GigaStar Enters the Securities Crowdfunding Universe with a Focus on Helping YouTube Creators Thrive

GigaStar
6 min readApr 18, 2023

“Most giving is 80% emotion and 20% rational. And the best way to get to someone’s emotions is to tell a story.” — Unknown

The rise of crowdfunding as a concept has bred several different varieties of capital-raising frameworks for both individuals and institutions.

Here, we’ll seek to cover a few securities crowdfunding types available to individuals. We’ll then identify where GigaStar lives within this particular crowdfunding sphere as it brings YouTube Creators and Fans together as partners via its funding platform.

First, let’s look at some common securities crowdfunding models:

Traditional Equity Crowdfunding

Equity crowdfunding often refers to a broader type of crowdfunding conducted under a securities offering and could include different types of securities, such as equity, debt, or other types of securities.

In equity crowdfunding, investors purchase an ownership interest in the entity, whether it’s shares in a startup corporation or membership interests in a limited liability company (or partnership) owning real estate.

Unlike traditional fundraising methods, such as venture capital or angel investing, equity crowdfunding allows companies to raise capital from a large number of speculative investors who each contribute small amounts of money, typically as little as a few dollars or up to tens of thousands of dollars. This approach can provide a more democratic and inclusive form of investment, giving individual investors who are willing to accept the associated risks, including liquidity risk and risk of loss of their investment, the opportunity to invest in and support innovative startups and small businesses.

Equity crowdfunding typically takes place on online platforms that specialize in connecting startups and small businesses with potential investors. The company sets a funding goal and valuation, and investors can choose to invest based on their interests and financial capacity. Once the funding goal is met, the investors receive equity in the company in proportion to their investment.

Securities offerings are considered speculative, and illiquid and involve a high degree of risk, including the risk of loss of your entire investment.

StartEngine is an example of an equity crowdfunding solution.

Debt Crowdfunding

Debt crowdfunding, also known as peer-to-peer lending, is a type of crowdfunding where individuals lend money to businesses or individuals in exchange for repayment with interest over a set period of time. It allows borrowers to access financing without going through traditional lending institutions like banks.

In debt crowdfunding, a borrower creates a campaign on a crowdfunding platform specifying the amount of money they need, the interest rate they are willing to pay, and the repayment terms. Investors then review the campaign and decide whether or not to invest. Investors can choose to lend small amounts of money to multiple borrowers, spreading their risk across a diversified portfolio.

The crowdfunding platform acts as an intermediary, handling administrative tasks such as collecting payments from the borrower and distributing repayments to the investors. The platform may charge fees to both borrowers and investors for their services.

Overall, debt crowdfunding offers a new and alternative source of financing for borrowers who may not qualify for traditional loans and allows individual investors to invest in loans that offer attractive interest rates and returns.

LendingClub is an example of a debt crowdfunding service.

Revenue Sharing Crowdfunding

Finally, we get to the type of securities crowdfunding that best describes GigaStar’s model.

Revenue sharing crowdfunding is a type of crowdfunding that is conducted under a securities offering, such as under Regulation Crowdfunding.

Regulation Crowdfunding (Reg CF) is a popular type of securities crowdfunding which allows businesses to raise up to $5 million per year from both accredited and non-accredited investors. Reg CF offerings are under the jurisdiction of the Securities and Exchange Commission (SEC) and there are specific rules and regulations that must be followed.

This type of crowdfunding involves offering investors a percentage of the future revenue generated by a project or product. This means that investors receive a portion of the potential future profits generated by the project, but do not have any ownership stake or voting rights in the company as they may have in equity security. There are other differences between equities and revenue sharing securities, so investors should review the offering materials for explanations of the features, terms, and risks of the respective securities type.

Similar to other types of securities offered under an exemption from securities registration, such as Reg D and Regulation Crowdfunding, revenue sharing securities offered through GigaStar are speculative, illiquid and involve a high degree of risk, including the risk of loss of your entire investment.

Inspired by YouTube Creators GigaStar seeks to democratize the Creator Economy with the only Regulation Crowdfunding solution on the market today that is dedicated to bringing YouTube Creators and Fans together as partners. GigaStar empowers YouTube Creators to offer their fans a percentage of their YouTube channel’s potential future revenue through GigaStar Market.

GigaStar brings YouTube Creators and Fans together as partners, enabling Creators to offer Fans Channel Revenue Tokens (CRTs) which represent a percentage of their YouTube channel’s future revenue. The GigaStar Market platform gives Creators streamlined access to Fan funding, innovative Fan engagement, and potential long-term royalties. Fans can support a Creator’s potential growth, unlock exclusive access, and receive potential monthly revenue.

In summary, while these common crowdfunding models allow individuals to raise funds, they all differ in terms of the level of control that investors have as well as the level of risk involved. Creators and investors should carefully consider the pros and cons of each option before deciding which model is best suited for their needs.

With a mission to fuel human creativity, we bring Creators and Fans together as partners in revenue sharing securities.

Learn more at https://gigastar.io/ and connect with us on social media!

Disclaimer:

This communication is provided by Creator Networks, Inc., (dba GigaStar). GigaStar is the Parent Company of GigaStar Portal, LLC (dba GigaStar Market), an SEC registered funding portal member of FINRA, and GigaStar Technologies LLC, offering blockchain and smart contract solutions via GigaStar Portfolio. Neither GigaStar nor any of its affiliated companies provide legal, regulatory, financial, or tax advice.

Investment offerings are speculative, illiquid, and involve a high degree of risk, including the risk of loss of your entire investment. Past performance is not a guarantee of future results.

Any opinions expressed herein are those of the author(s) and are for informational purposes only. The information and opinions expressed herein are subject to change without notice and do not take into account the particular investment objectives, financial situation, or needs of any specific investor(s). Additionally, any factual content in this material was obtained from sources believed to be reliable, but we do not warrant the accuracy or completeness of any information contained herein and provide no assurance that this information is, in fact, accurate.

Projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic, and competitive risks, and the assumptions underlying the projections may be inaccurate. Forward‐looking statements are not guarantees of future performance and the reader is cautioned not to place undue reliance on forward‐looking statements.

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GigaStar

GigaStar fuels human creativity by empowering Creators and Investors to grow together.