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Crowdfunding Success Code


crowdfunding success code 307x436
License freeware

Description


Introduction

Crowdfunding.

The word drums up all kinds of visions for the average person. Small startups exploding in popularity overnight. Companies on the verge of financial collapse being saved by a capital injection received through crowdfunding.

Crowdfunding came into popularity at a time when it was desperately needed. As traditional loans became nearly impossible for new companies to get and angel investors became much pickier about their investments due to the burst of the dot com bubble, crowdfunding saved the start-up world by providing a way for these new and emerging companies to find the funding they need.

In fact, crowdfunding’s brilliance lies in a couple of small features:

 

  1. Companies typically do not have to pay back their funding. They receive donations rather than loans. This can be extremely beneficial for companies in the start-up stage, because paying back loans often cripples new companies that need all their cash for operating capital.
  2. Because funding is spread out between hundreds, or even thousands of investors, no one individual or company is taking any risk in the company’s potential failure.
  3. Unlike traditional investing, you won’t lose any of your company to investors. You won’t have to give a venture capitalist any control over your company, nor will you have to give anyone any stock. You keep 100% control and ownership.

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