For Subscribers

A New Startup Financing Model and the Passionate Voices Behind It

Frustrated by the lack of access to startup capital, three serial entrepreneurs lobbied Congress to legalize crowdfund investing -- and won.

learn more about Michelle Goodman

By Michelle Goodman • May 30, 2013

Opinions expressed by Entrepreneur contributors are their own.

In 2010 Sherwood "Woodie" Neiss was trying to raise capital for his latest business concept, a data-polling app for smartphones. He had a track record as CFO of FlavoRx--an award-winning medicine-flavoring company he co-founded in 1999 and sold eight years later--and his new idea had won him a Startup Weekend pitch competition. But without three years of financials, the banks weren't interested in investing in his app; neither were angels, venture capitalists or the private equity investors who'd put millions into FlavoRx. Personal credit wasn't an option, either: Thanks to the recession, Neiss' Miami home was underwater, and his credit card limits had been slashed.

Suddenly the capital crunch faced by so many startups after the economy tanked became personal. "I was irritated by the fact that I could do it before and now have that credibility and not be able to do it again," Neiss recalls.

Continue reading this article — and all of our other premium content with Entrepreneur+

For just $5, get access to a ton of exclusive content and resources that will help grow your entrepreneurial mindset. You’ll find:

  • Exclusive content from our network of today’s leading CEOs and business strategists
  • Receive our flagship Entrepreneur Magazine - free!
  • No more ads, and get access to the Entrepreneur+ homepage
  • Free E-books written by our staff and other industry thought leaders

Related Topics

Editor's Pick

Have More Responsibilities at Work, But No Pay Bump? Use This Script to Get the Raise You Deserve.
Black and Asian Founders Face Opposition at All Levels — Here's Why That Has to Change
Business News

Frontier Airlines Just Announced Its All-You-Can-Fly Summer Pass for $399. What's the Catch?

As travel begins to pick up, the airline hopes unlimited travel will jumpstart its business.


If You're Not Using This Type of Content in Your Marketing, You're Missing Out

User-generated content is one of the most authentic ways to promote your brand to consumers. Here's how to find and benefit from UGC.

Growing a Business

6 Ways to Continually Grow Your Business Without Going Insane

This guide will help you create a successful, sustainable business that will provide long-term growth and profitability. Discover how you can take your business to the next level by reading on.


20 Ways to Achieve Street Smart Wisdom for Leaders and Entrepreneurs

Leaders need to be street-smart to stay ahead of the curve, make educated decisions and continue to be successful.