Crowdfunding Isn’t Charity

Regina M. Joseph

Regina M. Joseph

“How do I get backers for my project?”

You see this question asked frequently on social media sites. The projects are sometimes serious, but have often advanced little more than a dream. The person seeking funds may have heard of Kickstarter and Indiegogo, and perhaps he or she has heard that people contributed to quirky projects like a person being willing to make potato salad; the site as of this writing reports 6,911 backers who have pledged a total of $55,492. Although this project began as a joke, the creator, having in fact made the potato salad, ended up using the proceeds for charity. Continue reading

Internet Startups: Beware of Being a Money Transmitter

Regina M. Joseph

Regina M. Joseph

So, you’ve got a great idea. Social media platforms are all about finding new solutions for old inefficiencies. And what’s more efficient than serving as a platform for an account holder to obtain a single cash payment in exchange for virtual currency he/she/it has received through interactions on numerous merchant sites? Or a platform aggregating other monetary remuneration due from a large number of vendors? Aggregation would be relatively easy with the right platform and software. Continue reading