Crowdfund Investing For Dummies

Chapter 3

Raising Capital for Your Startup or Small Business with Crowdfund Investing

In This Chapter

Spotting businesses that are likely to tap crowdfund investing

Respecting the rules of the road for this type of investment

Seeing how crowdfund investing complements other funding sources

Getting a sense of what’s involved in a campaign

Recognizing your risks

Crowdfund investing is meant to fill a void — to support companies that don’t qualify for traditional financing. But if someone doesn’t qualify for traditional financing, why should a crowd invest in him?

Different types of investors and lenders have different goals and different needs. Think about it this way: When you walk into a shoe store, you’re drawn to certain shoes. For one reason (they don’t fit comfortably) or another (they’re not the right style), you selectively choose what you want to buy. That doesn’t mean the rest of the shoes stink — they just aren’t what you’re looking for. Traditional sources of business financing ...