertising on social media platforms.The internet has become an increasingly popular source of medical information for consumers. As per a 2005 study of over 6,000 adults, though the physician was still the most trusted source of information. Nearly 48.6% of the patients went online before consulting their physician whereas only 10.9% talked to their doctor first. [<a href="https://pubmed.ncbi.nlm.nih.gov/21426028/">10</a>]<h3 id="dtpca-and-international-acceptance">DTPCA and International Acceptance</h3>DTCPA and international acceptance include informing the patients by communicating the safety risks and public health information and warnings about topics such as adverse reactions and online drug purchasing, etc.This type of advertising informs, educates, and empowers the patients by allowing them to take charge of their health. Consumers can benefit from having access to multiple information sources about drugs and other treatment options instead of solely relying on healthcare providers. It encourages patients to contact their doctors and seek medical advice. As per a 2004 FDA consumer survey, exposure to DTCPA has prompted 27% of Americans to make an appointment with their doctor to talk about a condition that has not been previously discussed. [i]Another study found that the small print in a drug ad has a strong impact on the patients to contact their physicians. Moreover, the effect of DTCPA increases the patient contact with the doctors through promoting dialogue about the lifestyle changes necessary to improve the patient?s health. As per the FDA survey, 73% of doctors believed that the DTCPA helped patients to ask more thoughtful questions and 53% of doctors said that it has led to a better discussion with them. So, the DTCPA promotes heightened awareness and detection of any adverse reactions among the patients that lead to a healthy discussion with a physician. [i]As per studies, DTCPA strengthens the patient-clinician relationship due to the participation of an informed patient in the clinical decision. Because 83% of the ads focus on the physician-patient communication and 76% explicitly promotes consulting your healthcare providers. Additionally, DTCPA reinforces the doctor?s recommendations and make the patients follow treatment instructions diligently. [ii]In the 2004 FDA study, 33% of physicians reported that DTCPA increased patient adherence. In another study by Harvard University/Massachusetts General Hospital and Harris Interactive, 46% of physicians said that they felt DTCPA increased patient compliance. [i]DTCPA decreased the under-diagnosis and undertreatment of medical conditions among the patients. As per the 2003 Harvard University/Massachusetts General Hospital/Harris Interactive study, it was found that 25% of patients who visited their doctor after seeing DTCPA received a new diagnosis; of these, 43% were considered to have a high-priority health condition. [<a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3278148/">10</a>]However, the physicians thought the DTCPA did not convey information about risks and benefits equally well. About 78% of doctors believe that their patients understand the possible benefits of the drug very well or somewhat, compared to 40% who believe their patients understand the possible risks, while 65% believe these ads confuse patients about the relative risks and benefits of prescription drugs. Moreover, nearly 75% of physicians believed that the DTCPA causes patients to think that the drug works better than it does, and 80% of doctors feel pressure to prescribe the specific brand-name drug when asked. [<a href="https://www.fda.gov/drugs/drug-information-consumers/impact-direct-consumer-advertising">11</a>]As per the currently available evidence, the effect of DTCPA on consumers is both positive and negative. An increased understanding of the effects of DTCPA will have significant implications for public health in the U.S. and New Zealand as well in other countries and regions where the ban on such advertising is being challenged. Although a ban on DTCPA has occasionally been called for in the US owing to the debate regarding the rising prices of drugs, it is hoped that the measures to maximize the benefits and reduce the risk of such advertising will allow this controversial, but powerful, medium to be better utilized for the improvement of public health.<blockquote>	Citations for Study:</blockquote><blockquote>[i] Aikin, K. J., Swasy, J. L., &amp; Braman, A. C. (2004). Patient and physician attitudes and behaviors associated with DTC promotion of prescription drugs?summary of FDA survey research results. Food and Drug Administration. Center for Drug Evaluation and Research, 19.</blockquote><blockquote>[ii] Auton, F. (2009). Opinion: The case for advertising pharmaceuticals direct to consumers. Future medicinal chemistry, 1(4), 587-592.</blockquote>

Direct-To-Consumer Pharmaceutical Advertising (DTCPA) In The US

Key Crowdfunding PlatformsNon-equity crowdfunding provides no equity or ownership to those who donate. Instead, it is based on offering some reward in exchange for a donation. Non-equity crowdfunding is a significant type of crowdfunding that includes much of what an average person thinks of when they hear this term. Companies and businesses that produce goods in the form of tech gadgets and art are specifically drawn to the non-equity or rewards crowdfunding. In this type of crowdfunding, the backer receives products or work produced by the campaigner in exchange for their contribution.Kickstarter and Indiegogo are two key rewards-based crowdfunding platforms. In the non-equity crowdfunding, the creator offers some tangible rewards to the backers in exchange for their support. Often this product may be what they intended to build, such as a gadget, a pair of shoes, a board game, a book, etc. or a token gift such as a t-shirt.Kickstarter is more exclusive to who can campaign on their sites and mandates that you offer rewards. Both the reward-based platforms offer entrepreneurs, Small and Medium Business (SMBs), and startups to tap the public desire for getting in on with the next big thing. Additionally, both take about 8% of the fees, with 5% going to their platform, and about 3% goes to the payment processor. GoFundMe is another big platform in crowdfunding, where you can set up a campaign for your small business or startup. This platform is strongly identified with crowdfunding for medical expenses and emergencies, so a more commercial campaign might struggle to gain traction on GoFundMe. Patreon is a membership platform in the US, allowing creators and artists to earn a monthly income by providing exclusive rewards and perks to their patrons or subscribers.There is a second type of non-equity crowdfunding as well, referred to as debt crowdfunding. The debt crowdfunding involves borrowing funds from a crowd of investors instead of a bank. Kiva U.S., Prosper, and LendingClub are a few leading debt crowdfunding sites.Most startups will find the prospect of taking the debt to get funding less attractive compared to offering rewards or equity. The debit crowdfunding, also known as P2P (Peer-to-Peer) lending, is more akin to a loan than a rewards or equity crowdfunding campaign. [<a href="https://www.merchantmaverick.com/equity-vs-non-equity-crowdfunding/">1</a>]Pros &amp; ConsMost of the startup project creators thinking about crowdfunding are considering a rewards-based alternative. This kind of crowdfunding is based on getting financial support in exchange for some form of rewards. This way, their projects get funding, and the backers of it get rewards. Kickstarter and Indiegogo are the most popular platforms for non-equity or rewards-based crowdfunding. [<a href="https://startupfundingsecrets.io/crowdfunding-pros-and-cons/">2</a>]<figure class="kg-card kg-image-card kg-width-wide kg-card-hascaption"><img src="https://iaxds62ruoojbg1k4180.cleaver.rocks/images/posts/a402a688948ef007bd77b4f5e2eabe6f.jpg" class="kg-image" alt loading="lazy"><figcaption> Table:1 Pros &amp; Cons of non-equity or rewards-based crowdfunding</figcaption></figure>Any project which can create exciting and valuable rewards will find its place in Non-Equity Crowdfunding. Note that creating the right rewards is a challenge, and not every project can do it, however, if you can, you should take advantage of this type of crowdfunding. [<a href="https://fundchaser.com/crowdfunding/pros-cons-of-all-types-of-crowdfunding/">3</a>]Crowdfunding for EquityThe JOBS Act does not consider the crowdfunding based on non-equity as it does not involve securities and has no express or implied possibility of a return. Though this type of crowdfunding is not exempt under the JOBS Act, nonetheless, people are investing substantial amounts of money in unregulated, non-equity based crowdfunding offerings that have a similar risk of loss as crowdfunding securities without offering a financial return. [<a href="https://repository.uchastings.edu/cgi/viewcontent.cgi?article=1041&amp;context=hastings_business_law_journal">4</a>]Successful crowdfunding platforms like Kickstarter and IndieGoGo help people raise money for a project or a cause by encouraging support from anyone from the most seasoned investor to your mom who is interested in this campaign. They can donate funds to your crowdfunding campaign, and typically you don?t have to pay the money back. However, in order to raise funds through crowdfunding for equity successfully, you have to be excellent at marketing and presenting your business or product in a way that resonates with people and spurs them to donate.Reward-based crowdfunding allows you to accept donations from individuals who receive a token of appreciation in return. Platforms like Kickstarter or Indiegogo allow nonprofits, businesses, and individuals to set up their accounts for raising money. Though you?ll see a range of $5 to $500 or more for a business raising fund, the average donation is $88. However, unlike equity crowdfunding that gives crowdfunding investors equity in your company, you?ll retain full ownership, and don?t have to pay back the money you raise through this crowdfunding campaign. [<a href="https://www.nav.com/business-financing-options/reward-crowdfunding/">5</a>]Equity Crowdfunding Rules and Your Residence rulesAs per the U.S. Securities and Exchange Commission (SEC) rules for Title III of the JOBS Act, the equity crowdfunding law that was signed in as a potentially game-changing bill into the law, where the equity crowdfunding was made available for startups and small companies.Here are the rules for professionals who plan to use it to help their companies raise new capital.1. The JOBS Act says a company can raise up to $1,000,000 with Title III equity crowdfunding. If a company wants to raise more, there is always equity crowdfunding?s prettier cousin, a Regulation A+ mini-IPO to consider.2. The law limits investors to(a) the greater of $2,000 or 5 percent of the lesser of their annual income or net worth, if either the annual income or the net worth of the investor is less than $100,000(b) 10 percent of the lesser of their annual income or net worth, if both the annual income and net worth of the investor is equal to or more than $100,000.In both cases, Investors may not invest more than an aggregate amount of $100,000 in a year.3. Like many rewards-based crowdfunding campaigns and Regulation A+ mini-IPOs, if a company using the new equity crowdfunding law does not raise the full amount of their funding goal, they do not get to keep any of the money raised and lose the up-front out-of-pocket costs.4. The proposed requirement of a full financial audit has been dropped by the SEC for companies using the equity crowdfunding law for the first time.5. A company is required to disclose to investors, and file with the SEC, mention the price of the securities, the target offering amount, the method to determine the price, the deadline to reach the target, and whether they will accept investments over the target. They must describe the business, the company?s financial condition, the use of proceeds from the offering, information about the officers, directors, and owners of 20 percent or more of the company and their annual financial statements.6. Equity crowdfunding involves the sale of securities based on federal and state laws. So, if you do something wrong, your company (its directors and officers), can be sued, and in some cases, could go to jail.07. Much like most shares sold through private placements, in most circumstances, the shares of stock sold in equity crowdfunding cannot be sold for at least one year. [<a href="https://www.entrepreneur.com/article/252315">6</a>]

A Review of the Major Crowdfunding (Non-Equity)

Online Ad DuopolyGoogle and Facebook continue to dominate the online advertising space even with the self-inflicted security crisis abounding and the Presidential candidates proclaiming to break them up. As per the latest report of eMarketer, both Google and Facebook weathered a less-than-flattering news cycle to rake in the lion?s share over the online advertising spending market.Though previously predicted that this duopoly will lose a bit of its edge on the US ad market with Google?s share set to decline by two points in 2018 and Facebook?s was set to rise by less than one, but the former?s share dropped by 1.4 points while the latter?s share grew by 2. So, this sums up the pair accounts for over 60 percent of the US online advertising spending space.As per Nicole Perrin, Senior Analyst at eMarketer, ??The digital marketers who are buying media at these continue to believe that it?s the best place to put their dollars, irrespective of any pushback they might get in the press.?? Though the duopoly?s high revenue is here to stay, her team predicted that both the shares of Google and Facebook will reduce in 2019 and won?t grow as quickly as the online ad market. That?s based on both these companies being huge and it could get hard to maintain growth rates when you are that big.Meanwhile, as per the report on Nitro-Net, other players such as Amazon continue to be the duopoly?s biggest competitor. According to eMarketer?s data, this tech giant is slated to sweep up 8.8 percent of online ad budgets and experts believe Amazon will make it to the top quickly. That?s because Amazon has what Google and Facebook have- lots of valuable data, which can be used to target people at large. While Google and Facebook can track the websites which people browse and where they post, Amazon knows much more valuable data for marketers, which includes what people buy, how often they search for what they want to buy, and how often they buy something. So, with Amazon, the users arrive on their website to buy something, which is way more than when people are browsing on any other site having an ad on. So, they don?t even have to whip out their wallet when it comes to data of their users. [<a href="https://www.adweek.com/programmatic/the-digital-duopoly-still-reigns-the-ad-world-according-to-a-new-report/">1</a>]Apple Started the Cookie War but Google Will End ItFrom a technical perspective, the first-party and third-party cookies have no real difference as they both contain the same pieces of information and can perform the same functions. However, the real difference between them has to do with how they are created and used subsequently that often depends on the context.The first-party cookies are stored by the domain or the website users are visiting directly. They allow the website owners to remember language settings, collect analytics data, items you?ve added to your shopping cart, and perform other useful functions such as to remember usernames and passwords, which help them to provide you with good user experience.The third-party cookies are created by the domains other than the one you are visiting directly, hence the name third-party. These cookies are used for retargeting, cross-site tracking, and ad-serving. They also allow the website owners to provide you with certain services like the ?Live Chat.? [<a href="https://clearcode.cc/blog/difference-between-first-party-third-party-cookies/">2</a>]How Did Apple Started with Its ITP Program?Since introducing the Intelligent Tracking Prevention (ITP) feature within its Safari browser in 2017, Apple is continuing its war against online tracking which limits companies? abilities to track people around the web. Apple has been updating this feature to close the loopholes that companies have been able to exploit while continuing to track people.ITP 2.1 and Limitations on First-Party CookiesApple?s ITP Program 2.1 announced on February 21, 2019, created a new set of challenges for online advertisers, tech vendors, and publishers making money from online behavioral advertising (OBA), web analytics, attribution, testing, and personalization. It introduces a new set of measures where Safari eliminates most of the first-party cookies after seven days and blocks all the third-party cookies by default. Thus, it renders the device fingerprinting and long-tail measurement nearly impossible.So, if your organization utilizes an analytics platform, such as Google Analytics, to track the user interactions with your website, then the data regarding Safari users, for instance, new vs. returning users counts will likely be skewed.ITP 2.2 Imposing A One-Day Cap on CookiesITP 2.2 announced in April 2019, looked to close certain loopholes that companies such as Facebook and Google had taken advantage of since the inception of ITP?s to continue tracking their user journeys all over the web. It reduces the lifespan of certain first-party cookies from seven days to 24 hours. It doesn?t target all the first-party cookies, but only those which meet the following three conditions will have a lifespan of 24 hours on Safari browser:<ul><li>The cookies must be set via a client-side JavaScript (document.cookie)</li><li>The users must have reached your website from a site classified as having a ?cross-site tracking? capabilities such as all major ad networks like Google and Facebook.</li><li>The link clicked by the user to reach your website contains link decorations such as fragment identifiers or query parameters.</li></ul>So, this program is taking direct aim at your organization?s marketing efforts, especially done through paid social and online channels.ITP 2.3 Takes Direct Aim at WorkaroundsMajor AdTech companies have eventually found a workaround for the most recent ITP privacy changes which led to Apple releasing yet another update of ITP 2.3 that prevents this solution from working. With ITP 2.3, your website will be marked for non-cookie website data deletion if:<ul><li>The Safari user navigates to your website from a domain deemed to have cross-tracking capabilities such as Google, Facebook, etc.</li><li>And the user reaches a final URL containing a link decoration.</li><li>If the Safari user returns to your website after seven days, all of your site?s data will be deleted from their browser.</li></ul>The interesting thing here is that with recent ITP 2.3 update, the advertisers have a way to extend the window for a strict cap for first-party cookies from one to seven days if they use localStorage method, a non-cookie-based web storage mechanism, that helps the advertisers to improve their measurement and attribution. [<a href="https://www.blastanalytics.com/blog/understanding-apple-itp-and-impact-on-your-business">3</a>]The consequences of the cross-site tracking restrictions heighten the impact on user experience and have become more noticeable with ITP 2.3 which eliminates a workaround that has enables the companies to track people on other companies? websites without relying on cookies.According to StatCounter, an online traffic monitor, Safari accounted for 15% of the global browser market compared to Google Chrome?s 64% market share. So, online advertising-wise, the ITO 2.3 could be positive for advertisers concerning attribution and measurement. Probably, companies will find other workarounds that Apple will have to cordon off. [<a href="https://digiday.com/marketing/wtf-apples-itp-2-3-update/">4</a>]Google's ResponseGoogle?s plan to eliminate the third-party cookies from its Chrome browser by 2022 is good news for your privacy but terrible for many digital advertisers. However, it is great for Google, as it doesn?t have to rely on third-party cookies to power its massive ad business. The website you use placed cookies or tiny text files, usually from other domains known as a third-party cookie on your browser to track you and your interest across the web. These form the backbone of the online advertising ecosystem.What does this mean for Small Advertisers &amp; Small Brands?So, Google that dominates both the web browser and the online ad markets, relies on third-party cookies for some parts of its ad business, may suffer due to building a more private web. Chrome users may not notice how their privacy is affected by this change, but it will significantly reduce the number of third-party cookies they will come across throughout their daily internet surfing, protecting them from ad companies, unaware of them being tracked and never heard of so unsure if they can be trusted.However, Google also collects a ton of first-party data of internet users through its services such as Google Maps, Gmail, Google Home, YouTube, Android, etc., that will not be affected by the ban. Instead, this can become more valuable as the third-party sources of online ad targeting data dry up.Google is a lot of things as they work with every publisher, advertiser, and agency and there?s not much you can do online without touching it. It has already offered options for its users to block the third-party cookies but it needs you to opt-in to so, resulting in not being quite effective. So, Google is giving everyone two years to figure out things before this change gets implemented. Experts are hoping that this will lead to a better and less intrusive online advertising ecosystem. This will spur innovation in the online advertising space as the compromise needed is something which identified a user and their behavior across the internet, which is good for the ad companies as well as provide the user with control over their own privacy.Though limiting access to your data as a user seems like a good thing for your privacy, it will also give the first-party data vacuums such as Google and Facebook, the power in the online ad market, and more control over your data. This is because eliminating third-party cookies simply allows Google and Facebook to track consumers and gather enormous amounts of data while preventing small advertisers. Eventually, both these companies become gatekeepers and the small advertisers will get only what Google and Facebook will allow them to have. So, small brands need to invest in their own Customer Relationship Management (CRM) systems. [<a href="https://www.vox.com/recode/2020/1/16/21065641/google-chrome-cookie-ban-advertisers">5</a>]Google?s Customer Match ProgramGoogle?s Customer Match program may become even more important as it lets you use your online and offline data to reach and re-engage with your customers across the services from Google. Using the information shared by your customers, this program will target ads to them, and others like them. Ensure to use this advertising tool for your business goals to increase your brand awareness and drive conversions. For instance, on Gmail, you can reach your customers or similar users using personalized ads at the top of their inbox tabs or reach a new audience or target audiences similar to your most valuable customers on YouTube. [<a href="https://support.google.com/google-ads/answer/6379332?hl=en">6</a>]Facebook?s Customer Audiences from Customer ListsA Custom Audience from a customer list is a type of audience you can create to help build the reach of your website or business. It contains information called ?identifiers? that are collected from your customers include phone numbers, email, address, etc. and provided to Facebook, which is processed called as matching to match the hashed information with Facebook profiles that lets you advertise to your customers on Facebook, Instagram, and Audience Network. [<a href="https://www.facebook.com/business/help/341425252616329?id=2469097953376494">7</a>]

Why the Online Ad Duopoly is Going to Get Worse?

What is Lower Level Language?A lower-level language is a programming language that deals with the hardware components and constraints of a computer. Also, referred to as a computer?s native language, it has no or only a minute level of abstraction about a computer and works to manage the operational semantics of a computer.Lower level languages are designed to directly operate and handle the entire hardware and instructions set architecture of a computer. They are considered to be closer to computers as their prime function is to operate, manage, and manipulate the computing hardware and components. Programs and applications that are written in a low-level language are directly executable on the computing hardware without needing a translation or interpretation.What is Higher-Level Language?A higher-level language is any programming language that enables the development of a program is a more user-friendly programming context. Generally, the higher-level languages are independent of the computer?s hardware architecture. A higher-level language has a higher level of abstraction from the computer and focuses more on the programming logic instead of the underlying hardware components such as memory addressing and register utilization.Higher-level languages are designed to be used by the programmer or the human operator and referred to as closer to humans. Their programming styles and context is easier to learn and implement than the lower-level languages. Usually, the entire code focuses on the specific program to be created.A higher-level language doesn?t need addressing the hardware constraints when developing a program. However, every single program written in a higher-level language must be interpreted into machine language before being executed by the computer. [<a href="https://www.techopedia.com/">1</a>]Advantages &amp; Disadvantages of Lower Level LanguagesAdvantages<ol><li>Programs developed using these languages are fast and memory efficient.</li><li>It helps the programmers to operate processor and memory in a better way.</li><li>Cuts the compilation and interpretation time as there is no need for any compilers or interpreters to translate the source code to machine code.</li><li>Provide direct manipulation of computer registers and storage.</li><li>It can directly communicate with the hardware devices.</li></ol>Disadvantages<ol><li>Programs developed using these languages are machine-dependent and not portable.</li><li>The lower level languages are difficult to develop, debug, and maintain.</li><li>These languages are more error-prone.</li><li>Usually, they result in poor programming productivity.</li><li>Programmers using low-level language must have additional knowledge of the computer architecture of a specific machine.</li></ol>Advantages &amp; Disadvantages of Higher-Level LanguagesAdvantages<ol><li>They are easy to write, debug, and maintain, so these languages are programmer-friendly.</li><li>Provides a higher level of abstraction from machine languages.</li><li>It is a machine-independent language.</li><li>They are less error-prone and so it is easy to find and debug the errors.</li><li>Programming using this language results in better programming productivity.</li><li>Quite easy to learn these languages.</li></ol>Disadvantages<ol><li>Takes additional translation time to convert the source code into machine code.</li><li>The programs written in these languages are comparatively slower than the programs written in lower-level languages.</li><li>Generally, they are less memory efficient, compared to the lower level language programs.</li><li>They cannot be used to directly communicate with the hardware.</li></ol>Examples of Lower &amp; Higher-Level LanguagesExamples of lower-level language include the following:1) Machine language which contains a set of instructions written as a sequence of binary bits that are directly executed by the computer. Hence it is considered closest to the hardware.2) Assembly language which is an improvement over the machine language that uses mnemonics which are short abbreviate English words that specify a computer instruction. This language also interacts directly with the hardware. It uses a special program called an assembler that translates the mnemonics to specific machine code. An assembly language is used to develop the device drivers, operating systems, compilers, and other programs that need direct access to hardware. [<a href="https://codeforwin.org/">2</a>]Examples of higher-level language include the following:1) C2) C++3) BASIC4) Java5) COBOL6) LISP7) PASCAL8) FORTRANAs the higher-level languages are slower in terms of execution compared to the lower-level languages, so a compiler or interpreter is used to convert it into machine language.Compiled vs Interpreted Languages<figure class="kg-card kg-image-card kg-width-wide kg-card-hascaption"><img src="https://iaxds62ruoojbg1k4180.cleaver.rocks/images/posts/84ca2331b1c8b7d66110293d72a0beba.jpg" class="kg-image" alt="Table: Compiled Languages Versus Interpreted Languages" loading="lazy"><figcaption>Table: Compiled Languages Versus Interpreted Languages</figcaption></figure>What is a compiler?A compiler is a special computer program that translates the computer code written in one programming language into another language. Generally, it is used for programs that translate the source code from a high-level programming language to a lower-level language to create an executable program.Microsoft has now released the source code for GW-BASIC, its 1983 BASIC interpreter for the Altair 8800 computer because having the open-sourced MS-DOS people wanted it to do the same with its BASIC. The sources for Microsoft GW-BASIC are the assembly language for the Intel-designed 8088 microprocessor from 1983 that eventually become the basis for today?s Microsoft Visual Basic .NET.According to Rich Turner, the source code for GW-BASIC is 100% assembly language or a lower-level language that was built for a specific chip architecture. When writing the software for early PCs, every single byte and instruction mattered. So, the developers wrote the code in a lower-level language such that it could physically fit their software into the available memory, and be able to access the resources and the internal functioning of the computers. Though the developers writing code for mainframes then could use higher-level languages such as COBOL, FORTRAN, and LISP, but the compilers used for them were quite inefficient and expensive, huge for those PCs. Thus, all the source code for GW-BASIC is pure assembly code, translated on a per-processor/ per machine basic from the core/ master sources. [<a href="https://www.zdnet.com/article/microsoft-takes-you-back-to-1983-its-just-open-sourced-its-gw-basic-interpreter/">3</a>]Where the future of programming is heading?Power Apps from Microsoft, Visual Builder from Oracle, and other tools let you create software without writing a single line of code. The development of no-code, a software development method has been gathering momentum, it is now possible to develop software or programs without writing any underlying code. As per Vlad Magdalin, co-founder and CEO of WebFlow, a no-code platform for building websites, ?No-code allows people who don?t know how to write code to be able to develop the same application that a software engineer would.?A no-code development could be regarded as a form of visual programming, where the users manipulate code elements through drag-and-drop user interfaces instead of the traditional text-based development environments. A popular instance is the Scratch Programming Language of the MIT Media Lab that uses graphical programming blocks for teaching children and adults how to code.A no-code is a natural progression and a product of technological evolution in the realm of software development that began as a lower-level or assembly language programming using which the programmers could get closer to machine code instructions that later on evolved to higher-level languages of today such as Java, C, Python, and other programming languages, making programming easier for software developers. Adobe Dreamweaver and Microsoft Visual Basic that still needs knowledge of code are considered as earlier iterations of the no-code programming tools.Today, various platforms like Oracle?s Application Express enable no-code development to develop business apps, Microsoft?s Power apps and Oracle?s Visual Builder creates web and mobile apps, and the Salesforce?s Lightning Platform helps to develop customer relationship management apps. Moreover, Google is getting into action with the recent acquisition of AppSheet, a no-code platform to build mobile apps.To conclude, these tools and applications developed using them are gaining traction in the tech world. A no-code development is the result of more powerful computers, easily accessible cloud computing services, and better programming languages that help you start building software without coding. This is also a solution to rising demand for generating more software, but a limited number of developers who can create that software, as coding is a difficult skill to learn.Moreover, the no-code platforms allow faster application development that will lower the costs for businesses and also eliminate any possible issues between a person?s vision of a product and how a software engineer brings that into life through coding. Thus, visual development tools provide the business owners with the power to create software without handing their project to a developer or learning how to code. [<a href="https://spectrum.ieee.org/tech-talk/computing/software/programming-without-code-no-code-software-development">4</a>]

Lower Level versus Higher Level Languages

It is an investment type where several investors invest their capital into a specific startup business in exchange for equity shares. Often, this type of crowdfunding is used by the early-stage companies to raise their seed funding.

Things You Should Know About Equity Crowdfunding for Your Startup

Introducing Equity Crowdfunding to Raise Funds for Startups in the USAEquity crowdfunding is a type of crowdfunding that is primarily concerned with Title III of the Jumpstart Our Business Startups (JOBS) Act. It is an investment type where several investors invest their capital into a specific startup business in exchange for equity shares. Often, this type of crowdfunding is used by the early-stage companies to raise their seed funding. Non-accredited investors can invest in equity crowdfunding as it has the potential for earning profit as the startup succeeds. Besides, it doesn't need a substantial amount of money to get started, as it depends on how much a startup seeks funding.However, there are drawbacks, too, with equity crowdfunding such as inherent risk and timeframe. With no guarantee of whether a new startup will take off or fail, equity shares of the investors would be worthless. Even after the success of a startup, it may take years before investors can sell equity shares.Equity Crowdfunding Regulation in the USAs soliciting investments from the public is illegal, so equity crowdfunding can breach different security laws unless it is filed with proper securities regulatory authority. The Securities and Exchange Commission (SEC) in the US is a regulatory authority having ways such as the Howey Test to determine security in equity crowdfunding. Securities concern the investors who have been asked to contribute money in exchange for profits on funding startups through equity crowdfunding. [<a href="https://en.wikipedia.org/wiki/Equity_crowdfunding">1</a>]Is Equity Crowdfunding Legal? Under What Law Does it Fall?Equity crowdfunding is legal under the JOBS Act in the US, which was signed by President Barack Obama on April 5, 2012. This law is primarily intended to facilitate funding for startups and small businesses to ease securities regulations. There are three types of equity crowdfunding that comes under the following laws:1. Regulation A+ OfferingThis offering falls under Title IV of the JOBS Act, which further has two types of financial raises: Tier 1 Raise &amp; Tier 2 Raise.Both Tier 1 &amp; Tier 2 offerings are open to both ordinary and accredited investors. Moreover, companies can test the waters period in both Tier 1 &amp; 2 raise to determine the demand of the investors, which is a part of Rule 225.In Tier 1 offerings, you can raise $20 million in 12 months, while you can raise $50 million in 12 months in Tier 2. Tier 1 should meet the Blue-Sky investing regulations of the state in which the investor resides, whereas, in Tier 2 offerings, you don?t have to worry about the state-by-state regulations under the Blue-Sky Laws. However, audited financials and post-offering reporting are required.2. Regulation D OfferingThese are the traditional form of crowdfunding to raise funds for a startup which existed before the JOBS Act came into effect. You can raise as much money as you would like from Accredited investors and up to 35 other investors. It has rules 506(b) and 506(c) which are also referred to as private placements. As per both Reg D Rule 506(b) and Reg D Rule 506(c), you can raise money from accredited investors. However, there is one significant difference: you are allowed to advertise that you are raising capital under Rule 506(c) and must verify the status of accredited investors.3. Title III or Regulation CF OfferingTitle III or the Regulation Crowdfunding (RF) of the JOBS Act permits non-accredited investors to purchase shares in startups. Under this rule, you can raise:? $1,070,000 or less in 12 months from ordinary by disclosing audited or reviewed financial statements and tax returns.? $535,000 or less by providing reviewed or audited financial statements reviewed by an accountant.? $535,000 or more for first-time providers, audited or reviewed financial statements reviewed by an accountant. In the case of the non-first-time providers, financial statements audited by a public accountant independent of the issuer are required.Along with the above conditions, companies also have to present annual reporting requirements. Not every company can participate in a Reg CF offering. The securities sold through a funding portal are controlled by the federal securities laws and should be held for a year before they can be resold. Though disclosures are vital in Reg CF, the burden of risk is now shifting to individual investment limits allowing more investors to lose less. [<a href="https://www.howardkennedy.com/en/latest/blog/regulation-of-crowdfunding-in-the-uk-us-and-israel_a-comparative-review">3</a>]Who can be considered as an Accredited Investor in the US?An accredited investor is one with a special status under the financial regulation laws in Rule 501 of Regulation D of the US Securities and Exchange Commission (SEC). Many types of equity crowdfunding are permitted only to accredited investors, such as banks, employee benefit plans, and trusts, insurance companies, and individuals considered as affluent to have less requirement for specific protections. You must earn more than $200,000 per year, has a net worth exceeding $1 million, or be a general partner, executive officer, or director for the security issuer to be considered as an accredited investor. [<a href="https://en.wikipedia.org/wiki/Accredited_investor">3</a>]Is Crowdfunding of Fundraising Governed at Federal or State Level?Under the federal legislation, the funding portals should register with the SEC and an applicable self-regulatory organization to operate. The SEC approved the progress of the crowdfunding bill to ease online fundraising for startups and small companies and provide fraud protection for investors. Along with the SEC regulations, the Financial Industry Regulatory Authority (FINRA) creates additional rules for member businesses involved in crowdfunding. Both Regulation CF and the FINRA has a role in evaluating and approving the applications of these crowdfunding portals.As the federal legislation for crowdfunding seems unworkable for some people, many US states have recently enacted or are considering their crowdfunding exemption laws. This is to enable intrastate investment offerings that are exempted from federal (SEC) regulation. The Invest Kansas Exemption and the Invest Georgia Exemption are instances of crowdfunding exemption laws. [<a href="https://en.wikipedia.org/wiki/Equity_crowdfunding">4</a>]Equity Raising PlatformsBefore the equity crowdfunding bill was passed under Regulation D, it was limited to individuals who met with specific net worth and income levels, called accredited investors, and was conducted by a licensed broker-dealer. However, after the Title III of the 2012 JOBS Act's Regulation CF came into effect, equity crowdfunding was allowed regardless of the net worth or income and conducted by a licensed broker-dealer or via a funding portal registered with SEC. Some of the notable equity raising platforms include:<ol><li>ProFounder- This is the first US company to facilitate equity crowdfunding between startups needing funds to launch and willing investors who were ignored of how to invest in a private firm. This platform closed even before the law on equity investment come into force in the US [<a href="https://en.wikipedia.org/wiki/Equity_crowdfunding">5</a>]</li><li>Wefunder- It is the largest funding portal by many investors and investment volumes. Over the years, it has become more successful than other portals as it encouraged businesses to use fundraising mechanisms other than equity. [<a href="https://www.practicalecommerce.com/Has-Crowdfunding-from-Ordinary-Investors-Been-Successful">6</a>]</li><li>StartEngine- It is one of the world's largest equity crowdfunding sites that allow investors to buy equity in companies that are rising to $50 million. [<a href="https://startupfundingsecrets.io/equity-crowdfunding-sites/">7</a>]</li><li>AngelList- This is the oldest and most-established equity crowdfunding platform for accredited investors who know the "inside baseball" game in Silicon Valley. Designed for professionals, it is the perfect "operating system" for startups, providing many useful services. [<a href="https://www.moneycrashers.com/equity-crowdfunding-sites-investors-entrepreneurs/">8</a>]</li><li>SeedInvest- It started to help technology startups get access to capital from people willing to make sizeable equity investments. It allows only US-based businesses and has a picky selection criterion. It has a positive reputation with a growing base of investors and successful companies. [<a href="https://www.business.org/finance/loans/best-crowdfunding-sites-for-startups/">9</a>]</li></ol>Notable SuccessBeta Bionics, based in Boston that builds bionic pancreas to improve the lives of people who have type 1 diabetes, had a successful campaign on Wefunder. It raised $1 million from 817 investors on a $100 million valuation in August 2016. Hopsters Brewery, a Boston based brewpub restaurant, raised $1 million on a $4 million cost from 713 investors on Wefunder in 2017.Sondors Electric Car, based closer to Silicon Valley in California, has successfully raised $1 million on a $32.4 million valuation on StartEngine. Recently, Hackernoon has completed a $1.07M raise through the equity crowdfunding platform, StartEngine. [<a href="https://www.securities.io/top-5-equity-crowdfunding-websites-opinion/">10</a>]Notable FailuresOne of the notable failed equity crowdfunding cases includes Rebus, which was founded in 2010 and raised ?816,790 in 2015 on Crowdcube by selling 6.63% of its shares to 109 investors. As per Crowdcube, Rebus is its biggest bankruptcy that shows there is a deficient public understanding of the risks related to equity crowdfunding. Other notable failed equity crowdfunding cases are Buy2Let and Alchemiya Media. [<a href="https://books.google.co.in/books?id=8QrBDwAAQBAJ&amp;lpg=PR1&amp;dq=Crowdfunding%3A%20Fundamental%20Cases%2C%20Facts%2C%20and%20Insights&amp;pg=PR1#v=onepage&amp;q=Crowdfunding:%20Fundamental%20Cases,%20Facts,%20and%20Insights&amp;f=false">11</a>]Can Non-Accredited Investors Invest in Startups Through Funding Platforms?As per the rules that went into effect on May 16, 2016, anyone can invest through equity crowdfunding platforms. An ordinary individual can invest in the startup companies that earlier used to be the stuff of Angel and Venture Capitalism (V.C.) investors only. Of course, some restrictions apply, and there are higher risks and potential rewards for early-stage companies.What Are the Rules Around Non-US Citizens Investing Through These Platforms?The participation of non-accredited investors to fund startups on funding portals is not free for all. The SEC has placed a few restrictions on how much investment can be made by the non-accredited investors throughout 12-months based on their net worth and income. This is to prevent the risk to non-accredited investors who are not aware of investments and crowdfunding.<ul><li>If your net worth and annual income are less than $107,000 per year, you can invest less than 5% of your income or net worth</li><li>If your annual income and net worth exceed $107,000, you can invest up to 10% of your income or net worth</li></ul>Despite the progress made in the past around equity crowdfunding, the US still operates on archaic laws, and that's why you should ensure to know the rules on different platforms around accepting international investors. Ensure that the US-based platforms comply with the US securities regulations and regulators (SEC and FINRA) and foreign securities laws related to any investor outside the US [<a href="https://www.investopedia.com/articles/entrepreneurship-small-business/050216/guide-crowdfunded-investments-nonaccredited-investors.asp">12</a>]Benefits of Equity Crowdfunding for the stakeholder, investors, VC, and person in need of fundingEquity crowdfunding is a feasible option for the person in need of funding their startups but are struggling to communicate their values to VCs, investors, and stakeholders to finance their idea. A major benefit of equity fundraising is quick access to raise millions without going through the tedious process involved with appealing venture capital. It can foster strong bonds and vital partnerships that could help your startup to succeed. [<a href="https://www.businessnewsdaily.com/11173-equity-crowdfunding-basics.html">13</a>]Development on the HorizonNon-accredited investors should keep in mind that although Title III allows universal participation, you should not jump on every crowdfunding platform. Moreover, as you compare different investment opportunities, it is vital to pay close attention to the fees on each platform as these can impact your returns over the long-term.With the governments of the nations across the globe implementing lockdown measures to prevent the spread of COVID-19, leading to the current economic turmoil, SEC has announced new steps intended to help many small businesses that are facing challenges to access urgently needed capital.

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