One of the most powerful new sources of start-up funding is coming to town. Yet, many may wonder what crowd-funding is and what the benefits are to their business if they use it.
People are raising millions of dollars, online?
Crowd-funding is a relatively new way of raising capital for a new venture or project. It essentially relies on attracting micro-donations or pledges from large numbers of people online.
According to a report released last year by Massolution, individual donors pledged US$2.7 billion across more than 1 million individual campaigns in 2012 – an amount that is projected to exceed US$5 billion in 2013.
Crowd-funding works because it cuts out the middleman and exposes funding projects directly to a large volume of people who may be interested in investing in your idea or project. So while the average individual investment or donation may be relatively small, the collective contribution of a…
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